There is one summary. Bill summaries are authored by CRS.

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Introduced in House (07/20/1987)

Minority Small Business Development Act of 1987 - Amends the Small Business Act to provide that the minimum period of participation by a small business in the small business and capital ownership development program or the program providing for Government procurement through Small Business Administration subcontracts with socially and economically disadvantaged small businesses (set-aside program) shall be ten years.

Authorizes Federal agencies to honor options and modifications to procurement contracts with the Small Business Administration if they are within the scope of work of the contract made when the contractor participated in the set-aside program and otherwise was eligible to enter into the contract. Ends the requirement for the Administration to participate in contracting activities relating to options or modifications following graduation from the set-aside program. Allows the procuring agency and the firm to enter directly into such options or modifications.

Allows businesses that participated in the set-aside program and remain minority owned after graduation to, on a negotiated procurement basis, contract directly with procuring agencies for new contracts involving the same activities as the incumbent contract for up to three years.

Provides that standards restricting set-aside program support to a limited number of industrial classification codes in an approved business plan will not apply to small businesses applying for such program.

Prohibits using the gross receipts or employment of a business attributable to the performance of a contract awarded under the set-aside program to determine the size of such concern for any program under the Small Business Act or the Small Business Investment Act of 1958. Prohibits the Administration from imposing any limitation on sales by any small business that exceeds levels approved under the business plan submitted by such concern.

Requires each Federal agency with procurement powers to increase the number and dollar value of contracts awarded to small businesses under the Small Business Act for three fiscal years beginning after the date of enactment of this Act above the number and dollar value applicable for FY 1987. Provides that if at the end of FY 1988 the number and dollar value of contracts awarded have not increased, the interim rule implementing the goal of awarding five percent of Department of Defense contracts to small business concerns owned and controlled by socially and economically disadvantaged individuals, historically black colleges, and minority institutions (the minority contract goal) will be suspended until there is an increase.

Requires the Administration to establish regulations for prompt, simultaneous processing of applications for certification into the set-aside program. Provides that six months after submitting appropriate forms to the Administration an applicant will be certified, unless the applicant has been rejected for a valid reason.

Deems a contract to be approved unless within ten days after its submission to the Administration the Administration has an objection for a specific, valid reason.

Requires the head of each Federal agency to provide in the performance appraisal of contracting officers that a critical factor will be their performance in satisfying the minority set-aside objectives and the utilization of the negotiated procurement program for the minority set-aside program.

Requires the head of each Federal agency to establish procedures for contracting officers to: (1) set goals for the agency's prime contractors in awarding subcontracts to firms owned and controlled by socially and economically disadvantaged individuals with a minimum goal of five percent for a solicitation of an offer which may exceed $1,000,000 for the construction of any public facility and $500,000 for all other contracts; and (2) provide incentives for such firms to facilitate achievement of the agency's minority set-aside program objectives.

Sets forth provisions governing the determination of a fair market price for a procurement requirement under the set-aside program. Provides that for a new procurement requirement or one lacking a satisfactory procurement history, the estimate of a current fair market price will be derived from a price or cost analysis conducted by the agency offering the requirement to the Administration. Provides that for a procurement requirement with a satisfactory procurement history, the estimate of a current fair market price will be formulated by the agency offering the requirement to the Administration and will be based on recent award prices adjusted to insure comparability. Provides that socially and economically disadvantaged small businesses are entitled to: (1) a written statement detailing the method used by the agency to estimate the current fair market price for such contract; and (2) the right to protest the use of such method to the Administrator, who must render a decision in ten days.

Provides that the director of each agency's Office of Small and Disadvantaged Business Utilization will decide under which small business set-aside program a particular procurement will be administered.

Directs contracting officers to require all firms submitting proposals for Department of Defense contracts to include representations and warranties that: (1) the concern is at least 51 percent owned by socially and economically disadvantaged individuals; (2) such individuals manage the concern on a daily basis; and (3) the concern is under the size standards established by the Administration.

Requires the Administration to issue regulations providing for discovery to an appeal pertaining to the Department of Defense minority contract goal provisions.

Provides that the Department of Defense's prenegotiation profit objectives shall not apply to small businesses.

Requires that if the Department of Defense does not meet the contract goal for minorities by the end of FY 1989, it will become a mandatory requirement.

Renames the set-aside program as the negotiated procurement program.