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WOSB Certification and Opportunity Expansion Act

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Congressional materials
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Crpt 118Hrpt393
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Crpt 118Hrpt393

Summary

House of Representatives Report 118–393 of the 118th Congress, 2d Session, submitted February 20, 2024 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 7105, the WOSB Certification and Opportunity Expansion Act, together with minority views. The committee reports the bill favorably without amendment and recommends that it pass. The report states that H.R. 7105 would exclude certain self-certified women-owned firms from government-wide procurement goals, taking effect two fiscal years after SBA issues regulations, and would require quarterly SBA briefings to the House and Senate Small Business Committees. It records a January 31, 2024 markup at which no amendments were offered. It sets out changes in existing law to the Small Business Act and closes with minority views signed by Ranking Member Nydia M. Velázquez.

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                                                                                118TH CONGRESS                                                                                               REPORT
                                                                                               " HOUSE OF REPRESENTATIVES                                                            !
                                                                                   2d Session                                                                                                118–393




                                                                                      WOSB CERTIFICATION AND OPPORTUNITY EXPANSION
                                                                                                           ACT



                                                                                FEBRUARY 20, 2024.—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
                                                                                                                                       together with

                                                                                                                                 MINORITY VIEWS

                                                                                                                               [To accompany H.R. 7105]

                                                                                  The Committee on Small Business, to whom was referred the bill
                                                                                (H.R. 7105) to establish requirements relating to certification of
                                                                                small business concerns owned and controlled by women for certain
                                                                                purposes, and for other purposes, having considered the same, re-
                                                                                ports favorably thereon without amendment and recommends that
                                                                                the bill do pass.
                                                                                                                                          CONTENTS
                                                                                                                                                                                                               Page
                                                                                         I. Purpose and Bill Summary ........................................................................                    2
                                                                                        II. Need for Legislation ....................................................................................            2
                                                                                      III. Hearings .......................................................................................................      2
                                                                                       IV. Committee Consideration ...........................................................................                   2
                                                                                        V. Committee Votes .........................................................................................             2
                                                                                       VI. Section-by-Section of H.R. 7105 .................................................................                     5
                                                                                      VII. Congressional Budget Office Cost Estimate .............................................                               5
                                                                                     VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                                     5
                                                                                       IX. Oversight Findings & Recommendations ..................................................                               6
                                                                                        X. Performance Goals and Objectives ............................................................                         6
                                                                                       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




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                                                                                     XVI. Statement of Constitutional Authority ......................................................                           6
                                                                                         49–006




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                                                                                 XVII. Changes in Existing Law Made by the Bill, as Reported ........................                                 7
                                                                                XVIII. Minority Views ............................................................................................   37

                                                                                                                 I. PURPOSE AND BILL SUMMARY
                                                                                  On January 29, 2024, Rep. Velázquez and Rep. LaLota intro-
                                                                                duced H.R. 7105. The purpose of H.R. 7105, the ‘‘WOSB Certifi-
                                                                                cation and Opportunity Expansion Act,’’ is to exclude certain self-
                                                                                certified firms from being counted in government-wide procurement
                                                                                goals.
                                                                                                                     II. NEED FOR LEGISLATION
                                                                                  The government has a goal to spend at least 5% of contracting
                                                                                award dollars with women owned small businesses. When agencies
                                                                                look to meet this goal, they often look to firms certified in the
                                                                                Small Business Administration’s (SBA) Women Owned Small Busi-
                                                                                ness (WOSB) program or self-certified firms that check an online
                                                                                box that they are women owned. The SBA Inspector General has
                                                                                consistently identified self-certification as a risk for fraud. This bill
                                                                                will phase out self-certification in procurement goals and reduce
                                                                                the use of these firms when agencies award contracts set-aside for
                                                                                women small businesses.
                                                                                                                                III. HEARINGS
                                                                                  In the 118th Congress, the Committee held one hearing exam-
                                                                                ining the issues covered in H.R. 7105. The hearing titled ‘‘Leveling
                                                                                the Playing Field: The State of Small Business Contracting’’ dis-
                                                                                cussed challenges small business contractors face while competing
                                                                                for government contracts.
                                                                                                                IV. COMMITTEE CONSIDERATION
                                                                                  The Committee on Small Business met in open session, with a
                                                                                quorum being present, on January 31, 2024 and ordered H.R. 7105
                                                                                reported to the House of Representatives. During the markup 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. 7105 to the House of Representatives
                                                                                at 12:05 p.m.




