[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1481 Reported in House (RH)]
<DOC>
Union Calendar No. 390
114th CONGRESS
2d Session
H. R. 1481
[Report No. 114-510]
To amend the Small Business Act to strengthen the small business
industrial base, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2015
Mr. Chabot introduced the following bill; which was referred to the
Committee on Small Business
April 19, 2016
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on March
19, 2015]
_______________________________________________________________________
A BILL
To amend the Small Business Act to strengthen the small business
industrial base, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Small Contractors
Improve Competition Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Including subcontracting goals in agency responsibilities;
reports.
Sec. 3. Data quality improvement.
Sec. 4. Notice and justification requirements for bundling or
consolidation of contract requirements.
Sec. 5. Joint venturing and teaming.
Sec. 6. Limitations on reverse auctions.
Sec. 7. Revision to the nonmanufacturer rule.
Sec. 8. Certification requirements for procurement center
representatives.
Sec. 9. Certification requirements for Business Opportunity
Specialists.
Sec. 10. Certification requirements for commercial market
representatives.
SEC. 2. INCLUDING SUBCONTRACTING GOALS IN AGENCY RESPONSIBILITIES;
REPORTS.
(a) In General.--Section 1633(b) of the National Defense
Authorization Act for Fiscal Year 2013 (Public Law 112-239; 126 Stat.
2076; 15 U.S.C. 631 note) is amended by striking ``assume
responsibility for of the agency's success in achieving small business
contracting goals and percentages'' and inserting ``assume
responsibility for the agency's success in achieving each of the small
business prime contracting and subcontracting goals and percentages''.
(b) GAO Study and Report on Accountability for Subcontracting.--
(1) Study.--Not later than 180 days after the date of
enactment of the Small Contractors Improve Competition Act of
2015, the Comptroller General of the United States shall begin
a study, which shall be conducted for a period of 1 year, to
assess whether the systems of an agency or department
accurately record the data necessary to comply with any
requirements related to subcontracting at any tier under the
Small Business Act (15 U.S.C. 631 et seq.).
(2) Report.--Not later than 90 days after the date on which
the study described in paragraph (1) is completed, the
Comptroller General shall submit a report to the Committee on
Small Business of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the Senate
on the results of such study.
(c) GAO Study and Report on Size Status.--
(1) Study.--The Comptroller General of the United States
shall conduct a study--
(A) to assess whether Federal agencies are
accurately identifying the size status of business
concerns awarded contracts in the Federal Procurement
Data System as small business concerns; and
(B) to identify, to the extent practicable, the
impact of incorrect size status designations on meeting
the requirements related to goals in subsections (g)
and (h) of section 15 of the Small Business Act (15
U.S.C. 644).
(2) Contents.--The study described in paragraph (1) shall
include--
(A) a description of the procedures and processes
of each Federal agency, including the roles of the
individuals described in section 1633(b) of the
National Defense Authorization Act for Fiscal Year 2013
(Public Law 112-239; 126 10 Stat. 2076; 15 U.S.C. 631
note) and the training provided to the acquisition
workforce of such agency (as described under section
1703 of title 41, United States Code);
(B) a description of the extent to which such
processes and procedures help ensure that business
concerns are assigned the most appropriate size status;
(C) a description of the interactions among the
Federal Procurement Data System, the System for Award
Management (as described under subpart 4.11 of title
48, Code of Federal Regulations) and comparable systems
run by the Small Business Administration and
recommendations for improving each system to reduce
errors in reporting size status; and
(D) recommendations on how to improve the accuracy
of the goaling reports required under section 15(h) of
the Small Business Act (15 U.S.C. 644(h)).
(3) Report.--Not later than 1 year after the date of
enactment of the Small Contractors Improve Competition Act of
2015, the Comptroller General shall submit a report to the
Committee on Small Business of the House of Representatives and
the Committee on Small Business and Entrepreneurship of the
Senate containing the results of the study conducted under
paragraph (1).
(4) Definitions.--In this subsection, the following
definitions shall apply:
(A) Federal agency.--The term ``Federal agency''
has the meaning given such term in section 3(b) of the
Small Business Act (15 U.S.C. 632(b)).
(B) Federal procurement data system.--The term
``Federal Procurement Data System'' means the system
referred to in section 1122(a)(4)(A) of title 41,
United States Code, or any successor system.
(C) Small business concern.--The term ``small
business concern'' has the meaning given such term
under section 3 of the Small Business Act (15 U.S.C.
