us department of veterans affairs center for verification and evaluation “enabling veteran...

US Department of Veterans Affairs Center for Verification and Evaluation Enabling Veteran Business Opportunities By Protecting The Veteran Advantage One Vet At A Time 4 STEPS TO VA VERIFICATION Michelle Gardner-Ince, Director Center for Verification and Evaluation (CVE)

Welcome to the Center for Verification and Evaluations presentation on the four steps to becoming verified and approved for the Veterans First Contracting Program!

Todays Line-Up Focus OSDBU Center for Verification and Evaluation The Players The Verification Process Four Steps of Verification Staying Verified The discussion focuses on the roles and responsibilities of OSDBU and CVE, the main points in the completing application and verification processes, and the four steps that must completed in order to determine eligibility. Information will also be provided on what the Veteran business owner must do in order to maintain their eligibility status. 3

Focus What it is: New to Verification New to Public Law 111-275 Verification 4 Understanding the application and verification processes are the main topics of this presentation. If you are new to the CVE verification process or want to get a better understanding of the history of CVE and the most relevant Public Laws that govern the program, this discussion will benefit you greatly.

Focus What it is not Debate Policy Rules 5 However, we will not cover any information on policy, regulations, or possible changes to any of the program rules.

Tom Leney Executive Director Mr. Tom Leney is the Executive Director, of the Office of Small and Disadvantaged Business Utilization, known as OSDBU, and he reports directly to the Department of Veterans Affairs, Secretary Erik Shinseki. Mr. Leney heads up Strategic Outreach, and Communications, as well as Acquisition Support to both small and large Veteran business concerns. He is tasked with ensuring that socioeconomic programs are implemented against time and budget targets.

Highlights: Visit our website for more information: http://www.va.gov/osdbu/ http://www.va.gov/osdbu/ Oversee the work of the Office of Small and Disadvantaged Business Utilization (OSDBU) Strategic Outreach, Center for Small Business Utilization (CSBU), the Center for Verification and Evaluation (CVE), and Acquisition Support Outreach and liaison support to businesses (small and large) and other members of the public and private sectors concerning Small Business Acquisition issues OSDBU is responsible for monitoring VA implementation and execution of the socioeconomic programs Tom Leney Executive Director 7

Roles and Responsibilities of OSDBU Departments Strategic Outreach and Center for Small Business Utilization (CSBU) Outreach and liaison support Concerning Small Business Acquisition issues Direct Connect Program Connect and market their products and services to the VA through events and opportunities with procurement decision makers 8 Strategic Outreach is responsible for keeping their pulse on the needs of the Veteran Community through attendance at external events and by providing education resources and two-way communication. Strategic Outreach also maintains the OSDBU website, which provides regular updates to information on various business matters, including procurement events and opportunities.

Roles and Responsibilities of OSDBU Departments Center for Verification and Evaluation Verifies Veteran-owned small businesses (VOSBs) and service- disabled Veteran-owned small businesses (SDVOSBs) for inclusion in the VetBiz.gov Vendor Inventory Page (VIP) database Ensues only eligible VIP firms are visible to COs for preferential access to VA contracts and set- aside funds 9 CVEs primary purpose is to verify if small service-disabled Veteran- Owned (SDVOSBs) and Veteran- Owned (VOSBs) meet the eligibility requirements set out in Title 38 Code of Federal Regulation (CFR) Part 74; which is the governing regulation for the Veterans First Contracting Program. The VetBiz.gov database is the technological platform CVE uses to receive and archive information from Veterans applying for the program.

Roles and Responsibilities of OSDBU Departments Acquisition Support Assist in developing appropriate SVOSB/ VOSB acquisition strategies Ensure Public Law 109-461 and other small business related laws/regulations are correctly followed Reviews Subcontracting Plans to ensure compliance with the eleven elements of FAR Part 19.704 Oversight of VA prime contractors subcontracts to small businesses IAW subcontracting plans 10 The Acquisition Support Department manages the relationship between VA prime contractors and their relationship with subcontractors. They assist verified small businesses with market research and analysis on requirements for Veteran-Owned businesses, as well as help with defining goals, conducting research, and providing support for negotiations.

