SB3964, titled the Contract Our Veterans Act of 2026, would amend the Small Business Act to create a new federal contracting framework for small business concerns owned and controlled by veterans. The bill authorizes sole-source awards and veteran-restricted competitions for contracts above the simplified acquisition threshold when the contracting officer determines the veteran-owned firm is responsible and the price is fair and reasonable. It also requires that both the business and the veteran owner be listed in the relevant federal database to be eligible for these awards.
The bill further establishes a governmentwide goal that at least 5 percent of the total value of all prime contract and subcontract awards each fiscal year go to veteran-owned small businesses. It expands federal reporting, scorecard, mentor-protege, business utilization, and subcontracting provisions so veteran-owned firms are tracked alongside women-owned, HUBZone, service-disabled veteran-owned, and socially and economically disadvantaged businesses. It also updates procurement references throughout the Small Business Act so veteran-owned firms are included in agency outreach, best-in-class procurement, and subcontracting compliance rules.
Impact
If enacted, the bill would amend multiple sections of the Small Business Act to add veteran-owned small businesses as a distinct category in federal procurement policy. It would create a new section 36B governing veteran-owned set-asides and sole-source awards, require agencies to measure and report veteran-owned participation, and direct small business specialists and utilization offices to incorporate the new program into their responsibilities. The practical effect would be to increase the visibility and potential contracting opportunities for veteran-owned firms in federal procurement, while also imposing new reporting and compliance obligations on agencies and contracting officers.
Sentiment
The available legislative record shows no committee transcript, no recorded votes, and only an initial referral to the Senate Committee on Small Business and Entrepreneurship. Based on the bill text, the measure appears strongly supportive of veteran-owned small businesses and is framed as an expansion of federal procurement opportunities for veterans. Because there is no recorded debate or vote history in the provided materials, there is no documented opposition or bipartisan sentiment to assess from the record.
Contention
The main policy issue likely to draw attention is the creation of a 5 percent governmentwide contracting goal for veteran-owned firms and the authorization of sole-source and veteran-restricted competitions. Supporters would likely view these provisions as overdue assistance for veteran entrepreneurs, while critics could question whether the new goal and set-aside authority could reduce competition or complicate procurement administration. Another possible point of contention is the bill’s broad reporting and tracking requirements, which may be seen as necessary accountability by supporters but as added administrative burden by agencies or contracting officials.