[Congressional Record Volume 163, Number 124 (Monday, July 24, 2017)]
[House]
[Pages H6176-H6178]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENSURING VETERAN ENTERPRISE PARTICIPATION IN STRATEGIC SOURCING ACT
Mr. ROE of Tennessee. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 2781) to direct the Secretary of Veterans Affairs
to certify the sufficient participation of small business concerns
owned and controlled and owned by veterans and small business concerns
owned by veterans with service-connected disabilities in contracts
under the Federal Strategic Sourcing Initiative, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2781
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 ``Ensuring Veteran Enterprise
Participation in Strategic Sourcing Act''.
SEC. 2. SECRETARY OF VETERANS AFFAIRS CERTIFICATION OF
SUFFICIENT PARTICIPATION OF SMALL BUSINESS
CONCERNS OWNED AND CONTROLLED BY VETERANS AND
SMALL BUSINESS CONCERNS OWNED BY VETERANS WITH
SERVICE-CONNECTED DISABILITIES IN CONTRACTS
UNDER THE FEDERAL STRATEGIC SOURCING
INITIATIVE.
(a) Certification Required.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of
Veterans Affairs shall submit to the Committees on Veterans'
Affairs of the House of Representatives and the Senate
certification in writing that with respect to each contract
(except for domestic delivery services) awarded under the
Federal Strategic Sourcing Initiative (managed by the Office
of Federal Procurement Policy) a sufficient number of small
business concerns owned and controlled by veterans and a
sufficient number of small business concerns owned and
controlled by veterans with service-connected disabilities
are represented within each category.
(b) Insufficient Representation.--If the Secretary
determines that the representation by small business concerns
owned and controlled by veterans or small business concerns
owned and controlled by veterans with service-connected
disabilities within a category of the contracts awarded under
such Federal Strategic Sourcing Initiative is not a
sufficient number, the Secretary shall--
(1) consult with the Administrator of the General Services
Administration to increase the number of such concerns
awarded contracts under such category; or
(2) require the Department of Veterans Affairs to stop
awarding orders under that category of the Initiative,
effective on the date of such determination.
(c) Definitions.--In this section:
(1) The terms ``small business concern owned and controlled
by veterans'' and ``small business concern owned and
controlled by veterans with service-connected disabilities''
have the meaning given such terms in section 8127(k) of title
38, United States Code.
(2) The term ``category'' means--
(A) a type of supply or service for which a suite of
contracts has been established under the Federal Strategic
Sourcing Initiative; or
(B) any further subdivision or grouping within such a suite
of contracts.
[[Page H6177]]
(3) The term ``sufficient number'', with respect to a type
of business concern, means not fewer than two and enough to
maximize the percentage of orders entered into by the
Secretary with such business concerns, as determined by the
Secretary.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Roe) and the gentleman from Minnesota (Mr. Walz) each
will control 20 minutes.
The Chair recognizes the gentleman from Tennessee.
General Leave
Mr. ROE of Tennessee. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
{time} 1600
Mr. ROE of Tennessee. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of H.R. 2781, as amended, the
Ensuring Veteran Enterprise Participation in Strategic Sourcing Act.
H.R. 2781 is another piece of thoughtful contracting legislation
sponsored by a hardworking member of the Veterans' Affairs Committee,
Dr. Neal Dunn. This bill will make sure that all small businesses owned
by veterans and service-disabled veterans are never excluded from a
particular group of contracts run by the General Services
Administration, or GSA.
Despite Congress' efforts to give our veterans maximum opportunity in
VA contracting, the system does not always work as it should. This bill
fixes a loophole that has cropped up recently and makes sure veteran
businesses are not inadvertently ignored when VA uses these GSA
contracts.
Mr. Speaker, I urge all of my colleagues to join me in supporting
H.R. 2781, as amended.
Mr. Speaker, I reserve the balance of my time.
Mr. WALZ. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 2781. As said, the bill would
require the VA Secretary and the General Services Administration to
increase the number of veteran-owned small businesses and service-
disabled veteran-owned small businesses on the Federal Strategic
Sourcing Initiative. The Federal Strategic Sourcing Initiative
increases cost savings, value, and socioeconomic participation for the
sourcing of government contracts and ensures that our government has a
community of businesses to strategically source from.
