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Corrective Action Report Oversight and Accountability Act

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Congressional materials
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Crpt 118Hrpt176
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Crpt 118Hrpt176

Summary

House Report 118–176 of the 118th Congress, 1st Session, submitted September 1, 2023 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 4671, the Corrective Action Report Oversight and Accountability Act. The committee reports the bill favorably without amendment and recommends that it pass. The report states that the bill amends the Small Business Act to clarify the information agencies must include in annual reports on small business contracting and to require their views on what worked and what did not. It records a May 11, 2023 hearing and a July 18, 2023 markup at which no amendments were offered, and gives a section-by-section summary and the committee's required statements. The report closes by showing the changes the bill makes to existing law, including scorecard provisions under Sec. 15 of the Small Business Act.

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                                      118TH CONGRESS                                                                                           REPORT
                                                     " HOUSE OF REPRESENTATIVES                                                        !
                                         1st Session                                                                                           118–176




                                                 CORRECTIVE ACTION REPORT OVERSIGHT AND
                                                           ACCOUNTABILITY ACT


                                      SEPTEMBER 1, 2023.—Committed to the Committee of the Whole House on the State
                                                         of the Union and ordered to be printed



                                           Mr. WILLIAMS of Texas, from the Committee on Small Business,
                                                             submitted the following


                                                                                      R E P O R T
                                                                                  [To accompany H.R. 4671]

                                        The Committee on Small Business, to whom was referred the bill
                                      (H.R. 4671) to amend the Small Business Act to standardize report-
                                      ing on procurement goals for small business concerns, and for other
                                      purposes, having considered the same, reports favorably thereon
                                      without amendment and recommends that the bill do pass.
                                                                                             CONTENTS
                                                                                                                                                                 Page
                                           I. Purpose and Bill Summary ........................................................................                    1
                                          II. Need for Legislation ....................................................................................            2
                                         III. Hearings .......................................................................................................     2
                                         IV. Committee Consideration ...........................................................................                   2
                                          V. Committee Votes .........................................................................................             2
                                         VI. Section-by-Section of H.R. 4671 .................................................................                     5
                                        VII. Congressional Budget Office Cost Estimate .............................................                               5
                                       VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                                     5
                                         IX. Oversight Findings & Recommendations ..................................................                               5
                                          X. Performance Goals and Objectives ............................................................                         5
                                         XI. Statement of Duplication of Federal Programs ........................................                                 6
                                        XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
                                                Benefits .....................................................................................................     6
                                       XIII. Federal Mandates Statement .....................................................................                      6
                                        XIV. Federal Advisory Committee Statement ...................................................                              6
                                         XV. Applicability to Legislative Branch ...........................................................                       6
                                        XVI. Statement of Constitutional Authority ......................................................                          6
                                       XVII. Changes in Existing Law, Made by the Bill, As Reported ......................                                         6

                                                                        I. PURPOSE AND BILL SUMMARY
                                        H.R. 4671 was introduced by Rep. Gluesenkamp Perez (D–WA)
                                      and Rep. Meuser (R–PA) on July 17, 2023. The purpose of H.R.
                                      4671, the ‘‘Corrective Action Report Oversight and Accountability
                                            39–006




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                                                                                          2

                                      Act,’’ is to amend the small business act to clarify the kinds of in-
                                      formation that agencies must submit with respect to annual re-
                                      ports on small business contracting activities. It also requires agen-
                                      cies to include their views on what worked and what did not work
                                      in their effort to increase contracts awarded to small businesses.
                                                                     II. NEED FOR LEGISLATION
                                        Federal agencies are required to submit corrective action reports
                                      on an annual basis. These reports are expected to break down the
                                      number of awards and contracts that the government issues to var-
                                      ious types of small businesses. This legislation clarifies the kinds
                                      of information that agencies submit in these annual reports. It also
                                      requires agencies to include their views on what worked and what
                                      did not work in their effort to increase small business contracting.
                                        The federal government has historically failed to meet its con-
                                      tracting goals across a broad range of categories of small busi-
                                      nesses. By further clarifying the information that agencies are re-
                                      quired to report, Congress will be better able to conduct oversight
                                      over small business-related contracting. This legislation will also
                                      provide Congress with additional insight into deficiencies and
                                      needs for improvement in federal contracting and procurement
                                      processes.
                                                                               III. HEARINGS
                                        In the 118th Congress, the Committee held one hearing exam-
                                      ining the issues covered in H.R. 4671. On May 11, 2023, the Com-
                                      mittee held a hearing titled ‘‘Leveling the Playing Field: The State
                                      of Small Business Contracting.’’ Hearing witnesses discussed the
                                      importance of certification in the small business procurement, and
                                      delays in bureaucratic processes contribute to the eroding small
                                      business role in the industrial base.
                                                                   IV. COMMITTEE CONSIDERATION
                                        The Committee on Small Business met in open session, with a
                                      quorum being present, on July 18, 2023 and ordered H.R. 4671 re-
                                      ported favorably to the House of Representatives. During the mark-
                                      up no amendments were offered.
                                                                        V. COMMITTEE VOTES
                                         Clause 3(b) of rule XIII of the Rules of the House of Representa-
                                      tives requires the Committee to list the recorded votes on the mo-
                                      tion to report legislation and amendments thereto. The Committee
                                      voted to favorably report H.R. 4671 to the House of Representatives
                                      at 12:05 PM.




