In a shocking turn of events, Robert Betters, a former Air Force logistician, experienced a drastic drop in business revenue—losing 50% in less than a week—after the Department of Veterans Affairs (VA) canceled multiple contracts with his company, RB Consulting, Inc.. This abrupt decision forced him to lay off 45 employees, including fellow veterans, highlighting the precarious nature of small businesses reliant on federal contracts.
With a strong foundation in logistics training from his time in the Air Force, Betters established RB Consulting, Inc., a firm specializing in supply chain and information technology management that contracts with the VA and other federal agencies. Just last week, the VA announced the cancellation of seven contracts from RB Consulting as part of a broader initiative to cut $2 billion in spending, spearheaded by the new VA Secretary, Doug Collins.
Despite the challenges he faces, Betters remains understanding of the government's direction regarding budget cuts. “I don’t fault the government for anything,” he told Task & Purpose. “I just worry about my employees.” As the president of the National Veteran Small Business Coalition (NVSBC), Betters advocates for veteran entrepreneurs and is deeply concerned about the job market for those affected by these layoffs.
Secretary Collins has stated that funds from canceled contracts will be redirected to veteran health care and benefits. However, a concrete plan detailing how these spending changes will be implemented has yet to be revealed. Betters noted that his company's work was aligned with improving VA services for veterans, including developing surveys for veteran disability evaluations to enhance the claims process and optimizing VA hospital supply chains for medications and medical products.
Scott Jensen, executive director of the NVSBC, criticized the VA's decision-making as neglectful, emphasizing that it disregards the “human beings behind all of this.” He highlighted the struggles faced by veteran small business owners who are unfairly labeled as “pariahs” for adhering to the federal contracting process. “They followed the process. They either applied for a job, or the federal government solicited for someone to fulfill the requirements of a contract,” Jensen stated.
In a video message announcing the cuts, Collins remarked that much of the canceled funding was allocated to contractors for tasks like creating PowerPoint slides and providing executive support. He encouraged individuals to learn these skills independently rather than relying on costly consultants. Many of the canceled contracts fell under the “professional services” category, which often entails specialized expertise not available within federal agencies.
Betters explained that some of his contracts involved critical IT tasks such as analyzing data and transitioning the VA's legacy systems into modernized formats. “If the goal is to implement something and sustain it, then that’s what contracts are for,” he said. This work is essential, as it often requires specialized skills that government employees may not possess.
In fiscal year 2025, the VA has set a goal to allocate 5% of its contracts to Service-Disabled Veteran Owned Small Businesses (SDVOSBs). However, Jensen pointed out that many veteran-owned firms have a significant portion of their income tied to the VA, making it difficult to diversify. “A lesson learned is to make sure you have a diversified portfolio, but that’s very hard when 74% of the money coming to veteran-owned businesses comes out of the VA,” he noted.
The experience of RB Consulting, Inc. serves as a cautionary tale for other veteran-owned businesses facing similar challenges. With the VA announcing the cancellation of an additional 585 contracts, many are left wondering about the future of their enterprises. Jensen expressed concern over the anxiety among veteran business owners, especially given that VA officials have indicated this is just the beginning of a comprehensive audit.
For veteran entrepreneurs like Betters, these tumultuous times underscore the need for clarity and communication from government leadership. “What we’d really like is just to be able to interact with leadership and understand the priorities,” he stated, emphasizing the importance of transparency in navigating these challenging circumstances.
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