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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4341 Introduced in House (IH)]

<DOC>

114th CONGRESS
  2d Session
                                H. R. 4341

To amend the Small Business Act to improve transparency and clarity for 
 small businesses, to clarify the role of small business advocates, to 
increase opportunities for competition in subcontracting, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2016

  Mr. Chabot (for himself and Ms. Velazquez) introduced the following 
  bill; which was referred to the Committee on Small Business, and in 
addition to the Committees on Armed Services, Oversight and Government 
    Reform, and Veterans' Affairs, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Small Business Act to improve transparency and clarity for 
 small businesses, to clarify the role of small business advocates, to 
increase opportunities for competition in subcontracting, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Defending 
America's Small Contractors Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
    TITLE I--IMPROVING TRANSPARENCY AND CLARITY FOR SMALL BUSINESSES

Sec. 101. Plain language rewrite of requirements for small business 
                            procurements.
Sec. 102. Improving reporting on small business goals.
Sec. 103. Transparency in small business goals.
Sec. 104. Uniformity in procurement terminology.
       TITLE II--CLARIFYING THE ROLES OF SMALL BUSINESS ADVOCATES

Sec. 201. Duties of procurement center representatives with respect to 
                            reviewing solicitations.
Sec. 202. Responsibilities of Commercial Market Representatives.
Sec. 203. Duties of the Office of Small and Disadvantaged Business 
                            Utilization.
Sec. 204. Improving contractor compliance.
       TITLE III--STRENGTHENING OPPORTUNITIES FOR COMPETITION IN 
                             SUBCONTRACTING

Sec. 301. Good faith in subcontracting.
Sec. 302. Pilot program to provide opportunities for qualified 
                            subcontractors to obtain past performance 
                            ratings.
                   TITLE IV--MENTOR-PROTEGE PROGRAMS

Sec. 401. Amendments to the Mentor-Protege Program of the Department of 
                            Defense.
Sec. 402. Improving cooperation between the mentor-protege programs of 
                            the Small Business Administration and the 
                            Department of Defense.
                         TITLE V--MISCELLANEOUS

Sec. 501. Improving education on small business regulations.
Sec. 502. Protecting task order competition.
Sec. 503. Improvements to size standards for small agricultural 
                            producers.
Sec. 504. Uniformity in service-disabled veteran definitions.
Sec. 505. GAO review of the Office of Government Contracting and 
                            Business Development of the Small Business 
                            Administration.

    TITLE I--IMPROVING TRANSPARENCY AND CLARITY FOR SMALL BUSINESSES

SEC. 101. PLAIN LANGUAGE REWRITE OF REQUIREMENTS FOR SMALL BUSINESS 
              PROCUREMENTS.

    Section 15(a) of the Small Business Act (15 U.S.C. 644(a)) is 
amended to read as follows:
    ``(a) Small Business Procurements.--
            ``(1) In general.--For purposes of this Act, small business 
        concerns shall receive any award or contract if such award or 
        contract is, in the determination of the Administrator and the 
        contracting agency, in the interest of--
                    ``(A) maintaining or mobilizing the full productive 
                capacity of the United States;
                    ``(B) war or national defense programs; or
                    ``(C) assuring that a fair proportion of the total 
                purchase and contracts for goods and services of the 
                Government in each industry category (as described 
                under paragraph (2)) are awarded to small business 
                concerns.
            ``(2) Industry category defined.--
                    ``(A) In general.--In this subsection, the term 
                `industry category' means a discrete group of similar 
                goods and services, as determined by the Administrator 
                in accordance with the North American Industry 
                Classification System codes used to establish small 
                business size standards under section 3(a), except that 
                the Administrator shall limit an industry category to a 
                greater extent than provided under the North American 
                Industry Classification codes if the Administrator 
                receives evidence indicating that further segmentation 
                of the industry category is warranted--
                            ``(i) due to special capital equipment 
                        needs;
                            ``(ii) due to special labor requirements;
                            ``(iii) due to special geographic 
                        requirements, except as provided in 
                        subparagraph (B); or
                            ``(iv) to recognize a new industry.
                    ``(B) Exception for geographic requirements.--The 
                Administrator may not further segment an industry 
                category based on geographic requirements unless--
                            ``(i) the Government typically designates 
                        the geographic area where work for contracts 
                        for goods or services is to be performed;
                            ``(ii) Government purchases comprise the 
                        major portion of the entire domestic market for 
                        such goods or services; and
                            ``(iii) it is unreasonable to expect 
                        competition from business concerns located 
                        outside of the general geographic area due to 
                        the fixed location of facilities, high 
                        mobilization costs, or similar economic 
                        factors.
            ``(3) Determinations with respect to awards or contracts.--
        Determinations made pursuant to paragraph (1) may be made for 
        individual awards or contracts, any part of an award or 
        contract, or for classes of awards or contracts.
            ``(4) Increasing prime contracting opportunities for small 
        business concerns.--
                    ``(A) Description of covered proposed 
                procurements.--The requirements of the paragraph shall 
                apply to a proposed procurement that includes in its 
                statement of work goods or services currently being 
                supplied or performed by a small business concern and, 
                as determined by the Administrator--
                            ``(i) is in a quantity or of an estimated 
                        dollar value which makes the participation of a 
                        small business concern as a prime contractor 
                        unlikely;
                            ``(ii) in the case of a proposed 
                        procurement for construction, if such proposed 
                        procurement seeks to bundle or consolidate 
                        discrete construction projects; or
                            ``(iii) is a solicitation that involves an 
                        unnecessary or unjustified bundling of contract 
                        requirements.
                    ``(B) Notice to procurement center 
                representatives.--With respect to proposed procurements 
                described in subparagraph (A), at least 30 days before 
                issuing a solicitation and concurrent with other 
                processing steps required before issuing the 
                solicitation, the contracting agency shall provide a 
                copy of the proposed procurement to the procurement 
                center representative of the contracting agency (as 
                described in subsection (l)) along with a statement 
                explaining--
                            ``(i) why the proposed procurement cannot 
                        be divided into reasonably small lots (not less 
                        than economic production runs) to permit offers 
                        on quantities less than the total requirement;
                            ``(ii) why delivery schedules cannot be 
                        established on a realistic basis that will 
                        encourage the participation of small business 
                        concerns in a manner consistent with the actual 
                        requirements of the Government;
                            ``(iii) why the proposed procurement cannot 
                        be offered to increase the likelihood of the 
                        participation of small business concerns;
                            ``(iv) in the case of a proposed 
                        procurement for construction, why the proposed 
                        procurement cannot be offered as separate 
                        discrete projects; or
                            ``(v) why the agency has determined that 
                        the bundling of contract requirements is 
                        necessary and justified.
                    ``(C) Alternatives to increase prime contracting 
                opportunities for small business concerns.--If the 
                procurement center representative believes that the 
                proposed procurement will make the participation of 
                small business concerns as prime contractors unlikely, 
                the procurement center representative, within 15 days 
                after receiving the statement described in subparagraph 
                (B), shall recommend to the contracting agency 
                alternative procurement methods for increasing prime 
                contracting opportunities for small business concerns.
                    ``(D) Failure to agree on an alternative 
                procurement method.--If the procurement center 
                representative and the contracting agency fail to agree 
                on an alternative procurement method, the Administrator 
                shall submit the matter to the head of the appropriate 
                department or agency for a determination.
            ``(5) Contracts for sale of government property.--With 
        respect to a contract for the sale of Government property, 
        small business concerns shall receive any such contract if, in 
        the determination of the Administrator and the disposal agency, 
        the award of such contract is in the interest of assuring that 
        a fair proportion of the total sales of Government property be 
        made to small business concerns.
            ``(6) Other requirements.--
                    ``(A) Sale of electrical power or other property.--
                Nothing in this subsection 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 Federal Government.
                    ``(B) Costs exceeding fair market price.--A 
                contract may not be awarded under this subsection if 
                the cost of the contract to the awarding agency exceeds 
                a fair market price.''.

