S.991 - To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance. (119th Congress)
Summary
S.991 proposes to amend the Small Business Act by eliminating the requirement that construction subcontracts be awarded within the county or state where the work is performed. This change aims to broaden the pool of eligible subcontractors for small businesses.
The bill, introduced in the Senate, seeks to repeal paragraph (11) of section 8(a) of the Small Business Act (15 U.S.C. 637(a)). This would remove a geographical restriction on subcontracting.
The intended effect is to provide small businesses with greater flexibility in selecting subcontractors, potentially leading to cost savings and increased efficiency.
Expected Effects
The immediate effect of this bill, if enacted, would be to remove the geographic restriction on awarding construction subcontracts under the Small Business Act.
This could lead to small businesses choosing subcontractors from outside their immediate area. This may foster competition and potentially lower costs.
Longer term, the change could impact local economies if businesses choose to contract outside their immediate region.
Potential Benefits
- Increased Flexibility for Small Businesses: Small businesses can choose from a wider pool of subcontractors, potentially finding better expertise or lower prices.
- Potential Cost Savings: Increased competition among subcontractors could drive down costs for small businesses.
- Improved Efficiency: Businesses can select subcontractors based on qualifications rather than location, potentially leading to more efficient project completion.
- Reduced Administrative Burden: Removing the geographic restriction simplifies the subcontracting process.
- Stimulation of Competition: Encourages subcontractors to compete on a broader scale, potentially improving quality and innovation.
Most Benefited Areas:
Potential Disadvantages
- Potential Negative Impact on Local Economies: Subcontracting work may leave the local area, reducing economic activity within the county or state where the primary contract is performed.
- Reduced Opportunities for Local Subcontractors: Local subcontractors may face increased competition from larger, out-of-state firms.
- Increased Transportation Costs: Using subcontractors from outside the area may increase transportation costs for materials and personnel.
- Difficulty in Oversight and Communication: Managing subcontractors located further away can pose challenges in terms of oversight and communication.
- Job losses: Local subcontractors may be forced to reduce their workforce if they are unable to compete with larger, out-of-state firms.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the spirit of promoting economic activity and does not directly infringe upon any specific constitutional provision. Congress has the power to regulate commerce through the Commerce Clause (Article I, Section 8), and this bill can be seen as a regulation related to small business activities.
However, there are no direct constitutional issues raised by this bill. It primarily addresses statutory requirements within the Small Business Act.
It does not appear to violate any individual rights or freedoms protected by the Constitution or its amendments.
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).