Overview

Title

To ensure efficiency and fairness in Federal subcontracting, and for other purposes.

ELI5 AI

H.R. 10563 is a plan to make sure small businesses are treated fairly when big companies hire them to help with their work for the government. It wants to check that small businesses get their fair share of work, tell them what's happening, and use new computer tools to keep track of everything better.

Summary AI

H.R. 10563 aims to promote efficiency and fairness in federal subcontracting. The bill sets out requirements for monitoring and reporting on small business involvement, mandates that prime contractors notify subcontractors about contract statuses, and strengthens enforcement of subcontracting plans. It also requires studies on the use of data for assessing contractor relationships and outlines penalties for failing to meet small business utilization goals. Additionally, the bill calls for improved outreach to small businesses and modernization of the electronic subcontracting reporting system.

Published

2024-12-31
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-12-31
Package ID: BILLS-118hr10563ih

Bill Statistics

Size

Sections:
9
Words:
1,568
Pages:
8
Sentences:
33

Language

Nouns: 515
Verbs: 110
Adjectives: 96
Adverbs: 13
Numbers: 63
Entities: 98

Complexity

Average Token Length:
4.71
Average Sentence Length:
47.52
Token Entropy:
5.17
Readability (ARI):
28.25

AnalysisAI

The proposed bill, known as the "Ensuring Efficiency and Fairness in Federal Subcontracting Act of 2024," aims to enhance the accountability and transparency of federal subcontracting processes. It is geared towards ensuring that small businesses are given fair opportunities in federal contracts and that the subcontracting process is executed efficiently. The bill proposes several reports and studies to understand and improve current practices, besides suggesting modifications to existing regulatory frameworks.

General Summary of the Bill

At its core, this piece of legislation seeks to foster smoother relationships and clearer communication channels between prime contractors and subcontractors involved in federal projects. A significant aim is to boost the participation of small businesses in federal contracts by ensuring that the existing rules are enforced and possibly updated to reflect the current needs of small enterprises. The bill mandates several governmental studies and reports, intending to collect data and insights that can inform future regulatory adjustments and enhance transparency. It also details new requirements for how prime contractors communicate with subcontractors and outlines potential penalties for non-compliance.

Significant Issues

One of the recurring issues across multiple sections is the lack of specificity in the proposed studies and regulatory updates. For instance, Section 3 and Section 6 task the Comptroller General with studies that lack detailed methodologies and clear metrics, which could lead to inefficiencies or ambiguous outcomes. The concerns about imposing effective penalties for failing to meet small business utilization goals, as outlined in Section 7, also stand out. The proposed penalties may not adequately deter non-compliance, hence failing to achieve the goals of the bill.

Additionally, the modernization plan for the electronic subcontracting reporting system (Section 9) raises concerns about cost estimation and procedural transparency. There is no specified budget, which could result in overspending or inefficient resource use. Another notable issue is the absence of a clearly defined process for reporting non-compliance in prime contractor-subcontractor communications, which could lead to oversight and delayed corrective actions.

Impact on the Public

For the general public, this bill could have a broad, albeit indirect, positive impact. By promoting fairness and efficiency in federal contracts, the bill could result in better use of taxpayer dollars and possibly more competitive prices and innovation resulting from increased participation by small businesses. Efficient subcontracting could mean timelier and potentially less costly government projects, ultimately benefiting public services and infrastructure.

Impact on Specific Stakeholders

Small Businesses: This demographic stands to gain significantly from the bill. If effectively implemented, the bill could open more opportunities for small businesses to participate in federal contracts, potentially boosting their economic prospects and contributing to job creation.

Prime Contractors: Large companies serving as prime contractors might face increased pressure to comply with new reporting requirements and utilization goals. This could entail administrative adjustments and possibly increased compliance costs.

Government Agencies: Agencies will need to adjust their current oversight and reporting mechanisms to align with new requirements, which could involve training and additional resources to execute effective enforcement and analysis.

Taxpayers: As stakeholders interested in efficient and fair government spending, taxpayers could benefit from more transparent and equitable subcontracting practices. Improved practices might lead to cost savings and improved service delivery from government-funded projects.

In conclusion, while the bill outlines laudable goals for improving federal subcontractor practices, its success hinges on addressing outlined ambiguities and potential implementation challenges. Careful attention to the process details and robust enforcement could make this bill a meaningful step towards enhancing small business participation and efficacy in federal contracting.

