Bill Summary
The **Contract Our Veterans Act of 2026** aims to enhance the participation of small businesses owned and controlled by veterans in federal procurement contracts. Key features of the legislation include:
1. **Establishing Goals**: The Act amends the Small Business Act to set a governmentwide goal of at least 5% for veteran-owned small businesses in total prime contract and subcontract awards each fiscal year.
2. **Sole Source and Restricted Competitions**: Contracting officers are allowed to award contracts without competitive bidding to veteran-owned small businesses under certain conditions, such as the anticipated award price being below specified thresholds and the assurance of fair pricing. Additionally, contracts can be awarded through competitions restricted to veteran-owned businesses when there is a reasonable expectation of multiple bids.
3. **Inclusion in Reporting**: The Act requires the inclusion of data on contracts awarded to veteran-owned small businesses in various government reports, enhancing visibility and accountability in achieving the set goals.
4. **Supporting Infrastructure**: The legislation strengthens the support mechanisms for veteran-owned businesses by involving business opportunity specialists and enhancing reporting requirements for agencies to ensure compliance with new goals.
This legislation seeks to empower veteran entrepreneurs and improve their access to government contracting opportunities, recognizing their service and contributions.
Possible Impacts
The "Contract Our Veterans Act of 2026" aims to enhance the participation of small businesses owned and controlled by veterans in federal procurement contracts. Here are three examples of how this legislation could affect people:
1. **Increased Opportunities for Veteran Business Owners**: The legislation establishes governmentwide goals for participation by small business concerns owned and controlled by veterans. This means that more veteran-owned businesses could gain access to federal contracts, leading to increased economic opportunities for these entrepreneurs. As a result, veteran business owners may experience growth in their businesses, job creation, and improved financial stability.
2. **Job Creation and Economic Growth**: By facilitating more contracts for veteran-owned businesses, the legislation could lead to job creation within these companies. As veteran-owned businesses expand to fulfill government contracts, they may need to hire more employees, providing job opportunities for veterans and civilians alike. This could contribute to local economic growth, particularly in communities with high populations of veterans.
3. **Enhanced Support Structures and Resources**: The amendment to the Small Business Act includes provisions for Business Opportunity Specialists and increased visibility for veteran-owned businesses in government procurement processes. This could lead to better support and resources for veterans looking to start or grow their businesses, including mentorship programs and access to information on navigating federal contracts. As a result, veterans may feel more empowered to pursue entrepreneurship, knowing that there are systems in place to assist them.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7534 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7534
To amend the Small Business Act to establish a goal for participation
by small business concerns owned and controlled by veterans in
procurement contracts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 12, 2026
Mr. Fine (for himself, Mr. Van Orden, Mr. Donalds, and Mr. Hunt)
introduced the following bill; which was referred to the Committee on
Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to establish a goal for participation
by small business concerns owned and controlled by veterans in
procurement contracts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Contract Our Veterans Act of 2026''.
SEC. 2. AGENCY CONTRACTING GOALS FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY VETERANS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 36A the following new section:
``SEC. 36B. SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS.
``(a) Contracting Officer Defined.--In this section, the term
`contracting officer' has the meaning given such term in section 2101
of title 41, United States Code.
``(b) Sole Source Contracts for Contracts Above Simplified
Acquisition Threshold.--A contracting officer may award a contract to a
small business concern owned and controlled by veterans using
procedures other than competitive procedures if--
``(1) such concern is determined to be a responsible source
with respect to performance of such contract;
``(2) the anticipated award price of the contract
(including options) will not exceed the amounts specified in
section 36(c)(2) of the Small Business Act (15 U.S.C.
657f(c)(2)); and
``(3) the contracting officer determines the contract award
can be made at a fair and reasonable price that offers best
value to the United States.
``(c) Restricted Competition.--A contracting officer shall award
contracts on the basis of competition restricted to small business
concerns owned and controlled by veterans if the contracting officer
has a reasonable expectation that two or more small business concerns
owned and controlled by veterans will submit offers and that the award
can be made at a fair and reasonable price that offers best value to
the United States.
``(d) Eligibility of Small Business Concerns.--A small business
concern may be awarded a contract under this section only if the small
business concern and the veteran owner of the small business concern
are listed in the database described in section 36(f)(1) of the Small
Business Act (15 U.S.C. 657f(f)(1)).''.
SEC. 3. GOVERNMENTWIDE GOALS AND REPORTING REQUIREMENTS FOR SMALL
BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS.
(a) Governmentwide Goals.--Section 15(g) of the Small Business Act
(15 U.S.C. 644(g)) is amended--
(1) by striking ``and small business concerns owned and
controlled by women'' and inserting ``, small business concerns
owned and controlled by women, and small business concerns
owned and controlled by veterans'' each place it appears;
(2) in paragraph (1)(A), by adding at the end the following
new clause:
``(vi) The Governmentwide goal for
participation by small business concerns owned
and controlled by veterans shall be established
at not less than 5 percent of the total value
of all prime contract and subcontract awards
for each fiscal year.''; and
(3) in paragraph (2)(A), by striking ``and by small
business concerns owned and controlled by women'' and inserting
``by small business concerns owned and controlled by women, and
by small business concerns owned and controlled by veterans,''.
