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WOSB Accountability Act — House of Representatives, 119th Congress, 1st Session 119-37 (March 24, 2025)

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Summary

House of Representatives Report 119–37 of the 119th Congress, 1st Session, submitted March 24, 2025 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 1816, the WOSB Accountability Act, together with minority views. The committee reports the bill favorably without amendment and recommends that it pass. The report states that H.R. 1816 requires the Small Business Administration to count only certified women-owned small businesses toward Federal procurement goals, taking effect two fiscal years after SBA issues regulations, and requires quarterly briefings to the House and Senate Committees on Small Business. It records a February 5, 2025 hearing and a March 5, 2025 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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“WOSB Accountability Act — House of Representatives, 119th Congress, 1st Session 119-37 (March 24, 2025).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-119hrpt37/, SHA-256 82f52dca704a183a0236385cdd4bc681302183a3d1454e17c80207adfce937a1.

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                                                                                  119TH CONGRESS                                                                                            REPORT
                                                                                                 " HOUSE OF REPRESENTATIVES                                                        !
                                                                                     1st Session                                                                                            119–37




                                                                                                                  WOSB ACCOUNTABILITY ACT


                                                                                       MARCH 24, 2025.—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. 1816]

                                                                                    The Committee on Small Business, to whom was referred the bill
                                                                                  (H.R. 1816) 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. 1816 .................................................................                     4
                                                                                    VII. Congressional Budget Office Cost Estimate .............................................                               4
                                                                                   VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                                     4
                                                                                     IX. Oversight Findings & Recommendations ..................................................                               4
                                                                                      X. Performance Goals and Objectives ............................................................                         5
                                                                                     XI. Statement of Duplication of Federal Programs ........................................                                 5
                                                                                    XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
                                                                                            Benefits .....................................................................................................     5
                                                                                   XIII. Federal Mandates Statement .....................................................................                      5
                                                                                    XIV. Federal Advisory Committee Statement ...................................................                              5
                                                                                     XV. Applicability to Legislative Branch ...........................................................                       5
                                                                                    XVI. Statement of Constitutional Authority ......................................................                          5




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                                                                                   XVII. Changes in Existing Law, Made by the Bill, as Reported .......................                                        5
                                                                                  XVIII. Minority Views ............................................................................................          35
                                                                                         59–006




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                                                                                                                PURPOSE AND BILL SUMMARY
                                                                                     On March 3, 2025, Rep. Velázquez, along with Rep. LaLota, in-
                                                                                  troduced H.R. 1816, the WOSB Accountability Act. H.R. 1816 re-
                                                                                  quires the Small Business Administration (SBA) to only count cer-
                                                                                  tified women-owned small businesses toward Federal procurement
                                                                                  goals.
                                                                                                                 II. NEED FOR LEGISLATION
                                                                                    The Congressionally mandated government-wide goal to spend at
                                                                                  least five percent of federal contracting dollars towards women-
                                                                                  owned small businesses includes both certified and self-certified
                                                                                  women-owned small businesses. The SBA Office of Inspector Gen-
                                                                                  eral (OIG) 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 con-
                                                                                  tracts set-aside for women-owned small businesses.
                                                                                    In recent years, Congress has removed self-certified firms from
                                                                                  being considered in other procurement goals, such as service-dis-
                                                                                  abled small business owned goals. This continues on those efforts
                                                                                  of ensuring that fraudsters do not take advantage of any of the
                                                                                  Congressionally mandated procurement goals.
                                                                                                                           III. HEARINGS
                                                                                    On February 5, 2025, the Committee on Small Business held a
                                                                                  hearing examining matters related to H.R. 1816 titled ‘‘Hope on the
                                                                                  Horizon: Prioritizing Small Business Growth in the 119th Con-
                                                                                  gress.’’
                                                                                                               IV. COMMITTEE CONSIDERATION
                                                                                    The Committee on Small Business met in open session, with a
                                                                                  quorum being present, on March 5, 2025, and ordered H.R. 1816
                                                                                  favorably 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. 1816 to the House of Representatives
                                                                                  at 11:45 AM.




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                                                                                                        VI. SECTION-BY-SECTION OF H.R. 1816
                                                                                  Section 1—Short title
                                                                                    This section cites the bill as the ‘‘WOSB Accountability 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 Women-Owned Small Business
                                                                                  (WOSB) program to be calculated in federal procurement goals.
                                                                                  This bill takes effect two fiscal years after the SBA issues regula-
                                                                                  tions.
                                                                                     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 en-
                                                                                  actment. The SBA is also required to provide quarterly briefings to
                                                                                  the House and Senate Committees on Small Business. The brief-
                                                                                  ings shall include application numbers and approval timelines,
                                                                                  costs, updates on outreach efforts, and recommendations for legisla-
                                                                                  tive authority or resources needed.
                                                                                             VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
                                                                                    Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
                                                                                  resentatives, the Committee adopts as its own the cost estimate
                                                                                  prepared by the Director of the Congressional Budget Office pursu-
                                                                                  ant to section 402 of the Congressional 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.
                                                                                          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. 1816 does not direct new spend-
                                                                                  ing, but instead reallocates funding independently authorized and
                                                                                  appropriated.
                                                                                                    IX. OVERSIGHT FINDINGS & RECOMMENDATIONS




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                                                                                    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




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                                                                                  Business with respect to the subject matter contained in the H.R.
                                                                                  1816 are incorporated into the descriptive portions of this report.
                                                                                                       X. PERFORMANCE GOALS AND OBJECTIVES
                                                                                     With respect to the requirements of clause 3(c)(4) of rule XIII of
                                                                                  the Rules of the House of Representatives, the performance goals
                                                                                  and objectives of H.R. 1816 are to require the SBA to provide quar-
                                                                                  terly briefings to the House and Senate Committees on Small Busi-
                                                                                  ness regarding the implementation of this legislation, administra-
                                                                                  tive costs, 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. 1816 is known to be dupli-
                                                                                  cative of another Federal program, including any program that was
                                                                                  included in a report to Congress pursuant to section 21 of Public
                                                                                  Law 111–139 or the most recent Catalog of Federal Domestic As-
                                                                                  sistance.
                                                                                           XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
                                                                                                      AND LIMITED TARIFF BENEFITS

                                                                                    With respect to clause 9 of rule XXI of the Rules of the House
                                                                                  of Representatives, the Committee finds that the bill does not con-
                                                                                  tain any congressional earmarks, limited tax benefits, or limited
                                                                                  tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
                                                                                  the Rules of the House of Representatives.
                                                                                                          XIII. FEDERAL MANDATES STATEMENT
                                                                                    The Committee adopts as its own the estimate of Federal man-
                                                                                  dates prepared by the Director of the Congressional Budget Office
                                                                                  pursuant to section 423 of the Unfunded Mandates Reform Act.
                                                                                                    XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
                                                                                    No advisory committees within the meaning of section 5(b) of the
                                                                                  Federal Advisory Committee Act were created by this legislation.
                                                                                                      XV. APPLICABILITY TO LEGISLATIVE BRANCH
                                                                                    The Committee finds that the legislation does not relate to the
                                                                                  terms and conditions of employment or access to public services or
                                                                                  accommodations within the meaning of section 102(b)(3) of the Con-
                                                                                  gressional Accountability Act.
                                                                                                XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
                                                                                     Pursuant to clause 7 of rule XII of the Rules of the House, the
                                                                                  Committee finds that the authority for this legislation in Art. I, § 8,
                                                                                  cl.1 of the Constitution of the United States.
                                                                                  XVII. CHANGES IN EXISTING LAW, MADE BY THE BILL, AS REPORTED
                                                                                    In compliance with clause 3(e) of rule XIII of the Rules of the




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                                                                                  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,




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                                                                                  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
                                                                                              Administrator may not further segment an industry cat-
                                                                                              egory based on geographic requirements unless—
                                                                                                      (i) the Government typically designates the geo-
                                                                                                   graphic area where work for contracts for goods or
                                                                                                   services is to be performed;
                                                                                                      (ii) Government purchases comprise the major por-
                                                                                                   tion of the entire domestic market for such goods or




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                                                                                                   services; and
                                                                                                      (iii) it is unreasonable to expect competition from
                                                                                                   business concerns located outside of the general geo-




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                                                                                                  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;
                                                                                                     (iv) in the case of a proposed procurement for con-
                                                                                                  struction, why the proposed procurement cannot be of-
                                                                                                  fered as separate discrete projects; or
                                                                                                     (v) why the contracting agency has determined that
                                                                                                  the bundling of contract requirements is necessary
                                                                                                  and justified.
                                                                                                (C) ALTERNATIVES TO INCREASE PRIME CONTRACTING OP-
                                                                                             PORTUNITIES FOR SMALL BUSINESS CONCERNS.—If the pro-
                                                                                             curement center representative believes that the proposed




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                                                                                             procurement will make the participation of small business
                                                                                             concerns as prime contractors unlikely, the procurement
                                                                                             center representative, within 15 days after receiving the




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                                                                                             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
                                                                                  the handicapped shall be eligible to participate in programs author-
                                                                                  ized under this section in an aggregate amount not to exceed
                                                                                  $40,000,000.
                                                                                     (B) None of the amounts authorized for participation by subpara-
                                                                                  graph (A) may be placed on the procurement list maintained by the
                                                                                  Committee pursuant to section 2 of the Act entitled ‘‘An Act to cre-
                                                                                  ate a Committee on Purchases of Blind-made Products, and for
                                                                                  other purposes’’’, approved June 25, 1938 (41 U.S.C. 47).
                                                                                     (3) The Administrator shall monitor and evaluate such participa-




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                                                                                  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




