Overview

Title

To amend the Small Business Act to include requirements relating to new small business entrants in the scorecard program, and for other purposes.

ELI5 AI

The SPUR Act is a new rule to help small businesses get important jobs from the government. It makes sure we count how many new small businesses are getting these jobs, including ones owned by veterans, women, and people who face extra challenges.

Summary AI

H. R. 7988, also known as the “Small Business Procurement and Utilization Reform Act of 2024” or the “SPUR Act,” aims to amend the Small Business Act by adding requirements regarding new small business entrants in the federal scorecard program. The bill modifies existing scorecard requirements to include data on the number of new small business entrants receiving prime contracts, including those owned by service-disabled veterans, socially and economically disadvantaged individuals, and women. It clarifies definitions related to new small business entrants and the scorecard. Additionally, the bill states that no additional funding is authorized for these amendments, adhering to the CUTGO (Cut-As-You-Go) rule.

Published

2024-04-15
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-04-15
Package ID: BILLS-118hr7988ih

Bill Statistics

Size

Sections:
3
Words:
544
Pages:
3
Sentences:
9

Language

Nouns: 156
Verbs: 46
Adjectives: 33
Adverbs: 3
Numbers: 19
Entities: 34

Complexity

Average Token Length:
4.05
Average Sentence Length:
60.44
Token Entropy:
4.72
Readability (ARI):
30.98

AnalysisAI

General Summary of the Bill

The bill, known as the "Small Business Procurement and Utilization Reform Act of 2024" or the "SPUR Act," aims to amend the Small Business Act to enhance the evaluation of federal agencies' efforts in awarding contracts to new small business entrants. It specifically targets businesses owned by service-disabled veterans, those in HUBZone areas, socially and economically disadvantaged individuals, and women. A scorecard system is used to track and assess these efforts, focusing on the award of prime contracts across various industry categories.

Summary of Significant Issues

One of the central issues with the bill is the lack of a clear definition of what constitutes a "new small business entrant." Without specifying a time frame for when a business remains "new" after receiving its first prime contract, there is potential for businesses to exploit this ambiguity. Moreover, the bill mandates detailed reporting of contract awards by North American Industry Classification System (NAICS) code, which could burden federal agencies due to the complexity of data analysis required.

Furthermore, the bill asserts compliance with the Cut-As-You-Go (CUTGO) rule by not allowing additional budget appropriations, which could lead to insufficient funding for the bill's initiatives. There is also concern over the lack of detailed scorecard evaluation criteria, which could result in subjective assessments and inconsistent tracking across agencies.

Impact on the Public

If implemented effectively, this bill could enhance transparency and accountability in federal contracting, potentially leading to more equitable opportunities for small businesses across various sectors. This enhanced tracking could particularly benefit underserved or disadvantaged groups by providing clearer data on contract award disparities and successes.

However, the lack of additional funding could hamper the bill's successful execution. Agencies might struggle with resource allocation to accommodate the new reporting requirements, which might shift focus away from critical areas due to limited budgets.

Impact on Specific Stakeholders

Small Businesses: For small businesses, particularly those owned by veterans, women, and disadvantaged individuals, the bill may offer increased visibility and opportunities within federal procurement processes. However, inconsistencies or administrative burdens could limit these benefits if not managed well.

Federal Agencies: Agencies may face significant strain in implementing the scorecard requirements due to the complexity and detail of data collection and analysis without additional resources. This pressure could lead to reduced efficiency or unintended shifts in agency priorities.

Taxpayers and the General Public: While the intent of the bill is to foster fair competition and equitable treatment within federal contracts, taxpayers might be concerned about potential inefficiencies or administrative costs borne by agencies without additional funding. This concern is compounded by the potential for incomplete data reports due to vague language, which might obscure transparent use of taxpayer funds.

Overall, while the "SPUR Act" proposes significant potential improvements in small business engagement within federal procurements, the outlined issues suggest a need for clearer guidelines and potentially more robust funding to ensure effective implementation.

Issues

  • The definition of 'new small business entrant' in Section 2 does not specify a time frame for when a small business is considered 'new' after receiving its first prime contract, which could lead to inconsistent evaluations and possible gaming of the system by businesses seeking to maintain 'new' status indefinitely.

  • The requirements for the reporting of data by North American Industry Classification System (NAICS) code in Section 2 could impose a significant administrative burden on agencies due to complex data aggregation and analysis needs, potentially slowing down or complicating the implementation of the scorecard program.

  • The section on compliance with CUTGO in Section 3 states that no additional amounts are authorized for appropriations, which could lead to insufficient financial resources for effective implementation of the Act, thereby risking its operational success.

  • The term 'Compliance with CUTGO' in Section 3 is not explained within the bill, potentially confusing readers unfamiliar with fiscal policy shorthand, which could limit understanding and transparency of financial restrictions imposed by the bill.

  • The use of vague language like 'if available' concerning data comparison between fiscal years in Section 2 may allow for incomplete data reporting, reducing accountability and potentially hampering the effectiveness of the scorecard evaluation.

  • The lack of detailed evaluation criteria in the scorecard requirements under Section 2 leaves significant room for subjective assessments, which could lead to inconsistencies and potential bias in evaluating and scoring federal agencies.

  • Section 1 only specifies the short title, 'Small Business Procurement and Utilization Reform Act of 2024', without additional content, making it hard to assess whether it aligns with broader legislative goals or impacts budgetary considerations.

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 section cites the name of the law as the “Small Business Procurement and Utilization Reform Act of 2024,” also known as the “SPUR Act.”

2. Modifications to scorecard requirements Read Opens in new tab

Summary AI

The Small Business Act is being updated to include new guidelines for evaluating small businesses. These changes involve tracking the number of new small businesses receiving contracts, especially those owned by certain groups like veterans or disadvantaged individuals, and using a rating system to measure how well federal agencies meet their goals.

3. Compliance with CUTGO Read Opens in new tab

Summary AI

No additional funds are allowed to be allocated for the implementation of this Act or its amendments.