H.R. 5178 would change several rules that federal agencies must follow in reporting their progress toward meeting goals for procurement contracting with small businesses in Puerto Rico. The value of such contracts awarded to a Puerto Rican small business would be doubled for the purposes of determining compliance with federal agencies’ goals over the next five years, and those agencies would be required to report on both the number and the dollar amount of the contracts. H.R. 5178 also would expand a current Small Business Administration (SBA) program that transfers technology or surplus personal property to certain small businesses participating in the SBA’s 8(a) Business Development program and would allow transfers to Puerto Rican small businesses that are not participants in that program.
Using information from the SBA on the costs of similar activities, CBO estimates that implementing H.R. 5178 would cost less than $500,000 over the 2019-2023 period for federal agencies to include additional information on contracts awarded to Puerto Rican small businesses in their current reports and for the SBA to update its program’s rules. Any spending would be subject to the availability of appropriated funds.
Under the bill, the SBA may transfer surplus equipment that it otherwise could sell under current law. The proceeds of those sales (which are recorded in the budget as offsetting receipts and treated as reductions in direct spending) are deposited into the federal buildings fund and then spent without further appropriation. Because enacting the bill would affect direct spending, pay-as-you-go procedures apply. However, CBO estimates that any net change in direct spending would be negligible. Enacting the bill would not affect revenues.
CBO estimates that enacting H.R. 5178 would not significantly increase direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2029.
H.R. 5178 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.