The Contract Our Vets Act was introduced by Rep. Randy Fine (R-Fla.) in early February. (Photo: Elijah Mears)
Shared by U.S. Army Veteran and Newport Harbor Post 291 Legionnaire Ken Shoemake.
The Contract Our Veterans Act (S. 3964 / H.R. 7534) extends the VA’s proven Veterans First contracting model to every federal agency. It gives Veteran-owned small businesses (VOSBs) a first look at federal contracting opportunities, with no mandates, quotas, or additional taxpayer cost. The policy rests on five pillars: domestic manufacturing and supply chain security, defense readiness, Veteran economic opportunity and suicide prevention, military recruiting, and procurement integrity.
THE PROBLEM: AN ERODING VETERAN INDUSTRIAL BASE
America’s small business defense contracting base is in structural decline. Over 50% of small business federal contractors have exited the market in the last decade; new entrants are down 63%. At the same time, 75% of existing SDVOSB owners are over age 55. The Veteran entrepreneur base is aging out without a successor generation, leaving a shrinking domestic supplier network increasingly dependent on foreign and adversarial supply chains for critical defense inputs.
The DoD Inspector General has identified roughly $500 million in contracts awarded to fraudulent SDVOSB claimants who bypassed SBA verification. That is both a fiscal integrity failure and a national security vulnerability.
THE SOLUTION: VETERANS FIRST, GOVERNMENT-WIDE
The VA’s Veterans First program has operated since 2006. Ricky Lemmon, a 32-year VA procurement official who implemented and administered the program at the SES level, documented the following outcomes:
- VOSB and SDVOSB participation expanded across all contracting categories at VA.
- The entire small business market at VA grew, including 8(a) and other set-asides, contrary to concerns the program would displace existing programs.
- Passthrough abuse was eliminated through SBA verification and authorized distributor requirements.
- Fair and reasonable pricing was maintained throughout. Contracting officers awarded at market-competitive rates.
- No new bureaucracy, no quotas, and no changes to acquisition integrity or oversight were required.
Lemmon also noted that Veteran-owned businesses are more mission-focused, less likely to seek excessive change orders, and faster to respond when performance issues arise.
WORKFORCE, MENTAL HEALTH, AND RECRUITING
VA and DoD mental health data identify lack of gainful employment as a leading driver of Veteran suicide. Expanded VOSB contracting creates economic pathways for transitioning Service Members, providing purpose and income proven to reduce suicide risk. The legislation is projected to create 50,000 new Veteran-owned small businesses and 250,000 new Veteran jobs.
VETS First also functions as a military recruiting tool. Service Members who know that enlistment can lead directly to post-service business opportunities in the federal marketplace are more likely to enlist, building both military readiness and long-term economic strength.
SUPPLY CHAIN AND NATIONAL SECURITY
Veteran-owned small businesses are American-owned and American-controlled by statute. They cannot be acquired or redirected by foreign adversaries. Prioritizing them in federal contracting reshores domestic manufacturing capacity, closes supply chain vulnerabilities, and strengthens the defense industrial base without new mandates or departure from established procurement standards.
LEGISLATIVE DESIGN: NO NEW COST OR BUREAUCRACY
The Contract Our Veterans Act creates no new agencies, establishes no quotas, and requires no new appropriations. It uses existing contracting authorities and the SBA’s verification database. Contracting officers retain full discretion to award on merit, past performance, and price reasonableness. The bill provides a first-look priority, not a guarantee, and preserves all existing small business set-aside programs.
CONCLUSION AND REQUEST
Veterans First at the VA is a proven, 20-year success story. S. 3964 and H.R. 7534 extend that model government-wide, delivering benefits for national security, the veteran workforce, domestic manufacturing, and procurement integrity at no additional cost.
About Ken Shoemake
Newport Harbor Post 291 Legionnaire Ken Shoemake served with the U.S. Army, 3rd Infantry Division during the Vietnam Era. He currently owns Stay Safe Solutions, Inc., a service-disabled veteran business bidding, fulfilling and servicing government contracts.
Author: caLegion Contributor
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