2017-18543: VA Veteran-Owned Small Business Verification Guidelines

Summary

The Department of Veterans Affairs (VA) published a rule in the Federal Register on November 6, 2015, 80 FR 68795 that proposed amending its regulations governing the VA's Veteran-Owned Small Business (VOSB) Verification Program. The Verification Program has been the subject of reports from both the Government Accountability Office and VA's Office of Inspector General stating that despite VA's Verification Program, fraud still exists in the Veterans First Contracting Program. Some stakeholder feedback has been that the current regulation is too open to interpretation and is unnecessarily more rigorous than similar certification programs run by the United State Small Business Administration (SBA). The proposed rule sought to clarify the eligibility requirements for businesses to obtain "verified" status, added and revised definitions, reordered requirements, redefined the definition of "control," and provided explanatory information on VA's examination and review processes and procedures. The proposed rule additionally sought to implement new changes to community property restrictions, unconditional ownership, and day-to-day requirements and full-time requirements. An exception for majority, supermajority, unanimous, and other voting provisions for extraordinary business decisions were also proposed. Comments to the proposed rule were to be provided to the Office of Small and Disadvantaged Business Utilization on or before January 5, 2016. Due to the nature of the adverse comments received, VA has determined not to pursue implementation of the rule as originally proposed. Accordingly, this document withdraws the proposed rule.

The agency’s own summary, as published.

What this changes

Amends 1 part of the Code of Federal Regulations — the standing rules this notice rewrites.

• 38 CFR 74 Veterans Small Business Regulations