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                                                               SECTION-BY-SECTION OF H.R. 4671
                                      Section 1. Short title
                                        This Act may be cited as the ‘‘Corrective Action Report Oversight
                                      and Accountability Act’’.
                                      Section 2. The standardization of reporting on procurement goals
                                           for small business concerns
                                        This section further specifies the types of information that need
                                      to be added in a corrective action reports. In particular, agencies
                                      are required to break down the number of awards and contracts
                                      given to various types of small businesses. They are also required
                                      to report on deficiencies and improvements in their small business
                                      contracting goals.
                                      Section 3. Compliance with CUTGO
                                        This section does not authorize any additional appropriations for
                                      this bill.
                                                 VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
                                        Pursuant to clause 3(d)(1) of House rule XIII, the Committee
                                      adopts as its own the cost estimate prepared by the Director of the
                                      Congressional Budget Office pursuant to section 402 of the Con-
                                      gressional Budget Act of 1974. The Committee has requested but
                                      not received from the Director of the Congressional Budget Office
                                      a cost estimate for the Committee’s provisions. Once available, the
                                      cost estimate will be published in the Congressional Record.
                                              VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
                                                             AND TAX EXPENDITURES

                                         Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
                                      of Representatives and section 308(a)(I) of the Congressional Budg-
                                      et Act of 1974, the Committee provides the following opinion and
                                      estimate with respect to new budget authority, entitlement author-
                                      ity, 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 pursu-
                                      ant to Sec. 402 of the Congressional Budget Act of 1974, the Com-
                                      mittee does not believe that there will be any additional costs at-
                                      tributable to this legislation. H.R. 4671 does not direct new spend-
                                      ing, but instead reallocates funding independently authorized and
                                      appropriated.
                                                        IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
                                        In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
                                      of rule X of the Rules of the House of Representatives, the over-
                                      sight findings and recommendations of the Committee on Small
                                      Business with respect to the subject matter contained in the H.R.
                                      4671 are incorporated into the descriptive portions of this report.
                                                          X. PERFORMANCE GOALS AND OBJECTIVES
                                        With respect to the requirements of clause 3(c)(1) of rule XIII of
                                      the Rules of the House of Representatives, the performance goals




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                                      and objectives of H.R. 4671 are to require additional reporting re-
                                      quirements including the percentage of total value of contracts,
                                      total value of awards, number of small business concerns awarded,
                                      and the number of small business concerns receiving a contract for
                                      the first time.
                                               XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
                                        Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
                                      of Representatives, no provision of H.R. 4671 is known to be dupli-
                                      cative of another Federal program, including any program that was
                                      included in a report to Congress pursuant to section 21 of Public
                                      Law 111–139 or the most recent Catalog of Federal Domestic As-
                                      sistance.
                                               XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
                                                          AND LIMITED TARIFF BENEFITS

                                        With respect to clause 9 of rule XXI of the Rules of the House
                                      of Representatives, the Committee finds that the bill does not con-
                                      tain any congressional earmarks, limited tax benefits, or limited
                                      tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
                                      the Rules of the House of Representatives.
                                                             XIII. FEDERAL MANDATES STATEMENT
                                        The Committee adopts as its own the estimate of Federal man-
                                      dates prepared by the Director of the Congressional Budget Office
                                      pursuant to section 423 of the Unfunded Mandates Reform Act.
                                                    XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
                                        No advisory committees within the meaning of section 5(b) of the
                                      Federal Advisory Committee Act were created by this legislation.
                                                         XV. APPLICABILITY TO LEGISLATIVE BRANCH
                                        The Committee finds that the legislation does not relate to the
                                      terms and conditions of employment or access to public services or
                                      accommodations within the meaning of section 102(b)(3) of the Con-
                                      gressional Accountability Act.
                                                    XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
                                         Pursuant to clause 7 of Rule XII of the Rules of the House, the
                                      Committee finds that the authority for this legislation in Art. I, § 8,
                                      cl.1 of the Constitution of the United States.
                                      XVII. 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 omit-
                                      ted is enclosed in black brackets, new matter is printed in italics,
                                      and existing law in which no change is proposed is shown in
                                      roman):




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                                            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 omit-
                                      ted is enclosed in black brackets, new matter is printed in italics,
                                      and existing law in which no change is proposed is shown in
                                      roman):
                                                                     SMALL BUSINESS ACT
                                                 *          *         *        *       *       *        *
                                           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 capac-
                                                  ity 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, ex-
                                                  cept that the Administrator shall limit an industry cat-
                                                  egory to a greater extent than provided under the North
                                                  American Industry Classification System codes if the Ad-
                                                  ministrator receives evidence indicating that further seg-
                                                  mentation 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 re-
                                                       quirements; or
                                                          (v) to recognize a new industry.
                                                     (B) EXCEPTION FOR GEOGRAPHIC REQUIREMENTS.—The
                                                  Administrator may not further segment an industry cat-
                                                  egory based on geographic requirements unless—
                                                          (i) the Government typically designates the geo-
                                                       graphic area where work for contracts for goods or
                                                       services is to be performed;
                                                          (ii) Government purchases comprise the major por-
                                                       tion 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 geo-
                                                       graphic area due to the fixed location of facilities, high
                                                       mobilization costs, or similar economic factors.




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                                               (3) DETERMINATIONS WITH RESPECT TO AWARDS OR CON-
                                             TRACTS.—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 con-
                                             tracts or task orders.
                                               (4) INCREASING PRIME CONTRACTING OPPORTUNITIES FOR
                                             SMALL BUSINESS CONCERNS.—
                                                    (A) DESCRIPTION OF COVERED PROPOSED PROCURE-
                                                 MENTS.—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 per-
                                                 formed 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 con-
                                                      cern as a prime contractor unlikely;
                                                         (ii) in the case of a proposed procurement for con-
                                                      struction, seeks to bundle or consolidate discrete con-
                                                      struction projects; or
                                                         (iii) is a solicitation that involves an unnecessary or
                                                      unjustified bundling of contract requirements.
                                                    (B) NOTICE TO PROCUREMENT CENTER REPRESENTA-
                                                 TIVES.—With respect to proposed procurements described
                                                 in subparagraph (A), at least 30 days before issuing a so-
                                                 licitation and concurrent with other processing steps re-
                                                 quired before issuing the solicitation, the contracting agen-
                                                 cy shall provide a copy of the proposed procurement to the
                                                 procurement center representative of the contracting agen-
                                                 cy (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 pro-
                                                      duction 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 con-
                                                      struction, why the proposed procurement cannot be of-
                                                      fered 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 OP-
                                                 PORTUNITIES FOR SMALL BUSINESS CONCERNS.—If the pro-
                                                 curement 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




