59–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–137 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 1873) TO REAUTHORIZE THE PROGRAMS AND ACTIVITIES OF THE SMALL BUSINESS ADMINISTRATION RELATING TO PROCUREMENT, AND FOR OTHER PURPOSES 

MAY 8, 2007.—Referred to the House Calendar and ordered to be printed 

Mr. CARDOZA, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 383] 

The Committee on Rules, having had under consideration House 

Resolution 383, by a vote of 8 to 4, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of the bill (H.R. 1873) 

to reauthorize the programs and activities of the Small Business 

Administration relating to procurement, and for other purposes, 

under a structured rule. The rule provides one hour of general debate equally divided and controlled by the chairman and ranking 

minority member of the Committee on Small Business. The rule 

waives all points of order against consideration of the bill except 

clauses 9 and 10 of rule XXI. The rule provides that the amendment in the nature of a substitute recommended by the Committee 

on Oversight and Government Reform now printed in the bill shall 

be considered as an original bill for the purpose of amendment and 

shall be considered as read. All points of order against the committee amendment in the nature of a substitute are waived except 

clauses 9 and 10 of rule XXI. 

The rule makes in order only those amendments printed in this 

report. The amendments made in order may be offered only in the 

order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report equally divided and controlled by the proponent and an opponent, shall not be subject to 

amendment, and shall not be subject to a demand for a division of 

the question in the House or in the Committee of the Whole. All 

points of order against the amendments except for clauses 9 and 

10 of Rule XXI are waived. The rule provides one motion to recommit with or without instructions. The rule provides that, notwithVerDate Aug 31 2005 05:32 May 09, 2007 Jkt 059008 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR137.XXX HR137

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standing the operation of the previous question, the Chair may 

postpone further consideration of the bill to a time designated by 

the Speaker. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except for clauses 9 and 10 of rule XXI), includes the following: a 

waiver of Rule XIII, clause 4(a), requiring a three-day layover of 

the committee report; a waiver of rule XIII, clause 3(c)(4), requiring 

the inclusion in the report of certain oversight, budget and performance goal information; and a waiver of clause 3(d)(2) of rule 

XIII, requiring the inclusion of an estimate by the committee of the 

costs that would be incurred in carrying out the bill or joint resolution in the fiscal year in which it is reported and in each of the 

five fiscal years following that fiscal year. The Committee is not 

aware of any points of order against the committee substitute 

therefore the waiver of all points of order against the committee 

amendment in the nature of a substitute is prophylactic in nature. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 176 

Date: May 8, 2007. 

Measure: H.R. 1873. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To grant an open rule. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Matsui—Nay; Cardoza— Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions— Yea; Slaughter—Nay. 

Rules Committee record vote No. 177 

Date: May 8, 2007. 

Measure: H.R. 1873. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Reps. Cuellar (TX) and Chabot (OH), 

#15, to authorize the Administrator of the Office of Federal Procurement Policy within the Office of Management and Budget to 

decide bundling matters. Where the SBA Administrator and the 

contracting agency fail to agree on mitigation strategies for a particular bundled contract, the Administrator of OFPP will have ten 

days to issue his decision. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 

Rules Committee record vote No. 178 

Date: May 8, 2007. 


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Measure: H.R. 1873. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Chabot (OH), #5, to strike section 211 relating to limiting the value of sole source contracts 

awarded to certain entities. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 

Rules Committee record vote No. 179 

Date: May 8, 2007. 

Measure: H.R. 1873. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Price, Tom (GA), #6, to require 

that spending in this legislation be offset by reductions in spending 

elsewhere. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 

Rules Committee record vote No. 180 

Date: May 8, 2007. 

Measure: H.R. 1873. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Sessions (TX), #4, to strike section 303 relating to recertification of size standards. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Matsui—Nay; Cardoza—

Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 

Rules Committee record vote No. 181 

Date: May 8, 2007. 

Measure: H.R. 1873. 

Motion by: Mr. McGovern. 

Summary of motion: To report the rule. 

Results: Adopted 8–4. 

Vote by Members: McGovern—Yea; Matsui—Yea; Cardoza—Yea; 

Welch—Yea; Castor—Yea; Arcuri—Yea; Sutton—Yea; Dreier—Nay; 

Diaz-Balart—Nay; Hastings (WA)—Nay; Sessions—Nay; Slaughter—Yea. 

SUMMARY OF AMENDMENTS MADE IN ORDER

1. Reyes (TX): The amendment would aid small businesses that 

have been included in the Small Business Subcontracting Plans of 

prime contractors that obtain federal contracts. (10 minutes) 


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2. Shuler (NC)/Chabot (OH): The amendment extends small business contracting goals to overseas contracts. (10 minutes) 

3. Bean (IL)/Chabot (OH): The amendment would raise the government-wide small business procurement goal from 25 percent to 

30 percent. (10 minutes) 

4. Sestak (PA)/Chabot (OH): The amendment closes a loophole in 

the current bill that allows agencies to avoid doing small business 

impact studies by designating contracts as ‘‘transformed’’. It also 

lowers the new dollar threshold established to $1.5 million to ensure a greater portion of contracts are reviewed for their impact on 

small business as well as taxpayer savings. (10 minutes) 

5. Welch (VT)/Inslee (WA)/Blumenauer (OR): The amendment 

sets a 5% procurement goal for the Federal government to contract 

with ‘‘green’’ small businesses. (10 minutes) 

6. Wynn (MD): The amendment commissions the Small Business 

Administration to complete a study on the feasibility and desirability of providing financial incentives to federal prime contractors 

who meet the goals set forth in their subcontracting plan of utilizing small business concerns owned by economically or socially 

disadvantaged individuals. (10 minutes) 

7. Jackson-Lee (TX): The amendment provides that, whenever 

the SBA and the contracting procurement agency fail to agree and 

the Administrator decides to take action to further the interests of 

a small business concern, the SBA is required to make available on 

their website any action taken and result achieved by the Administrator. (10 minutes) 

8. Jackson-Lee (TX): The amendment requires that, when the 

SBA and the contracting procurement agency fail to agree and the 

Administrator submits the matter to the head of the agency for a 

determination, a copy of the written response to the Administrator 

be sent to the Committee of the House and Senate that has jurisdiction over the agency concerned, in addition to the Committees 

on Small Business and Oversight & Government Reform. (10 minutes) 

TEXT OF AMENDMENTS MADE IN ORDER

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE REYES OF

TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike section 209 and insert the following: 

SEC. 209. REVIEW OF SUBCONTRACTING PLANS. 

(a) IN GENERAL.—Not later than 180 days after the date of the 

enactment of this Act, the General Services Administration shall, 

after an opportunity for notice and comment, begin to make modifications, if necessary, to the Electronic Subcontracting Reporting 

System (ESRS) for the purpose of tracking companies’ compliance 

with small business subcontracting plans included in successful 

contract bids. ESRS shall be further developed, if necessary, in 

such a way that it allows agencies to track whether or not the 

prime contractor actually subcontracted work out to the subcontracting firms described in the Small Business Subcontracting 

Plan. Further, ESRS shall be modified, if necessary, so that it facilitates review of a company’s record of compliance with small 

business subcontracting plans. 


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(b) PERIODIC REPORTS.—Prime contractors shall be required to 

submit Small Business Subcontracting Plans to ESRS and submit 

subsequent periodic reports to ESRS describing the extent to which 

the prime contractor complied with small business subcontracting 

plans submitted as part of the company’s successful contract proposal. Each such report shall include a specific accounting of compliance with subcontracting goals described in the prime contractor’s Small Business Subcontracting Plans related to Small Disadvantaged Businesses Concerns, Women-Owned Small Business 

Concerns, Historically Black Colleges and Universities and Minority Institutions, Service-Disabled Veteran-Owned Small Business 

Concerns, and HUBZone Small Business Concerns. Each such accounting of compliance shall also be included in ESRS. 

(c) INCLUSION IN ESRS.—The ‘‘percentage of the total dollar 

amount of the contract award’’ that is paid to small business, as 

referred to in paragraph (12) of section 8(d) of the Small Business 

Act (as added by section 206 of this Act) shall also be included in 

ESRS. 

(d) AVAILABILITY OF ESRS.—ESRS and the information therein 

shall be made available to agency officials and Source Selection 

Evaluation Boards (as referred to in Federal Acquisition Regulations 3.104–1) that are charged with evaluating contract proposals, 

and, when evaluating contract proposals, agencies shall take into 

consideration the compliance with small business subcontracting 

plans of companies competing for Federal contracts, and within one 

year after the date of the enactment of this Act such consideration 

shall be reflected in the Federal Acquisition Regulations. 

