Legal Meets Practical

by Sarah Schauerte

I absolutely adore Halloween, so I thought it was worth writing a post on a topic that is very scary to veteran business owners….the VetBiz verification process!

As a certified VetBiz Counselor, I hear a lot of complaints about the Center for Verification and Evaluation’s (“CVE,” formerly the “Center for Veterans Enterprise”) VetBiz application process. Public sentiment has gotten to the point that this summer, a House bill was introduced in Congress to take the verification process from the VA and give it to the Small Business Administration.

Perhaps in part prompted by the hostile feedback, the CVE instituted two different programs to give veteran business owners a second shot in getting verified. Rather than getting denied and having to go through the request for reconsideration process (terrible!), it developed two alternative processes. One of these is VetBiz pre-determination. This is when the only thing wrong with an application rests in “easily correctable errors” to the business’ corporate document(s), and the CVE gives the business five days to fix the document(s) and resubmit. Basically, it’s when your only issue is a drafting problem. (And think about it. How often does a business use its bylaws/operating agreement, anyway?)

This process is great if it goes right. If it doesn’t, however – well, here is one veteran company’s* story….

In mid-September, a mother-and-daughter company (we’ll call them “Company Eligible”), receive a pre-determination letter. Their application looks good, but the CVE found a few problems with their operating agreement.

Do they want to participate in the VetBiz pre-determination process? Of course they do! Company Eligible quickly fixes the issues with their operating agreement and resubmits, holding their breath. Two of the commercial vendors they do business with require VetBiz verification, and they know that if they get denied or don’t get their verification quickly, they’ll lose work.

They don’t have to wait long. Almost immediately, they receive a letter back from CVE. “Sorry,” it says in essence, “you forgot to sign and re-date your document. You’re going to have to withdraw your application.” (Note – The CVE’s “Required Documents List” does not say the operating agreement needs to be signed and dated).

“Wait!” the owners say frantically, tearing out their hair, “we’ll sign! Right now! How do you want us to get it to you? Fax? Scanned? Hand delivery? Carrier pigeon? How?”

“Nope,” says CVE. “You gotta resubmit.”

At this point in time, Company Eligible contacts me. I email and call the CVE several times over the next several days, explaining the situation with the contracts. I provide contact information for the prime contractors. Ultimately, the only answer I receive is, “we don’t expedite applications, but since their application was already reviewed, it shouldn’t take too long.”

CVE then requests information it hadn’t the first time around. Company Eligible provides it. The company owners tear out more hair. This is late September.

Weeks go by. The owners are running out of hair to pull out. They’ve lost one of their two contracts. I engage the CVE again, and via the hotline I am told it is taking this long in order to “protect the integrity of the process.” (Note – the stated sole mission of the CVE is to assist veterans with starting and building their businesses). I ask why it is necessary to re-evaluate an application that had already been evaluated a month ago and found sufficient save for a few drafting errors. The CVE employee doesn’t have an answer. Meanwhile, the company owners run out of hair to pull out.

Finally, today, on this All Hallow’s Eve, Company Eligible was released from VetBiz purgatory by receiving their VetBiz verification, almost a month and a half after CVE had determined that the only issues with their application were minor drafting problems.

Luckily it is Halloween, so the owners can place wigs over their bald heads and everyone will think it is part of a costume. Company Eligible has lost business because of the delay in processing their VetBiz application, but at least they have the verification, and they are still in the game for one of the contracts.

This is a scary story because it can happen to anyone who goes through the VetBiz pre-determination process. If the business fixes its issues right away and CVE approves them, it’s great. But if not, the business is forced to withdraw and is back in the application pool.

More alarming, however, is this fate makes no sense. If CVE is re-evaluating all of those applications deemed eligible for the predetermination process, that’s double work. Both for the sake of efficiency, and to promote its stated mission of helping veteran-owned small businesses, you would think the CVE would want to work with those businesses flagged for VetBiz pre-determination to push them to verification as soon as possible. But the CVE has the power to do things that don’t make sense, and that’s the scariest thing of all.

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*Blog written at company’s request

Okay, the shutdown’s over. Government officials are back to work, and VA benefits such as disability compensation and GI bill applications will continue to be processed. Crisis averted.

Well, kind of. During the shutdown, the appeals offices at all Regional Offices were shut down. So were the records departments. The progress made in creating a dent in the VA backlog also slipped considerably.

And did Congress really have to put our veterans and their families through the stress of not knowing whether they would receive their benefits in November?

When the government shutdown began at midnight on September 30, VA healthcare and medical facilities were protected because they already had their 2014 budget approved last year. But that was not the case for discretionary accounts, which include money for disability claims to veterans, their dependents or survivors, as well as money for veterans attending school on the GI Bill. Veterans waited with bated breath to see what the future held in store for these benefits, generally paid on the first of the month. October was covered, but November was up in the air. Payment of November benefits hinged on the ability of Congress to strike a deal before the end of October.

