ICYMI: Bergman's Veterans Small Business Bill Signed Into Law

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Washington, November 12, 2020 | comments
H.R. 561, the Protecting Business Opportunities for Veterans Act of 2019, was recently signed into law by President Donald Trump. Rep. Jack Bergman’s legislation will improve the Department of Veterans Affairs’(VA) ability to eliminate potential fraud in the Vets First Program, and it was introduced with bipartisan support from Reps. Annie Kuster (D-NH) and Dr. Neal Dunn (R-FL).

Rep. Bergman stated, "I'm thankful for the support around this critical new law to safeguard Veteran-owned businesses. The VA will now have the tools to crack down on bad actors in the Vets First Program and ensure we protect the law-abiding Veteran business owners who want to perform the work on behalf of their fellow Veterans. H.R. 561 is an example of lawmakers and stakeholders putting partisan politics aside to honor our Veterans and their continuing contributions to our Nation."

You can read the White House announcement here.

Background Information:

The Protecting Business Opportunities for Veterans Act prevents “improper pass-throughs,” a practice in which companies leverage Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small Business (VOSB) status to obtain contracts, yet subcontract out all or substantially all of the work to a large company and nonetheless collect the profit. This practice is already illegal but in reality, the VA lacks the tools to detect them and enforce the rules. The VA Inspector General has noted numerous instances of such procurement fraud.

This bill requires every bidder in the Vets First Program to certify that they will perform the agreed percentage of work required by law.  Additionally, the VA must refer suspected violators to the Office of the Inspector General for investigation, as well as consider a more effective way to find, stop, and where appropriate, punish these improper pass-throughs.

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