An open door and a leg up: increasing service-disabled veteran-owned small business (SDVOSB) participation in defense, Navy, and Marine Corps contracting through simplified acquisitions

Abstract

Contracting with service-disabled veteran-owned small businesses (SDVOSBs) is widely promoted as an important benefit for veterans, particularly at the Department of Defense (DOD) and its component the Department of the Navy (DOD). In FY2014, DOD finally met its three (3) percent SDVOSB statutory contact spending goal, while DON made significant strides towards meeting it. This real progress came despite five (5) academic assessments which persistently suggested that the SDVOSB Procurement Program’s design contain inherent conceptual flaws that sow confusion among disabled veterans and Contracting Officers about scope of discretion to assist SDVOSBs, generate widespread disillusionment among veterans, promote entrenchment by a few already successful firms instead of helping veterans at large to obtain self-employment, and thereby impede goal achievement. This study tests the academic criticisms by examining the SDVOSB Program design and operation trends through the prism of the generally accepted Cohen-Eimicke Contract Management Performance Model. Finally, this study proposes veteran-centric performance management realignments of the SDVOSB Program at DOD and DON through the use of targeted set-asides and Simplified Acquisition Procedures (SAP) in order to match the Program with its original intent of broad-based SDVOSB business development.