|
|
| News |
October 21, 2004
President Bush Signs HR 2297 Providing Substantial Benefits for Service Disabled Veteran Owned Businesses
President Bush Signs HR 2297 Providing Substantial Benefits for Service Disabled Veteran Owned Businesses In an Oval Office ceremony held December 16, 2003, President Bush signed H.R. 2297, the Veterans Benefits Act of 2003.H.R. 2297 authorizes a new procurement program that will boost federal contract opportunities for service-disabled, veteran-owned small businesses. Federal contract dollars to service-disabled veterans increased from $298 million in fiscal year 2002 to $510 million in FY 2003. The regulations being issued will help to ensure that Americans who served in the United States Armed Forces will continueto have fair and open access to contracting opportunities.
The new legislation will amend sections of the Code of Federal Regulations, adding provisions that will allow contracting officers to restrict contract awards to service-disabled, veteran-owned small businesses when there is a reasonable expectation that two or more service-disabled veteran-owned, small businesses will submit bids at a fair market price. It also allows awards of sole-source contracts to service-disabled, veteran-owned small businesses when there is not a reasonable expectation that two or more service-disabled, veteran-owned firms will submit bids and the anticipated contract price does not exceed $3 million, with the exception of manufacturing contracts where the contracting threshold is $5 million.
Service-disabled veteran-owned small businesses are eligible for sole source contracts and restricted competitions. All contracts valued at $100,000 or more include a clause, which requires the prime contractor to provide the maximum practicable opportunity to service-disabled veteran-owned small businesses to compete for subcontracts.
"For service-disabled veterans who own or want to start a small business, this new law requires federal agencies and departments to give special consideration during federal contracting and procurement. In 2002, disabled veteran-owned firms received only 0.13% in federal contracts, even though there is a 3% statutory goal," said Chairman Smith. The 3% contract goal for Federal agencies applies only to service-disabled veteran-owned businesses. "In addition, veterans, disabled veterans, and their dependents will now be able to use their veterans educational benefits to cover self-employment training and entrepreneurship courses," he said.
As enacted, H.R. 2297, the Veterans Benefits Act of 2003: Allows federal agencies to create "sole-source" contracts for service-disabled veteran-owned small businesses - up to $5 million for manufacturing contract awards and up to $3 million for non-manufacturing contract awards.
What does this mean? There is a 3% Federal prime contract and 3% subcontracting goal for all Federal agencies to achieve that applies to service-disabled veteran-owned small businesses. The 3 % contract goal for Federal agencies applies only to service-disabled veteran-owned businesses.
|
|
Allows federal agencies to create "sole-source" contracts for service-disabled veteran-owned small businesses - up to $5 million for manufacturing contract awards and up to $3 million for non-manufacturing contract awards.
|
