To amend the Small Business Act to establish a Government-wide procurement goal for small business concerns owned and controlled by veterans, to establish a presumption that service-disabled veterans and other handicapped individuals are eligible for benefits under the Small Business Development Program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Service-Disabled Veterans' Small 
Business Federal Procurement Preference Act of 2002''.

SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) Provide veterans, who sacrificed a portion of their 
        potential life earnings in order to serve the United States, a 
        more effective opportunity to compete in the marketplace by 
        establishing a Government-wide procurement goal for small 
        business concerns owned and controlled by veterans.
            (2) Establish a presumption that service-disabled veterans 
        and other handicapped individuals are socially disadvantaged 
        for purposes of the Disadvantaged Business Program administered 
        by the Small Business Administration under section 8(a) of the 
        Small Business Act.
            (3) Simplify and coordinate the Government-wide and agency 
        procurement goals for small business concerns.

SEC. 3. PRESUMPTION THAT HANDICAPPED INDIVIDUALS ARE SOCIALLY 
              DISADVANTAGED FOR PURPOSES OF THE BUSINESS DEVELOPMENT 
              PROGRAM.

    (a) In General.--Section 8(a)(5) of the Small Business Act (15 
U.S.C. 637(a)(5)) is amended by adding at the end the following: ``For 
purposes of this Act, handicapped individuals shall be treated as 
socially disadvantaged individuals unless the Administrator determines 
on the basis of credible evidence that such individual is not socially 
disadvantaged.''.
    (b) Conforming Amendment.--Section 2(f)(1)(C) of the Small Business 
Act (15 U.S.C. 631(f)(1)(C)) is amended by striking ``and other 
minorities'' and inserting ``other minorities, and handicapped 
individuals''.

SEC. 4. INCLUSION OF VETERANS AND HANDICAPPED INDIVIDUALS IN 
              GOVERNMENT-WIDE PROCUREMENT GOALS FOR SMALL BUSINESS 
              CONCERNS, REQUIREMENT THAT AGENCY GOALS NOT BE LESS THAN 
              GOVERNMENT-WIDE GOALS, ETC.

    Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) is 
amended to read as follows:
    ``(g) Government-Wide and Agency Small Business Procurement 
Goals.--
            ``(1) Establishment by president of government-wide 
        goals.--The President shall annually establish Government-wide 
        goals for procurement contracts awarded to small business 
        concerns and each of the specified subcategories of small 
        business concerns.
            ``(2) Small business concerns.--The Government-wide goal 
        for participation by small business concerns shall be 
        established at not less than 28 percent of the total value of 
        all prime contract and subcontract awards for each fiscal year.
            ``(3) Small business concerns owned and controlled by 
        veterans.--
                    ``(A) In general.--The Government-wide goal for 
                participation by small business concerns owned and 
                controlled by veterans shall be established at not less 
                than 3 percent of the total value of all prime contract 
                and subcontract awards for each fiscal year.
                    ``(B) Service-disabled veterans.--Prime contract 
                and subcontract awards to small business concerns owned 
                and controlled by service-disabled veterans may be 
                counted toward the attainment of the goal established 
                under subparagraph (A) only if such concerns are not 
                certified by the Administration as eligible to receive 
                benefits under section 8(a).
            ``(4) Qualified hubzone small business concerns.--The 
        Government-wide goal for participation by qualified HUBZone 
        small business concerns shall be established at not less than 
        2.5 percent of the total value of all prime contract awards for 
        fiscal year 2002, and not less than 3 percent of the total 
        value of all prime contract awards for fiscal year 2003 and 
        each fiscal year thereafter.
            ``(5) Small business concerns owned and controlled by 
        socially and economically disadvantaged individuals.--
                    ``(A) In general.--The Government-wide goal for 
                participation by small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals shall be established at not less than 10 
                percent of the total value of all prime contract and 
                subcontract awards for each fiscal year.
                    ``(B) Service-disabled veterans.--The Government-
                wide goal for participation by small business concerns 
                owned and controlled by service-disabled veterans which 
                are certified by the Administration as eligible to 
                receive benefits under section 8(a) shall be 
established at not less than 3 percent of the total value of all prime 
contract and subcontract awards for each fiscal year.
                    ``(C) Handicapped individuals.--The Government-wide 
                goal for participation by small business concerns owned 
                and controlled by handicapped individuals which are 
                certified by the Administration as eligible to receive 
                benefits under section 8(a) shall be established at not 
                less than 2 percent of the total value of all prime 
                contract and subcontract awards for each fiscal year.
            ``(6) Small business concerns owned and controlled by 
        women.--The Government-wide 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.
            ``(7) Agency goals.--
                    ``(A) In general.--Each Federal agency shall have 
                annual goals that present, for that agency, the maximum 
                practicable opportunity for small business concerns and 
                each of the specified subcategories of small business 
                concerns to perform prime contracts let by such agency 
                and subcontracts under such prime contracts.
                    ``(B) Not less than government-wide goals.--No 
                Federal agency may have an agency goal under 
                subparagraph (A) which is less than the corresponding 
                Government-wide goal established by the President under 
                paragraph (1).
                    ``(C) Procedure for establishment.--Each year, the 
                Administration and the head of each Federal agency 
                shall jointly establish the goals described in 
                subparagraph (A) for such agency. Whenever the 
                Administration and the head of any Federal agency fail 
                to agree on established goals, the disagreement shall 
                be submitted to the Administrator of the Office of 
                Federal Procurement Policy for final determination.
                    ``(D) Expansion of participation.--For the purpose 
                of establishing goals under this paragraph, the head of 
                each Federal agency shall make consistent efforts to 
                annually expand participation by small business 
                concerns from each industry category in procurement 
                contracts of the agency, including participation by 
                small business concerns and each of the specified 
                subcategories of small business concerns. The head of 
                each Federal agency, in attempting to attain such 
                participation, shall consider--
                            ``(i) contracts awarded as the result of 
                        unrestricted competition; and
                            ``(ii) contracts awarded after competition 
                        restricted to eligible small business concerns 
                        under this section and under the program 
                        established under section 8(a).''.

SEC. 5. DEFINITIONS.

