To provide for a Small and Disadvantaged Business Ombudsman for Procurement in the Small Business Administration, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small and Disadvantaged Business 
Ombudsman Act''.

SEC. 2. SBA SMALL AND DISADVANTAGED BUSINESS OMBUDSMAN FOR PROCUREMENT.

    Section 30 of the Small Business Act (15 U.S.C. 657) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'';
                    (B) in paragraph (2), by striking the period and 
                adding a semicolon; and
                    (C) by adding at the end the following:
            ``(3) `SDB Ombudsman' means the Small and Disadvantaged 
        Business Ombudsman for Procurement, designated under subsection 
        (e); and
            ``(4) `Major Federal agency' means an agency of the United 
        States Government that, in the previous fiscal year, entered 
        into contracts with non-Federal entities to provide the agency 
        with a total of not less than $200,000,000 in goods or 
        services.''; and
            (2) by adding at the end the following:
    ``(e) SBA Small and Disadvantaged Business Ombudsman for 
Procurement.--
            ``(1) Appointment.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of the Small and Disadvantaged 
                Business Ombudsman Act, the Administrator shall 
                designate a Small and Disadvantaged Business Ombudsman 
                for Procurement (referred to in this section as the 
                `SDB Ombudsman').
                    ``(B) Qualifications.--The SDB Ombudsman shall be--
                            ``(i) highly qualified, with experience 
                        assisting small business concerns with Federal 
                        procurement; and
                            ``(ii) designated from among employees of 
                        the Federal Government, to the extent 
                        practicable.
                    ``(C) Line of authority.--The SDB Ombudsman shall 
                report directly to the Administrator.
                    ``(D) Senior executive service.--The SDB Ombudsman 
                shall be paid at an annual rate not less than the 
                minimum rate, nor more than the maximum rate, for the 
                Senior Executive Service under chapter 53 of title 5, 
                United States Code.
            ``(2) Duties.--The SDB Ombudsman shall--
                    ``(A) work with each Federal agency with 
                procurement authority to ensure that small business 
                concerns are treated fairly in the procurement process;
                    ``(B) establish a procedure for receiving comments 
                from small business concerns and personnel of the 
                Office of Small and Disadvantaged Business Utilization 
                of each Federal agency regarding the activities of 
                agencies and prime contractors that are not small 
                business concerns on Federal procurement contracts; and
                    ``(C) establish a procedure for addressing the 
                concerns received under subparagraph (B).
            ``(3) Annual report.--
                    ``(A) In general.--No later than 1 year after the 
                date of enactment of this subsection, and annually 
                thereafter, the SDB Ombudsman shall provide a report to 
                the Committee on Small Business of the House of 
                Representatives and the Committee on Small Business and 
                Entrepreneurship of the Senate.
                    ``(B) Contents.--The report required under 
                subparagraph (A) shall contain--
                            ``(i) information from the Federal 
                        Procurement Data System pertaining to 
                        contracting and subcontracting goals of the 
                        Federal Government and each Federal agency with 
                        procurement authority;
                            ``(ii) a copy of the report submitted to 
                        the SDB Ombudsman by each major Federal agency 
                        and an evaluation of the goal attainment plans 
                        submitted to the SDB Ombudsman pursuant to 
                        paragraph (5);
                            ``(iii) an evaluation of the success or 
                        failure of each major Federal agency in 
                        attaining its small business procurement goals, 
                        including a ranking by agency on the attainment 
                        of such goals;
                            ``(iv) a summary of the efforts of each 
                        major Federal agency to promote contracting 
                        opportunities for small business concerns by--
                                    ``(I) educating and training 
                                procurement officers on the importance 
                                of small business concerns to the 
                                economy and to Federal contracting; and
                                    ``(II) conducting outreach 
                                initiatives to promote prime and 
                                subcontracting opportunities for small 
                                business concerns;
                            ``(v) an assessment of the knowledge of the 
                        procurement staff of each major Federal agency 
                        concerning programs that promote small business 
                        contracting;
                            ``(vi) substantiated comments received from 
