Contracting Goals for Veteran-owned Businesses

The Veterans Entrepreneurship and Small Business Development Act of 1999 established an annual government-wide goal that not less than 3 percent of the total value of all prime contract and subcontract awards for each fiscal year be awarded to small business concerns owned and controlled by service-disabled veterans. The term "small business concern owned and controlled by veterans" for the purposes of the act is defined as a business that at least 51 percent owned by one or more eligible veterans or, in the case of publicly owned businesses, at least 51 percent of the stock of which is owned by one or more veterans. There is no minimum disability rating requirement. These veterans must also control the firm's management and daily business operations.

The Act additionally stated that federal procurement officials and prime contractors shall provide small business concerns owned and controlled by veterans and small business concerns owned and controlled by service-disabled veterans with the maximum practicable opportunity to participate in the performance of contracts let by any Federal agency, including subcontracts.

The Act serves to provide veterans greater visibility by requiring SBA to track and annually publish the percentage of federal procurement awards to veteran and service-disabled veteran businesses. This helps focus procurement activities on veterans and service-disabled veterans as a special interest group. For more information, visit the Center for Veterans Enterprise at www.vetbiz.gov, the SBA at www.sba.gov/VETS, or The Veterans Corporation at www.veteranscorp.org.

In December 2003, Congress passed legislation that established setasides for service-disabled veterans similar to the 8(a) setasides for small disadvantaged businesses. This legislation allows for sole-source contracts up to $3 million ($5 million for manufacturing), and creates setasides that limit bidding to businesses owned and controlled by service-disabled veterans if there are two or more such businesses qualified to bid on the contract

The National Veterans Business Development Corporation (The Veterans Corporation)

Created by Congress, The Veterans Corporation is a non-profit organization that provides veterans and service-disabled Veterans with the tools they need to start or expand their own businesses.

The Veterans Corporation provides a wide range of programs and services for Veterans who own their own business or who wish to start their own business, including access to capital and services, access to training, and access to markets. All veterans, service-disabled veterans, active Reserve and Guard members and active duty military preparing to leave the service are eligible for membership in The Veterans Corporation. For more information or to sign up online for free membership visit www.veteranscorp.org.

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