SEC. 102. IMPROVING REPORTING ON SMALL BUSINESS GOALS.

    Section 15(h)(2)(E) of the Small Business Act (15 U.S.C. 
644(h)(2)(E)) is amended--
            (1) in clause (i)--
                    (A) in subclause (III), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following new 
                subclauses:
                                    ``(V) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns for 
                                purposes of the initial contract; and
                                    ``(VI) that were awarded using a 
                                procurement method that restricted 
                                competition to 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, small business concerns 
                                owned and controlled by women, or a 
                                subset of any such concerns;'';
            (2) in clause (ii)--
                    (A) in subclause (IV), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following new 
                subclauses:
                                    ``(VI) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns owned and 
                                controlled by service-disabled veterans 
                                for purposes of the initial contract; 
                                and
                                    ``(VII) that were awarded using a 
                                procurement method that restricted 
                                competition to qualified HUBZone small 
                                business concerns, small business 
                                concerns owned and controlled by 
                                socially and economically disadvantaged 
                                individuals, small business concerns 
                                owned and controlled by women, or a 
                                subset of any such concerns;'';
            (3) in clause (iii)--
                    (A) in subclause (V), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following new 
                subclauses:
                                    ``(VII) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be qualified HUBZone small business 
                                concerns for purposes of the initial 
                                contract; and
                                    ``(VIII) that were awarded using a 
                                procurement method that restricted 
                                competition to small business concerns 
                                owned and controlled by service-
                                disabled veterans, small business 
                                concerns owned and controlled by 
                                socially and economically disadvantaged 
                                individuals, small business concerns 
                                owned and controlled by women, or a 
                                subset of any such concerns;'';
            (4) in clause (iv)--
                    (A) in subclause (V), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following new 
                subclauses:
                                    ``(VII) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns owned and 
                                controlled by socially and economically 
                                disadvantaged individuals for purposes 
                                of the initial contract; and
                                    ``(VIII) that were awarded using a 
                                procurement method that restricted 
                                competition to small business concerns 
                                owned and controlled by service-
                                disabled veterans, qualified HUBZone 
                                small business concerns, small business 
                                concerns owned and controlled by women, 
                                or a subset of any such concerns;'';
            (5) in clause (v)--
                    (A) in subclause (IV), by striking ``and'' at the 
                end;
                    (B) in subclause (V), by inserting ``and'' at the 
                end; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VI) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns owned by 
                                an Indian tribe other than an Alaska 
                                Native Corporation for purposes of the 
                                initial contract;'';
            (6) in clause (vi)--
                    (A) in subclause (IV), by striking ``and'' at the 
                end;
                    (B) in subclause (V), by inserting ``and'' at the 
                end; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VI) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns owned by 
                                a Native Hawaiian Organization for 
                                purposes of the initial contract;'';
            (7) in clause (vii)--
                    (A) in subclause (IV), by striking ``and'' at the 
                end;
                    (B) in subclause (V), by striking ``and'' at the 
                end; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VI) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns owned by 
                                an Alaska Native Corporation for 
                                purposes of the initial contract; 
                                and''; and
            (8) in clause (viii)--
                    (A) in subclause (VII), by striking ``and'' at the 
                end;
                    (B) in subclause (VIII), by striking ``and'' at the 
                end; and
                    (C) by adding at the end the following new 
                subclauses:
                                    ``(IX) that were purchased by 
                                another entity after the initial 
                                contract was awarded and as a result of 
                                the purchase, would no longer be deemed 
                                to be small business concerns owned and 
                                controlled by women for purposes of the 
                                initial contract; and
                                    ``(X) that were awarded using a 
                                procurement method that restricted 
                                competition to 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, or a subset of any such 
                                concerns; and''.