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                                                                                  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
                                                                                  made at reasonable prices. As soon as practicable and to the extent
                                                                                  possible, in determining labor surplus areas, consideration shall be
                                                                                  given to those persons who would be available for employment
                                                                                  were suitable employment available. Until such definition reflects
                                                                                  such number, the present criteria of such policy shall govern.
                                                                                     (e) PROCUREMENT STRATEGIES; CONTRACT BUNDLING.—
                                                                                           (1) IN GENERAL.—To the maximum extent practicable, pro-
                                                                                        curement strategies used by a Federal department or agency
                                                                                        having contracting authority shall facilitate the maximum par-




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                                                                                        ticipation of small business concerns as prime contractors, sub-
                                                                                        contractors, and suppliers, and each such Federal department
                                                                                        or agency shall—




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                                                                                                 (A) provide opportunities for the participation of small
                                                                                              business concerns during acquisition planning processes
                                                                                              and in acquisition plans; and
                                                                                                 (B) invite the participation of the appropriate Director of
                                                                                              Small and Disadvantaged Business Utilization in acquisi-
                                                                                              tion planning processes and provide that Director access to
                                                                                              acquisition plans.
                                                                                            (2) MARKET RESEARCH.—
                                                                                                 (A) IN GENERAL.—Before proceeding with an acquisition
                                                                                              strategy that could lead to a contract containing consoli-
                                                                                              dated procurement requirements, the head of an agency
                                                                                              shall conduct market research to determine whether con-
                                                                                              solidation of the requirements is necessary and justified.
                                                                                                 (B) FACTORS.—For purposes of subparagraph (A), con-
                                                                                              solidation of the requirements may be determined as being
                                                                                              necessary and justified if, as compared to the benefits that
                                                                                              would be derived from contracting to meet those require-
                                                                                              ments if not consolidated, the Federal Government would
                                                                                              derive from the consolidation measurably substantial bene-
                                                                                              fits, including any combination of benefits that, in com-
                                                                                              bination, are measurably substantial. Benefits described in
                                                                                              the preceding sentence may include the following:
                                                                                                      (i) Cost savings.
                                                                                                      (ii) Quality improvements.
                                                                                                      (iii) Reduction in acquisition cycle times.
                                                                                                      (iv) Better terms and conditions.
                                                                                                      (v) Any other benefits.
                                                                                                 (C) REDUCTION OF COSTS NOT DETERMINATIVE.—The re-
                                                                                              duction of administrative or personnel costs alone shall not
                                                                                              be a justification for bundling of contract requirements un-
                                                                                              less the cost savings are expected to be substantial in rela-
                                                                                              tion to the dollar value of the procurement requirements
                                                                                              to be consolidated.
                                                                                            (3) STRATEGY SPECIFICATIONS.—If the head of a contracting
                                                                                         agency determines that an acquisition plan for a procurement
                                                                                         involves a substantial bundling of contract requirements, the
                                                                                         head of a contracting agency shall publish a notice on a public
                                                                                         website that such determination has been made not later than
                                                                                         7 days after making such determination. Any solicitation for a
                                                                                         procurement related to the acquisition plan may not be pub-
                                                                                         lished earlier than 7 days after such notice is published. Along
                                                                                         with the publication of the solicitation, the head of a con-
                                                                                         tracting agency shall publish a justification for the determina-
                                                                                         tion, which shall include the following information:
                                                                                                 (A) The specific benefits anticipated to be derived from
                                                                                              the bundling of contract requirements and a determination
                                                                                              that such benefits justify the bundling.
                                                                                                 (B) An identification of any alternative contracting ap-
                                                                                              proaches that would involve a lesser degree of bundling of
                                                                                              contract requirements.
                                                                                                 (C) An assessment of—




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                                                                                                      (i) the specific impediments to participation by small
                                                                                                   business concerns as prime contractors that result
                                                                                                   from the bundling of contract requirements; and




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                                                                                                      (ii) the specific actions designed to maximize partici-
                                                                                                   pation of small business concerns as subcontractors
                                                                                                   (including suppliers) at various tiers under the con-
                                                                                                   tract or contracts that are awarded to meet the re-
                                                                                                   quirements.
                                                                                            (4) CONTRACT TEAMING.—
                                                                                                 (A) IN GENERAL.—In the case of a solicitation of offers
                                                                                              for a bundled or consolidated contract that is issued by the
                                                                                              head of an agency, a small business concern that provides
                                                                                              for use of a particular team of subcontractors or a joint
                                                                                              venture of small business concerns may submit an offer for
                                                                                              the performance of the contract.
                                                                                                 (B) EVALUATION OF OFFERS.—The head of the agency
                                                                                              shall evaluate an offer described in subparagraph (A) in
                                                                                              the same manner as other offers, with due consideration to
                                                                                              the capabilities of all of the proposed subcontractors or
                                                                                              members of the joint venture as follows:
                                                                                                      (i) TEAMS.—When evaluating an offer of a small
                                                                                                   business prime contractor that includes a proposed
                                                                                                   team of small business subcontractors, the head of the
                                                                                                   agency shall consider the capabilities and past per-
                                                                                                   formance of each first tier subcontractor that is part of
                                                                                                   the team as the capabilities and past performance of
                                                                                                   the small business prime contractor.
                                                                                                      (ii) JOINT VENTURES.—When evaluating an offer of a
                                                                                                   joint venture of small business concerns, if the joint
                                                                                                   venture does not demonstrate sufficient capabilities or
                                                                                                   past performance to be considered for award of a con-
                                                                                                   tract opportunity, the head of the agency shall con-
                                                                                                   sider the capabilities and past performance of each
                                                                                                   member of the joint venture as the capabilities and
                                                                                                   past performance of the joint venture.
                                                                                                 (C) STATUS AS A SMALL BUSINESS CONCERN.—Participa-
                                                                                              tion of a small business concern in a team or a joint ven-
                                                                                              ture under this paragraph shall not affect the status of
                                                                                              that concern as a small business concern for any other
                                                                                              purpose.
                                                                                            (5) PAST PERFORMANCE RATINGS OF JOINT VENTURES FOR
                                                                                         SMALL BUSINESS CONCERNS.—With respect to evaluating an
                                                                                         offer for a prime contract made by a small business concern
                                                                                         that previously participated in a joint venture with another
                                                                                         business concern (whether or not such other business concern
                                                                                         was a small business concern), the Administrator shall estab-
                                                                                         lish regulations—
                                                                                                 (A) allowing the small business concern to elect to use
                                                                                              the past performance of the joint venture if the small busi-
                                                                                              ness concern has no relevant past performance of its own;
                                                                                                 (B) requiring the small business concern, when making
                                                                                              an election under subparagraph (A)—
                                                                                                      (i) to identify to the contracting officer the joint ven-
                                                                                                   ture of which the small business concern was a mem-
                                                                                                   ber; and




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                                                                                                      (ii) to inform the contracting officer what duties and
                                                                                                   responsibilities the small business concern carried out
                                                                                                   as part of the joint venture; and




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                                                                                              (C) requiring a contracting officer, if the small business
                                                                                            concern makes an election under subparagraph (A), to con-
                                                                                            sider the past performance of the joint venture when eval-
                                                                                            uating the past performance of the small business concern,
                                                                                            giving due consideration to the information provided under
                                                                                            subparagraph (B)(ii).
                                                                                    (f) CONTRACTING PREFERENCE FOR SMALL BUSINESS CONCERNS IN
                                                                                  A MAJOR DISASTER AREA.—
                                                                                         (1) DEFINITION.—In this subsection, the term ‘‘disaster area’’
                                                                                       means the area for which the President has declared a major
                                                                                       disaster, during the period of the declaration.
                                                                                         (2) CONTRACTING PREFERENCE.—An agency shall provide a
                                                                                       contracting preference for a small business concern located in
                                                                                       a disaster area if the small business concern will perform the
                                                                                       work required under the contract in the disaster area.
                                                                                         (3) CREDIT FOR MEETING CONTRACTING GOALS.—If an agency
                                                                                       awards a contract to a small business concern under the cir-
                                                                                       cumstances described in paragraph (2), the value of the con-
                                                                                       tract shall be doubled for purposes of determining compliance
                                                                                       with the goals for procurement contracts under subsection
                                                                                       (g)(1)(A).
                                                                                    (g)
                                                                                         (1) GOVERNMENTWIDE GOALS.—
                                                                                              (A) ESTABLISHMENT.—The President shall annually es-
                                                                                            tablish Governmentwide goals for procurement contracts
                                                                                            awarded to small business concerns, small business con-
                                                                                            cerns owned and controlled by service-disabled veterans,
                                                                                            qualified HUBZone small business concerns, small busi-
                                                                                            ness concerns owned and controlled by socially and eco-
                                                                                            nomically disadvantaged individuals, and small business
                                                                                            concerns owned and controlled by women in accordance
                                                                                            with the following:
                                                                                                    (i) The Governmentwide goal for participation by
                                                                                                 small business concerns shall be established at not
                                                                                                 less than 23 percent of the total value of all prime con-
                                                                                                 tract awards for each fiscal year. In meeting this goal,
                                                                                                 the Government shall ensure the participation of
                                                                                                 small business concerns from a wide variety of indus-
                                                                                                 tries and from a broad spectrum of small business con-
                                                                                                 cerns within each industry.
                                                                                                    (ii) The Governmentwide goal for participation by
                                                                                                 small business concerns owned and controlled by serv-
                                                                                                 ice-disabled veterans shall be established at not less
                                                                                                 than 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




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                                                                                                 small business concerns owned and controlled by so-
                                                                                                 cially and economically disadvantaged individuals
                                                                                                 shall be established at not less than 5 percent of the




