59–006 

110TH CONGRESS REPT. 110–111 " ! HOUSE OF REPRESENTATIVES 1st Session Part 2 

SMALL BUSINESS FAIRNESS IN CONTRACTING ACT 

MAY 3, 2007.—Ordered to be printed 

Mr. WAXMAN, from the Committee on Oversight and Government 

Reform, submitted the following 

R E P O R T 

[To accompany H.R. 1873] 

The Committee on Oversight and Government Reform, to whom 

was referred the bill (H.R. 1873) to reauthorize the programs and 

activities of the Small Business Administration relating to procurement, and for other purposes, having considered the same, report 

favorably thereon with an amendment and recommend that the bill 

as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 6 

Background and Need for Legislation .................................................................... 7 

Legislative History .................................................................................................. 7 

Section-by-Section .................................................................................................... 8 

Explanation of Amendments ................................................................................... 12 

Committee Consideration ........................................................................................ 12 

Rollcall Votes ............................................................................................................ 12 

Application of Law to the Legislative Branch ....................................................... 12 

Statement of Oversight Findings and Recommendations of the Committee ...... 13 

Statement of General Performance Goals and Objectives .................................... 13 

Constitutional Authority Statement ...................................................................... 13 

Federal Advisory Committee Act ............................................................................ 13 

Unfunded Mandates Statement .............................................................................. 13 

Earmark Identification ............................................................................................ 13 

Committee Estimate ................................................................................................ 13 

Changes in Existing Law Made by the Bill as Reported ...................................... 14 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Small Business Fairness in Contracting Act’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Regulations. 


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TITLE I—CONTRACT BUNDLING 

Sec. 101. Definitions of bundling of contract requirements and related terms. 

Sec. 102. Justification. 

Sec. 103. Appeals. 

Sec. 104. Review. 

TITLE II—INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND SUBCONTRACTS 

Sec. 201. Small business goal. 

Sec. 202. Annual goal negotiation. 

Sec. 203. Usage of small companies in goal achievement. 

Sec. 204. Annual plan for each agency explaining how agency will meet small business goals. 

Sec. 205. Making small businesses the first choice. 

Sec. 206. Uniform metric for subcontracting achievements. 

Sec. 207. Subcontracting database. 

Sec. 208. National database. 

Sec. 209. Review of subcontracting plans. 

Sec. 210. Agency obligation for fulfilling contracting goals. 

Sec. 211. Appropriate limits on value of sole source contracts. 

TITLE III—PROTECTION OF TAXPAYERS FROM FRAUD 

Sec. 301. Small business size protest notification. 

Sec. 302. Review of national registry. 

Sec. 303. Recertification of compliance with size standards and registration with Central Contractor Registry. 

TITLE IV—AUTHORIZATION OF APPROPRIATIONS 

Sec. 401. Authorization of appropriations. 

SEC. 2. REGULATIONS. 

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

Act— (1) the Administrator of the Small Business Administration shall promulgate 

regulations to implement this Act and the amendments made by this Act; and 

(2) the Federal Acquisition Regulation shall be revised to implement this Act 

and the amendments made by this Act. 

(b) NOTICE AND COMMENT.—The regulations required by subsection (a) shall be 

promulgated after opportunity for notice and comment as required by section 553(b) 

of title 5, United States Code. 

TITLE I—CONTRACT BUNDLING 

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, including any construction services, previously supplied or 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 


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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 previously performed. 

‘‘(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). 

‘‘(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—

‘‘(A) $65,000,000, if solely for construction services; and 

‘‘(B) $5,000,000, in all other cases. 

‘‘(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.’’. 

SEC. 102. JUSTIFICATION. 

Section 15(a) of the Small Business Act (15 U.S.C. 644(a)) is amended—

(1) by striking ‘‘(2) why delivery schedules’’ and inserting ‘‘(2) the names, addresses and size of the incumbent contract holders; (3) a description of the industries that might be interested in bidding on the contract requirements; (4) 

the number of small businesses listed in the industry categories that could be 

excluded from future bidding if the contract is combined or packaged; (5) why 

delivery schedules’’; 

(2) by striking ‘‘(3) why the proposed acquisition’’ and inserting ‘‘(6) why the 

proposed acquisition’’; 

(3) by striking ‘‘(4) why construction’’ and inserting ‘‘(7) why construction’’; 

(4) by striking ‘‘(5) why the agency’’ and inserting ‘‘(8) why the agency’’; 

(5) by striking ‘‘justified.’’ and inserting ‘‘justified. The statement shall also 

set forth the proposed procurement strategy required by subsection (e) and, if 

applicable, the specifications required by subsection (e)(3). The statement shall 

be made available to the public, including through dissemination in the Federal 

contracting opportunities database, concurrently with the issuance of the solicitation.’’; and 

(6) by inserting after ‘‘prime contracting opportunities.’’ the following: ‘‘If no 

notification of the procurement and accompanying statement is received, but the 

Administrator determines that there is cause to believe the contract combines 

requirements or a contract (single or multiple award) or task or delivery order 

for construction services or includes unjustified bundling, then the Administrator may request that such a statement of work goods or services be completed by the procurement activity and sent to the Procurement Center Representative and the solicitation process postponed for 10 days to allow the Administrator to review the statement and make recommendations as described 

in this section before the procurement is continued.’’. 

SEC. 103. APPEALS. 

