To overcome the challenges faced by small businesses in getting a federal contract, two bills (H.R. 226 and H.R. 227) passed by the chairwoman of the House Committee Nydia M. Velazquez.
Just after Nydia M. Velazquez was appointed Chairwoman of the House Committee on Small Business for the 116th Congress, the House has passed two Velazquez bills to strengthen protections for small businesses that are into business with the federal government.
If the bills work as intended, they will make the process of going after federal contracts much easier for small business owners.
This bill will open more opportunities for local and state governments.
In a press release, Velazquez said “In the new Democratic House Majority, we are wasting no time in getting to work for America’s entrepreneurial sector,”
She further added, “My bills passed in the House this week will make important strides towards ensuring small firms are given a fair shot at accessing the federal contracting marketplace and that small business subcontractors are paid in a timely manner.”
To address the growing use of category management, H.R. 226 Bill will look into the practice of consolidating contracts and find solutions to increase the participation of small businesses.
Velázquez said she was, “… deeply concerned that the use of category management may be resulting in fewer contracts awarded to deserving small firms.”
Incentivizing Fairness in Subcontracting Act (H.R. 227) allows federal agencies to know how much dollars prime contractors are spending on subcontractors.
Additionally, H.R. 227 also has provisions to ensure subcontractors are paid promptly when they finalize their contract. According to Velázquez, late payments are a recurring and widespread problem
“Small businesses are increasingly involved in the federal marketplace as subcontractors, rather than as vendors dealing directly with a federal agency,” Velázquez noted.
“My bill is a commonsense reform that caters to this growing reality by creating incentives for larger companies to employ small firms as they deliver goods and services to the federal government. Moreover, this bill will help ensure small companies are paid on time, addressing a recurring and widespread problem the Committee has heard about frequently from entrepreneurs working in the federal sector.”
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