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116th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                             { 116-361

======================================================================



 
        UNLOCKING OPPORTUNITIES FOR SMALL BUSINESSES ACT OF 2019

                                _______
                                

 December 19, 2019.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Ms. Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5146]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 5146) to amend the Small Business Act to require 
contracting officers to take a small business concern's past 
performance as part of a joint venture into account when 
evaluating the small business concern, and for other purposes, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
   I.  Purpose and Bill Summary.......................................2
  II.  Background and Need for Legislation............................2
 III.  Hearings.......................................................4
  IV.  Committee Consideration........................................4
   V.  Committee Votes................................................4
  VI.  Section-by-Section of H.R. 5146................................6
 VII.  Congressional Budget Office Estimate...........................6
VIII.  Unfunded Mandates..............................................6
  IX.  New Budget Authority, Entitled Authority, and Tax Expenditures.6
   X.  Oversight Findings.............................................7
  XI.  Statement of Constitutional Authority..........................7
 XII.  Congressional Accountability Act...............................7
XIII.  Federal Advisory Committee Act Statement.......................7
 XIV.  Statement of No Earmarks.......................................7
  XV.  Statement of Duplication of Federal Programs...................7
 XVI.  Disclosure of Directed Rule Makings............................7
XVII.  Performance Goals and Objectives...............................7
XVIII. Changes in Existing Law, Made by the Bill, as Reported.........8


                      I. Purpose and Bill Summary

    The purpose of H.R. 5146, the Unlocking Opportunities for 
Small Businesses Act of 2019, is to require federal contracting 
officers to consider a joint venture's past performance when 
evaluating the past performance of a small business joint 
venture member that is seeking to compete for federal prime 
contracts. It also requires contracting officers to accept past 
performance information provided by a prime contractor 
regarding its subcontractor.

                II. Background and Need for Legislation

    H.R. 5146, the Unlocking Opportunities for Small Businesses 
Act, was introduced by Representative James Hagedorn (R-MN) and 
Representative Dwight Evans (D-PA) on November 18, 2019.
    The Federal Acquisition Regulation authorizes contractors 
to form teams to compete for federal contracts. These teaming 
arrangements can consist of teaming agreements or joint 
ventures. Joint ventures are essentially business partnerships 
formed between two parties for a temporary period to fulfill a 
business interest, in which the joint venture becomes its own 
formal, legal entity independent of the members that make up 
the joint venture. In a joint venture, the joint venture itself 
becomes the prime contractor, meaning that each member to the 
joint venture has a direct contractual relationship with the 
government. The joint venture's members are collectively 
responsible for the joint venture's performance and share in 
its benefits and obligations as a prime contractor. For 
purposes of the SBA, the joint venture members must be small 
businesses themselves, with the exception of an SBA-approved 
Mentor-Protege relationship which permits a small protege and a 
large mentor to form a joint venture.
    Joint ventures have become increasingly popular as small 
businesses seek ways to effectively compete in the federal 
marketplace since it permits small businesses to pool their 
resources together to form a new, more competitive entity. 
However, understanding how to assess past performance generated 
by joint ventures has not yet caught up with the rate in which 
joint ventures have been utilized.
    In addition to teaming arrangements, contractors can 
develop business relationships with other businesses in the 
form of the traditional subcontracting arrangement. In this 
business model, the prime contractor receives the contract 
directly from the government, has a direct legal relationship 
(privity) with the government and is responsible for 
contractual obligations and benefits. If the prime contractor 
awards contracts to subcontractors, the latter has no privity 
with the government and must work through the prime contractor. 
For many small businesses, particularly those new to the 
federal marketplace, subcontracting is the best and only method 
for a small business to gain a foothold in the federal space.
    Past performance is an important indicator of an offeror's 
ability to successfully perform future contracts by relaying 
information regarding the contractor's actions under previous 
contracts and task orders. Past performance is one of the most 
relevant selection factors a contracting officer considers when 
making an award decision. Therefore, being able to utilize past 
performance experience in future solicitations is critically 
important for contractor's competitiveness, particularly for 
small businesses who have not generated as much past 
performance experience as their larger counterparts.
    An often-cited issue within the small business community is 
the circular problem of past performance--small businesses 
cannot compete for prime contracts without demonstrating 
relevant past performance, but they cannot obtain past 
performance experience without winning contracts. Small 
businesses that have performed work as part of a joint venture 
often experience this problem because a relevant past 
performance rating solely for the small business may not exist. 
Moreover, while the Small Business Act requires agencies in 
certain circumstances to consider the past performance of each 
participant in a joint venture as the past performance of the 
joint venture itself, there is no distinct provision which 
would allow the reverse: for the past performance experience 
generated by the joint venture to flow back to the individual 
joint venture member. Thus, while some agencies at their 
discretion may consider the relevant past performance 
information of individual members of a team arrangement in 
certain situations (i.e. if they are performing major or 
critical aspects of a contract requirement), they are under no 
obligation to do so. This results in differing and arbitrary 
treatment of joint venture past performance experience by 
federal agencies and may even differ from contracting officer 
to contracting officer within the same federal agency, creating 
uncertainty and confusion for small businesses interested in 
competing for federal contracts.
    This situation is even worse for subcontractors because 
federal agencies do not generate official records pertaining to 
subcontractor's past performance.\1\ Thus, while subcontractors 
may be performing substantial work, they do not receive an USG-
issued rating to build the past performance record, which is 
what contracting officers generally consider for determining if 
a business has the necessary past performance. To demonstrate 
past performance as part of an offer for a prime contract, 
former subcontractors often resort to providing past 
performance information generated by their former primes. 
However, contracting officers are under no obligation to 
consider such past performance, regardless of how relevant it 
might be to the current contract.
---------------------------------------------------------------------------
    \1\Section 1822 of the National Defense Authorization Act for 
Fiscal Year 2017, Pub. L. No. 114-328, Sec. 1822, 130 Stat. 2000, 2654 
(2016), created a pilot program to allow qualified subcontractors to 
receive a government past performance rating (commonly known as a 
Contractor Performance Assessment Reports System rating or CPARS 
rating). However, pursuant to conversations with the Small Business 
Administration, that pilot program proved impossible to implement.
---------------------------------------------------------------------------
    H.R. 5146 provides a solution by allowing past performance 
information on joint ventures and subcontractors to be 
consistently and uniformly accepted across the government and 
considered when evaluating the past performance of a small 
business seeking to perform as a prime contractor. This 
legislation will have the effect of broadening the field of 
competition and the growth of the industrial base by 
encouraging more small businesses with relevant past 
performance experience to compete for prime contracts. In turn 
this competition may ultimately decrease costs, benefitting 
taxpayers.

                             III. Hearings

    In the 116th Congress, the Small Business Committee held a 
hearing on July 16, 2019, titled ``Challenges and Opportunities 
in the Federal Procurement Marketplace'' which underscored the 
importance of subcontracting as a way for small business to 
gain a foothold in the federal marketplace.\2\ H.R. 5146 allows 
small businesses to capitalize on the past performance 
experience obtained while performing as a subcontractor so that 
small businesses can then advance to bigger and better 
opportunities. Moreover, the hearing highlighted the need to 
enhance the competitive viability of small businesses, and H.R. 
5146 does just that by eliminating an important barrier to 
entry.
---------------------------------------------------------------------------
    \2\Challenges and Opportunities in the Federal Procurement 
Marketplace: Hearing Before the Subcomm. on Contracting and 
Infrastructure of the H. Comm. on Small Bus., 116th Cong. (2019)
---------------------------------------------------------------------------

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on November 20th, 2019 and ordered H.R. 
5146 favorably reported to the House. During the markup, no 
amendments were offered.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 5146 to the House at 12:11 p.m.


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                  VI. Section-by-Section of H.R. 5146


Section 1. Short title

    This section designates the short title as the ``Unlocking 
Opportunities for Small Businesses Act of 2019''.

Section 2. Past performance ratings of joint ventures for small 
        business concerns

    This section amends section 15(e) of the Small Business Act 
to include a provision requiring the Small Business 
Administration to establish regulations requiring contracting 
officers to consider the past performance of a joint venture, 
when evaluating an offer on a prime contract presented by the 
small business concern that participated in the joint venture. 
The small business concern must specify its own duties and 
responsibilities independent of its joint venture partner.

Section 3. Past performance ratings of first-tier small business 
        subcontractors

    This section amends section 8(d)(17) of the Small Business 
Act to include a provision requiring the Small Business 
Administration to establish regulations requiring contracting 
officers to consider the subcontractor past performance of a 
small business that participated as a first-tier subcontractor 
when evaluating an offer on a prime contract by the small 
business concern. The prime contractor shall, at the request of 
the first-tier small business subcontractor, submit a record of 
past performance to either the agency or the small business 
concern.

Section 4. Rulemaking

    This section requires the Small Business Administration to 
issue rules pertaining to this Act within 120 days of enactment 
of this Act and the Federal Acquisition Regulation to be 
amended within 120 days of the Small Business Administration's 
issuance of its rules.

                VII. Congressional Budget Cost Estimate

    At the time H.R. 5146 was reported to the House, the 
Congressional Budget Office had not provided a cost estimate.

                        VIII. Unfunded Mandates

    H.R. 5146 contains no intergovernmental or private sector 
mandates as defined in the Unfunded Mandates Reform Act, Public 
Law No. 104-4, and would impose no costs on state, local, or 
tribal governments.

 IX. New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House, the Committee provides the following opinion and 
estimate with respect to new budget authority, entitlement 
authority, and tax expenditures. While the Committee has not 
received an estimate of new budget authority contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to Sec. 402 of the Congressional Budget 
Act of 1974, the Committee does not believe that there will be 
any additional costs attributable to this legislation. H.R. 
5146 does not direct new spending, but instead reallocates 
funding independently authorized and appropriated.

                         X. Oversight Findings

    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House, the oversight findings and recommendations of the 
Committee on Small Business with respect to the subject matter 
contained in H.R. 5146 are incorporated into the descriptive 
portions of this report.

               XI. Statement of Constitutional Authority

    Pursuant to clause 7 of rule XII of the Rules of the House, 
the Committee finds the authority for this legislation in Art. 
I, Sec. 8, cl. 1.

                 XII. Congressional Accountability Act

    H.R. 5146 does not relate to the terms and conditions of 
employment or access to public services or accommodations 
within the meaning of Sec. 102(b)(3) of Public Law 104-1.

             XIII. Federal Advisory Committee Act Statement

    H.R. 5146 does not establish or authorize the establishment 
of any new advisory committees as that term is defined in the 
Federal Advisory Committee Act, 5 U.S.C. App.2.

                     XIV. Statement of No Earmarks

    Pursuant to clause 9 of rule XXI, H.R. 5146 does not 
contain any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in subsections (d), (e), or 
(f) of clause 9 of rule XXI of the Rules of the House.

            XV. Statement of Duplication of Federal Programs

    Pursuant to clause 3 of rule XIII of the Rules of the 
House, no provision of H.R. 5146 establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the United States Government Accountability Office 
pursuant to Sec. 21 of Pub. L. No. 111-139, or a program 
related to a program identified in the most recent catalog of 
federal domestic assistance.

                XVI. Disclosure of Directed Rulemakings

    Pursuant to clause 3 of rule XIII of the Rules of the 
House, H.R. 5146 would require the Small Business 
Administration to issue rules to carry out this Act within 120 
days of enactment of this Act.

                 XVII. Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
    The objective of H.R. 5146 is to allow past performance 
information on joint ventures and subcontractors to be accepted 
government-wide and considered when evaluating the past 
performance of a small business seeking to perform as a prime 
contractor.

      XVIII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause (E) of rule XIII of the Rules of 
the House, changes in existing law made by the bill, as 
reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                           SMALL BUSINESS ACT




