The complexity of government contracts often discourages many businesses from competing. Image: Mark Van Scyoc/Shutterstock.com
By: FEDweek StaffA bill (HR-787) approved by the House Small Business Committee on a bipartisan vote and now ready for a floor vote aims to make agency contracting more accessible to small businesses by requiring that notices of contracting opportunities be “clear, concise, and accessible to small business concerns.”
Says a committee report on the bill, “The number of small businesses engaged in federal contracting has dropped precipitously over the past ten years. This is, in part, driven by the complexity of the language in federal contracts. The complexity of these contracts often discourages many businesses from competing for a federal government contract.”
It says for example that even though the government exceeded its goal of awarding at least 23 percent of prime contracting dollars to small businesses in fiscal 2023 by exceeding 28 percent, there has been a roughly 40% decrease in the number of small businesses receiving prime contract awards over the past decade. “The data show that the federal government is not retaining current small business government con tractors, and new small businesses are not choosing to enter the federal market,” it says.
“Small businesses are typically experts in their chosen fields, not in the law or federal contracting. Overly burdensome contracts re quire many small firms to hire attorneys and contract specialists to ensure compliance with agreements terms. This serves as a massive barrier to small business participation in government contracting. Ensuring contracts are written in an understandable manner will expand contracting opportunities to more small businesses,” it says.
Keywords would be required in the description to make it easier and quicker to identify what the notice is about. The SBA would have to develop rules to implement those requirements within 90 days.
“Many stakeholders raise concerns about the complexity of the requirements for contracting with the government, especially for small businesses seeking a federal contract for the first time. This complexity can be compounded by the language used in contracting documents, which may be unfamiliar to a small business with no previous government work,” the report says.
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