A group of lawmakers recently reintroduced legislation that seeks to require fair and ethical treatment of small construction contractors by federal agencies during the procurement process.
U.S. Reps. Marc Veasey (D-TX), Scott Peters (D-CA), Pete Stauber (R-MN), and Brian Fitzpatrick (R-PA) recently detailed the Small Business Payment for Performance Act.
Measure provisions include enabling 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; and requiring the federal government to pay at least 50 percent of the cost incurred from the change order upon receipt of the equitable adjustment.
“Small businesses should not be held liable for changes in federal contracts made by the federal government,” Veasey said. “I am proud to introduce the bipartisan Small Business Payment for Performance Act because it ensures these local contractors will not be left on the hook for paying for unplanned financial burdens the government is responsible for.”
Veasey said the legislation would boost the nation’s economy and create a more competitive market by incentivizing small businesses and contractors to partner with the federal government.
“Small businesses on Main Street America are the economic engine of our economy, and it’s important that the federal government does not place undue burdens on them while fulfilling government contracts,” Stauber said. “I’m proud to reintroduce the Small Business Payment for Performance Act, which 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.”
According to Stauber, the bill will result in more small businesses competing for federal contracts and more economic prosperity for communities.