SEC. 103. TRANSPARENCY IN SMALL BUSINESS GOALS.

    Section 15(g) of the Small Business Act is amended by adding at the 
end the following new paragraph:
            ``(4) Determinations of the total value of contract 
        awards.--For purposes of the goals established under paragraphs 
        (1) and (2), the total value of contract awards for a fiscal 
        year may not be determined in a manner that excludes the value 
        of a contract based on--
                    ``(A) where the contract is awarded;
                    ``(B) where the contract is performed;
                    ``(C) whether the contract is mandated by Federal 
                law to be performed by an entity other than a small 
                business concern;
                    ``(D) whether funding for the contract is made 
                available in an appropriations Act, if the contract is 
                subject to the requirements of chapter 33 of title 41, 
                United States Code, or chapter 137 of title 10, United 
                States Code, and the Federal Acquisition Regulation; or
                    ``(E) whether the contract is otherwise subject to 
                the Federal Acquisition Regulation.''.

SEC. 104. UNIFORMITY IN PROCUREMENT TERMINOLOGY.

    (a) In General.--Section 15(j)(1) of the Small Business Act (15 
U.S.C. 644(j)(1)) is amended by striking ``greater than $2,500 but not 
greater than $100,000'' and inserting ``greater than the micro-purchase 
threshold defined in section 1902(a) of title 41, United States Code, 
but not greater than the simplified acquisition threshold''.
    (b) Technical Amendment.--Section 3(m) of the Small Business Act 
(15 U.S.C. 632(m)) is amended to read as follows:
    ``(m) Definitions Pertaining to Contracting.--In this Act:
            ``(1) Prime contract.--The term `prime contract' has the 
        meaning given such term in section 8701(4) of title 41, United 
        States Code.
            ``(2) Prime contractor.--The term `prime contractor' has 
        the meaning given such term in section 8701(5) of title 41, 
        United States Code.
            ``(3) Simplified acquisition threshold.--The term 
        `simplified acquisition threshold' has the meaning given such 
        term in section 134 of title 41, United States Code.
            ``(4) Total purchase and contracts for property and 
        services.--The term `total purchases and contracts for property 
        and services' shall mean total number and total dollar amount 
        of contracts and orders for property and services.''.

       TITLE II--CLARIFYING THE ROLES OF SMALL BUSINESS ADVOCATES

SEC. 201. DUTIES OF PROCUREMENT CENTER REPRESENTATIVES WITH RESPECT TO 
              REVIEWING SOLICITATIONS.

    Section 15(l)(2) of the Small Business Act (15 U.S.C. 644(l)(2)(D)) 
is amended--
            (1) by redesignating subparagraphs (E) through (I) as 
        subparagraphs (F) through (J), respectively; and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) review any solicitation for a contract or 
                task order without regard to whether the contract or 
                task order or part of the contract or task order is set 
                aside for small business concerns, whether 1 or more 
                contract or task order awards are reserved for small 
                business concerns under a multiple award contract, or 
                whether or not the solicitation would result in a 
                bundled or consolidated contract (as defined in 
                subsection (s)) or a bundled or consolidated task 
                order;''.

SEC. 202. RESPONSIBILITIES OF COMMERCIAL MARKET REPRESENTATIVES.

    Section 4(h) of the Small Business Act (as added by section 865 of 
the National Defense Authorization Act for Fiscal Year 2016 (Public Law 
114-92)) is amended--
            (1) in the subsection heading, by striking ``Certification 
        Requirements for'';
            (2) in paragraph (2), by redesignating subparagraphs (A) 
        and (B) as clauses (i) and (ii), respectively (and conforming 
        the margins accordingly);
            (3) by amending clause (ii) (as so redesignated) to read as 
        follows:
                    ``(B) Application.--The requirements of clause (i) 
                shall be included in any initial job posting for the 
                position of a commercial market representative and 
                shall apply to any person appointed as a commercial 
                market representative after November 25, 2015.'';
            (4) in clause (i) (as so redesignated), by striking 
        ``paragraph (2)'' and inserting ``subparagraph (A)'';
            (5) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively (and conforming the 
        margins accordingly);
            (6) in subparagraph (A) (as so redesignated), by striking 
        ``paragraph (2)'' and inserting ``subparagraph (B)''; and
            (7) by inserting before subparagraph (A) (as so 
        redesignated) the following:
            ``(1) Duties.--The principal duties of a Commercial Market 
        Representative employed by the Administrator and reporting to 
        the senior official appointed by the Administrator with 
        responsibilities under sections 8, 15, 31, and 36 (or the 
        designee of such official) shall be to advance the policies 
        established in section 8(d)(1) relating to subcontracting. Such 
        duties shall include--
                    ``(A) helping prime contractors to find small 
                business concerns that are capable of performing 
                subcontracts;
                    ``(B) for contractors awarded contracts containing 
                the clause described in section 8(d)(3), providing--
                            ``(i) counseling on the contractor's 
                        responsibility to maximize subcontracting 
                        opportunities for small business concerns;
                            ``(ii) instruction on methods and tools to 
                        identify potential subcontractors that are 
                        small business concerns; and
                            ``(iii) assistance to increase awards to 
                        subcontractors that are small business concerns 
                        through visits, training, and reviews of past 
                        performance;
                    ``(C) providing counseling on how a small business 
                concern may promote its capacity to contractors awarded 
                contracts containing the clause described in section 
                8(d)(3); and
                    ``(D) conducting periodic reviews of contractors 
                awarded contracts containing the clause described in 
                section 8(d)(3) to assess compliance with 
                subcontracting plans required under section 8(d)(6).
            ``(2) Certification requirements.--''.