Ensuring more veteran-owned small business and service-disabled
veteran-owned small businesses are on the Federal Strategic Sourcing
Initiative means that taxpayer dollars are spent on contracts that add
value to the U.S. Government, at the same time supporting veteran-owned
businesses--smart legislation, again, the right thing to do.
Mr. Speaker, I urge my colleagues to support this piece of
legislation, and I reserve the balance of my time.
Mr. ROE of Tennessee. Mr. Speaker, I yield 3 minutes to the gentleman
from Florida (Mr. Dunn), a veteran and the author of the bill.
Mr. DUNN. Mr. Speaker, H.R. 2781 is a commonsense solution to a
complicated problem. I am proud to sponsor it with my good friend, the
gentleman from California (Mr. Panetta).
Over the last 10 years, Congress gave veteran and veteran service-
disabled veteran-owned small businesses the highest preference to
compete for VA contracts. Last year, the Supreme Court ruled in the
Kingdomware case that this preference applies in all situations, even
when VA uses contracts awarded by other agencies. A loophole has
emerged in a group of contracts called the Federal Strategic Sourcing
Initiative run by the General Services Administration.
Currently, the VA uses the GSA to connect them with suppliers of
certain goods and services that they need to purchase. All too often,
the GSA is not connecting the VA with enough small businesses that are
owned by veterans and service-disabled veterans. The law requires that
the VA look for these companies and buy from them when it can, if they
are competitive; but when the veteran businesses are not on the GSA
list, the VA can't find them or use them.
Because of the loophole, well-qualified veteran-owned companies are
being passed over. In some cases, VA disregards the GSA contracts and
finds veteran-owned companies elsewhere on their own, but this wastes
resources by creating contracts similar to what the GSA already has in
place.
This bill simply directs the VA Secretary to determine whether
veteran-owned and service-disabled veteran-owned small businesses are
sufficiently represented on the contracts for VA to follow the law. If
not, the VA must consult with the GSA to increase the representation on
all the contracts and their subcategories. Should this not be possible
on a particular contract or subcategory, the VA must stop using it.
I am honored that this bill has earned the support of the American
Legion, the Veterans of Foreign Wars, and the National Veteran Small
Business Coalition. We need to hold the VA accountable to the veterans
it serves, including our veteran and service-disabled small business
owners. It is the right thing to do, and I urge all Members to support
it.
Mr. WALZ. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. Panetta), one of the coauthors of this bill and a
veteran himself and a champion of veterans since he has been in
Congress.
Mr. PANETTA. Mr. Speaker, I rise today in support of H.R. 2781, the
Ensuring Veteran Enterprise Participation in Strategic Sourcing Act.
It is a bill that the kind gentleman from Florida and I have
sponsored so that it is easier for the Department of Veterans Affairs
to contract with the very veterans whom they serve.
As a veteran and someone who has worked with veterans, I understand
the challenges our servicemembers can face when they transition from
military to civilian life. That is why we in Congress are working to
serve those who served us by opening every opportunity for our veterans
to thrive and contribute not just to our communities, but to our
country.
Throughout the United States, there are many quality veteran and
service-disabled veteran-owned small businesses that sell office and
janitorial supplies or provide building maintenance services. Those
businesses and the government would mutually benefit if the businesses
seeking Federal contracts were given a fair chance to compete.
But as it stands now, veteran and service-disabled veteran-owned
small businesses are losing out on such opportunities because of an
unintentional loophole when the VA contracts with the General Services
Administration, the GSA, for office and janitorial services, equipment,
and supplies.
Now, that loophole opened up last year when the VA implemented the
Kingdomware Supreme Court ruling. Normally, when it comes to its
contracts, the VA ensures that veteran-owned small businesses are
considered in the bidding process. But the Kingdomware ruling required
that the VA set aside contracts for veteran-owned small businesses when
there are two or more companies that are interested, capable, and can
perform at a fair and reasonable price. So when the VA contracts with
the GSA for janitorial or office supplies, the GSA is not giving
veteran-owned businesses the proper consideration for those types of
contracts; thus, the requirement to consider veteran-owned businesses
is not being implemented.
Fortunately, this bill, our bill, Democrats' and Republicans' bill,
would close that loophole. It would require the VA Secretary to work
with the GSA to increase the number of service-disabled veteran and
veteran-owned small businesses represented in that contracting process.
