Stauber Leads Bipartisan Group in Reintroducing Bill to Help Small Businesses Compete for Federal Contracts
Today, Congressman Pete Stauber (MN-08) introduced the Small Business Payment for Performance Act along with Congressman Scott Peters (CA-50), Congressman Marc Veasey (TX-33), 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 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 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 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.”
A variety of stakeholder groups endorsed the Small Business Payment for Performance Act, many of which provided statements of strong support.
"The American Subcontractors Association (ASA) Government Relations Committee Co-Chairs Gloria Hale (CEO, President and Co-Founder Hale Glass) and Courtney Little (President and General Counsel ACE Glass) applaud Rep. Stauber, Rep. Veasey, Rep. Peters, and Rep. Fitzpatrick for championing this important legislation for construction subcontractors, who are frustrated daily by the slow approval of and lack of payment for change orders, which are ubiquitous on construction projects. We wholeheartedly support this legislation as it would require federal agencies to make timely change order payments on pending construction projects. Thank you, Rep. Stauber, Rep. Veasey, Rep. Peters, and Rep. Fitzpatrick, for your leadership on this legislation and ASA is committed to assisting you with advancing it in the 118th Congress." - The American Subcontractors Association
"The Associated General Contractors of America (AGC) applauds Rep. Pete Stauber (R-MN), Scott Peters (D-CA), Brian Fitzpatrick (R-PA) and Rep. Marc Veasey (D-TX) for introducing bipartisan legislation—entitled the Small Business Payment for Performance Act—that will help small businesses who provide critical services for the federal government. This bill will help ensure small business construction contractors receive timely payment for change orders. Construction firms of all sizes, but especially small businesses, have had to weather the effects of the pandemic and soaring construction materials costs. This commonsense and bipartisan bill will help ensure that our nation's small business construction contractors do not go broke waiting to be paid for work the federal government ordered them to perform."- Jimmy Christianson, Vice President of Government Relations, Associated General Contractors of America
“The National Association of Surety Bond Producers (NASBP) commends Representatives Pete Stauber (R-MN), Scott Peters (D-CA), Marc Veasey (D-TX) and Brian Fitzpatrick (R-PA) for the introduction of the ‘‘Small Business Payment for Performance Act of 2023.’’ This critical legislation lessens the considerable financing burden placed on small construction businesses when federal project owners make unilateral changes to construction contracts. By requiring federal project owners to make interim partial payments on owner-directed change orders, small construction businesses receive necessary and timely cash flow for performance. As the construction industry continues to face uncertain and variable market conditions, including supply disruptions and increasing materials prices, all construction businesses, but particularly small construction businesses, need federal payment practices that are not unfairly burdensome. Passage of this legislation will ensure that small construction businesses performing on federal contracts have confidence that equitable payment practices exist for owner-directed change orders. Thank you to Reps. Stauber, Peters, Veasey, and Fitzpatrick for recognizing this significant issue and introducing this important procurement reform.”- National Association of Surety Bond Producers
“SMACNA contractors strongly agree with the language and greatly appreciate the intent of Rep. Stauber in sponsoring and reintroducing his Small Business Payment for Performance Act and give it our highest rating for active support. This vitally important legislation would allow contractors to submit a request for equitable adjustment (REA) or project contract fee adjustment to an agency that had approved a performed change order to a project’s original design or scope. The Small Business Payment for Performance Act would ensure small business federal contractors get paid sooner after project changes are completed and certified as directed by federal agency officials. Our members have millions of dollars in outstanding change order payments on completed and certified work and other contractors have countless millions more outstanding. With a quickly expanding list of federal infrastructure projects now being bid, we urge Congress time to expedite passage of the long overdue Stauber legislation before the problems grows worse and threatens the financial health of contractors small, medium, and large.” - Stan Kolbe, Executive Director of Government and Political Affairs, Sheet Metal and Air Conditioning Contractors National Association
"On behalf of our 4,000 member contractors across America, I thank Congressman Pete Stauber, Congressman Marc Veasey, Congressman Scott Peters, and Congressman Brian Fitzpatrick for introducing the Small Business Payment for Performance Act. As our nation’s economy begins to slowly recover from devastating cost increases due to inflation, it is imperative Congress work to protect small businesses so that they remain economically and financially sound. This legislation will help ensure NECA contractors receive an equitable adjustment for any change order the federal government may request and that they are paid sooner for the work they have completed. I urge the Small Business Committee and House Leadership to move this critical legislation as soon as possible." - Marco Giamberardino, Senior Vice President of Government and Public Affairs, National Electrical Contractors Association
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.
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