632).
SEC. 3. DATA QUALITY IMPROVEMENT.
(a) In General.--Section 15(s) of the Small Business Act (15.
U.S.C. 644(s)) is amended--
(1) by redesignating paragraph (4) as paragraph (6); and
(2) by inserting after paragraph (3) the following new
paragraphs:
``(4) Implementation.--Not later than the first day of
fiscal year 2017, the Administrator of the Small Business
Administration shall implement the plan described in this
subsection.
``(5) Certification.--The Administrator shall annually
provide to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate certification of the accuracy
and completeness of data reported on bundled and consolidated
contracts.''.
(b) GAO Study.--
(1) Study.--Not later than the first day of fiscal year
2018, the Comptroller General of the United States shall
initiate a study on the effectiveness of the plan described in
section 15(s) of the Small Business Act (15 U.S.C. 644(s)) that
shall assess whether contracts were accurately labeled as
bundled or consolidated.
(2) Contracts evaluated.--For the purposes of conducting
the study described in paragraph (1), the Comptroller General
of the United States--
(A) shall evaluate, for work in each of sectors 23,
33, 54, and 56 (as defined by the North American
Industry Classification System), not fewer than 100
contracts in each sector;
(B) shall evaluate only those contracts--
(i) awarded by an agency listed in section
901(b) of title 31, United States Code; and
(ii) that have a Base and Exercised Options
Value, an Action Obligation, or a Base and All
Options Value (as such terms are defined in the
Federal procurement data system described in
section 1122(a)(4)(A) of title 41, United
States Code, or any successor system); and
(C) shall not evaluate contracts that have used any
set aside authority.
(3) Report.--Not later than 12 months after initiating the
study required by paragraph (1), the Comptroller General of the
United States shall report to the Committee on Small Business
of the House of Representatives and the Committee on Small
Business and Entrepreneurship of the Senate on the results from
such study and, if warranted, any recommendations on how to
improve the quality of data reported on bundled and
consolidated contracts.
SEC. 4. NOTICE AND JUSTIFICATION REQUIREMENTS FOR BUNDLING OR
CONSOLIDATION OF CONTRACT REQUIREMENTS.
(a) Notice of Contract Consolidation for Acquisition Strategies.--
Section 44(c)(2) of the Small Business Act (15 U.S.C. 657q(c)(2)) is
amended by adding at the end the following:
``(C) Notice.--Not later than 7 days after making a
determination that an acquisition strategy involving a
consolidation of contract requirements is necessary and
justified under subparagraph (A), the senior
procurement executive or Chief Acquisition Officer
shall publish a notice on a public website that such
determination has been made. Any solicitation for a
procurement related to the acquisition strategy may not
be published earlier than 7 days after such notice is
published. Along with the publication of the
solicitation, the senior procurement executive or Chief
Acquisition Officer shall publish a justification for
the determination, which shall include the information
in subparagraphs (A) through (E) of paragraph (1).''.
(b) Notice of Contract Consolidation for Procurement Strategies.--
Section 15(e)(3) of such Act (15 U.S.C. 644(e)(3)) is amended to read
as follows:
``(3) Strategy specifications.--If the head of a
contracting agency determines that an acquisition plan for a
procurement involves a substantial bundling of contract
requirements, the head of a contracting agency shall publish a
notice on a public website that such determination has been
made not later than 7 days after making such determination. Any
solicitation for a procurement related to the acquisition plan
may not be published earlier than 7 days after such notice is
published. Along with the publication of the solicitation, the
head of a contracting agency shall publish a justification for
the determination, which shall include following information:
``(A) The specific benefits anticipated to be
derived from the bundling of contract requirements and
a determination that such benefits justify the
bundling.
``(B) An identification of any alternative
contracting approaches that would involve a lesser
degree of bundling of contract requirements.
``(C) An assessment of--
``(i) the specific impediments to
participation by small business concerns as
prime contractors that result from the bundling
of contract requirements; and
``(ii) the specific actions designed to
maximize small business participation as
subcontractors (including suppliers) at various
tiers under the contract or contracts that are
awarded to meet the requirements.''.
(c) Technical Amendment.--Section 44(c)(1) of such Act (15 U.S.C.
657q(c)(1)) is amended by striking ``Subject to paragraph (4), the
head'' and inserting ``The head''.
SEC. 5. JOINT VENTURING AND TEAMING.
