FAIR Vets Act
- Sponsor
- Rep. Kiggans, Jennifer A. [R-VA-2]
- Committees
- Small Business Committee (primary)
- Last action
- Dec 11, 2025
Bottom line
This bill aims to expand contracting opportunities for service-disabled veteran-owned small businesses by substantially raising the financial limits for sole-source awards, thereby streamlining procurement and supporting veteran entrepreneurs.
What it actually does
This bill amends the Small Business Act to significantly increase the maximum value for sole-source contracts that federal agencies can award to Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns without requiring full and open competition. Specifically, it raises the threshold for manufacturing contracts from $7 million to $10 million and for all other contracts from $3 million to $8 million. It also removes a clause that included options in the calculation of contract value.
Proponents argue
Proponents argue that increasing these thresholds will streamline the contracting process, reduce administrative burdens for both federal agencies and SDVOSBs, and ultimately direct more federal contract dollars to businesses owned by service-disabled veterans. They contend this will support the economic empowerment of veterans, help these businesses grow, and create jobs, while also reflecting current economic realities and inflation.
Opponents contend
Opponents might argue that significantly raising sole-source thresholds could reduce competition for federal contracts, potentially leading to less favorable pricing for the government or limiting opportunities for other small businesses that are not SDVOSBs. They might also raise concerns about oversight and the potential for abuse if contracts are awarded without sufficient competitive pressure, potentially undermining the principle of best value for taxpayer money.
The bill is exceptionally short and clear, allowing for quick comprehension by any interested reader who wishes to understand its provisions.
Section 2(a)
Modernization of Sole-Source Thresholds for Service-Disabled Veteran-Owned Small Business Concerns
This provision amends Section 36 of the Small Business Act to increase the maximum dollar value for sole-source contracts that federal agencies can award to Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns. It raises the threshold for manufacturing contracts from $7 million to $10 million and for non-manufacturing contracts from $3 million to $8 million. Additionally, it clarifies that 'options' are no longer included when calculating the contract value against these thresholds.
Supporters argue
Supporters contend that these increased thresholds are necessary to reflect current economic realities and inflation, making the SDVOSB program more effective in its goal of supporting veteran entrepreneurs. They argue that the administrative burden of competitive bidding for contracts below these new limits often outweighs the benefits, and that SDVOSBs have proven their capability to deliver quality services and products.
Critics contend
Critics might argue that while supporting SDVOSBs is a laudable goal, significantly raising sole-source thresholds could lead to less transparency and accountability in federal contracting. They may contend that competition is crucial for ensuring the best value for taxpayer money and that expanding sole-source authority too broadly could undermine this principle, potentially leading to higher costs or less innovative solutions.
Tradeoffs
The bill balances the goal of supporting service-disabled veteran-owned businesses through streamlined contracting with the principle of maximizing competition to ensure cost-effectiveness and fairness in federal procurement. It also navigates the tension between administrative efficiency for agencies and the potential for reduced market access for non-SDVOSB small businesses.