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                                                                                                      VI. SECTION-BY-SECTION OF H.R. 7105
                                                                                Section 1—Short title
                                                                                  This section cites the bill as the ‘‘WOSB Certification and Oppor-
                                                                                tunity Expansion Act’’.
                                                                                Section 2—Exclusion of self-certified small business concerns owned
                                                                                     and controlled by women from goals
                                                                                  This section allows only small businesses owned and controlled
                                                                                by women and certified in the WOSB program to be calculated in
                                                                                federal procurement goals. This takes effect two fiscal years after
                                                                                the SBA issues regulations.
                                                                                  This section further allows self-certified women owned small
                                                                                businesses to be included in the goals if they self-certify before the
                                                                                enactment of the previous provision, have filed a certification appli-
                                                                                cation with the SBA or a recognized certifying entity, and if they
                                                                                have not received an official determination by the SBA as to ac-
                                                                                ceptance into the WOSB program.
                                                                                  The SBA is required to issue regulations within one year of pas-
                                                                                sage.
                                                                                  The SBA is also required to provide quarterly briefings to the
                                                                                House and Senate Small Business Committees. The briefing shall
                                                                                include application numbers and approval timelines, costs, updates
                                                                                on outreach efforts, and recommendations for legislative authority
                                                                                or resources needed.
                                                                                  Finally, this section includes definitions and language to ensure
                                                                                that no additional funds are authorized to be appropriated to carry
                                                                                out the 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. 7105 does not direct new spend-




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                                                                                ing, but instead reallocates funding independently authorized and
                                                                                appropriated.




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                                                                                                  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.
                                                                                7105 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
                                                                                and objectives of H.R. 7105 are to require quarterly briefings from
                                                                                the SBA on the implementation of this bill, potential resource con-
                                                                                straints, and outputs of certification activities.
                                                                                         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. 7105 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




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                                                                                Committee finds that the authority for this legislation in Art. I, § 8,
                                                                                cl. 1 of the Constitution of the United States.




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                                                                                 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):
                                                                                      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 (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




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                                                                                            Administrator may not further segment an industry cat-
                                                                                            egory based on geographic requirements unless—




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                                                                                                   (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.
                                                                                         (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;




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                                                                                                   (iv) in the case of a proposed procurement for con-
                                                                                                struction, why the proposed procurement cannot be of-
                                                                                                fered as separate discrete projects; or




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                                                                                                 (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
                                                                                          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




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                                                                                the handicapped shall be eligible to participate in programs author-
                                                                                ized under this section in an aggregate amount not to exceed
                                                                                $40,000,000.




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                                                                                   (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
                                                                                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




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                                                                                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




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                                                                                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—
                                                                                             (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




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                                                                                     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:




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                                                                                                                                12

                                                                                               (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
                                                                                                    (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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                       business concern (whether or not such other business concern
                                                                                       was a small business concern), the Administrator shall estab-
                                                                                       lish regulations—




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                                                                                            (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
                                                                                            (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.




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                                                                                                  (ii) The Governmentwide goal for participation by
                                                                                               small business concerns owned and controlled by serv-
                                                                                               ice-disabled veterans shall be established at not less




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                                                                                                                                14

                                                                                               than 5 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
                                                                                               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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                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




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                                                                                                                                15

                                                                                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
                                                                                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.
                                                                                   (4) EXCLUSION OF SELF-CERTIFIED WOSBS FROM GOALS.—Only
                                                                                small business concerns owned and controlled by women that have
                                                                                been certified under section 8(m)(2)(E) shall be included in calcu-
                                                                                lating the goals established—
                                                                                        (A) under paragraph (1)(A)(v); and
                                                                                        (B) by the head of a Federal agency for small business con-
                                                                                     cerns owned and controlled by women under paragraph (2).
                                                                                   (h) REPORTING ON GOALS FOR PROCUREMENT CONTRACTS AWARD-
                                                                                ED TO SMALL BUSINESS CONCERNS.—




dmwilson on DSK126QN23PROD with REPORTS
                                                                                        (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—




