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115th Congress    }                                     {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {     115-689

======================================================================



 
       SERVICE-DISABLED VETERANS SMALL BUSINESS CONTINUATION ACT

                                _______
                                

  May 18, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Roe of Tennessee, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5044]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 5044) to amend title 38, United States Code, to 
clarify the treatment of certain surviving spouses under the 
contracting goals and preferences of the Department of Veterans 
Affairs, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Subcommittee Consideration.......................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Correspondence.........................................
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Earmarks and Tax and Tariff Benefits.............................     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     5
Statement on Duplication of Federal Programs.....................     5
Disclosure of Directed Rulemaking................................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill as Reported.............     6

                          Purpose and Summary

    H.R. 5044, the ``Service-Disabled Veterans Small Business 
Continuation Act,'' would provide a technical and clerical 
amendment of section 8127 of title 38, United States Code 
(U.S.C.) to ensure that small businesses owned and operated by 
eligible surviving spouses continue to receive preference in 
contracting at the U.S. Department of Veterans Affairs (VA). 
H.R. 5044 was introduced by Representative Steve Chabot of Ohio 
on February 15, 2018.

                  Background and Need for Legislation

    The ``Veterans Benefits, Health Care, and Information 
Technology Act of 2006''\1\ authorized a new sole-source 
preference for Veteran Owned Small Businesses (VSOB) and 
Service Disabled Veteran Owned Small Business (SDVOSB) at VA. 
Data from this program shows that this preference has created 
many opportunities for small businesses since its creation. In 
fiscal year 2007, VA awarded $370.7 million, or 3.64 percent of 
their total contracting budget, to SDVOSB firms.\2\ By fiscal 
year 2017, contracting dollars awarded to SDVOSBs had grown to 
$5.1 billion, or 19.52 percent of all contracting dollars 
spent.\3\
---------------------------------------------------------------------------
    \1\Public Law 109-461. https://www.va.gov/ogc/docs/pl109-461.pdf.
    \2\Small Business Dashboard FY2006. U.S. General Services 
Administration. https://smallbusiness.data.gov/
explore?carryfilters=on&fromfiscal;=yes&tab;=By+Performance+Goal&fiscal;_ye
ar=2017&tab;=By+Performance+Goal&fiscal;_year=2006&fromfiscal;=yes&carryfil;
ters=on&Submit;=Go.
    \3\Small Business Dashboard FY2017. U.S. General Services 
Administration. https://smallbusiness.data.gov/
explore?carryfilters=on&fromfiscal;=yes&tab;=By+Performance+Goal&fiscal;_ye
ar=2018&tab;=By+Performance+Goal&fiscal;_year=2017&fromfiscal;=yes&carryfil;
ters=on&Submit;=Go.
---------------------------------------------------------------------------
    While the Committee believes this growth is laudable, there 
has been concern that section 8127 of title 38, U.S.C., did not 
appropriately address concerns of what happens to awards and 
contracts of a VOSB and SDVOB when the veteran-owner dies. The 
sudden death of a veteran could bring significant upheaval for 
a small business, as they lose their VA contracts, which can 
impact not only the veteran's family but employees as well. 
Public Law 109-461, which created section 8127 of title 38, 
U.S.C., authorized that only spouses of veterans who were rated 
as 100 percent disabled at the time of their death would be 
able to claim SDVSOB status for ten years following the 
veteran's death. The Committee believed section 8127 was too 
limited and therefore amended it to authorize spouses of 
veterans who died with less than a 100 percent disability 
rating to maintain VOSB and SDVOSB status for up to three years 
following the veteran's death.\4\ Unfortunately, the National 
Defense Authorization Act for Fiscal Year 2017 (FY17 NDAA), 
struck the amendments to section 8127 of title 38, U.S.C. The 
amendments made by the FY17 NDAA to section 8127 of title 38, 
U.S.C. are not effective until both VA and the U.S. Small 
Business Administration (SBA) issue regulations implementing 
the amendments.
---------------------------------------------------------------------------
    \4\Public Law 114-315.
---------------------------------------------------------------------------
    This bill would amend section 8127(k) of title 38 U.S.C., 
to supersede the FY17 NDAA to clarify that surviving spouses of 
veterans who died with less than a 100 percent disability 
rating can maintain their SDVOSB status until one of the 
following instance occurs: three years after the veteran's 
death; when the surviving spouse remarries; or when the 
surviving spouse relinquishes ownership of the small business.