Section 15(a) of the Small Business Act (15 U.S.C. 644(a)) is amended by inserting 

before ‘‘Whenever the Administration and the contracting procurement agency fail 

to agree,’’ the following: ‘‘If a small business concern would be adversely affected, 

directly or indirectly, by the procurement as proposed, and that small business concern or a trade association on behalf of that small business concern so requests, the 

Administrator may, in the Administrator’s discretion, take action to further the interests of that small business concern.’’. 


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SEC. 104. REVIEW. 

Section 15(a) of the Small Business Act (15 U.S.C. 644(a)) is amended by striking 

the sentence beginning ‘‘Whenever the Administration and the contracting procurement agency fail to agree,’’ and inserting the following: ‘‘Whenever the Administration and the contracting procurement agency fail to agree, the Administrator shall 

submit the matter to the head of the agency for a determination. The head of the 

agency shall provide a written response to the Administrator. A copy of such response shall also be provided to the Committees on Small Business of the House 

of Representatives and Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Committee on Homeland Security 

and Governmental Affairs of the Senate.’’. 

TITLE II—INCREASING THE NUMBER OF 

SMALL BUSINESS CONTRACTS AND SUBCONTRACTS 

SEC. 201. SMALL BUSINESS GOAL. 

(a) GOVERNMENT-WIDE GOAL.—Section 15(g)(1) of the Small Business Act (15 

U.S.C. 644(g)(1)) is amended by striking ‘‘23 percent’’ and inserting ‘‘25 percent’’. 

(b) GOALS FOR SMALL DISADVANTAGED BUSINESSES AND WOMEN-OWNED BUSINESSES.—Section 15(g)(1) of such Act is further amended by striking ‘‘5 percent’’

both places it appears and inserting ‘‘8 percent’’. 

SEC. 202. ANNUAL GOAL NEGOTIATION. 

Section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)) is amended by 

striking ‘‘The President shall annually establish Government-wide goals for procurement contracts’’ and inserting ‘‘The President shall before the close of each fiscal 

year establish new Government-wide procurement goals for the following fiscal year 

for procurement contracts’’. 

SEC. 203. USAGE OF SMALL COMPANIES IN GOAL ACHIEVEMENT. 

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

at the end the following: 

‘‘(4) For purposes of this subsection and subsection (h), a small business concern 

shall be counted toward one additional category goal only, even if that small business concern otherwise qualifies under more than one category goal. In this paragraph, the term ‘category goal’ means a goal described in paragraph (2).’’. 

SEC. 204. ANNUAL PLAN FOR EACH AGENCY EXPLAINING HOW AGENCY WILL MEET SMALL 

BUSINESS GOALS. 

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

at the end the following: 

‘‘(5) Before the beginning of each fiscal year, the head of each Federal agency shall 

submit to the Administrator of the Small Business Administration and to Congress 

a detailed plan explaining how the agency intends to meet the small business goals 

under this subsection that apply to that agency for that fiscal year.’’. 

SEC. 205. MAKING SMALL BUSINESSES THE FIRST CHOICE. 

Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is amended—

(1) in paragraph (1), by striking ‘‘$100,000’’ and inserting ‘‘the Simplified Acquisition Threshold’’; and 

(2) in paragraph (3), by striking ‘‘subsection (a) of section 8’’ and inserting 

‘‘section 8, 31, or 36’’. 

SEC. 206. UNIFORM METRIC FOR SUBCONTRACTING ACHIEVEMENTS. 

Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding 

at the end the following:. 

‘‘(12) In carrying out this subsection, the Administrator shall require each prime 

contractor to report small business subcontract usage at all tiers based on the percentage of the total dollar amount of the contract award.’’. 

SEC. 207. SUBCONTRACTING DATABASE. 

Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding 

at the end the following: 

‘‘(13) In carrying out this subsection, the Administrator shall develop and maintain a password-protected database that will enable the Administration to assist 

small businesses in marketing to large corporations that have not achieved their 

small business goals.’’. 


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SEC. 208. NATIONAL DATABASE. 

The Administrator of the Small Business Administration shall ensure that whenever a small business enters its information in the Central Contractor Registry, or 

any successor to that registry, the Administrator contacts that business within 30 

days regarding the likelihood of Federal contracting opportunities. The Administrator shall ensure that each small business that so registers is, for each industry 

code entered by that small business, provided with the total dollar value of government contract awards to small businesses for that industry. 

SEC. 209. REVIEW OF SUBCONTRACTING PLANS. 

Not later than 120 days after the date of the enactment of this section, the Administrator of the Small Business Administration shall, after an opportunity for notice and comment, prescribe regulations to govern the Administrator’s review of subcontracting plans, including standards for determining good faith effort in compliance with the subcontracting plans. 

SEC. 210. AGENCY OBLIGATION FOR FULFILLING CONTRACTING GOALS. 

Section 15(h) of the Small Business Act (15 U.S.C. 644(h)) is amended by adding 

at the end the following: ‘‘(4) At the conclusion of each fiscal year, the head of each Federal agency shall 

submit to Congress a report specifying the percentage of contracts awarded by that 

agency for that fiscal year that were awarded to small business concerns. If the percentage is less than 25 percent, the head of the agency shall, in the report, explain 

why the percentage is less than 25 percent and what will be done to ensure that 

the percentage for the following fiscal year will not be less than 25 percent.’’. 

SEC. 211. APPROPRIATE LIMITS ON VALUE OF SOLE SOURCE CONTRACTS. 

