Small Business Payment for Performance Act of 2023

Small Business Payment for Performance Act of 2023

This bill allows a small business that is awarded a construction contract by a federal agency to request an equitable adjustment if the agency's contracting officer directs a change in the contract's performance without the agreement of the small business.

The agency must provide the small business with an interim partial payment to cover additional costs resulting from such a change, and the small business must pay a first tier subcontractor or supplier the portion of the partial payment that is attributable to additional costs incurred due to the change.

Bill 118 hr 2726, also known as the Small Business Payment for Performance Act of 2023, aims to provide small businesses with the opportunity to receive payment based on their performance in fulfilling government contracts. The bill seeks to incentivize small businesses to deliver high-quality products and services by tying payment to their performance metrics.

Under this legislation, small businesses that successfully meet or exceed the performance standards outlined in their government contracts would be eligible to receive additional compensation. This would not only reward small businesses for their hard work and dedication but also encourage them to strive for excellence in their work.

The Small Business Payment for Performance Act of 2023 is designed to level the playing field for small businesses competing for government contracts and ensure that they are fairly compensated for their efforts. By linking payment to performance, the bill aims to promote accountability, efficiency, and quality in government contracting. Overall, this legislation seeks to support and empower small businesses by providing them with the opportunity to earn additional compensation based on their performance. It is a step towards fostering a more competitive and fair government contracting environment that benefits both small businesses and the government.