To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance.

Key Points

• This bill removes a federal rule that requires small businesses to hire subcontractors from the same county or state where a government construction project is located. Currently, certain small businesses must follow these geographic limits when picking partners for federal work.
• The change specifically targets the 8(a) program, which is designed to help small businesses owned by socially or economically disadvantaged people compete for government contracts. By removing these local requirements, these businesses can look for subcontractors in a wider area.
• The goal of this change is to give small businesses more flexibility. It may help them find specialized workers or lower-cost partners who live outside the immediate area of the construction site.
• While this could make it easier for small businesses to finish federal projects, it might also mean that some local subcontractors lose out on work to companies from other states.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.