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                                                 for increasing prime contracting opportunities for small
                                                 business concerns.
                                                    (D) FAILURE TO AGREE ON AN ALTERNATIVE PROCURE-
                                                 MENT 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 agen-
                                                 cy 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 agen-
                                            cy, 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.—Noth-
                                            ing in this subsection shall be construed to change any pref-
                                            erences or priorities established by law with respect to the sale
                                            of electrical power or other property by the Federal Govern-
                                            ment.
                                               (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 Pur-
                                            chase from the Blind and Other Severely Handicapped estab-
                                            lished under the first section of the Act entitled ‘‘An Act to cre-
                                            ate 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 handi-
                                            capped’’ has the same meaning given such term in section 3(e).
                                               (C) The term ‘‘handicapped individual’’ has the same mean-
                                            ing 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 author-
                                      ized under this section in an aggregate amount not to exceed
                                      $40,000,000.
                                         (B) None of the amounts authorized for participation by subpara-
                                      graph (A) may be placed on the procurement list maintained by the
                                      Committee pursuant to section 2 of the Act entitled ‘‘An Act to cre-
                                      ate 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 participa-
                                      tion.
                                         (4)(A) Not later than ten days after the announcement of a pro-
                                      posed award of a contract by an agency or department to a public
                                      or private organization for the handicapped, a for-profit small busi-
                                      ness concern that has experienced or is likely to experience severe




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                                      economic injury as the result of the proposed award may file an ap-
                                      peal 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 in-
                                      clude in its report the amount of the next higher bid submitted by
                                      a for-profit small business concern. The Office of Federal Procure-
                                      ment Policy shall collect data reported under the preceding sen-
                                      tence through the Federal procurement data system and shall re-
                                      port 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 individ-
                                      uals.
                                         (7) Agencies awarding one or more contracts to such an organiza-
                                      tion 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, pro-
                                            curement strategies used by a Federal department or agency
                                            having contracting authority shall facilitate the maximum par-
                                            ticipation of small business concerns as prime contractors, sub-
                                            contractors, and suppliers, and each such Federal department
                                            or agency shall—




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                                                     (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 acquisi-
                                                  tion 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 consoli-
                                                  dated procurement requirements, the head of an agency
                                                  shall conduct market research to determine whether con-
                                                  solidation of the requirements is necessary and justified.
                                                     (B) FACTORS.—For purposes of subparagraph (A), con-
                                                  solidation 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 require-
                                                  ments if not consolidated, the Federal Government would
                                                  derive from the consolidation measurably substantial bene-
                                                  fits, including any combination of benefits that, in com-
                                                  bination, 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 re-
                                                  duction of administrative or personnel costs alone shall not
                                                  be a justification for bundling of contract requirements un-
                                                  less the cost savings are expected to be substantial in rela-
                                                  tion 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 pub-
                                             lished earlier than 7 days after such notice is published. Along
                                             with the publication of the solicitation, the head of a con-
                                             tracting agency shall publish a justification for the determina-
                                             tion, 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 ap-
                                                  proaches 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




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                                                          (ii) the specific actions designed to maximize partici-
                                                       pation of small business concerns as subcontractors
                                                       (including suppliers) at various tiers under the con-
                                                       tract or contracts that are awarded to meet the re-
                                                       quirements.
                                                (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 per-
                                                       formance 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 con-
                                                       tract opportunity, the head of the agency shall con-
                                                       sider 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.—Participa-
                                                  tion of a small business concern in a team or a joint ven-
                                                  ture 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 a small business concern), the Administrator shall estab-
                                             lish regulations—
                                                     (A) allowing the small business concern to elect to use
                                                  the past performance of the joint venture if the small busi-
                                                  ness concern has no relevant past performance of its own;
                                                     (B) requiring the small business concern, when making
                                                  an election under subparagraph (A)—
                                                          (i) to identify to the contracting officer the joint ven-
                                                       ture of which the small business concern was a mem-
                                                       ber; and
                                                          (ii) to inform the contracting officer what duties and
                                                       responsibilities the small business concern carried out
                                                       as part of the joint venture; and




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                                                  (C) requiring a contracting officer, if the small business
                                                concern makes an election under subparagraph (A), to con-
                                                sider the past performance of the joint venture when eval-
                                                uating the past performance of the small business concern,
                                                giving due consideration to the information provided under
                                                subparagraph (B)(ii).
                                        (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 cir-
                                           cumstances described in paragraph (2), the value of the con-
                                           tract 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 es-
                                                tablish Governmentwide goals for procurement contracts
                                                awarded to small business concerns, small business con-
                                                cerns owned and controlled by service-disabled veterans,
                                                qualified HUBZone small business concerns, small busi-
                                                ness concerns owned and controlled by socially and eco-
                                                nomically 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 con-
                                                     tract awards for each fiscal year. In meeting this goal,
                                                     the Government shall ensure the participation of
                                                     small business concerns from a wide variety of indus-
                                                     tries and from a broad spectrum of small business con-
                                                     cerns within each industry.
                                                        (ii) The Governmentwide goal for participation by
                                                     small business concerns owned and controlled by serv-
                                                     ice-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 so-
                                                     cially and economically disadvantaged individuals
                                                     shall be established at not less than 5 percent of the




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                                                                                      14

                                                     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 con-
                                                trolled 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 con-
                                                trolled by women to participate in the performance of con-
                                                tracts let by such agency. The Small Business Administra-
                                                tion and the Administrator for Federal Procurement Policy
                                                shall, when exercising their authority pursuant to para-
                                                graph (2), insure that the cumulative annual prime con-
                                                tract goals for all agencies meet or exceed the annual Gov-
                                                ernmentwide prime contract goal established by the Presi-
                                                dent 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 estab-
                                      lished by the Administration and the head of each Federal agency
                                      and shall realistically reflect the potential of small business con-
                                      cerns, small business concerns owned and controlled by service-dis-
                                      abled veterans, qualified HUBZone small business concerns, small
                                      business concerns owned and controlled by socially and economi-
                                      cally 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 sub-
                                      contract 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 busi-
                                      ness concerns from each industry category in procurement con-
                                      tracts and subcontracts of such agency, including participation by