    (a) Definitions Relating to Handicapped Individuals.--
            (1) In general.--Section 3(f) of the Small Business Act (15 
        U.S.C. 632(f)) is amended to read as follows:
    ``(f) Definitions Relating to Small Business Concerns Owned and 
Controlled by Handicapped Individuals.--For purposes of this Act:
            ``(1) Small business concern owned and controlled by 
        handicapped individuals.--The term `small business concern 
        owned and controlled by handicapped individuals' means any 
        small business concern--
                    ``(A) not less than 51 percent of which is owned by 
                one or more handicapped individuals or, in the case of 
                any publicly owned business, not less than 51 percent 
                of the stock of which is owned by one or more 
                handicapped individuals;
                    ``(B) the management and daily business operations 
                of which are controlled by one or more handicapped 
                individuals or, in the case of a handicapped individual 
                with permanent and severe disability, the spouse or 
                permanent caregiver of such an individual; and
                    ``(C) which is not a small business concern owned 
                and controlled by service-disabled veterans.
            ``(2) Handicapped individual.--The term `handicapped 
        individual' means an individual--
                    ``(A) who has a physical, mental, or emotional 
                impairment, defect, ailment, disease, or disability of 
                a permanent nature which in any way limits the 
                selection of any type of employment for which the 
                person would otherwise be qualified or qualifiable; or
                    ``(B) who is a service-disabled veteran.''.
            (2) Conforming amendment.--Section 15(c)(1) of the Small 
        Business Act (15 U.S.C. 644(c)(1)) is amended by striking 
        subparagraph (C).
    (b) Specified Subcategories of Small Business Concerns.--Section 3 
of the Small Business Act (15 U.S.C. 632) is amended by adding at the 
end the following new subsection:
    ``(r) Specified Subcategories of Small Business Concerns.--For 
purposes of this Act, the term `specified subcategories of small 
business concerns' means the following subcategories of small business 
concerns:
            ``(1) Small business concerns owned and controlled by 
        veterans (including small business concerns owned and 
        controlled by service-disabled veterans only if such concerns 
        are not certified by the Administration as eligible to receive 
        benefits under section 8(a)).
            ``(2) Qualified HUBZone small business concerns.
            ``(3) Small business concerns owned and controlled by 
        socially and economically disadvantaged individuals.
            ``(4) Small business concerns owned and controlled by 
        service-disabled veterans which are certified by the 
        Administration as eligible to receive benefits under section 
        8(a).
            ``(5) Small business concerns owned and controlled by 
        handicapped individuals which are certified by the 
        Administration as eligible to receive benefits under section 
        8(a).
            ``(6) Small business concerns owned and controlled by 
        women.''.
    (c) Small Business Concern Owned and Controlled by Socially and 
Economically Disadvantaged Individuals.--Section 3 of the Small 
Business Act (15 U.S.C. 632) is further amended by adding at the end 
the following new subsection:
    ``(s) Small Business Concern Owned and Controlled by Socially and 
Economically Disadvantaged Individuals.--For purposes of this Act:
            ``(1) In general.--The term `small business concern owned 
        and controlled by socially and economically disadvantaged 
        individuals' means a small business concern--
                    ``(A) which is at least 51 percent owned by one or 
                more socially and economically disadvantaged 
                individuals; or, in the case of any publicly owned 
                business, at least 51 percent of the stock of which is 
                owned by one or more socially and economically 
                disadvantaged individuals; and
                    ``(B) whose management and daily business 
                operations are controlled by one or more of such 
                individuals.''.
            ``(2) Application of definition by persons other than the 
        administration.--Any individual or entity (other than the 
        Administration) shall presume for purposes of carrying out any 
        program that socially and economically disadvantaged 
        individuals include Black Americans, Hispanic Americans, Native 
        Americans, Asian Pacific Americans, other minorities, 
        handicapped individuals, and any other individual found to be 
        disadvantaged by the Administration pursuant to section 8(a) of 
        the Small Business Act.''.

SEC. 6. UNIFORM APPLICATION OF DEFINITION OF SPECIFIED SUBCATEGORIES OF 
              SMALL BUSINESS CONCERNS.

