Sponsors (6)
The bill improves transparency and standardization in reporting new small‑business prime contract entrants while preserving a cost‑neutral posture for taxpayers, but it may shift implementation costs onto agencies (and thus taxpayers) and could undercount some firms, creating trade‑offs between clearer data and funding/coverage gaps.
Small businesses (including SDVOSBs, HUBZone, SDBs, and women‑owned firms) and the public will get standardized, NAICS‑level year‑over‑year reporting that makes it easier to see how many new entrants won prime contracts, improving transparency into contracting opportunities and outcomes.
The Act explicitly prevents new appropriations for its implementation, reducing the likelihood of increased federal spending and helping maintain current budget limits.
Agencies will likely face extra administrative burden and costs to collect NAICS‑level entrant data and produce year‑over‑year comparisons, which could require staff time or systems work paid from existing budgets or increased overhead.
Firms that previously held subcontracts or other federal awards but not prime contracts may be excluded from the 'new entrant' counts, understating actual small‑business participation and potentially skewing performance metrics.
Because the Act disallows new appropriations, agencies may lack funding flexibility to implement the reporting requirements; if costs must be absorbed within existing budgets, agencies or service recipients could face reduced services or delays (i.e., an unfunded mandate risk).
Based on analysis of 3 sections of legislative text.
Requires agency scorecards to report counts of first-time federal prime-contract awardees by NAICS code and report year-over-year comparisons when available.
Adds a new reporting requirement to federal small-business scorecards to count and report the number of "new small business entrants" that win federal prime contracts by industry (NAICS) and to update related definitions; also creates a short-title provision and states that no new appropriations are authorized to implement the changes. The measure does not authorize new spending and mainly changes reporting and definitional language in the Small Business Act scorecard requirements.
Introduced January 28, 2025 by Peter Stauber · Last progress February 25, 2025