           *       *       *       *       *       *       *
  Sec. 8. (a)(1) It shall be the duty of the Administration and 
it is hereby empowered, whenever it determines such action is 
necessary or appropriate--
          (A) to enter into contracts with the United States 
        Government and any department, agency, or officer 
        thereof having procurement powers obligating the 
        Administration to furnish articles, equipment, 
        supplies, services, or materials to the Government or 
        to perform construction work for the Government. In any 
        case in which the Administration certifies to any 
        officer of the Government having procurement powers 
        that the Administration is competent and responsible to 
        perform any specific Government procurement contract to 
        be let by any such officer, such officer shall be 
        authorized in his discretion to let such procurement 
        contract to the Administration upon such terms and 
        conditions as may be agreed upon between the 
        Administration and the procurement officer. Whenever 
        the Administration and such procurement officer fail to 
        agree, the matter shall be submitted for determination 
        to the Secretary or the head of the appropriate 
        department or agency by the Administrator. Not later 
        than 5 days from the date the Administration is 
        notified of a procurement officer's adverse decision, 
        the Administration may notify the contracting officer 
        of the intent to appeal such adverse decision, and 
        within 15 days of such date the Administrator shall 
        file a written request for a reconsideration of the 
        adverse decision with the Secretary of the department 
        or agency head. For the purposes of this subparagraph, 
        a procurement officer's adverse decision includes a 
        decision not to make available for award pursuant to 
        this subsection a particular procurement requirement or 
        the failure to agree on the terms and conditions of a 
        contract to be awarded noncompetitively under the 
        authority of this subsection. Upon receipt of the 
        notice of intent to appeal, the Secretary of the 
        department or the agency head shall suspend further 
        action regarding the procurement until a written 
        decision on the Administrator's request for 
        reconsideration has been issued by such Secretary or 
        agency head, unless such officer makes a written 
        determination that urgent and compelling circumstances 
        which significantly affect interests of the United 
        States will not permit waiting for a reconsideration of 
        the adverse decision. If the Administrator's request 
        for reconsideration is denied, the Secretary of the 
        department or agency head shall specify the reasons why 
        the selected firm was determined to be incapable to 
        perform the procurement requirement, and the findings 
        supporting such determination, which shall be made a 
        part of the contract file for the requirement. A 
        contract may not be awarded under this subsection if 
        the award of the contract would result in a cost to the 
        awarding agency which exceeds a fair market price;
          (B) to arrange for the performance of such 
        procurement contracts by negotiating or otherwise 
        letting subcontracts to socially and economically 
        disadvantaged small business concerns for construction 
        work, services, or the manufacture, supply, assembly of 
        such articles, equipment, supplies, materials, or parts 
        thereof, or servicing or processing in connection 
        therewith, or such management services as may be 
        necessary to enable the Administration to perform such 
        contracts;
                  (C) to make an award to a small business 
                concern owned and controlled by socially and 
                economically disadvantaged individuals which 
                has completed its period of Program 
                Participation as prescribed by section 
                7(j)(15), if--
                          (i) the contract will be awarded as a 
                        result of an offer (including price) 
                        submitted in response to a published 
                        solicitation relating to a competition 
                        conducted pursuant to subparagraph (D); 
                        and
                          (ii) the prospective contract awardee 
                        was a Program Participant eligible for 
                        award of the contract on the date 
                        specified for receipt of offers 
                        contained in the contract solicitation; 
                        and
          (D)(i) A contract opportunity offered for award 
        pursuant to this subsection shall be awarded on the 
        basis of competition restricted to eligible Program 
        Participants if--
                  (I) there is a reasonable expectation that at 
                least two eligible Program Participants will 
                submit offers and that award can be made at a 
                fair market price, and
                  (II) the anticipated award price of the 
                contract (including options) will exceed 
                $5,000,000 in the case of a contract 
                opportunity assigned a standard industrial 
                classification code for manufacturing and 
                $3,000,000 (including options) in the case of 
                all other contract opportunities.
          (ii) The Associate Administrator for Minority Small 
        Business and Capital Ownership Development, on a 
        nondelegable basis, is authorized to approve a request 
        from an agency to award a contract opportunity under 
        this subsection on the basis of a competition 
        restricted to eligible Program Participants even if the 
        anticipated award price is not expected to exceed the 
        dollar amounts specified in clause (i)(II). Such 
        approvals shall be granted only on a limited basis.
  (2) Notwithstanding subsections (a) and (c) of the first 
section of the Act entitled ``An Act requiring contracts for 
the construction, alteration, and repair of any public building 
or public work of the United States to be accompanied by a 
performance bond protecting the United States and by additional 
bond for the protection of persons furnishing material and 
labor for the construction, alteration, or repair of said 
public buildings or public work,'' approved August 24, 1935 (49 
Stat. 793), no small business concern shall be required to 
provide any amount of any bond as a condition or receiving any 
subcontract under this subsection if the Administrator 
determines that such amount is inappropriate for such concern 
in performing such contract: Provided, That the Administrator 
shall exercise the authority granted by the paragraph only if--
          (A) the Administration takes such measures as it 
        deems appropriate for the protection of persons 
        furnishing materials and labor to a small business 
        receiving any benefit pursuant to this paragraph;
          (B) the Administration assists, insofar as 
        practicable, a small business receiving the benefits of 
        this paragraph to develop, within a reasonable period 
        of time, such financial and other capability as may be 
        needed to obtain such bonds as the Administration may 
        subsequently require for the successful completion of 
        any program conducted under the authority of this 
        subsection;
          (C) the Administration finds that such small business 
        is unable to obtain the requisite bond or bonds from a 
        surety and that no surety is willing to issue such bond 
        or bonds subject to the guarantee provisions of Title 
        IV of the Small Business Investment Act of 1958; and
          (D) that small business is determined to be a start-
        up concern and such concern has not been participating 
        in any program conducted under the authority of this 
        subsection for a period exceeding one year.
The authority to waive bonds provided in this paragraph (2) may 
not be exercised after September 30, 1988.
  (3)(A) Any Program Participant selected by the Administration 
to perform a contract to be let noncompetitively pursuant to 
this subsection shall, when practicable, participate in any 
negotiation of the terms and conditions of such contract.
  (B)(i) For purposes of paragraph (1) a ``fair market price'' 
shall be determined by the agency offering the procurement 
requirement to the Administration, in accordance with clauses 
(ii) and (iii).
  (ii) The estimate of a current fair market price for a new 
procurement requirement, or a requirement that does not have a 
satisfactory procurement history, shall be derived from a price 
or cost analysis. Such analysis may take into account 
prevailing market conditions, commercial prices for similar 
products or services, or data obtained from any other agency. 
Such analysis shall consider such cost or pricing data as may 
be timely submitted by the Administration.
  (iii) The estimate of a current fair market price for a 
procurement requirement that has a satisfactory procurement 
history shall be based on recent award prices adjusted to 
insure comparability. Such adjustments shall take into account 
differences in quantities, performance times, plans, 
specifications, transportation costs, packaging and packing 
costs, labor and materials costs, overhead costs, and any other 
additional costs which may be deemed appropriate.
  (C) An agency offering a procurement requirement for 
potential award pursuant to this subsection shall, upon the 
request of the Administration, promptly submit to the 
Administration a written statement detailing the method used by 
the agency to estimate the current fair market price for such 
contract, identifying the information, studies, analyses, and 
other data used by such agency. The agency's estimate of the 
current fair market price (and any supporting data furnished to 
the Administration) shall not be disclosed to any potential 
offeror (other than the Administration).
  (D) A small business concern selected by the Administration 
to perform or negotiate a contract to be let pursuant to this 
subsection may request the Administration to protest the 
agency's estimate of the fair market price for such contract 
pursuant to paragraph (1)(A).
  (4)(A) For purposes of this section, the term ``socially and 
economically disadvantaged small business concern'' means any 
small business concern which meets the requirements of 
subparagraph (B) and--
          (i) which is at least 51 per centum unconditionally 
        owned by--
                  (I) one or more socially and economically 
                disadvantaged individuals,
                  (II) an economically disadvantaged Indian 
                tribe (or a wholly owned business entity of 
                such tribe), or
                  (III) an economically disadvantaged Native 
                Hawaiian organization, or
          (ii) in the case of any publicly owned business, at 
        least 51 per centum of the stock of which is 
        unconditionally owned by--
                  (I) one or more socially and economically 
                disadvantaged individuals,
                  (II) an economically disadvantaged Indian 
                tribe (or a wholly owned business entity of 
                such tribe), or
                  (III) an economically disadvantaged Native 
                Hawaiian organization.
  (B) A small business concern meets the requirements of this 
subparagraph if the management and daily business operations of 
such small business concern are controlled by one or more--
          (i) socially and economically disadvantaged 
        individuals described in subparagraph (A)(i)(I) or 
        subparagraph (A)(ii)(I),
          (ii) members of an economically disadvantaged Indian 
        tribe described in subparagraph (A)(i)(II) or 
        subparagraph (A)(ii)(II), or
          (iii) Native Hawaiian organizations described in 
        subparagraph (A)(i)(III) or subparagraph (A)(ii)(III).
  (C) Each Program Participant shall certify, on an annual 
basis, that it meets the requirements of this paragraph 
regarding ownership and control.
  (5) Socially disadvantaged individuals are those who have 
been subjected to racial or ethnic prejudice or cultural bias 
because of their identity as a member of a group without regard 
to their individual qualities.
  (6)(A) Economically disadvantaged individuals are those 
socially disadvantaged individuals whose ability to compete in 
the free enterprise system has been impaired due to diminished 
capital and credit opportunities as compared to others in the 
same business area who are not socially disadvantaged. In 
determining the degree of diminished credit and capital 
opportunities the Administration shall consider, but not be 
limited to, the assets and net worth of such socially 
disadvantaged individual. In determining the economic 
disadvantage of an Indian tribe, the Administration shall 
consider, where available, information such as the following: 
the per capita income of members of the tribe excluding 
judgment awards, the percentage of the local Indian population 
below the poverty level, and the tribe's access to capital 
markets.
  (B) Each Program Participant shall annually submit to the 
Administration--
          (i) a personal financial statement for each 
        disadvantaged owner;
          (ii) a record of all payments made by the Program 
        Participant to each of its disadvantaged owners or to 
        any person or entity affiliated with such owners; and
          (iii) such other information as the Administration 
        may deem necessary to make the determinations required 
        by this paragraph.
  (C)(i) Whenever, on the basis of information provided by a 
Program Participant pursuant to subparagraph (B) or otherwise, 
the Administration has reason to believe that the standards to 
establish economic disadvantage pursuant to subparagraph (A) 
have not been met, the Administration shall conduct a review to 
determine whether such Program Participant and its 
disadvantaged owners continue to be impaired in their ability 
to compete in the free enterprise system due to diminished 
capital and credit opportunities when compared to other 
concerns in the same business area, which are not socially 
disadvantaged.
  (ii) If the Administration determines, pursuant to such 
review, that a Program Participant and its disadvantaged owners 
are no longer economically disadvantaged for the purpose of 
receiving assistance under this subsection, the Program 
Participant shall be graduated pursuant to section 7(j)(10)(G) 
subject to the right to a hearing as provided for under 
paragraph (9).
  (D)(i) Whenever, on the basis of information provided by a 
Program Participant pursuant to subparagraph (B) or otherwise, 
the Administration has reason to believe that the amount of 
funds or other assets withdrawn from a Program Participant for 
the personal benefit of its disadvantaged owners or any person 
or entity affiliated with such owners may have been unduly 
excessive, the Administration shall conduct a review to 
determine whether such withdrawal of funds or other assets was 
detrimental to the achievement of the targets, objectives, and 
goals contained in such Program Participant's business plan.
  (ii) If the Administration determines, pursuant to such 
review, that funds or other assets have been withdrawn to the 
detriment of the Program Participant's business, the 
Administration shall--
          (I) initiate a proceeding to terminate the Program 
        Participant pursuant to section 7(j)(10)(F), subject to 
        the right to a hearing under paragraph (9); or
          (II) require an appropriate reinvestment of funds or 
        other assets and such other steps as the Administration 
        may deem necessary to ensure the protection of the 
        concern.
  (E) Whenever the Administration computes personal net worth 
for any purpose under this paragraph, it shall exclude from 
such computation--
          (i) the value of investments that disadvantaged 
        owners have in their concerns, except that such value 
        shall be taken into account under this paragraph when 
        comparing such concerns to other concerns in the same 
        business area that are owned by other than socially 
        disadvantaged persons;
          (ii) the equity that disadvantaged owners have in 
        their primary personal residences, except that any 
        portion of such equity that is attributable to unduly 
        excessive withdrawals from a Program Participant or a 
        concern applying for program participation shall be 
        taken into account.
  (7)(A) No small business concern shall be deemed eligible for 
any assistance pursuant to this subsection unless the 
Administration determines that with contract, financial, 
technical, and management support the small business concern 
will be able to perform contracts which may be awarded to such 
concern under paragraph (1)(C) and has reasonable prospects for 
success in competing in the private sector.
  (B) Limitations established by the Administration in its 
regulations and procedures restricting the award of contracts 
pursuant to this subsection to a limited number of standard 
industrial classification codes in an approved business plan 
shall not be applied in a manner that inhibits the logical 
business progression by a participating small business concern 
into areas of industrial endeavor where such concern has the 
potential for success.
  (8) All determinations made pursuant to paragraph (5) with 
respect to whether a group has been subjected to prejudice or 
bias shall be made by the Administrator after consultation with 
the Associate Administrator for Minority Small Business and 
Capital Ownership Development. All other determinations made 
pursuant to paragraphs (4), (5), (6), and (7) shall be made by 
the Associate Administrator for Minority Small Business and 
Capital Ownership Development under the supervision of, and 
responsible to, the Administrator.
  (9)(A) Subject to the provisions of subparagraph (E), the 
Administration, prior to taking any action described in 
subparagraph (B), shall provide the small business concern that 
is the subject of such action, an opportunity for a hearing on 
the record, in accordance with chapter 5 of title 5, United 
States Code.
  (B) The actions referred to in subparagraph (A) are--
          (i) denial of program admission based upon a negative 
        determination pursuant to paragraph (4), (5), or (6);
          (ii) a termination pursuant to section 7(j)(10)(F);
          (iii) a graduation pursuant to section 7(j)(10)(G); 
        and
          (iv) the denial of a request to issue a waiver 
        pursuant to paragraph (21)(B).
  (C) The Administration's proposed action, in any proceeding 
conducted under the authority of this paragraph, shall be 
sustained unless it is found to be arbitrary, capricious, or 
contrary to law.
  (D) A decision rendered pursuant to this paragraph shall be 
the final decision of the Administration and shall be binding 
upon the Administration and those within its employ.
  (E) The adjudicator selected to preside over a proceeding 
conducted under the authority of this paragraph shall decline 
to accept jurisdiction over any matter that--
          (i) does not, on its face, allege facts that, if 
        proven to be true, would warrant reversal or 
        modification of the Administration's position;
          (ii) is untimely filed;
          (iii) is not filed in accordance with the rules of 
        procedure governing such proceedings; or
          (iv) has been decided by or is the subject of an 
        adjudication before a court of competent jurisdiction 
        over such matters.
  (F) Proceedings conducted pursuant to the authority of this 
paragraph shall be completed and a decision rendered, insofar 
as practicable, within ninety days after a petition for a 
hearing is filed with the adjudicating office.
  (10) The Administration shall develop and implement an 
outreach program to inform and recruit small business concerns 
to apply for eligibility for assistance under this subsection. 
Such program shall make a sustained and substantial effort to 
solicit applications for certification from small business 
concerns located in areas of concentrated unemployment or 
underemployment or within labor surplus areas and within States 
having relatively few Program Participants and from small 
disadvantaged business concerns in industry categories that 
have not substantially participated in the award of contracts 
let under the authority of this subsection.
  (11) To the maximum extent practicable, construction 
subcontracts awarded by the Administration pursuant to this 
subsection shall be awarded within the county or State where 
the work is to be performed.
  (12)(A) The Administration shall require each concern 
eligible to receive subcontracts pursuant to this subsection to 
annually prepare and submit to the Administration a capability 
statement. Such statement shall briefly describe such concern's 
various contract performance capabilities and shall contain the 
name and telephone number of the Business Opportunity 
Specialist assigned such concern. The Administration shall 
separate such statements by those primarily dependent upon 
local contract support and those primarily requiring a national 
marketing effort. Statements primarily dependent upon local 
contract support shall be disseminated to appropriate buying 
activities in the marketing area of the concern. The remaining 
statements shall be disseminated to the Directors of Small and 
Disadvantaged Business Utilization for the appropriate agencies 
who shall further distribute such statements to buying 
activities with such agencies that may purchase the types of 
items or services described on the capability statements.
  (B) Contracting activities receiving capability statements 
shall, within 60 days after receipt, contact the relevant 
Business Opportunity Specialist to indicate the number, type, 
and approximate dollar value of contract opportunities that 
such activities may be awarding over the succeeding 12-month 
period and which may be appropriate to consider for award to 
those concerns for which it has received capability statements.
  (C) Each executive agency reporting to the Federal 
Procurement Data System contract actions with an aggregate 
value in excess of $50,000,000 in fiscal year 1988, or in any 
succeeding fiscal year, shall prepare a forecast of expected 
contract opportunities or classes of contract opportunities for 
the next and succeeding fiscal years that small business 
concerns, including those owned and controlled by socially and 
economically disadvantaged individuals, are capable of 
performing. Such forecast shall be periodically revised during 
such year. To the extent such information is available, the 
agency forecasts shall specify:
          (i) The approximate number of individual contract 
        opportunities (and the number of opportunities within a 
        class).
          (ii) The approximate dollar value, or range of dollar 
        values, for each contract opportunity or class of 
        contract opportunities.
          (iii) The anticipated time (by fiscal year quarter) 
        for the issuance of a procurement request.
          (iv) The activity responsible for the award and 
        administration of the contract.
  (D) The head of each executive agency subject to the 
provisions of subparagraph (C) shall within 10 days of 
completion furnish such forecasts to--
          (i) the Director of the Office of Small and 
        Disadvantaged Business Utilization established pursuant 
        to section 15(k) for such agency; and
          (ii) the Administrator.
  (E) The information reported pursuant to subparagraph (D) may 
be limited to classes of items and services for which there are 
substantial annual purchases.
  (F) Such forecasts shall be available to small business 
concerns.
  (13) For purposes of this subsection, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other 
organized group or community of Indians, including any Alaska 
Native village or regional or village corporation (within the 
meaning of the Alaska Native Claims Settlement Act) which--
          (A) is recognized as eligible for the special 
        programs and services provided by the United States to 
        Indians because of their status as Indians, or
          (B) is recognized as such by the State in which such 
        tribe, band, nation, group, or community resides.
          (14) Limitations on subcontracting.--A concern may 
        not be awarded a contract under this subsection as a 
        small business concern unless the concern agrees to 
        satisfy the requirements of section 46.
  (15) For purposes of this subsection, the term ``Native 
Hawaiian Organization'' means any community service 
organization serving Native Hawaiians in the State of Hawaii 
which--
          (A) is a nonprofit corporation that has filed 
        articles of incorporation with the director (or the 
        designee thereof) of the Hawaii Department of Commerce 
        and Consumer Affairs, or any successor agency,
          (B) is controlled by Native Hawaiians, and
          (C) whose business activities will principally 
        benefit such Native Hawaiians.
  (16)(A) The Administration shall award sole source contracts 
under this section to any small business concern recommended by 
the procuring agency offering the contract opportunity if--
          (i) the Program Participant is determined to be a 
        responsible contractor with respect to performance of 
        such contract opportunity;
          (ii) the award of such contract would be consistent 
        with the Program Participant's business plan; and
          (iii) the award of the contract would not result in 
        the Program Participant exceeding the requirements 
        established by section 7(j)(10)(I).
  (B) To the maximum extent practicable, the Administration 
shall promote the equitable geographic distribution of sole 
source contracts awarded pursuant to this subsection.
  (17)(A) An otherwise responsible business concern that is in 
compliance with the requirements of subparagraph (B) shall not 
be denied the opportunity to submit and have considered its 
offer for any procurement contract, which contract has as its 
principal purpose the supply of a product to be let pursuant to 
this subsection, subsection (m), section 15(a), section 31, or 
section 36, solely because such concern is other than the 
actual manufacturer or processor of the product to be supplied 
under the contract.
  (B) To be in compliance with the requirements referred to in 
subparagraph (A), such a business concern shall--
          (i) be primarily engaged in the wholesale or retail 
        trade;
          (ii) be a small business concern under the numerical 
        size standard for the Standard Industrial 
        Classification Code assigned to the contract 
        solicitation on which the offer is being made;
          (iii) be a regular dealer, as defined pursuant to 
        section 35(a) of title 41, United States Code 
        (popularly referred to as the Walsh-Healey Public 
        Contracts Act), in the product to be offered the 
        Government or be specifically exempted from such 
        section by section 7(j)(13)(C); and
          (iv) represent that it will supply the product of a 
        domestic small business manufacturer or processor, 
        unless a waiver of such requirement is granted--
                  (I) by the Administrator, after reviewing a 
                determination by the contracting officer that 
                no small business manufacturer or processor can 
                reasonably be expected to offer a product 
                meeting the specifications (including period 
                for performance) required of an offeror by the 
                solicitation; or
                  (II) by the Administrator for a product (or 
                class of products), after determining that no 
                small business manufacturer or processor is 
                available to participate in the Federal 
                procurement market.
          (C) Limitation.--This paragraph shall not apply to a 
        contract that has as its principal purpose the 
        acquisition of services or construction.
  (18)(A) No person within the employ of the Administration 
shall, during the term of such employment and for a period of 
two years after such employment has been terminated, engage in 
any activity or transaction specified in subparagraph (B) with 
respect to any Program Participant during such person's term of 
employment, if such person participated personally (either 
directly or indirectly) in decision-making responsibilities 
relating to such Program Participant or with respect to the 
