Extract From P.L. 109-461 (enacted 12/22/2006)
VA Procurement Procedures
(a) Goals-
(1) IN GENERAL-
Subchapter II of chapter 81 is amended by adding at the end the following new
section:
`(a) Contracting
Goals- (1) In order to increase contracting opportunities for small business
concerns owned and controlled by veterans and small business concerns owned and
controlled by veterans with service-connected disabilities, the Secretary shall--
`(A) establish a
goal for each fiscal year for participation in Department contracts (including
subcontracts) by small business concerns owned and controlled by veterans who
are not veterans with service-connected disabilities in accordance with
paragraph (2); and
`(B) establish a goal
for each fiscal year for participation in Department contracts (including
subcontracts) by small business concerns owned and controlled by veterans with
service-connected disabilities in accordance with paragraph (3).
`(2) The goal for a
fiscal year for participation under paragraph (1)(A) shall be determined by the
Secretary.
`(3) The goal for a
fiscal year for participation under paragraph (1)(B) shall be not less than the
Government-wide goal for that fiscal year for participation by small business
concerns owned and controlled by veterans with service-connected disabilities
under section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)).
`(4) The Secretary shall
establish a review mechanism to ensure that, in the case of a subcontract of a
Department contract that is counted for purposes of meeting a goal established
pursuant to this section, the subcontract was actually awarded to a business
concern that may be counted for purposes of meeting that goal.
`(b) Use of
Noncompetitive Procedures for Certain Small Contracts- For purposes of meeting
the goals under subsection (a), and in accordance with this section, in
entering into a contract with a small business concern owned and controlled by
veterans for an amount less than the simplified acquisition threshold (as
defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
403)), a contracting officer of the Department may use procedures other than
competitive procedures.
`(c) Sole Source
Contracts for Contracts Above Simplified Acquisition Threshold- For purposes of
meeting the goals under subsection (a), and in accordance with this section, a
contracting officer of the Department may award a contract to a small business
concern owned and controlled by veterans using procedures other than
competitive procedures if--
`(1) such concern is
determined to be a responsible source with respect to performance of such
contract opportunity;
`(2) the anticipated
award price of the contract (including options) will exceed the simplified
acquisition threshold (as defined in section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and
`(3) in the estimation
of the contracting officer, the contract award can be made at a fair and
reasonable price that offers best value to the
`(d) Use of
Restricted Competition- Except as provided in subsections (b) and (c), for
purposes of meeting the goals under subsection (a), and in accordance with this
section, a contracting officer of the Department 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 two or
more small business concerns owned and controlled by veterans will submit
offers and that the award can be made at a fair and reasonable price that
offers best value to the United States.
`(e) 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 of veteran-owned
businesses maintained by the Secretary under subsection (f).
`(f) Database of
Veteran-Owned Businesses- (1) Subject to paragraphs (2) through (6), the
Secretary shall maintain a database of small business concerns owned and
controlled by veterans and the veteran owners of such business concerns.
`(2) To be eligible
for inclusion in the database, such a veteran shall submit to the Secretary
such information as the Secretary may require with respect to the small
business concern or the veteran.
`(3) Information
maintained in the database shall be submitted on a voluntary basis by such
veterans.
`(4) In maintaining
the database, the Secretary shall carry out at least the following two verification
functions:
`(A) Verification that
each small business concern listed in the database is owned and controlled by
veterans.
`(B) In the case of a
veteran who indicates a service-connected disability, verification of the
service-disabled status of such veteran.
`(5) The Secretary shall
make the database available to all Federal departments and agencies and shall
notify each such department and agency of the availability of the database.
`(6) If the Secretary
determines that the public dissemination of certain types of information
maintained in the database is inappropriate, the Secretary shall take such
steps as are necessary to maintain such types of information in a secure and
confidential manner.
`(g) Enforcement
Penalties for Misrepresentation- Any business concern that is determined by the
Secretary to have misrepresented the status of that concern as a small business
concern owned and controlled by veterans or as a small business concern owned
and controlled by service-disabled veterans for purposes of this subsection shall
be debarred from contracting with the Department for a reasonable period of
time, as determined by the Secretary.
`(h) Treatment of
Businesses After Death of Veteran-Owner- (1) Subject to paragraph (3), if the
death of a veteran causes a small business concern to be less than 51 percent
owned by one or more veterans, the surviving spouse of such veteran who
acquires ownership rights in such small business concern shall, for the period
described in paragraph (2), be treated as if the surviving spouse were that
veteran for the purpose of maintaining the status of the small business concern
as a small business concern owned and controlled by veterans.
`(2) The period
referred to in paragraph (1) is the period beginning on the date on which the
veteran dies and ending on the earliest of the following dates:
`(A) The date on which
the surviving spouse remarries.
`(B) The date on which
the surviving spouse relinquishes an ownership interest in the small business
concern.
`(C)
The date that is ten years after the date of the veteran's death.
`(3) Paragraph (1)
only applies to a surviving spouse of a veteran with a service-connected
disability rated as 100 percent disabling or who dies as a result of a
service-connected disability.
