To require the Secretary of Defense to report on certain contracts and awards to small business concerns, and for other purposes.
- Bill Number
- H.R. 7076
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-01-14: Referred to the House Committee on Armed Services.
- Last Updated
- 2026-02-25T18:28:09Z
AI-Generated Summary
Purpose of the Legislation
H.R. 7076 aims to ensure that the Department of Defense (DoD) fully complies with laws requiring contracts to be awarded to small businesses, particularly for smaller-value purchases. It mandates a review to identify any gaps in this process and provides recommendations to improve it.
Key Provisions
- Required Study: The Secretary of Defense, through the DoD's Office of Small Business Programs, must conduct a study on contracts valued at or below the "simplified acquisition threshold" (a legal limit, currently about $250,000, for streamlined buying processes without full competitive bidding). The study will check if DoD is properly applying rules from the Small Business Act that prioritize small businesses (defined as independently owned companies with limited employees and revenue, typically under 500 employees for most industries).
- Report Submission: Within 180 days of the bill becoming law, the Secretary must submit a detailed report to the House and Senate Armed Services Committees, the House Small Business Committee, and the Senate Small Business and Entrepreneurship Committee. The report must include:
- Total dollar value of such contracts over the past five years, including the percentage and amount awarded to small businesses.
- Descriptions of contract types (e.g., products or services) not awarded to small businesses.
- Explanations of why certain contracts were not reserved ("set aside") exclusively for small businesses.
- Identification of patterns where non-small businesses received contracts that should have been set aside for small businesses.
- Recommendations for updates to laws, rules, policies, or guidance to better enforce small business set-asides.
Significant Changes to Existing Law
This bill introduces a one-time study and reporting requirement, which does not directly amend current laws like the Small Business Act or federal procurement rules (in Title 10 of the U.S. Code). However, it could lead to future changes based on the report's recommendations, potentially strengthening enforcement of small business preferences in DoD contracting without altering the simplified acquisition threshold itself.
Potential Impacts
- On Government Agencies: The DoD will face additional administrative workload for the study and report, promoting greater internal oversight and accountability in procurement practices. This could lead to more efficient use of small business set-aside rules.
- On Citizens and Small Businesses: Small business owners, especially those supplying defense needs, may gain better access to low-value contracts, fostering economic growth and job creation in local communities. Larger companies might see reduced opportunities in these categories if set-asides increase.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. contracting and small business support.
Main Stakeholders Affected
- Department of Defense (DoD): Responsible for conducting the study and implementing any future recommendations.
- Small Business Concerns: Beneficiaries through potential increases in contract awards and clearer guidelines.
- Congressional Committees: House and Senate Armed Services Committees (overseeing defense policy) and Small Business Committees (advocating for entrepreneurs), who receive the report to inform future legislation.
- Procurement Officials and Contractors: DoD buyers and companies competing for contracts, as patterns of non-compliance are highlighted.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces existing federal mandates under the Small Business Act for equitable contracting without creating new enforceable rights; the report's recommendations could prompt regulatory tweaks by the DoD or Congress.
- Constitutional: Aligns with Congress's spending power (Article I, Section 8) to direct federal procurement, with no apparent free speech, due process, or equal protection concerns.
- Political: Supports bipartisan goals of promoting small business participation in government contracts, which is a key economic policy priority; it may highlight inefficiencies in DoD operations, potentially influencing budget and oversight debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Scholten, Hillary J. [D-MI-3]
Recent Actions
- 2026-01-14: Referred to the House Committee on Armed Services.
- 2026-01-14: Introduced in House
- 2026-01-14: Introduced in House
Bill Versions
- To require the Secretary of Defense to report on certain contracts and awards to small business concerns, and for other purposes. — issued 2026-01-14 — PDF (3 pages)