Should the Federal Agencies’ Acquisition Processes Seek to Increase the Participation of Small Businesses in Gov’t Contracting & Save Taxpayer Money? (S. 583)

What is S. 583?

(Updated March 20, 2022)

This bill was enacted on February 22, 2022

This bill — known as the PRICE Act — would require the Management Directorate of the Dept. of Homeland Security (DHS) to publish an annual report on a DHS website on projects that have used innovative procurement techniques within DHS to accomplish specified goals. Such goals include improving or encouraging better competition; reducing time to award; achieving cost savings; achieving better mission outcomes; or meeting the goals for contracts awarded to small businesses. 

The Management Directorate would be required to develop and disseminate guidance and offer training for specified personnel concerning when and how to use such techniques, and share best practices across DHS and make available to other federal agencies information to improve procurement methods and training. The Office for Federal Procurement Policy would be required to convene a Chief Acquisition Officers Council to examine best practices for acquisition innovation in contracting in the federal government.

This bill’s full title is the Promoting Rigorous and Innovative Cost Efficiencies for Federal Procurement and Acquisitions (PRICE) Act of 2021.

Argument in favor

This bipartisan bill would improve the federal procurement and contracting processes by expanding opportunities for small businesses, promoting innovation, and saving taxpayer money.

Argument opposed

Federal acquisition and procurement processes already do enough to provide opportunities for small businesses to compete for contracts, and there’s no need to expand those opportunities or find ways to save taxpayer money.

Impact

Federal agencies; and contractors, particularly small businesses.

Cost of S. 583

The CBO estimates that enacting this bill wouldn’t significantly affect spending levels and that changes in direct spending caused by changes to agencies’ policies and activities would be negligible.

Additional Info

In-Depth: Sen. Gary Peters (D-MI) introduced this bill to encourage innovation, promote cost savings for taxpayers, and expand opportunities for small businesses in federal government contracting. He offered the following statement after the bill passed the Senate:

“Small businesses in Michigan and across the country should not have to face hurdles when trying to obtain federal contracts. These businesses, which are the backbone of our economy, should never be left behind in this process. This commonsense legislation will give small business owners a fair shot to win federal contracts and grow their businesses. Now that it has passed the Senate, I will work with my colleagues in the House to pass it into law as soon as possible.”

Lead Republican cosponsor Sen. Joni Ernst (R-IA) added:

“Small businesses are the backbone of Iowa’s economy, and we need to make sure they get their fair shot in the federal contracting process. This bipartisan bill, which I was proud to help pass in the Senate today, will help our business owners across the state have the opportunity to compete and succeed.”

This legislation passed the Senate with unanimous consent and the support of three cosponsors, including Ernst and Sens. Tom Carper (D-DE) and Susan Collins (R-ME).

Media:

• Sponsoring Sen. Gary Peters (D-MI) Press Release

• CBO Cost Estimate