SMACNA-Endorsed Small Business Legislation Introduced in House of Representatives

Bipartisan proposal would require fair and ethical treatment of small construction firms during the procurement process.

A bipartisan group of legislators has introduced a new bill designed to level the playing field for smaller contractors while bidding for federal work. The Small Business Payment of Performance Act was introduced by a group of Democratic and Republican House members, including Congressman Brian Fitzpatrick (PA-1), Congressman Scott Peters (CA-52), Congressman Pete Stauber (MN-08), and Congressman Mark Veasey (TX-33).  

Under the terms of the bill, smaller contractors can request an equitable adjustment to the contracting officer if the contracting officer places a change order without the agreement of the small business. In addition, the federal government would be required to pay at least 50% of the cost that occurred from the change order upon receipt of the equitable adjustment.

Stan Kolbe, SMACNA's Executive Director of Government and Political Affairs lauded the legislation, saying that "Based upon our extensive public market contracting experience with change orders, we strongly support The Small Business Payment for Performance Act and know it will help all businesses contracting with the federal government.” Take a moment to review the text of the bill.