delete PART 810—MARKET RESEARCH
Veterans First Contracting Program requires federal contracting officers to give priority to service-disabled veteran-owned small businesses (SDVOSBs) and veteran-owned small businesses (VOSBs). Officers must search the VA's VIP database and apply the 'Rule of Two' - contracts must be set aside for veteran-owned firms when two or more are capable, taking precedence over other small business programs.
This preference program distorts free competitive bidding, imposes significant administrative burden on both government and businesses, and creates yet another layer of categorical set-asides that fragments the federal procurement marketplace. The hidden costs include reduced competition, potential for inflated pricing, and the need for businesses to navigate an additional bureaucratic preference system rather than competing on merit. The military service of business owners is irrelevant to their ability to deliver value to taxpayers; competent veteran-owned firms can win contracts without special preference. The program's administrative apparatus - verification process, database maintenance, contracting officer training, and compliance monitoring - represents a deadweight loss to society that serves no compelling public purpose beyond political symbolism.