FAIR Vets Act

Bill Number

H.R. 6648

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-12-11: Referred to the House Committee on Small Business.

Last Updated

2026-03-10T08:05:46Z

AI-Generated Summary

Purpose

The FAIR Vets Act (H.R. 6648) aims to update federal contracting rules to make it easier for small businesses owned by service-disabled veterans to secure government contracts without competition. This supports veteran entrepreneurship by increasing the dollar limits for these "sole-source" awards, where the government can directly award a contract to a qualified business without bidding from others.

Key Provisions

• Short Title: The bill is officially named the "Federal Acquisition Improvement and Reform Vets Act" or "FAIR Vets Act."
• Amendments to the Small Business Act: Modifies Section 36 (15 U.S.C. 657f), which governs sole-source contracts for service-disabled veteran-owned small business concerns (SDVOSBs—small businesses at least 51% owned and controlled by veterans with service-connected disabilities).
• Removes the phrase "(including options)" from the rule on contract value calculations, simplifying how contract extensions are counted.
• Raises the threshold for manufacturing contracts from $7 million to $10 million.
• Raises the threshold for non-manufacturing contracts from $3 million to $8 million.
• Implementation Timeline: Within 180 days of enactment, the Federal Acquisition Regulatory Council must update the Federal Acquisition Regulation (FAR, the main rulebook for federal purchases, including section 19.1406), and the Secretary of Defense must update the Defense Federal Acquisition Regulation Supplement (DFARS, rules specific to the Department of Defense).
• Effective Date: Changes apply to new contract solicitations (requests for bids) issued 180 days after enactment.

Significant Changes to Existing Law

• Increases the maximum value for sole-source contracts awarded to SDVOSBs, allowing these businesses to handle larger projects without full competition.
• Simplifies contract valuation by excluding options (future extensions) from the threshold calculation, potentially broadening eligibility.
• These updates modernize outdated dollar limits from prior law, aligning them with inflation and current economic conditions.

Potential Impacts

• On Government Agencies: Federal agencies, including the Department of Defense, will need to revise procurement processes and training to comply with higher thresholds, potentially speeding up awards to SDVOSBs but requiring more oversight to ensure eligibility.
• On Citizens: Benefits service-disabled veterans by expanding business opportunities, which could improve their economic stability and access to federal contracts (worth billions annually). It may indirectly support small business growth and job creation in veteran communities.
• On International Relations: Minimal direct impact, as the bill focuses on domestic small business preferences in U.S. government contracting; it does not alter rules for foreign firms.

Main Stakeholders Affected

• Service-Disabled Veteran-Owned Small Businesses (SDVOSBs): Primary beneficiaries, gaining access to larger non-competitive contracts.
• Federal Agencies and Procurement Officials: Must implement changes, affecting how they award contracts (e.g., via the Small Business Administration, which certifies SDVOSBs).
• Veterans and Veteran Advocacy Groups: Supported by the bill's sponsors, these groups may see increased federal support for veteran-owned enterprises.
• General Taxpayers and Small Businesses: Could lead to more efficient use of federal funds through targeted awards, though non-veteran small businesses might face slightly reduced competition in certain areas.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens existing set-aside programs under the Small Business Act, ensuring compliance with certification requirements to prevent fraud. No major challenges to enforceability are evident, as it builds on established veteran preferences.
• Constitutional: Aligns with Congress's authority to regulate federal spending and support veterans (under Article I and precedents like affirmative action for disadvantaged groups), without raising equal protection concerns since it targets a specific, congressionally recognized group.
• Political: Reflects bipartisan support (introduced by representatives from both parties) for veteran priorities, potentially influencing future small business or procurement reforms. It promotes equity in federal contracting without overhauling broader competition laws.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Kiggans, Jennifer A. [R-VA-2]

Cosponsors (7)

Rep. Neguse, Joe [D-CO-2], Rep. Bacon, Don [R-NE-2], Rep. Gillen, Laura [D-NY-4], Rep. Bergman, Jack [R-MI-1], Rep. Nunn, Zachary [R-IA-3], Rep. Harrigan, Pat [R-NC-10], Rep. Jackson, Ronny [R-TX-13]

Recent Actions

• 2025-12-11: Referred to the House Committee on Small Business.
• 2025-12-11: Introduced in House
• 2025-12-11: Introduced in House

Bill Versions

• Federal Acquisition Improvement and Reform Vets Act — issued 2025-12-11 — PDF (2 pages)