Incentivizing Fairness in Subcontracting Act

Floor Speech

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Mr. Speaker, I rise in support of H.R. 6367, the Incentivizing Fairness in Subcontracting Act of 2018.

Mr. Speaker, in fiscal year 2017, the Federal Government purchased goods and services worth over $508 billion through over 22 million contract actions. Yet, not all this money stayed with the original prime contractor and, instead, trickles down to subcontractors.

Subcontracts are growing in importance as an avenue for small businesses to work with the government, so it is important that barriers to entry are reduced. By improving the tools that exist for small businesses to become subcontractors, today's measures will draw in more small businesses that are not regular government contractors.

This is a critical step to expanding the industrial base and including more small firms. Most importantly, it ensures more small contractors have just recourse through the Office of Small and Disadvantaged Business Utilization if payment is not received within 90 days of completion. Timely payment protects small contractors who do not have the overhead margins to continue operating without being paid.

Mr. Speaker, I urge Members to support this legislation, and I reserve the balance of my time.

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Mr. Speaker, I thank the gentleman from Florida (Mr. Lawson) and his cosponsor, Mr. Kelly, for introducing this important legislation. H.R. 6367 protects our small contractors by updating the subcontracting goaling regime through increased flexibility and accountability.

Establishing incentives to count low-tier subcontracting awards and a dispute process for subcontractors to utilize in the event of nonpayment ensures a healthy Federal procurement marketplace.

Today's legislation spreads the economic power of Federal procurement to more companies and the communities they are located.

Mr. Speaker, I urge Members to support this bill, and I yield back the balance of my time.

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