SEC. 203. DUTIES OF THE OFFICE OF SMALL AND DISADVANTAGED BUSINESS 
              UTILIZATION.

    Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), as 
amended by section 870 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114-92), is amended--
            (1) by striking ``section 8, 15 or 44'' and inserting 
        ``section 8, 15, 31, 36, or 44'';
            (2) by striking ``sections 8 and 15'' each place such term 
        appears and inserting ``sections 8, 15, 31, 36, and 44'';
            (3) in paragraph (10), by striking ``section 8(a)'' and 
        inserting ``section 8, 15, 31, or 36'';
            (4) by redesignating paragraphs (15), (16), and (17) as 
        paragraphs (16), (17), and (18), respectively;
            (5) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) shall review purchases made by the agency greater 
        than the micro-purchase threshold defined in section 1902(a) of 
        title 41, United States Code, and less than the simplified 
        acquisition threshold to ensure that the purchases have been 
        made in compliance with the provisions of this Act and have 
        been properly recorded in the Federal Procurement Data System, 
        if the method of payment is a purchase card issued by the 
        Department of Defense pursuant to section 2784 of title 10, 
        United States Code, or by the head of an executive agency 
        pursuant to section 1909 of title 41, United States Code;''; 
        and
            (6) in paragraph (17) (as so redesignated)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) any failure of the agency to comply with 
                section 8, 15, 31, or 36.''.

SEC. 204. IMPROVING CONTRACTOR COMPLIANCE.

    (a) Requirements for the Office of Small and Disadvantaged Business 
Utilization.--Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)(8)), as amended by section 204, is further amended--
            (1) by redesignating paragraphs (16), (17), and (18) as 
        paragraphs (17), (18), and (19), respectively; and
            (2) by inserting after paragraph (15) the following new 
        paragraph:
            ``(16) shall provide assistance to a small business concern 
        awarded a contract or subcontract under this Act or under title 
        10 or title 41, United States Code, with finding resources for 
        education and training on compliance with contracting 
        regulations (including the Federal Acquisition Regulation) 
        after award of such a contract or subcontract.''.
    (b) Requirements Under the Mentor-Protege Program of the Department 
of Defense.--Section 831(e)(1) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1607; 10 U.S.C. 
2302 note) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (3) by inserting at the end the following new subparagraph:
                    ``(D) the assistance the mentor firm will provide 
                to the protege firm in understanding contract 
                regulations of the Federal Government and the 
                Department of Defense (including the Federal 
                Acquisition Regulation and the Defense Federal 
                Acquisition Regulation Supplement) after award of a 
                subcontract under this section, if applicable.''.
    (c) Resources for Small Business Concerns.--Section 15 of the Small 
Business Act (15 U.S.C. 644) is amended by adding at the end the 
following new subsection:
    ``(t) Post-Award Compliance Resources.--The Administrator shall 
provide to small business development centers (as defined in section 
21) and entities participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, United 
States Code, and shall make available on the website of the 
Administration, a list of resources for small business concerns seeking 
education and assistance on compliance with contracting regulations 
(including the Federal Acquisition Regulation) after award of a 
contract or subcontract.''.
    (d) Requirements for Procurement Center Representatives.--Section 
15(l)(2) of the Small Business Act (15 U.S.C. 644(l)(2)) is amended--
            (1) by redesignating subparagraph (J) as subparagraph (K);
            (2) in subparagraph (I), by striking ``and'' at the end; 
        and
            (3) by inserting after subparagraph (I) the following new 
        subparagraph:
                    ``(J) assist small business concerns with finding 
                resources for education and training on compliance with 
                contracting regulations (including the Federal 
                Acquisition Regulation) after award of a contract or 
                subcontract; and''.
    (e) Requirements Under the Mentor-Protege Program of the Small 
Business Administration.--Section 45(b)(3) of the Small Business Act 
(15 U.S.C. 657r(b)(3)) is amended by adding at the end the following 
new subparagraph:
                    ``(K) The extent to which assistance with 
                compliance with the requirements of contracting with 
                the Federal Government after award of a contract or 
                subcontract under this section.''.

       TITLE III--STRENGTHENING OPPORTUNITIES FOR COMPETITION IN 
                             SUBCONTRACTING

SEC. 301. GOOD FAITH IN SUBCONTRACTING.

