Summary
The Veterans First Contracting Program establishes mandatory set-asides, evaluation preferences, sole-source awards (up to $5M), and tiered evaluation procedures to prioritize service-disabled veteran-owned small businesses (SDVOSBs) and veteran-owned small businesses (VOSBs) in all Department of Veterans Affairs procurement. It requires contracting officers to apply a strict hierarchy of preferences, verify eligibility through the Vendor Information Pages (VIP) database, enforce subcontracting limitations, and impose reporting and certification requirements on contractors.
Reason
This regulation imposes massive hidden costs on taxpayers by distorting competitive procurement, forcing the VA to pay higher prices for inferior goods and services to benefit a politically favored group. It creates a $2 trillion-per-year style regulatory burden on contracting officers and businesses, with no transparency about the opportunity cost—funds diverted from veteran healthcare to bureaucratically mandated preferences. The discrimination against non-veteran entrepreneurs violates classical liberal principles of equal treatment, while fraud incentives skyrocket as businesses misrepresent veteran status to capture rents. If the goal is helping veterans, direct appropriations for training, grants, or tax credits would be transparent and efficient; hiding subsidies in procurement rules undermines competition, inflates costs, and makes every American household poorer.