A bill 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
- S. 991
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-03-12: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-04-06T12:52:29Z
AI-Generated Summary
Overview of S. 991 (119th Congress, 1st Session)
S. 991 is a bill introduced in the U.S. Senate on March 12, 2025, by Senators Dan Sullivan (R-AK), Lisa Murkowski (R-AK), and Mazie Hirono (D-HI). It aims to amend the Small Business Act, which supports small businesses in federal contracting, particularly through programs for disadvantaged firms.
Purpose
The legislation seeks to remove geographic restrictions on how construction subcontracts are awarded under the federal government's 8(a) Business Development program. This program helps small businesses owned by socially and economically disadvantaged individuals (like minorities or women) compete for government contracts. The goal is to expand opportunities for these businesses by eliminating rules that limit subcontracts to local areas, promoting broader national participation.
Key Provisions
- Repeal of Specific Requirement: The bill repeals paragraph (11) of section 8(a) of the Small Business Act (codified at 15 U.S.C. § 637(a)). This paragraph previously required that, for certain construction contracts awarded under the 8(a) program exceeding $10 million, at least 50% of the total dollar amount of subcontracts for construction work had to go to small business concerns located in the same county or state where the work is performed.
- The change applies only to construction-related subcontracts and does not alter other aspects of the 8(a) program, such as eligibility criteria or overall set-aside goals for disadvantaged businesses.
Significant Changes to Existing Law
- Removal of Geographic Limitation: Prior law favored local businesses by mandating that a significant portion of construction subcontracts stay within the county or state of the project site. This bill eliminates that mandate entirely, allowing prime contractors (the main companies awarded federal contracts) to select 8(a) subcontractors from anywhere in the U.S. without the local preference.
- No new requirements or penalties are added; the focus is solely on deregulation to simplify contracting processes.
Potential Impacts
- On Government Agencies: Federal agencies like the Department of Defense or General Services Administration, which handle large construction projects, may see faster and more flexible procurement. This could reduce administrative burdens in verifying local compliance but might require updates to contracting guidelines.
- On Citizens and Businesses: Small disadvantaged businesses nationwide gain easier access to federal construction opportunities, potentially increasing their revenue and growth. However, local firms in project areas might face stiffer competition from out-of-state rivals, possibly affecting regional job markets.
- On International Relations: Minimal direct impact, as the bill focuses on domestic U.S. small business contracting and does not involve foreign entities or trade.
Main Stakeholders Affected
- Small Disadvantaged Businesses: Primary beneficiaries, especially those outside major project locations, as they can now compete more freely for subcontracts.
- Prime Contractors: Large firms awarded 8(a) contracts benefit from a wider pool of subcontractors, potentially lowering costs and improving project efficiency.
- Federal Agencies and Oversight Bodies: Entities like the Small Business Administration (SBA), which administers the 8(a) program, will need to adjust rules and training.
- Local Communities and Workers: In areas with federal construction projects (e.g., military bases or infrastructure sites), there could be reduced economic benefits for local small businesses and jobs.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The repeal simplifies compliance with federal contracting laws, reducing potential disputes over "local preference" rules. It aligns with broader efforts to streamline regulations under the Small Business Act but could invite challenges if seen as disadvantaging certain regions.
- Constitutional Implications: No apparent conflicts with the Commerce Clause (which allows Congress to regulate interstate business) or equal protection principles, as the change promotes equal opportunity across states without discriminating based on protected classes.
- Political Implications: The bill reflects bipartisan support (from senators in Alaska and Hawaii, states with remote geographies that may benefit from less local bias). It could appeal to pro-business conservatives favoring deregulation and Democrats supporting minority-owned businesses, but might draw criticism from those prioritizing local economic development in rural or underserved areas. If passed, it would require SBA rulemaking to implement, potentially influencing future small business policy debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. Murkowski, Lisa [R-AK], Sen. Hirono, Mazie K. [D-HI]
Recent Actions
- 2025-03-12: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2025-03-12: Introduced in Senate
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 2025-03-12 — PDF (1 pages)