Center for Verification and Evaluation (CVE) The Center for Verification and Evaluation (CVE) is an office within the Office of Small and Disadvantaged Business Utilization CVE verifies if Veteran-Owned and service-disabled Veteran-Owned small businesses meet the eligibility requirements set out in the regulation. 11 Launched to ensure businesses registered in the Vendor Information Pages (VIP) database are owned and controlled by eligible Veterans VIP is the database that receives and archives information provided to CVE by Veteran business owners. CVE verifies Small Businesses for inclusion in the Vendor Information Pages (VIP) database Only eligible Veteran companies can be given approval, be listed in the VIP database, and subsequently be able to bid for set-aside contracts and funding.

Evolution of Verification 1999 Public Law (P.L.) 106-50 - created SDVOSB goals 12 Also known as the Veterans Entrepreneurship and Small Business Development Act of 1999 The purpose of this Act was to expand the existing and establish new assistance programs for Veterans who owned or operated small businesses. The goals of the program were to: 1)Expand the eligibility for certain business assistance program to include Veterans; 2)Direct certain departments and agencies of the United States to take actions that enhance small business assistance to Veterans; and 3)Establish new institutions to provide small business assistance to Veterans or to support the institutions that provide such assistance.

Evolution of Verification 2001 - CVE formed to implement P.L. 106-50 VA established small business assistance to Veterans by forming the Center for Verification and Evaluation to implement the Veterans Entrepreneurship and Small Business Development Act 2003 Vendor Information Pages (VIP) launched to create visibility for SDVOSBs and VOSBs and gave these business the ability to self-represent 2006 - P.L. 109-461 created the Veterans First Contracting Program and VOSB Verification 2008 - VOSB Verification launches: voluntary program, self- representation still allowed 13

2008 - VOSB Verification launches: It is a voluntary program and self-representation still allowed 2010 P.L. 111-275, Stated no new firms can be visible in VIP without first being verified Stated no new firms can be visible in VIP without first providing full documentation Evolution of Verification

What Is Verification? The Process by which Veteran-Owned Businesses are evaluated and determined eligible to be listed in Vendor Information Pages (VIP) database for 2 years (opportunity to renew at 2 year point prior to expiration) Evaluation is primarily based on the requirements found in 38 Code of Federal Regulations (CFR) Part 74 Once eligibility is validated and determined, a VOSB/SDVOSB is verified and can participate in the Veterans First Program through the VetBiz system 15

Vendor Information Pages (VIP) In Sep 2003 VA opened the "VetBiz Vendor Information Pages Originally an outreach tool to identify VOSBs for VA, other government agencies, and the private market The Vendor Information Pages Database (VIP) is the only federally controlled database in which a legal verification process is used to determine service disabled or veteran status of a small business 16 Service Disabled Veteran Owned Small Business (SDVOSB) Logo Veteran Owned Small Business (VOSB) Logo Many other Federal and state agencies include CVE in solicitations

Why Should I Get In The Verification Game? Opportunities for eligible to participate in Veteran-Owned Service-Disabled (VOSB) and SDVOSB set-asides. Subcontracts with VAs large prime contractors in acquisitions Participate in VAs SDVOSB Mentor-Protg Program. VA is one of the largest Federal Government procurement organizations over $3 Billion to Veteran-Owned Small Businesses The recognized logo (symbols) for Vet owned and controlled 17

LETS PLAY VERIFICATION BASEBALL! Verification Am I A Player In The Game? Business Models Veteran-Owned Small Businesses Service-Disabled Veteran-Owned Small Businesses Eligibility is determined by the companys ability to meet the small business requirements set by the Small Business Administration (SBA) size standards. 18

