HR-789-119
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Sponsored by George Latimer (D-NY)
What it does
This bill would require the Small Business Administration (SBA) to issue rules, within 180 days of enactment, mandating that federal agencies publicly disclose why they cancelled a contract solicitation that small businesses were eligible to bid on. Agencies would also be required to share any plans to reissue the solicitation or fold its requirements into another contract. When a cancelled solicitation will not be reissued, the bill would require agencies to refer small businesses that had prepared bids to their Office of Small and Disadvantaged Business Utilization (OSDBU) for help finding similar contracting opportunities. All disclosed information would be published on SAM.gov, the government-wide federal contracting portal. No new funding is authorized to carry out these requirements.
Who benefits
Small businesses that bid on — or were preparing to bid on — federal contracts, particularly those that invest significant time and money in proposals that are then cancelled without explanation. Minority-owned, women-owned, veteran-owned, and other small and disadvantaged businesses that rely heavily on federal contracting as a revenue source. Offices of Small and Disadvantaged Business Utilization, which would gain a clearer referral mandate. Taxpayers and oversight bodies who would gain greater visibility into federal procurement decisions.
Who is hurt
Federal agencies and their contracting officers, who would face new administrative reporting and disclosure obligations with no additional funding to carry them out. Agency procurement staff may bear increased workload. Larger contractors who benefit from opacity in the cancellation process — if small businesses are better informed and redirected, they may compete more effectively for follow-on work. Agencies that cancel solicitations for sensitive operational or security reasons may face pressure to publicly justify decisions they would prefer to keep confidential.
Supporters argue
Supporters argue that small businesses invest thousands of dollars and hundreds of staff hours preparing federal contract bids, and that unexplained cancellations waste those resources and erode trust in the federal procurement system. They contend that transparency about cancellations and referrals to OSDBU offices would help small businesses recover sunk costs by pivoting to similar opportunities, strengthening a sector that employs roughly half of all private-sector workers. The bill imposes no new spending, making it a low-cost accountability measure that aligns with existing SBA infrastructure.
Opponents argue
Opponents argue that mandating public justifications for every cancelled solicitation — with no additional funding — could create unfunded compliance burdens that slow procurement timelines and strain already understaffed contracting offices. They contend that requiring agencies to publicly explain cancellations may compromise operational flexibility, particularly when solicitations are cancelled for sensitive budgetary, strategic, or security reasons. Critics may also argue that routing affected firms through OSDBU offices adds a procedural layer without guaranteeing meaningful assistance, given those offices' historically limited staffing and resources.