A would-be SDVOSB’s relationships with a company controlled by the SDVOSB’s minority owner undermined the service-disabled veteran’s control – and cost the SDVOSB an Air Force contract.
In a recent decision, the SBA Office of Hearings and Appeals ruled that a SDVOSB did not adequately control his company where the company (and the veteran) appeared to be unduly dependent on an outside firm.
SBA OHA’s decision in Battalion, LLC, SBA No. VET-242 (2013) involved an Air Force solicitation seeking a contractor to repair exterior building walls. The Air Force set aside the procurement for SDVOSBs under NAICS code 238140 (Masonry Contractors).