Issues

  • Section 7: The penalties for failure to meet small business utilization goals lack clarity and may not adequately ensure compliance. The determination of 'utilization level prescribed in the subcontracting plan' is ambiguous, and the consequence of receiving a warning letter may not be a strong enough deterrent.

  • Section 6: The Comptroller General study on CPARS lacks specific methodology and clear metrics for assessing adverse subcontractor experiences, which may lead to inefficient or inconsistent analysis. The reporting timeline of 180 days might be rushed given the complexity.

  • Section 3: The Comptroller General report on small business utilization does not clearly define 'appropriate congressional committees' and lacks a specific oversight mechanism, which raises concerns about accountability and transparency. The timeline of 180 days may also be insufficient for comprehensive analysis.

  • Section 4: There are no specified penalties for prime contractors failing to notify subcontractors of contract status within 30 days, risking non-compliance. Additionally, the process for subcontractors to report delays is not fully detailed, creating potential for ambiguity.

  • Section 9: The plan to modernize the electronic subcontracting reporting system (eSRS) lacks estimated cost details and does not specify a competitive process for selecting vendors, raising concerns about potential wasteful spending or favoritism.

  • Section 5: The study on strengthening enforcement provisions to protect subcontractors does not specify a timeline for completion or budget, leading to potential delays and unaccounted expenses. The exploration of an alternative complaint route is vague, lacking criteria for determining its necessity.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of this Act states that its official name is the "Ensuring Efficiency and Fairness in Federal Subcontracting Act of 2024."

2. Definitions Read Opens in new tab

Summary AI

The section defines terms used in the act. "Appropriate congressional committees" refers to specific committees in the Senate and House of Representatives, while "executive agency" is defined by another law.

3. Comptroller general report on small business utilization in Federal contracting Read Opens in new tab

Summary AI

The section requires the Comptroller General of the United States to deliver a report to Congress within 180 days of the Act's enactment. This report will focus on how small businesses are involved in big and long-term Federal contracts, highlighting ways to better track their participation, particularly in contracts like IDIQs and GWACs.

4. Requirement to notify subcontractors of contract status Read Opens in new tab

Summary AI

The section requires the Federal Acquisition Regulatory Council to update the rules so that prime contractors must inform their subcontractors about the contract status within 30 days of a request. It also sets up a system for subcontractors to report delays, and adds consequences for prime contractors with delays, and mandates offerors to explain how they will support small businesses.

5. Study on strengthening enforcement provisions designed to protect subcontractors Read Opens in new tab

Summary AI

The section directs the Attorney General, along with other federal administrators, to study how to better enforce rules that ensure fair treatment of subcontractors. This includes considering new ways for subcontractors to report serious problems when the main contractor or other subcontractors do not follow agreed-upon plans.

6. Comptroller General study on utilization of Contractor Performance Assessment Reporting System (CPARS) data to assess relationships between prime and subcontractors Read Opens in new tab

Summary AI

The Comptroller General is tasked with studying how data from the Contractor Performance Assessment Reporting System (CPARS) can be used to understand the relationships between main contractors and subcontractors. The study will examine how subcontractors' negative experiences affect CPARS scores, how these scores influence contractors' ability to win government contracts, and whether the scoring timeframe encourages good practices between main contractors and subcontractors.

7. Penalties for failure to meet small business utilization goals Read Opens in new tab

Summary AI

The section specifies that the Federal Acquisition Regulation will be updated so that if a prime contractor fails to use small businesses for at least 50% of the amount specified in their subcontracting plan, they won't get a performance incentive bonus. Moreover, if at any stage they fall below 75% utilization, they might receive a warning from the contracting officer, highlighting the issue and possible loss of incentive bonuses.

8. Outreach to small business contractors Read Opens in new tab

Summary AI

The bill requires the Director of the Office of Management and Budget to guide executive agencies on how to better reach out to small businesses and inform them about subcontracting opportunities. This includes using webinars, online events, and other creative methods, as well as organizing at least two general outreach sessions annually for potential small business contractors and one session per year for specific groups such as veteran-owned, HUBZone, socially and economically disadvantaged, and women-owned small businesses.

9. Improvements to the electronic subcontracting reporting system Read Opens in new tab

Summary AI

The section mandates that within a year of the law's enactment, the General Services Administration (GSA) must create a plan to update the Electronic Subcontracting Reporting System (eSRS) as part of its management strategy. The plan needs to outline the steps for modernization, assess the GSA’s ability to support the updated system, estimate costs and funding, and describe any additional resources needed. Once updated, the GSA must submit this plan to Congress within 30 days.