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                                                                                                 total value of all prime contract and subcontract
                                                                                                 awards for each fiscal year.
                                                                                                   (v) The Governmentwide goal for participation by
                                                                                                 small business concerns owned and controlled by
                                                                                                 women shall be established at not less than 5 percent
                                                                                                 of the total value of all prime contract and subcontract
                                                                                                 awards for each fiscal year.
                                                                                               (B) ACHIEVEMENT OF GOVERNMENTWIDE GOALS.—Each
                                                                                            agency shall have an annual goal that presents, for that
                                                                                            agency, the maximum practicable opportunity for small
                                                                                            business concerns, small business concerns owned and con-
                                                                                            trolled by service-disabled veterans, qualified HUBZone
                                                                                            small business concerns, small business concerns owned
                                                                                            and controlled by socially and economically disadvantaged
                                                                                            individuals, and small business concerns owned and con-
                                                                                            trolled by women to participate in the performance of con-
                                                                                            tracts let by such agency. The Small Business Administra-
                                                                                            tion and the Administrator for Federal Procurement Policy
                                                                                            shall, when exercising their authority pursuant to para-
                                                                                            graph (2), insure that the cumulative annual prime con-
                                                                                            tract goals for all agencies meet or exceed the annual Gov-
                                                                                            ernmentwide prime contract goal established by the Presi-
                                                                                            dent pursuant to this paragraph.
                                                                                     (2)(A) The head of each Federal agency shall, after consultation
                                                                                  with the Administration, establish goals for the participation by
                                                                                  small business concerns, by small business concerns owned and
                                                                                  controlled by service-disabled veterans, by qualified HUBZone
                                                                                  small business concerns, by small business concerns owned and
                                                                                  controlled by socially and economically disadvantaged individuals,
                                                                                  and by small business concerns owned and controlled by women in
                                                                                  procurement contracts of such agency. Such goals shall separately
                                                                                  address prime contract awards and subcontract awards for each
                                                                                  category of small business covered.
                                                                                     (B) Goals established under this subsection shall be jointly estab-
                                                                                  lished by the Administration and the head of each Federal agency
                                                                                  and shall realistically reflect the potential of small business con-
                                                                                  cerns, small business concerns owned and controlled by service-dis-
                                                                                  abled veterans, qualified HUBZone small business concerns, small
                                                                                  business concerns owned and controlled by socially and economi-
                                                                                  cally disadvantaged individuals, and small business concerns
                                                                                  owned and controlled by women to perform such contracts and to
                                                                                  perform subcontracts under such contracts.
                                                                                     (C) Whenever the Administration and the head of any Federal
                                                                                  agency fail to agree on established goals, the disagreement shall be
                                                                                  submitted to the Administrator for Federal Procurement Policy for
                                                                                  final determination.
                                                                                     (D) After establishing goals under this paragraph for a fiscal
                                                                                  year, the head of each Federal agency shall develop a plan for
                                                                                  achieving such goals at both the prime contract and the sub-
                                                                                  contract level, which shall apportion responsibilities among the
                                                                                  agency’s acquisition executives and officials. In establishing goals
                                                                                  under this paragraph, the head of each Federal agency shall make




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                                                                                  a consistent effort to annually expand participation by small busi-
                                                                                  ness concerns from each industry category in procurement con-
                                                                                  tracts and subcontracts of such agency, including participation by




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                                                                                  small business concerns owned and controlled by service-disabled
                                                                                  veterans, qualified HUBZone small business concerns, small busi-
                                                                                  ness concerns owned and controlled by socially and economically
                                                                                  disadvantaged individuals, and small business concerns owned and
                                                                                  controlled by women.
                                                                                          (E) The head of each Federal agency, in attempting to attain
                                                                                       expanded participation under subparagraph (D), shall con-
                                                                                       sider—
                                                                                               (i) contracts awarded as the result of unrestricted com-
                                                                                            petition; and
                                                                                               (ii) contracts awarded after competition restricted to eli-
                                                                                            gible small business concerns under this section and under
                                                                                            the program established under section 8(a).
                                                                                          (F)(i) Each procurement employee or program manager de-
                                                                                       scribed in clause (ii) shall communicate to the subordinates of
                                                                                       the procurement employee or program manager the importance
                                                                                       of achieving goals established under subparagraph (A).
                                                                                               (ii) A procurement employee or program manager de-
                                                                                            scribed in this clause is a senior procurement executive,
                                                                                            senior program manager, or Director of Small and Dis-
                                                                                            advantaged Business Utilization of a Federal agency hav-
                                                                                            ing contracting authority.
                                                                                    (3) First tier subcontracts that are awarded by Management and
                                                                                  Operating contractors sponsored by the Department of Energy to
                                                                                  small business concerns, small businesses concerns owned and con-
                                                                                  trolled by service disabled veterans, qualified HUBZone small busi-
                                                                                  ness concerns, small business concerns owned and controlled by so-
                                                                                  cially and economically disadvantaged individuals, and small busi-
                                                                                  ness concerns owned and controlled by women, shall be considered
                                                                                  toward the annually established agency and Government-wide
                                                                                  goals for procurement contracts awarded.
                                                                                          (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
                                                                                       calculating the goals established—
                                                                                               (A) under paragraph (1)(A)(v); and
                                                                                               (B) by the head of a Federal agency for small business
                                                                                            concerns owned and controlled by women under paragraph
                                                                                            (2).
                                                                                    (h) REPORTING ON GOALS FOR PROCUREMENT CONTRACTS AWARD-
                                                                                  ED TO SMALL BUSINESS CONCERNS.—
                                                                                          (1) AGENCY REPORTS.—At the conclusion of each fiscal year,
                                                                                       the head of each Federal agency shall submit to the Adminis-
                                                                                       trator a report describing—
                                                                                               (A) the extent of the participation by small business con-
                                                                                            cerns, small business concerns owned and controlled by
                                                                                            veterans (including service-disabled veterans), qualified
                                                                                            HUBZone small business concerns, small business con-
                                                                                            cerns owned and controlled by socially and economically
                                                                                            disadvantaged individuals, and small business concerns
                                                                                            owned and controlled by women in the procurement con-
                                                                                            tracts of such agency during such fiscal year;




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                                                                                               (B) whether the agency achieved the goals established
                                                                                            for the agency under subsection (g)(2) with respect to such
                                                                                            fiscal year;




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




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                                                                                                            (III) through competitions restricted to small
                                                                                                         business concerns;




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                                                                                                              (IV) through competitions restricted to small
                                                                                                           business concerns owned and controlled by serv-
                                                                                                           ice-disabled veterans;
                                                                                                              (V) through unrestricted competition;
                                                                                                              (VI) that were purchased by another entity after
                                                                                                           the initial contract was awarded and as a result
                                                                                                           of the purchase, would no longer be deemed to be
                                                                                                           small business concerns owned and controlled by
                                                                                                           service-disabled veterans for purposes of the ini-
                                                                                                           tial contract; and
                                                                                                              (VII) that were awarded using a procurement
                                                                                                           method that restricted competition to qualified
                                                                                                           HUBZone small business concerns, small business
                                                                                                           concerns owned and controlled by socially and eco-
                                                                                                           nomically disadvantaged individuals, small busi-
                                                                                                           ness concerns owned and controlled by women, or
                                                                                                           a subset of any such concerns;
                                                                                                        (iii) qualified HUBZone small business concerns—
                                                                                                              (I) in the aggregate;
                                                                                                              (II) through sole source contracts;
                                                                                                              (III) through competitions restricted to small
                                                                                                           business concerns;
                                                                                                              (IV) through competitions restricted to qualified
                                                                                                           HUBZone small business concerns;
                                                                                                              (V) through unrestricted competition where a
                                                                                                           price evaluation preference was used;
                                                                                                              (VI) through unrestricted competition where a
                                                                                                           price evaluation preference was not used;
                                                                                                              (VII) that were purchased by another entity
                                                                                                           after the initial contract was awarded and as a re-
                                                                                                           sult of the purchase, would no longer be deemed
                                                                                                           to be qualified HUBZone small business concerns
                                                                                                           for purposes of the initial contract; and
                                                                                                              (VIII) that were awarded using a procurement
                                                                                                           method that restricted competition to small busi-
                                                                                                           ness concerns owned and controlled by service-dis-
                                                                                                           abled veterans, small business concerns owned
                                                                                                           and controlled by socially and economically dis-
                                                                                                           advantaged individuals, small business concerns
                                                                                                           owned and controlled by women, or a subset of
                                                                                                           any such concerns;
                                                                                                        (iv) small business concerns owned and controlled by
                                                                                                      socially and economically disadvantaged individuals—
                                                                                                              (I) in the aggregate;
                                                                                                              (II) through sole source contracts;
                                                                                                              (III) through competitions restricted to small
                                                                                                           business concerns;
                                                                                                              (IV) through competitions restricted to small
                                                                                                           business concerns owned and controlled by so-
                                                                                                           cially and economically disadvantaged individuals;
                                                                                                              (V) through unrestricted competition;




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                                                                                                              (VI) by reason of that concern’s certification as
                                                                                                           a small business owned and controlled by socially
                                                                                                           and economically disadvantaged individuals;




