The Small Business Procurement and Utilization Reform Act of 2025, or SPUR Act, modifies scorecard requirements to track new small businesses winning federal prime contracts and prohibits additional funding for implementation.
Pete Stauber
Representative
MN-8
The Small Business Procurement and Utilization Reform Act of 2025 (SPUR Act) amends the Small Business Act to modify scorecard requirements. It mandates tracking and comparing new small businesses winning prime contracts, including those owned by service-disabled veterans, HUBZone businesses, socially and economically disadvantaged individuals, and women. The Act defines "new small business entrant" and "scorecard," and states that no additional funds are authorized or appropriated to implement the changes.
| Party | Total Votes | Yes | No | Did Not Vote |
|---|---|---|---|---|
Republican | 217 | 181 | 25 | 11 |
Democrat | 215 | 203 | 0 | 12 |
SPUR Act Aims to Track New Small Business Federal Contractors: No New Funding Provided
The SPUR Act of 2025 tweaks how the government tracks small businesses getting federal contracts. It specifically focuses on new small businesses—those that have never landed a prime contract with the feds before (SEC. 2). The goal is to see how many new players are getting a piece of the pie, broken down by categories like service-disabled veteran-owned, HUBZone, women-owned, and those owned by socially and economically disadvantaged individuals.
Fresh Scorecards, Familiar Challenges
The bill mandates a new "scorecard" system (SEC. 2). Think of it like a report card for each federal agency, grading them on how well they're bringing in these new small business contractors. The Act wants year-to-year comparisons to track progress. This could show, for example, if a construction company owned by a service-disabled veteran in a historically underutilized business zone (HUBZone) is more or less likely to win a contract compared to previous years. If the numbers are consistently low, it might raise a red flag.
Real-World Rollout
So, what does this mean on the ground? Imagine a small tech startup in Austin that's never worked with the government before. Under the SPUR Act, if they win a prime contract, they'll be counted as a "new small business entrant." The agency that awarded the contract gets credit on their scorecard. The idea is to incentivize agencies to seek out and award contracts to fresh faces, not just the usual suspects.
Or picture a family-owned manufacturing business in rural Ohio, certified as a woman-owned small business. This bill means their success in securing a federal contract would be specifically tracked, giving a clearer picture of how these businesses are faring.
The Catch? No New Money
Here's the kicker: the SPUR Act explicitly states that no additional funds will be authorized or appropriated to carry out these changes (SEC. 3). This "CUTGO" compliance means agencies will have to implement the new scorecard system with their existing resources. While this keeps spending in check, it could also mean that agencies, already stretched thin, might struggle to effectively implement the new tracking and reporting requirements. It's like being asked to cook a bigger meal with the same amount of groceries.
The Bigger Picture
This bill fits into the larger framework of the Small Business Act, which aims to help small businesses compete for government contracts. By focusing on new entrants, the SPUR Act is trying to level the playing field and encourage fresh competition. However, without dedicated resources, its effectiveness might be limited. It will be interesting to see if agencies can truly boost opportunities for new small businesses without extra support.