Planning for Change

By George Griffin SBTDC/PTAC Counselor at North Carolina A&T University

I was asked by a Service-Disabled Veteran-Owned Small Business (SDVOSB) owner about an upcoming government contracting event, and how it may effect his business. He is currently Veterans Affairs (VA)-certified, and has been awarded several multi-year contracts. However, the client is facing major surgery with an extended recovery time. He is concerned about cash flow, and if or when he can return to day-to-day management and administration of the business. The client had many questions: Will the business lose the awards if he can’t recertify with the VA? What happens if he isn’t able to return to work and becomes a passive owner?

Here are some answers that helped the client and could potentially help your business:

From 13 CFR 125.15 (Code of Federal Regulations)

(e) Recertification. (1) A concern that represents itself and qualifies as an SDVO SBC at the time of initial offer (or other formal response to a solicitation), which includes price, including a Multiple Award Contract, is considered an SDVO SBC throughout the life of that contract. This means that if an SDVO SBC is qualified at the time of initial offer for a Multiple Award Contract, then it will be considered an SDVO SBC for each order issued against the contract, unless a contracting officer requests a new SDVO SBC certification in connection with a specific order. Where a concern later fails to qualify as an SDVO SBC, the procuring agency may exercise options and still count the award as an award to an SDVO SBC.

There are exceptions that you can read which didn’t apply to the client: [69 FR 25268, May 5, 2004, as amended at 70 FR 14527, Mar. 23, 2005; 78 FR 61143, Oct. 2, 2013]

The client was relieved that the current awards will continue and there will be no change in revenue. His VA Verification will expire shortly before surgery. After surgery and a recovery period, the client will reevaluate his work plans. If he returns to his current role in the company, he will recertify and begin bidding again. If he doesn’t return to work the business model will be adjusted, either way succession planning is now on his “to do” list.

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