House Small Business Committee Chairman Rep. Sam Graves (R-Mo.) introduced two bills on Tuesday that would create more contracting opportunities for small businesses and reform a federal contracting policy that marginalizes smaller contractors.
The Greater Opportunities for Small Business Act would bump the federal government’s target for the amount of contracts awarded to small busineses from 23 percent to 25 percent. The Contracting Data and Bundling Accountability Act would bring more transparency to data reported on bundling smaller contracts into one large contract, a practice that can leave small businesses at a disadvantage.
“These two pieces of legislation will go a long way towards increasing opportunities for small companies who want to grow and create jobs by doing business with the federal government,” Graves said. “By increasing the federal-wide goal for contracts to small businesses, and requiring greater accuracy, transparency and accountability in contract bundling and consolidation, we make it easier for small businesses to enter this marketplace and compete for contracts. The federal government spends nearly half a trillion dollars on contracted goods and services, therefore, we must ensure that the money is being spent efficiently, and small businesses have proven that they can do quality work cheaper and often faster.”
The two percent increase in contracts awarded to small businesses proposed under the Greater Opportunities for Small Business Act would amount to approximately $10 billion per year. The bill would also set a goal of awarding 40 percent of all subcontracted dollars to small businesses, up from the current 35.9 percent goal.