administration of any assistance provided to Program 
Participants generally under this subsection, section 7(j)(10), 
or section 7(a)(20).
  (B) The activities and transactions prohibited by 
subparagraph (A) include--
          (i) the buying, selling, or receiving (except by 
        inheritance) of any legal or beneficial ownership of 
        stock or any other ownership interest or the right to 
        acquire any such interest;
          (ii) the entering into or execution of any written or 
        oral agreement (whether or not legally enforceable) to 
        purchase or otherwise obtain any right or interest 
        described in clause (i); or
          (iii) the receipt of any other benefit or right that 
        may be an incident of ownership.
  (C)(i) The employees designated in clause (ii) shall annually 
submit a written certification to the Administration regarding 
compliance with the requirements of this paragraph.
  (ii) The employees referred to in clause (i) are--
          (I) regional administrators;
          (II) district directors;
          (III) the Associate Administrator for Minority Small 
        Business and Capital Ownership Development;
          (IV) employees whose principal duties relate to the 
        award of contracts or the provision of other assistance 
        pursuant to this subsection or section 7(j)(10); and
          (V) such other employees as the Administrator may 
        deem appropriate.
  (iii) Any present or former employee of the Administration 
who violates this paragraph shall be subject to a civil 
penalty, assessed by the Attorney General, that shall not 
exceed 300 per centum of the maximum amount of gain such 
employee realized or could have realized as a result of 
engaging in those activities and transactions prescribed by 
subparagraph (B).
  (iv) In addition to any other remedy or sanction provided for 
under law or regulation, any person who falsely certifies 
pursuant to clause (i) shall be subject to a civil penalty 
under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 
3801-3812).
  (19)(A) Any employee of the Administration who has authority 
to take, direct others to take, recommend, or approve any 
action with respect to any program or activity conducted 
pursuant to this subsection or section 7(j), shall not, with 
respect to any such action, exercise or threaten to exercise 
such authority on the basis of the political activity or 
affiliation of any party. Employees of the Administration shall 
expeditiously report to the Inspector General of the 
Administration any such action for which such employee's 
participation has been solicitated or directed.
  (B) Any employee who willfully and knowingly violates 
subparagraph (A) shall be subject to disciplinary action, which 
may consist of separation from service, reduction in grade, 
suspension, or reprimand.
  (C) Subparagraph (A) shall not apply to any action taken as a 
penalty or other enforcement of a violation of any law, rule, 
or regulation prohibiting or restricting political activity.
  (D) The prohibitions of subparagraph (A), and remedial 
measures provided for under subparagraphs (B) and (C) with 
regard to such prohibitions, shall be in addition to, and not 
in lieu of, any other prohibitions, measures or liabilities 
that may arise under any other provision of law.
  (20)(A) Small business concerns participating in the Program 
under section 7(j)(10) and eligible to receive contracts 
pursuant to this section shall semiannually report to their 
assigned Business Opportunity Specialist the following:
          (i) A listing of any agents, representatives, 
        attorneys, accountants, consultants, and other parties 
        (other than employees) receiving compensation to assist 
        in obtaining a Federal contract for such Program 
        Participant.
          (ii) The amount of compensation received by any 
        person listed under clause (i) during the relevant 
        reporting period and a description of the activities 
        performed in return for such compensation.
  (B) The Business Opportunity Specialist shall promptly review 
and forward such report to the Associate Administrator for 
Minority Small Business and Capital Ownership Development. Any 
report that raises a suspicion of improper activity shall be 
reported immediately to the Inspector General of the 
Administration.
  (C) The failure to submit a report pursuant to the 
requirements of this subsection and applicable regulations 
shall be considered ``good cause'' for the initiation of a 
termination proceeding pursuant to section 7(j)(10)(F).
  (21)(A) Subject to the provisions of subparagraph (B), a 
contract (including options) awarded pursuant to this 
subsection shall be performed by the concern that initially 
received such contract. Notwithstanding the provisions of the 
preceding sentence, if the owner or owners upon whom 
eligibility was based relinquish ownership or control of such 
concern, or enter into any agreement to relinquish such 
ownership or control, such contract or option shall be 
terminated for the convenience of the Government, except that 
no repurchase costs or other damages may be assessed against 
such concerns due solely to the provisions of this 
subparagraph.
  (B) The Administrator may, on a nondelegable basis, waive the 
requirements of subparagraph (A) only if one of the following 
conditions exist:
          (i) When it is necessary for the owners of the 
        concern to surrender partial control of such concern on 
        a temporary basis in order to obtain equity financing.
          (ii) The head of the contracting agency for which the 
        contract is being performed certifies that termination 
        of the contract would severely impair attainment of the 
        agency's program objectives or missions;
          (iii) Ownership and control of the concern that is 
        performing the contract will pass to another small 
        business concern that is a program participant, but 
        only if the acquiring firm would otherwise be eligible 
        to receive the award directly pursuant to subsection 
        (a);
          (iv) The individuals upon whom eligibility was based 
        are no longer able to exercise control of the concern 
        due to incapacity or death; or
          (v) When, in order to raise equity capital, it is 
        necessary for the disadvantaged owners of the concern 
        to relinquish ownership of a majority of the voting 
        stock of such concern, but only if--
                  (I) such concern has exited the Capital 
                Ownership Development Program;
                  (II) the disadvantaged owners will maintain 
                ownership of the largest single outstanding 
                block of voting stock (including stock held by 
                affiliated parties); and
                  (III) the disadvantaged owners will maintain 
                control of daily business operations.
          (C) The Administrator may waive the requirements of 
        subparagraph (A) if--
                  (i) in the case of subparagraph (B) (i), (ii) 
                and (iv), he is requested to do so prior to the 
                actual relinquishment of ownership or control; 
                and
                  (ii) in the case of subparagraph (B)(iii), he 
                is requested to do so as soon as possible after 
                the incapacity or death occurs.
  (D) Concerns performing contracts awarded pursuant to this 
subsection shall be required to notify the Administration 
immediately upon entering an agreement (either oral or in 
writing) to transfer all or part of its stock or other 
ownership interest to any other party.
  (E) Notwithstanding any other provision of law, for the 
purposes of determining ownership and control of a concern 
under this section, any potential ownership interests held by 
investment companies licensed under the Small Business 
Investment Act of 1958 shall be treated in the same manner as 
interests held by the individuals upon whom eligibility is 
based.
  (b) It shall also be the duty of the Administration and it is 
hereby empowered, whenever it determines such action is 
necessary--
          (1)(A) to provide--
                  (i) technical, managerial, and informational 
                aids to small business concerns--
                          (I) by advising and counseling on 
                        matters in connection with Government 
                        procurement and policies, principles, 
                        and practices of good management;
                          (II) by cooperating and advising 
                        with--
                                  (aa) voluntary business, 
                                professional, educational, and 
                                other nonprofit organizations, 
                                associations, and institutions 
                                (except that the Administration 
                                shall take such actions as it 
                                determines necessary to ensure 
                                that such cooperation does not 
                                constitute or imply an 
                                endorsement by the 
                                Administration of the 
                                organization or its products or 
                                services, and shall ensure that 
                                it receives appropriate 
                                recognition in all printed 
                                materials); and
                                  (bb) other Federal and State 
                                agencies;
                          (III) by maintaining a clearinghouse 
                        for information on managing, financing, 
                        and operating small business 
                        enterprises; and
                          (IV) by disseminating such 
                        information, including through 
                        recognition events, and by other 
                        activities that the Administration 
                        determines to be appropriate; and
                  (ii) through cooperation with a profit-making 
                concern (referred to in this paragraph as a 
                ``cosponsor''), training, information, and 
                education to small business concerns, except 
                that the Administration shall--
                          (I) take such actions as it 
                        determines to be appropriate to ensure 
                        that--
                                  (aa) the Administration 
                                receives appropriate 
                                recognition and publicity;
                                  (bb) the cooperation does not 
                                constitute or imply an 
                                endorsement by the 
                                Administration of any product 
                                or service of the cosponsor;
                                  (cc) unnecessary promotion of 
                                the products or services of the 
                                cosponsor is avoided; and
                                  (dd) utilization of any one 
                                cosponsor in a marketing area 
                                is minimized; and
                          (II) develop an agreement, executed 
                        on behalf of the Administration by an 
                        employee of the Administration in 
                        Washington, the District of Columbia, 
                        that provides, at a minimum, that--
                                  (aa) any printed material to 
                                announce the cosponsorship or 
                                to be distributed at the 
                                cosponsored activity, shall be 
                                approved in advance by the 
                                Administration;
                                  (bb) the terms and conditions 
                                of the cooperation shall be 
                                specified;
                                  (cc) only minimal charges may 
                                be imposed on any small 
                                business concern to cover the 
                                direct costs of providing the 
                                assistance;
                                  (dd) the Administration may 
                                provide to the cosponsorship 
                                mailing labels, but not lists 
                                of names and addresses of small 
                                business concerns compiled by 
                                the Administration;
                                  (ee) all printed materials 
                                containing the names of both 
                                the Administration and the 
                                cosponsor shall include a 
                                prominent disclaimer that the 
                                cooperation does not constitute 
                                or imply an endorsement by the 
                                Administration of any product 
                                or service of the cosponsor; 
                                and
                                  (ff) the Administration shall 
                                ensure that it receives 
                                appropriate recognition in all 
                                cosponsorship printed 
                                materials.
          (B) To establish, conduct, and publicize, and to 
        recruit, select, and train volunteers for (and to enter 
        into contracts, grants, or cooperative agreements 
        therefor), volunteer programs, including a Service 
        Corps of Retired Executives (SCORE) and an Active Corps 
        of Executive (ACE) for the purposes of section 
        8(b)(1)(A) of this Act. To facilitate the 
        implementation of such volunteer programs the 
        Administration shall maintain at its headquarters and 
        pay the salaries, benefits, and expenses of a volunteer 
        and professional staff to manage and oversee the 
        program. Any such payments made pursuant to this 
        subparagraph shall be effective only to such extent or 
        in such amounts as are provided in advance in 
        appropriation Acts. Notwithstanding any other provision 
        of law, SCORE may solicit cash and in-kind 
        contributions from the private sector to be used to 
        carry out its functions under this Act, and may use 
        payments made by the Administration pursuant to this 
        subparagraph for such solicitation and the management 
        of the contributions received.
          (C) To allow any individual or group of persons 
        participating with it in furtherance of the purposes of 
        subparagraphs (A) and (B) to use the Administration's 
        office facilities and related material and services as 
        the Administration deems appropriate, including 
        clerical and stenographic service:
                  (i) such volunteers, while carrying out 
                activities under section 8(b)(1) of this Act 
                shall be deemed Federal employees for the 
                purposes of the Federal tort claims provisions 
                in title 28, United States Code; and for the 
                purposes of subchapter I of chapter 81 of title 
                5, United States Code (relative to compensation 
                to Federal employees for work injuries) shall 
                be deemed civil employees of the United States 
                within the meaning of the term ``employee'' as 
                defined in section 8101 of title 5, United 
                States Code, and the provisions of that 
                subchapter shall apply except that in computing 
                compensation benefits for disability or death, 
                the monthly pay of a volunteer shall be deemed 
                that received under the entrance salary for a 
                grade GS-11 employee:
                  (ii) the Administrator is authorized to 
                reimburse such volunteers for all necessary 
                out-of-pocket expenses incident to their 
                provision of services under this Act, or in 
                connection with attendance at meetings 
                sponsored by the Administration, or for the 
                cost of malpractice insurance, as the 
                Administrator shall determine, in accordance 
                with regulations which he or she shall 
                prescribe, and, while they are carrying out 
                such activities away from their homes or 
                regular places of business, for travel expenses 
                (including per diem in lieu of subsistence) as 
                authorized by section 5703 of title 5, United 
                States Code, for individuals serving without 
                pay; and
                  (iii) such volunteers shall in no way provide 
                services to a client of such Administration 
                with a delinquent loan outstanding, except upon 
                a specific request signed by such client for 
                assistance in connection with such matter.
          (D) Notwithstanding any other provision of law, no 
        payment for supportive services or reimbursement of 
        out-of-pocket expenses made to persons serving pursuant 
        to section 8(b)(1) of this Act shall be subject to any 
        tax or charge or be treated as wages or compensation 
        for the purposes of unemployment, disability, 
        retirement, public assistance, or similar benefit 
        payments, or minimum wage laws.
          (E) In carrying out its functions under subparagraph 
        (A), to make grants (including contracts and 
        cooperative agreements) to any public or private 
        institution of higher education for the establishment 
        and operation of a small business institute, which 
        shall be used to provide business counseling and 
        assistance to small business concerns through the 
        activities of students enrolled at the institution, 
        which students shall be entitled to receive educational 
        credits for their activities.
          (F) Notwithstanding any other provision of law and 
        pursuant to regulations which the Administrator shall 
        provide, counsel may be employed and counsel fees, 
        court costs, bail, and other expenses incidental to the 
        defense of volunteers may be paid in judicial or 
        Administrative proceedings arising directly out of the 
        performance of activities pursuant to section 8(b)(1) 
        of this Act, as amended (15 U.S.C. 637(b)(1)) to which 
        volunteers have been made parties.
          (G) In carrying out its functions under this Act and 
        to carry out the activities authorized by title IV of 
        the Women's Business Ownership Act of 1988, the 
        Administration is authorized to accept, in the name of 
        the Administration, and employ or dispose of in 
        furtherance of the purposes of this Act, any money or 
        property, real, personal, or mixed, tangible, or 
        intangible, received by gift, devise, bequest, or 
        otherwise; and, further, to accept gratuitous services 
        and facilities.
          (2) to make a complete inventory of all productive 
        facilities of small-business concerns or to arrange for 
        such inventory to be made by any other governmental 
        agency which has the facilities. In making any such 
        inventory, the appropriate agencies in the several 
        States may be requested to furnish an inventory of the 
        productive facilities of small-business concerns in 
        each respective State if such an inventory is available 
        or in prospect;
          (3) to coordinate and to ascertain the means by which 
        the productive capacity of small-business concerns can 
        be most effectively utilized;
          (4) to consult and cooperative with officers of the 
        Government having procurement or property disposal 
        powers, in order to utilize the potential productive 
        capacity of plants operated by small-business concerns;
          (5) to obtain information as to methods and practices 
        which Government prime contractors utilize in letting 
        subcontracts and to take action to encourage the 
        letting of subcontracts by prime contractors to small-
        business concerns at prices and on conditions and terms 
        which are fair and equitable;
          (6) to determine within any industry the concerns, 
        firms, persons, corporations, partnerships, 
        cooperatives, or other business enterprises which are 
        to be designated ``small-business concerns'' for the 
        purpose of effectuating the provisions of this Act. To 
        carry out this purpose the Administrator, when 
        requested to do so, shall issue in response to each 
        such request an appropriate certificate certifying an 
        individual concern as a ``small-business concern'' in 
        accordance with the criteria expressed in this Act. Any 
        such certificate shall be subject to revocation when 
        the concern covered thereby ceases to be a ``small-
        business concern.'' Offices of the Government having 
        procurement or lending powers, or engaging in the 
        disposal of Federal property or allocating materials or 
        supplies, or promulgating regulations affecting the 
        distribution of materials or supplies, shall accept as 
        conclusive the Administration's determination as to 
        which enterprises are to be designated ``small-business 
        concerns'', as authorized and directed under this 
        paragraph;
          (7)(A) to certify to Government procurement officers, 
        and officers engaged in the sale and disposal of 
        Federal property, with respect to all elements of 
        responsibility, including, but not limited to, 
        capability, competency, capacity, credit, integrity, 
        perseverance, and tenacity, of any small business 
        concern or group of such concerns to receive and 
        perform a specific Government contract. A Government 
        procurement officer or an officer engaged in the sale 
        and disposal of Federal property may not, for any 
        reason specified in the preceding sentence, preclude 
        any small business concern or group of such concerns 
        from being awarded such contract without referring the 
        matter for a final disposition to the Administration.
          (B) if a Government procurement officer finds that an 
        otherwise qualified small business concern may be 
        ineligible due to the provisions of section 35(a) of 
        title 41, United States Code (the Walsh-Healey Public 
        Contracts Act), he shall notify the Administration in 
        writing of such finding. The Administration shall 
        review such finding and shall either dismiss it and 
        certify the small business concern to be an eligible 
        Government contractor for a specific Government 
        contract or if it concurs in the finding, forward the 
        matter to the Secretary of Labor for final disposition, 
        in which case the Administration may certify the small 
        business concern only if the Secretary of Labor finds 
        the small business concern not to be in violation.
          (C) in any case in which a small business concern or 
        group of such concerns has been certified by the 
        Administration pursuant to (A) or (B) to be a 
        responsible or eligible Government contractor as to a 
        specific Government contract, the officers of the 
        Government having procurement or property disposal 
        powers are directed to accept such certification as 
        conclusive, and shall let such Government contract to 
        such concern or group of concerns without requiring it 
        to meet any other requirement of responsibility or 
        eligibility. Notwithstanding the first sentence of this 
        subparagraph, the Administration may not establish an 
        exemption from referral or notification or refuse to 
        accept a referral or notification from a Government 
        procurement officer made pursuant to subparagraph (A) 
        or (B) of this paragraph, but nothing in this paragraph 
        shall require the processing of an application for 
        certification if the small business concern to which 
        the referral pertains declines to have the application 
        processed.
          (8) to obtain from any Federal department, 
        establishment, or agency engaged in procurement or in 
        the financing of procurement or production such reports 
        concerning the letting of contracts and subcontracts 
        and the making of loans to business concerns as it may 
        deem pertinent in carrying out its functions under this 
        Act;
          (9) to obtain from any Federal department, 
        establishment, or agency engaged in the disposal of 
        Federal property such reports concerning the 
        solicitation of bids, time of sale, or otherwise as it 
        may deem pertinent in carrying out its functions under 
        this Act;
          (10) to obtain from suppliers of materials 
        information pertaining to the method of filling orders 
        and the bases for allocating their supply, whenever it 
        appears that any small business is unable to obtain 
        materials from its normal sources;
          (11) to make studies and recommendations to the 
        appropriate Federal agencies to insure that a fair 
        proportion of the total purchases and contracts for 
        property and services for the Government be placed with 
        small-business enterprises, to insure that a fair 
        proportion of Government contacts for research and 
        development be placed with small-business concerns, to 
        insure that a fair proportion of the total sales of 
        Government property be made to small-business concerns, 
        and to insure a fair and equitable share of materials, 
        supplies, and equipment to small-business concerns;
          (12) to consult and cooperate with all Government 
        agencies for the purpose of insuring that small-
        business concerns shall receive fair and reasonable 
        treatment from such agencies;
          (13) to establish such advisory boards and committees 
        as may be necessary to achieve the purposes of this Act 
        and of the Small Business Investment Act of 1958; to 
        call meetings of such boards and committees from time 
        to time; to pay the transportation expenses and a per 
        diem allowance in accordance with section 5703 of title 
        5, United States Code, to the members of such boards 
        and committees for travel and subsistence expenses 
        incurred at the request of the Administration in 
        connection with travel to points more than fifty miles 
        distant from the homes of such members in attending the 
        meetings of such boards and committees; and to rent 
        temporarily, within the District of Columbia or 
        elsewhere, such hotel or other accommodations as are 
        needed to facilitate the conduct of such meetings;
          (14) to provide at the earliest practicable time such 
        information and assistance as may be appropriate, 
        including information concerning eligibility for loans 
        under section 7(b)(3), to local public agencies (as 
        defined in section 110(h) of the Housing Act of 1949) 
        and to small-business concerns to be displaced by 
        federally aided urban renewal projects in order to 
        assist such small-business concerns in reestablishing 
        their operations;
          (15) to disseminate, without regard to the provisions 
        of section 3204 of title 39, United States Code, data 
        and information, in such form as it shall deem 
        appropriate, to public agencies, private organizations, 
        and the general public;
          (16) to make studies of matters materially affecting 
        the competitive strength of small business, and of the 
        effect on small business of Federal laws, programs, and 
        regulations, and to make recommendations to the 
        appropriate Federal agency or agencies for the 
        adjustment of such programs and regulations to the 
        needs of small business; and
          (17) to make grants to, and enter into contracts and 
        cooperative agreements with, educational institutions, 
        private businesses, veterans' nonprofit community-based 
        organizations, and Federal, State, and local 
        departments and agencies for the establishment and 