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                                                                                                              (VII) that were purchased by another entity
                                                                                                           after the initial contract was awarded and as a re-
                                                                                                           sult of the purchase, would no longer be deemed
                                                                                                           to be small business concerns owned and con-
                                                                                                           trolled by socially and economically disadvantaged
                                                                                                           individuals for purposes of the initial contract;
                                                                                                           and
                                                                                                              (VIII) that were awarded using a procurement
                                                                                                           method that restricted competition to small busi-
                                                                                                           ness concerns owned and controlled by service-dis-
                                                                                                           abled veterans, qualified HUBZone small business
                                                                                                           concerns, small business concerns owned and con-
                                                                                                           trolled by women, or a subset of any such con-
                                                                                                           cerns;
                                                                                                         (v) small business concerns owned by an Indian
                                                                                                      tribe (as such term is defined in section 8(a)(13)) other
                                                                                                      than an Alaska Native Corporation—
                                                                                                              (I) in the aggregate;
                                                                                                              (II) through sole source contracts;
                                                                                                              (III) through competitions restricted to small
                                                                                                           business concerns;
                                                                                                              (IV) through competitions restricted to small
                                                                                                           business concerns owned and controlled by so-
                                                                                                           cially and economically disadvantaged individuals;
                                                                                                              (V) through unrestricted competition; and
                                                                                                              (VI) that were purchased by another entity after
                                                                                                           the initial contract was awarded and as a result
                                                                                                           of the purchase, would no longer be deemed to be
                                                                                                           small business concerns owned by an Indian tribe
                                                                                                           other than an Alaska Native Corporation for pur-
                                                                                                           poses of the initial contract;
                                                                                                         (vi) small business concerns owned by a Native Ha-
                                                                                                      waiian Organization—
                                                                                                              (I) in the aggregate;
                                                                                                              (II) through sole source contracts;
                                                                                                              (III) through competitions restricted to small
                                                                                                           business concerns;
                                                                                                              (IV) through competitions restricted to small
                                                                                                           business concerns owned and controlled by so-
                                                                                                           cially and economically disadvantaged individuals;
                                                                                                              (V) through unrestricted competition; and
                                                                                                              (VI) that were purchased by another entity after
                                                                                                           the initial contract was awarded and as a result
                                                                                                           of the purchase, would no longer be deemed to be
                                                                                                           small business concerns owned by a Native Ha-
                                                                                                           waiian Organization for purposes of the initial
                                                                                                           contract;
                                                                                                         (vii) small business concerns owned by an Alaska
                                                                                                      Native Corporation—
                                                                                                              (I) in the aggregate;
                                                                                                              (II) through sole source contracts;




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                                                                                                              (III) through competitions restricted to small
                                                                                                           business concerns;




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                                                                                                           (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-
                                                                                              disabled veterans, qualified HUBZone small business con-
                                                                                              cerns, small business concerns owned and controlled by so-
                                                                                              cially and economically disadvantaged individuals, and
                                                                                              small business concerns owned and controlled by women,
                                                                                              provided that such information is publicly available
                                                                                              through data systems developed pursuant to the Federal
                                                                                              Funding Accountability and Transparency Act of 2006
                                                                                              (Public Law 109 282), or otherwise available as provided




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                                                                                              in paragraph (3).
                                                                                            (3) PROCUREMENT DATA.—
                                                                                                 (A) FEDERAL PROCUREMENT DATA SYSTEM.—




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




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                                                                                  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.




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                                                                                     (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 Federal
                                                                                  Acquisition Streamlining Act of 1994.
                                                                                     (k) There is hereby established in each Federal agency having
                                                                                  procurement powers an office to be known as the ‘‘Office of Small
                                                                                  and Disadvantaged Business Utilization’’. The management of each
                                                                                  such office shall be vested in an officer or employee of such agency,
                                                                                  with experience serving in any combination of the following roles:
                                                                                  program manager, deputy program manager, or assistant program
                                                                                  manager for Federal acquisition program; chief engineer, systems
                                                                                  engineer, assistant engineer, or product support manager for Fed-
                                                                                  eral acquisition program; Federal contracting officer; small busi-
                                                                                  ness technical advisor; contracts administrator for Federal Govern-
                                                                                  ment contracts; attorney specializing in Federal procurement law;
                                                                                  small business liaison officer; officer or employee who managed
                                                                                  Federal Government contracts for a small business; or individual
                                                                                  whose primary responsibilities were for the functions and duties of
                                                                                  section 8, 15, 31, 36, or 44 of this Act. Such officer or employee—
                                                                                           (1) shall be known as the ‘‘Director of Small and Disadvan-
                                                                                        taged Business Utilization’’ for such agency;
                                                                                           (2) shall be appointed by the head of such agency to a posi-
                                                                                        tion that is a Senior Executive Service position (as such term
                                                                                        is defined under section 3132(a) of title 5, United States Code),
                                                                                        except that, for any agency in which the positions of Chief Ac-
                                                                                        quisition Officer and senior procurement executive (as such
                                                                                        terms are defined under section 44(a) of this Act) are not Sen-
                                                                                        ior Executive Service positions, the Director of Small and Dis-
                                                                                        advantaged Business Utilization may be appointed to a posi-
                                                                                        tion compensated at not less than the minimum rate of basic
                                                                                        pay payable for grade GS 15 of the General Schedule under
                                                                                        section 5332 of such title (including comparability payments
                                                                                        under section 5304 of such title);
                                                                                           (3) shall be responsible only to (including with respect to per-
                                                                                        formance appraisals), and report directly and exclusively to,
                                                                                        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-




rfrederick on LAP8M3WLY3PROD with HEARING
                                                                                        ance appraisals), and report directly and exclusively to, such
                                                                                        Secretary or the Secretary’s designee;




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                                                                                            (4) shall be responsible for the implementation and execution
                                                                                         of the functions and duties under sections 8, 15, 31, 36, and
                                                                                         44 of this Act which relate to such agency;
                                                                                            (5) shall identify proposed solicitations that involve signifi-
                                                                                         cant bundling of contract requirements, and work with the
                                                                                         agency acquisition officials and the Administration to revise
                                                                                         the procurement strategies for such proposed solicitations
                                                                                         where appropriate to increase the probability of participation
                                                                                         by small businesses as prime contractors, or to facilitate small
                                                                                         business participation as subcontractors and suppliers, if a so-
                                                                                         licitation for a bundled contract is to be issued;
                                                                                            (6) shall assist small business concerns to obtain payments,
                                                                                         required late payment interest penalties, or information re-
                                                                                         garding payments due to such concerns from an executive
                                                                                         agency or a contractor, in conformity with chapter 39 of title
                                                                                         31, United States Code, or any other protection for contractors
                                                                                         or subcontractors (including suppliers) that is included in the
                                                                                         Federal Acquisition Regulation or any individual agency sup-
                                                                                         plement to such Government-wide regulation;
                                                                                            (7) shall have supervisory authority over personnel of such
                                                                                         agency to the extent that the functions and duties of such per-
                                                                                         sonnel relate to functions and duties under sections 8, 15, 31,
                                                                                         36, and 44 of this Act;
                                                                                            (8) shall assign a small business technical adviser to each of-
                                                                                         fice to which the Administration has assigned a procurement
                                                                                         center representative—
                                                                                                 (A) who shall be a full-time employee of the procuring
                                                                                              activity and shall be well qualified, technically trained and
                                                                                              familiar with the supplies or services purchased at the ac-
                                                                                              tivity; and
                                                                                                 (B) whose principal duty shall be to assist the Adminis-
                                                                                              tration procurement center representative in his duties
                                                                                              and functions relating to sections 8, 15, 31, 36, and 44 of
                                                                                              this Act,
                                                                                            (9) shall cooperate, and consult on a regular basis, with the
                                                                                         Administration with respect to carrying out the functions and
                                                                                         duties described in paragraph (4) of this subsection;
                                                                                            (10) shall make recommendations to contracting officers as to
                                                                                         whether a particular contract requirement should be awarded
                                                                                         pursuant to subsection (a) or section 8, 15, 31, or 36 of this Act,
                                                                                         and the failure of the contracting officer to accept any such rec-
                                                                                         ommendations shall be documented and included within the
                                                                                         appropriate contract file;
                                                                                            (11) shall review and advise such agency on any decision to
                                                                                         convert an activity performed by a small business concern to
                                                                                         an activity performed by a Federal employee;
                                                                                            (12) shall provide to the Chief Acquisition Officer and senior
                                                                                         procurement executive of such agency advice and comments on
                                                                                         acquisition strategies, market research, and justifications re-
                                                                                         lated to section 44 of this Act;
                                                                                            (13) may provide training to small business concerns and
                                                                                         contract specialists, except that such training may only be pro-




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                                                                                         vided to the extent that the training does not interfere with
                                                                                         the Director carrying out other responsibilities under this sub-
                                                                                         section;




