Service-Disabled Veteran Opportunities in Small Business Act
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- Crpt 118Hrpt202
Summary
House Report 118–202 of the 118th Congress, 1st Session, submitted September 19, 2023 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 3511, the Service-Disabled Veteran Opportunities in Small Business Act. The committee reports the bill favorably without amendment; it ordered the bill reported on May 23, 2023, with no amendments offered. The report states the bill would require the SBA to train federal agencies that fail to meet the three percent contracting goal for Service-Disabled Veteran Owned Small Businesses, issue guidance within 180 days and report annually to Congress. It includes the Congressional Budget Office cost estimate that implementing H.R. 3511 would cost $1 million over the 2024–2028 period. The report also sets out the required House rule statements and the changes to SEC. 36 of the Small Business Act.
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118TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 118–202
SERVICE-DISABLED VETERAN OPPORTUNITIES IN SMALL
BUSINESS ACT
SEPTEMBER 19, 2023.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
[To accompany H.R. 3511]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the bill
(H.R. 3511) to amend the Small Business Act to require training
on increasing contract awards to small business concerns owned
and controlled by service-disabled veterans, and for other purposes,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 2
II. Need for Legislation .................................................................................... 2
III. Hearings ....................................................................................................... 2
IV. Committee Consideration ........................................................................... 2
V. Committee Votes ......................................................................................... 2
VI. Section-by-Section of H.R. 3511 ................................................................. 5
VII. Congressional Budget Office Cost Estimate ............................................. 5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 6
IX. Oversight Findings & Recommendations .................................................. 6
X. Performance Goals and Objectives ............................................................ 6
XI. Statement of Duplication of Federal Programs ........................................ 6
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 7
XIII. Federal Mandates Statement ..................................................................... 7
XIV. Federal Advisory Committee Statement ................................................... 7
XV. Applicability to Legislative Branch ........................................................... 7
XVI. Statement of Constitutional Authority ...................................................... 7
XVII. Changes in Existing Law, Made by the Bill, As Reported ...................... 7
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2
PURPOSE AND BILL SUMMARY
The purpose of H.R. 3511, the ‘‘Service-Disabled Veteran Oppor-
tunities in Small Business Act’’ is to require training on increasing
contract awards to small business concerns owned and controlled
by service-disabled veterans.
H.R. 3511 amends the Small Business Act to require the Small
Business Administration (SBA) to provide training to federal agen-
cies who fail to meet the contracting goal for Service-Disabled Vet-
eran Owned Small Businesses on how to increase awards to those
firms.
II. NEED FOR LEGISLATION
Veterans bring unique skills to federal procurement which can
benefit procurement agencies. Skills such as leadership, teamwork,
and perseverance can help agencies meet their missions.
The Small Business Act (15 U.S.C. 644 (g)(1)(A)(ii)) sets a goal
for federal agencies to spend three percent of their procurement
with Service-Disabled Veteran Owned Small Businesses
(SDVOSBs). According to the SBA’s FY21 Government-Wide Pro-
curement Scorecard, not every federal agency has met this required
goal. In fact, in FY21 six agencies failed at awarding three percent
of their awards to SDVOSBs and the entire federal government
failed to meet its three percent subcontracting goal for SDVOSBs.
Agencies failing to meet the statutorily mandated goals prevent
those who protected America from thriving in the procurement
space. This legislation will educate agencies on how to best reach
SDVOSBs and ensure they have adequate opportunities to compete
for government contracts.
III. HEARINGS
In the 118th Congress, the Committee held one hearing exam-
ining the issues covered in H.R. 3511 on May 11, 2023, at 2:00 p.m.
The Subcommittee on Contracting and Infrastructure held a hear-
ing examining small business contracting and heard from a Serv-
ice-Disabled Veteran Owned Small Business.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on May 23, 2023, and ordered H.R. 3511 fa-
vorably reported to the House of Representatives. During the
markup no amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 3511 to the House of Representatives
at 2:54 p.m.
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VI. SECTION-BY-SECTION OF H.R. 3511
Section 1. Short title
This section designates the bill as the ‘‘Service-Disabled Veteran
Opportunities in Small Business Act.’’
Section 2. Training on increasing contract awards to small business
concerns owned and controlled by Service-Disabled Veterans
This section amends the Small Business Act to require the SBA
to provide training to agencies who fail to meet the statutorily
mandated Service-Disabled Veteran Owned Small Business
(SDVOSB) contracting goals. The Small Business Act currently sets
a government wide goal for agencies to award 3 percent of all con-
tracts to SDVOSB firms.
Subsection (1) In General. The SBA Administrator and the SBA
Office of Veterans Business Development will provide training to
agency officials at agencies that fail to meet the SDVOSB goal on
how to increase the contracts awarded to SDVOSBs.
Subsection (2) Guidance. No later than 180 days the SBA shall
provide agencies guidance and best practices on how to increase
awards to small business owned by SDVOSB.
