Noteboom The Law Firm

Veteran-Owned Businesses Take Issue With Tampa Bay Pines Contract

The Department of Veterans Affairs (VA) set aside certain opportunities for disabled veteran-owned small businesses. A recent investigation by a Tampa TV news team, however, has raised questions about a large construction contract for work to be done at the Bay Pines Department of Veterans Affairs (VA) Hospital in the Tampa area. The contract was given to a company not owned by disabled veterans. Some believe this could be indicative of a larger problem.

The contract in question was worth $8.4 million, was federally funded, and was to build a new Eye Treatment and Surgery Center at the Bay Pines VA Hospital. When the federal government issued the solicitation for the contract it came with the caveat of being "restricted to service disabled veterans owned small businesses."

At least one local disabled veteran owned company jumped at the opportunity but were not granted the job. Instead, the contract went to a local company with national ties. Roughly $70 billion a year in such contracts go to businesses who should have never have been awarded the contracts because they are not owned by disabled veterans. The Government Accountability Office (GAO) released a study last year putting the blame on the online application process not requiring any proof from companies claiming to be owned by disabled veterans.

The reality is most companies know there is no validation process in place, and the low amount of risk of being caught is worth landing huge, federally funded contracts. In many towns the only contracts are coming from the federal government. For small businesses owned by disabled veterans relying on the set aides, losing contracts to businesses not eligible for the award can be fatal to their businesses.