Federal agencies must now publicly track new small business contracting
H.R. 818 — SPUR Act · Filed by Pete Stauber (R-MN) · 5 cosponsors · Introduced Jan 28, 2025 · Passed chamber
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What it does
This bill amends the Small Business Act to require federal agencies' procurement scorecards to track how many new small businesses (those receiving their first federal prime contract) are awarded contracts each year, broken down by business type (veteran-owned, HUBZone, minority-owned, women-owned) and industry code. It also defines 'new small business entrant' and 'scorecard' for clarity. The bill creates no new spending.
Why we flagged it
The bill's operative mechanism is a reporting requirement—it mandates that federal agencies track and disclose new small business entrant contract awards in their public scorecards. This is a transparency and accountability tool, not a spending or regulatory change.
What the text implies
- Scorecard visibility may create competitive pressure on federal agencies to increase new-entrant contracting, potentially shifting procurement patterns without explicit mandate.
- Disaggregation by industry code and business type (veteran, HUBZone, minority, women-owned) may reveal disparities in federal support across sectors and demographics, prompting policy debate.
The full analysis lists 3 implications of this text.
Who it affects
The bill increases transparency and accountability in federal procurement by requiring agencies to publicly report how many new small businesses they award contracts to, enabling citizens and advocates to monitor whether federal spending actually supports new market entrants and underrepresented groups. There is no cost to citizens; the reporting requirement is administrative and creates no new spending.