Senator Ernst (Photo: Senate EPW Republicans)
In an effort to curb fraudulent practices and uphold the integrity of federal contracting, U.S. Senator Joni Ernst (R-Iowa) has introduced provisions designed to reduce instances of stolen valor and fraud within businesses claiming to be Veteran-owned.
Senator Ernst’s proposed provisions have gained bipartisan support and are currently part of the Senate’s National Defense Authorization Act (NDAA). The provisions target businesses that falsely self-certify as service-disabled and Veteran-owned, posing a threat to legitimate Veteran-owned businesses and undermining the government’s goals.
Under the proposed provisions, small businesses that only self-certify as service-disabled and Veteran-owned would not be counted towards the government’s objective of allocating 3% of contracting dollars to such enterprises. The intent is to incentivize federal officials to award contracts to businesses that are formally certified, thereby discouraging fraudulent claims of Veteran ownership. This initiative reflects Senator Ernst’s commitment to preserving the integrity of federal contracting and supporting genuine Veteran entrepreneurs.
The American Legion has expressed its support for Senator Ernst’s initiatives. The Legion argues that self-certification loopholes have allowed imposters to exploit government contracting benefits meant exclusively for service-disabled Veteran-owned small businesses, or SDVOSBs. Such fraudulent practices directly contribute to stolen valor and defraud American taxpayers. The Legion’s endorsement of Senator Ernst’s efforts underscores the urgency of addressing these challenges and ensuring that the sacrifices of genuine Veterans are respected and honored.
Despite concerns from the public regarding potential fraud, the self-certification process has remained in place. The Small Business Administration (SBA) argues that self-certification aligns with other comparable programs, such as the Women-Owned Small Business Program.
In response to these challenges, Senator Ernst’s proposed provisions emphasize the importance of formal certification. Businesses seeking this certification would need to undergo a straightforward process, which would take approximately three hours and incur a cost of $280.32 for each applicant, as estimated by the SBA. Although not completely eliminating self-certification, this approach prioritizes businesses that have taken the additional step of acquiring formal certification, thereby promoting greater transparency and accountability.
Nevertheless, the SBA intends to conduct a thorough review and potentially phase out all self-certification programs over time.
While Senator Ernst’s provisions have gained traction, their ultimate impact will be determined by the legislative process and the broader commitment to preserving the integrity of federal contracting.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted connection to the military, a spouse who is a Navy veteran, a father who served in the Air Force for 25 years, and a grandfather who proudly served, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.
