H.R.818 - Small Business Procurement and Utilization Reform Act of 2025; SPUR Act (119th Congress)
Summary
H.R. 818, the Small Business Procurement and Utilization Reform Act of 2025 (SPUR Act), aims to amend the Small Business Act to enhance opportunities for new small businesses in federal contracting. The bill requires the Small Business Administration (SBA) scorecard program to include metrics on new small business entrants awarded prime contracts. This includes specific categories such as veteran-owned, HUBZone, disadvantaged, and women-owned small businesses.
Expected Effects
The SPUR Act will likely increase the visibility and tracking of new small businesses entering the federal contracting arena. By mandating the inclusion of new entrant data in the SBA scorecard, the bill seeks to encourage federal agencies to broaden their engagement with these businesses. This could lead to a more diverse pool of federal contractors and potentially foster innovation.
Potential Benefits
- Increased opportunities for new small businesses: By specifically tracking and reporting on new entrants, the bill encourages agencies to actively seek out and award contracts to businesses that have not previously worked with the federal government.
- Enhanced transparency and accountability: The scorecard requirement provides a clear metric for evaluating agency performance in engaging new small businesses.
- Support for diverse small business owners: The bill specifically highlights veteran-owned, HUBZone, disadvantaged, and women-owned businesses, promoting equity in federal contracting.
- Potential for innovation: New businesses may bring fresh perspectives and innovative solutions to government projects.
- Economic growth: Increased contracting opportunities for small businesses can stimulate economic activity and job creation.
Potential Disadvantages
- Increased administrative burden: Federal agencies may face additional reporting requirements and administrative overhead to track and report on new small business entrants.
- Potential for unintended consequences: Focusing solely on new entrants could inadvertently disadvantage established small businesses.
- Limited impact without additional resources: The bill does not authorize additional funding, which may limit its effectiveness in achieving its goals.
- Risk of "gaming" the system: Agencies might prioritize awarding contracts to technically "new" businesses without ensuring their long-term viability or quality of work.
- Data collection challenges: Accurately identifying and tracking "new" small business entrants may present logistical challenges.
Constitutional Alignment
The SPUR Act appears to align with the spirit of the Constitution, particularly the General Welfare Clause (Preamble). By promoting small businesses, the Act aims to foster economic growth and opportunity, contributing to the overall well-being of the nation. Additionally, the emphasis on supporting disadvantaged groups aligns with the principle of equal opportunity. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).