Scott Denniston, perhaps the most high profile and respected advocate for vetrepreneurs, has joined NaVOBA as its director of programs. Denniston retired Jan. 3 this year from his position as the director of both the Office of Small and Disadvantaged Business Utilization (OSDBU) and the Center for Veterans Enterprise (CVE) for the Department of Veterans Affairs (VA), ending a career of nearly 35 years in government, the last 21 of which were spent championing opportunities for veteran business owners.
"NaVOBA is the leading veteran small business organization and I want to be part of that," Denniston said. "There’s so much more that we can do to help veterans who want to start small businesses and I think a lot of that can be done by veterans themselves. And, I can do that better from outside the government than from ‘inside the walls,’ so to speak."
NaVOBA President Chris Hale said he is thrilled to have such a respected and distinguished plank owner of the veteran-owned business (VOB) movement join the NaVOBA team. As director of programs, Denniston will amplify NaVOBA’s presence in the government sector while building on the success already established with corporate America.
"Everybody in the veteran business community knows Scott," Hale said. "Corporate America reveres him, government officials respect him and veteran business owners have long viewed him as a straight-talking ally who, like them, served in uniform. CVE is a great organization that he built from the ground up. Given how much he was able to accomplish for veteran-owned businesses while working in government, his potential outside of government is staggering."
In his role with NaVOBA, Denniston will put his influence among an extensive network of government and corporate officials to work in creating more business opportunities for veterans, Hale said.
"Scott coming on board is a major step forward for NaVOBA and vetrepreneurs," NaVOBA National Spokesman Rocky Bleier said. "His level of experience is unparalleled and his addition solidifies NaVOBA as the leader of the veteran-owned business movement."
The Journey Begins
Denniston began his government career as a U.S. Army personnel specialist in the Pentagon from 1970 to 1973, leaving with the rank of sergeant (E-5). During his time in the Army, he attended graduate school and earned a master of science degree in government from Southern Illinois University to build on the bachelor of arts degree in economics he earned from Waynesburg College in Waynesburg, Pa. Denniston also attended law school at Duquesne University in Pittsburgh, but left prior to graduation when he was drafted to serve in the Army.
Denniston also became more familiar with the functioning of the federal government by working as an intern on Capitol Hill in the office of U.S. Rep. Peter Frelinghuysen, who represented New Jersey in Congress from 1953 to 1975. Denniston then started with the U.S. Customs Service in 1974 as a management analyst. While he was working on his master’s degree, Denniston met Wynn Smith, the district director for the Small Business Administration (SBA), and this relationship ultimately landed him a position with the SBA.
"In my time at SBA I worked in the headquarters, I worked in regional offices in Dallas and Seattle and I worked in district offices in Washington, D.C., and in every program office that the SBA has," Denniston said. "So that kind of gave me a broad background of the whole small business world."
During his tenure with the SBA from 1975 to 1987, Denniston managed the Breakout Procurement Center Representative Program, which assigns representatives to major procurement centers within the Department of Defense to analyze weapon system contracts. This program saved the federal government about $100 million annually by introducing competition into the former sole-source acquisition program.
The VOB Movement
"Scott has led the movement since its inception," said Heidi Gerding, CEO of Heitech Industries and an honorable mention for NaVOBA’s Vetrepreneur of the Year® award for 2009. "He has taken on a leadership role in the federal government that no other has been able or willing to do. His leadership has resulted in veterans being recognized for their contributions, not only while serving their country through their military service, but also again by serving their country as vital leaders in the economy and the labor market through job creation."
Bob Mulz, founder and chairman of the Elite SDVOB Network, said Denniston was essential to his organization’s growth and is excited about Denniston continuing to fight for vetrepreneurs with NaVOBA after his government career.
"His experience is invaluable," Mulz said. "A lot of people can go from one job to another, but you can’t replace what they have in their mind and their spirit. His attitudes haven’t changed. These are America’s heroes and how we treat them is our legacy. And Scott is extremely dedicated."
In October 1987, Denniston was appointed the director of the VA’s Office of Small and Disadvantaged Business Utilization. At the time, veteran-owned businesses "weren’t even on the radar screen" in terms of small business programs, he said. While in this position, Denniston worked under Anthony J. Principi, who was the deputy secretary at the VA, the department’s second highest position. Principi also served as the chairman for the Congressional Commission on Service Members and Veterans Transition Assistance. In 1998, Principi asked Denniston to serve on the Transition Commission providing recommendations about increasing support and enhancing business opportunities for veterans.