    (a) In General.--
            (1) Section 8(d)(1) of the Small Business Act (15 U.S.C. 
        637(d)(1)) is amended--
                    (A) in the first sentence, by striking ``, small 
                business concerns owned and controlled by veterans'' 
                and all that follows through ``women,'' and inserting 
                ``and each of the specified subcategories of small 
                business concerns''; and
                    (B) in the second sentence, by striking ``, small 
                business concerns owned and controlled by veterans'' 
                and all that follows through ``women'' and inserting 
                ``and each of the specified subcategories of small 
                business concerns''.
            (2) Section 8(d)(4)(D) of the Small Business Act (15 U.S.C. 
        637(d)(4)(D)) is amended by striking ``, qualified HUBZone'' 
        and all that follows through ``women'' and inserting ``and each 
        of the specified subcategories of small business concerns''.
            (3) Section 8(d)(4)(E) of the Small Business Act (15 U.S.C. 
        637(d)(4)(E)) is amended by striking ``, small business 
        concerns owned and controlled by veterans'' and all that 
        follows through ``women,'' and inserting ``and each of the 
        specified subcategories of small business concerns''.
            (4) Paragraphs (6)(A), (6)(C), (6)(F), and (10)(B) of 
        section 8(d) of the Small Business Act (15 U.S.C. 637(d)) are 
        each amended by striking ``, small business concerns owned and 
        controlled by veterans'' and all that follows through ``women'' 
        and inserting ``and each of the specified subcategories of 
small business concerns''.
            (5) Section 15(h)(1) of the Small Business Act (15 U.S.C. 
        644(h)(1)) is amended by striking ``, small business concerns 
        owned and controlled by veterans'' and all that follows through 
        ``women'' and inserting ``and each of the specified 
        subcategories of small business concerns''.
            (6) Subparagraphs (A), (D), and (E) of section 15(h)(2) of 
        the Small Business Act (15 U.S.C. 644(h)(2)) are each amended 
        by striking ``, small business concerns owned and controlled by 
        service-disabled veterans'' and all that follows through 
        ``women'' and inserting ``and each of the specified 
        subcategories of small business concerns''.
            (7) Section 16(d)(1) of the Small Business Act (15 U.S.C. 
        645(d)(1)) is amended by striking ```small business concern''' 
        and all that follows through ``women','' and inserting ``small 
        business concern or as any of the specified subcategories of 
        small business concerns''.
            (8) Section 16(e) of the Small Business Act (15 U.S.C. 
        645(e)) is amended by striking ```small business concern''' and 
        all that follows through ``women''' and inserting ``small 
        business concern or as any of the specified subcategories of 
        small business concerns''.
    (b) Application to Contract Clauses.--
            (1) In general.--Section 8(d)(3) of the Small Business Act 
        (15 U.S.C. 637(d)(3)) is amended--
                    (A) in the first and second sentences of 
                subparagraph (A), by striking ``, small business 
                concerns owned and controlled by veterans'' and all 
                that follows through ``women'' and inserting ``and each 
                of the specified subcategories of small business 
                concerns'';
                    (B) by striking subparagraphs (C), (D), (E), (F), 
                and (G); and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraphs:
                    ``(C) As used in this contract, the terms `small 
                business concern' and `specified subcategories of small 
                business concerns' have the respective meanings given 
                such terms pursuant to section 3 of the Small Business 
                Act and relevant regulations promulgated thereto.
                    ``(D) The contractor shall presume that socially 
                and economically disadvantaged individuals include 
                Black Americans, Hispanic Americans, Native Americans, 
                Asian Pacific Americans, other minorities, handicapped 
                individuals, and any other individual found to be 
                disadvantaged by the Administration pursuant to section 
                8(a) of the Small Business Act.
                    ``(E) Contractors acting in good faith may rely on 
                written representations by their subcontractors 
                regarding their status as a small business concern or 
                as any of the specified subcategories of small business 
                concerns.''.
            (2) Treatment of references to definitions.--Any reference 
        in a law, regulation, or other document of the United States to 
        the meaning or definition given to the term ``small business 
        concern owned and controlled by socially and economically 
        disadvantaged individuals'', ``small business concern owned and 
        controlled by women'', ``small business concern owned and 
        controlled by veterans'', or ``qualified HUBZone small business 
        concern'' in section 8(d)(3) of the Small Business Act (15 
        U.S.C. 637(d)(3)) (as in effect on the day before the date of 
        the enactment of this Act) shall be treated as a reference to 
        the meaning or definition given such term in section 3 of the 
        Small Business Act (as amended by this Act).

Summary: Service-Disabled Veterans' Small Business Federal Procurement Preference Act of 2002 - Amends the Small Business Act to treat handicapped individuals as socially disadvantaged individuals for purposes of programs available to such individuals under such Act, unless the Administrator of the Small Business Administration determines that such an individual is not socially disadvantaged. Increases the Government-wide goal of awarding Federal prime contracts and subcontracts to certain small businesses to 28 percent of all such contracts and subcontracts awarded in a fiscal year. Includes small businesses owned by veterans and handicapped individuals as eligible small businesses. Requires contracts and subcontracts so awarded to small businesses owned and controlled by: (1) veterans to comprise at least three percent of such total. (2) socially and economically disadvantaged individuals to comprise at least ten percent. And (3) women to comprise at least five percent. Requires that, of the ten percent required under (2), at least three percent be awarded to small businesses owned and controlled by service-disabled veterans and two percent be awarded to small businesses owned and controlled by handicapped individuals. Establishes the goal for participation by qualified HUBZone small businesses at no less than 2.5 percent of such total for FY 2002 and three percent for FY 2003 and thereafter. Requires each Federal agency to: (1) have annual goals that present the maximum practicable opportunity for eligible small businesses to perform such contracts and subcontracts, and (2) undertake efforts to annually expand small business participation.