This bill aims to strengthen oversight and fairness in how large federal contractors use smaller subcontractors on government projects. The legislation requires the Federal Acquisition Regulatory Council to establish new rules within 18 months that mandate prime contractors provide status updates to named subcontractors within 30 days upon request, allow subcontractors to report non-compliance to federal contracting officers, and tie a portion of contractor incentive fees to achieving small business utilization goals of at least 50 percent. The bill also directs the Comptroller General to study how small business usage can be better monitored on major contracts like indefinite delivery contracts and government-wide acquisition contracts, and requires the General Services Administration to develop a plan within one year to modernize the Electronic Subcontracting Reporting System. Additionally, the Office of Management and Budget must issue guidance within 180 days on improving federal outreach to small businesses, particularly those owned by veterans, women, and disadvantaged entrepreneurs, and the Attorney General must study ways to strengthen enforcement mechanisms when prime contractors fail to make good faith efforts to use small business subcontractors.
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