Canceled RFP? H.R. 789 Just Made That a Lot Less Painful for Small Businesses
If you've ever spent weeks preparing a bid—only for the agency to cancel it without a word—you’re not alone. For small government contractors, it’s one of the most frustrating (and expensive) parts of the game. But thanks to a new bill that just passed the House, that silent shutdown could soon become a thing of the past.
H.R. 789—the Transparency and Predictability in Small Business Opportunities Act—is setting a new standard for accountability when agencies cancel small business set-aside solicitations. Here’s what’s changing and what it means for your BD strategy.
What’s in the Bill: Plain and Simple
Under H.R. 789, if an agency cancels a small-business set-aside solicitation, they’ll have to disclose:
Why they canceled it (e.g., funding cuts, scope changes, contract consolidation).
If and when they plan to reissue it.
How the work will be handled instead—like rolling it into a larger contract or moving it to a different vehicle (e.g., IDIQ, BPA).
These disclosures must be made promptly and in writing—likely on SAM.gov or a similar public procurement site. The bill only applies to solicitations that were clearly set aside for small businesses (8(a), WOSB, SDVOSB, etc.).
Why This Matters for Small Contractors
This is more than a transparency win—it’s a strategic advantage.
No more guessing games. Instead of being ghosted by an agency, you’ll get a clear reason for the cancellation.
Fewer sunk costs. If you know early that the opportunity is dead or shifting, you can stop pouring time and money into it.
Better pipeline management. You’ll have the info you need to re-prioritize active leads and prepare for future cycles or contract vehicles.
For anyone who offers 8a contracts services, sba 8a certification assistance, disabled veteran government contracts, or holds a women owned small business certification, this rule gives you more control and predictability in your pursuit strategy.
So What Should You Do With This Info?
Start preparing now—even though H.R. 789 is still in the Senate. Here’s how:
Create a “Cancellation SOP”
Set up alerts on SAM.gov for status changes.
When a cancellation happens, immediately record the reason and next steps in your CRM or tracking tool.
Flag the opportunity in your pipeline and reassign team resources accordingly.
Make OSDBU Your New Best Friend
If a canceled solicitation won’t be reissued, the agency must refer you to their OSDBU.
Come prepared with a tailored capability statement that directly aligns with the canceled scope.
Ask for matchmaking: introductions to primes, program officers, or other contract leads.
Request to stay in the loop if the requirement re-emerges under a different contractor NAICS code or vehicle.
Track the Bill’s Progress
H.R. 789 passed the House on 06/03/2025 with strong bipartisan support.
It’s now in the Senate Small Business Committee. There’s no firm vote date yet.
Use Congress.gov or other free trackers to stay informed—and consider voicing support through advocacy groups like NSBA or WIPP.
Final Thought: This Is Your Cue to Build a Smarter BD Engine
If you’re advising clients on federal contracting certifications, writing proposals, or pursuing SBIR Grant Assistance, H.R. 789 can be the catalyst for tightening up internal processes. Instead of being blindsided, you’ll be able to pivot quickly, focus your team, and even open new doors through your agency’s OSDBU network.
Transparency is coming. Smart contractors will turn those cancellation notices into launchpads—not setbacks.
👉 Want to learn more about how to engage with agencies after an RFP gets pulled? Check out our post on "How to Read an RFP Like a Pro: The 10 Most Important Sections to Skim First".
If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set-aside programs at both the State and Federal level, to being empowered by a Fractional Capture team to win government contracts, to receiving tailored government contract opportunities Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.