Types Of Players There are currently six (6) business types that are eligible to apply for verification Sole Proprietorship C Corporation (Inc. or Ltd.) Limited Liability Company (LLC) Sub Chapter S Corporation (Inc. or Ltd.) General Partnership Limited Liability Partnership (LLP) https://www.vip.vetbiz.gov/Public/Register/DocumentList.aspx 19

Verification Am I A Player In The Game? Ineligible Business Models Not for profit organizations Franchises Ineligible Businesses and Owners EPLS Excluded Party Listing System Questionable Character Debarred/Suspended Federal Financial Obligations 20 The business model is also a factor in determining if a business should consider applying into the Veterans First Contracting Program. Franchises have too many restrictions that prohibit the decision-making powers of the Veteran; these business models have a high chance of probability of INELIGIBILITY. In order to be in compliance with 38 CFR Part 74, Veterans must be of GOOD CHARACTER in order to be eligible for VIP.

LETS PLAY VERIFICATION BASEBALL! In baseball, a player has to round all three bases to score. In verification, there are three core reference points to gaining verification approval: 1 st Base: ELIGIBILITY 2 nd Base: OWNERSHIP 3 rd Base: CONTROL

22 Verified Eligibility Ownership Control Elements of Verification - 38 CFR, Part 74 Is the company able to play the game?

23 Verified Eligibility Ownership Control Elements of Verification - 38 CFR, Part 74 Is the company able to play the game? Is the company at least 51% owned by a Veteran(s) or service- disabled Veteran(s)?

24 Verified Eligibility Ownership Control Elements of Verification - 38 CFR, Part 74 Is the company able to play the game? Is the company at least 51% owned by a Veteran(s) or service- disabled Veteran(s)? Is the company owned and controlled by a Veteran(s) or service-disabled Veteran(s)?

25 Verified Eligibility Ownership Control Elements of Verification - 38 CFR, Part 74 Is the company able to play the game? Is the company at least 51% owned by a Veteran(s) or service- disabled Veteran(s)? Is the company owned and controlled by a Veteran(s) or service-disabled Veteran(s)? The company is found in compliance with regulation!

First Base 26 VA / DoD disability rating, between 0 and 100 percent. Under conditions other than dishonorable. Includes Reserve/Guard on Federal active duty Honorably discharged ELIGIBILITY Verified!! BIRLS preferredDD 214 accepted

One or more Vets or Service Disabled Vets Fifty-one percent (51%) ownership Vet owner(s) have direct and unconditional ownership of at least 51% of the business Multiple Vets = 51% Community Property Second Base 27 OWNERSHIP Verified!!

Community Property VOSBs and SDVOSBs that reside in Community Property states may have to take special measures in meeting the 51% ownership stipulation. However, it is can be an EASILY CORRECTIBLE ISSUE that may be resolved before applying. In a Community Property jurisdiction, most property acquired during the marriage (except for gifts or inheritances) is owned jointly by both spouses and is divided upon divorce, annulment, or death. Joint ownership is automatically presumed by law in the absence of specific evidence that would point to the contrary. In the instance of a business located in a Community Property state, unless otherwise indicated, the business would be automatically be ONLY 50% owned by the Veteran NOT MEETING THE ELIGIBILITY REQUIREMENTS.

Third Base 29 CONTROL One or more Vets or Service Disabled Vets Total unconditional control (full decision-making authority) Managerial experience to extent and complexity needed to manage the company. Both a strategic policy and a day-to-day basis Highest compensated* Highest officer position Verified!! Unless there is a logical explanation otherwise submitted by the Veteran as to how taking a lower salary than other employee(s) helps the business (38 CFR 74.4(g)(3))

What does Control mean? CVE evaluates control based upon the following stipulations: 1)The Veteran owner has FULL DECISION-MAKING AUTHORITY. CVE will investigate further if any management, operating and/or shareholding agreements and/or bylaws of the organization state that the Veteran does NOT have full decision- making power or does not lead making strategic day-to-day decisions. 2)The Veteran owner has MANAGERIAL EXPERIENCE to the extent and complexity that they can manage the business. CVE will investigate further if the Veteran owner does not supply evidence to support training, education or experience in the field of work done by the business.