(a) APPROPRIATE LIMITS.—If a law is not enacted by December 31, 2007, revising 

the limits referred to in this subsection, the Administrator for Federal Procurement 

Policy, in consultation with the Administrator for Small Business, shall establish 

appropriate limits on the value of contracts awarded without the use of competitive 

procedures to participants in the program established by section 8(a) of the Small 

Business Act (15 USC 637(a)) that are not subject to the limits on the value of such 

contracts established by paragraph (1)(D) of section 8(a) of such Act. 

(b) CONSULTATION.—In establishing any limit described in subsection (a). the Administrator for Federal Procurement Policy shall consult with representatives of the 

affected program participants. The Administrator shall also take into account— (1) any special circumstances and needs of the affected program participants; 

and 

(2) the advantages of promoting competition in Federal contracting. 

TITLE III—PROTECTION OF TAXPAYERS FROM 

FRAUD 

SEC. 301. SMALL BUSINESS SIZE PROTEST NOTIFICATION. 

(a) IN GENERAL.—The Administrator of the Small Business Administration shall 

work with appropriate Federal agencies to ensure that whenever a business concern 

is awarded a contract on the basis that it qualifies as small and then is determined 

not to qualify as small, a notification of those facts (that an award was made on 

such a basis, and that such a determination was made) shall be placed adjacent to 

that concern’s listing in the Central Contractor Registry (or any successor to that 

registry). 

(b) COMPTROLLER GENERAL CERTIFICATION.—The Administrator shall, in making 

any report of small business goal accomplishments, qualify the accomplishments as 

‘‘estimated’’, until the Administrator obtains from the Comptroller General the 

Comptroller General’s certification that there are no data integrity issues with respect to the national repository of contract award information known as Federal 

Procurement Data System-Next Generation (FPDS–NG), or any successor to that repository. 

(c) AWARDS TO LARGE BUSINESSES.—For each Federal agency, the Inspector General of that agency shall, on an annual basis, submit to Congress a report on the 

number and dollar value of contract awards that were coded as awards to small 

business concerns but in fact were made to businesses that did not qualify as small 

business concerns. 

SEC. 302. REVIEW OF NATIONAL REGISTRY. 

The Administrator of the Small Business Administration shall ensure, on a biannual basis, that an independent audit is performed of the Central Contractor Registry, or any successor to that registry, and that the Dynamic Small Business 


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Search portion of the registry, or any successor to that portion of the registry, is 

purged of any businesses that are not in fact small businesses. If a business that 

has been so purged attempts, while not in fact a small business, to re-register, that 

business is subject to debarment as a Federal contractor and is further subject to 

penalties outlined in section 16 of the Small Business Act (15 U.S.C. 645). 

SEC. 303. RECERTIFICATION OF COMPLIANCE WITH SIZE STANDARDS AND REGISTRATION 

WITH CENTRAL CONTRACTOR REGISTRY. 

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

at the end the following: 

‘‘(5) RECERTIFICATION.—

‘‘(A) IN GENERAL.—If a business concern is awarded a contract because of a 

standard by which it is determined to be a small business concern, and the 

business concern is close to exceeding that standard at the time the award is 

made, then the business concern must, annually after the date of the award, 

recertify to the agency awarding the contract whether it meets that standard. 

‘‘(B) ‘CLOSE TO EXCEEDING’.—For purposes of subparagraph (A), a business 

concern is close to exceeding—

‘‘(i) a number-of-employees standard if the number of employees of the 

business concern is 95 percent or more of the maximum number of employees allowed under the standard; and 

‘‘(ii) a dollar-volume-of-business standard if the dollar volume of business 

is 80 percent or more of the maximum dollar volume allowed under the 

standard. 

‘‘(6) REGISTRY.—For a business concern to be awarded a contract because of a 

standard by which it is determined to be a small business concern, the business concern must, annually after the end of the fiscal year used by the business concern, 

update its listing in the Central Contractor Registry.’’. 

TITLE IV—AUTHORIZATION OF 

APPROPRIATIONS 

SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated such sums as may be necessary to carry 

out this Act and the amendments made by this Act. 

PURPOSE AND SUMMARY

H.R. 1873, the Small Business Fairness in Contracting Act of 

2007, was introduced on April 17, 2007, by Reps. Bruce L. Braley 

Steve Chabot, and Nydia M. Vela ́zquez. The bill amends the Small 

Business Act to address issues relating to small business participation in federal procurement. This report summarizes H.R. 1873, as 

ordered reported by the Committee on Oversight and Government 

Reform. 

H.R. 1873 contains provisions concerning contract bundling, government procurement goals for small business contracts, and the 

accuracy of contracting data maintained in federal databases. 

As reported by the Oversight Committee, the bill expands the 

definition of contract bundling to ensure that small businesses 

have access to work previously available for small business. The 

bill improves the current bundling dispute process by allowing 

small businesses to request that the Small Business Administration (SBA) appeal a contract award to the contracting agency on 

their behalf and by requiring agencies to provide written responses 

to SBA. The bill increases the government-wide small business contracting goal and raises the threshold for set-asides of small business contracts to the Simplified Acquisition Threshold. The bill 

would provide for the establishment of appropriate limitations on 

the award of contracts without competition to Alaska Native CorVerDate Aug 31 2005 01:38 May 05, 2007 Jkt 059006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\B111P2.XXX B111P2

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porations and other economically disadvantaged Indian tribes. The 

bill requires improvements to federal contracting databases. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 1873 improves small business access to federal procurement 

opportunities. Concerns have been raised that some agencies may 

be combining work previously awarded to small businesses and 

then adding some small new requirement so the agency can avoid 

conducting the required contract bundling analysis. As reported by 

the Oversight Committee, H.R. 1873 addresses this concern by covering under the definition of a contract bundling a combination of 

contract requirements that would meet the definition of a bundling 

if it were not for the addition of a new feature or function that does 

not substantially transform the goods or services previously performed. 

