To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance.
- Bill Number
- H.R. 3485
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-05-19: Referred to the House Committee on Small Business.
- Last Updated
- 2026-04-06T16:21:56Z
AI-Generated Summary
Purpose
This bill, H.R. 3485, aims to modify the Small Business Act by removing a specific rule that limits where certain construction subcontracts can be awarded under the 8(a) Business Development program. The 8(a) program helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts.
Key Provisions
- Repeals Paragraph (11) of Section 8(a) of the Small Business Act (15 U.S.C. 637(a)).
- This repeal eliminates the requirement that construction subcontracts awarded through the 8(a) program must go to businesses located in the same county or state where the work is performed.
Significant Changes to Existing Law
- Under current law, prime contractors (main companies awarded federal contracts) must prioritize local (same county or state) small businesses for construction-related subcontracts in the 8(a) program.
- The bill removes this geographic restriction, allowing subcontracts to be awarded to qualified 8(a) businesses anywhere in the U.S., broadening the pool of eligible subcontractors.
Potential Impacts
- On government agencies: Federal agencies involved in construction procurement (e.g., Department of Defense or General Services Administration) may see simplified contracting processes, potentially reducing administrative burdens and speeding up project timelines.
- On citizens and businesses: Small disadvantaged businesses outside the project area could gain more opportunities to participate in federal contracts, promoting nationwide economic inclusion. However, local communities might experience reduced direct economic benefits from construction projects, such as local jobs or spending.
- On international relations: No direct impact, as the bill focuses on domestic federal contracting.
Main Stakeholders Affected
- Small businesses in the 8(a) program: Gain expanded access to subcontracts, potentially increasing revenue and growth opportunities for disadvantaged firms.
- Prime contractors: Benefit from a larger, more flexible pool of subcontractors, which could lower costs or improve project efficiency.
- Local governments and communities: May see indirect effects on regional economies, with less emphasis on keeping construction dollars local.
- Federal oversight bodies: Such as the Small Business Administration (SBA), which administers the 8(a) program and will need to update guidelines and enforcement.
Notable Legal, Constitutional, or Political Implications
- Legal: Simplifies compliance with federal procurement rules under the Small Business Act, potentially reducing disputes over geographic preferences. No challenges to constitutional principles like equal protection are evident, as the change expands rather than restricts opportunities.
- Constitutional: Aligns with Congress's authority to regulate interstate commerce and support small businesses, without infringing on states' rights.
- Political: Could appeal to business advocates seeking deregulation, but might draw criticism from those prioritizing local economic development. The bill's bipartisan sponsorship (introduced by members from both parties) suggests broad support for easing federal contracting barriers.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Begich, Nicholas J. [R-AK-At Large]
Cosponsors (6)
Rep. Cole, Tom [R-OK-4], Rep. Tokuda, Jill N. [D-HI-2], Rep. Stauber, Pete [R-MN-8], Rep. Davids, Sharice [D-KS-3], Rep. Wittman, Robert J. [R-VA-1], Rep. Case, Ed [D-HI-1]
Recent Actions
- 2025-05-19: Referred to the House Committee on Small Business.
- 2025-05-19: Introduced in House
- 2025-05-19: Introduced in House
Bill Versions
- To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance. — issued 2025-05-19 — PDF (1 pages)