WeVote
Log In

Bill

Bill

S 3964

Contract Our Veterans Act of 2026

119th Congress Introduced by Ted Budd and 3 co-sponsors

Creates a veteran-owned small business category for federal contracting with a 5% annual set-aside/goals target and new reporting, eligibility, and oversight.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 3964

Summary of Bill: Contract Our Veterans Act of 2026 (S.3964, 119th Congress)

Purpose and intent

  • Establish a government-wide goal and framework to increase participation of small business concerns owned and controlled by veterans in federal procurement.
  • Integrates veteran-owned small businesses into existing Small Business Act programs and reporting mechanisms, alongside existing goals for women-owned small businesses.

Key provisions and changes

  1. New program section: Small Business Concerns Owned and Controlled by Veterans (Section 36B)

    • Creates a distinct category for veteran-owned small businesses within the Small Business Act.
    • Allows contracting officers to use:
      • Sole source contracts above the simplified acquisition threshold under certain conditions.
      • Restricted competition limited to veteran-owned small businesses if:
      • At least two such veteran-owned firms are likely to submit offers.
      • The award can be made at a fair and reasonable price that provides best value.
    • Eligibility: A small business may receive a contract under this section only if the business and its veteran owner are listed in the program’s database.

  2. Government-wide goals and reporting (Section 36B integration into Section 15)

    • Amends Government-wide goals to include veteran-owned small businesses alongside women-owned small businesses.
    • Establishes a government-wide target: at least 5% of the total value of all prime contract and subcontract awards in a fiscal year to veteran-owned small businesses.
    • Requires expanded reporting to include:
      • Aggregate and program-specific data on awards to veteran-owned firms.
      • Breakdown by procurement method (sole source, restricted competition, unrestricted competition, etc.).
      • Tracking of awards under various procurement approaches related to veteran-owned firms.

  3. Participation and outreach in federal procurement (Section 4 enhancements)

    • Updates references across multiple Small Business Act programs (Business Opportunity Specialists, Commercial Market Representatives, and other procurement pathways) to explicitly include 36B (the veteran-owned category).
    • Ensures consideration of veteran-owned firms in:
      • 8(a) program considerations
      • Mentor-protege reporting
      • Small and disadvantaged business utilization offices
      • Scorecard programs

  4. Subcontracting and procurement integrity (Section 46 considerations)

    • Expands subcontracting limitations to explicitly include contracts awarded under Section 36B.
    • Ensures subcontracting plans and limitations reflect the involvement of veteran-owned prime contractors.

Who would be affected

  • Veteran-owned small businesses: New eligibility and contracting opportunities (both sole source and restricted competition, where appropriate), and inclusion in the veteran-owned business database.
  • Contracting officers and federal agencies: New rules for determining eligibility, contracting approaches, and ensuring fair value in veteran-owned awards; additional data collection and reporting requirements.
  • General small-business ecosystem: Interaction with existing programs for women-owned and socially/economically disadvantaged groups, now alongside veteran-owned goals and reporting.
  • Program offices and oversight bodies: Expanded scorecards, monitoring, and annual goal attainment reporting.

Procedural and timeline aspects

  • Status: Introduced in the Senate on March 3, 2026; referred to the Committee on Small Business and Entrepreneurship.
  • Effective date: Not specified in the text provided; typically, once enacted, provisions would become effective on a date specified in the final bill or a phased timeline established by implementing regulations.
  • Reporting cadence: Government-wide goal of 5% of total procurement value for veteran-owned firms would require yearly reporting and tracking via existing Small Business Act reporting mechanisms.

Potential impact and considerations

  • Aimed to broaden veteran economic opportunities by formalizing a dedicated procurement track for veteran-owned small businesses.
  • Could increase competition among veteran-owned firms for federal contracts, particularly in restricted-scope procurements.
  • Requires robust verification and maintenance of the veteran-owned small business database to prevent misclassification and ensure program integrity.
  • Adds to existing diversity, equity, and small-business utilization initiatives by explicitly codifying veteran ownership as a government-wide goal.

If you’d like, I can provide a side-by-side comparison with current law to highlight every substantive change.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.