                                Hearings

    On March 20, 2018, the Subcommittee on Economic Opportunity 
held a legislative hearing on several bills pending before the 
Subcommittee including H.R. 5044.
    The following witnesses testified:
          The Honorable Gus Bilirakis, U.S. House of 
        Representatives, 12th District, Florida; The Honorable 
        Brad Wenstrup, U.S. House of Representatives, 2nd 
        District, Ohio; The Honorable Ted Poe, U.S. House of 
        Representatives, 2nd District, Texas; The Honorable 
        Luke Messer, U.S. House of Representatives 6th 
        District, Indiana; The Honorable Steve Russell, U.S. 
        House of Representatives, 5th District, Oklahoma; MG 
        Robert M. Worley II, USAF (Ret.), Director, Education 
        Service, Veterans Benefit Administration, U.S. 
        Department of Veterans Affairs accompanied by Mr. 
        Jeffrey London, Director, Loan Guaranty Service, 
        Veterans Benefits Administration, U.S. Department of 
        Veterans Affairs; Mr. John J. Kamin, Assistant 
        Director, Veterans Employment and Education Division, 
        The American Legion; Ms. Ashlynne Haycock, Manager, 
        Education Services, Tragedy Assistance Program for 
        Survivors; and Mr. William Hubbard, Vice President of 
        Government Affairs, Student Veterans of America.
    Statements for the record were submitted by:
          The Honorable Steve Chabot, U.S. House of 
        Representatives, 1st District, Ohio; the U.S. 
        Department of Labor; the National Association of State 
        Approving Agencies; and the National Association of 
        Veterans' Programs Administrators.

                       Subcommittee Consideration

    On April 11, 2018, the Subcommittee on Economic Opportunity 
met in open markup session, a quorum being present and 
favorably forwarded H.R. 5044 to the Full Committee.

                        Committee Consideration

    On May 8, 2018, the Full Committee met in open markup 
session, a quorum being present, and ordered H.R. 5044 be 
reported favorably to the House of Representatives by voice 
vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 5044 reported 
favorably to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 5044 are to improve eligibility 
for the Vets First contracting program.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 5044 does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
5044 prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974.

               Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 5044 is provided by the Director of the Congressional 
Budget Office. Pursuant to section 402 of the Congressional 
Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 9, 2018.
Hon. Phil Roe, M.D.,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5044, the Service-
Disabled Veterans Small Business Continuation Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Logan Smith.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 5044--Service-Disabled Veterans Small Business Continuation Act

    In procuring goods and services, the Department of Veterans 
Affairs (VA) provides a special preference to firms owned and 
controlled by veterans with service-connected disabilities. 
Under current law, surviving spouses of veterans whose service-
connected disabilities were rated at 100 percent are eligible 
to retain that preferential contracting status for up to 10 
years after the veteran's death. H.R. 5044 would authorize 
similar treatment for surviving spouses of veterans whose 
service-connected disabilities were rated at less than 100 
percent. Those spouses would be allowed to retain priority for 
obtaining contracts for up to three years.
    CBO expects the bill would result in minimal administrative 
costs to verify the new owners. On that basis, CBO estimates 
that implementing H.R. 5044 would cost less than $500,000 over 
the 2019-2023 period; that spending would be subject to the 
availability of appropriated funds.
    Enacting H.R. 5044 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 5044 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 5044 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Logan Smith. The 
estimate was reviewed by Leo Lex, Deputy Assistant Director for 
Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 5044 prepared by the Director of the 
Congressional Budget Office. Pursuant to section 423 of the 
Unfunded Mandated Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
5044.

                   Constitutional Authority Statement

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 5044, as amended, is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.''

                  Applicability to Legislative Branch

    The Committee finds that H.R. 5044 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act of 1995.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 5044 establishes or reauthorizes a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), 
H.R. 5044 would not require the Secretary to publish new 
regulations for carrying out this bill.

             Section-by-Section Analysis of the Legislation


Sec. 1. Short title

    This section cites that the short title of the bill is, 
``Service-Disabled Veterans Small Business Continuation Act.''