Federal contracting law provides a limited privilege for small minority and economically disadvantaged businesses. These companies can be awarded contracts worth up to $5 million without competition. In 1986, Congress made Alaska Native Corporations and 

economically disadvantaged Indian tribes eligible to participate in 

the program but provided that the $5 million ceiling did not apply 

to those groups. These firms are thus eligible to receive noncompetitive federal contracts of any value. The number and value 

of noncompetitive federal contracts awarded to Alaska Native Corporations has increased in recent years. In 2000, Alaska Native 

Corporations received $265 million in federal contracts while in 

2005, spending on these contracts grew to more than $1 billion per 

year. As reported by the Oversight Committee, H.R. 1873 puts in 

place a mechanism to begin to address this loophole. The bill contains a ‘‘placeholder’’ provision that gives Congress until the end of 

the year to revise the statute. If Congress fails to act, the Office 

of Management and Budget would set ‘‘appropriate limits’’ after a 

consultation process. 

Concerns have been raised about the validity and usefulness of 

the data maintained in federal contractor databases. According to 

the Inspector General for the Small Business Administration, agencies are getting credit toward their small business procurement 

goals for contracts which are actually awarded to large companies. 

This bill addresses these concerns by requiring changes to the information that is available in federal contractor databases and by 

requiring a biannual audit of the Central Contractor Registry. 

LEGISLATIVE HISTORY

H.R. 1873 was introduced on April 17, 2007, and referred to the 

Committee on Small Business. The Committee on Small Business 

held a markup to consider the bill on April 24, 2007, and ordered 

the bill reported, as amended, on a voice vote. 

The bill was sequentially referred to the Committee on Oversight 

and Government Reform. The Committee held a markup to consider H.R. 1873 on May 1, 2007, and ordered the bill to be reported, as amended, on a voice vote. 


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SECTION-BY-SECTION

Section 1. Short title; table of contents 

This section provides that the short title of H.R. 1873 is the 

‘‘Small Business Fairness in Contracting Act of 2007.’’ This section 

also contains a table of contents. 

Section 2. Regulations 

This section requires the SBA Administrator to issue regulations, 

after providing the opportunity for notice and comment, implementing this Act. This section also requires the Federal Acquisition 

Regulation to be revised to implement the Act and the amendments 

made by the Act. 

Title I—Contract Bundling 

Section 101. Definitions of bundling of contract requirements and 

related terms 

This section clarifies the definition of contract bundling and related terms. The term ‘‘bundled contract’’ is amended to include a 

contract or an order that is entered into to meet 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. This provision is intended to cover single award or 

multiple award ‘‘task and delivery’’ orders under requirements-type 

contracts and indefinite delivery indefinite quantity contracts. This 

expansion of the current statutory coverage ensures that small 

businesses have an appropriate opportunity to share in the federal 

business opportunities offered through task and delivery orders 

under already existing contracts. 

Under the current definition, a contract is considered bundled if 

it involves the consolidation of work that has been previously performed. This section expands the definition of ‘‘bundling of contract 

requirements’’ to cover construction services and to cover a combination of contract requirements that would meet the definition of 

a bundling if it were not for the addition of a procurement requirement with at least one new good or service if the new features or 

functions do not substantially transform the good or services previously performed. None of these definitions apply if the anticipated aggregate dollar value of the award is under $65 million for 

construction services or under $5 million for all other contracts, or 

if it applies only to non-commercial items. 

The bill, as introduced, could have been read to change the definition of contract bundling to include virtually all contracts the federal government puts out for bid. This would require agencies to 

conduct time-consuming and burdensome economic analyses for almost all federal contracts. This section, as amended during Committee consideration, provides a balanced expansion that improves 

small business access to federal contracts while preserving the discretion of agency contracting officials. 

Section 102. Justification 

This section requires a contracting agency to provide the small 

business representative for the agency with information on incumVerDate Aug 31 2005 00:12 May 05, 2007 Jkt 059006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\B111P2.XXX B111P2

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bent contract holders, a description of the industries which might 

be interested in bidding on the contract requirements, and the 

number of small businesses listed in the industry categories which 

potentially could be excluded if the contract is combined or packaged. This section allows the SBA Administrator to intervene and 

request a statement of work for goods or services and to request 

that the solicitation process be postponed 10 days to allow the Administrator to review the statement and make recommendations. 

Section 103. Appeals 

This section allows a small business or a trade association acting 

on behalf of a small business adversely affected by a proposed procurement to request that SBA take actions to further the interests 

of that small business concern. 

Section 104. Review 

Under current law, when SBA and a procuring agency disagree 

on a contract bundling issue, the head of the contracting agency resolves the dispute. This section improves accountability by requiring the head of the agency to provide a written response to the 

SBA Administrator and to provide copies of the response to Congress. 

This section was amended during Committee consideration to 

eliminate the requirement that OMB become involved in disputes 

between SBA and other federal agencies over whether a contract 

is bundled. The authority to resolve these disputes should ultimately remain with the individual responsible for ensuring that 

the contract is fulfilled and not with political appointees at OMB. 

