Connecticut House Bill HB05246

Connecticut 2016 Regular Session

• Introduced: 2/17/16
• Refer: 2/17/16

Caption

An Act Redefining "small Contractor" For Purposes Of The Set-aside Program For Small Contractors.

Impact

The revision in the definition of "small contractor" is expected to facilitate a greater participation of local businesses in state contracts. By using the federal standards established by the Small Business Administration (SBA), the state acknowledges a wider range of businesses as small contractors, which may enhance their access to resources and opportunities under the set-aside program. This shift could particularly benefit various sectors where small contractors play a critical role, potentially leading to increased economic activity at the local level.

Summary

House Bill 5246 aims to redefine the term "small contractor" within the context of the set-aside program for small contractors, shifting its definition from one based on gross revenues to one that aligns with federal standards established by the North American Industry Classification System (NAICS). This legislative change intends to ensure that small contractors are identified in a manner that reflects contemporary federal standards rather than outdated revenue thresholds. Such a change is significant for local contractors looking to compete for government contracts, as it could expand the pool of eligible businesses within the state.

Contention

Some points of contention may arise around the implications of redefining small contractors. Critics of the bill could raise concerns about the nuances of federal versus state definitions and whether aligning with federal standards truly benefits local economies. There might also be debates regarding the potential for an increase in the number of businesses qualifying for set-aside contracts, which could dilute the available resources or contracts for existing small contractors. Additionally, questions may emerge on how this change might impact the competitiveness of very small firms versus slightly larger ones that could qualify under the new standards.