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                                                                                            (14) shall receive unsolicited proposals and, when appro-
                                                                                         priate, forward such proposals to personnel of the activity re-
                                                                                         sponsible for reviewing such proposals;
                                                                                            (15) shall carry out exclusively the duties enumerated in this
                                                                                         Act, and shall, while the Director, not hold any other title, po-
                                                                                         sition, or responsibility, except as necessary to carry out re-
                                                                                         sponsibilities under this subsection;
                                                                                            (16) shall submit, each fiscal year, to the Committee on
                                                                                         Small Business of the House of Representatives and the Com-
                                                                                         mittee on Small Business and Entrepreneurship of the Senate
                                                                                         a report describing—
                                                                                                 (A) the training provided by the Director under para-
                                                                                              graph (13) in the most recently completed fiscal year;
                                                                                                 (B) the percentage of the budget of the Director used for
                                                                                              such training in the most recently completed fiscal year;
                                                                                                 (C) the percentage of the budget of the Director used for
                                                                                              travel in the most recently completed fiscal year; and
                                                                                                 (D) any failure of the agency to comply with section 8,
                                                                                              15, 31, or 36;
                                                                                            (17) shall, when notified by a small business concern prior to
                                                                                         the award of a contract that the small business concern be-
                                                                                         lieves that a solicitation, request for proposal, or request for
                                                                                         quotation unduly restricts the ability of the small business con-
                                                                                         cern to compete for the award—
                                                                                                 (A) submit the notice of the small business concern to
                                                                                              the contracting officer and, if necessary, recommend ways
                                                                                              in which the solicitation, request for proposal, or request
                                                                                              for quotation may be altered to increase the opportunity
                                                                                              for competition;
                                                                                                 (B) inform the advocate for competition of such agency
                                                                                              (as established under section 1705 of title 41, United
                                                                                              States Code, or section 3249 of title 10, United States
                                                                                              Code) of such notice; and
                                                                                                 (C) ensure that the small business concern is aware of
                                                                                              other resources and processes available to address unduly
                                                                                              restrictive provisions in a solicitation, request for proposal,
                                                                                              or request for quotation, even if such resources and proc-
                                                                                              esses are provided by such agency, the Administration, the
                                                                                              Comptroller General, or a procurement technical assist-
                                                                                              ance program established under chapter 388 of title 10,
                                                                                              United States Code;
                                                                                            (18) shall review summary data provided by purchase card
                                                                                         issuers of purchases made by the agency greater than the
                                                                                         micro-purchase threshold (as defined under section 1902 of
                                                                                         title 41, United Stated Code) and less than the simplified ac-
                                                                                         quisition threshold to ensure that the purchases have been
                                                                                         made in compliance with the provisions of this Act and have
                                                                                         been properly recorded in the Federal Procurement Data Sys-
                                                                                         tem, if the method of payment is a purchase card issued by the
                                                                                         Department of Defense pursuant to section 4754 of title 10,
                                                                                         United States Code, or by the head of an executive agency pur-
                                                                                         suant to section 1909 of title 41, United States Code;




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                                                                                            (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-




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                                                                                       cation and training on compliance with contracting regulations
                                                                                       (including the Federal Acquisition Regulation) after award of
                                                                                       such a contract or subcontract;
                                                                                          (20) shall review all subcontracting plans required by para-
                                                                                       graph (4) or (5) of section 8(d) to ensure that the plan provides
                                                                                       maximum practicable opportunity for small business concerns
                                                                                       to participate in the performance of the contract to which the
                                                                                       plan applies;
                                                                                          (21) shall consult with the appropriate personnel from the
                                                                                       relevant Federal agency to assist small business concerns par-
                                                                                       ticipating in a SBIR or STTR program under section 9 with re-
                                                                                       searching applicable solicitations for the award of a Federal
                                                                                       contract (particularly with the Federal agency that has a fund-
                                                                                       ing agreement, as defined under section 9, with the concern)
                                                                                       to market the research developed by such concern under such
                                                                                       SBIR or STTR program.
                                                                                  This subsection shall not apply to the Administration.
                                                                                    (l) PROCUREMENT CENTER REPRESENTATIVES.—
                                                                                          (1) ASSIGNMENT AND ROLE.—The Administrator shall assign
                                                                                       to each major procurement center a procurement center rep-
                                                                                       resentative with such assistance as may be appropriate.
                                                                                          (2) ACTIVITIES.—A procurement center representative is au-
                                                                                       thorized to—
                                                                                          (A) attend any provisioning conference or similar evaluation
                                                                                       session during which determinations are made as to whether
                                                                                       requirements are to be procured through other than full and
                                                                                       open competition and make recommendations with respect to
                                                                                       such requirements to the members of such conference or ses-
                                                                                       sion;
                                                                                               (B) review, at any time, barriers to small business par-
                                                                                            ticipation in Federal contracting previously imposed on
                                                                                            goods and services through acquisition method coding or
                                                                                            similar procedures, and recommend to personnel of the ap-
                                                                                            propriate activity the prompt reevaluation of such barriers;
                                                                                               (C) review barriers to small business participation in
                                                                                            Federal contracting arising out of restrictions on the rights
                                                                                            of the United States in technical data, and, when appro-
                                                                                            priate, recommend that personnel of the appropriate activ-
                                                                                            ity initiate a review of the validity of such an asserted re-
                                                                                            striction;
                                                                                               (D) review any bundled or consolidated solicitation or
                                                                                            contract in accordance with this Act;
                                                                                               (E) have access to procurement records and other data
                                                                                            of the procurement center commensurate with the level of
                                                                                            such representative’s approved security clearance classi-
                                                                                            fication, with such data provided upon request in elec-
                                                                                            tronic format, when available;
                                                                                               (F) receive unsolicited proposals from small business
                                                                                            concerns and transmit such proposals to personnel of the
                                                                                            activity responsible for reviewing such proposals, who shall
                                                                                            furnish the procurement center representative with infor-
                                                                                            mation regarding the disposition of any such proposal;




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                                                                                               (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-




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                                                                                           section (k) with regard to agency insourcing decisions cov-
                                                                                           ered by subsection (k)(11);
                                                                                              (H) be an advocate for the maximum practicable utiliza-
                                                                                           tion of small business concerns in Federal contracting, in-
                                                                                           cluding by advocating against the consolidation or bun-
                                                                                           dling of contract requirements when not justified;
                                                                                              (I) assist small business concerns with finding resources
                                                                                           for education and training on compliance with contracting
                                                                                           regulations (including the Federal Acquisition Regulation)
                                                                                           after award of a contract or subcontract;
                                                                                              (J) consult with the appropriate personnel from the rel-
                                                                                           evant Federal agency, to assist small business concerns
                                                                                           participating in a SBIR or STTR program under section 9
                                                                                           with Phase III;
                                                                                              (K) carry out any other responsibility assigned by the
                                                                                           Administrator.
                                                                                         (3) APPEALS.—A procurement center representative is au-
                                                                                       thorized to appeal the failure to act favorably on any rec-
                                                                                       ommendation made pursuant to paragraph (2). Such appeal
                                                                                       shall be filed and processed in the same manner and subject
                                                                                       to the same conditions and limitations as an appeal filed by
                                                                                       the Administrator pursuant to subsection (a).
                                                                                    (4) The Administration shall assign and co-locate at least two
                                                                                  small business technical advisers to each major procurement center
                                                                                  in addition to such other advisers as may be authorized from time
                                                                                  to time. The sole duties of such advisers shall be to assist the pro-
                                                                                  curement center representative for the center to which such advis-
                                                                                  ers are assigned in carrying out the functions described in para-
                                                                                  graph (2) and the representatives referred to in subsection (k)(6).
                                                                                         (5) POSITION REQUIREMENTS.—
                                                                                              (A) IN GENERAL.—A procurement center representative
                                                                                           assigned under this subsection shall—
                                                                                                    (i) be a full-time employee of the Administration;
                                                                                                    (ii) be fully qualified, technically trained, and famil-
                                                                                                 iar with the goods and services procured by the major
                                                                                                 procurement center to which that representative is as-
                                                                                                 signed; and
                                                                                                    (iii) have the certification described in subparagraph
                                                                                                 (C).
                                                                                              (B) COMPENSATION.—The Administrator shall establish
                                                                                           personnel positions for procurement center representatives
                                                                                           assigned under this subsection, which are classified at a
                                                                                           grade level of the General Schedule sufficient to attract
                                                                                           and retain highly qualified personnel.
                                                                                              (C) CERTIFICATION REQUIREMENTS.—
                                                                                                    (i) IN GENERAL.—Consistent with the requirements
                                                                                                 of clause (ii), a procurement center representative
                                                                                                 shall have a Level III Federal Acquisition Certification
                                                                                                 in Contracting (or any successor certification) or the
                                                                                                 equivalent Department of Defense certification, except
                                                                                                 that any person serving in such a position on or before
                                                                                                 January 3, 2013, may continue to serve in that posi-




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                                                                                                 tion for a period of 5 years without the required cer-
                                                                                                 tification.
                                                                                                    (ii) DELAY OF CERTIFICATION REQUIREMENTS.—




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                                                                                                          (I) TIMING.—The certification described in
                                                                                                        clause (i) is not required for any person serving as
                                                                                                        a procurement center representative until the
                                                                                                        date that is one calendar year after the date such
                                                                                                        person is appointed as a procurement center rep-
                                                                                                        resentative.
                                                                                                          (II) APPLICATION.—The requirements of sub-
                                                                                                        clause (I) shall—
                                                                                                                (aa) be included in any initial job posting
                                                                                                             for the position of a procurement center rep-
                                                                                                             resentative; and
                                                                                                                (bb) apply to any person appointed as a pro-
                                                                                                             curement center representative after January
                                                                                                             3, 2013.
                                                                                           (6) MAJOR PROCUREMENT CENTER DEFINED.—For purposes of
                                                                                         this subsection, the term ‘‘major procurement center’’ means a
                                                                                         procurement center that, in the opinion of the Administrator,
                                                                                         purchases substantial dollar amounts of goods or services, in-
                                                                                         cluding goods or services that are commercially available.
                                                                                           (7) TRAINING.—
                                                                                                 (A) AUTHORIZATION.—At such times as the Adminis-
                                                                                              trator deems appropriate, the breakout procurement center
                                                                                              representative shall conduct familiarization sessions for
                                                                                              contracting officers and other appropriate personnel of the
                                                                                              procurement center to which such representative is as-
                                                                                              signed. Such sessions shall acquaint the participants with
                                                                                              the provisions of this subsection and shall instruct them in
                                                                                              methods designed to further the purposes of such sub-
                                                                                              section.
                                                                                                 (B) LIMITATION.—A procurement center representative
                                                                                              may provide training under subparagraph (A) only to the
                                                                                              extent that the training does not interfere with the rep-
                                                                                              resentative carrying out other activities under this sub-
                                                                                              section.
                                                                                           (8) ANNUAL BRIEFING AND REPORT.—A procurement center
                                                                                         representative shall prepare and personally deliver an annual
                                                                                         briefing and report to the head of the procurement center to
                                                                                         which such representative is assigned. Such briefing and re-
                                                                                         port shall detail the past and planned activities of the rep-
                                                                                         resentative and shall contain such recommendations for im-
                                                                                         provement in the operation of the center as may be appro-
                                                                                         priate. The head of such center shall personally receive such
                                                                                         briefing and report and shall, within 60 calendar days after re-
                                                                                         ceipt, respond, in writing, to each recommendation made by
                                                                                         such representative.
                                                                                           (9) SCOPE OF REVIEW.—The Administrator—
                                                                                                 (A) may not limit the scope of review by the procurement
                                                                                              center representative for any solicitation of a contract or
                                                                                              task order without regard to whether the contract or task
                                                                                              order or part of the contract or task order is set aside for
                                                                                              small business concerns, whether 1 or more contracts or




