Client Alerts & Newsletters

Unanimous Supreme Court Says Veteran-Owned Small Business Preferences Reign

Jun.20.2016

On June 16, 2016, the U.S. Supreme Court in Kingdomware Techs., Inc. v. U.S. ruled that 38 U.S.C. § 8127 requires the Department of Veterans Affairs to apply the “Rule of Two” and, if met, give preference to veteran-owned small businesses (VOSBs) when awarding any contract over the dollar thresholds in subsections (b) and (c). The Court soundly rejected both the Federal Circuit’s and the VA’s position that subsection (d)’s prefatory clause somehow relaxed the plain, mandatory language of the clause providing that the preferences “shall” apply, and the VA’s newly (and untimely) raised argument that subsection (d) does not apply to orders under Federal Supply Schedule contracts, setting the stage for a notable increase in awards of VA FSS orders to VOSBs and incentivizing more VOSBs to pursue opportunities with the VA.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Amy Laderberg O'Sullivan
Partner – Washington, D.C.
Phone: +1 202.624.2563
Email: aosullivan@crowell.com

Lorraine M. Campos
Partner – Washington, D.C.
Phone: +1 202.624.2786
Email: lcampos@crowell.com

Olivia Lynch
Counsel – Washington, D.C.
Phone: +1 202.624.2654
Email: olynch@crowell.com

Crowell & Moring LLP is an international law firm with more than 500 lawyers representing clients in litigation and arbitration, regulatory, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity. The firm has offices in Washington, DC, New York, Los Angeles, San Francisco, Orange County, London, Brussels, and Shanghai.

View Desktop Site | Mobile Sitemap

Contact | Subscribe | Terms of Use | Privacy Statement | Alumni

© Crowell & Moring LLP 2020
Attorney advertising - prior results do not guarantee a similar outcome.