Bill > HR4615

This bill amends the Small Business Act to provide financial protection for small business contractors when government agencies change the terms of a construction contract. Specifically, if a contracting officer directs changes to a contract without the small business's agreement, the contractor can submit a request for an equitable adjustment, explaining the estimated additional costs. Upon receiving such a request, the agency must provide an interim partial payment of at least 50% of the estimated additional costs. This payment is not considered a final resolution of the adjustment request. The bill also requires that if a small business receives this interim payment, they must pass along proportional payments to their first-tier subcontractors who have also incurred increased costs due to the contract changes. The Small Business Administration is required to implement these new provisions by October 1, 2027, or the first full fiscal year after the bill's enactment. The goal of the legislation is to provide financial support and reduce the economic burden on small businesses when unexpected contract modifications occur, ensuring they can continue to perform work without severe financial strain.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4615/all-info