For many contractors denied inclusion to the Department of Veterans Affairs’ (VA’s) VetBiz Vendor Information Pages (VIP) (the VetBiz Program), the second chance offered by the request for reconsideration process appears attractive. It is another bite at the apple. However, denial letters do not mention two things: 1) the high scrutiny at this level of review; and 2) the incredibly long wait time for requests for reconsideration. Combined with little guidance from the Center for Veterans Enterprises (CVE) on how to effect a successful request for reconsideration, contractors find difficulty in taking true advantage of this “second chance.”
Many Denied Inclusion to the VetBiz Program Are Not Actually Ineligible
As many who have run the gauntlet for verification know, the devil is in the details. As Mr. Thomas Leney, the Executive Director of Small and Veteran Business Programs communicated in a memorandum on the Vetbiz website (http://www.vetbiz.gov/), 90% (ninety percent) of initial denials are attributed to a misunderstanding of 38 CFR Part 74, which is the section of the Code of Federal Regulations (CFR) that enumerates the eligibility requirements. This statistic strongly suggests that a large number of applicants denied are denied not because of ineligibility in the true sense of the word, but because of problems in their applications such as drafting issues in their corporate documents.
The CVE Offers Little Guidance for Effecting a Successful Request for Reconsideration
For contractors who have been denied inclusion in the VetBiz Program, an available route of action is filing a request for reconsideration. This option is set forth at 38 CFR 74.13. However, the regulation itself provides little guidance as to how to effect a successful request for reconsideration. It states only: “An applicant may request that the Director, CVE, reconsider his or her decision to deny an application by filing a request for reconsideration with CVE within 30 days of receipt of CVE’s denial decision.” This language is mirrored in denial letters, which state that applicants must provide official documentation substantiating each claim made in the request.
Requests for Reconsideration Are Met With Scrutiny
When the contractor files a request for reconsideration, the request is treated differently than an initial application. As the VA stated in an August 2012 GAO report (GAO 12-697), “it then enters a completely separate queue and since such firms are designated higher risk than an initial application, they receive a new, comprehensive examination of all documentation and a review by VA’s Office of General Counsel in many cases.” This is a strengthened level of review compared with the level of review previously applied, which may be reflected by the fact that of the request for consideration received between November 2011 and September 2012, 52% of requests for reconsideration were denied. (This statistic is contained in a recent Government Accountability Office report, which examined the Vetbiz process and released many statistics, including: success rates for initial verifications, requests for reconsideration, and reverification. The report may be accessed at: http://www.gao.gov/assets/660/651281.pdf).
Also, in deciding upon the request for reconsideration, the VA may deny the application on grounds other than those cited in the initial denial letter. This means that a contractor may fix one problem, and the VA may find another. This essentially requires the contractor to conduct a complete review of its application…and all within the 30 days provided to file a request for reconsideration.
Request for Reconsideration Wait Times Exceed 180 Days
The other element not mentioned in a denial letter is the wait times. The current wait time to process a VetBiz request for reconsideration, as stated by the VA, is “in excess of 180 days.” (This is despite the regulation providing 60 days as an estimate). This means that a contractor will still be waiting after the date by which it could have filed an entirely new application (See 38 CFR 74.14 – contractors are permitted to reapply after six months). Then, if a contractor files this request and is denied on the same grounds, a mandatory six month waiting period will be imposed. If the contractor is denied on different grounds, the contractor may file another request for reconsideration and sit in the processing line for another period of time “in excess of 180 days.”
The Need for Process Improvement of this “Second Chance”
While important that the VA has checks in place to exclude ineligible contractors, the system currently defeats its own purpose. Contractors are denied because they don’t understand the eligibility requirements and because the application process is extremely difficult to navigate. This denial causes an extremely long subsequent wait period, regardless of whether contractors opt to file a request for reconsideration or wait to reapply.
This is a situation where process improvement is desperately needed. Luckily, the VA has issued several publications meant to help contractors understand what they need to do to get verified (See vapInitialVerificationApplicationGuide – an excellent resource). Also, as of late, the VA has been responsive to critcisms and suggestions. However, more guidance should be provided relating to VetBiz requests for reconsiderations to ensure that they are not merely wasted time. Contractors do not understand that a “quick fix” after a denial might work against them.
If the VA affords veterans a second chance, it should be a true second chance, and these veteans should be given the tools by the VA to take advantage of it. After all, the name of the program is “Veterans First” – it should function to help those it is meant to serve.
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