"That was, in my opinion, the foundation of this entire movement," Denniston said. "After the Transition Commission, we started working with Congress to write the laws that have gotten the veterans programs where they are today."
Many of the recommendations contained in the final report to Congress from the Transition Commission were incorporated into Public Law 106-50 (the Veteran Entrepreneurship and Small Business Development Act of 1999) and Public Law 108-183 (the Veterans Benefits Act of 2003).
For example, PL 106-50 led to the creation of the Center for Veterans Enterprise (CVE) in 2000, an organization committed to providing support for and creating opportunities for veterans interested in entrepreneurship. In 2005, Denniston received the Federal 100 Award from Federal Computer Week for his efforts in creating the Vendor Information Pages database of veteran-owned businesses and the VetBiz Web site.The Movement
Gets Moving
John Lopez, founder of the Association for Service Disabled Veterans (ASDV), and one of the founding fathers of the service-disabled, veteran-owned business (SDVOB) movement has known Denniston for more than 20 years. Lopez met Denniston in 1987 when Lopez was an officer with the Disabled American Veterans (DAV). Lopez tried to get the VA to supply the assistance the department was charged to provide by a clause in the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, which stated, in part, that the service-disabled veterans who had completed a vocational rehabilitation program for self-employment in a small business enterprise would be assisted "in securing, as appropriate, a loan" for equipment and other expenses to start their own business.
"The VA has always had the instruction under the vocational rehabilitation code," Lopez said. "I confronted the members of Congress and asked why they weren’t doing anything about it. They said ‘you better go over to the VA.’ And that’s when I met Scott. He got the dirty end of the stick."
According to Lopez, Denniston informed him that there was no funding for the program. "No appropriation, no program," said Lopez, who then went back home to California and advocated the state’s passage of the Disabled Veteran Enterprise Program, which served as a blueprint for the federal law passed a decade later. Lopez worked closely with Denniston on numerous occasions over the next two decades and said his addition to NaVOBA will only help vetrepreneurs, especially in terms of government relations.
"He was always honest and frank and always made himself available," Lopez said. "He was always the troubadour. He totally understands the government. He knows where the bodies are buried. I think the fact that he’s out of government now is a really good thing because he knows the Hill."
NaVOBA’s Future With Denniston
VET-Force Chairman Rick Weidman, another forefather of the veteran business movement, discussed the impact Denniston has had for vetrepreneurs and said his addition will help NaVOBA in ways it "hadn’t envisioned before."
"It’s an incredible boost for NaVOBA," Weidman said. "Scott’s actions in terms of advocacy for veterans have been invaluable. He has been an absolutely key player inside of government. He is a person who will push hard and is very creative and is very determined to maximize resources in order to get the largest impact possible."
Denniston also has been pivotal in ensuring the VA does as much business as possible with VOBs. The VA is the only federal government agency that has consistently met the 3 percent goal of awarding contracts to SDVOBs since PL 106-50 took effect. In fact, Denniston said the VA spent in excess of 15 percent of its $13.5 billion procurement budget with VOBs in 2008, 12 percent of which was with SDVOBs, compared to the 1 percent average of all other federal agencies.
Denniston is active in the National Contract Management Association (NCMA), the National Defense Industry Association (NDIA) and is the former chairman of the Small Business Committee of the Armed Forces Communications and Electronics Association (AFCEA). Denniston also established the annual Secretary of Veterans Affairs Award for contracting activity accomplishments with veteran-owned businesses.
"Scott, typically for him, had a plan that I believe the VA is likely to implement so that things would not stop or fall apart after his departure," Weidman said. "We’re going to have to struggle to find someone as determined, if you will, who also has the managerial skills to run both the OSDBU and at the same time run the Center for Veterans Enterprise."
Denniston said he expects his departure will not adversely affect the accomplishments made by the VA. "We have an incredible staff at the Center for Veterans Enterprise and I think they will continue the tradition that we’ve established," Denniston said.
Denniston said his chief mission with NaVOBA is to enhance its success in corporate America while simultaneously offering an instantly more salient presence in the government sector.
"NaVOBA has an excellent reputation in the commercial world, by commercial I mean outside the government," Denniston said. "And I think what I bring is an expertise and a reputation within the government sector. Bringing these two together can be very beneficial for the veteran community."
Steve Humphrey, supplier diversity manager for Volvo Trucks North America/Mack Trucks Inc., said Denniston’s addition will strengthen NaVOBA’s position as the national voice of the veteran business movement.
Marcea Weiss, corporate membership director and veteran business advocate for NaVOBA, said she is excited to have a person with Denniston’s experience to build on NaVOBA’s success with corporate America.