Sec. 2. Technical amendment regarding treatment of certain surviving 
        spouses under contracting goals and preferences of Department 
        of Veterans Affairs

    This section would amend section 8127(k)(3) of title 38, 
U.S.C., to clarify that a surviving spouse of a veteran who is 
not rated as 100 percent disabled would be treated a eligible 
as part of the Vets First program as specified in section 8127 
of title U.S.C. The period for which they would be eligible 
would begin on the date of the death of the veteran and end on 
the date that is three years after this death, on the date when 
the spouse re-marries, or the date when the surviving spouse 
relinquishes ownership of the small business, whichever comes 
first.
    This section would become effective on the date specified 
by section 1832(e) of the National Defense Authorization Act 
for Fiscal Year 2017.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




           *       *       *       *       *       *       *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY

           *       *       *       *       *       *       *


   CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
    FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL 
PROPERTY

           *       *       *       *       *       *       *



SUBCHAPTER II--PROCUREMENT AND SUPPLY

           *       *       *       *       *       *       *



Sec. 8127. Small business concerns owned and controlled by veterans: 
                    contracting goals and preferences

  (a) Contracting Goals.--(1) In order to increase contracting 
opportunities for small business concerns owned and controlled 
by veterans and small business concerns owned and controlled by 
veterans with service-connected disabilities, the Secretary 
shall--
          (A) establish a goal for each fiscal year for 
        participation in Department contracts (including 
        subcontracts) by small business concerns owned and 
        controlled by veterans who are not veterans with 
        service-connected disabilities in accordance with 
        paragraph (2); and
          (B) establish a goal for each fiscal year for 
        participation in Department contracts (including 
        subcontracts) by small business concerns owned and 
        controlled by veterans with service-connected 
        disabilities in accordance with paragraph (3).
  (2) The goal for a fiscal year for participation under 
paragraph (1)(A) shall be determined by the Secretary.
  (3) The goal for a fiscal year for participation under 
paragraph (1)(B) shall be not less than the Government-wide 
goal for that fiscal year for participation by small business 
concerns owned and controlled by veterans with service-
connected disabilities under section 15(g)(1) of the Small 
Business Act (15 U.S.C. 644(g)(1)).
  (4) The Secretary shall establish a review mechanism to 
ensure that, in the case of a subcontract of a Department 
contract that is counted for purposes of meeting a goal 
established pursuant to this section, the subcontract was 
actually awarded to a business concern that may be counted for 
purposes of meeting that goal.
  (b) Use of Noncompetitive Procedures for Certain Small 
Contracts.--For purposes of meeting the goals under subsection 
(a), and in accordance with this section, in entering into a 
contract with a small business concern owned and controlled by 
veterans for an amount less than the simplified acquisition 
threshold (as defined in section 134 of title 41), a 
contracting officer of the Department may use procedures other 
than competitive procedures.
  (c) Sole Source Contracts for Contracts Above Simplified 
Acquisition Threshold.--For purposes of meeting the goals under 
subsection (a), and in accordance with this section, a 
contracting officer of the Department may award a contract to a 
small business concern owned and controlled by veterans using 
procedures other than competitive procedures if--
          (1) such concern is determined to be a responsible 
        source with respect to performance of such contract 
        opportunity;
          (2) the anticipated award price of the contract 
        (including options) will exceed the simplified 
        acquisition threshold (as defined in section 134 of 
        title 41) but will not exceed $5,000,000; and
          (3) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable 
        price that offers best value to the United States.
  (d) Use of Restricted Competition.--Except as provided in 
subsections (b) and (c), for purposes of meeting the goals 
under subsection (a), and in accordance with this section, a 
contracting officer of the Department shall award contracts on 
the basis of competition restricted to small business concerns 
owned and controlled by veterans if the contracting officer has 
a reasonable expectation that two or more small business 
concerns owned and controlled by veterans will submit offers 
and that the award can be made at a fair and reasonable price 
that offers best value to the United States.
  (e) Eligibility of Small Business Concerns.--A small business 
concern may be awarded a contract under this section only if 
the small business concern and the veteran owner of the small 
business concern are listed in the database of veteran-owned 
businesses maintained by the Secretary under subsection (f).
  (f) Database of Veteran-Owned Businesses.--(1) Subject to 
paragraphs (2) through (6), the Secretary shall maintain a 
database of small business concerns owned and controlled by 
veterans and the veteran owners of such business concerns.
  (2)(A) To be eligible for inclusion in the database, such a 
veteran shall submit to the Secretary such information as the 