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                                                                                                                                16

                                                                                               (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 fiscal year;
                                                                                               (B) whether the agency achieved the goals established
                                                                                            for the agency under subsection (g)(2) with respect to such
                                                                                            fiscal year;
                                                                                               (C) any justifications for a failure to achieve such goals;
                                                                                            and
                                                                                               (D) a remediation plan with proposed new practices to
                                                                                            better meet such goals, including analysis of factors 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; and
                                                                                               (E) for the Federal Government and each Federal agen-
                                                                                            cy, 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-




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                                                                                                       abled veterans, qualified HUBZone small business
                                                                                                       concerns, small business concerns owned and con-
                                                                                                       trolled by socially and economically disadvantaged




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                                                                                                                                17

                                                                                                         individuals, small business concerns owned and
                                                                                                         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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                                    socially and economically disadvantaged individuals—
                                                                                                            (I) in the aggregate;
                                                                                                            (II) through sole source contracts;




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                                                                                                                                18

                                                                                                            (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;
                                                                                                            (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




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                                                                                                         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-




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                                                                                                                                19

                                                                                                      waiian Organization for purposes of the initial
                                                                                                      contract;
                                                                                                    (vii) small business concerns owned by an Alaska
                                                                                                  Native Corporation—
                                                                                                          (I) in the aggregate;
                                                                                                          (II) through sole source contracts;
                                                                                                          (III) through competitions restricted to small
                                                                                                      business concerns;
                                                                                                          (IV) through competitions restricted to small
                                                                                                      business concerns owned and controlled by 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
                                                                                               (F) for the Federal Government, the number, dollar
                                                                                             amount, and distribution with respect to the North Amer-
                                                                                             ican Industry Classification System of subcontracts award-
                                                                                             ed during such fiscal year to small business concerns,
                                                                                             small business concerns owned and controlled by service-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                             disabled veterans, qualified HUBZone small business con-
                                                                                             cerns, small business concerns owned and controlled by so-
                                                                                             cially and economically disadvantaged individuals, and




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                                                                                                                                20

                                                                                           small business concerns owned and controlled by women,
                                                                                           provided that such information is publicly available
                                                                                           through data systems developed pursuant to the Federal
                                                                                           Funding Accountability and Transparency Act of 2006
                                                                                           (Public Law 109–282), or otherwise available as provided
                                                                                           in paragraph (3).
                                                                                         (3) PROCUREMENT DATA.—
                                                                                              (A) FEDERAL PROCUREMENT DATA SYSTEM.—
                                                                                                   (i) IN GENERAL.—To assist in the implementation of
                                                                                                this section, the Administrator shall have access to 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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                           Office of Management and Budget.
                                                                                              (C) EFFECTIVE DATE.—The Administrator shall report on
                                                                                           the information described by subparagraph (A) beginning




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                                                                                                                                21

                                                                                           on the date that such information is available in the Fed-
                                                                                           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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                      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);




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                                                                                                                                22

                                                                                          (3) shall be responsible only to (including with respect to per-
                                                                                       formance appraisals), and report directly and exclusively to,
                                                                                       the head of such agency or to the deputy of such head, except
                                                                                       that the Director for the Office of the Secretary of Defense
                                                                                       shall be responsible only to (including with respect to 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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                       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




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                                                                                                                                23

                                                                                       acquisition strategies, market research, and justifications re-
                                                                                       lated to section 44 of this Act;
                                                                                          (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-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                       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-




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                                                                                                                                24

                                                                                     tem, if the method of payment is a purchase card issued by the
                                                                                     Department of Defense pursuant to section 4754 of title 10,
                                                                                     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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                          such representative’s approved security clearance classi-
                                                                                          fication, with such data provided upon request in elec-
                                                                                          tronic format, when available;




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                                                                                                                                25

                                                                                            (F) receive unsolicited proposals from small business
                                                                                         concerns and transmit such proposals to personnel of the
                                                                                         activity responsible for reviewing such proposals, who shall
                                                                                         furnish the procurement center representative with 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.




dmwilson on DSK126QN23PROD with REPORTS
                                                                                            (C) CERTIFICATION REQUIREMENTS.—
                                                                                                 (i) IN GENERAL.—Consistent with the requirements
                                                                                               of clause (ii), a procurement center representative




