Bill Overview
Title: VA–SBA Extension Act of 2022
Description: This bill extends until January 1, 2024, the date for transferring from the Department of Veterans Affairs to the Small Business Administration the verification of certain veteran-owned small businesses for the purpose of awarding federal contracts.
Sponsors: Rep. Mfume, Kweisi [D-MD-7]
Target Audience
Population: Veteran-owned small business owners
Estimated Size: 500000
- The bill pertains to veteran-owned small businesses.
- These businesses must be seeking federal contracts, as the verification process is tied to awarding such contracts.
- The verification process is currently managed by the Department of Veterans Affairs.
- The transfer of verification responsibilities is moving to the Small Business Administration, affecting those businesses involved in this transition.
Reasoning
- The policy specifically targets veteran-owned small businesses that are involved in federal contracting, so the interviews will primarily involve owners or stakeholders in such businesses.
- The budget implies that a limited number of businesses will experience substantial changes due to this policy, indicating a medium level of impact on those directly involved.
- The policy may relieve some administrative burdens from small businesses, improving their ability to engage in federal contracts. This could positively affect their wellbeing if it translates to more opportunities or reduced stress.
- Not all veteran-owned small businesses are affected, so it is essential to include interviews with those who are both impacted and not impacted to understand the range of effects.
Simulated Interviews
small business owner (San Francisco, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I think the move to the Small Business Administration might streamline things for us.
- The current VA process sometimes feels cumbersome and outdated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
construction business owner (Denver, CO)
Age: 63 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I've always felt federal contracts were too bureaucratic to be worth my time.
- This change doesn't really impact me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
owner of a logistics company (Austin, TX)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This could be a great opportunity for us to expand our client base.
- I'm cautiously optimistic about the transition to the SBA.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
consultant supporting veteran businesses (New York, NY)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- I think this policy could make federal processes more accessible for veteran-owned businesses.
- It's important for my clients that things get easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
owner of a software firm (Seattle, WA)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- I'll have to wait and see how this is implemented.
- Right now, everything's still a bit up in the air.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
retired (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I don't see how this policy is relevant to me now, as I'm retired.
- Perhaps it would be useful for those still running businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
defense contractor (Atlanta, GA)
Age: 47 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 6.0 years
Commonness: 7/20
Statement of Opinion:
- This could enhance business opportunities if executed well.
- I'm hopeful for a more efficient process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
marketing firm owner (Chicago, IL)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- It's a bit nerve-wracking but exciting; the changes could mean more business for me.
- The SBA is generally more approachable than the VA.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
owner of a cybersecurity firm (Phoenix, AZ)
Age: 33 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- I don't particularly pursue federal contracts but I keep an eye on policy changes.
- This move is good for those directly involved in federal contracts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
government services provider (Houston, TX)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Efficiency in verification would be beneficial.
- Though I have navigated the system successfully, it's not always easy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $10000000 (Low: $8000000, High: $12000000)
Year 2: $5000000 (Low: $4000000, High: $6000000)
Year 3: $5000000 (Low: $4000000, High: $6000000)
Year 5: $5000000 (Low: $4000000, High: $6000000)
Year 10: $5000000 (Low: $4000000, High: $6000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The administrative transition needs to be managed smoothly to avoid disruption in veteran-owned small business participation in federal contracts.
- The cost estimates include potential hiring, training, and IT costs for the SBA.
- Potential cost savings at the Department of Veterans Affairs as they shed verification responsibilities.