Technical corrections only. The changes between v2 and v3 reflect the bill's legislative status, noting its passage in the House and referral to the Senate. There are no substantive policy changes to the text of the bill itself.
SPUR Act
- Sponsor
- Rep. Stauber, Pete [R-MN-8]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Feb 25, 2025
Bottom line
The SPUR Act aims to increase transparency and accountability in federal contracting by requiring agencies to specifically measure and report their success in bringing truly new small businesses into the federal procurement ecosystem.
What it actually does
This bill, the SPUR Act, amends the Small Business Act to require federal agencies to track and report the number of "new small business entrants" awarded prime contracts. It mandates that agency scorecards, which evaluate their performance in meeting small business contracting goals, include this new metric, broken down by industry code and compared to previous years. The bill also explicitly defines "new small business entrant" as a small business that has not previously been awarded a prime contract by any federal agency.
Proponents argue
Proponents argue that this bill will foster a more dynamic and competitive federal contracting environment by shining a light on agencies' efforts to engage truly new small businesses, rather than repeatedly contracting with established small business vendors. They contend that by tracking "new entrants," the government can better identify barriers for first-time contractors and ensure that federal opportunities are accessible to a broader range of innovative small firms, including those owned by service-disabled veterans, HUBZone businesses, and socially/economically disadvantaged individuals.
Opponents contend
Opponents might argue that while the intent is good, adding more reporting requirements could increase administrative burden on federal agencies without necessarily translating into a significant increase in new small business contracts. They might also suggest that the focus should remain on overall small business utilization goals, and that distinguishing "new" from "existing" small businesses adds an unnecessary layer of complexity that could divert resources from actual contracting efforts.
The bill text is very short and straightforward, making it highly accessible for a reader to understand its provisions quickly.
Section 2(1)(B), amending Section 15(y)(2) of the Small Business Act
Inclusion of New Small Business Entrant Metric in Agency Scorecards
This provision requires federal agencies to add a new metric to their annual small business contracting scorecards. Specifically, they must report the number of "new small business entrants" that receive prime contracts, categorized by industry code (NAICS) and compared to the previous fiscal year. This tracking must also disaggregate data for specific categories like service-disabled veteran-owned, HUBZone, socially and economically disadvantaged, and women-owned small businesses.
Supporters argue
Supporters argue this provision is crucial for identifying and addressing systemic barriers that prevent new small businesses from entering the federal marketplace. By making agencies track this specific metric, it creates a direct incentive to diversify their contractor base and provide opportunities to firms that have not previously secured federal prime contracts, thereby fostering innovation and competition.
Critics contend
Critics might contend that while the goal is laudable, this adds another layer of bureaucratic reporting without necessarily providing the resources or structural changes needed to truly increase new small business participation. They might argue that agencies could focus on meeting this metric rather than on the quality or strategic value of the contracts.
Tradeoffs
The tension lies between the desire for increased transparency and accountability in fostering new small business growth versus the potential for increased administrative burden on agencies and the risk of agencies prioritizing metrics over broader contracting efficiency or strategic goals.
Section 2(3), amending Section 15(y)(6) of the Small Business Act
Definition of "New Small Business Entrant"
This provision establishes a clear and specific definition for "new small business entrant." It defines such an entrant as a small business concern that has been awarded a prime contract by a Federal agency and has not previously been awarded a prime contract by any Federal agency. This ensures that the metric tracked by agencies specifically targets truly first-time federal prime contractors.
This section explicitly states that no additional amounts are authorized to be appropriated to carry out the Act or its amendments. This means the new reporting requirements must be absorbed within existing agency budgets.
Section 3
Why it matters:This is standard legislative practice for bills that are intended to be budget-neutral or to avoid triggering certain budget rules (like PAYGO/CUTGO). It ensures the bill does not create new mandatory spending or require new discretionary appropriations.
Case for: Supporters would argue this demonstrates fiscal responsibility, ensuring that the new transparency and accountability measures for small business contracting do not impose additional costs on taxpayers. It forces agencies to be efficient with existing resources.
Case against: Critics might argue that without dedicated funding, agencies may struggle to implement the new reporting requirements effectively, potentially leading to under-resourcing or diverting funds from other critical small business support programs. This could undermine the bill's intended positive impact.
Estimated impact: Neutral budget impact, as no new appropriations are authorized. Agencies must absorb costs internally.