When an Arizona military veteran wants to start a business, or already owns one, the company might benefit from government contracts. In fact, there is a law that provides for preferential treatment to veterans when it comes to such contracts. However, an out-of-state business filed business litigation against the Department of Veterans Affairs for violating this law.
The company, which is owned by a veteran, was denied a contract to provide services to a VA medical center in its area. The company claimed that the VA did not correctly apply the bidding requirements for federal contracts. The VA alleged that it was not required to adhere to what is called the "rule of two," which requires a bidding process if more than two companies owned by veterans can provide the services or products needed at a fair price. It took this position because it already had vendors capable of fulfilling the contract.
The case ended up going all the way to the U.S. Supreme Court, which recently ruled against the VA. The court ruled that the rule is mandatory regardless of any other considerations. This is good news for veteran-owned companies across the country.
Arizona attorneys who practice in the area of business litigation typically keep up with both local rulings and federal ones in order to serve their clients better. This includes ensuring that those who served and/or fought for this country have the best opportunities possible to succeed. Businesses that are owned by veterans may benefit if they are made aware of this new ruling and exercise their right to bid for federal contracts.
Source: militarytimes.com, "Supreme Court rules against VA in disabled vets contract dispute", June 16, 2016