Veterans Contracting Group, Inc. v. United States, No. 18-1409 (Fed. Cir. 2019)Annotate this Case
Montano, a service-disabled veteran, owns 51% of VCG, which qualified as a service-disabled-veteran-owned small business (SDVOSB) under the VA system, 38 U.S.C. 8127(e)–(f), and appeared on the VetBiz database as eligible for set-aside contracts. VCG was the lowest bidder on an SDVOSB set-aside contract for an agency working with the Small Business Administration (SBA). Another bidder challenged VCG’s eligibility. The SBA determined that, because of the limitations on Montano's ownership in case of his death or incapacity, Montano did not “unconditionally” own his interest, and VCG did not qualify as an SDVOSB under 15 U.S.C. 657f. VA regulations required the removal from VetBiz of any business found ineligible in an SBA proceeding. Before VCG’s removal from VetBiz, the VA solicited bids for SDVOSB set-aside contracts for a roof replacement and for relocation. Hours before the deadline on the roof solicitation, VCG filed a bid protest in the Court of Federal Claims. Because VCG was not listed on VetBiz on the day bidding closed, the contracting officer could not consider VCG’s roofing bid and recommended cancellation and reposting. VCG sought a preliminary injunction. The VA finalized cancellation; hours later, the Claims Court entered a preliminary injunction restoring VCG to VetBiz, noting that the VA and SBA differ in defining unconditional ownership, but specifically declined to address relief related to the roofing solicitation. The Federal Circuit affirmed, finding that the contracting officer acted rationally in requesting cancellation based on the record.