The reporting requirements of this section will ensure appropriate 

oversight of the issue. 

Title II—Increasing the Number of Small Business Contracts and 

Subcontracts 

Section 201. Small business goal 

This section increases the government-wide small business procurement goal from 23% to 25%. This section would also raise the 

government-wide procurement goal for small disadvantaged businesses and women-owned businesses from 5% to 8%. This section 

was amended during Committee consideration. As introduced, the 

bill would have raised the small business procurement goal to 30%. 

The federal government barely meets the current goal of 23% and 

25% will be a significant improvement. 

Section 202. Annual goal negotiation 

This section requires the President, before the close of each fiscal 

year, to establish new government-wide procurement goals for the 

following fiscal year. This provision is intended to ensure that new 

goals are set each year. 

Section 203. Usage of small companies in goal achievement 

This section would only permit agencies to count a small business toward one additional procurement category goal (small businesses owned by service disabled veterans, socially and economically disadvantaged individuals, qualified HUB Zone concerns, and 


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women) even if the small business would otherwise qualify to be 

counted under more than one goal. 

Section 204. Annual plan for each agency explaining how agency 

will meet small business goals 

This section requires the head of each agency to submit to the 

SBA Administrator and Congress a detailed plan on how the agency intends to meet its small business procurement goals for that 

fiscal year. 

Section 205. Making small business the first choice 

This section would require that the maximum dollar value for 

the small business threshold be raised to that of the Simplified Acquisition Threshold. The Simplified Acquisition Threshold is adjusted based on inflation. Tying the maximum small business 

threshold to the Simplified Acquisition Threshold allows both 

thresholds to be adjusted to inflation at the same time. H.R. 1873, 

as introduced, included a provision that would extend the small 

business reservation to orders under existing contracts. This provision was eliminated in the bill as reported by the Oversight Committee. 

Section 206. Uniform metric for subcontracting achievements 

This section requires prime contractors to report small business 

usage, at all tiers, based on the percentage of the total dollar 

amount of the contract award. This provision establishes a uniform 

way of measuring subcontracting performance. 

Section 207. Subcontracting database 

This section requires the SBA Administrator to develop and 

maintain a password protected database to enable agencies to assist small businesses in marketing to large corporations that have 

not achieved their small business goals. 

Section 208. National database 

This section requires the SBA Administrator to ensure that 

whenever a small business enters its information in the Central 

Contractor Registry, the Administrator contacts the business within 30 days regarding the likelihood of federal contracting opportunities. This section also requires the Administrator to ensure that 

each small business is provided with the total dollar value of government contract awards to small businesses for each of its relevant industries. 

Section 209. Review of subcontracting plans 

This section requires the SBA Administrator, within 120 days 

and after an opportunity for notice and comment, to prescribe regulations governing the Administrator’s review of subcontracting 

plans, including standards for determining good faith effort in compliance with the subcontracting plans. 

Section 210. Agency obligation for fulfilling contracting goals 

This section requires the head of each federal agency to submit 

to Congress a report on the percentage of contracts the agency 

awarded to small businesses for that fiscal year. If it is less than 


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25%, the head of the agency must explain why and what the agency will do to ensure that the percentage will not be less than 25% 

for the next fiscal year. 

Section 211. Change in threshold for sole source contracts for certain entities 

This section gives Congress until the end of the year to adopt legislation addressing sole-source contracting by Alaska Native Corporations and economically disadvantaged Indian tribes. If Congress fails to act during this ‘‘placeholder’’ period, the section requires the Administrator for Federal Procurement Policy, in consultation with the SBA Administrator, to establish appropriate limits on the value of sole-source contracts awarded to these groups. 

In setting these limits, the Administrator must consult with representatives of affected Alaska Natives and Indian tribes and take 

into account any special circumstances and needs of the affected 

program participants and the advantages of promoting competition 

in federal contracting. 

These changes are intended to preserve the integrity of the contracting privileges afforded to Alaska Native Corporations and economically disadvantaged Indian tribes by introducing competition 

into the program. 

Title III—Protection of Taxpayers From Fraud 

Section 301. Small business size protest notification 

Subsection (a) requires the SBA Administrator to work with 

agencies to ensure that whenever a business fails to prevail in a 

size protest and the determination is made that the business is not 

small, a note is made in the Central Contractor Registry. 

Subsection (b) requires the SBA Administrator, in any report on 

small business goal accomplishments, to qualify the accomplishments as ‘‘estimated’’ until the Comptroller General certifies to the 

Administrator that there are no data integrity issues with respect 

to the Federal Procurement Data System-Next Generation. 

Subsection (c) requires the Inspector General of each agency to 

report annually on contracts that were coded as awards to small 

businesses but were in fact awarded to businesses that did not 

qualify as small. 

Section 302. Review of national registry 

This section requires the SBA Administrator to ensure, on a biannual basis, that an independent audit is performed of the Central Contractor Registry and that the Dynamic Small Business 

Search portion of the registry is purged of any businesses that are 

not small businesses. This section provides that if a business that 

has been purged attempts to re-register, it will be subject to debarment as a federal contractor and will be subject to penalties outlined in section 645 of chapter 15 of the United States Code. 

Section 303. Recertification of compliance with size standards and 

registration with central contractor registry 

This section requires businesses that are, at the time of a contract award, close to exceeding their size standards, to annually recertify throughout the duration of the contract. 


