Unfortunately that is not true. For example, Veteran-owned businesses get a lot of preference due to the strength of their lobby and nobody's willingness to say anything against a business owned by a Vet.
To expand, in the VA, if two or more Veteran-owned businesses demonstrate the capability to fulfill a need (in the determination of a government employee, mind you), then whatever contracting for that need that will eventually happen must be given to a Veteran-owned business. What that means practically is that you have non-technical non-experts making technical determinations and putting Veteran-owned businesses in places where they can't actually perform or provide the capacity needed (i.e., with certain medical products), and most definitely can't scale when big unexpected needs (i.e., epidemics) arise. This kind of thing does way more harm to way more Vets in the name of "supporting the Veteran", and nobody would argue that it is a "DEI initiative" even though it is just as stupid and wasteful.
This stuff is all mandated by Congress, by the way, and to change it would be moving a mountain. Are you going to be the guy that says a lot of Veteran-owned businesses can't perform?