S. 3964: Contract Our Veterans Act of 2026

The Contract Our Veterans Act of 2026 aims to enhance the participation of small businesses owned and controlled by veterans in federal procurement contracts. The bill introduces several key provisions regarding contract awards and reporting requirements specifically for these veteran-owned small businesses.

1. Contracting Goals

The bill establishes a goal for federal agencies to award at least 5% of the total value of all prime contract and subcontract awards to small businesses owned and controlled by veterans each fiscal year. This aims to ensure that veteran-owned businesses have a clear and measurable target to strive for within federal contracting.

2. Contracting Officer Authority

The bill allows contracting officers to award contracts directly to veteran-owned businesses without undergoing competitive bidding procedures under certain conditions. These include:

• The veteran-owned business is deemed a responsible source for the contract.
• The expected price of the contract falls below specified amounts.
• The contracting officer believes that the award will be made at a fair and reasonable price that offers the best value to the government.

3. Restricted Competitions

If a contracting officer expects that at least two small businesses owned and controlled by veterans will submit offers, they must award contracts through competitions restricted to these businesses. This emphasizes the promotion of veteran-owned businesses when multiple eligible bidders are available.

4. Eligibility Requirements

Only small businesses that are listed in a specific database and whose veteran owners are also registered can be awarded contracts under this bill. This ensures that only qualified and legitimate businesses benefit from the procurement opportunities provided.

5. Reporting and Monitoring

The bill introduces enhanced reporting requirements:

• Annual reports will need to detail the number and total dollar value of contracts awarded to veteran-owned businesses, especially through sole source contracts and restricted competitions.
• It promotes transparency by requiring federal agencies to report on their compliance with the established goals for veteran participation.
• These reports will be consolidated with existing metrics to assess overall performance in including veteran businesses in federal procurement.

6. Additional Amendments to the Small Business Act

The bill amends various sections of the Small Business Act to:

• Integrate provisions about veteran-owned businesses into existing frameworks governing contracts.
• Ensure Business Opportunity Specialists and other relevant federal personnel consider veteran-owned businesses in their strategies.
• Enhance the role of mentorship programs specifically for veteran-owned businesses.

7. Limitations on Subcontracting

The bill modifies limitations on subcontracting, mandating that any prime contractor awarded a contract under this act must ensure that a defined portion of any work is performed by veteran-owned small businesses.

Relevant Companies

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