Florida Elite SDVOB Network

District Court Enjoins Enforcement of Statute Providing for Race-Based Preferences in Federal Procurement and University Contracts; DOD Issues a Pyrrhic Waiver

The above link is to "Government Contracts Blog," March 19, 2009, and it gives a very good history and analysis on the court's decision and the DOD reaction.

 A small excerpt:

"On November 4, 2008, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Rothe Development Corporation v. Department of Defense, holding that a statute providing for race-based preferences in DOD procurements was unconstitutional."

"On March 10, 2009, DOD issued "preliminary guidance" on how the Order should be implemented.   DOD advised that "any activity, which includes but is not limited to the award of contracts and orders under contracts, advance payments, and the award of grants or scholarships or the addition of funds to existing grants and scholarships, that rely exclusively on the authority of 10 U.S.C. § 2323 should cease."  Beyond this, DOD encouraged individuals to consult with the attorneys in the DOD Office of General Counsel with any additional questions." 

To read the section of  10 U.S.C. § 2323 that the DOD is ceasing to contract under, go here.

While this action does not specifically effect SDVOB contracting, any of you whose business would be impacted should understand why. Also, since the DOD is putting a hold on HUBzone contracts, this would be a great time to redouble your efforts in getting Contracting Officers to set aside for SDVOBs.

Another thing to keep in mind:  Re-instating these programs within DOD will require legislative action. Now is the time to work together to help shape that legislation and work toward improving the SDVOB program.

 

FOR IMMEDIATE RELEASE NOVEMBER 10, 2008 CONTACT: GOVERNOR’S PRESS OFFICE (850) 488-5394 Office Of Supplier Diversity Opens Doors for Service-Disabled Veteran Business Enterprises ~ Florida Service-Disabled Veteran Business Enterprise Opportunity Act expands state’s classifications for certification~ TALLAHASSEE – Governor Charlie Crist today announced that the Department of Management Services Office of Supplier Diversity (OSD) is adding service-disabled veterans to the groups of minority business owners it assists. Governor Crist signed House Bill 687 in June to create the Florida Service-Disabled Veteran Business Enterprise Opportunity Act and put into law a preference in state contracting for businesses owned by service-disabled veterans. OSD provides business development and certification for minority- and women-owned businesses. “Florida is proud to give back to the men and women in the Armed Forces who serve our great country,” said Governor Crist. “Their sacrifices are immeasurable, and by helping service-disabled veterans in Florida rebuild their lives, we show them we are behind them 100 percent.” The law takes effect Veterans Day, November 11, 2008. The Florida Department of Veterans’ Affairs (FDVA) and the Department of Management Services will work together to implement the preference.

June 19, 2007

This VA information letter "provides guidance to contracting officers concerning the award of contracts to Service-Disabled Veteran-Owned Small Businesses (SDVOSB) and Veteran-Owned Small Businesses (VOSB)" within the Department of Veterans Affairs.

http://www.vetbiz.gov/library/ILfinal.pdf

December 10, 2006

The United States Congress passed and the President signed into law the Veterans Benefits Act of 2003, subsequently Service Disabled Veterans Executive Order 13360 was put into effect. The net result of this legislation is that each Federal Agency established goals of 3% for all contracts for goods and services directly for Service Disabled Veteran Owned Businesses (SDVOBs). The State of California has also put into effect Executive Order D-43-01 which states “all State agencies shall make every effort to assure that disabled veteran businesses participate in at least three percent of State contracting annually.”

We believe that the passage of legislation this upcoming session will help a great many of the SDVOBs within Florida.  
Ideally, we would like to see Florida create a 3% set aside goal for all procurements, to be consistent with the Federal Government’s mandate, California’s procurement policies, and similar to that which several other states are considering. We firmly believe that Florida's SDVOBs can stand on their own merit and that Florida will ultimately pass legislation which contains the same 3% SDVOSB goals as the Federal Government.

On October 20, 2004, the President signed Executive Order 13360 to increase federal contracting and subcontracting opportunities for service-disabled veteran businesses. This memorandum provides guidance to assist agencies in preparing their strategies to implement the Order.

http://www.whitehouse.gov/omb/memoranda/fy2005/m05-06.pdf