(a) Joint Venture Offers for Bundled or Consolidated Contracts.--
Section 15(e)(4) of the Small Business Act (15 U.S.C. 644(e)(4)) is
amended to read as follows:
``(4) Contract teaming.--
``(A) In general.--In the case of a solicitation of
offers for a bundled or consolidated contract that is
issued by the head of an agency, a small business
concern may submit an offer that provides for use of a
particular team of subcontractors or a joint venture of
small business concerns for the performance of the
contract.
``(B) Evaluation of offers.--The head of the agency
shall evaluate the offer of a team or a joint venture
of small business concerns in the same manner as other
offers, with due consideration to the capabilities of
all of the proposed subcontractors or members of the
joint venture as follows:
``(i) Teams.--When evaluating an offer of a
small business prime contractor whose offer
includes a proposed team of small business
subcontractors, the head of the agency shall
consider the capabilities and past performance
of each first tier subcontractor that is part
of the team as the capabilities and past
performance of the team.
``(ii) Joint ventures.--When evaluating an
offer of a joint venture of small business
concerns, if the joint venture does not have
sufficient capabilities or past performance to
be considered for award of a contract
opportunity, the head of the agency shall
consider the capabilities and past performance
of each member of the joint venture as the
capabilities past performance of the joint
venture.
``(C) Status as a small business concern.--
Participation of a small business concern in a team or
a joint venture under this paragraph shall not affect
the status of that concern as a small business concern
with respect to the performance of a contract described
in subparagraph (A).''.
(b) Team and Joint Ventures Offers for Multiple Award Contracts.--
Section 15(q)(1) of such Act (15 U.S.C. 644(q)(1)) is amended--
(1) in the heading, by inserting ``and joint venture''
before ``requirements'';
(2) by striking ``Each Federal agency'' and inserting the
following:
``(A) In general.--Each Federal agency''; and
(3) by adding at the end the following new subparagraphs:
``(B) Teams.--When evaluating an offer of a small
business prime contractor whose offer includes a
proposed team of small business subcontractors for any
multiple award contract above the substantial bundling
threshold of the Federal agency, the head of the agency
shall consider the capabilities and past performance of
each first tier subcontractor that is part of the team
as the capabilities and past performance of the
offeror.
``(C) Joint ventures.--When evaluating an offer of
a joint venture of small business concerns for any
multiple award contract above the substantial bundling
threshold of the Federal agency, if the joint venture
does not have sufficient capabilities or past
performance to be considered for award of a contract
opportunity, the head of the agency shall consider the
capabilities and past performance of each member of the
joint venture as the capabilities and past performance
of the joint venture.
``(D) Use of small business teams or joint
ventures.--
``(i) In general.--For contracts awarded
under section 8(a), 8(m), 15(a), 15(j), 31, or
36 to a small business team or a joint venture
of small business concerns, the contracting
officer shall certify annually to the
Administration, for each year the contract is
in effect, that each small business concern
member of such team or joint venture has the
same status of a small business concern, small
business concern owned and controlled by
service-disabled veterans, qualified HUBZone
small business concern, small business concern
owned and controlled by socially and
economically disadvantaged individuals, or
small business concern owned and controlled by
women, as applicable, that such concern had at
the time the contract was awarded.
``(ii) Exception.--The requirements of
clause (i) shall not apply to a contract
awarded to a joint venture of small business
concerns that is a protege under a mentor-
protege program approved pursuant to section
45.''.
(c) Rulemaking.--Not later than 1 year after the date of enactment
of this section, the Administrator of the Small Business Administration
shall issue any regulations necessary to carry out the amendments made
by this section.
SEC. 6. LIMITATIONS ON REVERSE AUCTIONS.
(a) Sense of Congress.--It is the sense of Congress that, when used
appropriately, reverse auctions may improve the Federal Government's
procurement of commercially available commodities by increasing
competition, reducing prices, and improving opportunities for small
businesses.
(b) Limitations on Reverse Auctions.--The Small Business Act (15
U.S.C. 631 et seq.) is amended--
(1) by redesignating section 47 (15 U.S.C. 631 note) as
section 48; and
(2) by inserting after section 46 the following new
section:
``SEC. 47. LIMITATIONS ON REVERSE AUCTIONS.
``(a) Prohibition on Using Reverse Auctions for Covered
Contracts.--In the case of a covered contract described in subsection
(c), reverse auction methods may not be used if the award of the
contract is to be made under--
``(1) section 8(a);
``(2) section 8(m);
``(3) section 15(a);
``(4) section 15(j);
``(5) section 31; or
``(6) section 36.
