Contract Our Veterans Act of 2026
- Bill Number
- S. 3964
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-03-03: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-03-25T11:03:19Z
AI-Generated Summary
Purpose
The "Contract Our Veterans Act of 2026" aims to increase opportunities for small businesses owned and controlled by veterans (referred to as veteran-owned small businesses) in federal procurement contracts. It establishes a specific participation goal and streamlines contracting processes to help these businesses compete for government work, building on existing support for small businesses.
Key Provisions
- New Contracting Procedures (Section 36B of the Small Business Act):
- Defines a "contracting officer" as a federal employee authorized to enter into contracts (per U.S. procurement law).
- Allows sole source contracts (awards without competition) for veteran-owned small businesses above the simplified acquisition threshold (typically around $250,000 for most contracts) if the business is responsible, the price is fair and reasonable, and it provides the best value to the government.
- Requires restricted competition (limited to veteran-owned small businesses) when at least two such businesses are expected to bid and a fair price can be achieved.
- Eligibility requires the business and its veteran owner to be listed in the SBA's Veteran Small Business Certification database.
- Governmentwide Goals (Amendments to Section 15(g)):
- Sets a minimum 5% goal for the total value of all prime contracts (main awards) and subcontracts (awards to subcontractors) awarded to veteran-owned small businesses each fiscal year.
- Integrates veteran-owned businesses into existing goals for other small business categories, such as those owned by women or socially/economically disadvantaged individuals.
- Reporting and Oversight Enhancements (Amendments to Section 15(h)):
- Expands federal agency reporting to track awards to veteran-owned small businesses in categories like aggregate totals, sole source awards, restricted competitions, unrestricted competitions, and cases where a business is sold and no longer qualifies.
- Includes data on awards from set-aside programs (procurements reserved for specific small business types).
- Integration into SBA Programs:
- Updates roles for SBA's Business Opportunity Specialists and Commercial Market Representatives to promote veteran-owned businesses.
- Adds veteran-owned businesses to considerations for contract offers, "best in class" procurement strategies (high-performing acquisition methods), Offices of Small and Disadvantaged Business Utilization, scorecard programs (agency performance evaluations), mentor-protégé programs (pairing experienced firms with small businesses), and limitations on subcontracting (rules ensuring small businesses perform a significant portion of work).
Significant Changes to Existing Law
- New Category and Goal: Previously, the Small Business Act focused goals on small businesses owned by women, service-disabled veterans, HUBZone businesses (from underserved areas), and disadvantaged individuals. This bill adds a standalone 5% goal for all veteran-owned small businesses (not just service-disabled) and creates dedicated sole source and restricted competition rules, similar to those for other categories but now explicitly for veterans.
- Expanded Reporting: Reporting now breaks down veteran-owned awards by method (e.g., sole source vs. competitive), including post-award changes like business sales that affect status.
- Broader SBA Integration: References to other small business programs (e.g., sections 36 for women-owned and 8(a) for disadvantaged) are updated to include the new section 36B, ensuring veteran-owned businesses are promoted alongside others.
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 contracting for best value.
- On Citizens and Businesses: Veteran entrepreneurs gain easier access to federal contracts, potentially boosting income, job creation, and economic stability for veterans (who number over 18 million in the U.S.). Other small businesses may face slightly more competition in restricted bids.
- On International Relations: No direct impact, as the bill focuses on domestic federal procurement.
Main Stakeholders Affected
- Veteran-Owned Small Businesses: Primary beneficiaries, with expanded access to contracts worth billions annually.
- Federal Agencies (e.g., Department of Defense, SBA): Responsible for implementing goals, reporting, and adjusting procurement.
- Small Business Administration (SBA): Gains new duties in certification, promotion, and oversight.
- Other Small Business Owners: Indirectly affected through shared or competing set-aside opportunities.
- Veterans and Their Families: Broader economic support via business growth.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with the Small Business Act's framework for set-asides, which courts have upheld as promoting fair competition. The 5% goal is aspirational (not mandatory penalties), reducing legal challenges, but requires database certification to prevent fraud.
- Constitutional: Supports equal protection by aiding a specific group (veterans) without discriminating against others; consistent with congressional authority over federal spending.
- Political: Bipartisan introduction (by Sens. Sheehy and Schiff) signals broad support for veteran initiatives. Could influence future budgets by prioritizing veteran business programs, potentially facing debate over goal feasibility amid competing small business priorities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. Schiff, Adam B. [D-CA], Sen. Padilla, Alex [D-CA]
Recent Actions
- 2026-03-03: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2026-03-03: Introduced in Senate
Bill Versions
- Contract Our Veterans Act of 2026 — issued 2026-03-03 — PDF (10 pages)