Secretary may require with respect to the small business 
concern or the veteran. Application for inclusion in the 
database shall constitute permission under section 552a of 
title 5 (commonly referred to as the Privacy Act) for the 
Secretary to access such personal information maintained by the 
Secretary as may be necessary to verify the information 
contained in the application.
  (B) If the Secretary receives an application for inclusion in 
the database from an individual whose status as a veteran 
cannot be verified because the Secretary does not maintain 
information with respect to the veteran status of the 
individual, the Secretary may not include the small business 
concern owned and controlled by the individual in the database 
maintained by the Secretary until the Secretary receives such 
information as may be necessary to verify that the individual 
is a veteran.
  (3) Information maintained in the database shall be submitted 
on a voluntary basis by such veterans.
  (4) No small business concern may be listed in the database 
until the Secretary has verified that--
          (A) the small business concern is owned and 
        controlled by veterans; and
          (B) in the case of a small business concern for which 
        the person who owns and controls the concern indicates 
        that the person is a veteran with a service-connected 
        disability, that the person is a veteran with a 
        service-connected disability.
  (5) The Secretary shall make the database available to all 
Federal departments and agencies and shall notify each such 
department and agency of the availability of the database.
  (6) If the Secretary determines that the public dissemination 
of certain types of information maintained in the database is 
inappropriate, the Secretary shall take such steps as are 
necessary to maintain such types of information in a secure and 
confidential manner.
  (8)(A) If a small business concern is not included in the 
database because the Secretary does not verify the status of 
the concern as a small business concern or the ownership or 
control of the concern, the concern may appeal the denial of 
verification to the Office of Hearings and Appeals of the Small 
Business Administration (as established under section 5(i) of 
the Small Business Act). The decision of the Office of Hearings 
and Appeals shall be considered a final agency action.
  (B)(i) If an interested party challenges the inclusion in the 
database of a small business concern owned and controlled by 
veterans or a small business concern owned and controlled by 
veterans with service-connected disabilities based on the 
status of the concern as a small business concern or the 
ownership or control of the concern, the challenge shall be 
heard by the Office of Hearings and Appeals of the Small 
Business Administration as described in subparagraph (A). The 
decision of the Office of Hearings and Appeals shall be 
considered final agency action.
  (ii) In this subparagraph, the term ``interested party'' 
means--
          (I) the Secretary; or
          (II) in the case of a small business concern that is 
        awarded a contract, the contracting officer of the 
        Department or another small business concern that 
        submitted an offer for the contract that was awarded to 
        the small business concern that is the subject of a 
        challenge made under clause (i).
  (C) For each fiscal year, the Secretary shall reimburse the 
Administrator of the Small Business Administration in an amount 
necessary to cover any cost incurred by the Office of Hearings 
and Appeals of the Small Business Administration for actions 
taken by the Office under this paragraph. The Administrator is 
authorized to accept such reimbursement. The amount of any such 
reimbursement shall be determined jointly by the Secretary and 
the Administrator and shall be provided from fees collected by 
the Secretary under multiple-award schedule contracts. Any 
disagreement about the amount shall be resolved by the Director 
of the Office of Management and Budget.
  (g) Enforcement Penalties for Misrepresentation.--(1) Any 
business concern that is determined by the Secretary to have 
willfully and intentionally misrepresented the status of that 
concern as a small business concern owned and controlled by 
veterans or as a small business concern owned and controlled by 
service-disabled veterans for purposes of this subsection shall 
be debarred from contracting with the Department for a period 
of not less than five years.
  (2) In the case of a debarment under paragraph (1), the 
Secretary shall commence debarment action against the business 
concern by not later than 30 days after determining that the 
concern willfully and intentionally misrepresented the status 
of the concern as described in paragraph (1) and shall complete 
debarment actions against such concern by not later than 90 
days after such determination.
  (3) The debarment of a business concern under paragraph (1) 
includes the debarment of all principals in the business 
concern for a period of not less than five years.
  (h) Treatment of Businesses After Death of Veteran-Owner.--
(1) Subject to paragraph (3), if the death of a veteran causes 
a small business concern to be less than 51 percent owned by 
one or more veterans, the surviving spouse of such veteran who 
acquires ownership rights in such small business concern shall, 
for the period described in paragraph (2), be treated as if the 
surviving spouse were that veteran for the purpose of 
maintaining the status of the small business concern as a small 
business concern owned and controlled by veterans.
  (2) The period referred to in paragraph (1) is the period 
