Louisiana veteran business contracting

Louisiana Economic Development certifies, and there is a separate disabled-veteran distinction

The secretary of Louisiana Economic Development certifies businesses as veteran-owned small entrepreneurships. Service-connected disabled veteran ownership is an additional distinction inside the same program, so a service-disabled owner meets the base veteran requirements first and then adds the disabled-veteran designation.

• Statutory certification criteria sit in R.S. 39:2176, with the detail refined by administrative rule.
• LED certification supersedes other state agency small-business certifications for procurement purposes, except where a federal program requires otherwise.
• Applying for the Veteran Initiative also submits you for the Hudson Initiative, Louisiana’s general small entrepreneurship program.

Source: La. R.S. 39:2176, certification of businesses by Louisiana Economic Development

The program exists to feed state procurement, not to hand out contracts

Certification puts your business and contact details in front of state purchasing officials and prime contractors looking for subcontractors. LED is explicit that nothing is reserved for you.

• LED states that the Veteran Initiative is goal-oriented and that no contracts are set aside for certified businesses.

Source: Louisiana Economic Development, Veteran Initiative

12 percent of total evaluation points on a request for proposals

On a state request for proposals, 12 percent of the total evaluation points go to an offeror that is itself a certified veteran or service-connected disabled veteran-owned small entrepreneurship. The statute says this award of points shall be included in all requests for proposals unless it would jeopardize funding or violate other law.

• A prime contractor that is not itself certified can earn up to 12 percent of the points for a good faith effort to use certified firms as subcontractors.
• An exemption has to be requested in writing from the commissioner of administration, who approves or denies it.
• The points do not apply to design-build or construction manager at risk procurements.

Source: La. R.S. 39:2175, competitive source selection

On small purchases an agency can skip the extra quotes

For purchases under 25,000 dollars, a state agency may waive the additional quotes it would normally gather if a certified firm submits a quote that is reasonable. In practice this is the fastest route to a first state contract.

• Other recognized methods include direct purchase from a certified distributor on a state contract, and good faith subcontracting plans required in a bid or RFP.

Source: Louisiana Economic Development, Veteran Initiative

The participation goal is set annually, not fixed in statute

There is no permanent statutory percentage goal. The commissioner of administration sets annual goals for veteran and service-connected disabled veteran participation and decides how many goals to set and at what level, based on historical contracting data and the supply of certified firms.

• A goal in this chapter is defined as a numerically expressed objective an agency is encouraged to make a good faith effort to achieve.

Source: La. R.S. 39:2174, state goals for procurements and public contracts

Ownership, residency and size all have to line up

The program is open to Louisiana businesses that clear every one of the statutory tests. There is no minimum disability rating anywhere in the criteria — service-connected disabled status is a yes-or-no distinction within the program.

• At least 51 percent owned by a veteran, or by a service-connected disabled veteran for that distinction.
• Principal business office in Louisiana, with owners and officers domiciled in Louisiana.
• Owners and officers must be United States citizens or legal residents.
• Fewer than 50 full-time employees, counting affiliates.
• Average annual gross receipts no more than 6 million dollars for non-construction and 10 million dollars for construction, for each of the previous three tax years.
• Independently owned and operated, and not dominant in its field of operations.

Source: La. R.S. 39:2176, certification criteria

A 50 percent owner does not qualify

LED answers this directly in its eligibility scenarios: a business half owned by a veteran fails the Veteran Initiative test, though it may still qualify for the Hudson Initiative if it meets the other requirements.

• The 51 percent threshold applies to the veteran ownership and, separately, to service-connected disabled veteran ownership.

Source: Louisiana Economic Development, Veteran Initiative eligibility scenarios

Apply online, then register separately as a state vendor

The application is filed online through the LED small business portal. LED reviews completed applications within two business days and emails the certification decision. Certification is not self-sustaining — you have to feed it every year.

• Complete the online application at the LED small business portal.
• LED reviews within two business days of submission and emails the result.
• Register as a vendor with the Office of State Procurement to receive notice of bid opportunities.
• Submit annual updates through the LED portal by your anniversary date; LED sends three email reminders.
• Missing the annual update terminates the certification.

Source: Louisiana Economic Development, Veteran Initiative application process

LED has to publish the list of certified firms and update it monthly

The statute requires LED to maintain a listing of all certified veteran and service-connected disabled veteran-owned small entrepreneurships, update it monthly, publish it on the internet, and supply it in writing on written request. Prime contractors use it to find subcontractors.

• The Office of State Procurement publishes a Hudson and Veteran Initiative coordinator list naming the contact at each agency.

Source: La. R.S. 39:2176(B), listing requirement

Bid notices come from the Office of State Procurement

Certification alone does not put solicitations in your inbox. LED tells certified firms they must register as a vendor with the Office of State Procurement to learn about current bid opportunities in their industry.

Source: Louisiana Division of Administration, Office of State Procurement