Veterans Service Organizations (VSOs)  say whether these benefits should be paid should not be a question. Like VA healthcare, other veterans benefits should be funded in advance. In a statement released on October 17th, the Veterans of Foreign Wars said it appreciates that Congress passed compromise legislation that reopened the government after two weeks, but the organization noted that the measure is short-term with no guarantee there will not be another shutdown.

VSOs and other veteran advocates are all backing identical House and Senate bills called the  “Putting Veterans Funding First Act,” which would require Congress to pass a full year’s appropriations bill for all VA discretionary programs one year in advance. This means that in the event of a government shutdown, essential VA benefits are not affected. Rather than sending VA employees home on a paid vacation, their departments’ operations would continue functioning as normal.

This isn’t rocket science. This isn’t even good government. This is decent government. These are our veterans we’re dealing with here, the individuals who fought to protect the rights of a nation that is denying theirs. Treat our veterans with respect by protecting the benefits they’re entitled to.

Did you find this article informative? If so, sign up for my weekly blog on veterans issues at: https://legalmeetspractical.com. Please remember to click the link sent to your email address to activate your subscription!

Access my previous blogs relating to the government shutdown here (10/1/2013) and here (10/10/2013).

by Sarah Schauerte

Whether in reaction to a bill introduced in the House that threatened to take it away, or because of some other motivation, the VA has lately initiated a slew of changes to its VetBiz Verification Program. But is this the equivalent of changing a leaky tire, or sticking on a cheap patch?

As we know, the Center for Verification and Evaluation (CVE), which is part of the VA, is responsible for verifying Service-Disabled Veteran-Owned Small Businesses or Veteran-Owned Small Businesses as eligible for the VA’s Veterans First Contracting  Program. (“CVE” used to stand for “Center for Veterans Enterprise,” but this was changed via an interim final rule published in the Federal Register on September 30). For quite a while, CVE has been heatedly criticized for issues arising with the VetBiz Program. Common criticisms include delays and errors in application processing, poor communication, and a lack of clarity regarding what is required for successful verification.

In August, a bill was introduced in Congress to take the Veterans First Contracting Program from the VA and put it in the hands of the Small Business Administration. (Read about this bill here). Around the same time that this occurred, changes began occurring with VetBiz. At that time, the VA had already implemented its VetBiz Pre-Determination process, which allowed veteran business owners to quickly fix drafting errors in their corporate documents and resubmit their applications (rather than receive a denial). Also, the VetBiz website had been revamped to include additional resources.

After the bill was introduced, the VetBiz website was mum on the subject. Would the VA fight to keep authority over VetBiz, or improve the process under its auspices?

The CVE did not address this on its website. It did, however, post new statistics on wait times and approval rates. Anyone glimpsing them gasped in surprise. 96% approval? How is this possible? This seems too good to be true!

This is possible because of the new Pre-Decision process, which does, in fact, result in a statistic too good to be true.

In the VetBiz Pre-Decision process, an applicant that would otherwise be denied gets to withdraw its application.  Since there is no incentive to accepting a denial, the decision is a no-brainer.  And guess what happens when an application is withdrawn? The denial is not included in the CVE’s statistics.

The VetBiz statistics also state that initial applications and requests for reconsideration are taking a much shorter time to process. When I say “much shorter,” I mean that waiting times are cut in half, which is a drastic change.

Here’s the wrinkle. Now with the new processes – Pre-determination and Pre-decision – veterans are withdrawing their applications instead of being denied. When the CVE says it takes a certain number of days to receive a decision, how many times has the veteran withdrawn, and then resubmitted? What number would we have if the CVE counted the time a veteran first submitted his application, to when it was finally approved?

Then there’s the website. Many resources have been added, which is great. However, it is difficult to navigate to find these resources, which is not so great. I know what I’m searching for when I research on the VetBiz website, and I have trouble finding it. A veteran business owner who is trying to familiarize himself with the process would have even greater trouble.

I’m not trying to get down on the CVE here. I am genuinely glad for the new developments, and the effort expended on its behalf. There are improvements, and that should be recognized. However, as it relates to the claims that verification comes much quicker, and much easier – context to these statistics should be provided. If a veteran-owned business is verified in 20 days, but it took two withdrawals for that to happen, that 20 day wait period shouldn’t be factored into the statistics to give the impression that verification is lightning-fast.

The CVE’s recent efforts aren’t a complete change of a busted tire, which is what the CVE frames them to be. At the same time, they’re not just a patch, either, and the CVE deserves credit for its willingness to get its hands dirty.

Did you find this article informative? If so, sign up for my weekly blog on veterans issues at: https://legalmeetspractical.com. Please remember to click the link sent to your email to activate your subscription!

We’re about to close out the second week of the government shutdown, and the mood is grim.

Because the government does not have legal authority to spend money on services not deemed “essential” during a shutdown, only key government functions are currently operating. These include anything related to national security, public safety, or programs written into permanent law (like Social Security).

While programs affecting veterans are more protected than many others, veterans are still feeling the effects of this shutdown. The following is a brief summary of the current impact on veterans:

VA healthcare is largely unaffected.

