That was the issue in the recent KWV, Incorporated v. United States (May 2, 2013) case.  Last year, the Veterans Administration (“VA”) sustained a competitor’s bid protest claiming that the owner of a Rhode Island service-disabled, veteran-owned business (“SDVOSB”) did not have enough control over day-to-day management of his business because he lived in Florida for part of the year.  Arguing that he managed the day-to-day business by telephone, e-mail and other electronic means and traveled to Rhode Island when necessary to attend meetings, the veteran business owner appealed to the United States Court of Federal Claims – and prevailed.  The court found that the veteran’s residency and decision to live in Florida for part of the year did not preclude him from “controlling” the business within the meaning of 38 CFR §74.4.   In fact, other than the VA’s “misplaced reliance” on the veteran’s residency, there was nothing to suggest that the veteran “was not exercising sufficient control” over his business.

Although each small business program operates according to unique rules and regulations, the KMV case may provide other DBE, MBE and WBE business owners with legal precedent to argue that the can properly manage the affairs of their business from afar. 

For more information contact:

Christopher E. Ng, Esq.
Gibbs Giden Locher Turner Senet & Wittbrodt LLP
1880 Century Park East, 12th Floor
Los Angeles, California 90067
Phone: (310) 552-3400
email: cng@gibbsgiden.com

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