The U.S. House of Representatives recently passed a bipartisan bill that would help certain minority-owned small businesses better compete for federal contracts.
The legislation applies to businesses owned by women, service-disabled veterans, and people in designated economically distressed census tracts, counties, or Indian reservations.
The Small Business Contracting Transparency Act of 2023 would improve the oversight, transparency, and efficiency of the Small Business Administration’s (SBA) HUBZone program, Service-Disabled Veteran Owned Small Business program, and Women-Owned Small Business program.
Specifically, it would require the SBA to submit annual reports on the number of small businesses certified to participate in each program; the amount and percentage of federal contracts awarded to qualifying small businesses; and the number of ineligible businesses found to be erroneously awarded contracts.
“Ensuring that women, veterans, and underrepresented communities have fair access to federal contracts is an important step in expanding opportunities for small businesses while making sure the federal government has access to the widest possible selection of quality goods and services,” U.S. Rep. Chrissy Houlahan (D-PA), who co-introduced the bill, said.
Federal agencies are required by law to award 3 percent of federal contract dollars to economically distressed regions through the HUBZone program, 3 percent to small businesses owned by service-disabled veterans, and 5 percent to women-owned small businesses.