Schneider, Kelly Introduce Bipartisan Bill to Protect Business Opportunities for American Veterans

Today, Congressman Brad Schneider (IL-10) joined Congressman Trent Kelly (MS-01), Congresswoman Kuster (NH-02), and Congressman Jack Bergman (MI-01) to announce the introduction of H.R. 5494, the Protecting Business Opportunities for Veterans Adjustment Act of 2018.

After their service to our country, many veterans go on to become successful entrepreneurs. In recognition of their time serving us, these veteran-owned companies as well as veterans with service-connected disabilities, are provided certain advantages during the federal contracting process.

Some companies have taken advantage of these provisions which are designed to benefit veterans. So-called "pass through" contracts occur when a small business wins its contract based on these designated preferences and then subcontracts most of the work to a large firm. These "pass through" contracts violate the principle and rationale of these programs.

The modification in Rep. Schneider's legislation mirrors an existing requirement in the "Vets First" statute of Title 38 U.S.C. that was made possible by H.R. 2749, "Protecting Business Opportunities for Veterans Act of 2017." The Protecting Business Opportunities for Veterans Adjustment Act of 2018 would provide parity between Title 15 and Title 38 "Limitations on Subcontracting" and provide clarity as the Small Business Administration and VA implement joint regulations on SDVO/VOSB.

"Veterans have honorably served and sacrificed for our country, and they deserve our support as they transition to civilian life," said Schneider. "The federal set-aside opportunities for veteran-owned small businesses are intended for these individuals, but unfortunately some businesses have been abusing the system. This bill is a commonsense, bipartisan fix to ensure these contracts are going to the veterans who have earned them."

"Our veteran-owned small businesses are essential to developing our communities," said Kelly. "By insuring fraud and abuse is kept out of these programs, we provide a better opportunity for our American heroes to be successful."

"Improving economic opportunity for veterans and directing federal contracts to veteran-owned small businesses is a commonsense way we can support the men and women who have served our nation in uniform," said Kuster. "Sadly, we've seen bad actors take advantage of programs intended to benefit our servicemembers and it's critical that we protect veteran-owned small businesses in the federal contracting process. I look forward to working with my colleagues to advance this legislation so that veterans are in a better position to benefit from federal contracts."

"As chairman of the Veterans' Affairs Subcommittee on Oversight and Investigations, I work every day to strengthen the commitment we've made to our nation's heroes," said Bergman. "Following the passage of my bill, the Protecting Business Opportunities for Veterans Act of 2017, it became clear that more work was needed to bring transparency and integrity to the Service Disabled Veteran-Owned (SDVOSB) / Veteran-Owned Small Business (VOSB) program. I'm proud to join my colleagues on the Small Business Committee to further protect SDVOSBs and VOSBs from the fraud and abuse of improper ‘pass-through' contracts."