Dallas : 214-979-7400

Houston : 713-751-0800

A specialized team built to manage and resolve your legal issues

Supreme Court rules in favor of veterans in VA contract case

In a case that may interest Texas military veterans, the U.S. Supreme Court has ruled that the Department of Veterans Affairs failed to comply with a law designed to increase federal contracts awarded to small businesses operated by disabled veterans. The June 16 decision was unanimous.

The case before the court involved veteran-owned Kingdomware Technologies Inc., a company based in Maryland that was not considered for a service contract at a VA medical center. Federal law requires the VA to allow contract bidding whenever two or more companies owned by disabled veterans can offer competitive prices for a service. However, the VA claimed that the law did not apply when it purchases goods and services from companies already contracted under the Federal Supply Schedule service. Justice Clarence Thomas countered that "the rule of two" applies to all contracts.

The Supreme Court's decision was a victory for veterans groups that alleged the VA's interpretation of the bidding rule was depriving lucrative contracts to thousands of veteran business owners. A federal appeals court had previously ruled the VA could ignore the rule of two if they awarded 7 to 12 percent of all annual contracts to veteran-owned companies. However, the high court stated the VA is required to follow the bidding rule in all cases, whether or not a yearly threshold is met.

Business contracts can be complex, especially when one of the parties is a governmental agency. Companies entering contract negotiations may benefit by consulting with an attorney to ensure the agreement meets their expectations and to avoid protracted and expensive litigation that could arise over contract disputes.

Source: PBS, "Justices rule against VA in disabled vets contract dispute," Associated Press, June 16, 2016

No Comments

Leave a comment
Comment Information

With Offices in Dallas and Houston, We Engage in a Nationwide Practice. Please Call to Get in Touch With a Lawyer Now.

Dallas Office
1601 Elm Street, Suite 4100
Dallas, TX 75201

Phone: 214-979-7400
Fax: 214-979-7402
Dallas Law Office Map

Houston Office
815 Walker Street, Suite 350
Houston, TX 77002

Phone: 713-751-0800
Fax: 713-751-0105
Houston Law Office Map

Visit our office in downtown Dallas in Thanksgiving Tower, a distinctive all-glass icon of the city, located on Elm Street on the edge of the Arts District.

Visit our office in downtown Houston in the historic Esperson Building, located in the center of the financial district, between the state and federal courthouses.