Summary: H.R.5271 — 103rd Congress (1993-1994)All Information (Except Text)

There is one summary for H.R.5271. Bill summaries are authored by CRS.

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Introduced in House (10/07/1994)


Title I: Amendments to Minority Small Business and Capital Ownership

Development Program

Title II: Amendments to Contracting Program

Minority Enterprise Development Act of 1994 - Title I: Amendments to Minority Small Business and Capital Ownership Development Program - Amends the Small Business Act (the Act) to rename the small business and capital ownership development program as the Minority Enterprise Development Program (Program). Extends certain Program time limitations with respect to small businesses participating in Program activities on the date of enactment of this Act. Provides for a nine-year Phase III period of small business participation in the Program, requiring Program participants to attempt to meet certain business plan goals during the first four years, and again during the last five years, of Phase III. Prohibits small business forecasts or contract support levels from being used by the Small Business Administration (SBA) to declare a firm ineligible for the award of a contract under the Act.

(Sec. 106) Allows a protest to be brought by various interested parties regarding a self-certification by a business concern of its status as a small business owned and controlled by socially and economically disadvantaged individuals. Requires the SBA's Office of Hearings and Appeals to hear and determine such protests.

(Sec. 107) Allows a Program participant to remain eligible for Program participation after transfer of an ownership interest in the business if ownership and control is retained by the socially and economically disadvantaged individuals upon whom Program eligibility is based. Allows, after certain certification, the continued participation of a tribally owned corporation which does not have a Native American as the firm's chief executive officer.

(Sec. 108) Empowers the Division for Program Certification and Eligibility to make recommendations on requests for reconsideration of denied applications for entry into Phase III of the Program, to make requests for suspension, termination, or graduation proceedings, and to implement such policy directives as may be issued by the Associate Administrator for Minority Enterprise Development.

(Sec. 109) Directs the SBA to segment the Program into three phases: (1) Phase I, a startup phase; (2) Phase II, a developmental phase; and (3) Phase III, a contracting stage. Provides time limitations for participation in each phase of two years, three years, and nine years, respectively.

(Sec. 111) Allows an agency with contracting authority, upon the request of a Program participant, to grant an exemption from a surety bond requirement (requiring the participant to obtain a surety performance bond and a bond protecting persons furnishing materials or labor under the contract) if the Program participant provides a certain certification, has otherwise provided for the protection of suppliers and laborers, and the award value of the contract does not exceed $1 million.

(Sec. 112) Allows small businesses that have completed the nine-year Phase III program (Program graduates) to assist current Phase III participants in meeting their developmental goals.

(Sec. 113) Revises the percentage of the outstanding loan balance that will be guaranteed by the SBA to 95 percent when the purpose is to finance government contracts, and to 90 percent when the purpose is for general working capital as a line of credit.

Title II: Amendments to Contracting Program - Directs the SBA to seek the establishment of procurement contract goals which will assure that contracts sufficient to satisfy the contract support levels identified by participants in the Program are designated by the various Federal agencies for award. Allows the SBA or its designee to enter into sole-source prime contracts with Phase III program participants. Provides, with respect to individual contracting opportunities, for: (1) the negotiation of contract terms and conditions; (2) the resolution of performance controversies; and (3) appeals of an adverse agency decision regarding the award of a contract.

(Sec. 202) Provides that whenever a requirements-type contract is to be awarded, the competition thresholds shall be calculated on the basis of the estimated total contract value.

(Sec. 203) Requires the SBA, upon notification that a Federal agency intends to consider a Program participant for award of a procurement contract, to: (1) notify the agency regarding the participant's eligibility for contract award; and (2) identify any matters that could render the Program participant ineligible at the time of contract award. Provides conditions under which a Program participant may be found eligible or ineligible for the awarding of Federal agency procurement contracts. Requires a determination of ineligibility to be supported by specific findings furnished to both the participant and the agency's appropriate contracting officer.

(Sec. 204) Revises provisions regarding the time limitations for requests for waiver of a provision of the Act requiring contract termination when there is a relinquishment of ownership or control of a business, or an incapacity or death occurs, during its performance.

(Sec. 205) Allows Program graduates to participate in the competition for a Federal procurement contracting opportunity, under specified conditions. Terminates such authority as of the end of FY 1997.

(Sec. 206) Allows the head of a participating executive agency, for purposes of attaining such agency's goal for the participation in procurement contracts of small businesses owned and controlled by socially and economically disadvantaged individuals, to enter into contracts using: (1) less than full and open competition; and (2) a price evaluation preference of up to ten percent when evaluating an offer received from such a small business as the result of an unrestricted solicitation.