Reps. Curbelo and Clarke Introduce SPOC Act

Statement

Yesterday, Rep. Carlos Curbelo (FL-26) and Yvette Clarke (NY-09) introduced H.R. 4284, the Service Provider Opportunity Clarification (SPOC) Act.

Earlier this year, Rep. Curbelo introduced H.R. 1386, the Small Entrepreneur Subcontracting Opportunities (SESO) Act to hold agency officials accountable for small business subcontracting during their annual performance evaluations. The legislation was included in the National Defense Authorization Act that was signed into law on November 25th.

However, large contractors must also be held accountable for meeting subcontracting goals. While the vast majority of contractors honor these goals, some do not. Currently, the Small Business Act (SBA) holds bad actors accountable by imposing liquidated damages if prime contractors fail to make a good faith effort to meet the goals. However, SBA regulations only offer examples of what they are supposed to do, not what would constitute a violation. Consequently, the last time the law was enforced was 1982. Because of this ambiguity, bad actors are able to continue receiving Federal contracts.

The Service Provider Opportunity Clarification (SPOC) Act would require the SBA to issue rules explaining what "a failure to act in good faith" means, ensuring transparency and accountability in the subcontracting process.

"Subcontracting is an important entry point for new federal contractors and I am committed to ensure small firms have opportunities to fill federal orders. It is vital that we have a healthy industrial base at all levels. I want to thank Congresswoman Yvette Clarke on her steadfast leadership promoting small businesses participation in the procurement process and cosponsoring this bi-partisan effort. I also thank Chairman Steve Chabot for his leadership, for being an original cosponsor of this bill, and for being a strong advocate for our nation's emerging entrepreneurs," Curbelo said.

Source