More Government Contracting for AZ Veterans

Effective 1 January 2017 veteran-owned businesses in Arizona will gets more access to government contracting.

A new law going into effect will give veteran-owned businesses in the state a 1 ½ percent of all contracting done by the state.  It will also 3 percent more for every year thereafter.

These contracts involve materials, services or construction or disposal of materials.  The Director of the Department of Administration may allow a procurement officer to reserve certain procurements for registered veteran-owned businesses.

In order to execute this objective the state Director of the Department of Veterans’ Services is required to establish a registry of veteran-owned businesses to verify the veteran status and eligibility of businesses seeking to be included in the registry.  Other forms of checks may be performed such as checking the Veteran Affairs Vetbiz registry and DOD Form DD-214.

Under the new law veteran-owned businesses shall use at least 50 percent of the proceeds of the contract to pay for the salaries of employees except for construction contracts.

To be elegible a veteran-owned business must be 50 percent owned by a veteran.  If discharged from the military the veteran must have a honorable discharge; must have served more than 6 months on active duty; the business be re located within the state and cannot be a branch or subsidiary of a foreign corporation.   

Sources:
House Bill 2009

By Bill Williams