        implementation of outreach programs for disabled 
        veterans (as defined in section 4211(3) of title 38, 
        United States Code), veterans, and members of a reserve 
        component of the Armed Forces.
  (c) [Reserved.]
  (d)(1) It is the policy of the United States that small 
business concerns, small business concerns owned and controlled 
by veterans, 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, shall have the 
maximum practicable opportunity to participate in the 
performance of contracts let by any Federal agency, including 
contracts and subcontracts for subsystems, assemblies, 
components, and related services for major systems. It is 
further the policy of the United States that its prime 
contractors establish procedures to ensure the timely payment 
of amounts due pursuant to the terms of their subcontracts with 
small business concerns, small business concerns owned and 
controlled by veterans, 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.
  (2) The clause stated in paragraph (3) shall be included in 
all contracts let by any Federal agency except any contract 
which--
          (A) does not exceed the simplified acquisition 
        threshold;
          (B) including all subcontracts under such contracts 
        will be performed entirely outside of any State, 
        territory, or possession of the United States, the 
        District of Columbia, or the Commonwealth of Puerto 
        Rico; or
          (C) is for services which are personal in nature.
  (3) The clause required by paragraph (2) shall be as follows:
          (A) It is the policy of the United States that small 
        business concerns, small business concerns owned and 
        controlled by veterans, 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 shall 
        have the maximum practicable opportunity to participate 
        in the performance of contracts let by any Federal 
        agency, including contracts and subcontracts for 
        subsystems, assemblies, components, and related 
        services for major systems. It is further the policy of 
        the United States that its prime contractors establish 
        procedures to ensure the timely payment of amounts due 
        pursuant to the terms of their subcontracts with small 
        business concerns, small business concerns owned and 
        controlled by veterans, 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.
          (B) The contractor hereby agrees to carry out this 
        policy in the awarding of subcontracts to the fullest 
        extent consistent with the efficient performance of 
        this contract. The contractor further agrees to 
        cooperate in any studies or surveys as may be conducted 
        by the United States Small Business Administration or 
        the awarding agency of the United States as may be 
        necessary to determine the extent of the contractor's 
        compliance with this clause.
          (C) As used in this contract, the term ``small 
        business concern'' shall mean a small business as 
        defined pursuant to section 3 of the Small Business Act 
        and relevant regulations promulgated pursuant thereto. 
        The term ``small business concern owned and controlled 
        by socially and economically disadvantaged 
        individuals'' shall mean a small business concern--
                  (i) which is at least 51 per centum owned by 
                one or more socially and economically 
                disadvantaged individuals; or, in the case of 
                any publicly owned business, at least 51 per 
                centum of the stock of which is owned by one or 
                more socially and economically disadvantaged 
                individuals; and
                  (ii) whose management and daily business 
                operations are controlled by one or more of 
                such individuals.
        The contractor shall presume that socially and 
        economically disadvantaged individuals include Black 
        Americans, Hispanic Americans, Native Americans, Asian 
        Pacific Americans, and other minorities, or any other 
        individual found to be disadvantaged by the 
        Administration pursuant to section 8(a) of the Small 
        Business Act.
          (D) The term ``small business concern owned and 
        controlled by women'' shall mean a small business 
        concern--
                  (i) which is at least 51 per centum owned by 
                one or more women; or, in the case of any 
                publicly owned business, at least 51 per centum 
                of the stock of which is owned by one or more 
                women; and
                  (ii) whose management and daily business 
                operations are controlled by one or more women.
          (E) The term ``small business concern owned and 
        controlled by veterans'' shall mean a small business 
        concern--
                  (i) which is at least 51 per centum owned by 
                one or more eligible veterans; or, in the case 
                of any publicly owned business, at least 51 per 
                centum of the stock of which is owned by one or 
                more veterans; and
                  (ii) whose management and daily business 
                operations are controlled by such veterans. The 
                contractor shall treat as veterans all 
                individuals who are veterans within the meaning 
                of the term under section 3(q) of the Small 
                Business Act.
          (F) Contractors acting in good faith may rely on 
        written representations by their subcontractors 
        regarding their status as either a small business 
        concern, small business concern owned and controlled by 
        veterans, small business concern owned and controlled 
        by service-disabled veterans, a small business concern 
        owned and controlled by socially and economically 
        disadvantaged individuals, or a small business concern 
        owned and controlled by women.
          (G) In this contract, the term ``qualified HUBZone 
        small business concern'' has the meaning given that 
        term in section 3(p) of the Small Business Act.
          (H) In this contract, the term ``small business 
        concern owned and controlled by service-disabled 
        veterans'' has the meaning given that term in section 
        3(q).
  (4)(A) Each solicitation of an offer for a contract to be let 
by a Federal agency which is to be awarded pursuant to the 
negotiated method of procurement and which may exceed 
$1,000,000, in the case of a contract for the construction of 
any public facility, or $500,000, in the case of all other 
contracts, shall contain a clause notifying potential offering 
companies of the provisions of this subsection relating to 
contracts awarded pursuant to the negotiated method of 
procurement.
  (B) Before the award of any contract to be let, or any 
amendment or modification to any contract let, by any Federal 
agency which--
          (i) is to be awarded, or was let, pursuant to the 
        negotiated method of procurement,
          (ii) is required to include the clause stated in 
        paragraph (3),
          (iii) may exceed $1,000,000 in the case of a contract 
        for the construction of any public facility, or 
        $500,000 in the case of all other contracts, and
          (iv) which offers subcontracting possibilities,
the apparent successful offeror shall negotiate with the 
procurement authority a subcontracting plan which incorporates 
the information prescribed in paragraph (6). The subcontracting 
plan shall be included in and made a material part of the 
contract.
  (C) If, within the time limit prescribed in regulations of 
the Federal agency concerned, the apparent successful offeror 
fails to negotiate the subcontracting plan required by this 
paragraph, such offeror shall become ineligible to be awarded 
the contract. Prior compliance of the offeror with other such 
subcontracting plans shall be considered by the Federal agency 
in determining the responsibility of that offeror for the award 
of the contract.
  (D) No contract shall be awarded to any offeror unless the 
procurement authority determines that the plan to be negotiated 
by the offeror pursuant to this paragraph provides the maximum 
practicable opportunity for small business concerns, qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by veterans, small business concerns owned and 
controlled by service-disabled veterans, small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and small business concerns owned 
and controlled by women to participate in the performance of 
the contract.
  (E) Notwithstanding any other provisions of law, every 
Federal agency, in order to encourage subcontracting 
opportunities for small business concerns, small business 
concerns owned and controlled by veterans, small business 
concerns owned and controlled by service-disabled veterans, 
qualified HUBZone small business concerns, and small business 
concerns owned and controlled by the socially and economically 
disadvantaged individuals as defined in paragraph (3) of this 
subsection and for small business concerns owned and controlled 
by women, is hereby authorized to provide such incentives as 
such Federal agency may deem appropriate in order to encourage 
such subcontracting opportunities as may be commensurate with 
the efficient and economical performance of the contact: 
Provided, That, this subparagraph shall apply only to contracts 
let pursuant to the negotiated method of procurement.
  (F)(i) Each contract subject to the requirements of this 
paragraph or paragraph (5) shall contain a clause for the 
payment of liquidated damages upon a finding that a prime 
contractor has failed to make a good faith effort to comply 
with the requirements imposed on such contractor by this 
subsection.
  (ii) The contractor shall be afforded an opportunity to 
demonstrate a good faith effort regarding compliance prior to 
the contracting officer's final decision regarding the 
impositon of damages and the amount thereof. The final decision 
of a contracting officer regarding the contractor's obligation 
to pay such damages, or the amounts thereof, shall be subject 
to the Contract Disputes Act of 1978 (41 U.S.C. 601-613).
  (iii) Each agency shall ensure that the goals offered by the 
apparent successful bidder or offeror are attainable in 
relation to--
          (I) the subcontracting opportunities available to the 
        contractor, commensurate with the efficient and 
        economical performance of the contract;
          (II) the pool of eligible subcontractors available to 
        fulfill the subcontracting opportunities; and
          (III) the actual performance of such contractor in 
        fulfilling the subcontracting goals specified in prior 
        plans.
          (G) The following factors shall be designated by the 
        Federal agency as significant factors for purposes of 
        evaluating offers for a bundled contract where the head 
        of the agency determines that the contract offers a 
        significant opportunity for subcontracting:
                  (i) A factor that is based on the rate 
                provided under the subcontracting plan for 
                small business participation in the performance 
                of the contract.
                  (ii) For the evaluation of past performance 
                of an offeror, a factor that is based on the 
                extent to which the offeror attained applicable 
                goals for small business participation in the 
                performance of contracts.
  (5)(A) Each solicitation of a bid for any contract to be let, 
or any amendment or modification to any contract let, by any 
Federal agency which--
          (i) is to be awarded pursuant to the formal 
        advertising method of procurement,
          (ii) is required to contain the clause stated in 
        paragraph (3) of this subsection,
          (iii) may exceed $1,000,000 in the case of a contract 
        for the construction of any public facility, or 
        $500,000, in the case of all other contracts, and
          (iv) offers subcontracting possibilities,
shall contain a clause requiring any bidder who is selected to 
be awarded a contract to submit to the Federal agency concerned 
a subcontracting plan which incorporates the information 
prescribed in paragraph (6).
  (B) If, within the time limit prescribed in regulations of 
the Federal agency concerned, the bidder selected to be awarded 
the contract fails to submit the subcontracting plan required 
by this paragraph, such bidder shall become ineligible to be 
awarded the contract. Prior compliance of the bidder with other 
such subcontracting plans shall be considered by the Federal 
agency in determining the responsibility of such bidder for the 
award of the contract. The subcontracting plan of the bidder 
awarded the contract shall be included in and made a material 
part of the contract.
  (6) Each subcontracting plan required under paragraph (4) or 
(5) shall include--
          (A) percentage goals for the utilization as 
        subcontractors of small business concerns, small 
        business concerns owned and controlled by veterans, 
        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;
          (B) the name of an individual within the employ of 
        the offeror or bidder who will administer the 
        subcontracting program of the offeror or bidder and a 
        description of the duties of such individual;
          (C) a description of the efforts the offeror or 
        bidder will take to assure that small business 
        concerns, small business concerns owned and controlled 
        by veterans, 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 will 
        have an equitable opportunity to compete for 
        subcontracts;
          (D) assurances that the offeror or bidder will 
        include the clause required by paragraph (2) of this 
        subsection in all subcontracts which offer further 
        subcontracting opportunities, and that the offeror or 
        bidder will require all subcontractors (except small 
        business concerns) who receive subcontracts in excess 
        of $1,000,000 in the case of a contract for the 
        construction of any public facility, or in excess of 
        $500,000 in the case of all other contracts, to adopt a 
        plan similar to the plan required under paragraph (4) 
        or (5), and assurances at a minimum that the offeror or 
        bidder, and all subcontractors required to maintain 
        subcontracting plans pursuant to this paragraph, will--
                  (i) review and approve subcontracting plans 
                submitted by their subcontractors;
                  (ii) monitor subcontractor compliance with 
                their approved subcontracting plans;
                  (iii) ensure that subcontracting reports are 
                submitted by their subcontractors when 
                required;
                  (iv) acknowledge receipt of their 
                subcontractors' reports;
                  (v) compare the performance of their 
                subcontractors to subcontracting plans and 
                goals; and
                  (vi) discuss performance with subcontractors 
                when necessary to ensure their subcontractors 
                make a good faith effort to comply with their 
                subcontracting plans;
          (E) assurances that the offeror or bidder will submit 
        such periodic reports and cooperate in any studies or 
        surveys as may be required by the Federal agency or the 
        Administration in order to determine the extent of 
        compliance by the offeror or bidder with the 
        subcontracting plan;
          (F) a recitation of the types of records the 
        successful offeror or bidder will maintain to 
        demonstrate procedures which have been adopted to 
        comply with the requirements and goals set forth in 
        this plan, including the establishment of source lists 
        of small business concerns, small business concerns 
        owned and controlled by veterans, 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; and efforts to identify and award subcontracts 
        to such small business concerns;
          (G) a recitation of the types of records the 
        successful offeror or bidder will maintain to 
        demonstrate procedures which have been adopted to 
        ensure subcontractors at all tiers comply with the 
        requirements and goals set forth in the plan 
        established in accordance with subparagraph (D) of this 
        paragraph, including--
                  (i) the establishment of source lists of 
                small business concerns, small business 
                concerns owned and controlled by veterans, 
                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; and
                  (ii) efforts to identify and award 
                subcontracts to such small business concerns; 
                and
          (H) a representation that the offeror or bidder 
        will--
                  (i) make a good faith effort to acquire 
                articles, equipment, supplies, services, or 
                materials, or obtain the performance of 
                construction work from the small business 
                concerns used in preparing and submitting to 
                the contracting agency the bid or proposal, in 
                the same amount and quality used in preparing 
                and submitting the bid or proposal; and
                  (ii) provide to the contracting officer a 
                written explanation if the offeror or bidder 
                fails to acquire articles, equipment, supplies, 
                services, or materials or obtain the 
                performance of construction work as described 
                in clause (i).
          (7) The head of the contracting agency shall ensure 
        that--
                  (A) the agency collects and reports data on 
                the extent to which contractors of the agency 
                meet the goals and objectives set forth in 
                subcontracting plans submitted pursuant to this 
                subsection; and
                  (B) the agency periodically reviews data 
                collected and reported pursuant to subparagraph 
                (A) for the purpose of ensuring that such 
                contractors comply in good faith with the 
                requirements of this subsection and 
                subcontracting plans submitted by the 
                contractors pursuant to this subsection.
  (8) The provisions of paragraphs (4), (5), and (6) shall not 
apply to offerors or bidders who are small business concerns.
          (9) Material breach.--The failure of any contractor 
        or subcontractor to comply in good faith with--
                  (A) the clause contained in paragraph (3) of 
                this subsection,
                  (B) any plan required of such contractor 
                pursuant to the authority of this subsection to 
                be included in its contract or subcontract, or
                  (C) assurances provided under paragraph 
                (6)(E),
        shall be a material breach of such contract or 
        subcontract and may be considered in any past 
        performance evaluation of the contractor.
  (10) Nothing contained in this subsection shall be construed 
to supersede the requirements of Defense Manpower Policy Number 
4A (32A CFR Chap. 1) or any successor policy.
  (11) In the case of contracts within the provisions of 
paragraphs (4), (5), and (6), the Administration is authorized 
to--
          (A) assist Federal agencies and businesses in 
        complying with their responsibilities under the 
        provisions of this subsection, including the 
        formulation of subcontracting plans pursuant to 
        paragraph (4);
          (B) review any solicitation for any contract to be 
        let pursuant to paragraphs (4) and (5) to determine the 
        maximum practicable opportunity for small business 
        concerns, small business concerns owned and controlled 
        by veterans, 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 to 
        participate as subcontractors in the performance of any 
        contract resulting from any solicitation, and to submit 
        its findings, which shall be advisory in nature, to the 
        appropriate Federal agency; and
          (C) evaluate compliance with subcontracting plans as 
        a supplement to evaluations performed by the 
        contracting agency, either on a contract-by-contract 
        basis or, in the case of contractors having multiple 
        contracts, on an aggregate basis.
  (12) For purposes of determining the attainment of a 
subcontract utilization goal under any subcontracting plan 
entered into with any executive agency pursuant to this 
subsection, a mentor firm providing development assistance to a 
protege firm under the pilot Mentor-Protege Program established 
pursuant to section 831 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 
note) shall be granted credit for such assistance in accordance 
with subsection (g) of such section.
  (13) Payment of Subcontractors.--
          (A) Definition.--In this paragraph, the term 
        ``covered contract'' means a contract relating to which 
        a prime contractor is required to develop a 
        subcontracting plan under paragraph (4) or (5).
          (B) Notice.--
                  (i) In general.--A prime contractor for a 
                covered contract shall notify in writing the 
                contracting officer for the covered contract if 
                the prime contractor pays a reduced price to a 
                subcontractor for goods and services upon 
                completion of the responsibilities of the 
                subcontractor or the payment to a subcontractor 
                is more than 90 days past due for goods or 
                services provided for the covered contract for 
                which the Federal agency has paid the prime 
                contractor.
                  (ii) Contents.--A prime contractor shall 
                include the reason for the reduction in a 
                payment to or failure to pay a subcontractor in 
                any notice made under clause (i).
          (C) Performance.--A contracting officer for a covered 
        contract shall consider the unjustified failure by a 
        prime contractor to make a full or timely payment to a 
        subcontractor in evaluating the performance of the 
        prime contractor.
          (D) Control of funds.--If the contracting officer for 
        a covered contract determines that a prime contractor 
        has a history of unjustified, untimely payments to 
        contractors, the contracting officer shall record the 
        identity of the contractor in accordance with the 
        regulations promulgated under subparagraph (E).
          (E) Regulations.--Not later than 1 year after the 
        date of enactment of this paragraph, the Federal 
        Acquisition Regulatory Council established under 
        section 25(a) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 421(a)) shall amend the Federal 
        Acquisition Regulation issued under section 25 of such 
        Act to--
                  (i) describe the circumstances under which a 
                contractor may be determined to have a history 
                of unjustified, untimely payments to 
                subcontractors;
                  (ii) establish a process for contracting 
                officers to record the identity of a contractor 
                described in clause (i); and
                  (iii) require the identity of a contractor 
                described in clause (i) to be incorporated in, 
                and made publicly available through, the 
                Federal Awardee Performance and Integrity 
                Information System, or any successor thereto.
          (14) An offeror for a covered contract that intends 
        to identify a small business concern as a potential 
        subcontractor in a bid or proposal for the contract, or 
        in a plan submitted pursuant to this subsection in 
        connection with the contract, shall notify the small 
        business concern prior to making such identification.
          (15) The Administrator shall establish a reporting 
        mechanism that allows a subcontractor or potential 
        subcontractor to report fraudulent activity or bad 
        faith by a contractor with respect to a subcontracting 
        plan submitted pursuant to this subsection.
  (16) Credit for Certain Subcontractors.--
          (A) For purposes of determining whether or not a 
        prime contractor has attained the percentage goals 
        specified in paragraph (6)--
                  (i) if the subcontracting goals pertain only 
                to a single contract with the executive agency, 
                the prime contractor shall receive credit for 
                small business concerns performing as first 
                tier subcontractors or subcontractors at any 
                tier pursuant to the subcontracting plans 
                required under paragraph (6)(D) in an amount 
                equal to the dollar value of work awarded to 
                such small business concerns; and
                  (ii) if the subcontracting goals pertain to 
                more than one contract with one or more 
                executive agencies, or to one contract with 
                more than one executive agency, the prime 
                contractor may only count first tier 
                subcontractors that are small business 
                concerns.
          (B) Nothing in this paragraph shall abrogate the 
        responsibility of a prime contractor to make a good-
        faith effort to achieve the first tier small business 
        subcontracting goals negotiated under paragraph (6)(A), 
        or the requirement for subcontractors with further 
        opportunities for subcontracting to make a good-faith 
        effort to achieve the goals established under paragraph 
        (6)(D).
  [(17) Pilot program providing past performance ratings for 
other small business subcontractors.--
          [(A) Establishment.--The Administrator shall 
        establish a pilot program for a small business concern 
        without a past performance rating as a prime contractor 
        performing as a first tier subcontractor for a covered 
        contract (as defined in paragraph (13)(A)) to request a 
        past performance rating in the system used by the 
        Federal Government to monitor or record contractor past 
        performance.
          [(B) Application.--A small business concern described 
        in subparagraph (A) shall submit an application to the 
        appropriate official for a past performance rating no 
        later than 270 days after the small business concern 
        completed the work for which it seeks a past 
        performance rating or 180 days after the prime 
        contractor completes work on the covered contract, 
        whichever is earlier. Such application shall include 
        written evidence of the past performance factors for 
        which the small business concern seeks a rating and a 
        suggested rating.
          [(C) Determination.--The appropriate official shall 
        submit the application from the small business concern 
        to the Office of Small and Disadvantaged Business 
        Utilization for the covered contract and to the prime 
        contractor for review. The Office of Small and 
        Disadvantaged Business Utilization and the prime 
        contractor shall, not later than 30 days after receipt 
        of the application, submit to the appropriate official 
        a response regarding the application.
                  [(i) Agreement on rating.--If the Office of 
                Small and Disadvantaged Business Utilization 
                and the prime contractor agree on a past 
                performance rating, or if either the Office of 
                Small and Disadvantaged Business Utilization or 
                the prime contractor fail to respond and the 
                responding person agrees with the rating of the 
                applicant small business concern, the 
                appropriate official shall enter the agreed-
                upon past performance rating in the system 
                described in subparagraph (A).
                  [(ii) Disagreement on rating.--If the Office 
                of Small and Disadvantaged Business Utilization 
                and the prime contractor fail to respond within 
                30 days or if they disagree about the rating, 
                or if either the Office of Small and 
                Disadvantaged Business Utilization or the prime 
                contractor fail to respond and the responding 
                person disagrees with the rating of the 
