US Code

Public Law 119-88 (05/04/2026)

10 U.S.C. § 4959

Advancing small business growth

(a)

Contract Clause Required .—

(1)
The Under Secretary of Defense for Acquisition and Sustainment shall require the clause described in paragraph (2) to be included in each covered contract awarded by the Department of Defense.
(2)
The clause described in this paragraph is a clause that—
(A)
requires the contractor to acknowledge that acceptance of the contract may cause the business to exceed the applicable small business size standards (established pursuant to section 3(a) of the Small Business Act) for the industry concerned and that the contractor may no longer qualify as a small business concern for that industry; and
(B)
encourages the contractor to develop capabilities and characteristics typically desired in contractors that are competitive as an other-than-small business in that industry.
(b)

Availability of Assistance .—

Covered small businesses may be provided assistance as part of any procurement technical assistance furnished pursuant to this chapter.
(c)

Definitions .—

In this section:
(1)
The term “covered contract” means a contract—
(A)
awarded to a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act; and
(B)
with an estimated annual value—
(i)
that will exceed the applicable receipt-based small business size standard; or
(ii)
if the contract is in an industry with an employee-based size standard, that will exceed $70,000,000.
(2)
The term “covered small business” means a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act that has entered into a contract with the Department of Defense that includes a contract clause described in subsection (a)(2).

Pub. L. 113–66, div. A, title XVI, § 1611(a)(1)(B)127 Stat. 946 Pub. L. 116–92, div. A, title IX, § 902(63)133 Stat. 1550 Pub. L. 116–283, div. A, title XVIII, § 1872(a)(10)134 Stat. 4289 Pub. L. 117–81, div. A, title XVII, § 1701(b)(24)135 Stat. 2135 (Added , , , § 2419; amended , , ; renumbered § 4959, , , ; , (m)(2)(F), , , 2145.)

Editorial Notes

References in Text

section 632(a) of Title 15Section 3(a) of the Small Business Act, referred to in subsecs. (a)(2)(A) and (c)(1)(A), (2), is classified to , Commerce and Trade.

Codification

Pub. L. 117–81, div. A, title XVII, § 1701(m)(2)(G)135 Stat. 2145 Pub. L. 116–283, § 1872(a)(11)section 2417 of this titlePub. L. 117–81section 1872(a)(11) of Pub. L. 116–283section 4961 of this title, , , amended , which had originally transferred to this section. After amendment by , instead transferred section 2417 to .

Amendments

Pub. L. 116–283, § 1872(a)(10)Pub. L. 117–81, § 1701(b)(24)section 2419 of this title2021—, as amended by , (m)(2)(F), renumbered as this section.

Pub. L. 116–922019—Subsec. (a)(1). substituted “Under Secretary of Defense for Acquisition and Sustainment” for “Under Secretary of Defense for Acquisition, Technology, and Logistics”.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 117–81Pub. L. 116–283section 1701(a)(2) of Pub. L. 117–81section 3001 of this titleAmendment by applicable as if included in the enactment of title XVIII of as enacted, see , set out in a note preceding and note below.

Pub. L. 116–283section 1801(d) of Pub. L. 116–283section 3001 of this titleAmendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as a note preceding .