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# Summary of H.R. 9832 — CONTRACTS Act of 2024 The CONTRACTS Act of 2024 is designed to increase federal contracting opportunities for disadvantaged small businesses, particularly those owned by minorities and historically Black colleges and universities. The bill creates new databases to track contract awards, requires federal agencies to conduct outreach and education to disadvantaged business owners, and establishes a federal task force to coordinate efforts across government agencies. The legislation expands access to federal contracting programs by including businesses owned by historically Black colleges and universities in the definition of disadvantaged small businesses eligible for special contracting programs. It also mandates that prime contractors on federal contracts pay their disadvantaged small business subcontractors within 14 days of receiving payment, with interest penalties for late payments. Additionally, the bill requires major federal contractors to submit annual reports on their diversity efforts, including information about board composition and employee demographics broken down by race, gender, ethnicity, and veteran status. The bill establishes a Federal Disadvantaged Small Business Task Force, chaired by the Under Secretary of Commerce for Minority Business Development, that must meet quarterly for ten years to recommend ways to reduce discrimination in federal contracting and increase opportunities for disadvantaged businesses. Federal agencies must also report annually on their progress, and the Small Business Administration is required to evaluate implementation and report to Congress yearly on the effects of these changes. The provisions apply to major federal contracts generally worth $10 million or more and take effect on various dates beginning in 2025.

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