    (a) Transparency in Subcontracting Goals.--Section 8(d)(9) of the 
Small Business Act (15 U.S.C. 637(d)(9)) is amended--
            (1) by striking ``(9) The failure'' and inserting the 
        following:
            ``(9) Material breach.--The failure'';
            (2) in subparagraph (A), by striking ``or'' at the end;
            (3) in subparagraph (B), by inserting ``or'' at the end; 
        and
            (4) by inserting after subparagraph (B) the following:
            ``(C) assurances provided under paragraph (6)(E),''.
    (b) Authority of the Administrator of the Small Business 
Administration.--Section 8(d)(11) of the Small Business Act (15 U.S.C. 
637(d)(11)) is amended--
            (1) by striking ``(11) In the case of'' and inserting the 
        following:
            ``(11) Authority of administrator.--In the case of''; and
            (2) in subparagraph (B), by striking ``, which shall be 
        advisory in nature,''.
    (c) Review and Acceptance of Subcontracting Plans.--Section 8(d) of 
the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the 
end the following:
            ``(17) Review and acceptance of subcontracting plans.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered small business concerns' means--
                            ``(i) small business concerns;
                            ``(ii) qualified HUBZone small business 
                        concerns;
                            ``(iii) small business concerns owned and 
                        controlled by veterans;
                            ``(iv) small business concerns owned and 
                        controlled by service-disabled veterans;
                            ``(v) small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals, as defined in 
                        paragraph (3)(C); and
                            ``(vi) small business concerns owned and 
                        controlled by women.
                    ``(B) Delayed acceptance of plan.--Except as 
                provided in subparagraph (E), if a procurement center 
                representative or commercial market representative 
                determines that a subcontracting plan required under 
                paragraph (4) or (5) fails to provide the maximum 
                practicable opportunity for covered small business 
                concerns to participate in the performance of the 
                contract to which the plan applies, the representative 
                may delay acceptance of the plan in accordance with 
                subparagraph (C).
                    ``(C) Process for delayed acceptance.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a procurement center 
                        representative or commercial market 
                        representative who makes a determination under 
                        subparagraph (B) with respect to a 
                        subcontracting plan may delay acceptance of the 
                        plan for a 30-day period by providing written 
                        notice of the determination to the head of the 
                        procuring activity of the contracting agency 
                        that includes recommendations for altering the 
                        plan to provide the maximum practicable 
                        opportunity described in that subparagraph.
                            ``(ii) Exception.--In the case of the 
                        Department of Defense--
                                    ``(I) a procurement center 
                                representative or commercial market 
                                representative who makes a 
                                determination under subparagraph (B) 
                                with respect to a subcontracting plan 
                                may delay acceptance of the plan for a 
                                15-day period by providing written 
                                notice of the determination to 
                                appropriate personnel of the Department 
                                of Defense that includes 
                                recommendations for altering the plan 
                                to provide the maximum practicable 
                                opportunity described in that 
                                subparagraph; and
                                    ``(II) the authority of a 
                                procurement center representative or 
                                commercial market representative to 
                                delay acceptance of a subcontracting 
                                plan as provided in subparagraph (B) 
                                does not include the authority to delay 
                                the award or performance of the 
                                contract concerned.
                    ``(D) Disagreements.--If a procurement center 
                representative or commercial market representative 
                delays the acceptance of a subcontracting plan under 
                subparagraph (C) and does not reach agreement with the 
                head of the procuring activity of the contracting 
                agency to alter the plan to provide the maximum 
                practicable opportunity described in subparagraph (B) 
                not later than 30 days after the date on which written 
                notice was provided, the disagreement shall be 
                submitted to the head of the contracting agency by the 
                Administrator for a final determination.
                    ``(E) Exception.--A procurement center 
                representative or commercial market representative may 
                not delay the acceptance of a subcontracting plan if 
                the head of the contracting agency certifies that the 
                need of the agency for the supplies or services is of 
                such an unusual and compelling urgency that the United 
                States would be seriously injured unless the agency is 
                permitted to accept the subcontracting plan.''.
    (d) Good Faith Compliance.--Not later than 270 days after the date 
of enactment of this Act, the Administrator of the Small Business 
Administration shall issue regulations providing examples of activities 
that would be considered a failure to make a good faith effort to 
comply with the requirements imposed on an entity (other than a small 
business concern as defined under section 3 of the Small Business Act 
(15 U.S.C. 632)) that is awarded a prime contract containing the 
clauses required under paragraph (4) or (5) of section 8(d) of the 
Small Business Act (15 U.S.C. 637(d)).

