Defense Small Business Affiliate Consideration Act of 2023
The implications of HB 6740 on state laws and federal regulations could be significant. By incorporating past performance of affiliates into the consideration for contracts, the bill aims to provide a more comprehensive view of a small business's capabilities and reliability. This could potentially enhance opportunities for small businesses with strong affiliate performances, enabling them to compete more effectively. On the flip side, it may pose challenges for affiliates of smaller firms that do not have a robust performance history, as the bill could disadvantage them in the bidding process.
House Bill 6740, known as the Defense Small Business Affiliate Consideration Act of 2023, aims to amend the Department of Defense's regulations regarding small business contracting. The bill specifically mandates that the Secretary of Defense modify the Defense Federal Acquisition Regulation Supplement to require that affiliates' past performance of small business concerns be considered during the evaluation of bids for Department of Defense contracts. This emphasizes the importance of not just the bidding small business, but its affiliated companies' track record as well, potentially affecting the outcomes for smaller contractors in defense procurement.
Discussion surrounding HB 6740 may involve differing opinions on the suitability of including affiliate performance in the evaluation process. Proponents argue that it creates a fairer and more transparent assessment of small businesses' qualifications, potentially leading to better outcomes in defense contracts. Critics, however, might express concerns that this could disadvantage truly small businesses and limit competition by placing undue weight on affiliates' past results, which may not always be reflective of the bidding business's current capabilities.