HomeMy WebLinkAboutIR 23-1775 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-1775
To the Mayor and Members of the City Council December 5, 2023
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SUBJECT: SMALL-BUSINESS PROGRAM FOR VETERANS AND SERVICE-
DISABLED VETERANS
City Council members have recently requested that we determine the feasibility of creating a small-
business program for U.S. military veterans. While the City currently utilizes and can track Service
Disabled Veteran firm participation for goods and services under $50,000 who are certified as Texas State
Historically Underutilized Businesses (HUBs), we have determined that existing resources in the Diversity
and Inclusion Department's Business Equity Division will enable us this year to establish another full
program in addition to the Business Equity Program that will support two additional small-business
categories: Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small
Business (SDVOSB). This Veterans Program will serve qualified businesses in three ways:
1. Promoting, tracking and reporting full and equal opportunities in city contracting for VOSBs, and
SDVOSBs
2. Encouraging and assisting Veterans and Service Disabled Veterans in acquiring certification
through the U.S. Small Business Administration (SBA), Texas Small Business, and the Texas
Comptroller of Public Accounts (CPA)
3. Increasing awareness of VOSB, SDVOSB capital access and capacity building opportunities
through education, communication, training, and networking outreach efforts
In order to establish project specific goals for VOSBs and SDVOSBs, we recommend the City identify an
experienced external consultant to conduct a thorough availability and utilization analysis (AUA) of existing
VOSBs and SDVOSBs in the City's established marketplace. The timeframe to conduct an analysis and
generate a final report is typically contingent on scope of the study, size of the jurisdiction, availability of
valid data, and many other factors. Generally, it takes nine to eighteen months to properly conduct an AUA
for goal setting.
Eligibility for the Veterans Program will be consistent with the U.S. Small Business Administration (SBA)
VOSB/SDVOSB Program and the Texas Small Business and Disadvantaged Business requirements,
including an active-status Veteran Small Business Certification (VetCert) through the SBA. To secure
such certification, the firm must meet the following requirements:
o A veteran holds 51 percent ownership of the firm.
o The veteran owner(s) have full control over the day-to-day management, decision-making, and
strategic policy of the business.
o The firm is registered in the System for Award Management (SAM.gov system), has been formed
or organized in Texas, and is 100 percent owned by a natural person or persons, with the 51
percent owner being an honorably discharged veteran from a branch of the U.S. armed services.
o The firm is a small business according to SBA's small business size requirements.
The City will use the SBA business directory to verify the certification of veteran-owned firms.
For legal and practical reasons, the Veterans Program would be an additional program, separate from the
Business Equity Ordinance and Business Equity Program. The Business Equity Program is a public-sector
program that includes both race-neutral and race-conscious remedies to address specific racial and
gender disparities in the utilization of firms for City contracts based upon availability. The race-conscious
activities in the Business Equity Program are held to the highest level of judicial review and is supported
by statistical evidence identified in the City's 2020 Disparity Study. Correspondingly, the Business Equity
Program is narrowly tailored to specifically address racial disparities in the City marketplace.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-1775
To the Mayor and Members of the City Council December 5, 2023
Page 2 of 2
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SUBJECT: SMALL-BUSINESS PROGRAM FOR VETERANS AND SERVICE-
DISABLED VETERANS
VOSB/SDVOSB programs do not have the same U.S. Supreme Court strict scrutiny requirements.
The City can provide a high level of service and opportunity to VOSBs and SDVOSBs in a custom
designed program specifically for Veterans. The City and its small-business development partners are
committed to working with the Texas Comptroller's Office on the new Veteran-Owned Business and Texas
Franchise Tax Initiative process and the Vets First Verification Program as an advocate. For the new
Veteran-Owned Business and Texas Franchise Tax Initiative, qualifying new veteran-owned firms are not
subject to franchise tax for their initial five-year period, but must file Form 05-163, Texas Franchise Tax No
Tax Due Report (PDF) for each of those years. The Vets First Verification Program affords verified firms
owned and controlled by veterans and service-disabled veterans the opportunity to compete for U.S.
Department of Veterans Affairs set asides. During verification, the Center for Verification and Evaluation
(CVE) verifies SDVOSB/VOSBs according to the tenets found in Title 38 of the Code of Federal
Regulations (CFR) Part 74 and 13 CFR Part 125 that address veteran eligibility, ownership, and control.
To qualify for participation in the Veterans First Contracting Program, eligible veteran-owned firms must
first be verified.
The Diversity and Inclusion Department, in collaboration with other city departments and the Diversity and
Inclusion Staff Committee, will continue honoring City elected officials and employees that are U.S. military
veterans as part of the Diversity Matters Program annually in November, on or around the November 11
Veterans Day holiday.
If you have any questions about this information, please contact Christina Brooks, Director of Diversity and
Inclusion, at 817-392-8988.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS