[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5344 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 5344
To establish a pilot program for transitioning small businesses in the
construction or engineering industries, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 21, 2022
Mr. Young (for himself, Mr. Hickenlooper, and Mr. Kelly) introduced the
following bill; which was read twice and referred to the Committee on
Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To establish a pilot program for transitioning small businesses in the
construction or engineering industries, 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.
This Act may be cited as the ``Solving the Unnecessary Contracting
Cliff for Enterprises to Scale Successfully Act'' or the ``SUCCESS
Act''.
SEC. 2. PILOT PROGRAM FOR TRANSITIONING SMALL BUSINESSES IN THE
CONSTRUCTION OR ENGINEERING INDUSTRIES.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 32 the following:
``SEC. 33. PILOT PROGRAM FOR TRANSITIONING SMALL BUSINESSES IN THE
CONSTRUCTION OR ENGINEERING INDUSTRIES.
``(a) Definitions.--In this section:
``(1) Eligible concern.--The term `eligible concern' means
a concern that has grown to exceed the size standard applicable
to the North American Industry Classification System code
corresponding to--
``(A) commercial and institutional building
construction; or
``(B) engineering services.
``(2) Participant.--The term `Participant' means an
eligible concern that--
``(A) meets the criteria described in subsection
(d); and
``(B) participates in the Program.
``(3) Program.--The term `Program' means the pilot program
for transitioning small businesses established under paragraph
(b).
``(b) Establishment.--Not later than 1 year after the date of
enactment of this section, the Administrator shall promulgate
regulations establishing a pilot program to foster the continued
success of eligible concerns by permitting those concerns to qualify as
small for certain contracts during a transitional period.
``(c) Purpose.--The purpose of the Program is to assist eligible
concerns in their transition from small business concerns to other-
than-small and thereby increase competition in the unrestricted Federal
marketplace.
``(d) Criteria for Participation.--
``(1) Election.--An eligible concern may make a one-time
election, which shall not be changed, to participate, with
respect to the primary activity of the eligible concern,
under--
``(A) the North American Industry Classification
System Code corresponding to commercial and
institutional building construction; or
``(B) the North American Industry Classification
System Code corresponding to engineering services.
``(2) Registration.--An eligible concern shall--
``(A) register as a Participant with the System for
Award Management (or any successor system) on the date
on which the eligible concern makes the election under
paragraph (1) in the registry described in subsection
(h); and
``(B) ensure that the registration of the eligible
concern is current and accurate.
``(3) Term of the transitional period.--
``(A) In general.--Except as provided in
subparagraph (B), the transitional period, during which
an eligible concern may be eligible to participate in
the Program, shall--
``(i) begin on the date which the eligible
concern first exceeds the size standard
applicable to the North American Industry
Classification System code corresponding to the
industry elected by the concern pursuant to
paragraph (1); and
``(ii) not exceed 7 consecutive years.
``(B) Exception.--An eligible concern first
exceeding the size standard described in subparagraph
(A)(i) within the 7-year period immediately preceding
the effective date of regulations issued under
subsection (b) shall be eligible to participate in the
Program for the remainder of the 7-year period
beginning on the date which the concern first exceeded
the size standard.
``(4) Activity targets.--The regulations described in
subsection (b) shall establish non-small business set aside
business activity targets that--
``(A) are applicable to Participants during the
third year and each succeeding year of Program
participation; and
``(B) during the period of time described in
subparagraph (A), shall reflect a reasonably consistent
increase in sales other than obtained through contracts
set aside for small business concerns, expressed as a
percentage of total sales.
``(5) Cap on average annual receipts.--Each Participant
shall be subject to a cap on average annual receipts that is 5
times the size standard applicable to the North American
Industry Classification System code corresponding to the
industry elected by the concern, calculated consistent with the
method in 121.104 of title 13, Code of Federal Regulations, or
any successor regulation.
``(6) Certification.--
``(A) In general.--Each Participant shall be
required to annually certify in the System for Award
Management (or any successor system) as to whether or
not the Participant has--
``(i) met the activity target established
under paragraph (4) for the preceding year; and
``(ii) complied with the restrictions
described in subsection (e).