beginning on the date on which the veteran dies and ending on 
the earliest of the following dates:
          (A) The date on which the surviving spouse remarries.
          (B) The date on which the surviving spouse 
        relinquishes an ownership interest in the small 
        business concern.
          (C) The date that--
                  (i) in the case of a surviving spouse of a 
                veteran with a service-connected disability 
                rated as 100 percent disabling or who dies as a 
                result of a service-connected disability, is 10 
                years after the date of the veteran's death; or
                  (ii) in the case of a surviving spouse of a 
                veteran with a service-connected disability 
                rated as less than 100 percent disabling who 
                does not die as a result of a service-connected 
                disability, is 3 years after the date of the 
                veteran's death.
  (3) Paragraph (1) only applies to a surviving spouse of a 
veteran with a service-connected disability.
  (i) Priority for Contracting Preferences.--Preferences for 
awarding contracts to small business concerns shall be applied 
in the following order of priority:
          (1) Contracts awarded pursuant to subsection (b), 
        (c), or (d) to small business concerns owned and 
        controlled by veterans with service-connected 
        disabilities.
          (2) Contracts awarded pursuant to subsection (b), 
        (c), or (d) to small business concerns owned and 
        controlled by veterans that are not covered by 
        paragraph (1).
          (3) Contracts awarded pursuant to--
                  (A) section 8(a) of the Small Business Act 
                (15 U.S.C. 637(a)); or
                  (B) section 31 of such Act (15 U.S.C. 657a).
          (4) Contracts awarded pursuant to any other small 
        business contracting preference.
  (j) Applicability of Requirements to Contracts.--(1) If after 
December 31, 2008, the Secretary enters into a contract, 
memorandum of understanding, agreement, or other arrangement 
with any governmental entity to acquire goods or services, the 
Secretary shall include in such contract, memorandum, 
agreement, or other arrangement a requirement that the entity 
will comply, to the maximum extent feasible, with the 
provisions of this section in acquiring such goods or services.
  (2) Nothing in this subsection shall be construed to 
supersede or otherwise affect the authorities provided under 
the Small Business Act (15 U.S.C. 631 et seq.).
  (k) Annual Reports.--Not later than December 31 each year, 
the Secretary shall submit to Congress a report on small 
business contracting during the fiscal year ending in such 
year. Each report shall include, for the fiscal year covered by 
such report, the following:
          (1) The percentage of the total amount of all 
        contracts awarded by the Department during that fiscal 
        year that were awarded to small business concerns owned 
        and controlled by veterans.
          (2) The percentage of the total amount of all such 
        contracts awarded to small business concerns owned and 
        controlled by veterans with service-connected 
        disabilities.
          (3) The percentage of the total amount of all 
        contracts awarded by each Administration of the 
        Department during that fiscal year that were awarded to 
        small business concerns owned and controlled by 
        veterans. A surviving spouse of such a veteran who is 
        not covered by subparagraph (C)(i) of such section by 
        reason of the disability rating of the veteran being 
        less than 100 percent shall be treated as being so 
        covered during the period beginning on the date of the 
        death of the veteran and ending on the date that is 
        three years after such death, the date on which the 
        surviving spouse remarries, or the date on which the 
        surviving spouse relinquishes an ownership interest in 
        the small business concern, whichever occurs first.
          (4) The percentage of the total amount of all 
        contracts awarded by each such Administration during 
        that fiscal year that were awarded to small business 
        concerns owned and controlled by veterans with service-
        connected disabilities.
  (l) Definitions.--In this section:
          (1) The term ``small business concern'' has the 
        meaning given that term under section 3 of the Small 
        Business Act (15 U.S.C. 632).
          (2) The term ``small business concern owned and 
        controlled by veterans'' means a small business 
        concern--
                  (A)(i) not less than 51 percent of which is 
                owned by one or more veterans or, in the case 
                of a publicly owned business, not less than 51 
                percent of the stock of which is owned by one 
                or more veterans; and
                  (ii) the management and daily business 
                operations of which are controlled by one or 
                more veterans; or
                  (B) not less than 51 percent of which is 
                owned by one or more veterans with service-
                connected disabilities that are permanent and 
                total who are unable to manage the daily 
                business operations of such concern or, in the 
                case of a publicly owned business, not less 
                than 51 percent of the stock of which is owned 
                by one or more such veterans.

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