Sponsors (3)
The bill expands competition and procurement flexibility for federal construction subcontracts—benefiting out-of-area small businesses and potentially lowering costs—but reduces locally protected subcontracting, which can harm jobs, revenue, and tax bases in communities where projects occur.
Small-business contractors located outside the project county or state can compete for federal construction subcontracts, increasing their opportunities to win work and potentially raise revenue.
Federal procurement and prime contractors gain greater flexibility to award subcontracts across broader geographic areas, which can improve efficiency and potentially lower project costs.
Local small businesses in the project area may lose protected access to federal construction subcontracts, reducing local jobs and revenue for community firms.
Communities where projects are performed could see reduced local subcontracting, shifting tax receipts and economic activity away from those areas and weakening local economic benefits from federal projects.
Based on analysis of 2 sections of legislative text.
Removes the legal requirement that construction subcontracts be awarded within the county or State where the federal contract is performed.
Introduced March 12, 2025 by Daniel Scott Sullivan · Last progress March 12, 2025
Repeals the law that required construction subcontracts awarded under the Small Business Act to be performed within the county or State where the prime contract is performed. The change removes a geographic restriction, allowing prime contractors greater flexibility to award construction subcontracts outside the county or State of performance. This alters how federal construction subcontracts are distributed: it may increase competition from out-of-area firms, affect local hiring and small business opportunities, and simplify a compliance rule for contractors and contracting officers. The change does not create new funding or set new program authorizations.