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Friday, January 31, 2025

New bill targets transparency in federal contracts for small businesses

U.S. Congressmen Mark Alford (R-MO) and George Latimer (D-NY), alongside Congressman Kweisi Mfume (D-MD), have introduced a new bill aimed at improving transparency in the federal contracting process for small and minority/women-owned businesses. The proposed legislation, named the Transparency and Predictability in Small Business Opportunities Act, seeks to enhance accountability in how government agencies handle contract solicitations.

"Small businesses are the fabric of this nation, and right now government agencies are not doing everything they can to support them," said Rep. Alford. He emphasized that the bill would require agencies to be accountable when canceling contract solicitations, which can lead to significant financial losses for small businesses. Additionally, the legislation mandates that existing Offices of Small and Disadvantaged Business Utilization assist these businesses in finding contracting opportunities.

Congressman Latimer highlighted the economic importance of small businesses: "By increasing transparency and eliminating confusion in the bidding process, we build the confidence and trust of small business owners in their relationship to the federal government." He noted that his first bill in Congress aims to aid small businesses by helping them understand why a contract solicitation was canceled and directing them toward alternative opportunities.

Congressman Mfume added that current processes often leave entrepreneurs without full disclosure when a solicitation is canceled. "This bipartisan legislation I am co-leading... would provide small businesses with total transparency regarding canceled solicitations," he stated.

The act requires the Small Business Administrator to issue regulations for more detailed disclosures on canceled solicitations. It also mandates federal agency offices dedicated to disadvantaged business utilization help firms seek new opportunities if their bids are canceled.

Federal agencies post contract solicitations on SAM.gov once they identify a need for specific products or services. Small businesses invest considerable time and resources preparing proposals in response. However, agencies have broad discretion to amend or cancel these solicitations without explanation, often leaving companies uninformed about such decisions.

For media inquiries related to Congressman Alford's role in this initiative, contact Lauren Hanemann at Lauren.Hanemann@mail.house.gov.

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