H.R. 7076House119th Congress (2025-2027)In Committee

To require the Secretary of Defense to report on certain contracts and awards to small business concerns, and for other purposes.

AI-Generated Summary

Updated February 3, 2026 at 11:11 AM UTC

The bill directs the Department of Defense to examine how it handles contracts and awards that are at or below the simplified acquisition threshold, focusing on whether small‑business set‑aside requirements are being fully applied. Within 180 days, the Secretary of Defense must report the findings, including data on contract values, the share awarded to small businesses, reasons for any non‑set‑aside decisions, and any trends of non‑compliance. The report will also suggest changes to improve small‑business participation. This effort targets the DoD’s procurement processes and aims to benefit small business concerns that seek defense contracts.

Key Provisions

The Secretary of Defense, via the Office of Small Business Programs, must conduct a study of all defense contracts at or below the simplified acquisition threshold to see if small‑business set‑aside rules are being fully applied.
Within 180 days of the law’s enactment, the Secretary must submit a report to the Armed Services and Small Business committees in both chambers.
The report must detail the total dollar amount and percentage of low‑value contracts awarded over the past five years, how much went to small businesses, and describe contracts that were not awarded to small businesses.
It must also explain why some low‑value contracts were not set aside for small businesses, identify any patterns of non‑compliance, and recommend changes to laws, regulations, policies, or guidance to improve small‑business participation.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Armed Services.

Armed Services Committee

January 14, 2026

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HouseIntro Referral

Introduced in House

January 14, 2026

HouseIntro Referral

Referred to the House Committee on Armed Services.

Armed Services Committee

January 14, 2026

Bill Text

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Introduced in HouseIssued January 14, 2026

119th CONGRESS

2d Session

H. R. 7076

IN THE HOUSE OF REPRESENTATIVES

January 14, 2026

Ms. Scholten introduced the following bill; which was referred to the Committee on Armed Services

A BILL

To require the Secretary of Defense to report on certain contracts and awards to small business concerns, and for other purposes.

Study on certain contracts and awards to small business concerns

(a)

Study required

The Secretary of Defense, acting through the Office of Small Business Programs, shall carry out a study to review contracts awarded with a value at or below the simplified acquisition threshold (as defined in section 3015 of title 10, United States Code) to determine if the Department of Defense is ensuring full consideration and application of requirements relating to small business concerns (as defined in section 3 of the Small Business Act (15 U.S.C. 632)).

(b)

Report

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the House of Representatives and the Senate, the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate a report on the results of the study required by this section. Such report shall include—

(1)

the total dollar amount of contracts awarded with a value at or below the simplified acquisition threshold during the five-year period preceding the date of the report, including the percentage of such contracts and the aggregate dollar amount of such contracts awarded to small business concerns;

(2)

an overview of the types of contracts with a value at or below the simplified acquisition threshold, and description of the products or services, that were not awarded to small business concerns;

(3)

an overview of the reasons why a contract with a value at or below the simplified acquisition threshold may not be set aside for small business concerns;

(4)

any trends, themes, or patterns of contracts with a value at or below the simplified acquisition threshold that were awarded to entities that are not small business concerns when such a contract should have been subject to a requirement to be set aside for small business concerns; and

(5)

recommendations for changes to statute, regulation, policy, or guidance that would ensure full consideration and application of requirement to set aside contracts for small business concerns.