                applicant small business concern, the Office of 
                Small and Disadvantaged Business Utilization or 
                the prime contractor shall submit a notice 
                contesting the application to the appropriate 
                official. The appropriate official shall follow 
                the requirements of subparagraph (D).
          [(D) Procedure for rating.--Not later than 14 
        calendar days after receipt of a notice under 
        subparagraph (C)(ii), the appropriate official shall 
        submit such notice to the applicant small business 
        concern. Such concern may submit comments, rebuttals, 
        or additional information relating to the past 
        performance of such concern not later 14 calendar days 
        after receipt of such notice. The appropriate official 
        shall enter into the system described in subparagraph 
        (A) a rating that is neither favorable nor unfavorable 
        along with the initial application from such concern, 
        any responses of the Office of Small and Disadvantaged 
        Business Utilization and the prime contractor, and any 
        additional information provided by such concern. A copy 
        of the information submitted shall be provided to the 
        contracting officer (or designee of such officer) for 
        the covered contract.
          [(E) Use of information.--A small business 
        subcontractor may use a past performance rating given 
        under this paragraph to establish its past performance 
        for a prime contract.
          [(F) Duration.--The pilot program established under 
        this paragraph shall terminate 3 years after the date 
        on which the first applicant small business concern 
        receives a past performance rating for performance as a 
        first tier subcontractor.
          [(G) Report.--The Comptroller General of the United 
        States shall begin an assessment of the pilot program 1 
        year after the establishment of such program. Not later 
        than 6 months after beginning such assessment, the 
        Comptroller General shall submit a report to the 
        Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House 
        of Representatives, which shall include--
                  [(i) the number of small business concerns 
                and, set forth separately, the number of small 
                business exporters, that have received past 
                performance ratings under the pilot program;
                  [(ii) the number of applications, set forth 
                separately by applications from small business 
                concerns and from small business exporters, in 
                which the contracting officer (or designee) or 
                the prime contractor contested the application 
                of the small business concern;
                  [(iii) any suggestions or recommendations the 
                Comptroller General or the small business 
                concerns participating in the program have to 
                address disputes between the small business 
                concern, the contracting officer (or designee), 
                and the prime contractor on past performance 
                ratings;
                  [(iv) the number of small business concerns 
                awarded prime contracts after receiving a past 
                performance rating under this pilot program; 
                and
                  [(v) any suggestions or recommendation the 
                Comptroller General has to improve the 
                operation of the pilot program.
          [(H) Definitions.--In this paragraph--
                  [(i) the term ``appropriate official'' 
                means--
                          [(I) a commercial market 
                        representative;
                          [(II) another individual designated 
                        by the senior official appointed by the 
                        Administrator with responsibilities 
                        under sections 8, 15, 31, and 36; or
                          [(III) the Office of Small and 
                        Disadvantaged Business Utilization of a 
                        Federal agency, if the head of the 
                        Federal agency and the Administrator 
                        agree;
                  [(ii) the term ``defense item'' has the 
                meaning given that term in section 38(j)(4)(A) 
                of the Arms Export Control Act (22 U.S.C. 
                2778(j)(4)(A));
                  [(iii) the term ``major non-NATO ally'' means 
                a country designated as a major non-NATO ally 
                under section 517 of the Foreign Assistance Act 
                of 1961 (22 U.S.C. 2321k);
                  [(iv) the term ``past performance'' includes 
                performance of a contract for a sale of defense 
                items (under section 38 of the Arms Export 
                Control Act (22 U.S.C. 2778)) to the government 
                of a member nation of North Atlantic Treaty 
                Organization, the government of a major non-
                NATO ally, or the government of a country with 
                which the United States has a defense 
                cooperation agreement (as certified by the 
                Secretary of State); and
                  [(v) the term ``small business exporter'' 
                means a small business concern that exports 
                defense items under section 38 of the Arms 
                Export Control Act (22 U.S.C. 2778) to the 
                government of a member nation of the North 
                Atlantic Treaty Organization, the government of 
                a major non-NATO ally, or the government of a 
                country with which the United States has a 
                defense cooperation agreement (as certified by 
                the Secretary of State).]
          (17) Past performance ratings for certain small 
        business subcontractors.--
                  (A) In general.--Upon request by a small 
                business concern that performed as a first-tier 
                subcontractor on a covered contract (as defined 
                in paragraph 13(A)) that is submitting an offer 
                for a solicitation, the prime contractor for 
                such covered contract shall submit to the 
                contracting agency issuing the solicitation or 
                to such small business concern a record of past 
                performance for such small business concern 
                with respect to such covered contract.
                  (B) Consideration.--A contracting officer 
                shall consider the record of past performance 
                of a small business concern provided under 
                subparagraph (A) when evaluating an offer for a 
                prime contract made by such small business 
                concern.
  (e)(1) Except as provided in subsection (g)--
          (A) an executive agency intending to--
                  (i) solicit bids or proposals for a contract 
                for property or services for a price expected 
                to exceed $25,000; or
                  (ii) place an order, expected to exceed 
                $25,000, under a basic agreement, basis 
                ordering agreement, or similar arrangement,
        shall publish a notice described in subsection (f);
          (B) an executive agency intending to solicit bids or 
        proposals for a contract for property or services shall 
        post, for a period of not less than ten days, in a 
        public place at the contracting office issuing the 
        solicitation a notice of solicitation described in 
        subsection (f)--
                  (i) in the case of an executive agency other 
                than the Department of Defense, if the contract 
                is for a price expected to exceed $10,000, but 
                not to exceed $25,000; and
                  (ii) in the case of the Department of 
                Defense, if the contract is for a price 
                expected to exceed $5,000, but not to exceed 
                $25,000; and
          (C) an executive agency awarding a contract for 
        property or services for a price exceeding $100,000, or 
        placing an order referred to in clause (A)(ii) 
        exceeding $100,000, shall furnish for publication by 
        the Secretary of Commerce a notice announcing the award 
        or order if there is likely to be any subcontract under 
        such contract or order.
  (2)(A) A notice of solicitation required to be published 
under paragraph (1) may be published--
          (i) by electronic means that meet the accessibility 
        requirements under section 18(a)(7) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 416(a)(7)); 
        or
          (ii) by the Secretary of Commerce in the Commerce 
        Business Daily.
  (B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received 
under this subsection for publication by that means.
  (3) Whenever an executive agency is required by paragraph 
(1)(A) to publish a notice of solicitation, such executive 
agency may not--
          (A) issue the solicitation earlier than 15 days after 
        the date on which the notice is published; or
          (B) in the case of a contract or order estimated to 
        be greater than the simplified acquisition threshold, 
        establish a deadline for the submission of all bids or 
        proposals in response to the notice required by 
        paragraph (1)(A) that--
                  (i) in the case of an order under a basic 
                agreement, basic ordering agreement, or similar 
                arrangement, is earlier than the date 30 days 
                after the date the notice required by paragraph 
                (1)(A)(ii) is published;
                  (ii) in the case of a solicitation for 
                research and development, is earlier than the 
                date 45 days after the date the notice required 
                by paragraph (1)(A)(i) is published; or
                  (iii) in any other case, is earlier than the 
                date 30 days after the date the solicitation is 
                issued.
  (f) Each notice of solicitation required by subparagraph (A) 
or (B) of subsection (e)(1) shall include--
          (1) an accurate description of the property or 
        services to be contracted for, which description (A) 
        shall not be unnecessarily restrictive of competition, 
        and (B) shall include, as appropriate, the agency 
        nomenclature, National Stock Number or other part 
        number, and a brief description of the item's form, 
        fit, or function, physical dimensions, predominant 
        material of manufacture, or similar information that 
        will assist a prospective contractor to make an 
        informed business judgment as to whether a copy of the 
        solicitation should be requested;
          (2) provisions that--
                  (A) state whether the technical data required 
                to respond to the solicitation will not be 
                furnished as part of such solicitation, and 
                identify the source in the Government, if any, 
                from which the technical data may be obtained; 
                and
                  (B) state whether an offeror, its product, or 
                service must meet a qualification requirement 
                in order to be eligible for award, and, if so, 
                identify the office from which a qualification 
                requirement may be obtained;
          (3) the name, business address, and telephone number 
        of the contracting officer;
          (4) a statement that all responsible sources may 
        submit a bid, proposal, or quotation (as appropriate) 
        which shall be considered by the agency;
          (5) in the case of a procurement using procedures 
        other than competitive procedures, a statement of the 
        reason justifying the use of such procedures and the 
        identity of the intended source; and
          (6) in the case of a contract in an amount estimated 
        to be greater than $25,000 but not greater than the 
        simplified acquisition threshold--
                  (A) a description of the procedures to be 
                used in awarding the contract; and
                  (B) a statement specifying the periods for 
                prospective offerors and the contracting 
                officer to take the necessary preaward and 
                award actions.
  (g)(1) A notice is not required under subsection (e)(1) if--
          (A) the proposed procurement is for an amount not 
        greater than the simplified acquisition threshold and 
        is to be conducted by--
                  (i) using widespread electronic public notice 
                of the solicitation in a form that allows 
                convenient and universal user access through a 
                single, Government-wide point of entry; and
                  (ii) permitting the public to respond to the 
                solicitation electronically.
          (B) the notice would disclose the executive agency's 
        needs and the disclosure of such needs would compromise 
        the national security;
          (C) the proposed procurement would result from 
        acceptance of--
                  (i) any unsolicited proposal that 
                demonstrates a unique and innovative research 
                concept and the publication of any notice of 
                such unsolicited research proposal would 
                disclose the originality of thought or 
                innovativeness of the proposal or would 
                disclose proprietary information associated 
                with the proposal; or
                  (ii) a proposal submitted under section 9 of 
                this Act;
          (D) the procurement is made against an order placed 
        under a requirements contract;
          (E) the procurement is made for perishable 
        subsistence supplies;
          (F) the procurement is for utility services, other 
        than telecommunication services, and only one source is 
        available; or
          (G) the procurement is for the services of an expert 
        for use in any litigation or dispute (including 
        preparation for any foreseeable litigation or dispute) 
        that involves or could involve the Federal Government 
        in any trial, hearing, or proceeding before any court, 
        administrative tribunal, or agency, or in any part of 
        an alternative dispute resolution process, whether or 
        not the expert is expected to testify.
  (2) The requirements of subsection (a)(1)(A) do not apply to 
any procurement under conditions described in paragraph (2), 
(3), (4), (5), or (7) of section 303(c) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253(c)) or 
paragraph (2), (3), (4), (5), and (7) of section 2304(c) of 
title 10, United States Code.
  (3) The requirements of subsection (a)(1)(A) shall not apply 
in the case of any procurement for which the head of the 
executive agency makes a determination in writing, after 
consultation with the Administrator for Federal Procurement 
Policy and the Administrator of the Small Business 
Administration, that it is not appropriate or reasonable to 
publish a notice before issuing a solicitation.
  (h)(1) An executive agency may not award a contract using 
procedures other than competitive procedures unless--
          (A) except as provided in paragraph (2), a written 
        justification for the use of such procedures has been 
        approved--
                  (i) in the case of a contract for an amount 
                exceeding $100,000 (but equal to or less than 
                $1,000,000), by the advocate for competition 
                for the procuring activity (without further 
                delegation);
                  (ii) in the case of a contract for an amount 
                exceeding $1,000,000 (but equal to or less than 
                $10,000,000), by the head of the procuring 
                activity or a delegate who, if a member of the 
                Armed Forces, is a general or flag officer, or, 
                if a civilian, is serving in a position in 
                grade GS-16 or above under the General Schedule 
                (or in a comparable or higher position under 
                another schedule); or
                  (iii) in the case of a contract for an amount 
                exceeding $10,000,000, by the senior 
                procurement executive of the agency designated 
                pursuant to section 16(3) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 
                414(3)) (without further delegation); and
          (B) all other requirements applicable to the use of 
        such procedures under title III of the Federal Property 
        and Administrative Services Act of 1949 (41 U.S.C. 251 
        et sq.) or chapter 137 of title 10, United States Code, 
        as appropriate, have been satisfied.
  (2) The same exceptions as are provided in section 303(f)(2) 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253(f)(2)) or section 2304(f)(2) of title 10, United 
States Code, shall apply with respect to the requirements of 
paragraph (1)(A) of this subsection in the same manner as such 
exceptions apply to the requirements of section 303(f)(1) of 
such Act or section 2304(f)(1) of such title, as appropriate.
  (i) An executive agency shall make available to any business 
concern, or the authorized representative of such concern, the 
complete solicitation package for any on-going procurement 
announced pursuant to a notice under subsection (e). An 
executive agency may require the payment of a fee, not 
exceeding the actual cost of duplication, for a copy of such 
package.
  (j) For purposes of this section, the term ``executive 
agency'' has the meaning provided such term in section 4(1) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
403(1)).
  (k) Notices of Subcontracting Opportunities.--
          (1) In general.--Notices of subcontracting 
        opportunities may be submitted for publication on the 
        appropriate Federal Web site (as determined by the 
        Administrator) by--
                  (A) a business concern awarded a contract by 
                an executive agency subject to subsection 
                (e)(1)(C); and
                  (B) a business concern that is a 
                subcontractor or supplier (at any tier) to such 
                contractor having a subcontracting opportunity 
                in excess of $10,000.
          (2) Content of notice.--The notice of a 
        subcontracting opportunity shall include--
                  (A) a description of the business opportunity 
                that is comparable to the description specified 
                in paragraphs (1), (2), (3), and (4) of 
                subsection (f); and
                  (B) the due date for receipt of offers.
  (l) Management Assistance for Small Businesses Affected by 
Military Operations.--The Administration shall utilize, as 
appropriate, its entrepreneurial development and management 
assistance programs, including programs involving State or 
private sector partners, to provide business counseling and 
training to any small business concern adversely affected by 
the deployment of units of the Armed Forces of the United 
States in support of a period of military conflict (as defined 
in section 7(n)(1)).
  (m) Procurement Program for Women-owned Small Business 
Concerns.--
          (1) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Contracting officer.--The term 
                ``contracting officer'' has the meaning given 
                such term in section 27(f)(5) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 
                423(f)(5)).
                  (B) Small business concern owned and 
                controlled by women.--The term ``small business 
                concern owned and controlled by women'' has the 
                meaning given such term in section 3(n), except 
                that ownership shall be determined without 
                regard to any community property law.
          (2) Authority to restrict competition.--In accordance 
        with this subsection, a contracting officer may 
        restrict competition for any contract for the 
        procurement of goods or services by the Federal 
        Government to small business concerns owned and 
        controlled by women, if--
                  (A) each of the concerns is not less than 51 
                percent owned by one or more women who are 
                economically disadvantaged (and such ownership 
                is determined without regard to any community 
                property law);
                  (B) the contracting officer has a reasonable 
                expectation that two or more small business 
                concerns owned and controlled by women will 
                submit offers for the contract;
                  (C) the contract is for the procurement of 
                goods or services with respect to an industry 
                identified by the Administrator pursuant to 
                paragraph (3);
                  (D) in the estimation of the contracting 
                officer, the contract award can be made at a 
                fair and reasonable price; and
                  (E) each of the concerns is certified by a 
                Federal agency, a State government, the 
                Administrator, or a national certifying entity 
                approved by the Administrator as a small 
                business concern owned and controlled by women.
          (3) Waiver.--With respect to a small business concern 
        owned and controlled by women, the Administrator may 
        waive subparagraph (2)(A) if the Administrator 
        determines that the concern is in an industry in which 
        small business concerns owned and controlled by women 
        are substantially underrepresented.
          (4) Identification of industries.--The Administrator 
        shall conduct a study to identify industries in which 
        small business concerns owned and controlled by women 
        are underrepresented with respect to Federal 
        procurement contracting.
          (5) Enforcement; penalties.--
                  (A) Verification of eligibility.--In carrying 
                out this subsection, the Administrator shall 
                establish procedures relating to--
                          (i) the filing, investigation, and 
                        disposition by the Administration of 
                        any challenge to the eligibility of a 
                        small business concern to receive 
                        assistance under this subsection 
                        (including a challenge, filed by an 
                        interested party, relating to the 
                        veracity of a certification made or 
                        information provided to the 
                        Administration by a small business 
                        concern under paragraph (2)(E)); and
                          (ii) verification by the 
                        Administrator of the accuracy of any 
                        certification made or information 
                        provided to the Administration by a 
                        small business concern under paragraph 
                        (2)(E).
                  (B) Examinations.--The procedures established 
                under subparagraph (A) may provide for program 
                examinations (including random program 
                examinations) by the Administrator of any small 
                business concern making a certification or 
                providing information to the Administrator 
                under paragraph (2)(E).
                  (C) Penalties.--In addition to the penalties 
                described in section 16(d), any small business 
                concern that is determined by the Administrator 
                to have misrepresented the status of that 
                concern as a small business concern owned and 
                controlled by women for purposes of this 
                subsection, shall be subject to--
                          (i) section 1001 of title 18, United 
                        States Code; and
                          (ii) sections 3729 through 3733 of 
                        title 31, United States Code.
          (6) Provision of data.--Upon the request of the 
        Administrator, the head of any Federal department or 
        agency shall promptly provide to the Administrator such 
        information as the Administrator determines to be 
        necessary to carry out this subsection.
          (7) Authority for sole source contracts for 
        economically disadvantaged small business concerns 
        owned and controlled by women.--A contracting officer 
        may award a sole source contract under this subsection 
        to any small business concern owned and controlled by 
        women described in paragraph (2)(A) and certified under 
        paragraph (2)(E) if--
                  (A) such concern is determined to be a 
                responsible contractor with respect to 
                performance of the contract opportunity and the 
                contracting officer does not have a reasonable 
                expectation that 2 or more businesses described 
                in paragraph (2)(A) will submit offers;
                  (B) the anticipated award price of the 
                contract (including options) will not exceed--
                          (i) $6,500,000, in the case of a 
                        contract opportunity assigned a 
                        standard industrial classification code 
                        for manufacturing; or
                          (ii) $4,000,000, in the case of any 
                        other contract opportunity; and
                  (C) in the estimation of the contracting 
                officer, the contract award can be made at a 
                fair and reasonable price.
          (8) Authority for sole source contracts for small 
        business concerns owned and controlled by women in 
        substantially underrepresented industries.--A 
        contracting officer may award a sole source contract 
        under this subsection to any small business concern 
        owned and controlled by women certified under paragraph 
        (2)(E) that is in an industry in which small business 
        concerns owned and controlled by women are 
        substantially underrepresented (as determined by the 
        Administrator under paragraph (3)) if--
                  (A) such concern is determined to be a 
                responsible contractor with respect to 
                performance of the contract opportunity and the 
                contracting officer does not have a reasonable 
                expectation that 2 or more businesses in an 
                industry that has received a waiver under 
                paragraph (3) will submit offers;
                  (B) the anticipated award price of the 
                contract (including options) will not exceed--
                          (i) $6,500,000, in the case of a 
                        contract opportunity assigned a 
                        standard industrial classification code 
                        for manufacturing; or
                          (ii) $4,000,000, in the case of any 
                        other contract opportunity; and
                  (C) in the estimation of the contracting 
                officer, the contract award can be made at a 
                fair and reasonable price.
  (n) Business Grants and Cooperative Agreements.--
          (1) In general.--In accordance with this subsection, 
        the Administrator may make grants to and enter into 
        cooperative agreements with any coalition of private 
        entities, public entities, or any combination of 
        private and public entities--
                  (A) to expand business-to-business 
                relationships between large and small 
                businesses; and
                  (B) to provide businesses, directly or 
                indirectly, with online information and a 
                database of companies that are interested in 
                mentor-protege programs or community-based, 
                statewide, or local business development 
                programs.
          (2) Matching requirement.--Subject to subparagraph 
        (B), the Administrator may make a grant to a coalition 
        under paragraph (1) only if the coalition provides for 
        activities described in paragraph (1)(A) or (1)(B) an 
        amount, either in kind or in cash, equal to the grant 
        amount.
          (3) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $6,600,000, to remain available until 
        expended, for each of fiscal years 2001 through 2006.

