Government Contracting

The Veterans Entrepreneurship and Small Business Development Act of 1999 set a spending requirement for federal agencies: at least 3 percent of prime-contract funds spent with service-disabled veteran-owned small businesses. VA’s objectives are to help other federal agencies reach that required procurement target. In addition, VA has a self-imposed 7 percent target for purchasing from service-disabled veteran-owned small businesses and a 10 percent target for veteran-owned businesses.

A law passed in 2006, which applies only to VA, requires the department to give first consideration to service-disabled veteran owners in new small business opportunities. It also permits non-competitive purchasing, up to $5 million, in some instances.

A veteran-owned business is maintained by a veteran who has 51 percent of the ownership and control of the enterprise. A veteran is a person who served on active duty with the U.S. Army, Air Force, Navy, Marines or Coast Guard and was released under conditions other than dishonorable. People who were called to active duty, as well as reservists or National Guardsmen who retired or were injured while in training status, also qualify as veterans.

A service-disabled veteran-owned business must meet the same requirements as a veteran-owned business, plus the veteran or veterans owning the controlling interest must have a VA-rated service-connected disability. If a veteran is severely disabled, the day-to-day management of the business may be performed by a spouse or personal caregiver.