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                                      small business concerns owned and controlled by service-disabled
                                      veterans, qualified HUBZone small business concerns, small busi-
                                      ness 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 con-
                                           sider—
                                                   (i) contracts awarded as the result of unrestricted com-
                                                petition; and
                                                   (ii) contracts awarded after competition restricted to eli-
                                                gible small business concerns under this section and under
                                                the program established under section 8(a).
                                              (F)(i) Each procurement employee or program manager de-
                                           scribed 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 de-
                                                scribed in this clause is a senior procurement executive,
                                                senior program manager, or Director of Small and Dis-
                                                advantaged Business Utilization of a Federal agency hav-
                                                ing 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 con-
                                      trolled by service disabled veterans, qualified HUBZone small busi-
                                      ness concerns, small business concerns owned and controlled by so-
                                      cially and economically disadvantaged individuals, and small busi-
                                      ness 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 AWARD-
                                      ED TO SMALL BUSINESS CONCERNS.—
                                              (1) AGENCY REPORTS.—At the conclusion of each fiscal year,
                                           the head of each Federal agency shall submit to the Adminis-
                                           trator a report describing—
                                                   (A) the extent of the participation by small business con-
                                                cerns, small business concerns owned and controlled by
                                                veterans (including service-disabled veterans), qualified
                                                HUBZone small business concerns, small business con-
                                                cerns owned and controlled by socially and economically
                                                disadvantaged individuals, and small business concerns
                                                owned and controlled by women in the procurement con-
                                                tracts of such agency during such øfiscal year;¿ fiscal year,
                                                including—
                                                         (i) the percentage of the total value of procurement
                                                      contracts awarded to each such type of small business
                                                      concern described in this subparagraph;
                                                         (ii) the total value of procurement contracts awarded
                                                      to each such concern;
                                                         (iii) the number of small business concerns in each
                                                      such type of small business concern described in this
                                                      subparagraph that was awarded a procurement con-
                                                      tract by the Federal agency; and




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                                                                                      16

                                                         (iv) the number of each such concern awarded a pro-
                                                       curement contract by the Federal agency for the first
                                                       time;
                                                     (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,
                                                  including a discussion of the actions taken to implement
                                                  previously proposed practices to meet such goals and an
                                                  analysis of the efficacy of such practices; and
                                                     (D) a remediation plan with proposed new practices to
                                                  better meet such goals, including analysis of factors lead-
                                                  ing 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 para-
                                             graph (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 estab-
                                                  lished under paragraph (1) or (2) of subsection (g) for such
                                                  fiscal year and a description of actions planned by the ap-
                                                  plicable agency to address such failure, including the Ad-
                                                  ministrator’s comments and recommendations on the pro-
                                                  posed remediation plan; øand¿
                                                     (E) a list of the best of the practices described in para-
                                                 graph (1)(C);
                                                     ø(E)¿ (F) 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 busi-
                                                            ness concerns owned and controlled by service-dis-
                                                            abled veterans, qualified HUBZone small business
                                                            concerns, small business concerns owned and con-
                                                            trolled by socially and economically disadvantaged
                                                            individuals, small business concerns owned and




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                                                                                      17

                                                               controlled by women, or a subset of any such con-
                                                               cerns;
                                                            (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 serv-
                                                               ice-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 ini-
                                                               tial 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 eco-
                                                               nomically disadvantaged individuals, small busi-
                                                               ness 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 re-
                                                               sult 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 busi-
                                                               ness concerns owned and controlled by service-dis-
                                                               abled veterans, small business concerns owned
                                                               and controlled by socially and economically dis-
                                                               advantaged 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;




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                                                                                      18

                                                                  (IV) through competitions restricted to small
                                                               business concerns owned and controlled by so-
                                                               cially 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 re-
                                                               sult of the purchase, would no longer be deemed
                                                               to be small business concerns owned and con-
                                                               trolled 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 busi-
                                                               ness concerns owned and controlled by service-dis-
                                                               abled veterans, qualified HUBZone small business
                                                               concerns, small business concerns owned and con-
                                                               trolled by women, or a subset of any such con-
                                                               cerns;
                                                             (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 so-
                                                               cially 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 pur-
                                                               poses of the initial contract;
                                                             (vi) small business concerns owned by a Native Ha-
                                                          waiian 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 so-
                                                               cially 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 Ha-
                                                               waiian Organization for purposes of the initial
                                                               contract;




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                                                                                      19

                                                          (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 so-
                                                            cially 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 Na-
                                                            tive Corporation for purposes of the initial con-
                                                            tract; 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 sub-
                                                            clause (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 busi-
                                                            ness concerns owned and controlled by service-dis-
                                                            abled veterans, qualified HUBZone small business
                                                            concerns, small business concerns owned and con-
                                                            trolled by socially and economically disadvantaged
                                                            individuals, or a subset of any such concerns; and
                                                     ø(F)¿ (G) for the Federal Government, the number, dol-
                                                   lar amount, and distribution with respect to the North
                                                   American Industry Classification System of subcontracts
                                                   awarded during such fiscal year to small business con-
                                                   cerns, small business concerns owned and controlled by
                                                   service-disabled veterans, qualified HUBZone small busi-
                                                   ness concerns, small business concerns owned and con-
                                                   trolled by socially and economically disadvantaged individ-
                                                   uals, and small business concerns owned and controlled by
                                                   women, provided that such information is publicly avail-




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                                                                                      20

