In a crushing blow to SDVOSBs, the U.S. Court of Appeals for the Federal Circuit has denied the appeal of a lower court decision allowing the VA to procure goods and services using the Federal Supply Schedule without first considering whether SDVOSBs can satisfy the requirement.
Rejecting well-stated objections by a dissenting judge, a two-judge majority held that the purpose of the “Veterans First” rule is to ensure that the VA meets its SDVOSB goals, and that so long as the VA meets its SDVOS goals, it is free to procure services and supplies from the Federal Supply Schedule without first considering a SDVOSB procurement.
The Court’s decision in Kingdomware Technologies, Inc. vs. United States, No. 2013-5042 (2014) is the latest (and possibly last) in a long-running battle between SDVOSBs and the VA over the SDVOSB preferences adopted by Congress as part of the Veterans Benefits, Health Care and Information Technology Act of 2006. Because it has been awhile since the last decision in this battle, I have summarized the relevant history before diving into the particulars of the Federal Circuit’s decision.