The Veterans Benefits, Health Care, and Information Technology Act of 2006 (the 2006 Act) requires the Dept. of Veterans Affairs (VA) to give priority to veteran-owned and service-disabled veteran-owned small businesses (VOSB and SDVOSB) when awarding contracts to small businesses. This testimony discusses preliminary views on: (1) the extent to which VA met its prime contracting goals for SDVOSBs and VOSBs in FY 2007-2009; and (2) VA¿s progress in implementing procedures to verify the ownership, control, and veteran status of firms in its mandated database. The auditor obtained and analyzed data on VA¿s contracting activities, and reviewed a sample of verified businesses to assess VA¿s verification program. Illustrations.