NJ hasn't supported veterans' businesses, report says

Million in contracts lost as law is ignored

By: Dustin Racioppi
Trenton Bureau
USA Today Network - New Jersey

..... New Jersey has not followed its own law supporting businesses owned by military veterans, denying a "disadvantaged class" millions of dollars in state contracts in the last seven years, [2022] according to a new report.
..... The fiscally conservative think tank Garden State Initiative and the New Jersey State Veterans Chamber, of Commerce found that "a mere few" of the state's72 agencies with procurement power have awarded contracts to disabled-veteran-owned businesses as required. And just two of the agencies - the Economic Development Authority and the Turnpike Authority - have complied with the law, the report said.
..... The 2015 law says agencies must set aside 3% of their budgets for such businesses. It also requires each agency to annually report contract awards to disabled veteran businesses and efforts to promote the program. No agency has done that, according ton the report, which will be publicly released this week. [05/13/2022]
..... "A lot of people say thank you for your service,' but when it comes down to doing meaningful stuff that helps the veteran community, people are either unwilling or they don't know how best to implement a program like this," Jeff Cantor, chief executive officer of the veterans chamber, said in an interview. "It's been an uphill battle to get the sate to enforce this across all 72 agencies."
.... The Murphy administration said a challenge for agencies to comply with the set-aside is another state law that requires three or more certified disabled-veteran-owned businesses to bid on contracts, and "in many instances" there aren't that many who bid.
..... "As such, a major barrier to meeting the 3% set-aside requirement is the low volume of those registered vendors," Jennifer Sciortino, a Treasury Department spokeswoman, said in an email.
..... She added that Treasury is working with veterans' groups to boost outreach and lawmakers to consider potential remedies. One bill pending in the legislature could help: It proposes lowering the number from three to two.
.... New Jersey passed the bill with unanimous support and then-Governor Chris Christie signed it immediately into law in law in 2015. One of the prime sponsors, Army veteran and former Assemblyman Bob Andrzejcak, said at the time that the measure was an opportunity for the state to show disable veterans "It's the little thing that we can do for them."
..... But the state has "demonstrably lagged" behind other states in supporting disabled-veteran-owned businesses, the report said. New Jersey ranked 49th of the 50 states in supporting veteran businesses , according to the job search firm Zippia cited in the report.
.... New Jersey had 57,996 veteran-owned businesses in 2012, according to a 2017 report from the U.S. Small business Administration. Cantor said there are 255 certified disabled-veteran businesses have applied for or know about the certification needed for a state contract.
..... Disabled veterans run businesses of all types in New Jersey, Cantor said, from construction and cybersecurity to power-washing and photography. State contract amounts vary, but in rare cases, cantor said, he's sen awards upward of $1 million.
..... With so few agencies awarding contracts to disabled veterans in the last seven years, [2022] he said, "several hundred million dollars" has been "taken away from the veteran business community." Those contracts "would have had a profound effect," Cantor said.
..... By contrast, neighboring New York has a 6% contract set-aside, and that;s followed closely. Between September 30,2020, and October 1, 2021, the state awarded $182 million in contracts to more than 3,000 disable-veteran-owned businesses, according to that state's Office of General Services' annual report.
..... Cantor said the difference between the two states' outcomes is "command emphasis" on the law being followed Cantor, a Democratic former councilman in Marlboro who served on governor Phil Murphy's transition team, said he's spoken with the governor's office about the shortfalls in contracting with veterans.
..... Murphy's office deferred to the Treasury Department, which did not respond to a message seeking comment on the report's findings.
.... Murphy has signed laws in recent years to benefit veterans in other ways, such as exempting fully disabled veterans from paying property taxes and expanding education opportunities.
..... The report recommends five changes in an attempt to be fully compliant with the law by 2025.
* Create an executive task force and legislative subcommittee to support veteran business advocacy.
* Enforce or raise the 3% set-aside law.
* Pass legislation that makes contract bidding more competitive and broadens access to loans.
* Change policies to fast-track veteran-owned businesses, simplify the bidding process and create businesses, simply the bidding process and create incentives for diverse startup businesses, among others.
* Create a veteran economic development leadership team.
..... "Thousands of our neighbors who wore the uniform of the armed services deserve better," the report said: "It's time for Trenton to keep the promise made to the thousands of veteran-owned businesses by holding state agencies accountable for enforcing and reporting on state-procurements."

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