The

United States Government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a fede ...

sets aside contract benefits for companies considered to be "Service-Disabled Veteran-Owned Small Business" (SDVOSB). The most notable of these contracts are the Veterans Government-wide Acquisition Contracts (VETS-GWAC) issued in accordance with Executive Order 13360, which is designed to strengthen federal contracting opportunities for SDVO firms. The current VETS contract (VETS 2) runs from 23 February 2018 to 22 February 2028. This program has a ceiling of $5 billion. While this money is set aside by the Office of Federal Procurement it is up to the government agencies to provide the contracts, mainly the

United States Department of Defense The United States Department of Defense (DoD, USDOD or DOD) is an executive branch department of the federal government charged with coordinating and supervising all agencies and functions of the government directly related to national secu ...

(DoD).

Criteria

A business hoping to be considered "Service-Disabled Veteran" must be at least 51% owned by an individual who is considered, by the government, a Service-Disabled Veteran, or for a publicly quoted business at least 51% of the stock is owned by one or more service-disabled veterans and the management and daily business operations are controlled by one or more service-disabled veterans. The terms "veteran" and "service-disabled veteran" are defined in 38 U.S.C 101(2) and (16). The following definitions are as stated in that code: Veteran: The term

veteran A veteran () is a person who has significant experience (and is usually adept and esteemed) and expertise in a particular occupation or field. A military veteran is a person who is no longer serving in a military. A military veteran that has ...

means "a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable". Service Disabled: With respect to

disability Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be Cognitive disability, cognitive, Developmental disability, dev ...

, that such disability was incurred or aggravated in line of duty in the active military, naval, or air service. An injury or disease incurred during military service will be deemed to have been incurred in the line of duty unless the disability was caused by the veteran’s own misconduct or abuse of

alcohol Alcohol most commonly refers to: * Alcohol (chemistry), an organic compound in which a hydroxyl group is bound to a carbon atom * Alcohol (drug), an intoxicant found in alcoholic drinks Alcohol may also refer to: Chemicals * Ethanol, one of sev ...

or other

drug A drug is any chemical substance that causes a change in an organism's physiology or psychology when consumed. Drugs are typically distinguished from food and substances that provide nutritional support. Consumption of drugs can be via insuffla ...

s, or was incurred while absent without permission or while confined by military or civilian authorities for serious crimes. Such disability does not require a minimum rating to be considered. A veteran with a 0 to 100% disability rating is eligible to self-represent as a Service-Disabled Veteran for Federal contracting purposes. Security funds of deposit in the scheduled amount of $12,000.00 are required under Sec.8.1487, revised 2007, to ensure compliance of awarded contracts and supplies, thereof, for twelve consecutive months upon classification and submission for registration under this program. This is in compliance with (15 U.S.C 644(g)) for program institution to the SDVOSB and authorized Veteran Applicant. Upon satisfactory performance of awarded contracts, services and or supply facilitation by the SDVOSB, subject depository funds will be issued back to the performing SDVOSB at the end of the 12-month calendar performance period at 0% interest in favor of the U.S Government.

Background

For a veteran who suffers a disability while in military service, the

US Government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...

has deemed it its moral obligation to provide the disabled veteran a range of benefits designed to ease the economic and other losses and disadvantages incurred as a consequence of the disability. These benefits include government assistance for entering the federal procurement marketplace. To achieve that objective, section 15(g) of the Small Business Act (15 U.S.C. 644(g)) provides that the

president President most commonly refers to: *President (corporate title) *President (education), a leader of a college or university *President (government title) President may also refer to: Automobiles * Nissan President, a 1966–2010 Japanese ful ...

must establish a goal of not less than 3 percent of procurement expenditure for participation by service-disabled veteran owned businesses in federal contracting, and section 36 of that Act (15 U.S.C. 657f) gives agency contracting officers the authority to reserve certain procurements for service-disabled veteran-owned businesses. Subsequently, President

George W. Bush George Walker Bush (born July 6, 1946) is an American politician who served as the 43rd president of the United States from 2001 to 2009. A member of the Republican Party, Bush family, and son of the 41st president George H. W. Bush, he ...

issued

Executive Order In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of th ...

13360 on October 20, 2004. The Executive Order was issued "to strengthen opportunities in federal contracting for Service-Disabled Veteran-Owned Small Business Concerns". Veteran-Owned small businesses (VOSBs) without the service-disabled element are not eligible for sole source contracts and procurement set-asides but the

Federal Acquisition Regulation The Federal Acquisition Regulation (FAR) is the principal set of rules regarding Government procurement in the United States,. and is codified at Chapter 1 of Title 48 of the Code of Federal Regulations, . It covers many of the contracts issued by ...

(FAR) requires federal agencies to actively encourage their prime contractors to use VOSBs as subcontractors.

Lack of compliance

The office who receives and sets aside SDVOSB contracts has no ability to award contracts, the requested percentage of such contracts is significantly lower than it should be. A number of memos and orders have been issued to correct this trend. The Administrator of

Office of Federal Procurement Policy The Office of Federal Procurement Policy (OFPP) is a component of the United States Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States (EOP). OFPP provides overall direction for gover ...

(OFPP) issued a memo about VETS GWAC dated July 10, 2007, for chief acquisition officers and senior procurement executives. The memo strongly calls for agency participation in the use of VETS GWAC as a way of meeting the top priority of increasing opportunities for small businesses owned and controlled by service-disabled veterans.

Achievements

Mischler Financial Group Inc. was the first federally certified service-disabled veteran-owned business to become a member of the

Financial Industry Regulatory Authority The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Associati ...

(FINRA).

References

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External links