Vet-owned firms grow but still short of goals

Spending has grown for five years, but still well short of 3 percent goal.

Government spending with service-disabled, veteran-owned businesses continues to rise but is still short of the mandated 3 percent, according to an analysis by Eagle Eye Publishers.

The market research firm found that federal agencies spent $6.9 billion during fiscal 2008 with service-disabled contractors, which is about 1.4 percent of total government procurements. To reach the 3 percent goal, agencies would have had to spend $15.5 billion with these companies.

This is the fifth fiscal year that spending with service-disabled companies has increased, according to Eagle Eye.

Only 8 of 46 agencies reached their 3 percent goal, with Veterans Affairs leading the way with $1.6 billion out of the agency’s $14.5 billion in procurement spending.

In pure dollars, the Defense Department spends the most with service-disabled, veteran-owned companies, with $3.5 billion in contract obligations during 2008.

By percentage, the Federal Maritime Commission spent the most with these companies, with 16.7 percent of its contracts in 2008 going to service-disabled, veteran-owned firms, according to Eagle Eye.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Fri, Oct 16, 2009 James W. Holland Indialantic, FL 32903

My company has been operating as a SDVOSB Company since 2005; we have been in business since 1989. I have been struggling to make a go as a SDVOSBC. I can assure you that I did better as a NON - SDVOSBC. For I have worked by the rules, even developed a Request for Set-A-Side Letter that has been Nicked Named "FLIP LETTER" by those who have adopted it after the SBA Introduced it at several SDVOSB Conventions, which I chose not to attend. I have helped other Veterans get themselves organized, downloaded the applicable Laws and shared them with all. I have been screwed out of one contract after another by Contracting Officers because of my assertiveness. In one instance recently a MacDill Contracting Officer mis-named my company telling me that there was no way Holland Specialties was going to win this Contract (my companies name is Holland Signal, Inc.). The fellow forgot who he was discussing the Solicitation with in his "Feeling of Importance" I suppose. I said you mean "Holland Signal, Inc." don't you? He said let me look, and then he responded and said yes, how did you know? I said that’s me! And I hung up.
There is no way you can win contracts when there is corruption, both major and minor in the Contracting Systems.
The Laws are written with the phrase “May award to a Service Disabled Veteran Owned Small Business” vice the phrase “Shall award to a Service Disabled Veteran Owned Small Business”. We will always come in last at this rate. Next is the “Rule of TWO”. No other Small Business Group is shackled with the “Rule of TWO”. Why are we?
James W. Holland
President, Holland Signal, Inc. (Cage Code: 0LAG2)
PO Box 33607
Indialantic, FL 32903-0607
Tel.: 321-727-8737
Fax: 407-650-2826
Cell: 321-536-3885

Fri, Oct 9, 2009

Nothing is going to work. We have an unethical way of working and that is it. Large companies get the award and small, minority, SDVOSB, Woman-Owned, etc get to display a booth at the shows, spend money, and make a fool of themselves. Contract bundling is not going to change and cheats are not going to quit. My company SDVOSB has yet to be awarded a contract, forget that even to get business is a task by itself. Why do we have small business? just give the contracts to large businesses with non compete or compete and pre wire for a large business and just award it to them. Wow! no change from the previous administration to the new one.

Wed, Aug 26, 2009 Anton DC

Eagle Eye has the information you are looking for in detail, I have used it many times. It's difficult to provide advice without knowing more about your company, it's products and/or services and how you are pursuing opportunities.

Fri, Aug 14, 2009 James Johnstown PA

Do you have a chart of the 46 agencies and their percentages? We are a SDVOSB and have been in business for 5 years and have yet to be awarded a contract or subcontract. Any advice?

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