Subsection (3) Report. No later than 1 year and annually after,
SBA shall provide a fiscal year report that lists agencies that failed
to meet the SDVOSB goal, number of trainings SBA provided, and
overview of training content.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its as its own the cost esti-
mate prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of 1974.
H.R. 3511 would require the Small Business Administration
(SBA) to issue guidance to federal agencies on how to increase the
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number of contracts awarded to service-disabled veteran-owned
small businesses (SDVOSBs). Under current law, the SDVOSB
Procurement Program, administered by the SBA, assists federal
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agencies in awarding at least 3 percent of the total value of prime
contract and subcontract dollars to such small businesses. The bill
would direct the SBA to provide training to the agencies that have
not met that statutory goal and report annually to the Congress.
Agency contracting goals are set in coordination with the SBA
and only a small number of agencies do not meet their individual
contracting goals each year. Using information from the SBA, CBO
expects it would need one employee over the 2024–2028 period, at
a cost of $170,000 annually, to train agencies that do not meet
their goals and fulfill the reporting requirements. On that basis,
CBO estimates that implementing H.R. 3511 would cost $1 million
over the 2024–2028 period; any spending would be subject to the
availability of appropriated funds.
The CBO staff contact for this estimate is David Hughes. The es-
timate was reviewed by H. Samuel Papenfuss, Deputy Director of
Budget Analysis.
PHILLIP L. SWAGEL,
Director, Congressional Budget Office.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND
TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. The Committee does not believe that
there will be any additional costs attributable to this legislation.
H.R. 3511 does not direct new spending, but instead reallocates
funding independently authorized and appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.R.
3511 are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(1) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 3511 is to require an annual report from
SBA to Congress with a list of federal agencies who failed to meet
their SDVOSB goal, the number of trainings SBA provided to each
agency, and an overview of training content.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 3511 is known to be dupli-
cative of another Federal program, including any program that was
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included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
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XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW, MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (new matter is printed in italics
and existing law in which no change is proposed is shown in
roman):
SMALL BUSINESS ACT
* * * * * * *
SEC. 36. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS
OWNED AND CONTROLLED BY SERVICE-DISABLED VET-
ERANS.
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(a) CONTRACTING OFFICER DEFINED.—For purposes of this sec-
tion, the term ‘‘contracting officer’’ has the meaning given such
term in section 2101 of title 41, United States Code.
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(b) CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.—With respect to a
procurement program or preference established under this Act that
applies to prime contractors, the Administrator shall—
(1) certify the status of a concern as a small business concern
owned and controlled by service-disabled veterans; and
(2) require the periodic recertification of such status.
(c) SOLE SOURCE CONTRACTS.—In accordance with this section, a
contracting officer may award a sole source contract to any small
business concern owned and controlled by service-disabled veterans
if—
(1) such concern is determined to be a responsible contractor
with respect to performance of such contract opportunity and
the contracting officer does not have a reasonable expectation
that 2 or more small business concerns owned and controlled
by service-disabled veterans will submit offers for the con-
tracting opportunity;
(2) the anticipated award price of the contract (including op-
tions) will not exceed—
(A) $7,000,000, in the case of a contract opportunity as-
signed a standard industrial classification code for manu-
facturing; or
(B) $3,000,000, in the case of any other contract oppor-
tunity; and
(3) in the estimation of the contracting officer, the contract
award can be made at a fair and reasonable price.
(d) RESTRICTED COMPETITION.—In accordance with this section, a
contracting officer may award contracts on the basis of competition
restricted to small business concerns owned and controlled by serv-
ice-disabled veterans certified under subsection (b) if the con-
tracting officer has a reasonable expectation that not less than 2
small business concerns owned and controlled by service-disabled
veterans will submit offers and that the award can be made at a
fair market price.
(e) RELATIONSHIP TO OTHER CONTRACTING PREFERENCES.—A pro-
curement may not be made from a source on the basis of a pref-
erence provided under subsection (a) or (b) if the procurement
would otherwise be made from a different source under section
4124 or 4125 of title 18, United States Code, or the Javits-Wagner-
O’Day Act (41 U.S.C. 46 et seq.).
(f) DATABASE OF VETERAN-OWNED BUSINESSES.—(1) Subject to
paragraphs (2) through (6), the Administrator shall maintain a
database of small business concerns owned and controlled by vet-
erans, small business concerns owned and controlled by service-dis-
abled veterans, and the veteran owners of such business concerns.
(2)(A) To be eligible for inclusion in the database, such a veteran
shall submit to the Administrator such information as the Adminis-
trator may require with respect to the small business concern or
the veteran. Application for inclusion in the database shall con-
stitute permission under section 552a of title 5, United States
Code, (commonly referred to as the Privacy Act) for the Adminis-
trator to obtain from the Secretary of Veterans Affairs such per-
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sonal information maintained by the Secretary as may be nec-
essary to verify the information contained in the application.
(B) For purposes of this subsection—
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(i) the Secretary of Veterans Affairs shall—
(I) verify an individual’s status as a veteran or a service-
disabled veteran; and
(II) establish a system to permit the Administrator to ac-
cess, but not alter, the verification of such status; and
(ii) the Administrator shall verify—
(I) the status of a business concern as a small business
concern; and
(II) the ownership and control of such business concern.
