This bill creates new opportunities for veteran-owned small businesses to win federal government contracts. Right now, the government has goals for awarding contracts to women-owned and disadvantaged businesses, but veterans aren't specifically included in those targets. This bill fixes that by setting a government-wide goal that at least 5% of all federal contract money (both prime contracts and subcontracts) should go to veteran-owned small businesses each year.

The bill gives federal contracting officers new tools to help veteran-owned businesses compete. They can now award contracts directly to veteran-owned firms without holding a competitive bidding process, as long as the business is qualified and the price is fair. They can also limit competition to only veteran-owned businesses when multiple qualified firms exist. To use these programs, veteran-owned businesses must be registered in the Small Business Administration's database.

The bill also requires federal agencies to track and report how much contract money goes to veteran-owned businesses, breaking down the numbers by contract type and competition method. This reporting requirement helps ensure agencies are actually working toward the 5% goal. Various SBA offices and programs that help small businesses access federal contracts are updated to include veteran-owned businesses in their responsibilities and reporting requirements.