Overview
Title
An Act 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 wants to help small businesses get more chances to work with the government, especially new ones and those owned by certain groups. It changes how the government checks which small businesses get these opportunities, but it doesn't use any extra money for these changes.
Summary AI
H. R. 818, also known as the "Small Business Procurement and Utilization Reform Act of 2025" or the "SPUR Act," aims to change the Small Business Act by adding new requirements to the scorecard program. The bill focuses on tracking new small business entrants, including those owned by disadvantaged groups and service-disabled veterans, by measuring how many receive prime contracts each year. It updates the definitions and structure of the scorecard used to evaluate Federal agencies' support for small businesses. Notably, it specifies that no extra funds are authorized to implement these changes.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
General Summary of the Bill
The bill titled "Small Business Procurement and Utilization Reform Act of 2025" or the "SPUR Act" aims to amend the Small Business Act. Its main focus is on modifying the scorecard program, which evaluates federal agencies' efforts in meeting small business contracting goals. Key changes include adding new requirements for tracking the number of new small business entrants awarded federal contracts. These entrants include businesses owned by veterans, women, and disadvantaged individuals. The bill also defines terms like "new small business entrant" and "scorecard" and ensures compliance with budgetary constraints under the CUTGO rule, which mandates that spending increases must be offset by cuts.
Summary of Significant Issues
One issue with the bill is the narrow definition of "new small business entrant" in the scorecard program. This definition may exclude businesses with some prior contractual experience, limiting opportunities for slightly more established small businesses to benefit from federal contracts. The bill’s language, particularly in the definitions section, is complex, potentially causing confusion among stakeholders about how federal agencies are evaluated. Additionally, the bill imposes increased reporting requirements on federal agencies, potentially adding administrative burdens without clear evidence of benefit. Lastly, while it adheres to CUTGO requirements by not authorizing additional spending, it might restrict the bill's effectiveness if unforeseen financial needs arise.
Impact on the Public Broadly
The bill's amendments to the scorecard reflect a commitment to support diverse small businesses in obtaining federal contracts. By requiring federal agencies to report on the involvement of new small business entrants, the bill seeks to enhance transparency and accountability, which could ultimately benefit the public by fostering a more inclusive economy. However, the increased administrative demands might divert agency resources away from other important tasks, impacting their capacity to serve the public efficiently.
Impacts on Specific Stakeholders
Small businesses, particularly those owned by veterans, women, and disadvantaged individuals, stand to gain from the SPUR Act's focus on documenting and potentially increasing their participation in federal contracting. Enhanced visibility in the scorecard system could lead to greater opportunities for these businesses. However, the bill’s narrow definition for new entrants might disadvantage small businesses with minimal prior experience, which are still in need of support. Federal agencies might face challenges in adapting to the additional reporting requirements without extra funding. This could lead to resource allocation issues, affecting their effectiveness and potentially impacting their employees who manage these tasks.
While the bill is designed to align with budget rules, its strict adherence to existing spending limits without flexibility could hamstring initiatives to improve the process or respond to new challenges, potentially affecting all stakeholders involved. Overall, balancing these issues requires careful consideration to ensure the bill's positive goals are met without adverse side effects.
Issues
The definition of 'new small business entrant' in Section 2 might exclude businesses with limited experience or those that have only been involved in non-federal contracts, potentially disadvantaging certain small businesses from participation in federal contracts.
The lack of detail in Section 1 about the 'SPUR Act' could lead to ambiguities and misunderstandings regarding its intent and application, which is critical for thorough evaluation and public transparency.
In Section 2, the complexity of the language used in defining 'scorecard' could make it difficult for stakeholders to understand how federal agencies are evaluated, potentially leading to confusion or misinterpretation of agency performances.
The reporting requirements imposed on federal agencies in Section 2 might increase administrative overhead without providing clear benefits, which could redirect resources from other critical tasks.
Section 3's statement that no additional funds will be authorized could potentially limit the effectiveness of the Act if unexpected expenses arise, risking the implementation of its provisions.
The term 'CUTGO' used in Section 3 is not defined, potentially leading to confusion or inaccuracies in how the bill's compliance is understood or enforced.
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 it can be referred to as the "Small Business Procurement and Utilization Reform Act of 2025" or simply as the "SPUR Act".
2. Modifications to scorecard requirements Read Opens in new tab
Summary AI
The section modifies the requirements of the Small Business Act's scorecard system by including new metrics. It now requires tracking the number of new small businesses, like those owned by veterans or women, that receive government contracts and comparing these numbers to the previous year. It also provides definitions for terms such as "new small business entrant" and "scorecard."
3. Compliance with CUTGO Read Opens in new tab
Summary AI
This section states that no extra money is authorized to be spent to implement the Act or its changes, ensuring compliance with the CUTGO rule, which requires that any increase in spending be offset by cuts elsewhere.