House Small Business Committee Chairman Sam Graves (R-MO) and Small Business Subcommittee on Contracting and Workforce Chairman Richard Hanna (R-NY) today applauded the House passage of the National Defense Authorization Act of 2014 (NDAA), which includes two Committee-sponsored amendments that will help increase federal contracting opportunities for small businesses.
“Providing more opportunities for small businesses through federal contracting saves taxpayer money and helps our economy,” said Chairman Graves. “I’m pleased that the House supported these two amendments, which will help small businesses compete for federal subcontracts and will clarify complex subcontracting rules so that small businesses can more easily navigate the procurement system. When more small businesses compete for federal contracts, prices fall, jobs are created, and the industrial base is strengthened.”
"Today the House has taken a big step to increase opportunities for small businesses to compete and participate at all levels of federal contracting work by approving the Make Every Small Business Count Act,” said Rep. Hanna (R-NY). "This is not only a win for small firms, but also taxpayers, who will realize cost savings, and our economy, which will benefit from the new innovation and jobs that small businesses provide. I am pleased that my colleagues voted to support my amendment, and I thank Chairman Graves for introducing this legislation, and his steadfast commitment to promoting American small businesses."
Graves’ Amendment #75, which passed by voice vote, would allow contracts that are subject to the Small Business Act’s limitations on subcontracting be exempt from Sec. 802 of the FY 2013 NDAA, which applied limitations on subcontracting to Dept. of Defense contracts to prevent excessive pass-throughs of work. Currently, there is now a conflict between the Small Business Act and the Dept of Defense’s limitation on subcontracting provisions. To avoid confusion, this Graves amendment states that any contract subject to the Small Business Act’s limitations on subcontracting is exempt from Sec. 802 of the FY 2013 NDAA. This will resolve the conflict in a manner that will continue to prevent pass-through contracts, but will make sure that small companies know which set of rules to follow.
Hanna’s Amendment #72, which also passed by voice vote, is an amendment that mirrors the “Make Every Small Business Count Act” (HR 2232), introduced on June 4 by Chairman Graves. The legislation will enhance opportunities for small businesses by adding an incentive for prime federal contractors to consider small firms for more subcontracts. Currently, large firms only receive credit for small businesses they use at the first tier, to meet their subcontracting obligations. Meanwhile, the government takes credit for all small business subcontractors to meet its goals. This disparity defies common sense. The amendment will incentivize large prime contractors to make sure that there are opportunities for small businesses working as lower tier subcontractors. Hanna held a hearing on this issue on May 23.