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                                                                                              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-




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                                                                                                                                  26

                                                                                            tract (as defined in subsection (s)) or a bundled or consoli-
                                                                                            dated task order; and
                                                                                               (B) shall, unless the contracting agency requests a re-
                                                                                            view, limit the scope of review by the procurement center
                                                                                            representative for any solicitation of a contract or task
                                                                                            order if such solicitation is awarded by or for the Depart-
                                                                                            ment of Defense and—
                                                                                                    (i) is conducted pursuant to section 22 of the Arms
                                                                                                 Export Control Act (22 U.S.C. 2762);
                                                                                                    (ii) is a humanitarian operation as defined in section
                                                                                                 401(e) of title 10, United States Code;
                                                                                                    (iii) is for a contingency operation, as defined in sec-
                                                                                                 tion 101(a)(13) of title 10, United States Code;
                                                                                                    (iv) is to be awarded pursuant to an agreement with
                                                                                                 the government of a foreign country in which Armed
                                                                                                 Forces of the United States are deployed; or
                                                                                                    (v) both the place of award and the place of perform-
                                                                                                 ance are outside of the United States and its terri-
                                                                                                 tories.
                                                                                     (m) ADDITIONAL DUTIES OF PROCUREMENT CENTER REPRESENTA-
                                                                                  TIVES.—All procurement center representatives (including those re-
                                                                                  ferred to in subsection (k)(6)), in addition to such other duties as
                                                                                  may be assigned by the Administrator, shall increase, insofar as
                                                                                  possible, the number and dollar value of procurements that may be
                                                                                  used for the programs established under this section and section
                                                                                  8(a).
                                                                                     (n) For purposes of this section, the determination of labor sur-
                                                                                  plus areas shall be made on the basis of the criteria in effect at
                                                                                  the time of the determination, except that any minimum popu-
                                                                                  lation criteria shall not exceed twenty-five thousand. Such deter-
                                                                                  mination, as modified by the preceding sentence, shall be made by
                                                                                  the Secretary of Labor.
                                                                                     (o) LIMITATIONS ON SUBCONTRACTING.—A concern may not be
                                                                                  awarded a contract under subsection (a) as a small business con-
                                                                                  cern unless the concern agrees to satisfy the requirements of sec-
                                                                                  tion 46.
                                                                                     (p) ACCESS TO DATA.—
                                                                                          (1) BUNDLED OR CONSOLIDATED CONTRACT DEFINED.—In this
                                                                                        subsection, the term ‘‘bundled or consolidated contract’’ has the
                                                                                        meaning given in subsection (s).
                                                                                          (2) DATABASE.—Not later than 180 days after the date of the
                                                                                        enactment of this subsection, the Administrator of the Small
                                                                                        Business Administration shall develop and shall thereafter
                                                                                        maintain a database containing data and information regard-
                                                                                        ing—
                                                                                               (A) each bundled contract awarded by a Federal agency;
                                                                                            and
                                                                                               (B) each small business concern that has been displaced
                                                                                            as a prime contractor as a result of the award of such a
                                                                                            contract.
                                                                                          (3) ANALYSIS.—For each bundled contract that is to be re-




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                                                                                        competed as a bundled contract, the Administrator shall deter-
                                                                                        mine—




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                                                                                               (A) the amount of savings and benefits (in accordance
                                                                                             with subsection (e)) achieved under the bundling of con-
                                                                                             tract requirements; and
                                                                                               (B) whether such savings and benefits will continue to
                                                                                             be realized if the contract remains bundled, and whether
                                                                                             such savings and benefits would be greater if the procure-
                                                                                             ment requirements were divided into separate solicitations
                                                                                             suitable for award to small business concerns.
                                                                                           (4) ANNUAL REPORT ON BUNDLED OR CONSOLIDATED CON-
                                                                                         TRACTS.—
                                                                                               (A) IN GENERAL.—Not later than 1 year after the date of
                                                                                             the enactment of this paragraph, and annually in March
                                                                                             thereafter, the Administration shall transmit a report on
                                                                                             bundled or consolidated contracts to the Committees on
                                                                                             Small Business of the House of Representatives and the
                                                                                             Senate.
                                                                                               (B) CONTENTS.—Each report transmitted under subpara-
                                                                                             graph (A) shall include—
                                                                                                    (i) data on the number, arranged by industrial clas-
                                                                                                 sification, of small business concerns displaced as
                                                                                                 prime contractors as a result of the award of bundled
                                                                                                 or consolidated contracts by Federal agencies; and
                                                                                                    (ii) a description of the activities with respect to pre-
                                                                                                 viously bundled or consolidated contracts of each Fed-
                                                                                                 eral agency during the preceding year, including—
                                                                                                          (I) data on the number and total dollar amount
                                                                                                       of all contract requirements that were included in
                                                                                                       bundled or consolidated contracts; and
                                                                                                          (II) with respect to each bundled or consolidated
                                                                                                       contract, data or information on—
                                                                                                               (aa) the justification for the bundling of con-
                                                                                                             tract requirements or the consolidation of con-
                                                                                                             tract requirements (as applicable);
                                                                                                               (bb) the cost savings realized by the bun-
                                                                                                             dling of contract requirements or the consoli-
                                                                                                             dation of contract requirements (as applica-
                                                                                                             ble) over the life of the contract;
                                                                                                               (cc) the extent to which maintaining con-
                                                                                                             tract requirements in a bundled or consoli-
                                                                                                             dated contract is projected to result in contin-
                                                                                                             ued cost savings;
                                                                                                               (dd) the extent to which the bundling of
                                                                                                             contract requirements or the consolidation of
                                                                                                             contract requirements (as applicable) com-
                                                                                                             plied with the contracting agency’s small busi-
                                                                                                             ness subcontracting plan, including the total
                                                                                                             dollar value awarded to small business con-
                                                                                                             cerns as subcontractors and the total dollar
                                                                                                             value previously awarded to small business
                                                                                                             concerns as prime contractors; and
                                                                                                               (ee) the impact of the bundling of contract
                                                                                                             requirements or the consolidation of contract




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                                                                                                             requirements (as applicable) on small busi-
                                                                                                             ness concerns unable to compete as prime
                                                                                                             contractors for the contract and on the indus-




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                                                                                                          tries of such small business concerns, includ-
                                                                                                          ing a description of any changes to the propor-
                                                                                                          tion of any such industry that is composed of
                                                                                                          small business concerns.
                                                                                        (5) ACCESS TO DATA.—
                                                                                             (A) FEDERAL PROCUREMENT DATA SYSTEM.—To assist in
                                                                                          the implementation of this section, the Administration
                                                                                          shall have access to information collected through the Fed-
                                                                                          eral Procurement Data System.
                                                                                             (B) AGENCY PROCUREMENT DATA SOURCES.—To assist in
                                                                                          the implementation of this section, the head of each con-
                                                                                          tracting agency shall provide to the Administrator data
                                                                                          and information described in paragraphs (2) and (4).
                                                                                    (q) REPORTS RELATED TO PROCUREMENT CENTER REPRESENTA-
                                                                                  TIVES.—
                                                                                        (1) TEAMING AND JOINT VENTURE REQUIREMENTS.—
                                                                                             (A) IN GENERAL.—Each Federal agency shall include in
                                                                                          each solicitation for any multiple award contract above the
                                                                                          substantial bundling threshold of the Federal agency a
                                                                                          provision soliciting bids from any responsible source, in-
                                                                                          cluding responsible small business concerns and teams or
                                                                                          joint ventures of small business concerns.
                                                                                             (B) TEAMS.—When evaluating an offer of a small busi-
                                                                                          ness prime contractor that includes a proposed team of
                                                                                          small business subcontractors for any multiple award con-
                                                                                          tract above the substantial bundling threshold of the Fed-
                                                                                          eral agency, the head of the agency shall consider the ca-
                                                                                          pabilities and past performance of each first tier subcon-
                                                                                          tractor that is part of the team as the capabilities and past
                                                                                          performance of the small business prime contractor.
                                                                                             (C) JOINT VENTURES.—When evaluating an offer of a
                                                                                          joint venture of small business concerns for any multiple
                                                                                          award contract above the substantial bundling threshold of
                                                                                          the Federal agency, if the joint venture does not dem-
                                                                                          onstrate sufficient capabilities or past performance to be
                                                                                          considered for award of a contract opportunity, the head of
                                                                                          the agency shall consider the capabilities and past per-
                                                                                          formance of each member of the joint venture as the capa-
                                                                                          bilities and past performance of the joint venture.
                                                                                        (2) POLICIES ON REDUCTION OF CONTRACT BUNDLING.—
                                                                                             (A) IN GENERAL.—Not later than 1 year after the date of
                                                                                          enactment of this subsection, the Federal Acquisition Reg-
                                                                                          ulatory Council established under section 25(a) of the Of-
                                                                                          fice of Federal Procurement Policy Act (41 U.S.C. 4219(a))
                                                                                          shall amend the Federal Acquisition Regulation issued
                                                                                          under section 25 of such Act to—
                                                                                                  (i) establish a Government-wide policy regarding
                                                                                               contract bundling, including regarding the solicitation
                                                                                               of teaming and joint ventures under paragraph (1);
                                                                                               and
                                                                                                  (ii) require that the policy established under clause
                                                                                               (i) be published on the website of each Federal agency.




