Plain Language in Contracting Act

Summary of HR 787 - Plain Language in Contracting Act

Bill Overview

• Bill Number: HR 787
• Title: Plain Language in Contracting Act
• Introduced: January 28, 2025
• Status: Received in the Senate; read twice and referred to the Committee on Small Business and Entrepreneurship.

Purpose and Intent

The Plain Language in Contracting Act aims to enhance the accessibility and clarity of federal contracting documents for small businesses. The bill seeks to address the significant decline in small business participation in federal contracting due to the complexity of contract language. By mandating that federal agencies use clear and concise language, the bill intends to lower barriers for small businesses, enabling them to better understand and compete for government contracts.

Key Provisions

1. Clear Communication:

   • Federal agencies are required to draft contract solicitations in a manner that is clear, concise, and well-organized.
   • Notices must be understandable to small business concerns, ensuring that the intent is easily discernible.

2. Inclusion of Key Words:

   • Each covered notice must include key words that facilitate easy identification and understanding of the contract opportunities by small businesses.

3. Rulemaking Requirement:

   • The Small Business Administration (SBA) is tasked with issuing rules to implement these requirements within 90 days of the bill's enactment.

4. Definitions:

   • The bill defines "covered notice" as any notice related to small business concerns published by a federal agency on the designated government-wide point of entry.

5. Compliance with Budgetary Constraints:

   • The bill stipulates that no additional funds will be authorized for its implementation, adhering to the CUTGO (Cut-As-You-Go) principle.

Impact

• Target Audience: The primary beneficiaries of this legislation are small businesses that often lack the resources to navigate complex federal contracting processes. By simplifying contract language, the bill aims to empower these businesses to engage more effectively with government opportunities.
• Potential Outcomes: If enacted, the Plain Language in Contracting Act could lead to an increase in the number of small businesses participating in federal contracting, fostering greater competition and innovation within the market.

Legislative Process

• The bill was reported favorably by the Committee on Small Business on March 24, 2025, and passed the House on June 3, 2025, with a voice vote. It is currently under consideration in the Senate.

Conclusion

HR 787 represents a significant step toward making federal contracting more accessible for small businesses. By requiring the use of plain language in contract documents, the legislation aims to reduce barriers and promote greater participation from small enterprises in government contracting opportunities.