The Department of Veterans Affairs (VA) Office of General Counsel overturned the VA’s previous determination that VETS First and Rule of Two did not apply to purchases under the $10,000 micropurchase threshold. The Office of the General Counsel in fact determined that VA micropurchases also fall under the Vets First and Rule of Two, which opens up an additional $5 billion in business to Service Disabled Veteran Owned Businesses (SDVOSBs). This is especially good news for SDVOSBs that sell products, which are frequently purchased under the micropurchases program.
This follows on the case of PDS Consultants, Inc. v U.S. (Federal Circuit 2018), decided October 17, 2018. The court determined that the Veterans Benefits, Health Care, and Information Technology Act of 2006, commonly called “VBA,” takes precedence over any other Federally established procurement requirements when applied to purchases by the VA.
The VA Office of Legal Counsel made a determination that the court’s decision and the legislative requirements applies to all VA purchases, including those under the $10,000 micropurchase threshold.
Five weeks remain of the government’s fiscal year and during the final month many purchases using the Government Purchase Card are made. Therefore, if you haven’t already, now is time to make a final marketing push to VA customers and contracting officers.
As a Veteran-owned Small Business ourselves, Coley GCS takes great pride in our ability to assist other Veterans in selling to the VA. Also, this legal determination opens new doors for Veteran-owned small businesses, let us know if you want our help. You can reach us via email at [email protected] or directly by phone at 210-402-6766.
Senior Consultant with Coley GCS, LLC, a Government Contracts Consulting, Coaching and Training company. Published author and certified FedMap Coach with over 40 years’ experience working with Federal agencies and contractors.
If “the court’s decision and the legislative requirements applies to all VA purchases,” does that mean that it also applies to purchases above the Simplified Acquisition Threshold ($250,000)?
The VA conducts market research on all requirements to assist with determining the acquisition strategy. Their market research helps them determine whether two or more VOSB/SDVOSB companies are capable of delivering the requirements at a reasonable price. If two or more companies exist, they are required to set the solicitation aside for VOSB/SDVOSB companies. If their research determines capable VOSB/SDVOSB companies do not exist, then they can pursue different acquisition strategies, including full and open, if appropriate. Be aware that the VA may limit market research to prime SDVOSB contractors with specific contract vehicles, such as T4NG, VECTOR, VETS 2, OASIS, etc. to determine if SDVOSB’s have the capability to perform before, if ever, publishing sources sough notices to FBO. It is critical that your company reply to sources sought/request for information notices of upcoming solicitations to help push the acquisition strategy to a SDVOSB set-aside if your company has the capability to perform the contract at a reasonable price.