``(b) Limitations on Using Reverse Auctions.--In the case of the
award of a contract to be made under paragraphs (1) through (6) of
subsection (a) that is not a covered contract, reverse auction methods
may be used pursuant to the following requirements:
``(1) Decisions regarding use of a reverse auction.--A
contracting officer shall make the following decisions, which
may not be delegated to any person except for another
contracting officer who meets the training requirements of
paragraph (2):
``(A) A decision to use reverse auction methods as
part of the competition for award of a contract.
``(B) Any decision made after the decision
described in subsection (A) regarding the appropriate
evaluation criteria, the inclusion of vendors, the
acceptability of vendor submissions (including
decisions regarding timeliness), and the selection of
the winner.
``(2) Training required.--Only a contracting officer who
has received training on the appropriate use and supervision of
reverse auction methods of contracting may supervise or use
such methods in a procurement for a contract. The training
shall be provided by, or similar to the training provided by,
the Defense Acquisition University as described in section 824
of the Carl Levin and Howard P. `Buck' McKeon National Defense
Authorization Act for Fiscal Year 2015 (Public Law 113-291).
``(3) Number of offers; revisions to bids.--A Federal
agency may not award a contract using a reverse auction method
if only one offer is received or if offerors do not have the
ability to submit revised bids with lower prices throughout the
course of the auction.
``(4) Technically acceptable offers.--A Federal agency
awarding a contract using a reverse auction method shall
evaluate the technical acceptability of offers only as
technically acceptable or unacceptable.
``(5) Use of price rankings.--A Federal agency may not
award a contract using a reverse auction method if at any time
during the award process the Federal agency misinforms an
offeror about the price ranking of the offeror's last offer
submitted in relation to offers submitted by other offerors.
``(6) Use of third-party agents.--If a Federal agency uses
a third party agent to assist with the award of contracts using
a reverse auction method, the Federal agency shall ensure
that--
``(A) inherently governmental functions (as such
term is used in section 2303 of title 41, United States
Code) are not performed by private contractors,
including by the third party agent;
``(B) information on the past contract performance
of offerors created by the third party agent and shared
with the Federal agency is collected, maintained, and
shared in compliance with section 1126 of title 41,
United States Code;
``(C) information on whether an offeror is a
responsible source (as defined in section 113 of title
41, United States Code) that is created by the third
party agent and shared with the Federal agency is
shared with the offeror and complies with section
8(b)(7) of this Act; and
``(D) disputes between the third party agent and an
offeror may not be used to justify a determination that
an offeror is not a responsible source (as defined in
section 113 of title 41, United States Code) or to
otherwise restrict the ability of an offeror to compete
for the award of a contract or task or delivery order.
``(c) Definitions.--In this section:
``(1) Contracting officer.--The term `contracting officer'
has the meaning given that term in section 2101(1) of title 41,
United States Code.
``(2) Covered contract.--The term `covered contract' means
a contract--
``(A) for design and construction services;
``(B) for goods purchased to protect Federal
employees, members of the Armed Forces, or civilians
from bodily harm; or
``(C) for goods or services other than those goods
or services described in subparagraph (A) or (B)--
``(i) to be awarded based on factors other
than price and technical responsibility; or
``(ii) if awarding the contract requires
the contracting officer to conduct discussions
with the offerors about their offer.
``(3) Design and construction services.--The term `design
and construction services' means--
``(A) site planning and landscape design;
``(B) architectural and interior design;
``(C) engineering system design;
``(D) performance of construction work for
facility, infrastructure, and environmental restoration
projects;
``(E) delivery and supply of construction materials
to construction sites;
``(F) construction, alteration, or repair,
including painting and decorating, of public buildings
and public works; and
``(G) architectural and engineering services as
defined in section 1102 of title 40, United States
Code.
``(4) Reverse auction.--The term `reverse auction' means,
with respect to procurement by an agency, an auction between a
group of offerors who compete against each other by submitting
offers for a contract or task or delivery order with the
ability to submit revised offers with lower prices throughout
the course of the auction.''.
SEC. 7. REVISION TO THE NONMANUFACTURER RULE.