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This provision is intended to ensure that small businesses that 

outgrow the small business classification do not continue to be eligible for small business awards and to ensure that agencies do not 

receive credit toward their small business procurement goals for 

awarding contracts to such businesses. This provision does not require a business that outgrows its small business designation to 

lose its contract. 

Title IV—Authorization of Appropriations 

Section 401. Authorization of appropriations 

This section authorizes necessary appropriations for implementation. 

EXPLANATION OF AMENDMENTS

The following amendments were adopted in Committee: 

Mr. Waxman and Mr. Davis offered an amendment, passed by 

voice vote, in the nature of a substitute. The amendment makes a 

number of changes to H.R. 1873. The amendment changes the definition of contract bundling and eliminates the requirement that 

OMB become involved in contract-specific disputes between SBA 

and other federal agencies over contract bundling. The amendment 

requires the contracting agency to provide a written opinion to SBA 

and to Congress regarding such disputes. The amendment changes 

the increase in the government-wide small business procurement 

goal to 25% from 30% as included in the bill as it was referred to 

the Committee. The amendment gives Congress until the end of 

the year to address sole-source contracting by Alaska Native Corporations and economically disadvantaged Indian tribes. The 

amendment also eliminated provisions of the bill, as introduced, 

which would have required overseas contracts to be included in determining achievement of procurement goals and to require agencies to negotiate individual procurement goals, not lower than the 

national goal. 

Mr. Clay and Mr. Cummings offered an amendment, passed by 

voice vote, to raise the government-wide procurement goal for small 

disadvantaged businesses and women-owned businesses from 5% to 

8%. 

COMMITTEE CONSIDERATION

On Tuesday, May 1, 2007, the Committee met in open session 

and favorably ordered the bill, H.R. 1873, to be reported as amended, by a voice vote. 

ROLLCALL VOTES

No rollcall votes were held. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to terms and conditions of employment or access to public 

services and accommodations. 


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H.R. 1873 does not relate to the terms and conditions of employment or access to public services and accommodations within the 

meaning of Section 102(b)(3). 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(l) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report, including the need to establish 

appropriate limits for certain sole-source contracts and the need for 

improvements in the accuracy of contracting data maintained in 

federal databases. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(a) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report, including improving the federal procurement system. 

CONSTITUTIONAL AUTHORITY STATEMENT

Under clause 3(d)(1) of rule XIII of the Rules of the House of 

Representatives, the Committee must include a statement citing 

the specific powers granted to Congress to enact the law proposed 

by H.R. 1873. Article I, Section 8, Clause 18, of the Constitution 

of the United States grants the Congress the power to enact this 

law. 

FEDERAL ADVISORY COMMITTEE ACT

The Committee finds that the legislation does not establish or 

authorize the establishment of an advisory committee within the 

definition of 5 U.S.C. App., Section 5(b). 

UNFUNDED MANDATES STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement on whether the 

provisions of the report include unfunded mandates. In compliance 

with this law, and in the absence of an estimate from the Congressional Budget Office, the committee states that the bill deals only 

with the functions and operations of the federal government and, 

as such, contains no unfunded mandates. 

EARMARK IDENTIFICATION

H.R. 1873 does not include any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), 

or 9(f) of rule XXI. 

COMMITTEE ESTIMATE

At the time of the filing of this report on H.R. 1873, the cost estimate of the Congressional Budget Office was not available. In compliance with clause 3(d)(2) of rule XIII of the Rules of the House 


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of Representatives, and based on the best information available at 

this time the Committee on Oversight and Government Reform 

provides the following estimate. The Committee on Small Business, 

in its report on H.R. 1873, estimated that should the bill be enacted, it would cost $2.5 million in fiscal year 2008 and $2 million 

each year thereafter. Most of the costs fall within budget function 

370 and other budget functions that procure goods and services. If 

the bill is enacted prior to fiscal year 2008 and necessary amounts 

are appropriated near the start of each fiscal year thereafter, the 

five year cost of the bill reported by the Committee on Small Business from 2008 to 2012 would be $10.5 million. The bill as reported 

by the Committee on Oversight and Government Reform may reduce those cost due to differences in bundling and goaling requirements. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

SMALL BUSINESS ACT 

* * * * * * * 

SEC. 3. (a)(1) * * * 

* * * * * * * 

(5) RECERTIFICATION.— 

(A) IN GENERAL.—If a business concern is awarded a contract 

because of a standard by which it is determined to be a small 

business concern, and the business concern is close to exceeding 

that standard at the time the award is made, then the business 

concern must, annually after the date of the award, recertify to 

the agency awarding the contract whether it meets that standard. 

(B) ‘‘CLOSE TO EXCEEDING’’.—For purposes of subparagraph 

(A), a business concern is close to exceeding— 

(i) a number-of-employees standard if the number of employees of the business concern is 95 percent or more of the 

maximum number of employees allowed under the standard; and 

(ii) a dollar-volume-of-business standard if the dollar volume of business is 80 percent or more of the maximum dollar volume allowed under the standard. 

(6) REGISTRY.—For a business concern to be awarded a contract 

because of a standard by which it is determined to be a small business concern, the business concern must, annually after the end of 

the fiscal year used by the business concern, update its listing in the 

Central Contractor Registry. 

* * * * * * * 

ø(o) DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS AND

RELATED TERMS.—In this Act: 


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ø(1) BUNDLED CONTRACT.—The term ‘‘bundled contract’’ means a contract that is entered into to meet requirements 

that are consolidated in a bundling of contract requirements. 