"Scott’s experience and leadership will really help us accelerate the work we’re doing for vetrepreneurs," Weiss said. "His addition will enable us to capitalize on the accomplishments we’ve made with corporate America."
"Scott Denniston has always been a high profile champion of the veterans movement," Humphrey said. "He is well respected and his level of passion and energy goes without saying. Scott will be a great asset and will make a difference. We in corporate America’s supplier diversity initiatives are looking for diverse talent, including veterans to partner with and help us resolve problems. NaVOBA has a great opportunity to become a leader and perhaps the most prominent ‘one voice’ for veterans."
Going for the Government
"He’s an easily recognized and highly respected advocate for veterans inside the government sector," said Mimi Lohm, veteran business advocate for NaVOBA. "Having Scott o
n board is really going to enhance our ability to assist vetrepreneurs in doing business with the government."
"The government sector will continue to serve as the foundation for the veteran business community because of its ability to set mandates," Denniston said. "Within the government marketplace, the veteran movement and the veteran goals are the ones that are getting the most attention. I firmly believe that they should. I think veterans should be front and center of everything that we do in the government. And I think that veterans should be front and center of everything that’s done outside of the government in the commercial world."
Denniston said new legislation at the federal level isn’t quite as important as enforcing the legislation that is already in place, with the exception of a program for all veteran-owned businesses, instead of exclusively service-disabled, veteran-owned businesses.
"I’m not sure that we need to have additional legislation as much as we need to have accountability," Denniston said. "The one thing that the new administration could do to help veterans is to reinvigorate Executive Order 13360 and let the government know that veterans are important to the new president and his administration."
Executive Order 13360 was originally established in October 2004 by President George W. Bush and established guidelines for accountability in government agencies to reach the 3 percent goal for SDVOBs set by PL 106-50. According to Denniston, additional future opportunities that must be explored by vetrepreneurs in terms of government contracts reside with state and local governments.
"There’s an incredibly untapped market at the state and local level," Denniston said. "It’s at least double the federal marketplace. I would love to see programs in every state for vetrepreneurs."
NaVOBA has started a program that tracks progress of state laws favorable to veteran-owned businesses, which it plans to make public in the July/August issue of Vetrepreneur magazine and on its Web site at www.navoba.com.
"Simply publicizing a comprehensive list of vetrepreneur legislation in all states will create awareness and change," Hale said. "Then Scott, our other leadership, other advocates and our own membership will have a basis to encourage their state legislators to create state opportunities. Which state will want to be the one that isn’t doing right by veterans? This is how we will create opportunities at the state level."
"In order for the veteran small business community to continue to prosper, the community itself needs to come together and push the agenda," Denniston said. "That’s one of my goals. To unite all the groups and find some common ground to push a common agenda."
"Those working in government and corporate purchasing circles have long said that the veteran business community is fragmented," Hale said. And until they start speaking with a united voice, creation of opportunities will languish. They’re right. And these things take time. But we are all working to change that. Scott’s addition to NaVOBA should serve to eliminate some of that infighting that is so detrimental to everyone’s efforts."
Gerding agreed and said Denniston’s addition will help galvanize the VOB movement.
"NaVOBA can continue to recruit highly respected and well-known people, like Scott Denniston, into the organization to help get the word out, effectively and credibly, about what veterans offer to the economic success of this country," Gerding said. "As a business owner, I am comforted that people like Scott and organizations such as NaVOBA make it their mission to promote veteran-owned businesses. We, as small business owners, get mired in the day-to-day operations of our business or looking for help at continuing to promote our capabilities and service to our country."
Committed to Vetrepreneurs
"I’m at a point in my career and in my life where I can sit back and be a beach bum and totally retire," Denniston said, "but I have a real commitment and drive for this movement." He said vetrepreneurs inspire and excite him with their enthusiasm and the quality.
"They’re people that I love being associated with and they’re people that keep me challenged and keep me motivated and keep me on my toes," Denniston said. "They’re very demanding but at the same time are so appreciative of the efforts we have made on their behalf."
"He has been a role model who deserves whatever successes may befall him now and in the future, and I am personally honored to have him continuing his support of veteran-owned businesses through his relationship with NaVOBA," Gerding said. "His decision to join NaVOBA affirms my opinion that he is a man of substance and truly believes in what he has committed the last 30 plus years of life to – helping veterans succeed."
Denniston said the outlook is encouraging for vetrepreneurs and he has big plans for the future.
"I’m excited about starting this new journey, or as I tell people a new chapter in the book," Denniston said. "I think we can do some great things over the next few years and I’m looking forward to playing a part."