WASHINGTON The Supreme Court says the Department of Veterans Affairs has failed to comply with a law aimed at increasing the number of federal contracts awarded to small businesses owned by disabled veterans.

The justices ruled unanimously on Thursday in favor of Kingdomware Technologies, Inc. The court says the disabled veteran-owned contractor should have been considered to provide services for a VA medical center.

Federal law requires the VA to use a bidding process if two or more disabled veteran-owned companies can offer service at a fair and reasonable price.

The VA says the "rule of two" doesn't apply to purchases from vendors that already have contracts with the agency under a system called the Federal Supply Schedule.

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