           *       *       *       *       *       *       *

  Sec. 15.
  (a) Small Business Procurements.--
          (1) In general.--For purposes of this Act, small 
        business concerns shall receive any award or contract 
        if such award or contract is, in the determination of 
        the Administrator and the contracting agency, in the 
        interest of--
                  (A) maintaining or mobilizing the full 
                productive capacity of the United States;
                  (B) war or national defense programs; or
                  (C) assuring that a fair proportion of the 
                total purchases and contracts for goods and 
                services of the Government in each industry 
                category (as defined under paragraph (2)) are 
                awarded to small business concerns.
          (2) Industry category defined.--
                  (A) In general.--In this subsection, the term 
                ``industry category'' means a discrete group of 
                similar goods and services, as determined by 
                the Administrator in accordance with the North 
                American Industry Classification System codes 
                used to establish small business size 
                standards, except that the Administrator shall 
                limit an industry category to a greater extent 
                than provided under the North American Industry 
                Classification System codes if the 
                Administrator receives evidence indicating that 
                further segmentation of the industry category 
                is warranted--
                          (i) due to special capital equipment 
                        needs;
                          (ii) due to special labor 
                        requirements;
                          (iii) due to special geographic 
                        requirements, except as provided in 
                        subparagraph (B);
                          (iv) due to unique Federal buying 
                        patterns or requirements; or
                          (v) to recognize a new industry.
                  (B) Exception for geographic requirements.--
                The Administrator may not further segment an 
                industry category based on geographic 
                requirements unless--
                          (i) the Government typically 
                        designates the geographic area where 
                        work for contracts for goods or 
                        services is to be performed;
                          (ii) Government purchases comprise 
                        the major portion of the entire 
                        domestic market for such goods or 
                        services; and
                          (iii) it is unreasonable to expect 
                        competition from business concerns 
                        located outside of the general 
                        geographic area due to the fixed 
                        location of facilities, high 
                        mobilization costs, or similar economic 
                        factors.
          (3) Determinations with respect to awards or 
        contracts.--Determinations made pursuant to paragraph 
        (1) may be made for individual awards or contracts, any 
        part of an award or contract or task order, or for 
        classes of awards or contracts or task orders.
          (4) Increasing prime contracting opportunities for 
        small business concerns.--
                  (A) Description of covered proposed 
                procurements.--The requirements of this 
                paragraph shall apply to a proposed procurement 
                that includes in its statement of work goods or 
                services currently being supplied or performed 
                by a small business concern and, as determined 
                by the Administrator--
                          (i) is in a quantity or of an 
                        estimated dollar value which makes the 
                        participation of a small business 
                        concern as a prime contractor unlikely;
                          (ii) in the case of a proposed 
                        procurement for construction, seeks to 
                        bundle or consolidate discrete 
                        construction projects; or
                          (iii) is a solicitation that involves 
                        an unnecessary or unjustified bundling 
                        of contract requirements.
                  (B) Notice to procurement center 
                representatives.--With respect to proposed 
                procurements described in subparagraph (A), at 
                least 30 days before issuing a solicitation and 
                concurrent with other processing steps required 
                before issuing the solicitation, the 
                contracting agency shall provide a copy of the 
                proposed procurement to the procurement center 
                representative of the contracting agency (as 
                described in subsection (l)) along with a 
                statement explaining--
                          (i) why the proposed procurement 
                        cannot be divided into reasonably small 
                        lots (not less than economic production 
                        runs) to permit offers on quantities 
                        less than the total requirement;
                          (ii) why delivery schedules cannot be 
                        established on a realistic basis that 
                        will encourage the participation of 
                        small business concerns in a manner 
                        consistent with the actual requirements 
                        of the Government;
                          (iii) why the proposed procurement 
                        cannot be offered to increase the 
                        likelihood of the participation of 
                        small business concerns;
                          (iv) in the case of a proposed 
                        procurement for construction, why the 
                        proposed procurement cannot be offered 
                        as separate discrete projects; or
                          (v) why the contracting agency has 
                        determined that the bundling of 
                        contract requirements is necessary and 
                        justified.
                  (C) Alternatives to increase prime 
                contracting opportunities for small business 
                concerns.--If the procurement center 
                representative believes that the proposed 
                procurement will make the participation of 
                small business concerns as prime contractors 
                unlikely, the procurement center 
                representative, within 15 days after receiving 
                the statement described in subparagraph (B), 
                shall recommend to the contracting agency 
                alternative procurement methods for increasing 
                prime contracting opportunities for small 
                business concerns.
                  (D) Failure to agree on an alternative 
                procurement method.--If the procurement center 
                representative and the contracting agency fail 
                to agree on an alternative procurement method, 
                the Administrator shall submit the matter to 
                the head of the appropriate department or 
                agency for a determination.
          (5) Contracts for sale of Government property.--With 
        respect to a contract for the sale of Government 
        property, small business concerns shall receive any 
        such contract if, in the determination of the 
        Administrator and the disposal agency, the award of 
        such contract is in the interest of assuring that a 
        fair proportion of the total sales of Government 
        property be made to small business concerns.
          (6) Sale of electrical power or other property.--
        Nothing in this subsection shall be construed to change 
        any preferences or priorities established by law with 
        respect to the sale of electrical power or other 
        property by the Federal Government.
          (7) Costs exceeding fair market price.--A contract 
        may not be awarded under this subsection if the cost of 
        the contract to the awarding agency exceeds a fair 
        market price.
  (b) With respect to any work to be performed the amount of 
which would exceed the maximum amount of any contract for which 
a surety may be guaranteed against loss under section 411 of 
the Small Business Investment Act of 1958 (15 U.S.C. 694(b)), 
the contracting procurement agency shall, to the extent 
practicable, place contracts so as to allow more than one small 
business concern to perform such work.
  (c)(1) As used in this subsection:
          (A) The term ``Committee'' means the Committee for 
        Purchase from the Blind and Other Severely Handicapped 
        established under the first section of the Act entitled 
        ``An Act to create a Committee on Purchases of Blind-
        made Products, and for other purposes'', approved June 
        25, 1938 (41 U.S.C. 46).
          (B) The term ``public or private organization for the 
        handicapped'' has the same meaning given such term in 
        section 3(e).
          (C) The term ``handicapped individual'' has the same 
        meaning given such term in section 3(f).
  (2)(A) During fiscal year 1995, public or private 
organizations for the handicapped shall be eligible to 
participate in programs authorized under this section in an 
aggregate amount not to exceed $40,000,000.
  (B) None of the amounts authorized for participation by 
subparagraph (A) may be placed on the procurement list 
maintained by the Committee pursuant to section 2 of the Act 
entitled ``An Act to create a Committee on Purchases of Blind-
made Products, and for other purposes'', approved June 25, 1938 
(41 U.S.C. 47).
  (3) The Administrator shall monitor and evaluate such 
participation.
  (4)(A) Not later than ten days after the announcement of a 
proposed award of a contract by an agency or department to a 
public or private organization for the handicapped, a for-
profit small business concern that has experienced or is likely 
to experience severe economic injury as the result of the 
proposed award may file an appeal of the proposed award with 
the Administrator.
  (B) If such a concern files an appeal of a proposed award 
under subparagraph (A) and the Administrator, after 
consultation with the Executive Director of the Committee, 
finds that the concern has experienced or is likely to 
experience severe economic injury as the result of the proposed 
award, not later than thirty days after the filing of the 
appeal, the Administration shall require each agency and 
department having procurement powers to take such action as may 
be appropriate to alleviate economic injury sustained or likely 
to be sustained by the concern.
  (5) Each agency and department having procurement powers 
shall report to the Office of Federal Procurement Policy each 
time a contract subject to paragraph (2)(A) is entered into, 
and shall include in its report the amount of the next higher 
bid submitted by a for-profit small business concern. The 
Office of Federal Procurement Policy shall collect data 
reported under the preceding sentence through the Federal 
procurement data system and shall report to the Administration 
which shall notify all such agencies and departments when the 
maximum amount of awards authorized under paragraph (2)(A) has 
been made during any fiscal year.
  (6) For the purpose of this subsection, a contract may be 
awarded only if at least 75 per centum of the direct labor 
performed on each item being produced under the contract in the 
sheltered workshop or performed in providing each type of 
service under the contract by the sheltered workshop is 
performed by handicapped individuals.
  (7) Agencies awarding one or more contracts to such an 
organization pursuant to the provisions of this subsection may 
use multiyear contracts, if appropriate.
  (d) For purposes of this section priority shall be given to 
the awarding of contracts and the placement of subcontracts to 
small business concerns which shall perform a substantial 
proportion of the production on those contracts and 
subcontracts within areas of concentrated unemployment or 
underemployment or within labor surplus areas. Notwithstanding 
any other provison of law, total labor surplus area set-asides 
pursuant to Defense Manpower Policy Number 4 (32A C.F.R. 
Chapter 1) or any successor policy shall be authorized if the 
Secretary or his designee specifically determines that there is 
a reasonable expectation that offers will be obtained from a 
sufficient number of eligible concerns so that awards will be 
made at reasonable prices. As soon as practicable and to the 
extent possible, in determining labor surplus areas, 
consideration shall be given to those persons who would be 
available for employment were suitable employment available. 
Until such definition reflects such number, the present 
criteria of such policy shall govern.
  (e) Procurement Strategies; Contract Bundling.--
          (1) In general.--To the maximum extent practicable, 
        procurement strategies used by a Federal department or 
        agency having contracting authority shall facilitate 
        the maximum participation of small business concerns as 
        prime contractors, subcontractors, and suppliers, and 
        each such Federal department or agency shall--
                  (A) provide opportunities for the 
                participation of small business concerns during 
                acquisition planning processes and in 
                acquisition plans; and
                  (B) invite the participation of the 
                appropriate Director of Small and Disadvantaged 
                Business Utilization in acquisition planning 
                processes and provide that Director access to 
                acquisition plans.
          (2) Market research.--
                  (A) In general.--Before proceeding with an 
                acquisition strategy that could lead to a 
                contract containing consolidated procurement 
                requirements, the head of an agency shall 
                conduct market research to determine whether 
                consolidation of the requirements is necessary 
                and justified.
                  (B) Factors.--For purposes of subparagraph 
                (A), consolidation of the requirements may be 
                determined as being necessary and justified if, 
                as compared to the benefits that would be 
                derived from contracting to meet those 
                requirements if not consolidated, the Federal 
                Government would derive from the consolidation 
                measurably substantial benefits, including any 
                combination of benefits that, in combination, 
                are measurably substantial. Benefits described 
                in the preceding sentence may include the 
                following:
                          (i) Cost savings.
                          (ii) Quality improvements.
                          (iii) Reduction in acquisition cycle 
                        times.
                          (iv) Better terms and conditions.
                          (v) Any other benefits.
                  (C) Reduction of costs not determinative.--
                The reduction of administrative or personnel 
                costs alone shall not be a justification for 
                bundling of contract requirements unless the 
                cost savings are expected to be substantial in 
                relation to the dollar value of the procurement 
                requirements to be consolidated.
          (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 the 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 participation of small 
                        business concerns as subcontractors 
                        (including suppliers) at various tiers 
                        under the contract or contracts that 
                        are awarded to meet the requirements.
          (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 
                that provides for use of a particular team of 
                subcontractors or a joint venture of small 
                business concerns may submit an offer for the 
                performance of the contract.
                  (B) Evaluation of offers.--The head of the 
                agency shall evaluate an offer described in 
                subparagraph (A) 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 
                        that 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 small 
                        business prime contractor.
                          (ii) Joint ventures.--When evaluating 
                        an offer of a joint venture of small 
                        business concerns, if the joint venture 
                        does not demonstrate 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.
                  (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 for any other purpose.
          (5) Past performance ratings of joint ventures for 
        small business concerns.--With respect to evaluating an 
        offer for a prime contract made by a small business 
        concern that previously participated in a joint venture 
        with another business concern (whether or not such 
        other business concern was itself a small business 
        concern), the Administrator shall establish 
        regulations--
                  (A) requiring contracting officers to 
                consider the record of past performance of the 
                joint venture when evaluating the past 
                performance of the small business concern; and
                  (B) requiring the small business concern to 
                inform the contracting officer what duties and 
                responsibilities the small business concern 
                carried out as part of the joint venture.
  (f) Contracting Preference for Small Business Concerns in a 
Major Disaster Area.--
          (1) Definition.--In this subsection, the term 
        ``disaster area'' means the area for which the 
        President has declared a major disaster, during the 
        period of the declaration.
          (2) Contracting preference.--An agency shall provide 
        a contracting preference for a small business concern 
        located in a disaster area if the small business 
        concern will perform the work required under the 
        contract in the disaster area.
          (3) Credit for meeting contracting goals.--If an 
        agency awards a contract to a small business concern 
        under the circumstances described in paragraph (2), the 
        value of the contract shall be doubled for purposes of 
        determining compliance with the goals for procurement 
        contracts under subsection (g)(1)(A).
  (g)
          (1) Governmentwide goals.--
                  (A) Establishment.--The President shall 
                annually establish Governmentwide goals for 
                procurement contracts awarded to 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 in accordance with the 
                following:
                          (i) The Governmentwide goal for 
                        participation by small business 
                        concerns shall be established at not 
                        less than 23 percent of the total value 
                        of all prime contract awards for each 
                        fiscal year. In meeting this goal, the 
                        Government shall ensure the 
                        participation of small business 
                        concerns from a wide variety of 
                        industries and from a broad spectrum of 
                        small business concerns within each 
                        industry.
                          (ii) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        service-disabled veterans shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iii) The Governmentwide goal for 
                        participation by qualified HUBZone 
                        small business concerns shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iv) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals shall be established at not 
                        less than 5 percent of the total value 
                        of all prime contract and subcontract 
                        awards for each fiscal year.
                          (v) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by women 
                        shall be established at not less than 5 
                        percent of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                  (B) Achievement of governmentwide goals.--
                Each agency shall have an annual goal that 
                presents, for that agency, the maximum 
                practicable opportunity for 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 to participate in the 
                performance of contracts let by such agency. 
                The Small Business Administration and the 
                Administrator for Federal Procurement Policy 
                shall, when exercising their authority pursuant 
                to paragraph (2), insure that the cumulative 
                annual prime contract goals for all agencies 
                meet or exceed the annual Governmentwide prime 
                contract goal established by the President 
                pursuant to this paragraph.
  (2)(A) The head of each Federal agency shall, after 
consultation with the Administration, establish goals for the 
participation by small business concerns, by small business 
concerns owned and controlled by service-disabled veterans, by 
qualified HUBZone small business concerns, by small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and by small business concerns owned 
and controlled by women in procurement contracts of such 
agency. Such goals shall separately address prime contract 
awards and subcontract awards for each category of small 
business covered.
  (B) Goals established under this subsection shall be jointly 
established by the Administration and the head of each Federal 
agency and shall realistically reflect the potential of 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 to perform such 
contracts and to perform subcontracts under such contracts.
  (C) Whenever the Administration and the head of any Federal 
agency fail to agree on established goals, the disagreement 
shall be submitted to the Administrator for Federal Procurement 
Policy for final determination.
  (D) After establishing goals under this paragraph for a 
fiscal year, the head of each Federal agency shall develop a 
plan for achieving such goals at both the prime contract and 
the subcontract level, which shall apportion responsibilities 
among the agency's acquisition executives and officials. In 
establishing goals under this paragraph, the head of each 
Federal agency shall make a consistent effort to annually 
expand participation by small business concerns from each 
industry category in procurement contracts and subcontracts of 
such agency, including participation by 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.
          (E) The head of each Federal agency, in attempting to 
        attain expanded participation under subparagraph (D), 
        shall consider--
                  (i) contracts awarded as the result of 
                unrestricted competition; and
                  (ii) contracts awarded after competition 
                restricted to eligible small business concerns 
                under this section and under the program 
                established under section 8(a).
          (F)(i) Each procurement employee or program manager 
        described in clause (ii) shall communicate to the 
        subordinates of the procurement employee or program 
        manager the importance of achieving goals established 
        under subparagraph (A).
                  (ii) A procurement employee or program 
                manager described in this clause is a senior 
                procurement executive, senior program manager, 
                or Director of Small and Disadvantaged Business 
                Utilization of a Federal agency having 
                contracting authority.
  (3) First tier subcontracts that are awarded by Management 
and Operating contractors sponsored by the Department of Energy 
to small business concerns, small businesses 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, shall be considered toward the annually established 
agency and Government-wide goals for procurement contracts 
awarded.
  (h) Reporting on Goals for Procurement Contracts Awarded to 
Small Business Concerns.--
          (1) Agency reports.--At the conclusion of each fiscal 
        year, the head of each Federal agency shall submit to 
        the Administrator a report describing--
                  (A) the extent of the participation by small 
                business concerns, small business concerns 
                owned and controlled by veterans (including 
                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 in the procurement contracts of such 
                agency during such fiscal year;
                  (B) whether the agency achieved the goals 
                established for the agency under subsection 
                (g)(2) with respect to such fiscal year;
                  (C) any justifications for a failure to 
                achieve such goals; and
                  (D) a remediation plan with proposed new 
                practices to better meet such goals, including 
                analysis of factors leading to any failure to 
                achieve such goals.
          (2) Reports by administrator.--Not later than 60 days 
        after receiving a report from each Federal agency under 
        paragraph (1) with respect to a fiscal year, the 
        Administrator shall submit to the President and 
        Congress, and to make available on a public Web site, a 
        report that includes--
                  (A) a copy of each report submitted to the 
                Administrator under paragraph (1);
                  (B) a determination of whether each goal 
                established by the President under subsection 
                (g)(1) for such fiscal year was achieved;
                  (C) a determination of whether each goal 
                established by the head of a Federal agency 
                under subsection (g)(2) for such fiscal year 
                was achieved;
                  (D) the reasons for any failure to achieve a 
                goal established under paragraph (1) or (2) of 
                subsection (g) for such fiscal year and a 
