Contract Our Veterans Act of 2026
- Bill Number
- H.R. 7534
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-02-12: Referred to the House Committee on Small Business.
- Last Updated
- 2026-05-20T08:08:33Z
AI-Generated Summary
Purpose
The "Contract Our Veterans Act of 2026" (H.R. 7534) aims to increase opportunities for small businesses owned and controlled by veterans in federal procurement contracts. It amends the Small Business Act to establish specific goals, contracting procedures, and reporting requirements to promote veteran participation in government contracts, recognizing veterans' service and entrepreneurial potential.
Key Provisions
- New Contracting Procedures (Section 36B): Adds a new section to the Small Business Act allowing:
- Sole-source contracts (awards without competition) for veteran-owned small businesses above the simplified acquisition threshold (a dollar limit for smaller purchases, currently around $250,000 for most contracts) if the business is responsible, the price is fair and reasonable, and it provides best value to the government.
- Restricted competition (limited to veteran-owned small businesses) when at least two such businesses are expected to bid, ensuring fair pricing and value.
- Eligibility requires the business and its veteran owner to be listed in the SBA's Veteran Small Business Certification database.
- Governmentwide Goals (Section 15(g)): Sets a minimum 5% goal for the total value of prime contracts (direct awards to businesses) and subcontracts (awards to subcontractors) going to veteran-owned small businesses each fiscal year. This integrates veteran-owned businesses alongside existing goals for other small business categories, like those owned by women or socially disadvantaged individuals.
- Reporting Requirements (Section 15(h)(2)): Expands annual reports to Congress to include detailed data on veteran-owned small business awards, broken down by:
- Aggregate totals.
- Sole-source awards.
- Restricted competitions.
- Unrestricted competitions.
- Cases where a business is acquired and no longer qualifies as veteran-owned.
- Awards from other restricted programs (e.g., service-disabled veteran-owned or women-owned set-asides).
- Integration into SBA Programs: Updates various sections of the Small Business Act to include veteran-owned businesses in:
- Roles for Business Opportunity Specialists and Commercial Market Representatives (SBA staff who help match businesses with contracts).
- Evaluation of offers in the 8(a) program (a set-aside for disadvantaged businesses).
- "Best in Class" procurement addendums (guidelines for high-performing agencies).
- Offices of Small and Disadvantaged Business Utilization (agency offices promoting small business participation).
- Scorecard program (measures agency performance on small business goals, now including veteran-specific metrics like sole-source and restricted awards).
- Mentor-protégé program reporting (where larger firms mentor small businesses).
- Limitations on subcontracting (rules ensuring small businesses perform a certain percentage of work, now applying to veteran-owned firms).
Significant Changes to Existing Law
- Introduces the first standalone governmentwide goal (5%) specifically for veteran-owned small businesses, building on but separate from the existing 3% goal for service-disabled veteran-owned businesses.
- Creates new sole-source and restricted competition authorities tailored to veteran-owned businesses, similar to those for other groups like women-owned or HUBZone (Historically Underutilized Business Zone) businesses, but without the prior service-disability requirement.
- Enhances transparency by adding veteran-owned categories to all major reporting, scorecard, and program integration mechanisms, which previously focused more on other small business types.
- Expands subcontracting limits and eligibility checks to ensure veteran-owned businesses maintain control and perform substantial work, preventing misuse of preferences.
Potential Impacts
- On Government Agencies: Agencies must track and meet the 5% goal, potentially shifting procurement strategies toward more set-asides and reporting. This could increase administrative workload but encourage efficient use of veteran expertise in areas like defense and logistics.
- On Citizens and Businesses: Veteran entrepreneurs gain easier access to federal contracts (worth billions annually), potentially boosting job creation, economic stability for veterans, and small business growth. Non-veteran small businesses may face slightly more competition in restricted bids.
- On International Relations: Minimal direct impact, as the bill focuses on domestic U.S. procurement; however, it could indirectly support U.S. firms with veteran leadership in global supply chains.
Main Stakeholders Affected
- Veteran-Owned Small Businesses: Primary beneficiaries, with expanded access to contracts and certification support.
- Federal Agencies (e.g., Department of Defense, SBA): Responsible for implementing goals, reporting, and adjusting procurement processes.
- Small Business Administration (SBA): Oversees certification, training, and enforcement, with added duties in promotion and tracking.
- Other Small Business Owners (e.g., women-owned, disadvantaged, or HUBZone firms): May experience indirect effects through shared or competing set-aside opportunities.
- Taxpayers and Congress: Benefit from targeted spending on veteran-supported businesses, with enhanced oversight via reports.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with the Small Business Act's framework for set-asides, promoting fair competition while requiring "responsible source" and "best value" checks to avoid waste. It strengthens enforcement through database verification, reducing fraud risks in certifications.
- Constitutional: Supports Congress's authority under the Commerce Clause to regulate federal spending and promote veteran welfare (as in Article I benefits for military service), without infringing on equal protection by applying preferences based on service rather than immutable traits.
- Political: Reflects bipartisan interest in veteran support (sponsored by Republicans), potentially advancing veteran entrepreneurship amid post-service economic challenges. It could influence future expansions of small business preferences but may spark debates on goal realism (e.g., achieving 5% amid competing priorities).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (8)
Rep. Van Orden, Derrick [R-WI-3], Rep. Donalds, Byron [R-FL-19], Rep. Hunt, Wesley [R-TX-38], Rep. McCormick, Richard [R-GA-7], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Barr, Andy [R-KY-6], Rep. Haridopolos, Mike [R-FL-8], Rep. Rouzer, David [R-NC-7]
Recent Actions
- 2026-02-12: Referred to the House Committee on Small Business.
- 2026-02-12: Introduced in House
- 2026-02-12: Introduced in House
Bill Versions
- Contract Our Veterans Act of 2026 — issued 2026-02-12 — PDF (10 pages)