(b) Reporting on Goals.--Section 15(h)(2) of the Small Business Act
(15 U.S.C. 644(h)(2)) is amended--
(1) in subparagraph (E)--
(A) in clauses (i)(VI), (ii)(VII), (iii)(VIII), and
(iv)(VIII), by inserting ``small business concerns
owned and controlled by veterans'' after ``small
business concerns owned and controlled by women,'';
(B) in clause (vii)(VI), by striking ``and'' at the
end;
(C) in clause (viii)(X), by inserting ``small
business concerns owned and controlled by veterans''
after ``small business concerns owned and controlled by
socially and economically disadvantaged individuals,'';
and
(D) by adding at the end the following new clause:
``(ix) small business concerns owned and
controlled by veterans--
``(I) in the aggregate;
``(II) through sole source
contracts;
``(III) through competitions
restricted to small business concerns;
``(IV) through competitions
restricted to small business concerns
owned and controlled by veterans;
``(V) through unrestricted
competition;
``(VI) that were purchased by
another entity after the initial
contract was awarded and as a result of
the purchase, would no longer be deemed
to be small business concerns owned and
controlled by veterans for purposes of
the initial contract; and
``(VII) that were awarded using a
procurement method that restricted
competition to small business concerns
owned and controlled by service-
disabled veterans, qualified HUBZone
small business concerns, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, small business concerns
owned and controlled by women, or a
subset of any such concerns; and''; and
(2) in subparagraph (F), by striking ``and small business
concerns owned and controlled by women'' and inserting ``,
small business concerns owned and controlled by women, and
small business concerns owned and controlled by veterans''.
SEC. 4. PARTICIPATION IN FEDERAL PROCUREMENT BY SMALL BUSINESS CONCERNS
OWNED AND CONTROLLED BY VETERANS.
(a) Business Opportunity Specialists.--Section 4(g)(1) of the Small
Business Act (15 U.S.C. 633(g)(1))--
(1) in the matter preceding subparagraph (A), by striking
``and 36'' and inserting ``36, and 36B'';
(2) in subparagraph (A)(v), by striking ``36, and'' and
inserting ``36, 36B, and''; and
(3) in subparagraph (D), by striking ``36, or'' and
inserting ``36, 36B, or''.
(b) Commercial Market Representative.--Section 4(h)(1) of the Small
Business Act (15 U.S.C. 633(g)(1)) in the matter preceding subparagraph
(A), by striking ``and 36'' and inserting ``36, and 36B''.
(c) Consideration of Offers.--Section 8(a)(17)(A) of the Small
Business Act (15 U.S.C. 637(a)(17)(A)) is amended by striking ``or
section 36'' and inserting ``section 36, or section 36B''.
(d) Best in Class Addendum.--Section 15(h)(4)(A)(ii) of the Small
Business Act (15 U.S.C. 644(h)(4)(A)(ii)) is amended--
(1) in subclause (III), by striking ``and'' at the end;
(2) in subclause (IV), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subclause:
``(V) small business concerns owned
and controlled by veterans.''.
(e) Offices of Small and Disadvantaged Business Utilization.--
Section 15(k) of the Small Business Act (15 U.S.C. 644(k)) is amended--
(1) in the matter preceding paragraph (1), by striking ``or
44'' and inserting ``36B, or 44'';
(2) by striking ``and 44'' and inserting ``36B, and 44''
each place it appears; and
(3) by striking ``or 36'' and inserting ``36, or 36B'' each
place it appears.
(f) Scorecard Program.--Section 15(y) of the Small Business Act (15
U.S.C. 644(y)) is amended--
(1) by striking ``and small business concerns owned and
controlled by women'' and inserting ``, small business concerns
owned and controlled by women, and small business concerns
owned and controlled by veterans'' each place it appears; and
(2) in paragraph (4), by adding at the end the following
new subparagraph:
``(E) The number (expressed as a percentage) and
total dollar amount of awards made to small business
concerns owned and controlled by veterans through sole
source contracts and competitions restricted to small
business concerns owned and controlled by veterans
under section 36B.''.
(g) Mentor-Protege Reporting.--Section 45(c)(1)(B) of the Small
Business Act (15 U.S.C. 657r(c)(1)(B)) is amended--
(1) by redesignating clauses (iii) through (v) as clauses
(iv) through (vi), respectively; and
(2) by inserting after clause (ii) the following new
clause:
``(iii) small business concerns owned and
controlled by veterans;''.
(h) Limitations on Subcontracting.--Section 46 of the Small
Business Act (15 U.S.C. 657s) is amended--
(1) in subsection (a), by striking ``or 36'' and inserting
``36, or 36B''; and
(2) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (D), by striking ``or''
at the end;
(ii) in subparagraph (E), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following
new subparagraph:
``(F) with respect to a contract awarded under
section 36B, is a small business concern owned and
controlled by veterans.''; and
(B) in paragraph (2)--
(i) in subparagraph (E), by striking ``or''
at the end;
(ii) in subparagraph (F), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following
new subparagraph:
``(G) if a subcontractor for a small business
concern owned and controlled by veterans, is such a
concern.''.
<all>