(C) The Administrator may not certify a concern under sub-
section (b) or section 36A if the Secretary of Veterans Affairs can-
not provide the verification described under subparagraph (B)(i)(I).
(3) Information maintained in the database shall be submitted on
a voluntary basis by a veteran described in paragraph (1).
(4) the Administrator shall make the database available to all
Federal departments and agencies and shall notify each such de-
partment and agency of the availability of the database.
(5) If the Administrator determines that the public dissemination
of certain types of information maintained in the database is inap-
propriate, the Administrator shall take such steps as are necessary
to maintain such types of information in a secure and confidential
manner.
(6)(A) If a small business concern is not included in the database
because the Administrator does not certify the status of the concern
as a small business concern owned and controlled by veterans
(under section 36A) or a small business concern owned and con-
trolled by service-disabled veterans (under subsection (g) of this
section), the concern may appeal the denial of certification to the
Office of Hearings and Appeals of the Administration (as estab-
lished under section 5(i)). The decision of the Office of Hearings
and Appeals shall be considered a final agency action.
(B)(i) If an interested party challenges the inclusion in the data-
base of a small business concern owned and controlled by veterans
or a small business concern owned and controlled by service-dis-
abled veterans based on the status of the concern as a small busi-
ness concern or the ownership or control of the concern, the chal-
lenge shall be heard by the Office of Hearings and Appeals as de-
scribed in subparagraph (A). The decision of the Office of Hearings
and Appeals shall be considered final agency action.
(ii) In this subparagraph, the term ‘‘interested party’’
means—
(I) the Secretary of Veterans Affairs or the Adminis-
trator; or
(II) in the case of a small business concern that is
awarded a contract, the applicable contracting officer or
another small business concern that submitted an offer for
the contract that was awarded to the small business con-
cern that is the subject of a challenge made under clause
(i).
(g) CERTIFICATION REQUIREMENT.—Notwithstanding subsection
(c), a contracting officer may only award a sole source contract to
a small business concern owned and controlled by service-disabled
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veterans or a contract on the basis of competition restricted to
small business concerns owned and controlled by service-disabled
veterans if such a concern is certified by the Administrator as a
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10
small business concern owned and controlled by service-disabled
veterans.
(h) ENFORCEMENT; PENALTIES.—
(1) VERIFICATION OF ELIGIBILITY.—In carrying out this sec-
tion, the Administrator shall establish procedures relating to—
(A) the filing, investigation, and disposition by the Ad-
ministration of any challenge to the eligibility of a small
business concern to receive assistance under this section
(including a challenge, filed by an interested party, relat-
ing to the veracity of a certification made or information
provided to the Administration by a small business con-
cern under subsection (b)); and
(B) verification by the Administrator of the accuracy of
any certification made or information provided to the Ad-
ministration by a small business concern under subsection
(b).
(2) EXAMINATIONS.—The procedures established under para-
graph (1) shall provide for a program of examinations by the
Administrator of any small business concern making a certifi-
cation or providing information to the Administrator under
subsection (b), to determine the veracity of any statements or
information provided as part of such certification or otherwise
provided under subsection (b).
(3) ENFORCEMENT; PENALTIES.—Rules similar to the rules of
paragraphs (5) and (6) of section 8(m) shall apply for purposes
of this section and section 36A.
(i) PROVISION OF DATA.—Upon the request of the Administrator,
the head of any Federal department or agency shall promptly pro-
vide to the Administrator such information as the Administrator
determines to be necessary to carry out subsection (b) or to be able
to certify the status of the concern as a small business concern
owned and controlled by veterans under section 36A.
(j) TRAINING ON INCREASING CONTRACT AWARDS TO SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED
VETERANS.—
(1) IN GENERAL.—The Administrator, in consultation with the
Office of Veterans Business Development, shall provide to cov-
ered employees at each Federal agency that has not met the goal
established under section 15(g)(1)(A)(ii) training on how to in-
crease the number of contracts awarded to small business con-
cerns owned and controlled by service-disabled veterans.
(2) GUIDANCE.—Not later than 180 days after the date of the
enactment of this Act, the Administrator, in consultation with
the Office of Veterans Business Development, shall issue guid-
ance and best practices on increasing the number of contracts
awarded to small businesses owned and controlled by service
disabled veterans for Federal agencies to which the goal estab-
lished under section 15(g)(1)(A)(ii) applies.
(3) REPORT.—Not later than 1 year after the date of enact-
ment of this Act, and annually thereafter, the Administration
shall submit to Congress a report detailing, for the fiscal year
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covered by the report—
(A) a list of each Federal agency that failed to meet the
goal established under section 15(g)(1)(A)(ii);
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(B) the number of trainings provided to each Federal
agency described in paragraph (1); and
(C) an overview of the content included in such training
sessions.
* * * * * * *
Æ
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