Legislative Updates: Small Business Bills in the House (& Senate)!

Just like the elves in Santa’s workshop, Congress has been busy this winter season! Among the chaos, three bills with the potential to impact small business Federal government contractors have been percolating. The first and third bill propose amendments to laws already in place covering surviving spouses of SDVOSB owners and the Department of Homeland Security’s Mentor-Protege Program, while the second bill proposes an entirely new SBA program for small businesses geared toward promoting research and development efforts.

Here’s our brief summary of each bill:

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House Passes Bill to Increase Potential Size of Sole Source Awards

Amidst the news cycle focusing on the government shutdown, there is some other action in the House of Representatives that recently caught our eye.

The House recently passed a bill called the “Expanding Contracting Opportunities for Small Businesses Act of 2019.” If the bill becomes law, we will see a dramatic expansion in the size of sole source contracts for SDVOSBs, WOSBs, and HUBZones.

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Bill Changes Size Determination Measurement Period from Three Years to Five

With the stroke of a pen, Congress may have just paved the way for some soon-to-be large businesses to remain small for longer. 

Both the House of Representatives and the Senate have passed a bill that would amend the Small Business Act to change the period of measurement used to determine the size of a business from three years to five. The bill awaits the president’s signature to become law. 

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New Bill Would Require “Transparency” In Small Business Goaling

A new bill introduced in the House of Representatives would require the SBA to count contracts performed overseas when calculating the government’s achievement of its small business goals.

The bill would codify a policy that the SBA already says it is in the process of adopting–and one that will likely lead to a perceived drop in the government’s small business goaling achievement in Fiscal Year 2016.

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Non-Manufacturer Rule Confusion: House Proposes Fix

Many small contractors (and the SBA) were surprised when the Court of Federal Claims held last year that the non-manufacturer rule applies any time the government buys manufactured products–regardless of the NAICS code assigned to the procurement.

Now the U.S. House of Representatives is proposing to fix the confusion caused by the Court’s decision.  The House version of the 2016 National Defense Authorization Act would amend the Small Business Act to specify that the non-manufacturer rule applies only to contracts for supplies.

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