Playing the Game Protects the Veteran Advantage!!! CVEs mission, purpose and goal is to Protect the Veteran Advantage. The purpose of evaluating for Eligibility, Ownership and Control to enable the organization to do so. CVE wants to ensure that the Veteran Owner is in a position of strength in every scenario of their business operations. If a VOSB or SDVOSB has special circumstances with any areas of Eligibility, Ownership or Control, a Letter of Explanation can be used to provide more information to CVE to support your business operations. Be as detailed as possible to give CVE a greater understanding of the situation.

Department of Veterans Affairs (VA) VetBiz Verification Program 32 RE- CONSIDE- RATION FINAL DETERMIN- ATION Form 0877 Acknowledgement Form 0877 Missing Signature(s) Notice (if necessary) App Submission Acknowledgement Examination Clock Start Notice Examination Complete Notice Missing Documentation Request (if necessary) Expected Delay Notice (if necessary) Application Finalization Letter Reconsideration Decision Letter Veteran can choose to meet with a Verification Counselor 48 Hour Contact Period 48 Hour Veteran Post Evaluation Decision Period 48 Hours Opportunity To withdraw AND PRE DECISION

Pre- Application Veteran business owners who use the Pre-Application Stage increase their chances of approval by at least 70%!!! 1.Go to www.vetbiz.gov to find a certified Verification Counselor.www.vetbiz.gov 2.Spend time learning the application process by utilizing the Verification Self-Assessment Tool, Verification Resource Tool and Verification Assistance Briefs. Hitting a Homerun the First Time: Pre-Application

Before Coming Up To Bat Role of a Counselor (Coach) Pre application Assist with pre-work: Register in SAM State and DUN & Bradstreet Registration Review the Verification Application Resources on www.VETBIZ.govwww.VETBIZ.gov During On-line Application Prepare Vet to upload documents Set up and conduct appointment to review application Provide representation, if needed Provide ongoing support via email or appointment, as required 34

Verification Assistance Resources: VSOs and other support organizations provide counseling: http://www.va.gov/osdbu/veteran/vapVCP.asphttp://www.va.gov/osdbu/veteran/vapVCP.asp Verification Assistance Tool https://www.research.net/s/Verification_Assessment_Toolhttps://www.research.net/s/Verification_Assessment_Tool Verification Assistance Briefs & Guide for Applicants on: www.VETBIZ.govwww.VETBIZ.gov 35

Initiation Veteran business owner(s) submits a complete application with supporting documentation and CVE confirms the Veteran status. Hitting a Homerun the First Time: Initiation

Examination CVE conducts its final examination of the application and supporting documents. If the Veteran has not provided sufficient information or Letters of Explanation, they may be asked to provide Additional Documentation to support the application. Hitting a Homerun the First Time: Examination

Evaluation CVE performs a detailed evaluation of the business and its compliance to 38 CFR Part 74. At this stage, if the business documents support total compliance to the regulation, it will bypass the Pre-Determination stage listed next. In this scenario, the application goes straight to the Determination stage where CVE Leadership will grant approval. The VERIFIED LOGO is put on their business account and a HOMERUN HAS BEEN MADE!!! Hitting a Homerun the First Time: Evaluation

Determination Once it has been determined that the applicant is in accordance with 38 CFR Part 74, CVE Leadership will grant approval. The VERIFIED LOGO is put on their business account and a HOMERUN HAS BEEN MADE!!! Hitting a Homerun the First Time: Determination

40 Verified Eligibility Ownership Control Elements of Verification - 38 CFR, Part 74 To recap how to get around in one swing, the Veteran business owner should: Complete the Pre-Application steps and meet with a certified Verification Counselor. Submit all documentation in the key areas of ELIGIBILITY, OWNERSIP & CONTROL. Respond quickly to Additional Document Requests and provided detailed Letters of Explanation where needed. Lastly, Veteran owner(s) can get updates on their verification status from CVE-provided emails.

