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Veterans Affairs ‘Equity Plan’ Touts 1% Increase In Contracts To ‘Disadvantaged’ Businesses

The Department of Veterans Affairs highlighted a 1% increase in the number of “diversity contracts” in 2023 as an example of progress in diversity and inclusion, according to a sweeping “equity” plan released Wednesday.

A Biden Administration memo dated Feb. 17, 2023 required federal agencies to increase diversity of suppliers for equipment and services, from contractors that fit the parameters of being underutilized or owned by member of a historically discriminated-against group. The VA’s 2024 Equity Action Plan touted an increase in contracts from new businesses by 3,566 contracts in fiscal year 2023, just 1% higher than the new entrants recorded in fiscal year 2022.

The plan promises to reduce health disparities and access to benefits that internal studies have identified among minority veterans, particularly black veterans, and increase contracts with women and minority-owned businesses.

“At the Department of Veterans Affairs (VA), our mission is to provide world-class care and benefits to all Veterans, their families, caregivers and survivors – regardless of who they are, what they look like, who they love, where they are from or how they identify,” VA Secretary Denis McDonough said in a preface to the strategy.

Most VA contracts go to established vendors, according to data from the Office of Management and Budget included in the report. The VA contracted with 10,887 vendors in fiscal 2022 compared to 11,964 in 2020, but a greater percentage of those in 2022 were established contractors.

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