S. 991: To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance.

This bill aims to modify the Small Business Act by removing certain requirements that dictate how construction subcontracts must be awarded within the specific county or State where the construction project takes place. The key points of the bill include:

Changes to Subcontracting Requirements

The bill seeks to repeal an existing provision in the Small Business Act that mandates that construction subcontracts be awarded based on location criteria. This means that, under the current law, when a primary contractor is selected for a construction project, they are often required to award subcontracts to businesses located in the same county or State as the project is being performed.

Implications of the Changes

• More Flexibility for Contractors: By removing these location-based requirements, contractors may have greater flexibility in choosing subcontractors, potentially allowing them to consider a broader pool of candidates.
• Impact on Local Businesses: With fewer restrictions on where subcontractors can operate, local businesses that rely on such contracts may face increased competition from firms located outside their area.
• Efficiency in Project Management: Contractors might find it easier to select subcontractors based on qualifications and cost-effectiveness rather than geographical restrictions, potentially leading to more efficient project execution.

Administration and Oversight

While the bill proposes these changes, it does not eliminate all regulations regarding small business subcontracting. Contractors must still adhere to other guidelines established within the Small Business Act, including those aimed at supporting small and disadvantaged businesses in the contracting process.

Conclusion of Summary

The overall purpose of the bill is to make the subcontracting process for construction projects more streamlined by eliminating specific geographical constraints, thus potentially impacting how projects are managed and executed within various jurisdictions.

Relevant Companies

• FLR - Fluor Corporation: A large construction and engineering firm that may benefit from an increase in scope for subcontractor selection across states.
• VMC - Vulcan Materials Company: A supplier of construction materials that could see changes in demand based on new subcontractor procurement practices.
• ACM - AECOM: This infrastructure firm might experience shifts in project execution strategies leading to variations in subcontractor usage.