The veteran owner of an SDVOSB worked on the side as an insurance agent. A protester alleged this meant the SDVOSB was not controlled by a veteran. But OHA was cool with it because the insurance work was outside the SDVOSB’s normal business hours.
VSBC Protest of In and Out Valet Company Re: Crown Bases Services, LLC, SBA No. VSBC-363-P
- Protest Allegations – The agency awarded an SDVOSB set-aside contract. A disappointed bidder challenged the awardee’s SDVOSB status. The protester contended the awardee’s veteran owner did not control the company. The owner worked another job. Moreover, the protester alleged, it appeared the company would rely heavily on a subcontractor and thus violate the SBA’s limitations on subcontracting
- Second Job – When a veteran claiming to control a business devotes fewer hours to the business than its normal hours of operation, SBA will presume the veteran does not control the business. Here, the awardee’s veteran-owner worked full-time as an insurance agent. But OHA didn’t find this problematic. The SDVOSB operated from 8 am to 2 pm. The veteran owner worked as an insurance agent from 2 pm to 8 pm. Because the hours did not conflict, OHA was cool with the two jobs.
- Limitation on Subcontracting – The protester also alleged the SDVOSB would be unduly reliant on a non-veteran subcontractor. But the awardee’s proposal stated that a subcontractor would only perform 40 percent of the work. The protester had not shown otherwise.
The protester is represented by Nancy M. Camardo of the Camardo Law Firm, P.C. The government is represented by John Ruan of the Department of Veterans Affairs.
–Case summary by Craig LaChance, Editor in Chief
