Title: To amend the Small Business Act to require equitable adjustments to certain construction contracts, and for other purposes.
Policy area: Commerce

Summary:
This bill allows a small business performing a construction contract awarded by a federal agency to request an equitable adjustment if the agency's contracting officer directs a change in the work that is within the general scope of the contract without the agreement of the small business.
The agency must provide the small business with an interim partial payment to cover additional costs resulting from such a change, and the small business must pay a first tier subcontractor or supplier the portion of the partial payment that is attributable to additional costs incurred due to the change.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7320 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7320

  To amend the Small Business Act to require equitable adjustments to 
        certain construction contracts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 2020

Mr. Stauber (for himself and Mr. Golden) introduced the following bill; 
         which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
  To amend the Small Business Act to require equitable adjustments to 
        certain construction contracts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EQUITABLE ADJUSTMENTS TO CERTAIN CONSTRUCTION CONTRACTS.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended by inserting after section 15 the following new section:

``SEC. 15A. EQUITABLE ADJUSTMENTS TO CONSTRUCTION CONTRACTS.

    ``(a) Request for an Equitable Adjustment.--A small business 
concern performing a construction contract that was awarded by an 
agency may submit a request for an equitable adjustment to the 
contracting officer of such agency if the contracting officer directs a 
change in the work within the general scope of the contract without the 
agreement of the small business concern. Such request shall--
            ``(1) be timely made pursuant to the terms of the contract; 
        and
            ``(2) comply with Federal regulations regarding equitable 
        adjustments, including specifying additional costs resulting 
        from such change in the work within the general scope of the 
        contract.
    ``(b) Amount.--Upon receipt of a request for equitable adjustment 
under subsection (a), the agency shall provide to the small business 
concern an interim partial payment in an amount that is at least 50 
percent of the costs identified in the request for equitable adjustment 
under subsection (a)(2).
    ``(c) Limitation.--Any interim partial payment made under this 
section shall not be deemed to be an action to definitize the request 
for an equitable adjustment.
    ``(d) Flow-Down of Interim Partial Payment Amounts.--A small 
business concern that requests an equitable adjustment under this 
section shall pay to a first tier subcontractor or supplier the portion 
of the interim partial payment received that is attributable to the 
increased costs of performance incurred by the first tier subcontractor 
or supplier due to the change in the work within the general scope of 
the contract. A subcontractor or supplier at any tier that receives a 
portion of an interim partial payment under this section shall pay its 
subcontractor or supplier the appropriate portion of such payment.''.
    (b) Implementation.--The Administrator of the Small Business 
Administration shall implement the requirements of this section not 
later than the first day of the first full fiscal year beginning after 
the date of the enactment of this Act.
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