                                                 able through data systems developed pursuant to the Fed-
                                                 eral 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 in-
                                                      formation collected through the Federal Procurement
                                                      Data System, Federal Subcontracting Reporting Sys-
                                                      tem, or any new or successor system.
                                                         (ii) GSA REPORT.—On the date that the Adminis-
                                                      trator makes available the report required under para-
                                                      graph (2), the Administrator of the General Services
                                                      Administration shall submit to the President and Con-
                                                      gress, 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 procure-
                                                      ments 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 con-
                                                 tracting agency shall provide, upon request of the Adminis-
                                                 trator, procurement information collected through agency
                                                 data collection sources in existence at the time of the re-
                                                 quest. Contracting agencies shall not be required to estab-
                                                 lish new data collection systems to provide such data.
                                               (4) BEST IN CLASS SMALL BUSINESS PARTICIPATION REPORT-
                                             ING.—
                                                    (A) ADDENDUM.—In addition to the requirements under
                                                 paragraph (2) and for each best in class designation, the
                                                 Administrator shall include in the report required by such
                                                 paragraph—
                                                         (i) the total amount of spending Governmentwide in
                                                      such designation; and
                                                         (ii) the number of small business concerns awarded
                                                      contracts and the dollar amount of such contracts
                                                      awarded within each such designation to each of the
                                                      following—
                                                               (I) qualified HUBZone small business concerns;
                                                               (II) small business concerns owned and con-
                                                            trolled by women;
                                                               (III) small business concerns owned and con-
                                                            trolled by service-disabled veterans; and
                                                               (IV) small business concerns owned and con-
                                                            trolled by socially and economically disadvantaged
                                                            individuals.
                                                    (B) BEST IN CLASS DEFINED.—The term ‘‘best in class’’
                                                 has the meaning given such term by the Director of the
                                                 Office of Management and Budget.
                                                    (C) EFFECTIVE DATE.—The Administrator shall report on
                                                 the information described by subparagraph (A) beginning
                                                 on the date that such information is available in the Fed-




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                                                                                      21

                                                 eral Procurement Data System, the System for Award
                                                 Management, or any successor to such systems.
                                         (i) Nothing in this Act or any other provision of law precludes ex-
                                      clusive small business set-asides for procurements of architectural
                                      and engineering services, research, development, test and evalua-
                                      tion, 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 thresh-
                                      old, but not greater than the simplified acquisition threshold shall
                                      be reserved exclusively for small business concerns unless the con-
                                      tracting 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 con-
                                      sider a responsive offer timely received from an eligible small busi-
                                      ness 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 (Pub-
                                      lic Law 100–656; 15 U.S.C. 644 note), or section 7102 of the Fed-
                                      eral 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 Fed-
                                      eral acquisition program; Federal contracting officer; small busi-
                                      ness technical advisor; contracts administrator for Federal Govern-
                                      ment 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 Disadvan-
                                            taged Business Utilization’’ for such agency;
                                               (2) shall be appointed by the head of such agency to a posi-
                                            tion 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 Ac-
                                            quisition Officer and senior procurement executive (as such
                                            terms are defined under section 44(a) of this Act) are not Sen-
                                            ior Executive Service positions, the Director of Small and Dis-
                                            advantaged Business Utilization may be appointed to a posi-
                                            tion 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 per-
                                            formance appraisals), and report directly and exclusively to,




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                                             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 perform-
                                             ance 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 signifi-
                                             cant 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 so-
                                             licitation for a bundled contract is to be issued;
                                                (6) shall assist small business concerns to obtain payments,
                                             required late payment interest penalties, or information re-
                                             garding 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 sup-
                                             plement 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 per-
                                             sonnel 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 of-
                                             fice 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 ac-
                                                  tivity; and
                                                     (B) whose principal duty shall be to assist the Adminis-
                                                  tration 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 rec-
                                             ommendations 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 re-
                                             lated to section 44 of this Act;




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                                                (13) may provide training to small business concerns and
                                             contract specialists, except that such training may only be pro-
                                             vided to the extent that the training does not interfere with
                                             the Director carrying out other responsibilities under this sub-
                                             section;
                                                (14) shall receive unsolicited proposals and, when appro-
                                             priate, forward such proposals to personnel of the activity re-
                                             sponsible 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, po-
                                             sition, or responsibility, except as necessary to carry out re-
                                             sponsibilities under this subsection;
                                                (16) shall submit, each fiscal year, to the Committee on
                                             Small Business of the House of Representatives and the Com-
                                             mittee on Small Business and Entrepreneurship of the Senate
                                             a report describing—
                                                     (A) the training provided by the Director under para-
                                                  graph (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 be-
                                             lieves that a solicitation, request for proposal, or request for
                                             quotation unduly restricts the ability of the small business con-
                                             cern 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 3249 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 proc-
                                                  esses are provided by such agency, the Administration, the
                                                  Comptroller General, or a procurement technical assist-
                                                  ance program established under chapter 388 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 ac-
                                             quisition 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 Sys-
                                             tem, if the method of payment is a purchase card issued by the
                                             Department of Defense pursuant to section 4754 of title 10,




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                                                                                      24

                                           United States Code, or by the head of an executive agency pur-
                                           suant 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 edu-
                                           cation and training on compliance with contracting regulations
                                           (including the Federal Acquisition Regulation) after award of
                                           such a contract or subcontract;
                                              (20) shall review all subcontracting plans required by para-
                                           graph (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;
                                              (21) shall consult with the appropriate personnel from the
                                           relevant Federal agency to assist small business concerns par-
                                           ticipating in a SBIR or STTR program under section 9 with re-
                                           searching applicable solicitations for the award of a Federal
                                           contract (particularly with the Federal agency that has a fund-
                                           ing agreement, as defined under section 9, with the concern)
                                           to market the research developed by such concern under such
                                           SBIR or STTR program.
                                      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 rep-
                                           resentative with such assistance as may be appropriate.
                                              (2) ACTIVITIES.—A procurement center representative is au-
                                           thorized 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 ses-
                                           sion;
                                                   (B) review, at any time, barriers to small business par-
                                                ticipation in Federal contracting previously imposed on
                                                goods and services through acquisition method coding or
                                                similar procedures, and recommend to personnel of the ap-
                                                propriate 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 appro-
                                                priate, recommend that personnel of the appropriate activ-
                                                ity initiate a review of the validity of such an asserted re-
                                                striction;
                                                   (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 classi-
                                                fication, with such data provided upon request in elec-
                                                tronic 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




