Dallas City Wire

Washington, DC - On April 19, Congressman Marc Veasey (TX-33) introduced the Small Business Payment for Performance Act along with Congressman Scott Peters (CA-50), Congressman Pete Stauber (MN-08), and Congressman Brian Fitzpatrick (PA-01). This bipartisan bill, also introduced in the 117th Congress, will require fair and ethical treatment of small construction contractors by federal agencies during the procurement process.

“Small businesses should not be held liable for changes in federal contracts made by the federal government,” said Rep. Marc Veasey. “I am proud to introduce the bipartisan Small Business Payment for Performance Act because it ensures these local contractors will not be left on the hook for paying for unplanned financial burdens the government is responsible for. In addition, our bipartisan legislation will boost our economy and create a more competitive market by incentivizing small businesses and contractors to partner with the federal government.”

“Small businesses on Main Street America are the economic engine of our economy, and it's important that the federal government does not place undue burdens on them while fulfilling government contracts," said Congressman Pete Stauber. "I’m proud to reintroduce the Small Business Payment for Performance Act, which will hold the federal government accountable for any changes in contracts won by small businesses to make sure small contractors don't have any unexpected financial burdens while completing contracts. This will result in more small businesses competing for federal contracts, and more economic prosperity for our communities.”

“Bidding for and maintaining federal contracts should not be an uphill battle for the small businesses in our communities,” said Rep. Scott Peters. “This bill provides small construction contractors certainty, financial protection, and a level playing field once all parties agree to a contract. I appreciate my colleagues' collaboration on this bill to avoid imposing burdensome costs on small businesses.”

“Small businesses are the backbone of our economy, but in the process for obtaining federal contracts, they are often subject to burdensome logistical and financial barriers,” said Congressman Brian Fitzpatrick. “The bipartisan Small Business Payment for Performance Act will protect hometown contractors from unnecessary hurdles and streamline the process for bidding and maintaining federal contracts, and I am proud to join my colleagues in standing up for small business owners.”

Background:

Changes to a contract, commonly known as "change orders," inevitably occur on construction projects. The government may issue change orders without the contractors' consent and often do not abide by change order rules, like formalizing change orders in writing.

This bill will:

•    Allow small businesses to request an equitable adjustment to the contracting officer if the contracting officer places a change order without the agreement of the small business.

•    Require the federal government to pay at least 50% of cost occurred from the change order upon receipt of the equitable adjustment.

Text of the bill can be found here.

Original source can be found here.