(a) Procurement Contracts.--Section 8(a)(17) of the Small Business
Act (15 U.S.C. 637(a)(17)) is amended--
(1) in subparagraph (A), by striking ``any procurement
contract'' and all that follows through ``section 15'' and
inserting ``any procurement contract, which contract has as its
principal purpose the supply of a product to be let pursuant to
this subsection or subsection (m), or section 15(a), 31, or
36,''; and
(2) by adding at the end the following new subparagraph:
``(C) Limitation.--This paragraph shall not apply to a
contract that has as its principal purpose the acquisition of
services or construction.''.
(b) Subcontractor Contracts.--Section 46(a)(4) of such Act (15
U.S.C. 657s(a)(4)) is amended by striking ``for supplies from a regular
dealer in such supplies'' and inserting ``which is principally for
supplies from a regular dealer in such supplies, and which is not a
contract principally for services or construction''.
(c) Publication of Class Waivers.--The Administrator of the Small
Business Administration shall publish a list of waivers to the
requirements of section 8(a)(17) of the Small Business Act (15 U.S.C.
637(a)(17)) granted for a class of products as an appendix to section
121.406 of title 13, Code of Federal Regulations (or any successor
regulation).
(d) Rulemaking.--
(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator of the Small
Business Administration shall issue any rules necessary to
carry out the amendments made by this section.
(2) Report.--Not later than 1 year after the issuance of
the rules required in paragraph (1), the Comptroller General
shall--
(A) review the compliance of the Small Business
Administration with the application of the requirements
of section 8(a)(17) of the Small Business Act (15
U.S.C. 637(a)(17)); and
(B) submit a report to the Committee on Small
Business of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the
Senate with any recommendations on how to increase
compliance with such requirements.
SEC. 8. CERTIFICATION REQUIREMENTS FOR PROCUREMENT CENTER
REPRESENTATIVES.
Section 15(l)(5)(A)(iii) of the Small Business Act (15 U.S.C.
644(l)(5)(A)(iii)) is amended by striking ``except that'' and all that
follows through the period at the end and inserting the following:
``except that--
``(I) any person serving in such a
position on or before January 3, 2013,
may continue to serve in that position
for a period of 5 years beginning on
such date without the required
certification; and
``(II) any person hired for such
position after January 3, 2013, may
have up to one calendar year from the
date of employment to obtain the
required certification.''.
SEC. 9. CERTIFICATION REQUIREMENTS FOR BUSINESS OPPORTUNITY
SPECIALISTS.
(a) In General.--Section 4 of the Small Business Act (15 U.S.C.
633) is amended by adding at the end the following new subsection:
``(g) Certification Requirements for Business Opportunity
Specialists.--A Business Opportunity Specialist described under section
7(j)(10)(D) shall have a Level I Federal Acquisition Certification in
Contracting (or any successor certification) or the equivalent
Department of Defense certification, except that--
``(1) a Business Opportunity Specialist who was serving on
or before January 3, 2013, may continue to serve as a Business
Opportunity Specialist for a period of 5 years beginning on
such date without such a certification; and
``(2) any person hired as a Business Opportunity Specialist
after January 3, 2013, may have up to one calendar year from
the date of employment to obtain the required certification.''.
(b) Conforming Amendment.--Section 7(j)(10)(D)(i) of such Act (15
U.S.C. 636(j)(10)(D)(i)) is amended by striking the second sentence.
SEC. 10. CERTIFICATION REQUIREMENTS FOR COMMERCIAL MARKET
REPRESENTATIVES.
Section 4 of the Small Business Act (15 U.S.C. 633), as amended by
section 9 of this Act, is further amended by adding at the end the
following new subsection:
``(h) Certification Requirements for Commercial Market
Representatives.--A commercial market representative referred to in
section 15(q)(3) shall have a Level I Federal Acquisition Certification
in Contracting (or any successor certification) or the equivalent
Department of Defense certification, except that--
``(1) a commercial market representative who was serving on
or before the date of enactment of the Small Contractors
Improve Competition Act of 2015 may continue to serve as a
commercial market representative for a period of 5 years
beginning on such date without such a certification; and
``(2) any person hired as a commercial market
representative after the date of enactment of the Small
Contractors Improve Competition Act of 2015 may have up to one
calendar year from the date of employment to obtain the
required certification.''.
Union Calendar No. 390
114th CONGRESS
2d Session
H. R. 1481
[Report No. 114-510]
_______________________________________________________________________
A BILL
To amend the Small Business Act to strengthen the small business
industrial base, and for other purposes.
_______________________________________________________________________
April 19, 2016
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed