Summary

Creates a new rule in the Small Business Act that makes small businesses that win Federal contracts by falsely claiming their goods or services are made in the United States subject to the existing penalties and remedies for false certifications. The law applies the same set of sanctions already in statute but shortens one specified time period in the listed remedies from 5 years to 3 years when those remedies are applied to these small businesses. The change increases enforcement risk for small vendors that misrepresent the origin of products or services in federal procurement and shifts how long a particular remedy applies to them, while otherwise relying on existing penalty authorities.

Key Points

• Creates a new rule in the Small Business Act targeting small businesses that falsely claim products/services are "Made in the United States" when winning federal contracts.
• Subjects those small businesses to the penalties and remedies already provided elsewhere in the statute (no wholly new penalties are created).
• Reduces a specific remedial time period from 5 years to 3 years when that remedy is applied to these small-business violations.
• Increases compliance pressure on small contractors to validate and document country-of-origin claims for federal procurement.
• Uses existing enforcement framework, so federal agencies will apply current remedies with the single timing modification.
• Does not include new funding, an explicit effective date, or other procurement procedural changes in the text provided.
• Likely lowers the duration of a particular post-violation restriction for small businesses compared with the prior 5-year period.
• Affects contracting behavior and recordkeeping but is narrowly focused on false made-in-USA claims in federal contracting.