Legion supports new veteran small business law

Shortly after American Legion National Commander Michael D. Helm testified before Congress on The American Legion’s legislative priorities in February, Rep. Michael Fitzpatrick, R-Pa. successfully added an amendment to rail infrastructure legislation. The amendment directed the Secretary of Transportation to conduct “a nationwide disparity and availability study on the availability and use of certain classes of small businesses – including veteran-owned businesses.”

Seizing the momentum, Fitzpatrick also reintroduced the Fairness to Veterans for Infrastructure Investment Act. (H.R. 1694). This bill amends current legislation to add veteran-owned small businesses (VOSBs) to the list of entities eligible for the Department of Transportation's Disadvantaged Business Enterprise (DBE) program. Such an addition would not presume that veterans are “socially and economically disadvantaged.” Instead, VOSBs would become independently eligible for participation in the DBE program.

By law, the federal agencies are mandated to award no less than three percent of all federal contracts to service-disabled veteran-owned small businesses (SDVOSBs). For a number of reasons a few agencies have not met this goal. One of the most noteworthy exclusions of VOSBs occurs in the Department of Transportation's Disadvantaged Business Enterprise (DBE) program. Current legislation requires that states receiving federal dollars for infrastructure repairs have to set aside 10 percent for “preferred groups” of small businesses. However, VOSBs are excluded from participation.

“It is a misconception that this 10 percent is solely relegated to road and infrastructure construction firms. There are in fact a variety of industries involved, such as personnel, admin, engineering, landscaping, utilities and IT, so this is an issue that affects all veteran owned small businesses,” said Joe Sharpe, director of The American Legion’s Veterans Employment & Education Division. “The 2015 Fairness to Veterans for Infrastructure Investment Act is a bipartisan, common sense, and ‘no cost to the tax-payer’ update of existing legislation, that redresses the exclusion of veteran small businesses when the framework of the DBE program was originally drafted.”

The Fairness to Veterans for Infrastructure Investment Act is being introduced in the 114th Congress. Working in conjunction with The American Legion and other veteran service organizations, Fitzpatrick is developing a detailed strategy to win support from the administration, congressional committees and other members of Congress.