ø(2) BUNDLING OF CONTRACT REQUIREMENTS.—The term ‘‘bundling of contract requirements’’ means consolidating 2 or 

more procurement requirements for goods or services previously provided or performed under separate smaller contracts 

into a solicitation of offers for a single contract that is likely 

to be unsuitable for award to a small-business concern due to— ø(A) the diversity, size, or specialized nature of the elements of the performance specified; 

ø(B) the aggregate dollar value of the anticipated award; 

ø(C) the geographical dispersion of the contract performance sites; or 

ø(D) any combination of the factors described in subparagraphs (A), (B), and (C). 

ø(3) SEPARATE SMALLER CONTRACT.—The term ‘‘separate 

smaller contract’’, with respect to a bundling of contract requirements, means a contract that has been performed by 1 or 

more small business concerns or was suitable for award to 1 

or more small business concerns.¿ 

(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, including any construction services, previously supplied or 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 


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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 previously 

performed. 

(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). 

(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—

(A) $65,000,000, if solely for construction services; and 

(B) $5,000,000, in all other cases. 

(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. 

* * * * * * * 

SEC. 8.(a) * * * 

* * * * * * * 

(d)(1) * * * 

* * * * * * * 

(12) In carrying out this subsection, the Administrator shall require each prime contractor to report small business subcontract 

usage at all tiers based on the percentage of the total dollar amount 

of the contract award. 

(13) In carrying out this subsection, the Administrator shall develop and maintain a password-protected database that will enable 

the Administration to assist small businesses in marketing to large 

corporations that have not achieved their small business goals. 

* * * * * * * 


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SEC. 15. (a) To effectuate the purposes of this Act, small-business 

concerns within the meaning of this Act shall receive any award or 

contract or any part thereof, and be awarded any contract for the 

sale of Government property, as to which it is determined by the 

Administration and the contracting procurement or disposal agency 

(1) to be in the interest of maintaining or mobilizing the Nation’s 

full productive capacity, (2) to be in the interest of war or national 

defense programs, (3) to be in the interest of assuring that a fair 

proportion of the total purchases and contracts for property and 

services for the Government in each industry category are placed 

with small-business concerns, or (4) to be in the interest of assuring that a fair proportion of the total sales of Government property 

be made to small-business concerns; but nothing contained in this 

Act shall be construed to change any preferences or priorities established by law with respect to the sale of electrical power or 

other property by the Government or any agency thereof. These determinations may be made for individual awards or contracts or for 

classes of awards or contracts. If a proposed procurement includes 

in its statement of work goods or services currently being performed by a small business, and if the proposed procurement is in 

a quantity or estimated dollar value the magnitude of which renders small business prime contract participation unlikely, or if a 

proposed procurement for construction seeks to package or consolidate discrete construction projects, or the solicitation involves an 

unnecessary or unjustified bundling of contract requirements, as 

determined by the Administration, the Procurement Activity shall 

provide a copy of the proposed procurement to the Procurement Activity’s Small Business Procurement Center Representative at least 

30 days prior to the solicitation’s issuance along with a statement 

explaining (1) why the proposed acquisition cannot be divided into 

reasonably small lots (not less than economic production runs) to 

permit offers on quantities less than the total requirement, ø(2) 

why delivery schedules¿ (2) the names, addresses and size of the incumbent contract holders; (3) a description of the industries that 

might be interested in bidding on the contract requirements; (4) the 

number of small businesses listed in the industry categories that 

could be excluded from future bidding if the contract is combined 

or packaged; (5) why delivery schedules cannot be established on a 

realistic basis that will encourage small business participation to 

the extent consistent with the actual requirements of the Government, ø(3) why the proposed acquisition¿ (6) why the proposed acquisition cannot be offered so as to make small business participation likely, ø(4) why construction¿ (7) why construction cannot be 

procured as separate discrete projects, or ø(5) why the agency¿ (8) 

why the agency has determined that the bundled contract (as defined in section 3(o)) is necessary and øjustified.¿ justified. The 

statement shall also set forth the proposed procurement strategy required by subsection (e) and, if applicable, the specifications required by subsection (e)(3). The statement shall be made available 

to the public, including through dissemination in the Federal contracting opportunities database, concurrently with the issuance of 

the solicitation. The thirty-day notification process shall occur concurrently with other processing steps required prior to issuance of 

the solicitation. Within 15 days after receipt of the proposed procurement and accompanying statement, if the Procurement Center 


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Representative believes that the procurement as proposed will 

render small business prime contract participation unlikely, the 

Representative shall recommend to the Procurement Activity alternative procurement methods which would increase small business 

prime contracting opportunities. øWhenever the Administration 

and the contracting procurement agency fail to agree, the matter 

shall be submitted for determination to the Secretary or the head 

of the appropriate department or agency by the Administrator.¿ If 

no notification of the procurement and accompanying statement is 

received, but the Administrator determines that there is cause to believe the contract combines requirements or a contract (single or 

multiple award) or task or delivery order for construction services 

or includes unjustified bundling, then the Administrator may request that such a statement of work goods or services be completed 

by the procurement activity and sent to the Procurement Center Representative and the solicitation process postponed for 10 days to 

allow the Administrator to review the statement and make recommendations as described in this section before the procurement is 

continued. If a small business concern would be adversely affected, 

directly or indirectly, by the procurement as proposed, and that 

small business concern or a trade association on behalf of that 

small business concern so requests, the Administrator may, in the 

Administrator’s discretion, take action to further the interests of 

that small business concern. Whenever the Administration and the 

contracting procurement agency fail to agree, the Administrator 

shall submit the matter to the head of the agency for a determination. The head of the agency shall provide a written response to the 

