S. 3964

119 S3964 IS: Contract Our Veterans Act of 2026
 U.S. Senate
 2026-03-03
 text/xml
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 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II
 119th CONGRESS  2d Session
 S. 3964
 IN THE SENATE OF THE UNITED STATES
 March 3, 2026
  Mr. Sheehy  (for himself and  Mr. Schiff ) introduced the following bill; which was read twice and referred to the  Committee on Small Business and Entrepreneurship
 A BILL
To amend the Small Business Act to establish a goal for participation by small business concerns owned and controlled by veterans in procurement contracts, and for other purposes.
1.
Short title
This Act may be cited as the   Contract Our Veterans Act of 2026  .
2.
Agency contracting goals for small business concerns owned and controlled by veterans
The Small Business Act ( 15 U.S.C. 631 et seq. ) is amended by inserting after section 36A the following:
36B.
Small business concerns owned and controlled by veterans
(a)
Contracting Officer defined
In this section, the term  contracting officer  has the meaning given the term in section 2101 of title 41, United States Code.
(b)
Sole source contracts for contracts above simplified acquisition threshold
A contracting officer may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if—
(1)
the concern is determined to be a responsible source with respect to performance of the contract;
(2)
the anticipated award price of the contract (including options) will not exceed the amounts specified in section 36(c)(2); and
(3)
the contracting officer determines the contract award can be made at a fair and reasonable price that offers best value to the United States.
(c)
Restricted competition
A contracting officer shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans if the contracting officer has a reasonable expectation that—
(1)
2 or more small business concerns owned and controlled by veterans will submit offers; and
(2)
the award can be made at a fair and reasonable price that offers best value to the United States.
(d)
Eligibility of small business concerns
A small business concern may be awarded a contract under this section only if the small business concern and the veteran owner of the small business concern are listed in the database described in section 36(f)(1).
 .
3.
Governmentwide goals and reporting requirements for small business concerns owned and controlled by veterans
(a)
Governmentwide goals
Section 15(g) of the Small Business Act ( 15 U.S.C. 644(g) ) is amended—
(1)
by striking  and small business concerns owned and controlled by women  and inserting  , small business concerns owned and controlled by women, and small business concerns owned and controlled by veterans  each place it appears;
(2)
in paragraph (1)(A), by adding at the end the following:
(vi)
The Governmentwide goal for participation by small business concerns owned and controlled by veterans shall be established at not less than 5 percent of the total value of all prime contract and subcontract awards for each fiscal year.
 ; and
(3)
in paragraph (2)(A), by striking  and by small business concerns owned and controlled by women  and inserting  by small business concerns owned and controlled by women, and by small business concerns owned and controlled by veterans .
(b)
Reporting on goals
Section 15(h)(2) of the Small Business Act ( 15 U.S.C. 644(h)(2) ) is amended—
(1)
in subparagraph (E)—
(A)
in clauses (i)(VI), (ii)(VII), (iii)(VIII), and (iv)(VIII), by inserting  small business concerns owned and controlled by veterans  after  small business concerns owned and controlled by women, ;
(B)
in clause (vii)(VI), by striking  and  at the end;
(C)
in clause (viii)(X), by inserting  small business concerns owned and controlled by veterans  after  small business concerns owned and controlled by socially and economically disadvantaged individuals, ; and
(D)
by adding at the end the following:
(ix)
small business concerns owned and controlled by veterans—
(I)
in the aggregate;
(II)
through sole source contracts;
(III)
through competitions restricted to small business concerns;
(IV)
through competitions restricted to small business concerns owned and controlled by veterans;
(V)
through unrestricted competition;
(VI)
that were purchased by another entity after the initial contract was awarded and as a result of the purchase, would no longer be deemed to be small business concerns owned and controlled by veterans for purposes of the initial contract; and
(VII)
that were awarded using a procurement method that restricted competition to small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, small business concerns owned and controlled by women, or a subset of any such concerns; and
  ; and
(2)
in subparagraph (F), by striking  and small business concerns owned and controlled by women  and inserting  small business concerns owned and controlled by women, and small business concerns owned and controlled by veterans .