(e) FURTHER MODIFICATIONS REQUIRED.—ESRS shall be modified 

in such a way that it can generate comparable reports on individual companies’ compliance records to be used in the contract 

proposal evaluation processes of agencies. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SCHULER

OF NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

After section 201 insert the following (and redesignate succeeding sections accordingly): 

SEC. 202. INCLUDE OVERSEAS CONTRACTS IN SMALL BUSINESS GOAL. 

Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) is 

amended by adding at the end the following: 

‘‘(3) The procurement goals required by this subsection apply to 

all procurement contracts, without regard to whether the contract 

is for work within or outside the United States.’’. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BEAN OF

ILLINOIS, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Section 201(a), strike ‘‘25 percent’’ and insert ‘‘30 percent’’. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SESTAK OF

PENNSYLVANIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike section 101 and insert the following: 


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SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS 

AND RELATED TERMS. 

Section 3 of the Small Business Act (15 U.S.C. 632) is amended 

by amending subsection (o) to read as follows: 

‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS AND

RELATED TERMS.—For purposes of this Act: 

‘‘(1) BUNDLED CONTRACT.—

‘‘(A) IN GENERAL.—The term ‘bundled contract’ means a 

contract or order that is entered into to meet procurement 

requirements that are consolidated in a bundling of contract requirements, without regard to its designation by 

the procuring agency or whether a study of the effects of 

the solicitation on civilian or military personnel has been 

made. 

‘‘(B) EXCEPTIONS.—The term does not include—

‘‘(i) a contract or order with an aggregate dollar 

value below the dollar threshold specified in paragraph (4); or 

‘‘(ii) a contract or order that is entered into to meet 

procurement requirements, all of which are exempted 

requirements under paragraph (5). 

‘‘(2) BUNDLING OF CONTRACT REQUIREMENTS.—

‘‘(A) IN GENERAL.—The term ‘bundling of contract requirements’ means the use of any bundling methodology to 

satisfy 2 or more procurement requirements for goods or 

services previously supplied or performed under separate 

smaller contracts or orders, or to satisfy 2 or more procurement requirements for construction services of a type historically performed under separate smaller contracts or orders, that is likely to be unsuitable for award to a small 

business concern due to—

‘‘(i) the diversity, size, or specialized nature of the 

elements of the performance specified; 

‘‘(ii) the aggregate dollar value of the anticipated 

award; ‘‘(iii) the geographical dispersion of the contract or 

order performance sites; or 

‘‘(iv) any combination of the factors described in 

clauses (i), (ii), and (iii). 

‘‘(B) INCLUSION OF NEW FEATURES OR FUNCTIONS.—A 

combination of contract requirements that would meet the 

definition of a bundling of contract requirements but for 

the addition of a procurement requirement with at least 

one new good or service shall be considered to be a bundling of contract requirements unless the new features or 

functions substantially transform the goods or services and 

for which measurably substantial benefits to the government in terms of quality or price are identified. 

‘‘(C) EXCEPTIONS.—The term does not include—

‘‘(i) the use of a bundling methodology for an anticipated award with an aggregate dollar value below the 

dollar threshold specified in paragraph (5); or 

‘‘(ii) the use of a bundling methodology to meet procurement requirements, all of which are exempted requirements under paragraph (6). 


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‘‘(3) BUNDLING METHODOLOGY.—The term ‘bundling methodology’ means—

‘‘(A) a solicitation to obtain offers for a single contract or 

order, or a multiple award contract or order; or 

‘‘(B) a solicitation of offers for the issuance of a task or 

a delivery order under an existing single or multiple award 

contract or order. 

‘‘(4) SEPARATE SMALLER CONTRACT.—The term ‘separate 

smaller contract’, with respect to bundling of contract requirements, means a contract or order that has been performed by 

1 or more small business concerns or was suitable for award 

to 1 or more small business concerns. 

‘‘(5) DOLLAR THRESHOLD.—The term ‘dollar threshold’ means 

$65,000,000, if solely for construction services. 

‘‘(6) EXEMPTED REQUIREMENTS.—The term ‘exempted requirement’ means a procurement requirement solely for items that 

are not commercial items (as the term ‘commercial item’ is defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)). 

‘‘(7) PROCUREMENT REQUIREMENT.—The term ‘procurement 

requirement’ means a determination by an agency that a specified good or service is needed to satisfy the mission of the 

agency.’’. 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WELCH OF

VERMONT, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title II, insert the following: 

SEC. 212. SMALL BUSINESS GOALS FOR GREEN SMALL BUSINESS CONCERNS. 