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                                                                                                                                26

                                                                                                 shall have a Level III Federal Acquisition Certification
                                                                                                 in Contracting (or any successor certification) or the
                                                                                                 equivalent Department of Defense certification, except
                                                                                                 that any person serving in such a position on or before
                                                                                                 January 3, 2013, may continue to serve in that 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-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                       ceipt, respond, in writing, to each recommendation made by
                                                                                       such representative.
                                                                                         (9) SCOPE OF REVIEW.—The Administrator—




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                                                                                                                                27

                                                                                             (A) may not limit the scope of review by the procurement
                                                                                          center representative for any solicitation of a contract or
                                                                                          task order without regard to whether the contract or task
                                                                                          order or part of the contract or task order is set aside for
                                                                                          small business concerns, whether 1 or more contracts or
                                                                                          task order awards are reserved for small business concerns
                                                                                          under a multiple award contract, or whether or not the 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-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                      ing—
                                                                                             (A) each bundled contract awarded by a Federal agency;
                                                                                          and




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                                                                                                                                28

                                                                                             (B) each small business concern that has been displaced
                                                                                           as a prime contractor as a result of the award of such a
                                                                                           contract.
                                                                                         (3) ANALYSIS.—For each bundled contract that is to be 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-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                                           ness subcontracting plan, including the total
                                                                                                           dollar value awarded to small business con-
                                                                                                           cerns as subcontractors and the total dollar




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                                                                                                                                29

                                                                                                       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
                                                                                                       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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                        under section 25 of such Act to—
                                                                                                (i) establish a Government-wide policy regarding
                                                                                             contract bundling, including regarding the solicitation




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                                                                                                                                30

                                                                                               of teaming and joint ventures under paragraph (1);
                                                                                               and
                                                                                                  (ii) require that the policy established under clause
                                                                                               (i) be published on the website of each Federal agency.
                                                                                             (B) RATIONALE FOR CONTRACT BUNDLING.—Not later
                                                                                          than 30 days after the date on which the head of a Federal
                                                                                          agency submits data certifications to the Administrator for
                                                                                          Federal Procurement Policy, the head of the Federal 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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                     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-




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                                                                                                                                31

                                                                                     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-
                                                                                          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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                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-




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                                                                                                                                32

                                                                                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
                                                                                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.




dmwilson on DSK126QN23PROD with REPORTS
                                                                                             (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)—




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                                                                                                                                33

                                                                                               (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
                                                                                               (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




dmwilson on DSK126QN23PROD with REPORTS
                                                                                   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,




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                                                                                                                                34

                                                                                       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.
                                                                                         (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-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                            cerns owned and controlled by socially and economically
                                                                                            disadvantaged individuals, and small business concerns
                                                                                            owned and controlled by women.




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                                                                                                                                35

                                                                                          (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
                                                                                               (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-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                       lished under subsection (g)(1)(B) that—
                                                                                               (A) includes the measures described in paragraph (2);
                                                                                            and




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                                                                                                                                36

                                                                                                  (B) assigns a score to each Federal agency evaluated.
                                                                                            *           *            *              *           *          *          *




