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News & Press: WIPP Legislative Updates

Supreme Court Sides with Small Business Contractors at VA

Tuesday, June 28, 2016  
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Supreme Court Sides with Small Business Contractors at VA 

 

A unanimous decision by the U.S. Supreme Court, Kingdomware v. United States, requires the U.S. Department of Veterans Affairs (VA) to give a preference to veteran-owned small business for VA contracts, as long as there are two or more small business that can meet the requirements — also known as the “rule of two.” This is a big win for all small contractors because the Court made clear that agency contract goals are a floor, not a ceiling. The Court also ruled that task orders from a Federal supply schedule are contracts that require the VA to use veteran’s preferences. 

 

While this decision only applies directly to Veteran-Owned Small Businesses at the VA, SBA is conferring with the Department of Justice, other agencies, and the Federal Acquisition Regulatory Council to discuss if further changes to regulations are needed. 

 

The message of the case is clear. The "rule of two" is a powerful tool for all small businesses seeking contracts in the federal marketplace and this decision lays the groundwork to ensure WOSBs are given a fair shot on indefinite delivery contracts. 

 


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