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

The "Service-Disabled Veteran Opportunities in Small Business Act" aims to boost contract awards to small businesses owned by service-disabled veterans by requiring the SBA to train federal employees and report to Congress on agencies that fail to meet contracting goals.

Nicolas LaLota
R

Nicolas LaLota

Representative

NY-1

LEGISLATION

Service-Disabled Veteran Opportunities in Small Business Act: Boosting Contracts for Veteran-Owned Businesses

The "Service-Disabled Veteran Opportunities in Small Business Act" aims to level the playing field for businesses owned by service-disabled veterans. This new law directly tackles the issue of federal agencies failing to meet their goals for awarding contracts to these businesses, as outlined in section 15(g)(1)(A)(ii) of existing law.

Cracking Down on Missed Goals

The core of the bill is straightforward: The Small Business Administration (SBA), together with the Office of Veterans Business Development, is now required to train federal employees on how to award more contracts to businesses owned by service-disabled veterans. This training specifically targets agencies that haven't been meeting their contracting goals. Within 180 days, the SBA must also issue clear guidance, including "best practices," to help these agencies improve. Think of it like mandatory coaching for agencies that are falling behind in supporting veteran-owned businesses.

Real-World Rollout

Imagine a veteran who runs a construction company specializing in renovations. Under this law, federal agencies—especially those lagging in awarding contracts to veteran-owned businesses—will receive specific training to better identify and work with companies like this one. This could mean simplified application processes, clearer explanations of requirements, and more opportunities specifically set aside for service-disabled veteran-owned businesses.

Accountability and Challenges

To ensure agencies are taking this seriously, the SBA must submit an annual report to Congress. This report will publicly list agencies that aren't meeting their goals and detail the training provided. This public reporting adds a layer of accountability. However, one potential challenge is ensuring that the training is truly effective and not just a box-ticking exercise. The definition of "best practices" will also be crucial – it needs to be concrete and results-oriented to make a real difference. (SEC. 2)

The Big Picture

This legislation builds upon existing efforts to support veteran-owned businesses. By focusing on agencies that are struggling to meet their goals, it aims to create a more inclusive and equitable system. While the success of the law will depend on how effectively it's implemented, it represents a clear step toward increasing opportunities for service-disabled veterans in the federal contracting space.