SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Reliable Subcontractors 
Act of 2016'' or as the ``PROS Act of 2016''.

SEC. 2. PROVIDING SMALL BUSINESS SUBCONTRACTORS RATINGS FOR PAST 
              PERFORMANCE ON A CONTRACT.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended by adding at the end the following new paragraph:
            ``(17) Pilot program providing past performance ratings for 
        other small business subcontractors.--
                    ``(A) Establishment.--The Administrator shall 
                establish a pilot program for a small business concern 
                performing as a first tier subcontractor for a covered 
                contract (as defined in subparagraph 13(A)) to request 
                a past performance rating in the system used by the 
                Federal Government to monitor or record contractor past 
                performance.
                    ``(B) Application.--A small business concern 
                described in subparagraph (A) shall submit an 
                application to the appropriate official for a past 
                performance rating. Such application shall include 
                written evidence of the past performance factors for 
                which the small business concern seeks a rating and a 
                suggested rating.
                    ``(C) Determination.--The appropriate official 
                shall submit the application from the small business 
                concern to the contracting officer (or a designee of 
                such officer) for the covered contract and to the prime 
                contractor for review. The contracting officer (or 
                designee) and the prime contractor shall, not later 
                than 30 days after receipt of the application, submit 
                to the appropriate official a response regarding the 
                application.
                            ``(i) Agreement on rating.--If the 
                        contracting officer (or designee) and the prime 
                        contractor agree on a past performance rating, 
                        or if either the contracting officer (or 
                        designee) or the prime contractor fail to 
                        respond and the responding individual agrees 
                        with the rating of the applicant small business 
                        concern, the appropriate official shall enter 
                        the agreed-upon past performance rating in the 
                        system described in subparagraph (A).
                            ``(ii) Disagreement on rating.--If the 
                        contracting officer (or designee) and the prime 
                        contractor fail to respond within 30 days or if 
                        they disagree about the rating, or if either 
                        the contracting officer (or designee) or the 
                        prime contractor fail to respond and the 
                        responding individual disagrees with the rating 
                        of the applicant small business concern, the 
                        contracting officer (or designee) or the prime 
                        contractor shall submit a notice contesting the 
                        application to appropriate official. The 
                        appropriate official shall follow the 
                        requirements of subparagraph (D).
                    ``(D) Procedure for rating.--Not later than 14 
                calendar days after receipt of a notice under 
                subparagraph (C)(ii), the appropriate official shall 
                submit such notice to the applicant small business 
                concern. Such concern may submit comments, rebuttals, 
                or additional information relating to the past 
                performance of such concern not later 14 calendar days 
                after receipt of such notice. The appropriate official 
                shall enter the into the system described in 
                subparagraph (A) a rating that is neither favorable nor 
                unfavorable along with the initial application from the 
                small business concern, the responses of the 
                contracting officer (or designee) and the prime 
                contractor, and any additional information provided by 
                the small business concern.
                    ``(E) Use of information.--A small business 
                subcontractor may use a past performance rating given 
                under this paragraph to establish its past performance 
                for a prime contract.
                    ``(F) Duration.--The pilot program established 
                under this paragraph shall terminate 3 years after the 
                date on which the first small business concern receives 
                a past performance rating for performance as a first 
                tier subcontractor.
                    ``(G) Report.--The Comptroller General of the 
                United States shall begin an assessment of the pilot 
                program 1 year after the establishment of such program. 
                Not later than 6 months after beginning such 
                assessment, the Comptroller General shall submit a 
                report to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives, which 
                shall include--
                            ``(i) the number of small business concerns 
                        that have received past performance ratings 
                        under the pilot program;
                            ``(ii) the number of applications in which 
                        the contracting officer (or designee) or the 
                        prime contractor contested the application of 
                        the small business concern;
                            ``(iii) any suggestions or recommendations 
                        the Comptroller General or the small business 
                        concerns participating in the program have to 
                        address disputes between the small business 
                        concern, the contracting officer (or designee), 
                        and the prime contractor on past performance 
                        ratings; and
                            ``(iv) any suggestions or recommendation 
                        the Comptroller General has to improve the 
                        operation of the pilot program.
                    ``(H) Appropriate official defined.--In this 
                paragraph, the term `appropriate official' means a 
                Commercial Market Representative or other individual 
                designated by the senior official appointed by the 
                Administrator with responsibilities under sections 8, 
                15, 31 and 36.''.
Promoting Reliable Subcontractors Act of 2016 or the PROS Act of 2016 This bill amends the Small Business Act with respect to small businesses performing as first tier subcontractors under federal contracts whose prime contractor must develop a subcontracting plan.  The Small Business Administration shall establish a pilot program for such a small business to request a past performance rating in the system used by the federal government to monitor and record contractor past performance.
PROS Act of 2016