Bill Overview
Title: Truth in Small Business Contracting Credit Act of 2022
Description: This bill permits a federal agency to credit a single prime contract no more than two times for the purpose of meeting the annual governmentwide goals for procurement contracts awarded to small businesses.
Sponsors: Rep. Meuser, Daniel [R-PA-9]
Target Audience
Population: Small business contractors
Estimated Size: 1000000
- The bill pertains to federal agency procurement practices, specifically concerning prime contracts and small businesses.
- Small businesses that pursue contracts with the federal government are directly impacted.
- Federal agencies involved in awarding contracts will also be affected as they adjust their procedures to comply with the new crediting limitations.
- Small businesses are a significant part of the global economy, although not all small businesses engage in federal contracting.
Reasoning
- The small businesses engaging in federal contracts are directly impacted as the bill changes how credits are applied to these contracts.
- Agencies themselves need to adjust how they manage contracts, but their impact on actual personnel well-being might be minimal, more procedural.
- The budget constraint of $5,000,000 in year 1 limits the scope to only affecting small business contracts within this financial limit.
- Due to the specificity of the policy, main impacts will be felt by small business owners or those directly involved in business development and federal contracting.
- Small businesses that were previously able to benefit from multiple credits on a single contract may feel restricted, possible reducing their contract engagement if reliance on multiple credits existed.
- The overall American economic landscape, which includes millions of small businesses, is vast, so direct impacts will only be felt by the subset involved in federal contracting.
Simulated Interviews
Small Business Owner (Austin, TX)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I'm worried about the new restrictions on contract crediting, as it may limit our ability to meet procurement goals.
- We often team up for large contracts, and multiple credits were beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 5 | 7 |
Federal Procurement Officer (Washington, D.C.)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- The policy adds an extra layer of complexity to my job, but I understand the need for clearer crediting.
- We will need more guidance on how this impacts our procurement statistics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
Small Business Consultant (San Diego, CA)
Age: 41 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Many of my clients rely on understanding federal policies, and this change means more work for both me and them.
- It could discourage smaller entities from competing due to complexity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 6 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 5 | 8 |
| Year 20 | 5 | 8 |
IT Specialist (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- This policy doesn't affect me as my work is not connected to government contracts.
- It seems targeted and niche.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Small Business Owner (Atlanta, GA)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- If the policy reduces competition, it could actually benefit us by leveling the playing field.
- On the downside, less credits could mean fewer opportunities overall.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Retired (Denver, CO)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- Though I'm retired, I see how this could have made things a bit challenging back in my day.
- It's important they keep it fair for new entrants.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Financial Analyst (Boston, MA)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- It may affect market dynamics slightly if fewer small businesses engage in federal contracts.
- As an analyst, there's always interest in changes to federal procurement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Small Business Owner (Detroit, MI)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- We haven't entered the federal space yet due to complexity.
- Hearing about policies like these makes it seem even more cumbersome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
Lawyer (New York, NY)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- This change will definitely mean more work, clarifying how credits are going to be used by businesses.
- Complexity means more business for lawyers, but does it always benefit the client?
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Government Employee (Raleigh, NC)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- This kind of policy might sound beneficial in ensuring fair process. However, the practical benefits need to be properly communicated to be effective.
- Most small businesses need clear benefits to justify federal engagement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $5000000 (Low: $3000000, High: $7000000)
Year 5: $5000000 (Low: $3000000, High: $7000000)
Year 10: $5000000 (Low: $3000000, High: $7000000)
Year 100: $5000000 (Low: $3000000, High: $7000000)
Key Considerations
- The policy's major effect is on the administrative processes surrounding the government’s small business contracting targets.
- Federal agencies will require adjustments to reporting systems to comply with the policy.
- Potential benefits include improved accuracy in the reporting of small business contracting data.