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                                                                                                               XVIII. MINORITY VIEWS
                                                                                   The Small Business Administration’s (SBA) Women-Owned
                                                                                Small Business (WOSB) Contracting Program is designed to help
                                                                                level the playing field for women-owned small businesses and eco-
                                                                                nomically     disadvantaged     women-owned       small    businesses
                                                                                (EDWOSBs) in the federal marketplace. The federal government
                                                                                attempts to expand contracting opportunities for WOSBs in two
                                                                                main ways: (a) setting an overall goal of sending 5% of federal con-
                                                                                tracting dollars to women-owned firms and (b) using streamlined
                                                                                authorities to make it easier for federal agencies to contract with
                                                                                women-owned firms. These authorities allow contracting officers to
                                                                                set-aside a contract for exclusively WOSBs competition and to sole
                                                                                source contracts to a WOSB firm, when certain conditions are met.
                                                                                   The federal government topline goal of 5% for WOSBs has only
                                                                                been met twice and federal agencies routinely miss their individual
                                                                                WOSB goals. Historically, women-owned small businesses have not
                                                                                been provided with the contracting opportunities that should ac-
                                                                                company their level of participation in the federal market.
                                                                                   SBA administers contracting programs for small businesses in
                                                                                four categories: (1) the 8(a) Business Development program; (2)
                                                                                Women-Owned Small Business program (WOSB); (3) Historically
                                                                                Underutilized Business Zone small business program (HUBZone);
                                                                                and (4) Service-Disabled Veteran-Owned Small Business program
                                                                                (SDVOSB). The FY24 National Defense Authorization Act elimi-
                                                                                nated self-certification for the SDVOSB program. As a result, the
                                                                                three other contracting programs will now require participants to
                                                                                be certified by the SBA.
                                                                                   Stakeholders have pointed to the lack of SBA certification and
                                                                                other WOSB unique requirements as limitations on contracting of-
                                                                                ficers that prohibit great use of the program’s authorities. For ex-
                                                                                ample, the Government Accountability Office (GAO) surveyed
                                                                                WOSB stakeholders and some mentioned that having to review ad-
                                                                                ditional documentation on their own, since SBA didn’t certify the
                                                                                firms, was burdensome and limited use of the program.1
                                                                                   The goal of requiring an SBA certification is to protect the integ-
                                                                                rity of the program but also to incentivize contracting officers to
                                                                                use the authorities designed to streamline contracting with WOSB
                                                                                firms. Right now, these authorities are underutilized.
                                                                                   According to CRS’s last analysis in fiscal year 2021, the percent-
                                                                                age of contracts awarded through a set-aside or a sole source varies
                                                                                significantly by program. For 17% of contract spending awarded to
                                                                                HUBZone companies, contracting officers use the set-aside or sole-
                                                                                source authorities, while well over half—about 58%—of 8(a) con-
                                                                                tracts can be awarded only to 8(a) certified firms. The SDVOSB
                                                                                  1 Government Accountability Office. ‘‘Women-Owned Small Business Program: Actions Needed
                                                                                to Address Continued Oversight Issues’’ (GAO–19–563) May 16, 2019: https://www.gao.gov/prod-




dmwilson on DSK126QN23PROD with REPORTS
                                                                                ucts/gao-19-563.
                                                                                                                                (37)




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                                                                                                                                38

                                                                                program has 44% of its dollars reserved exclusively for program
                                                                                participants. Of the contract spending now awarded to women-
                                                                                owned small businesses, only 5% is moved through the contracting
                                                                                authorities.2 This bill is intended to strengthen the WOSB program
                                                                                while also encouraging greater use of the contracting authorities
                                                                                for certified WOSB firms.
                                                                                   To date, both the establishment and administration of the WOSB
                                                                                program, as well as federal agencies’ efforts to meet the WOSB
                                                                                goals have been significant challenges. Requiring all WOSB to be
                                                                                certified by the SBA or a third-party certifier will take time and
                                                                                resources for SBA to implement. The legislation builds in addi-
                                                                                tional time for SBA to implement these requirements, and specifi-
                                                                                cally includes processes to ensure that current and future WOSB
                                                                                firms are not penalized if SBA faces delays. The committee intends
                                                                                for SBA to ensure that WOSB firms who have applied for certifi-
                                                                                cation with the SBA or a third-party certifier by the deadline are
                                                                                able to continue to receive contracts that are counted toward an
                                                                                agency’s small business procurement goals until a decision on their
                                                                                certification is made by the SBA.
                                                                                   Finally, the WOSB program is unique in its use of third-party
                                                                                certifiers. The third-party certifiers are now required to tell pro-
                                                                                spective applicates that the SBA certification is an option and does
                                                                                not charge a fee. The committee believes that existing and new
                                                                                processes laid out in the bill will ensure that no WOSB is required
                                                                                to pay for a certification.
                                                                                        Sincerely,
                                                                                                                          NYDIA M. VELÁZQUEZ,
                                                                                                                                  Ranking Member.

                                                                                                                                    Æ




dmwilson on DSK126QN23PROD with REPORTS
                                                                                  2 Congressional Research Service. ‘‘An Overview of Small Business Contracting’’ (R45576), Up-
                                                                                dated July 29, 2022: https://crsreports.congress.gov/product/pdf/R/R45576.




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