Press Releases

Chabot Introduces Small Business Contracting Reform Bill

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Washington, March 20, 2015 | comments

Chabot Introduces Small Business Contracting Reform Bill
Incorporates solutions from New Committee Members

WASHINGTON  –  On Thursday, Small Business Committee Chairman Steve Chabot (R-OH) introduced H.R. 1481, the Small Contractors Improve Competition Act.

This bill is the result of a series of hearings examining small business contracting policies, including two Subcommittee hearings this week that further exposed how unjustified contract bundling, Administration policies devaluing small business subcontracting opportunities, and the improper use of reverse auctions are keeping small businesses from participating in the federal procurement process.

In the last four years, the number of small businesses participating in federal procurement has fallen by over100,000 companies  and the number of contract actions being awarded to small businesses has fallen by nearly 60 percent.  This reduced competition ultimately increases the cost of goods and services for the federal government and diminishes the vibrancy of the industrial base, which threatens national security. 

“Having a healthy small business industrial base means that taxpayers benefit from increased competition, innovation, and job creation,” said Chairman Chabot.  “It also means that we can support programs crucial to our national defense.  Small business contracting policies are intended  to make sure we have a broad spectrum of small firms working with the government across industries, and when those policies are undermined, it is imperative that we find appropriate solutions. These commonsense reforms move us in the right direction.”

H.R. 1481 would make a series of improvements to small business contracting policies to promote increased competition, a healthier industrial base, and more cost-effective federal procurement process. The bill incorporates a number of legislative proposals introduced by Small Business Committee Members, including:

·         H.R. 1386 introduced by Rep. Carlos Curbelo

·         H.R. 1390 introduced by Rep. Steve Knight

·         H.R. 1410 introduced by Rep. Amata Coleman Radewagen

·         H.R. 1429 introduced by Rep. Mike Bost

·         H.R. 1444 introduced by Rep Richard Hanna

In fiscal year 2013, small businesses won nearly $100 billion in federal prime contracts and nearly $90 billion in federal subcontracts.  This is roughly half of the dollars spent by the federal government in contracts, so increasing competition and reducing inefficiencies in the procurement process through small business contracting reform is critical to saving taxpayer money.

The Committee has received testimony supporting provisions of the bill from Associated General Contractors, American Council of Engineering Companies, Mechanical Contractors Association, Women Impacting Public Policy, Veterans Entrepreneurship Task Force, the American Legion and the Professional Services Council.  The bill has also been endorsed by the National Defense Industrial Association.


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