Bill Summary
The proposed legislation mandates that the Secretary of Defense conduct a study focused on contracts awarded to small business concerns, particularly those valued at or below the simplified acquisition threshold. This study aims to assess whether the Department of Defense is adequately considering small businesses in its contracting processes. The Secretary is required to submit a report within 180 days of the bill's enactment, detailing key findings such as the total dollar amount and percentage of contracts awarded to small businesses over the past five years, the types of contracts not awarded to small businesses, reasons for not setting contracts aside for small businesses, and trends in contract awards. Additionally, the report should include recommendations for improving policies and regulations to enhance the participation of small businesses in defense contracts.
Possible Impacts
Here are three examples of how the legislation outlined in the bill could affect people:
1. **Increased Opportunities for Small Business Owners**: By requiring the Secretary of Defense to conduct a study on contracts awarded to small business concerns, the legislation could lead to increased opportunities for small business owners. If the study reveals that small businesses are not receiving their fair share of contracts, recommendations may be made to create more set-asides for small businesses. This could enable more entrepreneurs to bid for government contracts, helping to bolster their businesses and create jobs.
2. **Transparency and Accountability in Government Contracting**: The requirement for the Secretary of Defense to report on the allocation of contracts provides a level of transparency that can help hold the government accountable for its procurement practices. This transparency can empower small business advocates and industry groups to better understand how contracts are awarded and to advocate for changes that could benefit small businesses, thus impacting the overall business landscape.
3. **Potential Changes in Policy or Regulation**: The findings from the study could lead to recommendations for changes in statutes, regulations, or policies regarding government contracting. If the report identifies systemic issues preventing small businesses from accessing contracts, it could result in new legislation or policy reforms that prioritize small business participation in government procurement. This would not only impact small business owners but could also lead to shifts in the broader economy, fostering a more competitive environment and promoting innovation.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7076 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7076
To require the Secretary of Defense to report on certain contracts and
awards to small business concerns, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 14, 2026
Ms. Scholten introduced the following bill; which was referred to the
Committee on Armed Services
_______________________________________________________________________
A BILL
To require the Secretary of Defense to report on certain contracts and
awards to small business concerns, 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. STUDY ON CERTAIN CONTRACTS AND AWARDS TO SMALL BUSINESS
CONCERNS.
(a) Study Required.--The Secretary of Defense, acting through the
Office of Small Business Programs, shall carry out a study to review
contracts awarded with a value at or below the simplified acquisition
threshold (as defined in section 3015 of title 10, United States Code)
to determine if the Department of Defense is ensuring full
consideration and application of requirements relating to small
business concerns (as defined in section 3 of the Small Business Act
(15 U.S.C. 632)).
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committees on Armed Services of the House of Representatives and the
Senate, the Committee on Small Business of the House of
Representatives, and the Committee on Small Business and
Entrepreneurship of the Senate a report on the results of the study
required by this section. Such report shall include--
(1) the total dollar amount of contracts awarded with a
value at or below the simplified acquisition threshold during
the five-year period preceding the date of the report,
including the percentage of such contracts and the aggregate
dollar amount of such contracts awarded to small business
concerns;
(2) an overview of the types of contracts with a value at
or below the simplified acquisition threshold, and description
of the products or services, that were not awarded to small
business concerns;
(3) an overview of the reasons why a contract with a value
at or below the simplified acquisition threshold may not be set
aside for small business concerns;
(4) any trends, themes, or patterns of contracts with a
value at or below the simplified acquisition threshold that
were awarded to entities that are not small business concerns
when such a contract should have been subject to a requirement
to be set aside for small business concerns; and
(5) recommendations for changes to statute, regulation,
policy, or guidance that would ensure full consideration and
application of requirement to set aside contracts for small
business concerns.
<all>