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                                                                                             (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




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                                                                                            Federal Procurement Policy, the head of the Federal agen-
                                                                                            cy shall publish on the website of the Federal agency a list
                                                                                            and rationale for any bundled contract for which the Fed-
                                                                                            eral agency solicited bids or that was awarded by the Fed-
                                                                                            eral agency.
                                                                                          (3) REPORTING.—Not later than 90 days after the date of en-
                                                                                       actment of this subsection, and every 3 years thereafter, the
                                                                                       Administrator shall submit to the Committee on Small Busi-
                                                                                       ness and Entrepreneurship of the Senate and the Committee
                                                                                       on Small Business of the House of Representatives a report re-
                                                                                       garding procurement center representatives and commercial
                                                                                       market representatives, which shall—
                                                                                               (A) identify each area for which the Administration has
                                                                                            assigned a procurement center representative or a com-
                                                                                            mercial market representative;
                                                                                               (B) explain why the Administration selected the areas
                                                                                            identified under subparagraph (A); and
                                                                                               (C) describe the activities performed by procurement
                                                                                            center representatives and commercial market representa-
                                                                                            tives.
                                                                                    (r) MULTIPLE AWARD CONTRACTS.—Not later than 1 year after
                                                                                  the date of enactment of this subsection, the Administrator for Fed-
                                                                                  eral Procurement Policy and the Administrator, in consultation
                                                                                  with the Administrator of General Services, shall, by regulation, es-
                                                                                  tablish guidance under which Federal agencies may, at their dis-
                                                                                  cretion—
                                                                                          (1) set aside part or parts of a multiple award contract for
                                                                                       small business concerns, including the subcategories of small
                                                                                       business concerns identified in subsection (g)(2);
                                                                                          (2) notwithstanding the fair opportunity requirements under
                                                                                       section 3406(c) of title 10, United States Code, and section
                                                                                       303J(b) of the Federal Property and Administrative Services
                                                                                       Act of 1949 (41 U.S.C. 253j(b)), set aside orders placed against
                                                                                       multiple award contracts for small business concerns, including
                                                                                       the subcategories of small business concerns identified in sub-
                                                                                       section (g)(2); and
                                                                                          (3) reserve 1 or more contract awards for small business con-
                                                                                       cerns under full and open multiple award procurements, in-
                                                                                       cluding the subcategories of small business concerns identified
                                                                                       in subsection (g)(2).
                                                                                    (s) DATA QUALITY IMPROVEMENT PLAN.—
                                                                                          (1) IN GENERAL.—Not later than October 1, 2015, the Admin-
                                                                                       istrator of the Small Business Administration, in consultation
                                                                                       with the Small Business Procurement Advisory Council, the
                                                                                       Administrator for Federal Procurement Policy, and the Admin-
                                                                                       istrator of General Services, shall develop a plan to improve
                                                                                       the quality of data reported on bundled or consolidated con-
                                                                                       tracts in the Federal procurement data system (described in
                                                                                       section 1122(a)(4)(A) of title 41, United States Code).
                                                                                          (2) PLAN REQUIREMENTS.—The plan shall—
                                                                                               (A) describe the roles and responsibilities of the Admin-




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                                                                                            istrator of the Small Business Administration, each Direc-
                                                                                            tor of Small and Disadvantaged Business Utilization, the
                                                                                            Administrator for Federal Procurement Policy, the Admin-




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                                                                                             istrator of General Services, senior procurement execu-
                                                                                             tives, and Chief Acquisition Officers in—
                                                                                                     (i) improving the quality of data reported on bundled
                                                                                                  or consolidated contracts in the Federal procurement
                                                                                                  data system; and
                                                                                                     (ii) contributing to the annual report required by
                                                                                                  subsection (p)(4);
                                                                                                (B) recommend changes to policies and procedures, in-
                                                                                             cluding training procedures of relevant personnel, to prop-
                                                                                             erly identify and mitigate the effects of bundled or consoli-
                                                                                             dated contracts;
                                                                                                (C) recommend requirements for periodic and statis-
                                                                                             tically valid data verification and validation; and
                                                                                                (D) recommend clear data verification responsibilities.
                                                                                           (3) PLAN SUBMISSION.—The Administrator of the Small Busi-
                                                                                        ness Administration shall submit the plan to the Committee on
                                                                                        Small Business of the House of Representatives and the Com-
                                                                                        mittee on Small Business and Entrepreneurship of the Senate
                                                                                        not later than December 1, 2016.
                                                                                           (4) IMPLEMENTATION.—Not later than October 1, 2016, the
                                                                                        Administrator of the Small Business Administration shall im-
                                                                                        plement the plan described in this subsection.
                                                                                           (5) CERTIFICATION.—The Administrator shall annually pro-
                                                                                        vide to the Committee on Small Business of the House of Rep-
                                                                                        resentatives and the Committee on Small Business and Entre-
                                                                                        preneurship of the Senate a certification of the accuracy and
                                                                                        completeness of data reported on bundled and consolidated
                                                                                        contracts.
                                                                                           (6) DEFINITIONS.—In this subsection, the following defini-
                                                                                        tions apply:
                                                                                                (A) CHIEF ACQUISITION OFFICER; SENIOR PROCUREMENT
                                                                                             EXECUTIVE.—The terms ‘‘Chief Acquisition Officer’’ and
                                                                                             ‘‘senior procurement executive’’ have the meanings given
                                                                                             such terms in section 44(a) of this Act.
                                                                                                (B) BUNDLED OR CONSOLIDATED CONTRACT.—The term
                                                                                             ‘‘bundled or consolidated contract’’ means a bundled con-
                                                                                             tract (as defined in section 3(o)) or a contract resulting
                                                                                             from the consolidation of contracting requirements (as de-
                                                                                             fined in section 44(a)(2)).
                                                                                     (t) GAO REPORT ON SMALL BUSINESS ADMINISTRATION PROGRAMS
                                                                                  IN PUERTO RICO.—Not later than one year after the date of enact-
                                                                                  ment of this subsection, the Comptroller General of the United
                                                                                  States shall submit to the Committee on Small Business of the
                                                                                  House of Representatives and the Committee on Small Business
                                                                                  and Entrepreneurship of the Senate a report on the application and
                                                                                  utilization of contracting activities of the Administration (including
                                                                                  contracting activities relating to HUBZone small business concerns)
                                                                                  in Puerto Rico. The report shall also identify any provisions of Fed-
                                                                                  eral law that may create an obstacle to the efficient implementa-
                                                                                  tion of such contracting activities.
                                                                                     (u) POST-AWARD COMPLIANCE RESOURCES.—The Administrator
                                                                                  shall provide to small business development centers and entities




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                                                                                  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-




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                                                                                                                                  31

                                                                                  tion, a list of resources for small business concerns seeking edu-
                                                                                  cation and assistance on compliance with contracting regulations
                                                                                  (including the Federal Acquisition Regulation) after award of a con-
                                                                                  tract or subcontract.
                                                                                     (v) REGULATORY CHANGES AND TRAINING MATERIALS.—Not less
                                                                                  than annually, the Administrator shall provide to the Defense Ac-
                                                                                  quisition University (established under section 1746 of title 10,
                                                                                  United States Code), the Federal Acquisition Institute (established
                                                                                  under section 1201 of title 41, United States Code), the individual
                                                                                  responsible for mandatory training and education of the acquisition
                                                                                  workforce of each agency (described under section 1703(f)(1)(C) of
                                                                                  title 41, United States Code), small business development centers,
                                                                                  and entities participating in the Procurement Technical Assistance
                                                                                  Cooperative Agreement Program under chapter 388 of title 10,
                                                                                  United States Code—
                                                                                         (1) a list of all changes made in the prior year to regulations
                                                                                       promulgated—
                                                                                               (A) by the Administrator that affect Federal acquisition;
                                                                                            and
                                                                                               (B) by the Federal Acquisition Council that implement
                                                                                            amendments to this Act; and
                                                                                         (2) any materials the Administrator has developed that ex-
                                                                                       plain, train, or assist Federal agencies or departments or small
                                                                                       business concerns with compliance with the regulations de-
                                                                                       scribed in paragraph (1).
                                                                                     (w) SOLICITATION NOTICE REGARDING ADMINISTRATION OF
                                                                                  CHANGE ORDERS FOR CONSTRUCTION.—
                                                                                         (1) IN GENERAL.—With respect to any solicitation for the
                                                                                       award of a contract for construction anticipated to be awarded
                                                                                       to a small business concern, the agency administering such
                                                                                       contract shall provide a notice along with the solicitation to
                                                                                       prospective bidders and offerors that includes—
                                                                                               (A) information about the agency’s policies or practices
                                                                                            in complying with the requirements of the Federal Acquisi-
                                                                                            tion Regulation relating to the timely definitization of re-
                                                                                            quests for an equitable adjustment; and
                                                                                               (B) information about the agency’s past performance in
                                                                                            definitizing requests for equitable adjustments in accord-
                                                                                            ance with paragraph (2).
                                                                                         (2) REQUIREMENTS FOR AGENCIES.—An agency shall provide
                                                                                       the past performance information described under paragraph
                                                                                       (1)(B) as follows:
                                                                                               (A) For the 3-year period preceding the issuance of the
                                                                                            notice, to the extent such information is available.
                                                                                               (B) With respect to an agency that, on the date of the
                                                                                            enactment of this subsection, has not compiled the infor-
                                                                                            mation described under paragraph (1)(B)—
                                                                                                   (i) beginning 1 year after the date of the enactment
                                                                                                 of this subsection, for the 1-year period preceding the
                                                                                                 issuance of the notice;
                                                                                                   (ii) beginning 2 years after the date of the enact-