SEC. 302. PILOT PROGRAM TO PROVIDE OPPORTUNITIES FOR QUALIFIED 
              SUBCONTRACTORS TO OBTAIN PAST PERFORMANCE RATINGS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)), as 
amended by section 301, is further amended by adding at the end the 
following new paragraph:
            ``(18) Pilot program providing past performance ratings for 
        other small business subcontractors.--
                    ``(A) Establishment.--The Administrator shall 
                establish a pilot program for a small business concern 
                performing as a first tier subcontractor for a covered 
                contract (as defined in paragraph 13(A)) to request a 
                past performance rating in the system used by the 
                Federal Government to monitor or record contractor past 
                performance.
                    ``(B) Application.--A small business concern 
                described in subparagraph (A) shall submit an 
                application to the appropriate official for a past 
                performance rating. Such application shall include 
                written evidence of the past performance factors for 
                which the small business concern seeks a rating and a 
                suggested rating.
                    ``(C) Determination.--The appropriate official 
                shall submit the application from the small business 
                concern to the contracting officer (or a designee of 
                such officer) for the covered contract and to the prime 
                contractor for review. The contracting officer (or 
                designee) and the prime contractor shall, not later 
                than 30 days after receipt of the application, submit 
                to the appropriate official a response regarding the 
                application.
                            ``(i) Agreement on rating.--If the 
                        contracting officer (or designee) and the prime 
                        contractor agree on a past performance rating, 
                        or if either the contracting officer (or 
                        designee) or the prime contractor fail to 
                        respond and the responding individual agrees 
                        with the rating of the applicant small business 
                        concern, the appropriate official shall enter 
                        the agreed-upon past performance rating in the 
                        system described in subparagraph (A).
                            ``(ii) Disagreement on rating.--If the 
                        contracting officer (or designee) and the prime 
                        contractor fail to respond within 30 days or if 
                        they disagree about the rating, or if either 
                        the contracting officer (or designee) or the 
                        prime contractor fail to respond and the 
                        responding individual disagrees with the rating 
                        of the applicant small business concern, the 
                        contracting officer (or designee) or the prime 
                        contractor shall submit a notice contesting the 
                        application to appropriate official. The 
                        appropriate official shall follow the 
                        requirements of subparagraph (D).
                    ``(D) Procedure for rating.--Not later than 14 
                calendar days after receipt of a notice under 
                subparagraph (C)(ii), the appropriate official shall 
                submit such notice to the applicant small business 
                concern. Such concern may submit comments, rebuttals, 
                or additional information relating to the past 
                performance of such concern not later 14 calendar days 
                after receipt of such notice. The appropriate official 
                shall enter the into the system described in 
                subparagraph (A) a rating that is neither favorable nor 
                unfavorable along with the initial application from the 
                small business concern, the responses of the 
                contracting officer (or designee) and the prime 
                contractor, and any additional information provided by 
                the small business concern.
                    ``(E) Use of information.--A small business 
                subcontractor may use a past performance rating given 
                under this paragraph to establish its past performance 
                for a prime contract.
                    ``(F) Duration.--The pilot program established 
                under this paragraph shall terminate 3 years after the 
                date on which the first small business concern receives 
                a past performance rating for performance as a first 
                tier subcontractor.
                    ``(G) Report.--The Comptroller General of the 
                United States shall begin an assessment of the pilot 
                program 1 year after the establishment of such program. 
                Not later than 6 months after beginning such 
                assessment, the Comptroller General shall submit a 
                report to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives, which 
                shall include--
                            ``(i) the number of small business concerns 
                        that have received past performance ratings 
                        under the pilot program;
                            ``(ii) the number of applications in which 
                        the contracting officer (or designee) or the 
                        prime contractor contested the application of 
                        the small business concern;
                            ``(iii) any suggestions or recommendations 
                        the Comptroller General or the small business 
                        concerns participating in the program have to 
                        address disputes between the small business 
                        concern, the contracting officer (or designee), 
                        and the prime contractor on past performance 
                        ratings; and
                            ``(iv) any suggestions or recommendation 
                        the Comptroller General has to improve the 
                        operation of the pilot program.
                    ``(H) Appropriate official defined.--In this 
                paragraph, the term `appropriate official' means a 
                Commercial Market Representative or other individual 
                designated by the senior official appointed by the 
                Administrator with responsibilities under sections 8, 
                15, 31, and 36.''.

                   TITLE IV--MENTOR-PROTEGE PROGRAMS

SEC. 401. AMENDMENTS TO THE MENTOR-PROTEGE PROGRAM OF THE DEPARTMENT OF 
              DEFENSE.

    Section 831 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1607; 10 U.S.C. 2302 note) is 
amended--
            (1) in subsection (d)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) prior to the approval of that agreement, the 
        Administrator of the Small Business Administration had made no 
        finding of affiliation between the mentor firm and the protege 
        firm;'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2)(A) the Administrator of the Small Business 
        Administration does not have a current finding of affiliation 
        between the mentor firm and protege firm; or
            ``(B) the Secretary, after considering the regulations 
        promulgated by the Administrator of the Small Business 
        Administration regarding affiliation--
                    ``(i) does not have reason to believe that the 
                mentor firm affiliated with the protege firm; or
                    ``(ii) has received a formal determination of no 
                affiliation between the mentor firm and protege firm 
                from the Administrator after having submitted a 
                question of affiliation to the Administrator; and''; 
                and
            (2) in subsection (n), by amending paragraph (9) to read as 
        follows:
            ``(9) The term `affiliation', with respect to a 
        relationship between a mentor firm and a protege firm, means a 
        relationship described under section 121.103 of title 13, Code 
        of Federal Regulations (or any successor regulation).''.

SEC. 402. IMPROVING COOPERATION BETWEEN THE MENTOR-PROTEGE PROGRAMS OF 
              THE SMALL BUSINESS ADMINISTRATION AND THE DEPARTMENT OF 
              DEFENSE.

    Section 45(b)(4) of the Small Business Act (15 U.S.C. 657r(b)(4)) 
is amended by striking subparagraph (A) and redesignating subparagraphs 
(B) and (C) as subparagraphs (A) and (B), respectively.

                         TITLE V--MISCELLANEOUS

SEC. 501. IMPROVING EDUCATION ON SMALL BUSINESS REGULATIONS.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
section 204(c), is further amended by adding at the end the following 
new subsection:
    ``(u) Regulatory Changes and Training Materials.--Not less than 
annually, the Administrator shall provide to the Defense Acquisition 
University (established under section 1746 of title 10, United States 
Code), the Federal Acquisition Institute (established under section 
1201 of title 41, United States Code), the individual responsible for 
mandatory training and education of the acquisition workforce of each 
agency (described under section 1703(f)(1)(C) of title 41, United 
States Code), small business development centers (as defined in section 
21), and entities participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, United 
States Code--
            ``(1) a list of all changes made in the prior year to 
        regulations promulgated--
                    ``(A) by the Administrator that affect Federal 
                acquisition; and
                    ``(B) by the Federal Acquisition Council that 
                implement changes to this Act; and
            ``(2) any materials the Administrator has developed to 
        explain, train, or assist Federal agencies or departments or 
        small business concerns to comply with the regulations 
        specified in paragraph (1).''.

SEC. 502. PROTECTING TASK ORDER COMPETITION.

    Section 4106(f) of title 41, United States Code, is amended by 
striking paragraph (3).

SEC. 503. IMPROVEMENTS TO SIZE STANDARDS FOR SMALL AGRICULTURAL 
              PRODUCERS.

