Legal Meets Practical

Any business that wants to do business with the VA in the Veterans First Contracting Program has to be listed in the Center for Verification and Evaluation’s (CVE’s) VetBiz registry. In the years since the CVE’s inception, businesses have had a hard time going – the regulations are difficult to understand (especially in the absence of bright line rules), application examiners have differing levels of understanding, technicalities have caused denials, and wait times (particularly for requests for reconsideration) have been so long that businesses have lost out on valuable contracts.

Recently, however, I gained access to a white paper produced by the CVE, which is scheduled for posting on the CVE’s website in early November. Don’t get me wrong – the CVE has a long way to go – but this is a step in the right direction. I think that some of the improvements identified in the paper are a bit overstated, but it reflects that significant improvements have been made in the last few years:

• Increased Opportunities for Verification – The white paper notes its new pre-determination and pre-decision processes. Thank goodness these have been implemented, as the request for reconsideration process was a “one shot” deal that often resulted in a business having to wait six months to reapply. While I don’t think these processes are without their problems, I’d much rather see businesses going through pre-determinations or pre-decisions rather than requests for reconsideration. The wait times are much shorter, and the ability of a business to “withdraw” means it can immediately reapply.

• Communications With Veterans – The white paper also points out the “great expan[sion]” in communications with veterans. I’ve heard numerous veterans note this improvement, which includes calling businesses prior to verification expiration and after document requests. While some of the information contained in these communications may not be helpful in the event a veteran needs nuanced guidance, it does give veterans direction to seek assistance (such as through counselors or attorneys/consultants).

• Verification Counselor Assistance – This was the one part of the white paper I almost wholly disagreed with. (However, this should be qualified by the fact that I went through the training to become a certified counselor in February of 2013 – hopefully the counselor training has become more rigorous by then). The white paper noted that there are 270 counselors in every state, all of whom are listed on the CVE’s website. These counselors are available for free to veteran businesses seeking verification. While many of these counselors are well-qualified with the best intentions, it should be noted that counselor training involves a one-day course that focused primarily on the process of verification, not the details that prevent businesses from becoming verified. Counselors – to my knowledge – do not receive updates on the process (for example, I wasn’t notified when pre-determination/pre-decision was implemented). Nor are they required to complete continuous education. Thus, while these counselors do want to help veterans, the fact of the matter is there are improvements necessary for them to truly guide veteran business owners through the process.

• Updating the Verification Rules in the Codes of Federal Regulations – The regulations applicable to VetBiz are contained at 38 CFR Part 74. The CVE is in the process of updating and improving these, which would go a long way towards providing much-needed clarification. (For example, the regulations do not address pre-determination and pre-decision). I do wonder when we can actually see these changes take place, as discussions regarding these changes have been underway for a few years now. Accordingly, don’t expect a rule change any time soon.

• Preventing Fraud and Protecting the Veterans Advantage – This is done primarily through increased random site visits. I know of a few companies that have been the subject of these lately, and there doesn’t seem to be rhyme or reason for their selection. This means that a mom-and-pop company might run the gauntlet, spend hours preparing documentation…and then get unlucky six months later. I’m all for audits and measures to detect fraudulent companies, but I’d like more explanation for why certain companies are chosen. Also, the wait times can be unreasonable – I recently saw a request for documentation that followed an on-site visit, and the CVE asked for about a dozen documents (including letters of explanation) to be uploaded in three business days.

Years ago, when the Small Business Administration’s 8(a) BD program was going through its growing pains, it wasn’t exposed to social media – attacks on Twitter, LinkedIn, blogs, etc. The CVE is one of the first certification program to be exposed as such, and everyone knows that people are more likely to complain publicly rather than to praise. Common criticisms include denials based on technicalities/misinterpretation of the regulations, long wait times, and fraudulent companies slipping through the cracks.

But this white paper is at least a step in the right direction. Over the last few years, it has gotten better. I’m still going to blog on the issues – as veterans have the right to know – but being an advocate doesn’t mean that I’m wholly negative. I’m glad to report on the positive too.

This is a democracy! Comment on what you think of this white paper. Have you seen positive changes at the CVE?

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