The VA SUBCON Act would require the Department of Veterans Affairs to create and maintain a database of SBA-certified veteran-owned small businesses and service-disabled veteran-owned small businesses. The database is intended to help VA prime contractors identify eligible veteran-owned subcontractors when preparing subcontracting plans for VA contracts. It would also distinguish between veteran-owned firms and those owned by veterans with service-connected disabilities.
The bill directs the Secretary of Veterans Affairs, through the Director of Small and Disadvantaged Business Utilization, to exclude certain firms from the database, including businesses participating in mentor-protege programs or joint ventures and firms without at least two past prime contracts rated satisfactory or better under CPARS. The database would be made available to non-small-business offerors on VA contracts at appropriate points in the acquisition process, and VA would have to report to Congress within 180 days after the database is established on its use and on subcontracting outcomes. The measure is temporary and would sunset on December 31, 2028, and it must be implemented using existing personnel, systems, and funds without creating a new program or requiring additional appropriations.
Impact
The bill would amend federal veterans contracting administration by adding a new VA-managed subcontractor database tied to the small business contracting goals in title 38, U.S. Code, section 8127. It would affect how VA contractors identify and compete for subcontracting opportunities, potentially increasing visibility for certified veteran-owned and service-disabled veteran-owned firms in VA procurement. It also imposes reporting obligations on VA and limits implementation to existing resources, with no new appropriations authorized.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed as a practical procurement and small-business opportunity bill rather than a controversial policy change. Its stated purpose is to improve compliance with existing veteran contracting goals and to help contractors find qualified subcontractors, suggesting generally supportive intent toward veteran-owned businesses. No formal opposition, amendments, or recorded vote history is provided in the available context.
Contention
The main potential points of contention are the database exclusions and the administrative burden of maintaining and using the system. Excluding mentor-protege participants, joint ventures, and firms without sufficient past performance may be seen as narrowing the pool of eligible businesses, which could draw concern from some veteran-owned firms or procurement advocates. Others may question whether the database will meaningfully improve subcontracting outcomes given the requirement to use existing personnel and funds and the temporary sunset date.
Requiring subcontractors on public works contracts to be indemnified for certain expenses incurred as a result of late payments from a contractor or a subcontractor.
Requires State agencies to make good faith effort towards certain goals to use certified minority and women-owned businesses as prime contractors and subcontractors.
Office of Small, Minority, and Women Business Affairs - Repeal of Interdepartmental Advisory Committee and Establishment of the Governor's Subcabinet on Socioeconomic Procurement Participation
Further providing for duty of contractor; providing for registration of contractors and subcontractors, for registration fees, for proof of registration and for duties of contractors, subcontractors and the department; and further providing for remedies and penalties.