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                                               furnish the procurement center representative with infor-
                                               mation 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 sub-
                                               section (k) with regard to agency insourcing decisions cov-
                                               ered by subsection (k)(11);
                                                  (H) be an advocate for the maximum practicable utiliza-
                                               tion of small business concerns in Federal contracting, in-
                                               cluding by advocating against the consolidation or bun-
                                               dling 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;
                                                  (J) consult with the appropriate personnel from the rel-
                                               evant Federal agency, to assist small business concerns
                                               participating in a SBIR or STTR program under section 9
                                               with Phase III;
                                                  (K) carry out any other responsibility assigned by the
                                               Administrator.
                                             (3) APPEALS.—A procurement center representative is au-
                                           thorized to appeal the failure to act favorably on any rec-
                                           ommendation 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 pro-
                                      curement center representative for the center to which such advis-
                                      ers are assigned in carrying out the functions described in para-
                                      graph (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 famil-
                                                     iar with the goods and services procured by the major
                                                     procurement center to which that representative is as-
                                                     signed; 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




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                                                                                      26

                                                       that any person serving in such a position on or before
                                                       January 3, 2013, may continue to serve in that posi-
                                                       tion for a period of 5 years without the required cer-
                                                       tification.
                                                          (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 rep-
                                                             resentative.
                                                               (II) APPLICATION.—The requirements of sub-
                                                             clause (I) shall—
                                                                     (aa) be included in any initial job posting
                                                                  for the position of a procurement center rep-
                                                                  resentative; and
                                                                     (bb) apply to any person appointed as a pro-
                                                                  curement 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, in-
                                             cluding goods or services that are commercially available.
                                               (7) TRAINING.—
                                                    (A) AUTHORIZATION.—At such times as the Adminis-
                                                  trator 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 as-
                                                  signed. 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 sub-
                                                  section.
                                                    (B) LIMITATION.—A procurement center representative
                                                  may provide training under subparagraph (A) only to the
                                                  extent that the training does not interfere with the rep-
                                                  resentative carrying out other activities under this sub-
                                                  section.
                                               (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 re-
                                             port shall detail the past and planned activities of the rep-
                                             resentative and shall contain such recommendations for im-
                                             provement in the operation of the center as may be appro-
                                             priate. The head of such center shall personally receive such
                                             briefing and report and shall, within 60 calendar days after re-
                                             ceipt, 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




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                                                                                      27

                                                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 so-
                                                licitation would result in a bundled or consolidated con-
                                                tract (as defined in subsection (s)) or a bundled or consoli-
                                                dated task order; and
                                                   (B) shall, unless the contracting agency requests a re-
                                                view, 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 Depart-
                                                ment 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 sec-
                                                     tion 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 perform-
                                                     ance are outside of the United States and its terri-
                                                     tories.
                                         (m) ADDITIONAL DUTIES OF PROCUREMENT CENTER REPRESENTA-
                                      TIVES.—All procurement center representatives (including those re-
                                      ferred 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 sur-
                                      plus areas shall be made on the basis of the criteria in effect at
                                      the time of the determination, except that any minimum popu-
                                      lation criteria shall not exceed twenty-five thousand. Such deter-
                                      mination, 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 con-
                                      cern unless the concern agrees to satisfy the requirements of sec-
                                      tion 46.
                                         (p) ACCESS TO DATA.—
                                              (1) BUNDLED OR CONSOLIDATED CONTRACT DEFINED.—In this
                                            subsection, the term ‘‘bundled or consolidated contract’’ has the
                                            meaning given in subsection (s).
                                              (2) DATABASE.—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 regard-
                                            ing—
                                                   (A) each bundled contract awarded by a Federal agency;
                                                and
                                                   (B) each small business concern that has been displaced
                                                as a prime contractor as a result of the award of such a
                                                contract.




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                                               (3) ANALYSIS.—For each bundled contract that is to be re-
                                             competed as a bundled contract, the Administrator shall deter-
                                             mine—
                                                   (A) the amount of savings and benefits (in accordance
                                                 with subsection (e)) achieved under the bundling of con-
                                                 tract 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 procure-
                                                 ment requirements were divided into separate solicitations
                                                 suitable for award to small business concerns.
                                               (4) ANNUAL REPORT ON BUNDLED OR CONSOLIDATED CON-
                                             TRACTS.—
                                                   (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
                                                 bundled or consolidated contracts to the Committees on
                                                 Small Business of the House of Representatives and the
                                                 Senate.
                                                   (B) CONTENTS.—Each report transmitted under subpara-
                                                 graph (A) shall include—
                                                        (i) data on the number, arranged by industrial clas-
                                                     sification, of small business concerns displaced as
                                                     prime contractors as a result of the award of bundled
                                                     or consolidated contracts by Federal agencies; and
                                                        (ii) a description of the activities with respect to pre-
                                                     viously bundled or consolidated contracts of each Fed-
                                                     eral agency during the preceding year, including—
                                                              (I) data on the number and total dollar amount
                                                           of all contract requirements that were included in
                                                           bundled or consolidated contracts; and
                                                              (II) with respect to each bundled or consolidated
                                                           contract, data or information on—
                                                                   (aa) the justification for the bundling of con-
                                                                 tract requirements or the consolidation of con-
                                                                 tract requirements (as applicable);
                                                                   (bb) the cost savings realized by the bun-
                                                                 dling of contract requirements or the consoli-
                                                                 dation of contract requirements (as applica-
                                                                 ble) over the life of the contract;
                                                                   (cc) the extent to which maintaining con-
                                                                 tract requirements in a bundled or consoli-
                                                                 dated contract is projected to result in contin-
                                                                 ued cost savings;
                                                                   (dd) the extent to which the bundling of
                                                                 contract requirements or the consolidation of
                                                                 contract requirements (as applicable) com-
                                                                 plied with the contracting agency’s small busi-
                                                                 ness subcontracting plan, including the total
                                                                 dollar value awarded to small business con-
                                                                 cerns 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 or the consolidation of contract




