PolicyBrief
H.R. 865
119th CongressJan 31st 2025
Service-Disabled Veteran Opportunities in Small Business Act
IN COMMITTEE

This bill requires the Small Business Administration to provide training and guidance to federal agencies that fail to meet contracting goals for service-disabled veteran-owned small businesses.

Nicolas LaLota
R

Nicolas LaLota

Representative

NY-1

LEGISLATION

New Veteran Business Mandate: Federal Agencies to Face Mandatory Training for Missing Disabled-Veteran Contracting Goals

The Service-Disabled Veteran Opportunities in Small Business Act targets a specific gap in federal spending: the failure of some government agencies to meet their mandated goals for hiring small businesses owned by service-disabled veterans. Currently, the government-wide goal is to award at least 3% of all federal contracting dollars to these specific firms. This bill requires the Small Business Administration (SBA) to step in when agencies fall short, providing mandatory training to federal procurement officers on how to find, vet, and hire veteran-owned firms. Beyond just a classroom session, the SBA must also issue a formal 'best practices' playbook within 180 days to help these agencies get their numbers up.

Accountability in the Procurement Office

Under Section 2, the bill creates a direct consequence for agencies that treat veteran-owned business targets as optional suggestions rather than requirements. If an agency misses its mark, its 'covered employees'—the people actually signing the checks and picking vendors—must undergo training specifically designed to increase contract awards to service-disabled veterans. For a local construction firm owned by a veteran who lost a limb in service, this could mean the difference between being overlooked for a federal project and having a procurement officer who actually knows how to navigate the veteran-preference system. The bill ensures that these officers aren't just told to 'do better' but are given the technical tools to execute.

Tracking Progress and Best Practices

The legislation doesn't just stop at training; it demands a public record of who is falling behind. Every year, the SBA will be required to hand Congress a list of every agency that failed to meet its goals, along with a tally of how many training sessions were held and what was taught. This creates a transparent 'naughty list' that makes it harder for large departments to ignore their obligations to the veteran business community. By requiring guidance and best practices to be issued within six months, the bill aims to standardize how the government interacts with veteran entrepreneurs, potentially lowering the barrier to entry for small business owners who often find federal paperwork more daunting than the work itself.