The bill would eliminate that barrier that limited our veterans and
their businesses from contracting with the government. It is a solution
that is fair to veteran entrepreneurs. It is a bill that has strong
bipartisan support. It is a bill that moved through the House Veterans'
Affairs Committee with unanimous consent, and it is a bill that all of
us are proud of, Democrats and Republicans, and that is why I am proud
to sponsor this bill. I am proud to present it to you with the
gentleman from Florida because it will do
[[Page H6178]]
what is smart for our country's veterans, and that is why I encourage
my colleagues to support this bill.
Mr. ROE of Tennessee. Mr. Speaker, I yield 2 minutes to the gentleman
from Illinois (Mr. Bost), the subcommittee chair on the committee and a
marine veteran.
Mr. BOST. Mr. Speaker, I rise today in support of H.R. 2781, the
Ensuring Veteran Enterprise Participation in Strategic Sourcing Act.
This important legislation clarifies that veteran-owned small
businesses should be given proper consideration for contracts with the
Department of Veterans Affairs. It will help to ensure that our
contracting is efficient and fair to our Nation's veterans.
The VA has a special responsibility to maximize business
opportunities for our heroes when they come home from serving abroad.
Helping veteran-owned small businesses succeed is a bipartisan effort,
as you have heard already here today. I am happy to see so many of my
colleagues support it.
I want to thank my colleague, Dr. Dunn, for offering the commonsense
fix to contracting at the VA, and I look forward to voting in favor of
it. I urge Members to support H.R. 2781.
Mr. WALZ. Mr. Speaker, I have no further speakers. Again, I urge my
colleagues to support H.R. 2781.
Mr. Speaker, I yield back the balance of my time.
Mr. ROE of Tennessee. Mr. Speaker, I yield 2 minutes to the gentleman
from Michigan (Mr. Bergman), the Oversight and Investigations
Subcommittee chair and a marine who served with distinction.
Mr. BERGMAN. Mr. Speaker, I am proud to join Dr. Dunn and Mr. Panetta
in supporting H.R. 2781, the Ensuring Veteran Enterprise Participation
in Strategic Sourcing Act. This bill and my bill are complementary
legislation.
In addition to the vital healthcare and benefits VA provides to our
veterans, it also awards billions of dollars of contracts annually to
their small businesses. The impact of these contracts to support
livelihoods and create jobs all over our country cannot be overstated.
Just as veteran businessowners must abide by the rules, VA must abide
by the rules and make available to them the contracting opportunities
they have earned. Federal procurement is a very complicated system that
sometimes produces strange outcomes. We must continue to work on that
procurement and make sure that it functions properly.
I strongly urge all my colleagues to support H.R. 2781.
Mr. ROE of Tennessee. Mr. Speaker, I yield myself the balance of my
time.
In closing, I would certainly urge everyone to support this
actionable piece of legislation.
During the last 6\1/2\ months, the Veterans' Affairs Committee has
been a very active committee. When we realized that our Choice Program
was running short of funds, the committee, in a bipartisan way, voted
to extend that.
We have also realized that there are 470,000 veterans whose claims
are in appeals and have not been adjudicated. We realize that program
is not functioning as it should. The House acted quickly, was
bipartisan. That legislation has now been passed out of the Senate VA
Committee and is awaiting action by the floor. We hope to have it
passed and signed into law soon.
We knew that the Secretary of the VA said he had problems, that he
couldn't--most VA employees are terrific. Some of my best friends work
at the VA. But there are some not good employees out of the 370,000
there, and the Secretary said, to do his job, to reform the VA, he
needed a bill where he could terminate poor-performing employees, and
this House and Senate gave him that. The President has signed that into
law.
The Secretary has also moved in speeding up the electronic health
record transformation into a modern off-the-shelf system. We debated on
this floor, today, the Post-9/11 GI Bill update, which is a tremendous
benefit for veterans, and decades from now we will look back on this
debate we had on the floor, I think, with some admiration as I do. It
has been a true privilege and pleasure to be on this committee and to
work with my colleagues on the other side of the aisle to take care of
these important issues this committee has produced. It will make this
promise to our veterans of this country; it will continue to produce
results for them.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Roe) that the House suspend the rules and
pass the bill, H.R. 2781, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. WALZ. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
The point of no quorum is considered withdrawn.
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