`(i) Priority for Contracting Preferences- Preferences for
awarding contracts to small business concerns shall be applied in the following
order of priority:
`(1) Contracts awarded
pursuant to subsection (b), (c), or (d) to small business concerns owned and
controlled by veterans with service-connected disabilities.
`(2) Contracts awarded
pursuant to subsection (b), (c), or (d) to small business concerns owned and
controlled by veterans that are not covered by paragraph (1).
`(3) Contracts awarded
pursuant to--
`(A) section 8(a) of
the Small Business Act (15 U.S.C. 637(a)); or
`(B) section 31 of
such Act (15 U.S.C. 657a).
`(4) Contracts awarded
pursuant to any other small business contracting preference.
`(j) Annual Reports-
Not later than December 31 each year, the Secretary shall submit to Congress a
report on small business contracting during the fiscal year ending in such
year. Each report shall include, for the fiscal year covered by such report,
the following:
`(1) The percentage
of the total amount of all contracts awarded by the Department during that
fiscal year that were awarded to small business concerns owned and controlled
by veterans.
`(2) The percentage of
the total amount of all such contracts awarded to small business concerns owned
and controlled by veterans with service-connected disabilities.
`(3) The percentage
of the total amount of all contracts awarded by each Administration of the
Department during that fiscal year that were awarded to small business concerns
owned and controlled by veterans.
`(4) The percentage
of the total amount of all contracts awarded by each such Administration during
that fiscal year that were awarded to small business concerns owned and
controlled by veterans with service-connected disabilities.
`(k) Definitions- In
this section:
`(1) The term `small
business concern' has the meaning given that term under section 3 of the Small
Business Act (15 U.S.C. 632).
`(2) The term `small
business concern owned and controlled by veterans' means a small business
concern--
`(A)(i) not less than 51 percent of which is owned by one or
more veterans or, in the case of a publicly owned business, not less than 51
percent of the stock of which is owned by one or more veterans; and
`(ii) the management
and daily business operations of which are controlled by one or more veterans;
or
`(B) not less than 51
percent of which is owned by one or more veterans with service-connected
disabilities that are permanent and total who are unable to manage the daily
business operations of such concern or, in the case of a publicly owned
business, not less than 51 percent of the stock of which is owned by one or
more such veterans.'.
(2) CLERICAL
AMENDMENT- The table of sections at the beginning of such chapter is amended by
inserting after the item relating to section 8126 the following new item:
`8127. Small business
concerns owned and controlled by veterans: contracting goals and preferences.'.
(b) Transition Rule-
A small business concern that is listed in any small business database
maintained by the Secretary of Veterans Affairs on the date of the enactment of
this Act shall be presumed to be eligible for inclusion in the database under
subsection (f) of section 8127 of title 38, United States Code, as added by
subsection (a), during the period beginning on the effective date of that
section and ending one year after such effective date. Such a small business
concern may be removed from the database during that period if it is found not
to be a small business concern owned and controlled by veterans (as defined in
subsection (k) of such section).
(c) Comptroller
General Study and Report-
(1) STUDY REQUIRED-
During the first three fiscal years for which this section is in effect, the
Comptroller General shall conduct a study on the efforts made by the Secretary of
Veterans Affairs to meet the contracting goals established pursuant to section
8127 of title 38, United States Code, as added by subsection (a).
(2) INFORMATION TO
CONGRESS ON STUDY- On or before January 31 of each year during which the
Comptroller General conducts the study under paragraph (1), the Comptroller
General shall brief Congress on such study, placing special emphasis on any
structural or organizational issues within the Department of Veterans Affairs
that might act as an impediment to reaching such contracting goals.
(3) REPORT- Not
later than 180 days after the end of the three-year period during which the
Comptroller General conducts the study under paragraph (1), the Comptroller
General shall submit to Congress a report on the findings of such study.
(d) Effective Date-
This section and the amendments made by this section shall take effect on the
date that is 180 days after the date of the enactment of this Act.
(a) Priority for
Veteran-Owned Small Businesses-
(1) IN GENERAL-
Subchapter II of chapter 81, as amended by section 502 of this Act, is further
amended by adding at the end the following new section:
`(a) Contracting
Priority- In procuring goods and services pursuant to a contracting preference
under this title or any other provision of law, the Secretary shall give
priority to a small business concern owned and controlled by veterans, if such
business concern also meets the requirements of that contracting preference.
`(b) Definition- For
purposes of this section, the term `small business concern owned and controlled
by veterans' means a small business concern that is included in the small
business database maintained by the Secretary under section 8127(f) of this
title.'.
(2) CLERICAL
AMENDMENT- The table of sections at the beginning of such chapter, as so
amended, is further amended by inserting after the item relating to section
8127 the following new item:
`8128. Small business
concerns owned and controlled by veterans: contracting priority.'.
(b) Effective Date-
This section and the amendments made by this section shall take effect on the
date that is 180 days after the date of the enactment of this Act.