PolicyBrief
H.R. 789
119th CongressMar 5th 2025
Transparency and Predictability in Small Business Opportunities Act
AWAITING HOUSE

The "Transparency and Predictability in Small Business Opportunities Act" increases transparency for small businesses by requiring federal agencies to disclose information about cancelled solicitations and assist affected businesses in finding alternative contracting opportunities, without additional funding.

George Latimer
D

George Latimer

Representative

NY-16

LEGISLATION

New Bill Promises Clearer Rules for Small Businesses When Federal Contracts Get Canceled

The "Transparency and Predictability in Small Business Opportunities Act" aims to shed light on what happens when federal agencies cancel contract solicitations, especially those set aside for small businesses. This bill directly addresses the frustration and wasted resources that small businesses face when a bid they've worked on gets unexpectedly pulled.

Making Cancellations Clear

The core of the bill is about making the cancellation process transparent. Within 180 days of enactment, the Small Business Administration (SBA) must create rules requiring agencies to publicly disclose why a solicitation was canceled. This includes:

  • A clear justification for the cancellation (SEC. 2).
  • Whether the agency plans to reissue the solicitation, and if so, when (SEC. 2).
  • If the agency plans to bundle the requirements into another contract or task order (SEC. 2).

All of this information will be available on the government-wide point of entry website, making it easier for small businesses to track these changes (SEC. 2).

Finding New Opportunities

If an agency cancels a solicitation and doesn't plan to reissue it, the bill introduces a new step. The Director of Small and Disadvantaged Business Utilization for that agency is now required to help any small business that prepared a bid to find similar contracting opportunities (SEC. 3). Think of it like this: if a construction company prepared a bid for a canceled project to build a local park, the Director would help them find other, similar government construction projects needing bids.

Keeping it Cost-Neutral

The bill explicitly states that no additional funds can be used to implement these changes (SEC. 4). This means agencies will need to work within existing budgets to meet these new transparency and assistance requirements.

Real-World Impact

Imagine a small tech firm spending weeks preparing a bid for a government software contract, only to have it canceled without explanation. Under this bill, that firm would get a clear reason for the cancellation and, if the project isn't re-bid, help finding other similar government software contracts. This could save significant time and resources for businesses that might otherwise give up on government contracting altogether.

This bill is all about making things clearer and more predictable for small businesses navigating the often-complex world of federal contracting. By requiring transparency around cancellations and offering assistance to find alternative opportunities, it aims to level the playing field and make it easier for small businesses to compete.