Coffman Moves Bill to Help Veteran-Owned Small Businesses

Press Release

U.S. Representative Mike Coffman (R-CO) today passed H.R. 2882, Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2013, out of the Small Business Committee. The legislation was written to reform the Service-Disabled Veteran-Owned Small Business (SDVOB) procurement programs and save taxpayer money by consolidating the verification and appeal process from the Department of Veterans Affairs (VA) to the Small Business Administration (SBA).

"Service-disabled veteran small business owners have paid a hefty price for our nation, and the least we can do is ensure that programs intended to encourage entrepreneurship do not themselves become yet another obstacle to success," said Coffman.

Currently, the SBA and the VA operate separate procurement programs for SDVOSBs. The SBA hears challenges to SDVOSB status decisions for all agencies other than VA. In contrast, VA verifies all potential SDVOSB companies applying for special procurement preferences for VA contracts. The process is cumbersome and expensive and differences in the definitions, processes and interpretation between the agencies cause inconsistent decisions as to which firms qualify for contracts.

"Many of the certification and appellate problems at the VA have been well-documented by veterans, and even by the Government Accountability Office. It's past time to create a clear and transparent set of rules and processes for the government to follow on behalf of service-disabled veteran-owned small business contractors," said Coffman.

Under the current system, an SDVOSB can qualify at one agency and not another for procurement preferences. This inconsistency often adds cost, confusion, and opens the door to fraud. This legislation transfers the VA verification process for firms to SBA, unifies the definitions of SDVOSB and Veteran-Owned Small Business (VOSB), and adds transparency and predictability by creating an appellate process by which a SDVOSB can challenge an agency decision.

"This legislation should save the taxpayers $20 million a year, reduce fraud, and provide veterans with better services," said Coffman.

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