A 25-year flag contract was canceled costing many disables veterans their jobs.
A flag manufacturing company in Huntsville, Alabama lost its contract with the Veterans Administration as the result of a federal court ruling.
The ruling upheld a long-standing rule which says that veteran-owned companies must be given priority in awarding contracts. Phoenix, the flag manufacturing company that lost the contract as a result of the ruling, is part of the AbilityOne program.
AbilityOne nonprofits benefit from, “a 1938 law that allows nonprofits to be awarded certain federal contracts as long as they meet quality and pricing requirements, and 75 percent of the employees are people with disabilities,” according to WCTV.
Phoenix employs 791 people, 75 of which are veterans through its participation in the AbilityOne program. The company is asking Congress to step in, citing the fact that their company employs people with severe disabilities whom will likely have difficulty finding other employment.
During the 25-year contract with the Veterans Administration, Phoenix employees produced more than 2.1 million interment flags.
