SBA denied an application for certification as an SDVOSB, finding the veteran owner did not control the company. The applicant challenged the denial, arguing that its owner controlled the company through an unconditional trust. OHA denied the appeal because the trust owned a corporation that owned the applicant. This meant the qualifying veteran did not have direct ownership of the applicant as required for SDVOSB certification.
VSBC Appeal of Clark Building Technologies, LLC, SBA No. VSBC-405-A
- Denial – The Director of the Office of Government Contracting (D/GC) denied the appellant’s application for certification as SDVOSB because the appellant failed to show that a qualifying veteran had control of the appellant. Deficiencies included failure to show a qualifying veteran held the highest job title, controlled the decision-making process, or owned at least 51% of the company.
- Appeal – The appellant argued it had complied with the job title deficiency with its organizational chart that showed a veteran as the CEO and top owner. In response to the other deficiencies, the appellant contended that the revocable trust agreement with the veteran as the sole life beneficiary satisfied all outstanding control issues. OHA noted that the veteran was the trustee of a trust that owned a corporation. Although this corporation owned the appellate, OHA denied the appeal because the qualifying veteran did not have direct ownership of the appellant.
CEO Darren Clark appeared for the appellant.
— Case Summary by Joshua Lim, Assistant Editor
