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Task Force Eyes Contracting Preference for Veterans

A presidential task force is exploring the creation of a contracting preference for companies that hire veterans.

The idea is modeled after the HUBZone program, which provides set-asides for companies that employ residents of designated poor neighborhoods. HUBZone companies must draw at least 35% of their workforce from the zones.

The Interagency Task Force on Veterans Small Business Development said, “The same principle could be applied to small business contractors that employ a certain percentage of veterans.” The task force said such a program might be permitted under existing law.

President Obama created the task force 18 months ago. Members include representatives of federal agencies and veterans organizations.

“The creation of a new small business subcategory for firms hiring veterans would provide hiring incentives and procurement opportunities for small business that hire veterans or guard and reserve members,” the group wrote in its first report on Nov. 1. “In addition to providing employment opportunities, this action would provide another ‘tool’ to assist the Federal Government achieve overall procurement goals for all small business categories, including service-disabled veterans.”

The task force said the Department of Veterans Affairs might handle certification for the new program. However, VA’s certification process for service-disabled veterans has come under heavy criticism. (See story, below.)

The task force report said evaluation of the potential benefits and barriers of a new veterans preference program is being handled by SBA, VA, the Defense Department and the Office of Management and Budget. The report gave no timeline for a decision on whether to move forward.

The task force issued 18 recommendations for improving employment and business opportunities for veterans, mostly by strengthening existing programs to provide greater access to capital, contracts, counseling and technical expertise.

It suggested allowing veterans to use money under the post-9/11 GI Bill for starting a business or entrepreneurial training. The task force report is available at www.sba.gov/sites/default/files/FY2012-Final Veterans TF Report to President.pdf.


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