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                                                                                      29

                                                              requirements (as applicable) on small busi-
                                                              ness concerns unable to compete as prime
                                                              contractors for the contract and on the indus-
                                                              tries of such small business concerns, includ-
                                                              ing a description of any changes to the propor-
                                                              tion 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 Fed-
                                              eral Procurement Data System.
                                                 (B) AGENCY PROCUREMENT DATA SOURCES.—To assist in
                                              the implementation of this section, the head of each con-
                                              tracting agency shall provide to the Administrator data
                                              and information described in paragraphs (2) and (4).
                                        (q) REPORTS RELATED TO PROCUREMENT CENTER REPRESENTA-
                                      TIVES.—
                                            (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, in-
                                              cluding responsible small business concerns and teams or
                                              joint ventures of small business concerns.
                                                 (B) TEAMS.—When evaluating an offer of a small busi-
                                              ness prime contractor that includes a proposed team of
                                              small business subcontractors for any multiple award con-
                                              tract above the substantial bundling threshold of the Fed-
                                              eral agency, the head of the agency shall consider the ca-
                                              pabilities and past performance of each first tier subcon-
                                              tractor 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 dem-
                                              onstrate 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 per-
                                              formance of each member of the joint venture as the capa-
                                              bilities 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 Reg-
                                              ulatory Council established under section 25(a) of the Of-
                                              fice 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.




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                                                                                      30

                                                   (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 agen-
                                                cy shall publish on the website of the Federal agency a list
                                                and rationale for any bundled contract for which the Fed-
                                                eral agency solicited bids or that was awarded by the Fed-
                                                eral agency.
                                              (3) REPORTING.—Not later than 90 days after the date of en-
                                           actment of this subsection, and every 3 years thereafter, the
                                           Administrator shall submit to the Committee on Small Busi-
                                           ness and Entrepreneurship of the Senate and the Committee
                                           on Small Business of the House of Representatives a report re-
                                           garding 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 com-
                                                mercial 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 representa-
                                                tives.
                                        (r) MULTIPLE AWARD CONTRACTS.—Not later than 1 year after
                                      the date of enactment of this subsection, the Administrator for Fed-
                                      eral Procurement Policy and the Administrator, in consultation
                                      with the Administrator of General Services, shall, by regulation, es-
                                      tablish guidance under which Federal agencies may, at their dis-
                                      cretion—
                                              (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 3406(c) 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 sub-
                                           section (g)(2); and
                                              (3) reserve 1 or more contract awards for small business con-
                                           cerns under full and open multiple award procurements, in-
                                           cluding 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 Admin-
                                           istrator of the Small Business Administration, in consultation
                                           with the Small Business Procurement Advisory Council, the
                                           Administrator for Federal Procurement Policy, and the Admin-
                                           istrator of General Services, shall develop a plan to improve
                                           the quality of data reported on bundled or consolidated con-
                                           tracts 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 Admin-
                                                istrator of the Small Business Administration, each Direc-




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                                                                                      31

                                                 tor of Small and Disadvantaged Business Utilization, the
                                                 Administrator for Federal Procurement Policy, the Admin-
                                                 istrator of General Services, senior procurement execu-
                                                 tives, 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, in-
                                                 cluding training procedures of relevant personnel, to prop-
                                                 erly identify and mitigate the effects of bundled or consoli-
                                                 dated contracts;
                                                    (C) recommend requirements for periodic and statis-
                                                 tically valid data verification and validation; and
                                                    (D) recommend clear data verification responsibilities.
                                               (3) PLAN SUBMISSION.—The Administrator of the Small Busi-
                                            ness Administration shall submit the plan to the Committee on
                                            Small Business of the House of Representatives and the Com-
                                            mittee 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 im-
                                            plement the plan described in this subsection.
                                               (5) CERTIFICATION.—The Administrator shall annually pro-
                                            vide to the Committee on Small Business of the House of Rep-
                                            resentatives and the Committee on Small Business and Entre-
                                            preneurship 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 defini-
                                            tions 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 con-
                                                 tract (as defined in section 3(o)) or a contract resulting
                                                 from the consolidation of contracting requirements (as de-
                                                 fined 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 enact-
                                      ment 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 Fed-
                                      eral law that may create an obstacle to the efficient implementa-
                                      tion 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




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                                                                                      32

                                      Agreement Program under chapter 388 of title 10, United States
                                      Code, and shall make available on the website of the Administra-
                                      tion, a list of resources for small business concerns seeking edu-
                                      cation and assistance on compliance with contracting regulations
                                      (including the Federal Acquisition Regulation) after award of a con-
                                      tract or subcontract.
                                         (v) REGULATORY CHANGES AND TRAINING MATERIALS.—Not less
                                      than annually, the Administrator shall provide to the Defense Ac-
                                      quisition 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 388 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 ex-
                                           plain, train, or assist Federal agencies or departments or small
                                           business concerns with compliance with the regulations de-
                                           scribed 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 Acquisi-
                                                tion Regulation relating to the timely definitization of re-
                                                quests for an equitable adjustment; and
                                                   (B) information about the agency’s past performance in
                                                definitizing requests for equitable adjustments in accord-
                                                ance 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 infor-
                                                mation 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 enact-
                                                     ment of this subsection, for the 2-year period pre-
                                                     ceding the issuance of the notice; and




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                                                                                      33

