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Stauber Legislation to Provide Financial Certainty for Small Contractors Passes House

July 22, 2020

WASHINGTON, D.C. – This week, the House of Representatives passed Congressman Pete Stauber's (MN-08) legislation to ensure small businesses that are federal contractors are treated fairly. The legislation mandates that the business receive at least half of what they are owed should there be a contract modification, otherwise known as a change order. This legislation passed the House as part of the National Defense Authorization Act (NDAA) for fiscal year 2021. It will now head to the Senate for consideration.

Of his legislation's passage, Congressman Stauber stated, "Too often, when a small business signs a contract with a federal agency, that agency issues a change order halfway through the project that delays the small business from being paid for the work that they already completed. As a small business owner, I know that small businesses expect to be paid every time they perform a service and cannot afford these long delays in payments. By requiring the government to pay small businesses for at least half the work up front should a change order be issued, my legislation will hold agencies accountable and ensure government bureaucracy does not prevent small businesses from receiving the money they have earned in a timely fashion."

Watch Stauber speak on his legislation, HERE.

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