                        small business concerns and personnel of the 
                        Office of Small and Disadvantaged Business 
                        Utilization of each Federal agency regarding 
                        the treatment of small business concerns by 
                        Federal agencies on Federal procurement 
                        contracts;
                            ``(vii) an analysis of the responsiveness 
                        of each Federal agency to small business 
                        concerns with respect to Federal contracting 
                        and subcontracting;
                            ``(viii) an assessment of the compliance of 
                        each Federal agency with section 15(k) of the 
                        Small Business Act (15 U.S.C. 644(k); and
                            ``(ix) a description of any discrimination 
                        faced by small business concerns based on their 
                        status as small business concerns or the gender 
                        or the social or economic status of their 
                        owners.
                    ``(C) Notice and comment.--
                            ``(i) In general.--The SDB Ombudsman shall 
                        provide notice to each Federal agency 
                        identified in the report prepared under 
                        subparagraph (A) that such agency has 60 days 
                        to submit comments on the draft report to the 
                        SDB Ombudsman before the final report is 
                        submitted to Congress under subparagraph (A).
                            ``(ii) Inclusion of outside comments.--
                                    ``(I) In general.--The final report 
                                prepared under this paragraph shall 
                                contain a section in which Federal 
                                agencies are given an opportunity to 
                                respond to the report contents with 
                                which they disagree.
                                    ``(II) No response.--If no response 
                                is received during the 60-day comment 
                                period from a particular agency 
                                identified in the report, the final 
                                report under this paragraph shall 
                                indicate that the agency was afforded 
                                an opportunity to comment.
                    ``(D) Confidentiality.--In preparing the report 
                under this paragraph, the SDB Ombudsman shall keep 
                confidential all information that may expose a small 
                business concern or an employee of an Office of Small 
                and Disadvantaged Business Utilization to possible 
                retaliation from the agency or prime contractor 
                identified by the small business concern, unless the 
                small business concern or employee of the Office of 
                Small and Disadvantaged Business Utilization consents 
                in writing to the release of such information.
            ``(4) Interagency coordination.--Each Federal agency, 
        through its Office of Small and Disadvantaged Business 
        Utilization, shall assist the SDB Ombudsman to ensure 
        compliance with--
                    ``(A) the Federal procurement goals established 
                pursuant to section 15(g);
                    ``(B) the procurement policy outlined in section 
                8(d), which states that small business concerns should 
                be given the maximum practicable opportunity to 
                participate in Federal contracts;
                    ``(C) Federal prime contractors small business 
                subcontracting plans negotiated under section 
                8(d)(4)(B);
                    ``(D) the responsibilities outlined under section 
                15(k); and
                    ``(E) any other provision of this Act.
            ``(5) Goal attainment plan.--If a major Federal agency 
        fails to meet any small business procurement goal under this 
        Act in any fiscal year, such agency shall submit a goal 
        attainment plan to the SDB Ombudsman not later than 90 days 
        after the end of the fiscal year in which the goal was not met, 
        containing--
                    ``(A) a description of the circumstances that 
                contributed to the failure of the agency to reach its 
                small business procurement goals; and
                    ``(B) a detailed plan for meeting the small 
                business procurement goals in the fiscal year 
                immediately following the fiscal year in which the goal 
                was not met.
            ``(6) Effect on other offices.--Nothing in this section is 
        intended to replace or diminish the activities of the Office of 
        Small and Disadvantaged Business Utilization or any similar 
        office in any Federal agency.
            ``(7) Administrative resources.--To enable the SDB 
        Ombudsman to carry out the duties required by this subsection, 
        the Administrator shall provide the SDB Ombudsman with 
        sufficient--
                    ``(A) personnel;
                    ``(B) office space; and
                    ``(C) dedicated financial resources, which are 
                specifically identified in the annual budget request of 
                the Administration.''.

