Protecting Business Opportunities for Veterans Act of 2019
Floor Speech
BREAK IN TRANSCRIPT
Mr. TAKANO. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 561) to amend title 38, United States Code, to improve the oversight of contracts awarded by the Secretary of Veterans Affairs to small business concerns owned and controlled by veterans, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 561
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Business Opportunities for Veterans Act of 2019''. SEC. 2. LIMITATIONS ON SUBCONTRACTS UNDER CONTRACTS WITH SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS.
(a) In General.--Section 8127 of title 38, United States Code, is amended--
(1) by redesignating subsection (k) as subsection (l); and
(2) by inserting after subsection (j) the following new subsection (k):
``(k) Limitations on Subcontracting.--(1)(A) The requirements applicable to a covered small business concern under section 46 of the Small Business Act (15 U.S.C. 657s) shall apply with respect to a small business concern owned and controlled by veterans that is awarded a contract under this section.
``(B) For purposes of applying the requirements of section 46 of the Small Business Act (15 U.S.C. 657s) pursuant to subparagraph (A), the term `similarly situated entity' used in such section 46 includes a subcontractor for a small business concern owned and controlled by veterans described in such subparagraph (A).
``(2) The Secretary may award a contract under this section only after the Secretary obtains from the offeror a certification that the offeror will comply with the requirements described in paragraph (1)(A) if awarded the contract. Such certification shall--
``(A) specify the exact performance requirements applicable under such paragraph; and
``(B) explicitly acknowledge that the certification is subject to section 1001 of title 18.
``(3)(A) The Director of Small and Disadvantaged Business Utilization for the Department, established pursuant to section 15(k) of the Small Business Act (15 U.S.C. 644(k)), and the Chief Acquisition Officer of the Department, established pursuant to section 1702 of title 41, shall jointly implement a process using the systems described in section 16(g)(2) of the Small Business Act (15 U.S.C. 645(g)(2)), and any other relevant systems available, to monitor compliance with this subsection.
``(B) The Director of Small and Disadvantaged Business Utilization and the Chief Acquisition Officer shall jointly refer any violations or suspected violations of this subsection to the Inspector General of the Department.
``(C) If the Secretary determines, in consultation with the Inspector General of the Department, that a small business concern that is awarded a contract under this section did not act in good faith with respect to the requirements described in paragraph (1)(A), the small business concern shall be subject to any or all of the following consequences--
``(i) referral to the Debarment and Suspension Committee of the Department;
``(ii) a fine under section 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and
``(iii) prosecution for violating section 1001 of title 18.
``(D) Not later than November 30 for each of fiscal years 2021 through 2025, the Inspector General shall submit to the Committees on Veterans' Affairs of the Senate and House of Representatives a report for the fiscal year preceding the fiscal year during which the report is submitted that includes, for the fiscal year covered by the report--
``(i) the number of referred violations and suspected violations received under subparagraph (B); and
``(ii) the disposition of such referred violations, including the number of small business concerns suspended or debarred from Federal contracting or referred to the Attorney General for prosecution.''.
(b) Application.--Subsection (k) of section 8127 of title 38, United States Code, as added by subsection (a), shall apply with respect to a contract entered into after the date of the enactment of this Act.
BREAK IN TRANSCRIPT
Mr. TAKANO. 561, as amended.
BREAK IN TRANSCRIPT
Mr. TAKANO. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, H.R. 561, as amended, the Protecting Business Opportunities for Veterans Act of 2019, is sponsored by General Bergman and Congresswoman Kuster. It establishes important oversight for VA small business contracting.
Under current law, a small business contractor cannot give a subcontractor more than 50 percent of its contract work. The legislation requires veteran- and service-disabled veteran-owned small businesses to certify that they are performing at least half of the work. It also requires VA to refer contractors violating or suspected of violating the law to the VA Inspector General for investigation.
Madam Speaker, in addition, the legislation establishes an oversight process and penalties for fraudulently claiming to comply with the law.
Congress strongly supports creating business opportunities for veteran-owned small businesses and enforcing government contracting set-asides so that veteran-owned and service-disabled veteran-owned businesses can compete with larger government contractors.
It is unfair to veteran small business owners who play by the rules to lose out on business opportunities to bad actors who do not follow the rules and pass on most of the work to subcontractors, especially when those subcontractors are not veteran owned.
Madam Speaker, this bill is supported by the American Legion. Last Congress, the House passed identical legislation sponsored by my colleagues, General Bergman and Congresswoman Kuster.
Madam Speaker, I urge my colleagues to support H.R.
Mr. DAVID P. ROE of Tennessee. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise today in support of H.R. 561, as amended, the Protecting Business Opportunities for Veterans Act.
H.R. 561, as amended, is contracting reform legislation sponsored by my good friend, Lieutenant General Jack Bergman from Michigan, who is the ranking member of the Subcommittee on Oversight and Investigations.
This bill would give the Department of Veterans Affairs and the Office of Inspector General badly needed tools to stop companies that exploit contracting loopholes to take work from legitimate veteran- owned small businesses. It is crucial that the Federal procurement be fair and that veteran entrepreneurs actually receive the business opportunities that the law created for them.
Unfortunately, there have long been some fly-by-night small businesses that obtain set-aside contracts only to pass on all of the work to large businesses while collecting the profits. This is illegal, but the law is difficult to enforce.
This legislation requires a written certification in every contract proposal that the company will comply with the law. A false statement constitutes fraud, and the bill makes it the Inspector General's explicit responsibility to investigate such suspected fraud.
This bill is a smart fix for a difficult problem, and I appreciate General Bergman as well as Dr. Neal Dunn of Florida, my good friend and the ranking member of the Subcommittee on Health; and Congresswoman Ann Kuster of New Hampshire for their work on it going back several years. I urge all Members to support H.R. 561, as amended.
Lieutenant General Jack Bergman is my good friend. I think General Bergman is the highest-ranking veteran in the U.S. Congress in either the House or the Senate. He represents the Upper Peninsula in Michigan and has been a great member of the Veterans' Affairs Committee.
Madam Speaker, I yield 3 minutes to the gentleman from Michigan (Mr. Bergman).
BREAK IN TRANSCRIPT
Mr. TAKANO. Madam Speaker, in closing, I want to reiterate my support for H.R. 561. I want to appreciate the work with the minority. We have worked together to pass these five pieces of legislation on the floor. It is another demonstration of our commitment to put veterans above partisanship and to put the interests of America above partisanship.
Madam Speaker, I can't tell you what a privilege it is to chair this committee. I urge all my colleagues to pass H.R. 561, as amended, and I yield back the balance of my time.
BREAK IN TRANSCRIPT
Source