Issue: How can a SDVOSB/VOSB avoid the Center for Verification and Evaluation (CVE) determining that the applicant is improperly “dependent” upon non-Veterans or entities? How is “dependence” upon other non-Veterans or entities determined?
Examples of evidence that will support CVE finding of dependence in conflict with this subsection and that will prohibit an applicant from receiving verified status:
CVE reasons that such situations are indicative of impermissible dependence and the applicant bears the burden of proving that it is an independent business that can function without resources from other non-Veterans/entities unless furnished at fair market value. If the Veteran firm cannot demonstrate that it controls its resources, then it cannot meet this burden of proof.
CVE reviews corporate/company documentation as its primary means of determining whether or not there may be impermissible dependence on non-Veterans/entities. If your firm’s application has similar issues, the best means to improve your application is by providing detailed written explanations and business documentation showing that the Veteran owner(s) have independent resources and make final controlling decisions with respect to the company’s business.
The applicant firm is co-located with a larger, longer established firm:
This information has been provided by CVE for general informational purposes and should not be construed as providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. In addition, CVE makes no representation as to the accuracy or whether the above information is currently up-to-date. All applicants must read the applicable regulations and determine how best to meet these requirements. The Verification Assistance Briefs do not constitute legal notice or replace the regulations.