4.
Participation in Federal procurement by small business concerns owned and controlled by veterans
(a)
Business Opportunity Specialists
Section 4(g)(1) of the Small Business Act ( 15 U.S.C. 633(g)(1) ) is amended—
(1)
in the matter preceding subparagraph (A), by striking  and 36  and inserting  36, and 36B ;
(2)
in subparagraph (A)(v), by striking  36, and  and inserting  36, 36B, and ; and
(3)
in subparagraph (D), by striking  36, or  and inserting  36, 36B, or .
(b)
Commercial market representative
Section 4(h)(1) of the Small Business Act ( 15 U.S.C. 633(h)(1) ) is amended, in the matter preceding subparagraph (A), by striking  and 36  and inserting  36, and 36B .
(c)
Consideration of offers
Section 8(a)(17)(A) of the Small Business Act ( 15 U.S.C. 637(a)(17)(A) ) is amended by striking  or section 36  and inserting  section 36, or section 36B .
(d)
Best in class addendum
Section 15(h)(4)(A)(ii) of the Small Business Act ( 15 U.S.C. 644(h)(4)(A)(ii) ) is amended—
(1)
in subclause (III), by striking  and  at the end;
(2)
in subclause (IV), by striking the period at the end and inserting  ; and ; and
(3)
by adding at the end the following:
(V)
small business concerns owned and controlled by veterans.
  .
(e)
Offices of Small and Disadvantaged Business Utilization
Section 15(k) of the Small Business Act ( 15 U.S.C. 644(k) ) is amended—
(1)
in the matter preceding paragraph (1), by striking  or 44  and inserting  36B, or 44 ;
(2)
by striking  and 44  and inserting  36B, and 44  each place it appears; and
(3)
by striking  or 36  and inserting  36, or 36B  each place it appears.
(f)
Scorecard Program
Section 15(y) of the Small Business Act ( 15 U.S.C. 644(y) ) is amended—
(1)
by striking  and small business concerns owned and controlled by women  and inserting  , small business concerns owned and controlled by women, and small business concerns owned and controlled by veterans  each place it appears; and
(2)
in paragraph (4), by adding at the end the following new subparagraph:
(E)
The number (expressed as a percentage) and total dollar amount of awards made to small business concerns owned and controlled by veterans through sole source contracts and competitions restricted to small business concerns owned and controlled by veterans under section 36B.
 .
(g)
Mentor-
P rotege reporting
Section 45(c)(1)(B) of the Small Business Act ( 15 U.S.C. 657r(c)(1)(B) ) is amended—
(1)
by redesignating clauses (iii) through (v) as clauses (iv) through (vi), respectively; and
(2)
by inserting after clause (ii) the following new clause:
(iii)
small business concerns owned and controlled by veterans;
  .
(h)
Limitations on subcontracting
Section 46 of the Small Business Act ( 15 U.S.C. 657s ) is amended—
(1)
in subsection (a), by striking  or 36  and inserting  36, or 36B ; and
(2)
in subsection (e)—
(A)
in paragraph (1)—
(i)
in subparagraph (D), by striking  or  at the end;
(ii)
in subparagraph (E), by striking the period at the end and inserting  ; or ; and
(iii)
by adding at the end the following:
(F)
with respect to a contract awarded under section 36B, is a small business concern owned and controlled by veterans.
 ; and
(B)
in paragraph (2)—
(i)
in subparagraph (E), by striking  or  at the end;
(ii)
in subparagraph (F), by striking the period at the end and inserting  ; or ; and
(iii)
by adding at the end the following:
(G)
if a subcontractor for a small business concern owned and controlled by veterans, is such a concern.
 .