On October 10, 2018, the Court of Federal Claims denied a contractor’s pre-award protest, challenging CVE’s denial of its SDVOSB verification status. Without VETBIZ verification, the protester, BTR Enterprises of SC, LLC, was not eligible to receive a contract under a VA SDVOSB set-aside procurement. The protester argued that CVE did not act reasonably when cancelling its SDVOSB VETBIZ verification.
CVE cancelled the contractor’s SDVOSB status after learning that the service disabled veteran did not actually run the company. This was based on information obtained during an OIG Special Agent investigation in which the service disabled veteran admitted that he did not run the company because of PTSD. Instead, his wife, mother and father allegedly helped run the company. These statements were inconsistent with the service disabled veteran’s representations to CVE that he devoted full time to the management of the company. To make matters worse, the service disabled veteran plead guilty to defrauding the VA by misrepresenting his service-related disabilities.
The Court of Federal Claims held that VA acted reasonably when refusing to consider BTR Enterprises eligible to participate in an SDVOSB procurement. The Court had some harsh words to say:
Mr. Robert’s guilty plea puts paid to any suggestion that BTR should be eligible to receive this VA contract. It is clearly not in the public interest for VA to award contracts to a business owned by someone guilty of conspiring to defraud the VA, the same agency from which he seeks a contract award.
This case reminds us that fraud continues to impact the SDVOSB program. Here, the Court was no about to allow a person to benefit from the fruits of his fraud by obtaining a government contract.
BTR Enterpises of SC, LLC, No. 18-1241C, United States Court of Federal Claims (October 10, 2018)