    (a) Amendment to Definition of Agricultural Enterprises.--Paragraph 
(1) of section 18(b) of the Small Business Act (15 U.S.C. 647(b)(1)) is 
amended by striking ``businesses'' and inserting ``small business 
concerns''.
    (b) Equal Treatment of Small Farms.--Paragraph (1) of section 3(a) 
of the Small Business Act (15 U.S.C. 632(a)(1)) is amended by striking 
``operation: Provided,'' and all that follows through the period at the 
end and inserting ``operation.''.
    (c) Updated Size Standards.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this section, the Administrator of the Small 
        Business Administration shall, by rule, establish size 
        standards in accordance with section 3 of the Small Business 
        Act (15 U.S.C. 632) for agricultural enterprises (as such term 
        is defined in section 18(b)(1) of such Act).
            (2) Review.--Size standards established under subsection 
        (a) are subject to the rolling review procedures established 
        under section 1344(a) of the Small Business Jobs Act of 2010 
        (15 U.S.C. 632 note).

SEC. 504. UNIFORMITY IN SERVICE-DISABLED VETERAN DEFINITIONS.

    (a) Small Business Definition of Small Business Concern 
Consolidated.--Section 3(q) of the Small Business Act (15 U.S.C. 
632(q)) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) Small business concern owned and controlled by 
        service-disabled veterans.--The term `small business concern 
        owned and controlled by service-disabled veterans' means any of 
        the following:
                    ``(A) A small business concern--
                            ``(i) not less than 51 percent of which is 
                        owned by one or more service-disabled veterans 
                        or, in the case of any publicly owned business, 
                        not less than 51 percent of the stock (not 
                        including any stock owned by an ESOP) of which 
                        is owned by one or more service-disabled 
                        veterans; and
                            ``(ii) the management and daily business 
                        operations of which are controlled by one or 
                        more service-disabled veterans or, in the case 
                        of a veteran with permanent and severe 
                        disability, the spouse or permanent caregiver 
                        of such veteran.
                    ``(B) A small business concern--
                            ``(i) not less than 51 percent of which is 
                        owned by one or more service-disabled veterans 
                        with a disability that is rated by the 
                        Secretary of Veterans Affairs as a permanent 
                        and total disability who are unable to manage 
                        the daily business operations of such concern; 
                        or
                            ``(ii) in the case of a publicly owned 
                        business, not less than 51 percent of the stock 
                        (not including any stock owned by an ESOP) of 
                        which is owned by one or more such veterans.
                    ``(C)(i) During the time period described in clause 
                (ii), a small business concern that was a small 
                business concern described in subparagraph (A) or (B) 
                immediately prior to the death of a service-disabled 
                veteran who was the owner of the concern, the death of 
                whom causes the concern to be less than 51 percent 
                owned by one or more service-disabled veterans, if--
                            ``(I) the surviving spouse of the deceased 
                        veteran acquires such veteran's ownership 
                        interest in such concern;
                            ``(II) such veteran had a service-connected 
                        disability (as defined in section 101(16) of 
                        title 38, United States Code) rated as 100 
                        percent disabling under the laws administered 
                        by the Secretary of Veterans Affairs or such 
                        veteran died as a result of a service-connected 
                        disability; and
                            ``(III) immediately prior to the death of 
                        such veteran, and during the period described 
                        in clause (ii), the small business concern is 
                        included in the database described in section 
                        8127(f) of title 38, United States Code.
                    ``(ii) The time period described in this clause is 
                the time period beginning on the date of the veteran's 
                death and ending on the earlier of--
                            ``(I) the date on which the surviving 
                        spouse remarries;
                            ``(II) the date on which the surviving 
                        spouse relinquishes an ownership interest in 
                        the small business concern; or
                            ``(III) the date that is 10 years after the 
                        date of the death of the veteran.''; and
            (2) by adding at the end the following new paragraphs:
            ``(6) ESOP.--The term `ESOP' has the meaning given the term 
        `employee stock ownership plan' in section 4975(e)(7) of the 
        Internal Revenue Code of 1986 (26 U.S.C. 4975(e)(7)).
            ``(7) Surviving spouse.--The term `surviving spouse' has 
        the meaning given such term in section 101(3) of title 38, 
        United States Code.''.
    (b) Veterans Affairs Definition of Small Business Concern 
Consolidated.--
            (1) In general.--Section 8127 of title 38, United States 
        Code, is amended--
                    (A) by striking subsection (h) and redesignating 
                subsections (i) through (l) as subsections (h) through 
                (k), respectively; and
                    (B) in subsection (k), as so redesignated--
                            (i) by amending paragraph (2) to read as 
                        follows:
            ``(2) The term `small business concern owned and controlled 
        by veterans' has the meaning given that term under section 
        3(q)(3) of the Small Business Act (15 U.S.C. 632(q)(3)).''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(3) The term `small business concern owned and controlled 
        by veterans with service-connected disabilities' has the 
        meaning given the term `small business concern owned and 
        controlled by service-disabled veterans' under section 3(q)(2) 
        of the Small Business Act (15 U.S.C. 632(q)(2)).''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by inserting ``or a small 
                business concern owned and controlled by veterans with 
                service-connected disabilities'' after ``a small 
                business concern owned and controlled by veterans'';
                    (B) in subsection (c), by inserting ``or a small 
                business concern owned and controlled by veterans with 
                service-connected disabilities'' after ``a small 
                business concern owned and controlled by veterans'';
                    (C) in subsection (d) by inserting ``or small 
                business concerns owned and controlled by veterans with 
                service-connected disabilities'' after ``small business 
                concerns owned and controlled by veterans'' both places 
                it appears; and
                    (D) in subsection (f)(1), by inserting ``, small 
                business concerns owned and controlled by veterans with 
                service-connected disabilities,'' after ``small 
                business concerns owned and controlled by veterans''.
    (c) Technical Correction.--Section 8(d)(3) of the Small Business 
Act (15 U.S.C. 637(d)(3)), is amended by adding at the end the 
following new subparagraph:
            ``(H) In this contract, the term `small business concern 
        owned and controlled by service-disabled veterans' has the 
        meaning given that term in section 3(q).''.
    (d) Regulations Relating to Database of the Secretary of Veterans 
Affairs.--
            (1) Requirement to use certain small business 
        administration regulations.--Section 8127(f)(4) of title 38, 
        United States Code, is amended by striking ``verified'' and 
        inserting ``verified, using regulations issued by the 
        Administrator of the Small Business Administration with respect 
        to the status of the concern as a small business concern and 
        the ownership and control of such concern,''.
            (2) Prohibition on secretary of veterans affairs issuing 
        certain regulations.--Section 8127(f) of title 38, United 
        States Code, is amended by adding at the end the following new 
        paragraph:
    ``(7) The Secretary may not issue regulations related to the status 
of a concern as a small business concern and the ownership and control 
of such small business concern.''.
    (e) Delayed Effective Date.--The amendments made by subsections 
(a), (b), (c), and (d) shall take effect on the date on which the 
Administrator of the Small Business Administration and the Secretary of 
Veterans Affairs jointly issue regulations implementing such sections. 
Such date shall be not later than 18 months after the date of enactment 
of this Act.
    (f) Appeals of Inclusion in Database.--
            (1) In general.--Section 8127(f) of title 38, United States 
        Code, as amended by section 3, is further amended by adding at 
        the end the following new paragraph:
    ``(8)(A) If the Secretary does not verify a concern for inclusion 
in the database under this subsection based on the status of the 
concern as a small business concern or the ownership or control of the 
concern, the concern may appeal the denial of verification to the 
Office of Hearings and Appeals of the Small Business Administration (as 
established under part 134 of title 13, Code of Federal Regulations, or 
any successor administrative appellate entity created with the Small 
Business Administration). The decision of the Office of Hearings and 
Appeals shall be considered a final agency action.
    ``(B)(i) If an interested party challenges the inclusion in the 
database of a small business concern owned and controlled by veterans 
or a small business concern owned and controlled by veterans with 
service-connected disabilities based on the status of the concern as a 
small business concern or the ownership or control of the concern, the 
challenge shall be heard by the Office of Hearings and Appeals of the 
Small Business Administration as described in subparagraph (A). The 
decision of the Office of Hearings and Appeals shall be considered 
final agency action.
    ``(ii) In this subparagraph, the term `interested party' means--
            ``(I) the Secretary; and
            ``(II) in the case of a small business concern that is 
        awarded a contract, the contracting officer of the Department 
        or another small business concern that submitted an offer for 
        the contract that was awarded to the small business concern 
        that submitted an offer under clause (i).
    ``(C) For each fiscal year, the Secretary shall reimburse the 
Administrator of the Small Business Administration in an amount 
necessary to cover any cost incurred by the Office of Hearings and 
Appeals of the Small Business Administration for actions taken by the 
Office under this paragraph. The amount of any such reimbursement shall 
be determined jointly by the Secretary and the Administrator and shall 
be provided from fees collected by the Secretary under multiple-award 
schedule contracts. Any disagreement about the amount shall be resolved 
by the Director of the Office of Management and Budget.''.
            (2) Effective date.--Paragraph (8) of subsection (f) of 
        title 38, United States Code, as added by paragraph (1), shall 
        apply with respect to a verification decision made by the 
        Secretary of Veterans Affairs on or after the date of the 
        enactment of this Act.