Administrator. A copy of such response shall also be provided to the 

Committees on Small Business of the House of Representatives and 

Senate, the Committee on Oversight and Government Reform of the 

House of Representatives, and the Committee on Homeland Security 

and Governmental Affairs of the Senate. For purposes of clause (3) 

of the first sentence of this subsection, an industry category is a 

discrete group of similar goods and services. Such groups shall be 

determined by the Administration in accordance with the definition 

of a ‘‘United States industry’’ under the North American Industry 

Classification System, as established by the Office of Management 

and Budget, except that the Administration shall limit such an industry category to a greater extent than provided under such classification codes if the Administration receives evidence indicating 

that further segmentation for purposes of this paragraph is warranted due to special capital equipment needs or special labor or 

geographic requirements or to recognize a new industry. A market 

for goods or services may not be segmented under the preceding 

sentence due to geographic requirements unless the Government 

typically designates the area where work for contracts for such 

goods or services is to be performed and Government purchases 

comprise the major portion of the entire domestic market for such 

goods or services and, due to the fixed location of facilities, high 

mobilization costs, or similar economic factors, it is unreasonable to 

expect competition from business concerns located outside of the 

general areas where such concerns are located. A contract may not 

be awarded under this subsection if the award of the contract 


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would result in a cost to the awarding agency which exceeds a fair 

market price. 

* * * * * * * 

(g)(1) øThe President shall annually establish Government-wide 

goals for procurement contracts¿ The President shall before the 

close of each fiscal year establish new Government-wide procurement goals for the following fiscal year for procurement contracts 

awarded to small business concerns, small business concerns 

owned and controlled by service disabled veterans, qualified 

HUBZone small business concerns, small business concerns owned 

and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women. 

The Government-wide goal for participation by small business concerns shall be established at not less than ø23 percent¿ 25 percent 

of the total value of all prime contract awards for each fiscal year. 

The Government-wide goal for participation by small business concerns owned and controlled by service-disabled 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. The Governmentwide goal for participation by qualified HUBZone small business concerns shall be established at not less than 1 percent of the 

total value of all prime contract awards for fiscal year 1999, not 

less than 1.5 percent of the total value of all prime contract awards 

for fiscal year 2000, not less than 2 percent of the total value of 

all prime contract awards for fiscal year 2001, 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. 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 ø5 percent¿ 8 percent of the total value of all prime contract 

and subcontract awards for each fiscal year. The Government-wide 

goal for participation by small business concerns owned and controlled by women shall be established at not less than ø5 percent¿ 

8 percent of the total value of all prime contract and subcontract 

awards for each fiscal year. Notwithstanding the Government-wide 

goal, each agency shall have an annual goal that presents, for that 

agency, the maximum practicable opportunity for small business 

concerns, small business concerns owned and controlled by servicedisabled veterans, qualified HUBZone small business concerns, 

small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns 

owned and controlled by women to participate in the performance 

of contracts let by such agency. The Administration and the Administrator of the Office of Federal Procurement Policy shall, when 

exercising their authority pursuant to paragraph (2), insure that 

the cumulative annual prime contract goals for all agencies meet 

or exceed the annual Government-wide prime contract goal established by the President pursuant to this paragraph. 

* * * * * * * 

(4) For purposes of this subsection and subsection (h), a small 

business concern shall be counted toward one additional category 

goal only, even if that small business concern otherwise qualifies 


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under more than one category goal. In this paragraph, the term 

‘‘category goal’’ means a goal described in paragraph (2). 

(5) Before the beginning of each fiscal year, the head of each Federal agency shall submit to the Administrator of the Small Business 

Administration and to Congress a detailed plan explaining how the 

agency intends to meet the small business goals under this subsection that apply to that agency for that fiscal year. 

(h)(1) * * * 

* * * * * * * 

(4) At the conclusion of each fiscal year, the head of each Federal 

agency shall submit to Congress a report specifying the percentage 

of contracts awarded by that agency for that fiscal year that were 

awarded to small business concerns. If the percentage is less than 

25 percent, the head of the agency shall, in the report, explain why 

the percentage is less than 25 percent and what will be done to ensure that the percentage for the following fiscal year will not be less 

than 25 percent. 

* * * * * * * 

(j)(1) Each contract for the purchase of goods and services that 

has an anticipated value greater than $2,500 but not greater than 

ø$100,000¿ the Simplified Acquisition Threshold shall be reserved 

exclusively for small business concerns unless the contracting officer is unable to obtain offers from two or more small business concerns that are competitive with market prices and are competitive 

with regard to the quality and delivery of the goods or services 

being purchased. 

* * * * * * * 

(3) Nothing in paragraph (1) shall be construed as precluding an 

award of a contract with a value not greater than $100,000 under 

the authority of øsubsection (a) of section 8¿ section 8, 31, or 36 

of this Act, section 2323 of title 10, United States Code, section 712 

of the Business Opportunity Development Reform Act of 1988 (Public Law 100–656; 15 U.S.C. 644 note), or section 7102 of the Federal Acquisition Streamlining Act of 1994. 

* * * * * * * 

Æ 


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