On March 25, 2019, an administrative judge at the SBA Office of Hearings and Appeals (“SBA OHA”) upheld the SDVOSB status of Veterans Medical Transcription Services, Inc. The protester argued, among other things, that this SDVOSB company shares employees, office space and other resources with a non-SDVOSB company. If true, the SBA regulations create a rebuttable presumption that the service disabled veteran does not control his company See, § 125.13(i)(4), which states that this presumption arises “[i]n circumstances where the concern [SDVOSB] shares employees, resources, equipment, or any type of services, whether by oral or written agreement with another firm in the same or similar line of business, and that firm or an owner, director, officer, or manager, or a direct relative of an owner, director, officer, or manager of that firm owns an equity interest in the concern.”
SBA OHA relied on sworn declarations from the service disabled veteran to show that his company does not share resources with another company. These sworn declarations saved the day:
According to the sworn declarations of Mr. Dortch and Mr. Rose, VMTS and Stone are not co-located; have no business relationship; and share no employees, resources, equipment, or any type of services. Section II.G, supra. Further, the three owners of VMTS includes no one who is an owner, director, officer, or manager of Stone, or a direct relative of an owner, director, officer or manager of Stone.
This case comes under SBA OHA’s new jurisdiction over CVE Protests. There are no trials. Because of that, the ability to challenge a service disabled veterans control is limited. Here, the service disabled veteran provided declarations that he controls his company. The company’s bylaws were in order as well. So, with that SBA OHA found that the SDVOSB is a legitimate concern.
Make sure your corporate documents are in order. If you face a CVE Protest, the opposing will challenge them from every angle.
Alpha4 Solutions LLC d/b/a Alpha Transcription, CVE-103 (2019)
