The Small Business Representation in Contracting Rulemaking Act

Bill Number

H.R. 3736

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-06-04: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-06-23T14:23:01Z

AI-Generated Summary

Purpose

This legislation aims to increase small business representation in the federal government's process for creating rules on government contracting. It does so by adding the head of the Small Business Administration (SBA) to a key advisory group that develops these rules, ensuring small businesses have a stronger voice in how federal procurement policies are shaped.

Key Provisions

• Addition to the Federal Acquisition Regulatory Council (FAR Council): The bill amends Section 1302(b) of Title 41, United States Code, to include the SBA Administrator as a permanent member of the FAR Council. The FAR Council is a group that coordinates and issues regulations for federal government purchases (known as the Federal Acquisition Regulation or FAR).
• Technical Updates: It makes minor wording changes to the law to reflect the new member, ensuring the council's rules apply correctly.
• Required Report: Within 90 days of the bill becoming law, the SBA Administrator must submit a report to the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship. The report must cover:
• An evaluation of the staff and budget needed for the SBA to fulfill its new role on the council.
• Suggestions for updates to existing laws, plans, policies, or rules to help the SBA perform these duties effectively.

Significant Changes to Existing Law

• Previously, the FAR Council consisted of representatives from the Department of Defense, General Services Administration, National Aeronautics and Space Administration, and the Office of Federal Procurement Policy. This bill expands membership by adding the SBA Administrator, giving small business interests direct input into procurement rulemaking for the first time.
• No other major overhauls; the changes are targeted and procedural.

Potential Impacts

• On Government Agencies: The SBA will gain influence over federal contracting rules, potentially leading to more small business-friendly policies in areas like bidding processes and contract awards. Other agencies may need to adjust coordination efforts to include SBA input, which could slow but improve the rulemaking process.
• On Citizens and Businesses: Small businesses, especially those seeking federal contracts, could benefit from regulations that better address their needs, such as reduced barriers to entry or set-aside programs (reserved contracts for small firms). Larger businesses might face increased competition in certain procurements.
• On International Relations: Minimal direct impact, though it could indirectly affect how U.S. government contracts with foreign entities are regulated if small business priorities influence those rules.

Main Stakeholders Affected

• Small Businesses: Primary beneficiaries, as they gain advocacy in federal contracting rules.
• Small Business Administration (SBA): Takes on new responsibilities and influence in procurement policy.
• Federal Agencies Involved in Procurement: Such as the Department of Defense, General Services Administration, and others that rely on the FAR Council for guidance.
• Congressional Committees: The House and Senate Small Business Committees, which receive the required report and oversee implementation.
• Federal Contractors: Both small and large firms competing for government work.

Notable Legal, Constitutional, or Political Implications

• Legal: The changes are straightforward amendments to procurement law (Title 41), aligning with existing statutory frameworks for federal advisory councils. No challenges to enforceability are evident, but the report could lead to future legislative tweaks.
• Constitutional: No apparent issues; it supports Congress's authority under Article I to regulate federal spending and commerce, while promoting equitable access to government opportunities.
• Political: Enhances bipartisan support for small business initiatives (introduced by Representatives from both parties), potentially signaling a push for economic equity in federal spending. It may encourage ongoing debates about balancing efficiency in procurement with support for underrepresented businesses.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Simon, Lateefah [D-CA-12]

Cosponsors (1)

Rep. Velázquez, Nydia M. [D-NY-7]

Recent Actions

• 2025-06-04: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-04: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-06-04: Introduced in House
• 2025-06-04: Introduced in House

Bill Versions

• The Small Business Representation in Contracting Rulemaking Act — issued 2025-06-04 — PDF (3 pages)