Kingdomware Technologies, Inc. v. United States

Kingdomware Technologies, a service-disabled veteran-owned small business, sued the United States after the Department of Veterans Affairs awarded a contract to a non-veteran-owned company without considering a set-aside. The VA argued it had already met its annual contracting goals and thus the set-aside rule was discretionary. The Supreme Court unanimously rejected this interpretation, holding that the 2006 Veterans Benefits, Health Care, and Information Technology Act mandates the VA to set aside contracts for veteran-owned small businesses whenever there is a reasonable expectation that at least two such businesses will bid, regardless of whether annual goals have been met.

The Supreme Court ruled 8-0 in favor of Kingdomware Technologies, holding that the Act's contracting set-aside requirement is mandatory and applies to all VA procurements, not just those necessary to meet annual goals.

Whether the Veterans Benefits Act's set-aside requirement for veteran-owned small businesses is mandatory for every VA procurement, or whether it becomes discretionary once the VA meets its annual contracting goals.

The decision significantly strengthened federal contracting opportunities for veteran-owned and service-disabled veteran-owned small businesses, clarifying that agency discretion cannot override statutory mandates. It reinforced economic affirmative action for veterans and prompted federal agencies to revise procurement compliance procedures.