Veterans First Program[1]

Section 502 of the Veterans Benefits, Health Care, and Information Technology Act of 2006 created the program to give veterans preference in VA contracting.

“(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 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)), 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 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) 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…

(f) Database of Veteran-Owned Businesses. …the Secretary shall maintain a database of small business concerns owned and controlled by veterans and the veteran owners of such business concerns.
[1] http://www.va.gov/osdbu/docs/pl109461exerpt.pdf