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Government Contracts Advisor Industry Insights & Analysis

Service Disabled Veteran-Owned Small Business Successfully Challenges Status Rejection By the U.S. Department of Veteran Affairs

Posted in Small Business

This blog post was co-authored by Andrea Fontana, an associate at MLA’s Los Angeles office.

In what is apparently the first such court ruling, CS-360, LLC successfully challenged the VA’s denial of its application to be included in the VA’s online database of businesses eligible to participate in veteran-owned small business programs. CS-360 was successful because the Court found that the VA did not have a reasonable basis for deciding that a service-disabled veteran was not in control of his company. Interestingly, in its initial determination, the VA viewed the company as a “sham” and a front company for a non-SDVOSBC. This view seemed to affect the VA’s evaluation of the corrective actions taken by CS-360 prior to its request for reconsideration. The United States District Court for the District of Columbia remanded the matter back to the VA.