Rep. Pete Stauber
U.S. Rep. Pete Stauber (R-MN) on July 1 sponsored a bipartisan bill that would require federal agencies to treat small construction contractors fairly and equitably during the procurement process.
“Small businesses are the economic engines of our economy, and it’s important that the federal government does not place undue burdens on them while fulfilling government contracts,” said Rep. Stauber, who introduced the Small Business Payment for Performance Act of 2022, H.R. 8273, with three original cosponsors, including U.S. Reps. Brian Fitzpatrick (R-PA) and Marc Veasey (D-TX).
If enacted, the bill would allow small businesses to request an equitable adjustment to the contracting officer if the contracting officer places a change order without the agreement of the small business, according to a bill summary provided by the lawmakers.
Additionally, H.R. 8273 would require the federal government to pay at least 50 percent of the cost incurred from the change order upon receipt of the equitable adjustment, the summary says.
“The Small Business Payment for Performance Act will hold the federal government accountable for any changes in contracts won by small businesses to make sure small contractors don’t have any unexpected financial burdens while completing contracts,” Rep. Stauber said. “This will result in more small businesses competing for federal contracts, and more economic prosperity for our communities.”
Rep. Fitzpatrick said he was proud to partner on “this crucial legislation.”
“The Small Business Payment Performance Act will protect our hometown contractors from unnecessary costs and logistical problems incurred by the federal government in the federal contracting process,” said Rep. Fitzpatrick. “Our bipartisan bill will give these businesses a fairer chance at winning contracts and more capacity to fulfill contracts in a timely and effective manner.”
Several nationwide groups endorsed H.R. 8273, including the American Subcontractors Association, the Associated General Contractors of America, the National Association of Surety Bond Producers, the National Electrical Contractors Association, and the Sheet Metal and Air Conditioning Contractors National Association.
The measure has been referred for consideration to the U.S. House Small Business Committee.