Top 10 Reasons For Denial In FY 2013 41 Companies who receive a denial based on these categories are deemed by Title 38 CFR Part 74 as enforcing restrictions on the Veteran owner and does NOT PROTECT THEIR VETERAN ADVANTAGE!!!

Safeguarding the integrity of the VAs Veterans First Program by ensuring VIP firms are and remain within 38 CFR Part 74 criteria Risk Mitigation Validation Pre-verificationProgram IntegrityPost Verification Post Verification Audits (on site) Debarments / Suspension Cancellation / Protests OIG Referrals Size Site Visits / Document Requests Clarifying Questions Eligibility Letters of Explanation 42 Document Reviews

43 Elements of Verification - 38 CFR, Part 74 Verified Eligibility Ownership Control How Runners Get Out! During the Game After the Game

During The Game Pre- Determination Finding (PDF) Happens prior to a determination letter of denial is issued Pre- Decision Process (PDP) Offers the option for a Veteran to withdraw or take a denial letter, whichever works better for their circumstance 44

Pre-Determination Program (Foul Ball) Allows the Vet to quickly remedy business practices that are not in accordance with regulation - without having to start the entire verification process over The process begins after Evaluation process is completed Veteran has five (5) business days to address the issue(s) Easily Correctable Issues: Quorum restriction and/or weighted voting and decision making issues (singularly or combined) Serve as Management Member of LLC 38 CFR 74.4(e). Community Property 38 CFR 74.3(f) Living Trust and direct ownership 38 CFR 74.3(a). Highest compensation for Veteran 38 CFR 74.4(g)(3). Highest officer position 38 CFR 74.4 (c)(2). 45

Pre-decision Process (Get To Bat Again) Allows withdrawal from verification process without receiving a denial decision Allowed to correct decision findings and resubmit application Existing business documents are maintained until replaced during resubmission Options offer after Evaluation process is complete Withdraw Company and attempt to correct the business documents and related issues when ready. Agree to accept a denial letter. Two (2)business days to respond to options Veteran receives call and email to explain two (2) options If no response within two (2) business days Evaluation Team will send the denial letter Must withdraw within two (2) business days of withdrawal option 46

Request For Reconsideration (R4R) (Out At The Plate) After all options are exhausted and CVE issues a denial, the Veteran may appeal through the R4R process Key Points to Remember: Follow instructions outlined in initial denial letter to prevent processing delays Every R4R will receive a complete examination and evaluation of all documents, including the original documents and those submitted in support of the R4R Site visits may occur to gain further clarification A final denial requires the participant to wait for six months before a new application will be processed (38 CFR 74.14) 47

After The Game - How To Stay Verified CVE maintains the integrity of the program before and after verification. Businesses should check early and often to review if they are in compliance with Title 38 CFR Part 74 while continuing to be verified through CVE. Businesses should notify CVE with any changes to: Size /Affiliation (Protests IAW 13 CFR) Notification of material changes: (may include but not limited to) Ownership Eligibility Address/location Dependence 48

Recap Main mission is Enabling Vet Business Opportunities while protecting the Veterans Advantage Protect Vets and Protect the Department Four Steps of Verification Eligibility Ownership and Control -- Staying Verified The Verification Process Documentation - Based, CVE can only review what is submitted Critical Players You, the Vet Business Owner Contracting Officers YOU are our EYES on the ground! Report: Fraud Changes to Ownership Changes to Affiliations 49

THE CENTER FOR VERIFICATION AND EVALUATION MICHELLE GARDNER-INCE DIRECTOR WWW.VETBIZ.GOV [email protected] QUESTIONS? "Enabling Veteran Business Opportunities by Protecting the Veteran Advantage-One Vet at a Time 50

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