Sponsors (2)
I'll give you the short version of this bill.
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Amends subsection (g) to add a governmentwide procurement goal for small business concerns owned and controlled by veterans (not less than 5% of total prime contract and subcontract awards) and to include veterans-owned small businesses in existing goal language; amends subsection (h)(2) reporting requirements to add detailed reporting categories for small business concerns owned and controlled by veterans and to include them alongside women-owned small businesses in reporting.
Inserts a new section 36B into the Small Business Act establishing rules permitting sole-source awards and competition restricted to small business concerns owned and controlled by veterans, defining 'contracting officer,' and conditioning eligibility on listing in the database described in section 36(f)(1).
Amends section 4(g)(1) and 4(h)(1) of the Small Business Act to insert references to a new section 36B alongside existing references to section 36 and to add 36B to listed cross-references.
Amends the consideration-of-offers provision to include section 36B as an additional statutory basis alongside section 36.
Amends the Best in class addendum to add 'small business concerns owned and controlled by veterans' as a new subclause (V) to the enumerated list.
Amends the Offices of Small and Disadvantaged Business Utilization cross-references to insert references to section 36B and adjust existing textual references.
Amends the Scorecard Program provisions to include reporting on awards to small business concerns owned and controlled by veterans, adding a new reporting subparagraph (E) in paragraph (4) showing percentage and total dollar amount of awards under section 36B.
Modifies mentor-protege reporting clauses by inserting a new clause (iii) for 'small business concerns owned and controlled by veterans' and redesignating existing clauses (iii)-(v) as (iv)-(vi).
Amends Limitations on subcontracting to add references to section 36B in subsection (a) and to add new subparagraphs in subsection (e) addressing contracts awarded under section 36B and subcontractors that are small business concerns owned and controlled by veterans.
Creates a new, governmentwide preference and reporting category for small businesses owned and controlled by veterans and requires federal agencies to prioritize, award, and report more contracts and subcontracts to those firms. It allows sole‑source awards and set‑aside competitions for eligible veteran‑owned small businesses when responsibility, pricing, and best‑value conditions are met, and sets a 5% annual goal for prime and subcontract dollars to go to these firms.
The bill significantly expands contracting opportunities, visibility, and capacity support for veteran‑owned small businesses, at the cost of shifting competition (and potential higher procurement prices), added administrative/reporting burdens, and new eligibility/compliance complexities.
Veteran-owned small businesses will gain materially greater access to federal contracting through required set‑asides, sole‑source authority above the simplified acquisition threshold, parity with other small‑business categories, and a governmentwide 5% contracting goal.
Veterans, taxpayers, and agencies will get improved transparency and data because veteran‑owned firms will be tracked in the government database, reflected on agency scorecards, and covered by standardized award and performance reporting.
Veteran-owned firms will have better capacity‑building and growth support through access to mentor‑protégé benefits, OSDBU outreach and business opportunity specialist support, and subcontracting protections similar to other small‑business programs.
Taxpayers and the public are better protected from fraud and overpayment because awards must meet fair‑and‑reasonable price/best‑value requirements and eligibility is limited to firms/owners listed in the government database.
Taxpayers and federal agencies face a meaningful risk of higher procurement costs and reduced competition if preferences or set‑asides result in awards to higher‑priced veteran firms.
Non‑veteran small businesses—including women‑owned and other disadvantaged firms—may lose opportunities as contracts are shifted to meet veteran set‑asides and the 5% goal.
Federal agencies, contracting officers, and taxpayers will incur additional administrative and reporting burdens (system updates, data collection, monitoring eligibility) that can increase costs and slow procurement timelines.
Veteran‑owned firms that are not yet registered in the required government database may be excluded from eligibility and lose contracting opportunities until they register.
Designates the Act's official short title as the "Contract Our Veterans Act of 2026."
Defines “contracting officer” by reference to the meaning in 41 U.S.C. § 2101.
Allows a contracting officer to award a sole-source (noncompetitive) contract to a small business owned and controlled by veterans for contracts above the simplified acquisition threshold when the firm is a responsible source, the total anticipated award price (including options) does not exceed the limits in 15 U.S.C. 36(c)(2), and the award can be made at a fair and reasonable price that offers best value to the United States.
Requires contracting officers to set aside contracts for competition restricted to small business concerns owned and controlled by veterans when the officer reasonably expects at least two such firms will submit offers and the award can be made at a fair and reasonable price that offers best value to the United States.
Conditions eligibility to receive contracts under this section on the small business concern and the veteran owner being listed in the database required by 15 U.S.C. 36(f)(1).
Who is affected and how:
Veterans and veteran‑owned small businesses: Direct beneficiaries. They gain a new, explicit procurement preference, access to sole‑source awards under certain conditions, set‑aside competition opportunities, and inclusion in governmentwide contracting goals and reports. This should increase federal contracting opportunities and visibility for eligible veteran entrepreneurs.
Small business owners and other socio‑economic groups: Non‑veteran small businesses may face increased competition for certain contracts. Other designated groups remain in law, but inclusion of veterans adds another category agencies must consider in planning and goals.
Government agencies and contracting officers: Must change procurement practices, verify eligibility against the required database, apply sole‑source and set‑aside rules for veteran‑owned firms, collect more detailed award data, and pursue the 5% target. This will require system updates, training, and administrative work.
Small Business Administration: Must update regulations, scorecards, reporting structures, outreach, and mentor‑protégé programs to incorporate the new category and ensure consistent implementation across agencies.
Contractors and subcontractors: Prime contractors will see veteran‑owned small businesses counted for prime and subcontracting goals; subcontracting plans and limits may need adjustment.
Practical effects and tradeoffs:
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Introduced March 3, 2026 by Timothy Patrick Sheehy · Last progress March 3, 2026
Expand sections to see detailed analysis
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Introduced in Senate