We have received text from H.R. 45: Firearm Industry Non-Discrimination Act. This bill was received on 2025-01-03, and currently has 83 cosponsors.
Here is a short summary of the bill:
This bill, known as the Firearm Industry Non-Discrimination Act, introduces several key provisions aimed at ensuring that the federal government does not contract with companies or entities that discriminate against the firearm and ammunition industry. Here’s a breakdown of its main elements:
1. Prohibition on Discrimination
The bill mandates that the heads of federal executive agencies include specific clauses in all contracts for goods or services they award. These clauses require that:
- The primary contractor must certify that it does not have any policies or practices that discriminate against firearm entities or firearm trade associations.
- The primary contractor must agree not to adopt any discriminatory policies during the term of the contract.
2. Subcontracting Requirements
For subcontractors involved in these contracts, the bill requires that:
- A prime contractor may only award subcontracts valued over 10% of the contract total to entities that certify they do not discriminate against firearm entities or associations.
- Prime contractors must avoid structuring their subcontract tiers to circumvent this requirement.
3. Penalties for Non-Compliance
If a prime contractor violates these provisions, the contract may be terminated for default, and the contractor may face suspension or debarment proceedings.
4. Exception for Sole-Source Contracts
The requirements outlined in this bill do not apply to sole-source contracts where there is no competition to award a contract.
5. Definitions
Key terms are defined for clarity within the context of the bill, including:
- Discrimination: Making judgments based on partial criteria rather than on a case-by-case basis or using quantifiable standards.
- Firearm entity: Includes licensed individuals or businesses involved in the import, manufacture, sale, or dealing of firearms and ammunition, as well as manufacturers of safety devices related to firearms.
- Firearm trade association: Defined similarly to existing legal definitions, covering organizations involved in the firearm industry.
6. Application of the Law
The provisions will apply to contracts awarded on or after the date the act becomes law.
Relevant Companies
- SAFM - Sanderson Farms, Inc.: While primarily a food production company, potential impacts may arise if involved in federal contracts and related supply chains that engage with businesses in the firearm sector.
- RGR - Sturm, Ruger & Company: As a firearm manufacturer, this company may benefit from the legislation if it facilitates more federal contracts for goods and services related to firearms.
- DAO - American Outdoor Brands: This company manufactures various firearm-related products and could see changes in their contractual opportunities with the federal government.
- AXON - Axon Enterprise: Although primarily focused on technology for law enforcement, any potential partnerships or contracts that address firearm safety may be influenced by this bill.
This article is not financial advice. See Quiver Quantitative's disclaimers for more information.