``(B) Noncompliance.--If a Participant certifies
that the Participant has not met the applicable
activity targets established under paragraph (4) for 2
consecutive years, or certifies that the Participant
has not complied with the restrictions described in
subsection (e), the Participant shall no longer be
eligible to participate in the Program.
``(7) Participant report.--The regulations issued under
subsection (b) shall establish--
``(A) requirements for annual reporting by
Participants to the Administrator during Program
participation, to include reporting on compliance with
activity targets established under paragraph (4), the
number and dollar value of contracts awarded based on
eligibility under subsection (f)(1), and information
required for the registry under subsection (h); and
``(B) reporting requirements applicable for a
period of not less than 5 years after exiting the
Program.
``(8) No reinstatement.--Upon the expiration of the
transitional period, or once a Participant otherwise becomes
ineligible for the Program, the concern shall not be eligible
for reinstatement in the Program.
``(e) Restrictions.--
``(1) Mentor-protege.--
``(A) In general.--A Participant may not apply to
be a protege under a mentor-protege program established
under this Act.
``(B) Existing proteges.--A Participant that is
already a protege prior to registration under the
Program under subsection (d)(2) may, in years 1 and 2
of the transitional period of the Program, continue to
submit proposals in a mentor-protege program
established under this Act.
``(2) Additional restrictions.--In addition to the
restrictions described in paragraph (1), the Administrator may
include additional restrictions for Participants consistent
with the purposes of this Act.
``(f) Purposes for Which Participants May Qualify as Small.--
Subject to the restrictions in paragraph (e), a Participant may
otherwise qualify as small for purposes of the following:
``(1) Contracts that are set aside for small business
concerns and assigned a North American Industry Classification
System code corresponding to the industry elected by the
Participant under subsection (d)(1) and--
``(A) the Government of the United States expects
to be equal to or exceed--
``(i) for commercial and institutional
building construction, $5,000,000; and
``(ii) for engineering services,
$1,000,000; and
``(B) any orders under such contracts irrespective
of the value of the order.
``(2) Goals established pursuant to section 15(g) for
participation by small business concerns, small business
concerns owned and controlled by service-disabled veterans,
qualified HUBZone small business concerns, small business
concerns owned and controlled by socially and economically
disadvantaged individuals, and small business concerns owned
and controlled by women.
``(g) Termination.--
``(1) In general.--The Program shall terminate on the date
that is 10 years after the date of enactment of this section.
``(2) Continuation of participation.--Notwithstanding
paragraph (1), any Participant in the program as of the date on
which the Program terminates under paragraph (1) may continue
to participate until the expiration of the term of the
Participant under subsection (d)(3).
``(h) Publication of Registry Required.--The Administrator shall
establish and maintain in the System for Award Management (or any
successor system) a registry of eligible Participants, which registry
shall, to the extent practicable--
``(1) include the name, address, transitional period entry
and exit dates, and elected North American Industry
Classification System code with respect to each Participant;
and
``(2) be updated by the Administrator not less than
annually.
``(i) Additional Information To Be Maintained.--The Administrator
shall maintain data regarding--
``(1) the number of Participants in the Program;
``(2) the number of former Participants that have exited
the Program;
``(3) the number of former Participants that have
successfully transitioned to other-than-small, under such
criteria as the Administrator may establish;
``(4) the number of former Participants that have returned
to being small under North American Industry Classification
System code elected by the Participant under subsection (d)(1);
and
``(5) the total dollar value of small business awards made
each fiscal year to Participants by each Federal agency.
``(j) GAO Study and Report.--
``(1) Study.--Not later than 2 years after the date of
enactment of this section, the Comptroller General of the
United States shall begin conducting a study to evaluate the
implementation of the Program.
``(2) Report.--Not later than 8 years after the date of
enactment of this section, the Comptroller General of the
United States shall submit to Congress a report on the results
of the study required under paragraph (1), which shall
include--
``(A) an assessment of the feasibility and
advisability of broadening the Program to include
additional industries, as defined under the North
American Industry Classification System;
``(B) the effects of the Program, if any, on
Participants and on the industrial base;
``(C) any recommendations for improving the
Program, including whether the Program should be made
permanent; and
``(D) any additional findings and recommendations
as the Comptroller General of the United States
considers appropriate.''.
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