HR4615-119

1. Short title This Act may be cited as the Small Business Payment for Performance Act of 2025.

2. Equitable adjustments to construction contracts Section 15 of the Small Business Act (15 U.S.C. 644) is amended— by redesignating subsections (x) and (y) as subsections (y) and (z), respectively; and by inserting after subsection (w) the following new subsection: A small business concern that was awarded a construction contract by an agency may submit a request for an equitable adjustment to the contracting officer of such agency if the contracting officer directs a change in the terms of the contract performance without the agreement of the small business concern. Such request shall— be timely made pursuant to the terms of the contract; and specify the estimated amount required to cover additional costs resulting from such change in the terms. Upon receipt of a request for equitable adjustment from a small business concern under paragraph (1), the agency shall provide to such concern an interim partial payment in an amount equal to not less than 50 percent of the estimated amount under paragraph (1)(B). Any interim partial payment made under this section may not be deemed to be an action to definitize the request for an equitable adjustment. A small business concern that receives an equitable adjustment under this subsection shall pay to a first tier subcontractor of such concern the portion of each interim partial payment received that is attributable to the increased costs of performance incurred by such subcontractor due to the change in the terms of the contract performance described in paragraph (1). A first tier subcontractor that receives a portion of an interim partial payment under this section shall pay to a subcontractor (at any tier) the appropriate portion of such payment. The Administrator of the Small Business Administration shall implement the requirements of this section not later than the earlier of the following dates: The first day of the first full fiscal year beginning after the date of the enactment of this Act. October 1, 2027. (x)Interim partial payments for equitable adjustments to construction contracts (1)Request for an equitable adjustmentA small business concern that was awarded a construction contract by an agency may submit a request for an equitable adjustment to the contracting officer of such agency if the contracting officer directs a change in the terms of the contract performance without the agreement of the small business concern. Such request shall— (A)be timely made pursuant to the terms of the contract; and (B)specify the estimated amount required to cover additional costs resulting from such change in the terms. (2)AmountUpon receipt of a request for equitable adjustment from a small business concern under paragraph (1), the agency shall provide to such concern an interim partial payment in an amount equal to not less than 50 percent of the estimated amount under paragraph (1)(B). (3)LimitationAny interim partial payment made under this section may not be deemed to be an action to definitize the request for an equitable adjustment. (4)Flow-down of interim partial payment amountsA small business concern that receives an equitable adjustment under this subsection shall pay to a first tier subcontractor of such concern the portion of each interim partial payment received that is attributable to the increased costs of performance incurred by such subcontractor due to the change in the terms of the contract performance described in paragraph (1). A first tier subcontractor that receives a portion of an interim partial payment under this section shall pay to a subcontractor (at any tier) the appropriate portion of such payment..