Sponsors (10)
The bill expands contracting access, formal recognition, and transparency for veteran‑owned small businesses—but the benefits come with higher administrative burdens, risks of reduced competition, and potential increased costs for taxpayers.
Veteran-owned small businesses (including veteran entrepreneurs and small-business owners) will gain substantially more federal contracting opportunities through a governmentwide 5% target, new eligibility for set-asides, and expanded sole‑source awards above the simplified acquisition threshold.
Federal reporting and transparency will improve as the SBA and agencies must report detailed percentages and dollar amounts for awards to veteran‑owned firms, enabling veterans and the public to track progress and hold agencies accountable.
Inclusion of veteran‑owned firms in mentor‑protege programs, scorecards, and industry determinations increases access to mentorship, capacity‑building, and equitable consideration in procurement programs, helping veterans compete for future contracts.
Taxpayers could face higher contract costs if expanding sole‑source awards, set‑asides, or other preference tools reduces competition across procurements.
The SBA and federal contracting offices will face meaningful additional administrative, compliance, and reporting burdens (database verification, scorecard updates, mentor‑protege tracking), increasing workload and program costs for agencies.
Expanded sole‑source authority and new preferences create a risk of uneven or improper application, leading to protests, legal challenges, or delays in procurements.
Based on analysis of 8 sections of legislative text.
Creates contracting preferences and sole‑source authorities for small businesses owned and controlled by veterans, and sets a 5% governmentwide procurement goal with expanded SBA reporting.
Official title: 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.
Introduced February 12, 2026 by Randy Fine · Last progress February 12, 2026
Creates a new statutory category and contracting authorities for small business concerns owned and controlled by veterans, including limited sole‑source awards above the simplified acquisition threshold, restricted‑competition set‑asides, and a requirement that firms and their veteran owners be listed in the SBA veteran database. Establishes a governmentwide procurement participation goal of at least 5% of prime and subcontract dollars for these firms and expands SBA reporting, scorecards, and program coverage to include the new veteran‑owned category. Companies that qualify as veteran‑owned small businesses gain new procurement preferences and sole‑source access under defined price ceilings and responsibility standards; the SBA must track and report detailed award categories and incorporate the new category across multiple Small Business Act programs and reporting mechanisms.