VA Will Use ‘Preliminary Findings’ To Reduce Verification Denials of Veteran-Owned Small Businesses

WASHINGTON – To speed eligibility determinations of Veteran-owned small businesses for Department of Veterans Affairs’ “Veterans First” contracts, VA will allow applicants the opportunity to correct minor deficiencies before an initial denial is issued. Starting May 1, VA will begin providing preliminary findings to applicants before completing a comprehensive review of their submissions. This is expected to greatly reduce the number of VA’s initial denials and subsequent requests for reconsideration from companies.  

“A large percentage of verification denials are due to single points of failure that can be easily and quickly corrected. This improved process will enable us to bring more deserving Veteran business owners into VA’s system,” said Secretary of Veterans Affairs Eric K. Shinseki.  “Our Center for Veterans Enterprise (CVE) will refine and measure the new process through pilot testing that has begun.”

Firms that would be denied based on easily corrected issues will receive a preliminary finding before a determination letter of eligibility is issued.  They will have 48 hours to respond with their intent to correct and resubmit the documents within a specified timeframe.  All Veteran-owned companies receiving preliminary findings will be encouraged to work with verification-assistance counselors to address identified issues that might result in denial.

CVE has initiated a series of limited pilots to exercise and refine this new process for applying for verification as a Veteran-Owned small business.  The program is aimed at eliminating a large percentage of verification denials that are due to single points of failure.

As VA has improved the program and processes, the average time to initial determination has been reduced from more than 130 days during the summer of 2011 to an average of 46 days for those applications completed last month.

This is the most recent initiative aimed at improving the verification process.  In June 2012, Secretary Shinseki announced that VA would double the amount of time – from one year to two years – before the owners of service-disabled, Veteran-owned small businesses and Veteran-owned small businesses had to re-verify their status with VA.

The next generation Verification Case Management System (VCMS) is currently under development, with an estimated contract award for a new system in May 2013.  This will be a phased program with initial operational capability expected in October 2013.

In addition to the current Verification Assistance program elements, a fourth dimension to the program will launch with the pilot of VA’s first Pre-Application workshop for Veterans on March 13, 2013, at an event hosted by the SDVOSB Council in Virginia.  This workshop will outline what a Veteran needs to know and do to put together a successful verification application.

VA encourages feedback on the process and will post additional information and the listing of easily correctable issues on www.VetBiz.gov.  CVE has also established a help desk service to address questions at 202-303-3260.