Contract Our Veterans Act of 2026
- Sponsor
- Sen. Sheehy, Tim [R-MT]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Mar 3, 2026
Bottom line
The bill aims to significantly increase federal contracting opportunities for veteran-owned small businesses by setting a mandatory government-wide goal and streamlining contracting mechanisms.
What it actually does
This bill amends the Small Business Act to establish a government-wide goal of not less than 5% for federal procurement contracts awarded to small business concerns owned and controlled by veterans. It authorizes federal contracting officers to award sole-source and restricted competition contracts to these businesses and expands reporting requirements across federal agencies to track progress towards this goal.
Proponents argue
Proponents argue this bill will honor veterans by providing them with greater economic opportunities through federal contracts, leveraging their skills and dedication in the private sector, and ensuring they receive a fair share of government spending.
Opponents contend
Potential opponents might argue that setting specific percentage goals could lead to less competitive bidding or divert contracts from other disadvantaged business categories, potentially increasing costs or reducing efficiency for federal agencies.
The bill is concise and its core provisions are easily understandable, allowing for a quick yet thorough review.
Section 2, inserting new Section 36B into the Small Business Act.
Establishes Contracting Authority for Veteran-Owned Small Businesses (VOSBs)
This section creates new authority for federal contracting officers to award contracts to veteran-owned small businesses (VOSBs) under certain conditions. It allows for sole-source contracts for VOSBs up to a specified threshold if the price is fair and reasonable, and mandates restricted competition among VOSBs if at least two are expected to bid at a fair price.
Supporters argue
Supporters contend that these provisions are crucial for enabling VOSBs to effectively compete for federal contracts, recognizing the unique challenges they face and providing a necessary mechanism to meet the overall contracting goals.
Critics contend
Critics might argue that expanding sole-source and restricted competition contracts could limit the pool of bidders, potentially leading to higher costs for taxpayers or reduced innovation due to less broad competition.
Tradeoffs
Balances the goal of supporting veteran-owned businesses with the principle of open and competitive federal procurement.
Section 3, amending Section 15(g) and 15(h)(2) of the Small Business Act.
Establishes 5% Government-wide Contracting Goal for VOSBs and Expands Reporting
This section sets a new government-wide goal that not less than 5% of the total value of all prime and subcontract awards each fiscal year must go to small business concerns owned and controlled by veterans. It also expands existing federal reporting requirements to include detailed data on contracts awarded to VOSBs, breaking down awards by type (sole source, restricted, unrestricted, etc.).
Section 4, amending various sections of the Small Business Act (4(g)(1), 4(h)(1), 8(a)(17)(A), 15(h)(4)(A)(ii), 15(k), 15(y), 45(c)(1)(B), 46).
Integrates VOSBs into Existing Small Business Programs and Reporting
This section makes numerous conforming amendments across the Small Business Act to integrate VOSBs into existing federal small business support structures. This includes adding VOSBs to the responsibilities of Business Opportunity Specialists and Commercial Market Representatives, including them in 'Best in Class' addendum reporting, incorporating them into the functions of Offices of Small and Disadvantaged Business Utilization, and adding them to the Small Business Scorecard Program and Mentor-Protege reporting. It also updates subcontracting limitations to include VOSBs.
These amendments integrate "small business concerns owned and controlled by veterans" into various existing provisions of the Small Business Act, including the duties of Business Opportunity Specialists, Commercial Market Representatives, "Best in Class" reporting, Offices of Small and Disadvantaged Business Utilization, the Scorecard Program, Mentor-Protege reporting, and limitations on subcontracting.
Section 4, specifically the amendments to Sections 4(g)(1), 4(h)(1), 8(a)(17)(A), 15(h)(4)(A)(ii), 15(k), 15(y), 45(c)(1)(B), and 46 of the Small Business Act.
Why it matters:This is standard legislative practice for ensuring consistency and full integration of a new program or category into existing legal frameworks. It's not necessarily evasive but requires careful reading to understand the full scope of operational changes.
Case for: Supporters argue these amendments are vital for the effective implementation of the bill's primary goals, ensuring that VOSBs receive comprehensive support and are properly accounted for across all relevant federal small business programs.
Case against: No specific opposition is typically raised against these types of conforming amendments, as they are generally seen as necessary technical adjustments rather than substantive policy changes that would warrant opposition.
Estimated impact: These changes will significantly broaden the administrative and programmatic support available to VOSBs, affecting how federal agencies track and promote their participation in contracting.