VA SUBCON Act

Bill Summary: VA SUBCON Act (H.R. 7795)

Overview

The Veterans Affairs Subcontractor Competition and Opportunity Network Act, or the VA SUBCON Act, aims to increase the participation of veteran-owned small businesses in Department of Veterans Affairs (VA) contracts. The bill mandates the creation of a specialized database to help large prime contractors identify and partner with qualified veteran-owned small businesses for subcontracting opportunities.

Main Purpose and Intent

The primary objective of this legislation is to help the Department of Veterans Affairs meet its federal small business contracting goals. By providing a centralized, searchable list of certified veteran-owned small businesses, the bill seeks to lower the barrier for these businesses to enter the federal supply chain as subcontractors.

Key Provisions

Creation of the Database

The Secretary of Veterans Affairs, via the Director of Small and Disadvantaged Business Utilization, must establish a database of SBA-certified small businesses owned and controlled by veterans. To ensure precise targeting of contracting goals, the database must distinguish between:
* Veteran-owned small businesses (without service-connected disabilities).
* Service-disabled veteran-owned small businesses.

Eligibility and Exclusions

To ensure the database focuses on independent organic growth and proven performance, certain entities are excluded:
* Joint Ventures/Mentor-Protégé Programs: Businesses currently utilizing these programs are ineligible for the database.
* Performance Threshold: Businesses must have at least two past prime contracts with a rating of "Satisfactory" or better in the Contractor Performance Assessment Reporting System (CPARS).

Accessibility for Prime Contractors

The VA will make this database available to "other-than-small businesses" (large corporations) during the acquisition process. This allows large firms to use the database when formulating their required small business subcontracting plans.

Oversight and Reporting

Within 180 days of the database's launch, the Secretary must submit a report to the House and Senate Committees on Veterans’ Affairs detailing:
* How the database is being used by large businesses.
* The number of veteran-owned businesses selected as subcontractors.
* Recommendations for improving the database's utilization.

Who is Affected?

• Veteran-Owned Small Businesses: Eligible businesses gain increased visibility to large prime contractors.
• Large Government Contractors: These firms will have a standardized tool to identify subcontractors to meet federal mandates.
• Department of Veterans Affairs: The VA will be responsible for maintaining the system using existing personnel and funds.

Procedural and Timeline Aspects

• Funding: The bill explicitly states that no new appropriations are authorized; the database must be implemented using existing resources.
• Sunset Provision: The requirements of this Act are temporary and will sunset on December 31, 2028.
• Current Status: Introduced and referred to the House Committee on Veterans' Affairs on March 4, 2026.