Small Business Subcontracting Transparency Act of 2015

Summary: Small Business Subcontracting Transparency Act of 2015 (Sec. 2) This bill amends the Small Business Act to revise requirements with respect to the Small Business Administration (SBA) review and acceptance of subcontracting plans. If a contractor or subcontractor fails to comply in good faith with assurances for the submission of periodic reports and cooperate in any studies or surveys required by the federal agency or the SBA to determine the extent of compliance with the contracting plan, such failure shall be a material breach of the contract or subcontract and may be considered in any past performance evaluation of the contractor. (Sec. 3) The bill eliminates the limitation that SBA findings submitted to an appropriate federal agency after review of solicitations for procurement contracts be &quot;advisory in nature.&quot; (Sec. 4) A federal agency's procurement center representative (PCR) or commercial market representative (CMR) may delay acceptance of a subcontracting plan for 30 days if the PCR or CMR determines that it fails to provide the maximum practicable opportunity for certain covered small businesses to participate in the performance of the applicable contract. The written notice of such determination to the contracting agency's head of the procuring activity must include recommendations for altering the plan to provide the maximum practicable opportunity. In the case of a Department of Defense PCR or CMR, the acceptance may be delayed for only 15 days. This delayed acceptance authority, however, does not include delay of the award or performance of the contract. A PCR or CMR may not delay acceptance of a subcontracting plan if the head of the contracting agency certifies that the agency's need for the supplies or services is of such an unusual and compelling urgency that the United States would be seriously injured unless the agency is permitted to accept the subcontracting plan. (Sec. 5) The SBA shall issue regulations providing examples of activities that would be considered a failure to make a good faith effort to comply with the requirements imposed on any entity (other than a small business) awarded a prime contract exceeding a certain amount that contains certain required SBA clauses regarding subcontracting plans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Subcontracting 
Transparency Act of 2015''.

SEC. 2. TRANSPARENCY IN SUBCONTRACTING GOALS.

    Section 8(d)(9) of the Small Business Act (15 U.S.C. 637(d)(9)) is 
amended--
            (1) by striking ``(9) The failure'' and inserting the 
        following:
            ``(9) Material breach.--The failure'';
            (2) in subparagraph (A), by striking ``subsection, or'' and 
        inserting ``subsection,'';
            (3) in subparagraph (B), by striking ``subcontract,'' and 
        inserting ``subcontract, or''; and
            (4) by moving subparagraphs (A) and (B) 2 ems to the right; 
        and
            (45) by inserting after subparagraph (B) the following:
                    ``(C) assurances provided under paragraph 
                (6)(E),''.

SEC. 3. AUTHORITY OF THE ADMINISTRATOR OF THE SMALL BUSINESS 
              ADMINISTRATION.

    Section 8(d)(11) of the Small Business Act (15 U.S.C. 637(d)(11)) 
is amended--
            (1) by striking ``(11) In the case of'' and inserting the 
        following:
            ``(11) Authority of administration.--In the case of''; and
            (2) in subparagraph (B), by striking ``, which shall be 
        advisory in nature,''.; and
            (3) by moving subparagraphs (A), (B), and (C) 2 ems to the 
        right.

SEC. 4. IMPROVING SUBCONTRACTING PLANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended by adding at the end the following:
            ``(17) Review and acceptance of subcontracting plans.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered small business concerns' means--
                            ``(i) small business concerns;
                            ``(ii) qualified HUBZone small business 
                        concerns;
                            ``(iii) small business concerns owned and 
                        controlled by veterans;
                            ``(iv) small business concerns owned and 
                        controlled by service-disabled veterans;
                            ``(v) small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals, as defined in 
                        paragraph (3)(C); and
                            ``(vi) small business concerns owned and 
                        controlled by women.
                    ``(B) Delayed acceptance of plan.--Except as 
                provided in subparagraph (E), if a procurement center 
                representative or commercial market representative 
                determines that a subcontracting plan required under 
                paragraph (4) or (5) fails to provide the maximum 
                practicable opportunity for covered small business 
                concerns to participate in the performance of the 
                contract to which the plan applies, the representative 
                may delay acceptance of the plan in accordance with 
                subparagraph (C).
                    ``(C) Process for delayed acceptance.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a procurement center 
                        representative or commercial market 
                        representative who makes a determination under 
                        subparagraph (B) with respect to a 
                        subcontracting plan may delay acceptance of the 
                        plan for a 30-day period by providing written 
                        notice of the determination to head of the 
                        procuring activity of the contracting agency 
                        that includes recommendations for altering the 
                        plan to provide the maximum practicable 
                        opportunity described in that subparagraph.
                            ``(ii) Exception.--In the case of the 
                        Department of Defense--
                                    ``(I) a procurement center 
                                representative or commercial market 
                                representative who makes a 
                                determination under subparagraph (B) 
                                with respect to a subcontracting plan 
                                may delay acceptance of the plan for a 
                                15-day period by providing written 
                                notice of the determination to 
                                appropriate personnel of the Department 
                                of Defense that includes 
                                recommendations for altering the plan 
                                to provide the maximum practicable 
                                opportunity described in that 
                                subparagraph; and
                                    ``(II) the authority of a 
                                procurement center representative or 
                                commercial market representative to 
                                delay acceptance of a subcontracting 
                                plan as provided in subparagraph (B) 
                                does not include the authority to delay 
                                the award or performance of the 
                                contract concerned.
                    ``(D) Disagreements.--If a procurement center 
                representative or commercial market representative 
                delays the acceptance of a subcontracting plan under 
                subparagraph (C) and does not reach agreement with the 
                head of the procuring activity of the contracting 
                agency to alter the plan to provide the maximum 
                practicable opportunity described in subparagraph (B) 
                not later than 30 days after the date on which written 
                notice was provided, the disagreement shall be 
                submitted to the head of the contracting agency by the 
                Administrator for a final determination.
                    ``(E) Exception.--A procurement center 
                representative or commercial market representative may 
                not delay the acceptance of a subcontracting plan if 
                the head of the contracting agency certifies that the 
                need of the agency for the supplies or services is of 
                such an unusual and compelling urgency that the United 
                States would be seriously injured unless the agency is 
                permitted to accept the subcontracting plan.''.

SEC. 5. GOOD FAITH COMPLIANCE.

    Not later than 270 days after the date of enactment of this Act, 
the Administrator of the Small Business Administration shall issue 
regulations providing examples of activities that would be considered a 
failure to make a good faith effort to comply with the requirements 
imposed on an entity, other than a small business concern, (as defined 
in section 3 of the Small Business Act (15 U.S.C. 632)), that is 
awarded a prime contract containing the clauses required under 
paragraphs paragraph (4) or (5) of section 8(d) of the Small Business 
Act (15 U.S.C. 637(d)).