The Department of Veterans Affairs is one of the largest buyers in the federal government. It runs a national health care system, administers benefits and operates national cemeteries, and each of those missions depends on contractors: medical supplies and equipment, pharmaceuticals, facility construction and maintenance, information technology, professional services and much more. For small businesses, and especially veteran-owned ones, the VA is distinctive because its contracting is shaped by a statute that applies to no other agency in the same way. This profile is general; check va.gov and the current regulations for details.
Veterans First
The Veterans Benefits, Health Care, and Information Technology Act of 2006 created what the VA calls its Veterans First contracting program. The law directs the VA to give priority to small businesses owned and controlled by veterans, and the VA’s regulations set an order of priority that places service-disabled veteran-owned small businesses first and other veteran-owned small businesses second, ahead of other small business categories. In general, when a contracting officer has a reasonable expectation that two or more veteran-owned small businesses will submit offers and that award can be made at a fair and reasonable price that offers best value, the acquisition is set aside for them. The statute also allows sole-source awards to veteran-owned firms in certain circumstances.
In 2016, the Supreme Court held in Kingdomware Technologies v. United States that this rule of two is mandatory and applies to the VA’s contracting determinations generally, including orders that might otherwise go through Federal Supply Schedules. The decision made the veteran-owned preference central to how the VA plans its acquisitions.
Certification
To benefit from VA set-asides, veteran-owned firms must be certified. The VA verified firms itself for many years, but since 2023 certification of both veteran-owned and service-disabled veteran-owned small businesses has been handled by the U.S. Small Business Administration through its Veteran Small Business Certification program. Firms should keep their certification current and confirm their status before quoting VA set-asides.
How the VA buys
VA contracting is spread across national and regional organizations. National acquisition centers handle enterprise-wide needs, including major technology and medical programs. Regional contracting offices support the VA’s health care networks, buying the services, supplies and construction that medical centers need. The VA also manages a set of Federal Supply Schedules for medical, pharmaceutical and related products and services under authority delegated by GSA, separate from GSA’s own Multiple Award Schedule. VA acquisitions follow the FAR and the VA’s own supplement, the VA Acquisition Regulation, which contains the Veterans First rules and other agency-specific requirements.
Getting started with the VA
- Read the VA’s procurement forecast for upcoming requirements in your field.
- Contact the VA’s Office of Small and Disadvantaged Business Utilization, which helps small firms understand how to do business with the department.
- Learn which VA offices buy what you sell, using award data on SAM.gov and usaspending.gov.
- If you sell medical products, review the requirements for the VA’s own schedules.
- Keep your SAM.gov registration and certifications current.
Veteran-owned status opens doors at the VA, but capability, compliance and responsiveness win the work. The VA’s small business office publishes guidance for new vendors on va.gov.