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                                                                                                 ment of this subsection, for the 2-year period pre-
                                                                                                 ceding the issuance of the notice; and




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                                                                                                 (iii) beginning 3 years after the date of the enact-
                                                                                               ment of this subsection and each year thereafter, for
                                                                                               the 3-year period preceding the issuance of the notice.
                                                                                        (3) FORMAT OF PAST PERFORMANCE INFORMATION.—In the no-
                                                                                     tice required under paragraph (1), the agency shall ensure that
                                                                                     the past performance information described under paragraph
                                                                                     (1)(B) is set forth separately for each definitization action that
                                                                                     was completed during the following periods:
                                                                                             (A) Not more than 30 days after receipt of a request for
                                                                                          an equitable adjustment.
                                                                                             (B) Not more than 60 days after receipt of a request for
                                                                                          an equitable adjustment.
                                                                                             (C) Not more than 90 days after receipt of a request for
                                                                                          an equitable adjustment.
                                                                                             (D) Not more than 180 days after receipt of a request for
                                                                                          an equitable adjustment.
                                                                                             (E) Not more than 365 days after receipt of a request for
                                                                                          an equitable adjustment.
                                                                                             (F) More than 365 days after receipt of a request for an
                                                                                          equitable adjustment.
                                                                                             (G) After the completion of the performance of the con-
                                                                                          tract through a contract modification addressing all
                                                                                          undefinitized requests for an equitable adjustment re-
                                                                                          ceived during the term of the contract.
                                                                                   (x) SMALL BUSINESS CREDIT FOR PUERTO RICO BUSINESSES AND
                                                                                  COVERED TERRITORY BUSINESSES.—
                                                                                        (1) CREDIT FOR MEETING CONTRACTING GOALS.—If an agency
                                                                                     awards a prime contract to Puerto Rico business or a covered
                                                                                     territory business, or a prime contractor awards a subcontract
                                                                                     (at any tier) to a subcontractor that is a Puerto Rico business
                                                                                     or a covered territory business, during the period beginning on
                                                                                     the date of enactment of this subsection and ending on the
                                                                                     date that is 4 years after such date of enactment, the value of
                                                                                     the contract or subcontract shall be doubled for purposes of de-
                                                                                     termining compliance with the goals for procurement contracts
                                                                                     under subsection (g)(1)(A) during such period.
                                                                                        (2) REPORT.—Along with the report required under sub-
                                                                                     section (h)(1), the head of each Federal agency shall submit to
                                                                                     the Administrator, and make publicly available on the score-
                                                                                     card (as defined in subsection (y)), an analysis of the number
                                                                                     and dollar amount of prime contracts awarded pursuant to
                                                                                     paragraph (1) for each fiscal year of the period described in
                                                                                     such paragraph.
                                                                                   (y) SCORECARD PROGRAM FOR EVALUATING FEDERAL AGENCY
                                                                                  COMPLIANCE WITH SMALL BUSINESS CONTRACTING GOALS.—
                                                                                        (1) USE OF SCORECARD.—The Administrator shall use a
                                                                                     scorecard to annually evaluate whether each Federal agency is
                                                                                     creating the maximum practicable opportunities for the award
                                                                                     of prime contracts and subcontracts to small business concerns,
                                                                                     small business concerns owned and controlled by service-dis-
                                                                                     abled veterans, qualified HUBZone small business concerns,
                                                                                     small business concerns owned and controlled by socially and




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                                                                                     economically disadvantaged individuals, and small business
                                                                                     concerns owned and controlled by women, by assigning a score
                                                                                     to each Federal agency for the previous fiscal year.




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




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                                                                                         base—
                                                                                                 (A) fifty percent of the score on the dollar value of prime
                                                                                              contracts described in paragraph (2)(A); and




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                                                                                                                                  34

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




rfrederick on LAP8M3WLY3PROD with HEARING
                                                                                                 (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
                                                                                  the government recruit women-owned small businesses and eco-
                                                                                  nomically     disadvantaged     women-owned      small    businesses
                                                                                  (EDWOSBs) into the federal marketplace and level the playing
                                                                                  field when they compete for contracts.
                                                                                     The data shows that women are starting and running small busi-
                                                                                  nesses at increasingly similar rates to their male counterparts but
                                                                                  they are not participating in the federal market at the same rate.
                                                                                  The number of companies in the economy are overwhelmingly
                                                                                  small, and about 40 percent woman-owned, while in the federal
                                                                                  marketplace, just over 28 percent are small, and less than five per-
                                                                                  cent are confirmed to be woman-owned.1
                                                                                     The federal government attempts to expand contracting opportu-
                                                                                  nities for WOSBs in two main ways: (a) setting an overall goal of
                                                                                  awarding 5% of federal contracting 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
                                                                                  if certain conditions are met.
                                                                                     The SBA’s Office of Government Contracting and Business De-
                                                                                  velopment certifies applicants seeking to enter the WOSB Program.
                                                                                  Currently, a WOSB must be certified to be awarded a contract that
                                                                                  is set-aside or sole sourced. But if a women-owned small business
                                                                                  who self-certifies their WOSB status is awarded a contract by a
                                                                                  federal agency through other methods, that federal agencies can
                                                                                  count the value of that contract toward their 5% procurement goal.
                                                                                     In 1994 when Congress first established the goal, it recognized
                                                                                  the obstacles that female entrepreneurs face competing in the fed-
                                                                                  eral market, stating in the committee report: ‘‘Given the slow
                                                                                  progress to date . . . this goal may take some time to be reached.’’
                                                                                  Three decades later, this remains an understatement.
                                                                                     The federal government topline goal of 5% for WOSBs has only
                                                                                  been met twice and federal agencies routinely miss their individual
                                                                                  WOSB goals, while the contracting authorities are underutilized
                                                                                  and represent a tiny percentage of contracts that count towards the
                                                                                  goal. Less than $2 billon of the almost $31 billion in contracts
                                                                                  awarded to women-owned small businesses are solicited in a way
                                                                                  that only WOSBs can compete.
                                                                                     While women-owned firms are not seeing the contracting oppor-
                                                                                  tunities that should accompany their level of participation in the
                                                                                  market, the goals continue to have value. In addition to the govern-
                                                                                   1 NAT’L WOMEN’S BUS. COUNCIL, NWBC 2024 ANNUAL REPORT, 45 (Dec. 2024), https://




rfrederick on LAP8M3WLY3PROD with HEARING
                                                                                  www.nwbc.gov/wp-content/uploads/2024/12/NWBC-2024-Annual-Report.pdf.
                                                                                                                                  (35)




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                                                                                                                                  36

                                                                                  ment-wide goal, there are two other that are important for women-
                                                                                  owned firms.
                                                                                     First, each federal agency attempts to meet their own 5% goal.
                                                                                  This helps WOSBs with products or services unique to that agen-
                                                                                  cy’s mission compete for their first government contract. In order
                                                                                  to a federal agency, the company has likely met most of the govern-
                                                                                  ment’s unique requirements and can then more easily sell their
                                                                                  products to other agencies. This process assists in expanding their
                                                                                  markets and diversifying their customer base.
                                                                                     Second, large prime contractors have to meet subcontracting
                                                                                  goals. There are challenges associated with subcontracting, subcon-
                                                                                  tracting requirements, and data but for many small businesses,
                                                                                  subcontracting is how they get a foot in the door to the federal
                                                                                  marketplace.
                                                                                     The purpose of this legislation is to protect the integrity of the
                                                                                  WOSB program and the WOSB goals but it will concurrently act
                                                                                  as an incentive for more women-owned small businesses to get cer-
                                                                                  tified. This would allow agency personal to better and more fre-
                                                                                  quently utilize the authorities designed to make contracting with
                                                                                  WOSBs easier—bringing more opportunities to all WOSB firms
                                                                                  and encouraging more women-owned small businesses to compete
                                                                                  for government contracts.
                                                                                     Study after study shows a shrinking industrial base. The govern-
                                                                                  ment has over 40% fewer small businesses in its ecosystem than
                                                                                  a decade ago.2 More small businesses are leaving the federal mar-
                                                                                  ket quicker and fewer and fewer are signing up to take their place.
                                                                                  This exodus has disproportionately impacted women-owned firms:
                                                                                  ‘‘From FY20 to FY21, there was a 6 percent decline in small busi-
                                                                                  ness owners awarded federal contracts, and WOSBs accounted for
                                                                                  a quarter of that decline.’’ 3
                                                                                     Expanding and protecting the WOSB program, as this bill will
                                                                                  do, will allow agencies to better utilize and leverage it to bring
                                                                                  more new small businesses—and their talent, innovation, and solu-
                                                                                  tions—into the federal marketplace.
                                                                                                                          NYDIA M. VELÁZQUEZ,
                                                                                                                                   Ranking Member.




                                                                                   2 GOV’T ACCOUNTABILITY OFF., SMALL BUSINESS CONTRACTING: ACTIONS NEEDED TO IMPLE-
                                                                                  MENT AND MONITOR DOD’S SMALL BUSINESS STRATEGY (Oct. 2021).




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                                                                                   3 NAT’L WOMEN’S BUS. COUNCIL, NWBC 2023 ANNUAL REPORT, 47 (Dec. 2023), https://
                                                                                  www.nwbc.gov/wp-content/uploads/2023/12/NWBC_AR_2023_FINAL-508.pdf.




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