(a) IN GENERAL.—Section 15(g) of the Small Business Act (15 

U.S.C. 644(g)) is amended—

(1) in paragraph (1)—

(A) by striking ‘‘and small business concerns owned and 

controlled by women’’ both places such term appears and 

inserting ‘‘small business concerns owned and controlled 

by women, and green small business concerns’’; and 

(B) by inserting before ‘‘Notwithstanding the Government-wide goal’’ the following: ‘‘The Government-wide goal 

for participation by green small business concerns shall be 

established at not less than 5 percent of the total value of 

all prime contract and subcontract awards for each fiscal 

year.’’; and 

(2) in paragraph (2)—

(A) by striking ‘‘and by small business concerns owned 

and controlled by women’’ both places such term appears 

and inserting ‘‘by small business concerns owned and controlled by women, and by green small business concerns’’; 

and 

(B) by striking ‘‘and small business concerns owned and 

controlled by women’’ and inserting ‘‘small business concerns owned and controlled by women, and green small 

business concerns’’. 

(b) CONFORMING AMENDMENTS.—


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(1) DEFINITION.—Section 3 of that Act (15 U.S.C. 632) is 

amended by adding at the end the following: ‘‘(s) DEFINITIONS RELATING TO GREEN SMALL BUSINESS CON- CERNS.—In this Act, the term ‘green small business concern’ means 

a small business concern that carries out its activities in an environmentally sound manner. The Administrator shall, in consultation with the Environmental Protection Agency, the General Services Administration, and other appropriate agencies, specify detailed definitions or standards by which a small business concern 

may be determined to be a green small business concern for the 

purposes of this Act.’’. (2) POLICY.—Section 8(d) of that Act (15 U.S.C. 637(d)) is 

amended— (A) in paragraph (1) (in both places such term appears), 

paragraph (3)(A) (in both places such term appears), paragraph (4)(D), paragraph (6)(A), paragraph (6)(C), paragraph (6)(F), and paragraph (10)(B) by striking ‘‘and small 

business concerns owned and controlled by women’’ and inserting ‘‘small business concerns owned and controlled by 

women, and green small business concerns’’; 

(B) in paragraph (3)(F) by striking ‘‘or a small business 

concern owned and controlled by women’’ and inserting ‘‘a 

small business concern owned and controlled by women, or 

a green small business concern’’; and 

(C) in paragraph (4)(E) by striking ‘‘and for small business concerns owned and controlled by women’’ and inserting ‘‘for small business concerns owned and controlled by 

women, and for green small business concerns’’. 

(3) REPORTS ON GOALS.—Section 15(h) of that Act (15 U.S.C. 

644(h)) is amended, in each of paragraphs (1), (2)(A), (2)(D), 

and (2)(E) by striking ‘‘and small business concerns owned and 

controlled by women’’ and inserting ‘‘small business concerns 

owned and controlled by women, and green small business concerns’’. 

(4) PENALTIES.—Section 16 of that Act (15 U.S.C. 645) is 

amended in each of subsections (d)(1) and (e) by striking ‘‘or 

a ‘small business concern owned and controlled by women’ ’’

and inserting ‘‘a ‘small business concern owned and controlled 

by women’, or a ‘green small business concern’ ’’. 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WYNN OF

MARYLAND, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title II, add the following: 

SEC. 2ll. STUDY ON PROVIDING FINANCIAL INCENTIVES TO CONTRACTORS THAT MEET MINORITY AND DISADVANTAGED 

BUSINESS ENTERPRISE GOALS. 

The Administrator of the Small Business Administration shall 

carry out a study on the feasibility and desirability of providing financial incentives to contractors operating under contracts from a 

federal agency that achieve the percentage goals set forth in said 

contracts’ subcontracting plans for the utilization of small business 

concerns owned and controlled by socially and economically disadvantaged individuals. The Administrator shall submit to Congress a report on the results of the study, together with any findVerDate Aug 31 2005 05:32 May 09, 2007 Jkt 059008 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR137.XXX HR137

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ings, conclusions, and recommendations that the Administrator 

considers appropriate. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JACKSONLEE OF TEXAS, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Section 103, strike ‘‘concern.’’ and insert ‘‘concern, and shall 

make available to the public on the website of the Administration 

the action taken and the result achieved.’’. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JACKSONLEE OF TEXAS, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Section 104, strike ‘‘Senate.’’ and insert ‘‘Senate, and any other 

committee of the House and Senate that has jurisdiction over the 

agency concerned.’’. 

Æ 


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