Veteran-Owned Businesses First in Line for VA Contracts The Department of Veterans Affairs will be permitted to set aside contracts for veteran-owned small businesses under a new law signed by President Bush. The Veterans Benefits, Health Care and Information Technology Act, passed by Congress in December, directs VA to give first priority in contracting to companies owned by service-disabled veterans, then to other veteran-owned companies. It permits sole-source contracts up to $5 million and competitive set-asides for veteran-owned firms, whether the business owner is disabled or not. Other agencies can set aside contracts only for companies owned by service-disabled veterans. To qualify, a business must be at least 51% owned by veterans and must register in VA’s Vendor Information Pages at www.vip.vetbiz.gov. The department will verify a company’s eligibility for SDV or veteran-owned status. The law directs the VA secretary to set goals for contracting with veteran-owned firms as well as SDVs. Preliminary 2006 figures show the department awarded more than 3% of its prime contract dollars to SDVs and about 5% to veteran-owned firms, according to Scott Denniston, director of VA’s Office of Small and Disadvantaged Business Utilization. In House debate on the legislation last year, its sponsor, Arkansas Republican John Boozman, said, “I feel VA must set an example for the rest of the government.” (SAA, 7/28/06) Boozman’s bill originally called for a 9% goal, but the final version leaves the goal up to the secretary. The law will take effect in June. Denniston said the department is working on rules to implement the new set-asides. The law also protects the surviving spouse of a disabled-veteran small business owner. If the spouse inherits the business, it continues to qualify for SDV status for 10 years after the veteran’s death, unless the spouse remarries.