                description of actions planned by the 
                applicable agency to address such failure, 
                including the Administrator's comments and 
                recommendations on the proposed remediation 
                plan; and
                  (E) for the Federal Government and each 
                Federal agency, an analysis of the number and 
                dollar amount of prime contracts awarded during 
                such fiscal year to--
                          (i) small business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through unrestricted 
                                competition;
                                  (V) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns for purposes of the 
                                initial contract; and
                                  (VI) that were awarded using 
                                a procurement method that 
                                restricted competition to 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, small business 
                                concerns owned and controlled 
                                by women, or a subset of any 
                                such concerns;
                          (ii) small business concerns owned 
                        and controlled by service-disabled 
                        veterans--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by service-disabled veterans;
                                  (V) through unrestricted 
                                competition;
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by service-disabled veterans 
                                for purposes of the initial 
                                contract; and
                                  (VII) that were awarded using 
                                a procurement method that 
                                restricted competition to 
                                qualified HUBZone small 
                                business concerns, small 
                                business concerns owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals, small business 
                                concerns owned and controlled 
                                by women, or a subset of any 
                                such concerns;
                          (iii) qualified HUBZone small 
                        business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to qualified HUBZone 
                                small business concerns;
                                  (V) through unrestricted 
                                competition where a price 
                                evaluation preference was used;
                                  (VI) through unrestricted 
                                competition where a price 
                                evaluation preference was not 
                                used;
                                  (VII) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be qualified HUBZone 
                                small business concerns for 
                                purposes of the initial 
                                contract; and
                                  (VIII) that were awarded 
                                using a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals, 
                                small business concerns owned 
                                and controlled by women, or a 
                                subset of any such concerns;
                          (iv) small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged 
                        individuals--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition;
                                  (VI) by reason of that 
                                concern's certification as a 
                                small business owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals;
                                  (VII) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals for 
                                purposes of the initial 
                                contract; and
                                  (VIII) that were awarded 
                                using a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, qualified HUBZone 
                                small business concerns, small 
                                business concerns owned and 
                                controlled by women, or a 
                                subset of any such concerns;
                          (v) small business concerns owned by 
                        an Indian tribe (as such term is 
                        defined in section 8(a)(13)) other than 
                        an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by an Indian 
                                tribe other than an Alaska 
                                Native Corporation for purposes 
                                of the initial contract;
                          (vi) small business concerns owned by 
                        a Native Hawaiian Organization--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by a Native 
                                Hawaiian Organization for 
                                purposes of the initial 
                                contract;
                          (vii) small business concerns owned 
                        by an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by an Alaska 
                                Native Corporation for purposes 
                                of the initial contract; and
                          (viii) small business concerns owned 
                        and controlled by women--
                                  (I) in the aggregate;
                                  (II) through competitions 
                                restricted to small business 
                                concerns;
                                  (III) through competitions 
                                restricted using the authority 
                                under section 8(m)(2);
                                  (IV) through competitions 
                                restricted using the authority 
                                under section 8(m)(2) and in 
                                which the waiver authority 
                                under section 8(m)(3) was used;
                                  (V) through sole source 
                                contracts awarded using the 
                                authority under subsection 
                                8(m)(7);
                                  (VI) through sole source 
                                contracts awarded using the 
                                authority under section 
                                8(m)(8);
                                  (VII) by industry for 
                                contracts described in 
                                subclause (III), (IV), (V), or 
                                (VI);
                                  (VIII) through unrestricted 
                                competition;
                                  (IX) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by women for purposes of the 
                                initial contract; and
                                  (X) that were awarded using a 
                                procurement method that 
                                restricted competition to 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, or a subset of any 
                                such concerns; and
                  (F) for the Federal Government, the number, 
                dollar amount, and distribution with respect to 
                the North American Industry Classification 
                System of subcontracts awarded during such 
                fiscal year to 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, provided that such information is 
                publicly available through data systems 
                developed pursuant to the Federal Funding 
                Accountability and Transparency Act of 2006 
                (Public Law 109-282), or otherwise available as 
                provided in paragraph (3).
          (3) Procurement data.--
                  (A) Federal procurement data system.--
                          (i) In general.--To assist in the 
                        implementation of this section, the 
                        Administrator shall have access to 
                        information collected through the 
                        Federal Procurement Data System, 
                        Federal Subcontracting Reporting 
                        System, or any new or successor system.
                          (ii) GSA report.--On the date that 
                        the Administrator makes available the 
                        report required under paragraph (2), 
                        the Administrator of the General 
                        Services Administration shall submit to 
                        the President and Congress, and shall 
                        make available on a public website, a 
                        report in the same form and manner, and 
                        including the same information, as the 
                        report required under paragraph (2). 
                        The report shall include all 
                        procurements made for the period 
                        covered by the report and may not 
                        exclude any contract awarded.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administrator, 
                procurement information collected through 
                agency data collection sources in existence at 
                the time of the request. Contracting agencies 
                shall not be required to establish new data 
                collection systems to provide such data.
  (i) Nothing in this Act or any other provision of law 
precludes exclusive small business set-asides for procurements 
of architectural and engineering services, research, 
development, test and evaluation, and each Federal agency is 
authorized to develop such set-asides to further the interests 
of small business in those areas.
  (j)(1) Each contract for the purchase of goods and services 
that has an anticipated value greater than the micro-purchase 
threshold, but not greater than the simplified acquisition 
threshold shall be reserved exclusively for small business 
concerns unless the contracting officer is unable to obtain 
offers from two or more small business concerns that are 
competitive with market prices and are competitive with regard 
to the quality and delivery of the goods or services being 
purchased.
  (2) In carrying out paragraph (1), a contracting officer 
shall consider a responsive offer timely received from an 
eligible small business offeror.
  (3) Nothing in paragraph (1) shall be construed as precluding 
an award of a contract with a value not greater than $100,000 
under the authority of subsection (a) of section 8 of this Act, 
section 712 of the Business Opportunity Development Reform Act 
of 1988 (Public Law 100-656; 15 U.S.C. 644 note), or section 
7102 of the Federal Acquisition Streamlining Act of 1994.
  (k) There is hereby established in each Federal agency having 
procurement powers an office to be known as the ``Office of 
Small and Disadvantaged Business Utilization''. The management 
of each such office shall be vested in an officer or employee 
of such agency, with experience serving in any combination of 
the following roles: program manager, deputy program manager, 
or assistant program manager for Federal acquisition program; 
chief engineer, systems engineer, assistant engineer, or 
product support manager for Federal acquisition program; 
Federal contracting officer; small business technical advisor; 
contracts administrator for Federal Government contracts; 
attorney specializing in Federal procurement law; small 
business liaison officer; officer or employee who managed 
Federal Government contracts for a small business; or 
individual whose primary responsibilities were for the 
functions and duties of section 8, 15, 31, 36, or 44 of this 
Act. Such officer or employee--
          (1) shall be known as the ``Director of Small and 
        Disadvantaged Business Utilization'' for such agency;
          (2) shall be appointed by the head of such agency to 
        a position that is a Senior Executive Service position 
        (as such term is defined under section 3132(a) of title 
        5, United States Code), except that, for any agency in 
        which the positions of Chief Acquisition Officer and 
        senior procurement executive (as such terms are defined 
        under section 44(a) of this Act) are not Senior 
        Executive Service positions, the Director of Small and 
        Disadvantaged Business Utilization may be appointed to 
        a position compensated at not less than the minimum 
        rate of basic pay payable for grade GS-15 of the 
        General Schedule under section 5332 of such title 
        (including comparability payments under section 5304 of 
        such title);
          (3) shall be responsible only to (including with 
        respect to performance appraisals), and report directly 
        and exclusively to, the head of such agency or to the 
        deputy of such head, except that the Director for the 
        Office of the Secretary of Defense shall be responsible 
        only to (including with respect to performance 
        appraisals), and report directly and exclusively to, 
        such Secretary or the Secretary's designee;
          (4) shall be responsible for the implementation and 
        execution of the functions and duties under sections 8, 
        15, 31, 36, and 44 of this Act which relate to such 
        agency;
          (5) shall identify proposed solicitations that 
        involve significant bundling of contract requirements, 
        and work with the agency acquisition officials and the 
        Administration to revise the procurement strategies for 
        such proposed solicitations where appropriate to 
        increase the probability of participation by small 
        businesses as prime contractors, or to facilitate small 
        business participation as subcontractors and suppliers, 
        if a solicitation for a bundled contract is to be 
        issued;
          (6) shall assist small business concerns to obtain 
        payments, required late payment interest penalties, or 
        information regarding payments due to such concerns 
        from an executive agency or a contractor, in conformity 
        with chapter 39 of title 31, United States Code, or any 
        other protection for contractors or subcontractors 
        (including suppliers) that is included in the Federal 
        Acquisition Regulation or any individual agency 
        supplement to such Government-wide regulation;
          (7) shall have supervisory authority over personnel 
        of such agency to the extent that the functions and 
        duties of such personnel relate to functions and duties 
        under sections 8, 15, 31, 36, and 44 of this Act;
          (8) shall assign a small business technical adviser 
        to each office to which the Administration has assigned 
        a procurement center representative--
                  (A) who shall be a full-time employee of the 
                procuring activity and shall be well qualified, 
                technically trained and familiar with the 
                supplies or services purchased at the activity; 
                and
                  (B) whose principal duty shall be to assist 
                the Administration procurement center 
                representative in his duties and functions 
                relating to sections 8, 15, 31, 36, and 44 of 
                this Act,
          (9) shall cooperate, and consult on a regular basis, 
        with the Administration with respect to carrying out 
        the functions and duties described in paragraph (4) of 
        this subsection;
          (10) shall make recommendations to contracting 
        officers as to whether a particular contract 
        requirement should be awarded pursuant to subsection 
        (a) or section 8, 15, 31, or 36 of this Act, and the 
        failure of the contracting officer to accept any such 
        recommendations shall be documented and included within 
        the appropriate contract file;
          (11) shall review and advise such agency on any 
        decision to convert an activity performed by a small 
        business concern to an activity performed by a Federal 
        employee;
          (12) shall provide to the Chief Acquisition Officer 
        and senior procurement executive of such agency advice 
        and comments on acquisition strategies, market 
        research, and justifications related to section 44 of 
        this Act;
          (13) may provide training to small business concerns 
        and contract specialists, except that such training may 
        only be provided to the extent that the training does 
        not interfere with the Director carrying out other 
        responsibilities under this subsection;
          (14) shall receive unsolicited proposals and, when 
        appropriate, forward such proposals to personnel of the 
        activity responsible for reviewing such proposals;
          (15) shall carry out exclusively the duties 
        enumerated in this Act, and shall, while the Director, 
        not hold any other title, position, or responsibility, 
        except as necessary to carry out responsibilities under 
        this subsection;
          (16) shall submit, each fiscal year, to the Committee 
        on Small Business of the House of Representatives and 
        the Committee on Small Business and Entrepreneurship of 
        the Senate a report describing--
                  (A) the training provided by the Director 
                under paragraph (13) in the most recently 
                completed fiscal year;
                  (B) the percentage of the budget of the 
                Director used for such training in the most 
                recently completed fiscal year;
                  (C) the percentage of the budget of the 
                Director used for travel in the most recently 
                completed fiscal year; and
                  (D) any failure of the agency to comply with 
                section 8, 15, 31, or 36;
          (17) shall, when notified by a small business concern 
        prior to the award of a contract that the small 
        business concern believes that a solicitation, request 
        for proposal, or request for quotation unduly restricts 
        the ability of the small business concern to compete 
        for the award--
                  (A) submit the notice of the small business 
                concern to the contracting officer and, if 
                necessary, recommend ways in which the 
                solicitation, request for proposal, or request 
                for quotation may be altered to increase the 
                opportunity for competition;
                  (B) inform the advocate for competition of 
                such agency (as established under section 1705 
                of title 41, United States Code, or section 
                2318 of title 10, United States Code) of such 
                notice; and
                  (C) ensure that the small business concern is 
                aware of other resources and processes 
                available to address unduly restrictive 
                provisions in a solicitation, request for 
                proposal, or request for quotation, even if 
                such resources and processes are provided by 
                such agency, the Administration, the 
                Comptroller General, or a procurement technical 
                assistance program established under chapter 
                142 of title 10, United States Code;
          (18) shall review summary data provided by purchase 
        card issuers of purchases made by the agency greater 
        than the micro-purchase threshold (as defined under 
        section 1902 of title 41, United Stated Code) and less 
        than the simplified acquisition threshold to ensure 
        that the purchases have been made in compliance with 
        the provisions of this Act and have been properly 
        recorded in the Federal Procurement Data System, if the 
        method of payment is a purchase card issued by the 
        Department of Defense pursuant to section 2784 of title 
        10, United States Code, or by the head of an executive 
        agency pursuant to section 1909 of title 41, United 
        States Code;
          (19) shall provide assistance to a small business 
        concern awarded a contract or subcontract under this 
        Act or under title 10 or title 41, United States Code, 
        in finding resources for education and training on 
        compliance with contracting regulations (including the 
        Federal Acquisition Regulation) after award of such a 
        contract or subcontract; and
          (20) shall review all subcontracting plans required 
        by paragraph (4) or (5) of section 8(d) to ensure that 
        the plan provides maximum practicable opportunity for 
        small business concerns to participate in the 
        performance of the contract to which the plan applies.
This subsection shall not apply to the Administration.
  (l) Procurement Center Representatives.--
          (1) Assignment and role.--The Administrator shall 
        assign to each major procurement center a procurement 
        center representative with such assistance as may be 
        appropriate.
          (2) Activities.--A procurement center representative 
        is authorized to--
          (A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        as to whether requirements are to be procured through 
        other than full and open competition and make 
        recommendations with respect to such requirements to 
        the members of such conference or session;
                  (B) review, at any time, barriers to small 
                business participation in Federal contracting 
                previously imposed on goods and services 
                through acquisition method coding or similar 
                procedures, and recommend to personnel of the 
                appropriate activity the prompt reevaluation of 
                such barriers;
                  (C) review barriers to small business 
                participation in Federal contracting arising 
                out of restrictions on the rights of the United 
                States in technical data, and, when 
                appropriate, recommend that personnel of the 
                appropriate activity initiate a review of the 
                validity of such an asserted restriction;
                  (D) review any bundled or consolidated 
                solicitation or contract in accordance with 
                this Act;
                  (E) have access to procurement records and 
                other data of the procurement center 
                commensurate with the level of such 
                representative's approved security clearance 
                classification, with such data provided upon 
                request in electronic format, when available;
                  (F) receive unsolicited proposals from small 
                business concerns and transmit such proposals 
                to personnel of the activity responsible for 
                reviewing such proposals, who shall furnish the 
                procurement center representative with 
                information regarding the disposition of any 
                such proposal;
                  (G) consult with the Director the Office of 
                Small and Disadvantaged Business Utilization of 
                that agency and the agency personnel described 
                in paragraph (7) and (8) of subsection (k) with 
                regard to agency insourcing decisions covered 
                by subsection (k)(11);
                  (H) be an advocate for the maximum 
                practicable utilization of small business 
                concerns in Federal contracting, including by 
                advocating against the consolidation or 
                bundling of contract requirements when not 
                justified;
                  (I) assist small business concerns with 
                finding resources for education and training on 
                compliance with contracting regulations 
                (including the Federal Acquisition Regulation) 
                after award of a contract or subcontract; and
                  (J) carry out any other responsibility 
                assigned by the Administrator.
          (3) Appeals.--A procurement center representative is 
        authorized to appeal the failure to act favorably on 
        any recommendation made pursuant to paragraph (2). Such 
        appeal shall be filed and processed in the same manner 
        and subject to the same conditions and limitations as 
        an appeal filed by the Administrator pursuant to 
        subsection (a).
  (4) The Administration shall assign and co-locate at least 
two small business technical advisers to each major procurement 
center in addition to such other advisers as may be authorized 
from time to time. The sole duties of such advisers shall be to 
assist the procurement center representative for the center to 
which such advisers are assigned in carrying out the functions 
described in paragraph (2) and the representatives referred to 
in subsection (k)(6).
          (5) Position requirements.--
                  (A) In general.--A procurement center 
                representative assigned under this subsection 
                shall--
                          (i) be a full-time employee of the 
                        Administration;
                          (ii) be fully qualified, technically 
                        trained, and familiar with the goods 
                        and services procured by the major 
                        procurement center to which that 
                        representative is assigned; and
                          (iii) have the certification 
                        described in subparagraph (C).
                  (B) Compensation.--The Administrator shall 
                establish personnel positions for procurement 
                center representatives assigned under this 
                subsection, which are classified at a grade 
                level of the General Schedule sufficient to 
                attract and retain highly qualified personnel.
                  (C) Certification requirements.--
                          (i) In general.--Consistent with the 
                        requirements of clause (ii), a 
                        procurement center representative shall 
                        have a Level III Federal Acquisition 
                        Certification in Contracting (or any 
                        successor certification) or the 
