[Congressional Record (Bound Edition), Volume 163 (2017), Part 8]
[House]
[Pages 11438-11440]
[From the U.S. 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.
       (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.

[[Page 11439]]

  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 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.

[[Page 11440]]

  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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