Expanding Federal Contracts for Disadvantaged Small Businesses and Ensuring Prompt Payment.
This Act aims to boost the participation of disadvantaged small businesses in federal contracting by increasing transparency and actively combating discrimination. It mandates the creation of public databases tracking contract awards and historical discrimination records. Crucially, large prime contractors must now pay their small business subcontractors within 14 days of receiving federal payment, ensuring better cash flow for smaller enterprises.
Key points
Large prime contractors must pay small business subcontractors within 14 calendar days of receiving federal payment, with penalties for non-compliance, including potential ineligibility for future contracts.
Federal agencies are required to establish public databases tracking contracts awarded to disadvantaged small businesses, disaggregated by race and ethnicity.
Major contractors must submit annual reports detailing the racial, gender, and ethnic diversity of their boards, senior leaders, and employees.
The definition of a disadvantaged small business is expanded to include entities owned by Historically Black Colleges and Universities (HBCUs), granting them access to federal contracting programs.
Expired
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