                        equivalent Department of Defense 
                        certification, except that 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 without the required 
                        certification.
                          (ii) Delay of certification 
                        requirements.--
                                  (I) Timing.--The 
                                certification described in 
                                clause (i) is not required for 
                                any person serving as a 
                                procurement center 
                                representative until the date 
                                that is one calendar year after 
                                the date such person is 
                                appointed as a procurement 
                                center representative.
                                  (II) Application.--The 
                                requirements of subclause (I) 
                                shall--
                                          (aa) be included in 
                                        any initial job posting 
                                        for the position of a 
                                        procurement center 
                                        representative; and
                                          (bb) apply to any 
                                        person appointed as a 
                                        procurement center 
                                        representative after 
                                        January 3, 2013.
          (6) Major procurement center defined.--For purposes 
        of this subsection, the term ``major procurement 
        center'' means a procurement center that, in the 
        opinion of the Administrator, purchases substantial 
        dollar amounts of goods or services, including goods or 
        services that are commercially available.
          (7) Training.--
                  (A) Authorization.--At such times as the 
                Administrator deems appropriate, the breakout 
                procurement center representative shall conduct 
                familiarization sessions for contracting 
                officers and other appropriate personnel of the 
                procurement center to which such representative 
                is assigned. Such sessions shall acquaint the 
                participants with the provisions of this 
                subsection and shall instruct them in methods 
                designed to further the purposes of such 
                subsection.
                  (B) Limitation.--A procurement center 
                representative may provide training under 
                subparagraph (A) only to the extent that the 
                training does not interfere with the 
                representative carrying out other activities 
                under this subsection.
          (8) Annual briefing and report.--A procurement center 
        representative shall prepare and personally deliver an 
        annual briefing and report to the head of the 
        procurement center to which such representative is 
        assigned. Such briefing and report shall detail the 
        past and planned activities of the representative and 
        shall contain such recommendations for improvement in 
        the operation of the center as may be appropriate. The 
        head of such center shall personally receive such 
        briefing and report and shall, within 60 calendar days 
        after receipt, respond, in writing, to each 
        recommendation made by such representative.
          (9) Scope of review.--The Administrator--
                  (A) may not limit the scope of review by the 
                procurement center representative for any 
                solicitation of a contract or task order 
                without regard to whether the contract or task 
                order or part of the contract or task order is 
                set aside for small business concerns, whether 
                1 or more contracts or task order awards are 
                reserved for small business concerns under a 
                multiple award contract, or whether or not the 
                solicitation would result in a bundled or 
                consolidated contract (as defined in subsection 
                (s)) or a bundled or consolidated task order; 
                and
                  (B) shall, unless the contracting agency 
                requests a review, limit the scope of review by 
                the procurement center representative for any 
                solicitation of a contract or task order if 
                such solicitation is awarded by or for the 
                Department of Defense and--
                          (i) is conducted pursuant to section 
                        22 of the Arms Export Control Act (22 
                        U.S.C. 2762);
                          (ii) is a humanitarian operation as 
                        defined in section 401(e) of title 10, 
                        United States Code;
                          (iii) is for a contingency operation, 
                        as defined in section 101(a)(13) of 
                        title 10, United States Code;
                          (iv) is to be awarded pursuant to an 
                        agreement with the government of a 
                        foreign country in which Armed Forces 
                        of the United States are deployed; or
                          (v) both the place of award and the 
                        place of performance are outside of the 
                        United States and its territories.
  (m) Additional Duties of Procurement Center 
Representatives.--All procurement center representatives 
(including those referred to in subsection (k)(6)), in addition 
to such other duties as may be assigned by the Administrator, 
shall increase, insofar as possible, the number and dollar 
value of procurements that may be used for the programs 
established under this section and section 8(a).
  (n) For purposes of this section, the determination of labor 
surplus areas shall be made on the basis of the criteria in 
effect at the time of the determination, except that any 
minimum population criteria shall not exceed twenty-five 
thousand. Such determination, as modified by the preceding 
sentence, shall be made by the Secretary of Labor.
  (o) Limitations on Subcontracting.--A concern may not be 
awarded a contract under subsection (a) as a small business 
concern unless the concern agrees to satisfy the requirements 
of section 46.
  (p) Access to Data.--
          (1) Bundled contract defined.--In this subsection, 
        the term ``bundled contract'' has the meaning given 
        such term in section 3(o)(1).
          (2) Database.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this 
                subsection, the Administrator of the Small 
                Business Administration shall develop and shall 
                thereafter maintain a database containing data 
                and information regarding--
                          (i) each bundled contract awarded by 
                        a Federal agency; and
                          (ii) each small business concern that 
                        has been displaced as a prime 
                        contractor as a result of the award of 
                        such a contract.
          (3) Analysis.--For each bundled contract that is to 
        be recompeted as a bundled contract, the Administrator 
        shall determine--
                  (A) the amount of savings and benefits (in 
                accordance with subsection (e)) achieved under 
                the bundling of contract requirements; and
                  (B) whether such savings and benefits will 
                continue to be realized if the contract remains 
                bundled, and whether such savings and benefits 
                would be greater if the procurement 
                requirements were divided into separate 
                solicitations suitable for award to small 
                business concerns.
          (4) Annual report on contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of the enactment of this paragraph, 
                and annually in March thereafter, the 
                Administration shall transmit a report on 
                contract bundling to the Committees on Small 
                Business of the House of Representatives and 
                the Senate.
                  (B) Contents.--Each report transmitted under 
                subparagraph (A) shall include--
                          (i) data on the number, arranged by 
                        industrial classification, of small 
                        business concerns displaced as prime 
                        contractors as a result of the award of 
                        bundled contracts by Federal agencies; 
                        and
                          (ii) a description of the activities 
                        with respect to previously bundled 
                        contracts of each Federal agency during 
                        the preceding year, including--
                                  (I) data on the number and 
                                total dollar amount of all 
                                contract requirements that were 
                                bundled; and
                                  (II) with respect to each 
                                bundled contract, data or 
                                information on--
                                          (aa) the 
                                        justification for the 
                                        bundling of contract 
                                        requirements;
                                          (bb) the cost savings 
                                        realized by bundling 
                                        the contract 
                                        requirements over the 
                                        life of the contract;
                                          (cc) the extent to 
                                        which maintaining the 
                                        bundled status of 
                                        contract requirements 
                                        is projected to result 
                                        in continued cost 
                                        savings;
                                          (dd) the extent to 
                                        which the bundling of 
                                        contract requirements 
                                        complied with the 
                                        contracting agency's 
                                        small business 
                                        subcontracting plan, 
                                        including the total 
                                        dollar value awarded to 
                                        small business concerns 
                                        as subcontractors and 
                                        the total dollar value 
                                        previously awarded to 
                                        small business concerns 
                                        as prime contractors; 
                                        and
                                          (ee) the impact of 
                                        the bundling of 
                                        contract requirements 
                                        on small business 
                                        concerns unable to 
                                        compete as prime 
                                        contractors for the 
                                        consolidated 
                                        requirements and on the 
                                        industries of such 
                                        small business 
                                        concerns, including a 
                                        description of any 
                                        changes to the 
                                        proportion of any such 
                                        industry that is 
                                        composed of small 
                                        business concerns.
          (5) Access to data.--
                  (A) Federal procurement data system.--To 
                assist in the implementation of this section, 
                the Administration shall have access to 
                information collected through the Federal 
                Procurement Data System.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administration, 
                procurement information collected through 
                existing agency data collection sources.
  (q) Reports Related to Procurement Center Representatives.--
          (1) Teaming and joint venture requirements.--
                  (A) In general.--Each Federal agency shall 
                include in each solicitation for any multiple 
                award contract above the substantial bundling 
                threshold of the Federal agency a provision 
                soliciting bids from any responsible source, 
                including responsible small business concerns 
                and teams or joint ventures of small business 
                concerns.
                  (B) Teams.--When evaluating an offer of a 
                small business prime contractor that 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 small business prime contractor.
                  (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 
                demonstrate 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.
          (2) Policies on reduction of contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this subsection, the 
                Federal Acquisition Regulatory Council 
                established under section 25(a) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 
                4219(a)) shall amend the Federal Acquisition 
                Regulation issued under section 25 of such Act 
                to--
                          (i) establish a Government-wide 
                        policy regarding contract bundling, 
                        including regarding the solicitation of 
                        teaming and joint ventures under 
                        paragraph (1); and
                          (ii) require that the policy 
                        established under clause (i) be 
                        published on the website of each 
                        Federal agency.
                  (B) Rationale for contract bundling.--Not 
                later than 30 days after the date on which the 
                head of a Federal agency submits data 
                certifications to the Administrator for Federal 
                Procurement Policy, the head of the Federal 
                agency shall publish on the website of the 
                Federal agency a list and rationale for any 
                bundled contract for which the Federal agency 
                solicited bids or that was awarded by the 
                Federal agency.
          (3) Reporting.--Not later than 90 days after the date 
        of enactment of this subsection, and every 3 years 
        thereafter, the Administrator shall submit to the 
        Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House 
        of Representatives a report regarding procurement 
        center representatives and commercial market 
        representatives, which shall--
                  (A) identify each area for which the 
                Administration has assigned a procurement 
                center representative or a commercial market 
                representative;
                  (B) explain why the Administration selected 
                the areas identified under subparagraph (A); 
                and
                  (C) describe the activities performed by 
                procurement center representatives and 
                commercial market representatives.
  (r) Multiple Award Contracts.--Not later than 1 year after 
the date of enactment of this subsection, the Administrator for 
Federal Procurement Policy and the Administrator, in 
consultation with the Administrator of General Services, shall, 
by regulation, establish guidance under which Federal agencies 
may, at their discretion--
          (1) set aside part or parts of a multiple award 
        contract for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);
          (2) notwithstanding the fair opportunity requirements 
        under section 2304c(b) of title 10, United States Code, 
        and section 303J(b) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 
        253j(b)), set aside orders placed against multiple 
        award contracts for small business concerns, including 
        the subcategories of small business concerns identified 
        in subsection (g)(2); and
          (3) reserve 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small 
        business concerns identified in subsection (g)(2).
  (s) Data Quality Improvement Plan.--
          (1) In general.--Not later than October 1, 2015, the 
        Administrator of the Small Business Administration, in 
        consultation with the Small Business Procurement 
        Advisory Council, the Administrator for Federal 
        Procurement Policy, and the Administrator of General 
        Services, shall develop a plan to improve the quality 
        of data reported on bundled or consolidated contracts 
        in the Federal procurement data system (described in 
        section 1122(a)(4)(A) of title 41, United States Code).
          (2) Plan requirements.--The plan shall--
                  (A) describe the roles and responsibilities 
                of the Administrator of the Small Business 
                Administration, each Director of Small and 
                Disadvantaged Business Utilization, the 
                Administrator for Federal Procurement Policy, 
                the Administrator of General Services, senior 
                procurement executives, and Chief Acquisition 
                Officers in--
                          (i) improving the quality of data 
                        reported on bundled or consolidated 
                        contracts in the Federal procurement 
                        data system; and
                          (ii) contributing to the annual 
                        report required by subsection (p)(4);
                  (B) recommend changes to policies and 
                procedures, including training procedures of 
                relevant personnel, to properly identify and 
                mitigate the effects of bundled or consolidated 
                contracts;
                  (C) recommend requirements for periodic and 
                statistically valid data verification and 
                validation; and
                  (D) recommend clear data verification 
                responsibilities.
          (3) Plan submission.--The Administrator of the Small 
        Business Administration shall submit the plan to the 
        Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate not later than December 
        1, 2016.
          (4) Implementation.--Not later than October 1, 2016, 
        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 a certification of 
        the accuracy and completeness of data reported on 
        bundled and consolidated contracts.
          (6) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Chief acquisition officer; senior 
                procurement executive.--The terms ``Chief 
                Acquisition Officer'' and ``senior procurement 
                executive'' have the meanings given such terms 
                in section 44(a) of this Act.
                  (B) Bundled or consolidated contract.--The 
                term ``bundled or consolidated contract'' means 
                a bundled contract (as defined in section 3(o)) 
                or a contract resulting from the consolidation 
                of contracting requirements (as defined in 
                section 44(a)(2)).
  (t) GAO Report on Small Business Administration Programs in 
Puerto Rico.--Not later than one year after the date of 
enactment of this subsection, the Comptroller General of the 
United States shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report on the 
application and utilization of contracting activities of the 
Administration (including contracting activities relating to 
HUBZone small business concerns) in Puerto Rico. The report 
shall also identify any provisions of Federal law that may 
create an obstacle to the efficient implementation of such 
contracting activities.
  (u) Post-Award Compliance Resources.--The Administrator shall 
provide to small business development centers and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, 
United States Code, and shall make available on the website of 
the Administration, a list of resources for small business 
concerns seeking education and assistance on compliance with 
contracting regulations (including the Federal Acquisition 
Regulation) after award of a contract or subcontract.
  (v) Regulatory Changes and Training Materials.--Not less than 
annually, the Administrator shall provide to the Defense 
Acquisition University (established under section 1746 of title 
10, United States Code), the Federal Acquisition Institute 
(established under section 1201 of title 41, United States 
Code), the individual responsible for mandatory training and 
education of the acquisition workforce of each agency 
(described under section 1703(f)(1)(C) of title 41, United 
States Code), small business development centers, and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, 
United States Code--
          (1) a list of all changes made in the prior year to 
        regulations promulgated--
                  (A) by the Administrator that affect Federal 
                acquisition; and
                  (B) by the Federal Acquisition Council that 
                implement amendments to this Act; and
          (2) any materials the Administrator has developed 
        that explain, train, or assist Federal agencies or 
        departments or small business concerns with compliance 
        with the regulations described in paragraph (1).
  (w) Solicitation Notice Regarding Administration of Change 
Orders for Construction.--
          (1) In general.--With respect to any solicitation for 
        the award of a contract for construction anticipated to 
        be awarded to a small business concern, the agency 
        administering such contract shall provide a notice 
        along with the solicitation to prospective bidders and 
        offerors that includes--
                  (A) information about the agency's policies 
                or practices in complying with the requirements 
                of the Federal Acquisition Regulation relating 
                to the timely definitization of requests for an 
                equitable adjustment; and
                  (B) information about the agency's past 
                performance in definitizing requests for 
                equitable adjustments in accordance with 
                paragraph (2).
          (2) Requirements for agencies.--An agency shall 
        provide the past performance information described 
        under paragraph (1)(B) as follows:
                  (A) For the 3-year period preceding the 
                issuance of the notice, to the extent such 
                information is available.
                  (B) With respect to an agency that, on the 
                date of the enactment of this subsection, has 
                not compiled the information described under 
                paragraph (1)(B)--
                          (i) beginning 1 year after the date 
                        of the enactment of this subsection, 
                        for the 1-year period preceding the 
                        issuance of the notice;
                          (ii) beginning 2 years after the date 
                        of the enactment of this subsection, 
                        for the 2-year period preceding the 
                        issuance of the notice; and
                          (iii) beginning 3 years after the 
                        date of the enactment of this 
                        subsection and each year thereafter, 
                        for the 3-year period preceding the 
                        issuance of the notice.
          (3) Format of past performance information.--In the 
        notice required under paragraph (1), the agency shall 
        ensure that the past performance information described 
        under paragraph (1)(B) is set forth separately for each 
        definitization action that was completed during the 
        following periods:
                  (A) Not more than 30 days after receipt of a 
                request for an equitable adjustment.
                  (B) Not more than 60 days after receipt of a 
                request for an equitable adjustment.
                  (C) Not more than 90 days after receipt of a 
                request for an equitable adjustment.
                  (D) Not more than 180 days after receipt of a 
                request for an equitable adjustment.
                  (E) Not more than 365 days after receipt of a 
                request for an equitable adjustment.
                  (F) More than 365 days after receipt of a 
                request for an equitable adjustment.
                  (G) After the completion of the performance 
                of the contract through a contract modification 
                addressing all undefinitized requests for an 
                equitable adjustment received during the term 
                of the contract.
  (x) Small Business Credit for Puerto Rico Businesses.--
          (1) Credit for meeting contracting goals.--If an 
        agency awards a prime contract to Puerto Rico business 
        during the period beginning on the date of enactment of 
        this subsection and ending on the date that is 4 years 
        after such date of enactment, the value of the contract 
        shall be doubled for purposes of determining compliance 
        with the goals for procurement contracts under 
        subsection (g)(1)(A)(i) during such period.
          (2) Report.--Along with the report required under 
        subsection (h)(1), the head of each Federal agency 
        shall submit to the Administrator, and make publicly 
        available on the scorecard described in section 868(b) 
        of the National Defense Authorization Act for Fiscal 
        Year 2016 (15 U.S.C. 644 note), an analysis of the 
        number and dollar amount of prime contracts awarded 
        pursuant to paragraph (1) for each fiscal year of the 
        period described in such paragraph.

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