                                                     (iii) beginning 3 years after the date of the enact-
                                                   ment 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 no-
                                         tice 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 con-
                                              tract through a contract modification addressing all
                                              undefinitized requests for an equitable adjustment re-
                                              ceived during the term of the contract.
                                       (x) SMALL BUSINESS CREDIT FOR PUERTO RICO BUSINESSES AND
                                      COVERED TERRITORY BUSINESSES.—
                                            (1) CREDIT FOR MEETING CONTRACTING GOALS.—If an agency
                                         awards a prime contract to Puerto Rico business or a covered
                                         territory business, or a prime contractor awards a subcontract
                                         (at any tier) to a subcontractor that is a Puerto Rico business
                                         or a covered territory 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 or subcontract shall be doubled for purposes of de-
                                         termining compliance with the goals for procurement contracts
                                         under subsection (g)(1)(A) during such period.
                                            (2) REPORT.—Along with the report required under sub-
                                         section (h)(1), the head of each Federal agency shall submit to
                                         the Administrator, and make publicly available on the score-
                                         card (as defined in subsection (y)), 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.
                                       (y) SCORECARD PROGRAM FOR EVALUATING FEDERAL AGENCY
                                      COMPLIANCE WITH SMALL BUSINESS CONTRACTING GOALS.—
                                            (1) USE OF SCORECARD.—The Administrator shall use a
                                         scorecard to annually evaluate whether each Federal agency is
                                         creating the maximum practicable opportunities for the award
                                         of prime contracts and subcontracts to small business concerns,
                                         small business concerns owned and controlled by service-dis-
                                         abled 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, by assigning a score
                                         to each Federal agency for the previous fiscal year.




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                                                                                      34

                                               (2) CONTENTS OF SCORECARD.—The scorecard shall include,
                                             for each Federal agency and Governmentwide, the following in-
                                             formation:
                                                     (A) A determination of whether a Federal agency or the
                                                  Federal Government, as applicable, met each of the prime
                                                  contract goals established pursuant to subsection (g)(1)(B)
                                                  with respect to small business concerns, small business
                                                  concerns owned and controlled by service-disabled vet-
                                                  erans, qualified HUBZone small business concerns, small
                                                  business concerns owned and controlled by socially and
                                                  economically disadvantaged individuals, and small busi-
                                                  ness concerns owned and controlled by women.
                                                     (B) A determination of whether a Federal agency or the
                                                  Federal Government, as applicable, met each of the sub-
                                                  contract goals established pursuant to such section with
                                                  respect to small business concerns, small business con-
                                                  cerns owned and controlled by service-disabled veterans,
                                                  qualified HUBZone small business concerns, small busi-
                                                  ness concerns owned and controlled by socially and eco-
                                                  nomically disadvantaged individuals, and small business
                                                  concerns owned and controlled by women.
                                                     (C) The number of small business concerns, small busi-
                                                  ness 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 award-
                                                  ed prime contracts in each North American Industry Clas-
                                                  sification System code during the fiscal year and a com-
                                                  parison to the number of awarded contracts during the
                                                  prior fiscal year, if available.
                                                     (D) The number of small business concerns, small busi-
                                                  ness 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 award-
                                                  ed subcontracts in each North American Industry Classi-
                                                  fication System code during the fiscal year and a compari-
                                                  son to the number of awarded subcontracts during the
                                                  prior fiscal year, if available.
                                                     (E) Any other factors that the Administrator deems im-
                                                  portant to achieve the maximum practicable utilization of
                                                  small business concerns, small business concerns owned
                                                  and controlled by service-disabled veterans, qualified
                                                  HUBZone small business concerns, small business con-
                                                  cerns owned and controlled by socially and economically
                                                  disadvantaged individuals, and small business concerns
                                                  owned and controlled by women.
                                               (3) WEIGHTED FACTORS.—In using the scorecard to evaluate
                                             and assign a score to a Federal agency, the Administrator shall
                                             base—
                                                     (A) fifty percent of the score on the dollar value of prime
                                                  contracts described in paragraph (2)(A); and




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                                                                                      35

                                                     (B) fifty percent of the score on the information provided
                                                  in subparagraphs (B) through (E) of paragraph (2), weight-
                                                  ed in a manner determined by the Administrator to en-
                                                  courage the maximum practicable opportunity for the
                                                  award of prime contracts and subcontracts to small busi-
                                                  ness concerns, small business concerns owned and con-
                                                  trolled 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 con-
                                                  trolled by women.
                                                (4) ADDITIONAL REQUIREMENTS FOR SCORECARDS.—The score-
                                             card shall include, for each Federal agency and Government-
                                             wide, the following information with respect to prime contracts:
                                                     (A) The number (expressed as a percentage) and total
                                                  dollar amount of awards made to small business concerns
                                                  owned and controlled by women through sole source con-
                                                  tracts and competitions restricted to small business con-
                                                  cerns owned and controlled by women under section 8(m).
                                                     (B) The number (expressed as a percentage) and total
                                                  dollar amount of awards made to small business concerns
                                                  owned and controlled by qualified HUBZone small busi-
                                                  ness concerns through sole source contracts and competi-
                                                  tions restricted to qualified HUBZone small business con-
                                                  cerns under section 31(c)(2).
                                                     (C) The number (expressed as a percentage) and total
                                                  dollar amount of awards made to small business concerns
                                                  owned and controlled by service-disabled veterans through
                                                  sole source contracts and competitions restricted to small
                                                  business concerns owned and controlled by service-disabled
                                                  veterans under section 36.
                                                     (D) The number (expressed as a percentage) and total
                                                  dollar amount of awards made to socially and economically
                                                  disadvantaged small business concerns under section 8(a)
                                                  through sole source contracts and competitions restricted
                                                  to socially and economically disadvantaged small business
                                                  concerns, disaggregated by awards made to such concerns
                                                  that are owned and controlled by individuals and awards
                                                  made to such concerns that are owned and controlled by
                                                  an entity.
                                                (5) PUBLICATION.—The scorecard used by the Administrator
                                             under this subsection shall be submitted to the President and
                                             Congress along with the report submitted under subsection
                                             (h)(2).
                                                (6) SCORECARD DEFINED.—In this subsection, the term
                                             ‘‘scorecard’’ means any summary using a rating system to
                                             evaluate the efforts of a Federal agency to meet goals estab-
                                             lished under subsection (g)(1)(B) that—
                                                     (A) includes the measures described in paragraph (2);
                                                  and
                                                     (B) assigns a score to each Federal agency evaluated.
                                                 *            *           *               *           *         *           *

                                                                                          Æ




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