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

Bill: 116-hr-7320
Sponsor: full_name: Rep. Stauber, Pete [R-MN-8]
Introduced: 2020-06-24
Policy area: Commerce
Subjects: Building construction

Public contracts and procurement

Small business
Latest action: action_date: 2020-06-24
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2020-06-24
action_desc: Introduced in House
text: <p>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.</p> <p>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.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7320 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.

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: 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.