SEC. 3. OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION.

    (a) Director.--Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)) is amended--
            (1) in the first sentence, by inserting ``(except for the 
        Administration)'' after ``Federal agency'';
            (2) by striking paragraph (2), and inserting the following:
            ``(2) be well qualified, with experience assisting small 
        business concerns with Federal procurement, and receive basic 
        pay at a rate not to exceed the rate of pay for grade 15 of the 
        General Schedule, under section 5332 of title 5, United States 
        Code;'';
            (3) by striking paragraph (3) and inserting the following:
            ``(3) be appointed by the head of such agency, be 
        responsible to, and report only to, the head or deputy head of 
        such agency for policy matters, personnel matters, budgetary 
        matters, and all other matters;'';
            (4) in paragraph (9), by striking ``, and'' and inserting a 
        semicolon;
            (5) in paragraph (10)--
                    (A) by striking ``or section 8(a) of this Act or 
                section 2323 of title 10, United States Code. Such 
                recommendations'' and inserting ``section 8(a), or 
                section 2323 of title 10, United States Code, which 
                recommendations''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (6) by striking the undesignated matter after paragraph 
        (10) and inserting the following:
            ``(11) not concurrently serve as the chief procurement 
        officer for such agency; and
            ``(12) if the officer is employed by a major Federal agency 
        (as defined in section 30)--
                    ``(A) have no other job duties beyond those 
                described under this subsection;
                    ``(B) receive basic pay at a rate equal to the rate 
                of pay for grade 15 of the General Schedule, under 
                section 5332 of title 5, United States Code; and
                    ``(C) attend the meetings of the Office of Small 
                and Disadvantaged Business Utilization Council.''.
    (b) Office of Small and Disadvantaged Business Utilization 
Council.--
            (1) Establishment.--There is established an interagency 
        council to be known as the ``Office of Small and Disadvantaged 
        Business Utilization Council'' (in this subsection referred to 
        as the ``Council'').
            (2) Membership.--The Council shall be composed of--
                    (A) the Director of Small and Disadvantaged 
                Business Utilization from each Federal agency;
                    (B) the Small and Disadvantaged Business Ombudsman 
                for Procurement, as an ex officio member; and
                    (C) other individuals, as ex officio members, as 
                the Council considers necessary.
            (3) Leadership.--
                    (A) Chairperson.--The members of the Council shall 
                elect a chairperson, who shall serve for a 1-year, 
                renewable term.
                    (B) Other positions.--The members of the Council 
                may elect other leadership positions, as necessary, 
                from among its members.
                    (C) Voting.--Each member of the Council, except for 
                ex officio members, shall have voting rights on the 
                Council.
            (4) Meetings.--
                    (A) Frequency.--The Council shall meet not less 
                frequently than once every 2 months.
                    (B) Issues.--At the meetings under subparagraph 
                (A), the Council shall discuss issues faced by each 
                Office of Small and Disadvantaged Business Utilization, 
                including--
                            (i) personnel matters;
                            (ii) barriers to small business 
                        participation in Federal procurement;
                            (iii) agency compliance with section 15(k) 
                        of the Small Business Act (15 U.S.C. 644(k)), 
                        as amended by this Act; and
                            (iv) any other matter that the Council 
                        considers necessary to further the mission of 
                        each Office of Small and Disadvantaged Business 
                        Utilization.
            (5) Funding limitation.--The Small Business Administration 
        shall not provide the Council with financial assistance to 
        carry out the provisions of this section.

SEC. 4. GOVERNMENTWIDE SMALL BUSINESS GOAL.

    Section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)) is 
amended in the second sentence, by striking ``23 percent of the total 
value of all prime contract awards for each fiscal year.'' and 
inserting ``26 percent of the total value of all prime contract awards 
for fiscal year 2004, not less than 28 percent of the total value of 
all prime contract awards for fiscal year 2005, and not less than 30 
percent of the total value of all prime contract awards for fiscal year 
2006 and each fiscal year thereafter.''.

Summary: Small and Disadvantaged Business Ombudsman Act - Amends the Small Business Act to require the Administrator of the Small Business Administration to designate a Small and Disadvantaged Business Ombudsman for Procurement, who shall: (1) work with each Federal agency with procurement authority to ensure that small businesses are treated fairly in the procurement process. (2) establish a procedure for receiving comments from small businesses and personnel of the Office of Small and Disadvantaged Business Utilization (Office) of each Federal agency regarding the activities of agencies and prime contractors on Federal procurement contracts for small businesses. And (3) establish a procedure for addressing concerns received with respect to small businesses and Federal procurement contracting. Requires an annual report from the Ombudsman to the congressional small business committees evaluating such activities. Requires each Federal agency to assist the Ombudsman to ensure compliance with Federal procurement goals for small businesses, certain procurement policies, and Federal prime contractor small business subcontracting plans. Requires a Federal agency to submit a goal attainment plan upon failure to meet small business procurement goals. Requires each Office director to: (1) have experience assisting small businesses with Federal procurement. (2) not currently serve as the chief procurement officer of such agency, (3) have no other duties. And (4) attend meetings of the Office of Small and Disadvantaged Business Utilization Council. Establishes such Council. Increases, from the current 23 percent to up to 30 percent for FY 2006 and thereafter, the Federal small business procurement goal.