Stauber and Bipartisan Group of Members Introduce Bill to Help Small Businesses Compete for Federal Contracts

Statement

Today, Congressman Pete Stauber (MN-08) introduced the Small Business Payment for Performance Act along with Congressman Marc Veasey (TX-33), Congressman Scott Peters (CA-52), and Congressman Brian Fitzpatrick (PA-01). This bipartisan bill will require fair and ethical treatment of small construction contractors by federal agencies during the procurement process.

"Small businesses are the economic engines of our economy, and it's important that the federal government does not place undue burdens on them while fulfilling government contracts," said Congressman Pete Stauber. "The Small Business Payment for Performance Act will hold the federal government accountable for any changes in contracts won by small businesses to make sure small contractors don't have any unexpected financial burdens while completing contracts. This will result in more small businesses competing for federal contracts, and more economic prosperity for our communities."

"Small businesses are the backbone of our economy and play a critical role in a competitive federal contracting marketplace," said Representative Marc Veasey. "That is why I am proud to introduce the bipartisan Small Business Payment for Performance Act with a group of my colleagues. This legislation will ensure small businesses have adequate and prompt compensation for additional work for a federal agency. Additionally, it helps small businesses by shifting the financial burden away from hardworking small business contractors to ensure they can do everything from paying their workers to competing in a competitive ecosystem."

"Bidding for and maintaining federal contracts should not be an uphill battle for the small businesses in our communities," said Rep. Scott Peters. "This bill provides small construction contractors certainty, financial protection, and ensures a level playing field once all parties agree to a contract. I appreciate my colleagues' collaboration on this bill to account for any unexpected changes that would otherwise impose additional costs on small businesses."

"I am proud to partner with my colleagues on this crucial legislation," said Rep. Brian Fitzpatrick. "The Small Business Payment Performance Act will protect our hometown contractors from unnecessary costs and logistical problems incurred by the federal government in the federal contracting process. Small business contractors are vital to our local communities and our national economy. In the midst of inflationary pressures, they require our support. Our bipartisan bill will give these businesses a fairer chance at winning contracts and more capacity to fulfill contracts in a timely and effective manner."

A variety of nationwide groups endorsed the Small Business Payment for Performance Act, many of which provided statements of strong support.

"The American Subcontractors Association (ASA) Government Relations Committee Co-Chairs Gloria Hale (CEO, President and Co-Founder Hale Glass) and Courtney Little (President and General Counsel ACE Glass) applaud Rep. Stauber, Rep. Veasey, Rep. Peters, and Rep. Fitzpatrick for championing this important legislation for construction subcontractors, who are frustrated daily by the slow approval of and lack of payment for change orders, which are ubiquitous on construction projects. We wholeheartedly support this legislation as it would require federal agencies to make timely change order payments on pending construction projects. Thank you, Rep. Stauber, Rep. Veasey, Rep. Peters, and Rep. Fitzpatrick, for your leadership on this legislation and ASA is committed to assisting you with advancing it in the 117th Congress." - The American Subcontractors Association

"The Associated General Contractors of America (AGC) applauds Rep. Pete Stauber (R-MN), Scott Peters (D-CA), Brian Fitzpatrick (R-PA) and Rep. Marc Veasey (D-TX) for introducing bipartisan legislation--entitled the Small Business Payment for Performance Act--that will help small businesses who provide critical services for the federal government. This bill will help ensure small business construction contractors receive timely payment for change orders. Construction firms of all sizes, but especially small businesses, have had to weather the effects of the pandemic and soaring construction materials costs. This commonsense and bipartisan bill will help ensure that our nation's small business construction contractors do not go broke waiting to be paid for work the federal government ordered them to perform." - Jimmy Christianson, Vice President of Government Relations, Associated General Contractors of America

"The National Association of Surety Bond Producers (NASBP) commends Construction Procurement Caucus (CPC) Co-Chairs, Pete Stauber (R-MN) and Scott Peters (D-CA) as well as Representatives Marc Veasey (D-TX) and Brian Fitzpatrick (R-PA) for the introduction of the Small Business Payment for Performance Act of 2022. This critical legislation lessens the considerable financing burden placed on small construction businesses when federal project owners make unilateral changes to construction contracts. By requiring federal project owners to make interim partial payments on owner-directed change orders, small construction businesses receive necessary and timely cash flow for performance. As the construction industry continues to face uncertain and variable market conditions, including supply disruptions and increasing materials prices, all construction businesses, but particularly small construction businesses, need federal payment practices that are not unfairly burdensome. Passage of this legislation will ensure that small construction businesses performing on federal contracts have confidence that equitable payment practices exist for owner-directed change orders. Thank you CPC Co-Chairs Stauber and Peters and Rep. Veasey and Rep. Fitzpatrick for recognizing this significant issue and introducing this important procurement reform." - National Association of Surety Bond Producers

"I would like to thank Congressman Pete Stauber, Congressman Marc Veasey, Congressman Scott Peters, and Congressman Brian Fitzpatrick for introducing the Small Business Payment for Performance Act. This legislation will help ensure NECA's subcontractors receive an equitable adjustment for any change order the federal government may request. As the country continues to experience inflation Congress should ensure small businesses remain economically and financially sound. We ask the Small Business Committee and House Leadership to move this critical legislation as soon as possible." - Marco Giamberardino, Vice President of Government and Public Affairs, National Electrical Contractors Association

"The Sheet Metal and Air Conditioning Contractors National Association (SMACNA) strongly agrees with the legislative language and the intent of Rep. Stauber (R-MN-8) in introducing this vitally important legislation. This long overdue proposal would allow contractors to submit a request for fair adjustment (REA) or project contract fee adjustment to an agency that had approved a performed change order to a project's original design or scope. The Small Business Payment for Performance Act would ensure small business federal contractors get paid sooner for completed and approved change orders as directed by agency officials. Based upon our extensive public market contracting experience with change orders we strongly support The Small Business Payment for Performance Act and know it will help all businesses contracting with the federal government." - Stan Kolbe, Executive Director of Government and Political Affairs, Sheet Metal and Air Conditioning Contractors National Association

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