VA health care is protected. In 2009, Congress passed a law to fund the VA one year in advance. This allows the VA health care to plan ahead and ensures that VA health care is funded for an additional year beyond the government shutdown. All VA medical appointment and prescription drug phone lines will be active during the shutdown. This includes emergency lines, such as the suicide hotline.

VA disability, pension, or GI Bill Benefits for October are protected.

All payments for the month of October are already out. VA benefits are protected and should go out during a shutdown. However, the VA recently announced that if the shutdown lasts longer than 2-3 weeks, the VA might not have enough cash on hand to pay benefits in November.

Benefits may not be paid in November.

The VA has not given any specifics on what will happen if the shutdown continues for the next few weeks, and they run out of cash on hand. However, given recent developments, it appears likely the shutdown will be lifted by then.

New VA disability claims will experience delay. 

If you filed a claim before the shutdown, the VA will continue to process it, but expect there to be some delay. While the VA employees that are working on your claim are protected from the government shutdown, they are affected by the fact that related departments and resources are no longer functioning (such as appeals and records departments). Please still file a claim if you were planning to do so, however – this will preserve your effective date.

 New Post 9/11 Bill claims for next semester will experience backlog. 

New Post 9/11 GI Bill claims for next semester will also likely be delayed if the shutdown goes longer than a few weeks since they will not be processing new claims during a shutdown. The VA’s education hotline is unavailable off during a shutdown as well.

VA disability claim appeals are not being processed.

All work on appeals will be halted during the government shutdown. These departments in Regional Offices have been closed and the workers furloughed.

Active members of the military will still be paid.

Mid-week the president signed a bill passed by both the House and the Senate that would ensure that the military continues to get paid in the event of a government shutdown.

Some military base services are affected.

Military hospitals and clinics should remain open. However, expect many MWR (Morale, Welfare, and Recreation) and community services (like commissaries) to be either closed or limiting operations. Your chain of command will have detailed information about what is happening on your local base.

 Many are offended by the idea that they are on furlough because their positions were deemed “non essential,” or that their quality of life is affected because a service they depend on is “non essential.” 

As someone who lives and works in D.C., the discontent and anger is palpable. (For example, having veterans be denied access to the monuments that honor them is beyond ridiculous and insulting). And I have to wonder – how does this look to other nations? We’re the U.S. This is embarrassing, and our nation’s leaders are capable of taking better care of us. But when will they show it?

Here’s to hoping that my next blog post will summarize the deal struck by Congress and the end to the government shutdown.

Did you find this article informative? If so, sign up for my weekly blog on veterans issues at: https://legalmeetspractical.com. Please remember to click the link sent to your email to activate your subscription!

It’s the end of the day on Monday, September 30th, so I’m posting this. I wish I wasn’t.

The inability of Congress to pass a funding bill means a partial government shutdown for the first time in 17 years, leaving some government services suspended and hundreds of thousands of workers furloughed. I know many individuals who are personally affected.

While the most essential government services will continue uninterrupted, the lack of funding will be a minor headache for some Americans, and a serious concern for others.

So what about our veterans? How does the government shutdown affect their benefits? Their healthcare, their resources?

Today, the Department of Veterans Affairs (VA) issued guidance on how veterans are affected by a potential lapse in appropriations. As I predicted in a blog last week, VA call centers and hotlines will cease to function, and the VA will no longer continue overtime processing of backlogged initial disability compensation claims.  The full list of areas affected is as follows:

• VBA Regional Offices public contact services will not be available.
• No decisions on claims appeals or motions will be issued by the Board of Veterans Appeals.
• Freedom of Information Act queries will not be processed.
• Privacy Act requests will not be processed.
• The VA’s homepage (www.va.gov) will be updated intermittently, as well as the VA’s main and hospital social media websites (such as Facebook and Twitter).
• The VBA will not be able to continue overtime for claims processors, which will affect the backlog.
• Claims processing and payments in the compensation, pension, education, and vocational rehabilitation programs are anticipated to continue through late October. However, in the event of a prolonged shutdown, claims processing and payments in these programs will be suspended when available funding is exhausted.
• The recruiting and hiring of Veteran job applicants will cease with the exception of the Veterans Health Administration.
• Presidential Memorial certificates will not be processed.
• Internments at National Cemeteries will not be processed, and cemeteries will be conducted on a reduced schedule.
• Overseas military coordinator operations will be suspended.
• VA Secretary correspondence with veterans and veterans service organizations will be suspended.

When I receive more information, I will update accordingly relating to how the government shutdown will affect veterans. To stay informed, please sign up for my blog at: https://legalmeetspractical.com. You can also access the veteran’s field guide to government shutdown at: http://www.va.gov/opa/docs/Field_Guide_20130927.pdf. The latter document contains a link to the VA’s contingency plan, which will be updated in the event of a prolonged government shutdown.

Stay tuned, and please – comments on this important subject are welcome.