SEC. 505. GAO REVIEW OF THE OFFICE OF GOVERNMENT CONTRACTING AND 
              BUSINESS DEVELOPMENT OF THE SMALL BUSINESS 
              ADMINISTRATION.

    (a) Study.--Not later than 60 days after the date of the enactment 
of this Act, the Comptroller General of the United States shall 
initiate a review of the Office of Government Contracting and Business 
Development of the Small Business Administration. Such review shall 
examine--
            (1) the extent to which the personnel of the Small Business 
        Administration who carry out procurement and business 
        development programs report to the Office of Government 
        Contracting and Business Development;
            (2) whether greater efficiency and consistency in the 
        certification process of procurement and business development 
        programs could be achieved by creating a single organizational 
        unit of employees to process all certifications required by 
        procurement and business development programs;
            (3) whether greater efficiency and efficacy in the 
        performance of procurement and business development programs 
        could be achieved by improving the alignment of the field 
        personnel assigned to such programs;
            (4) how the Office of Government Contracting and Business 
        Development could improve its staffing of regulatory drafting 
        functions and its coordination with the Federal Acquisition 
        Regulatory Council to ensure timely rulemaking by the Small 
        Business Administration; and
            (5) any other areas in which the Comptroller General 
        determines that the Small Business Administration could improve 
        its performance with respect to procurement and business 
        development programs.
    (b) Report.--Not later than 1 year after initiating the review 
required by paragraph (1), the Comptroller General shall submit a 
report including the results of the review, along with any 
recommendations for improvements or other suggestions with respect to 
procurement and business development programs, to the Committee on 
Small Business of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate.
    (c) Procurement and Business Development Program Defined.--In this 
Act, the term ``procurement and business development program'' means a 
program related to procurement or business development established 
under section 7, 8, 15, 31, 36, 44, 45, or 46 of the Small Business Act 
(15 U.S.C. 631 et seq.).
                                 <all>
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