U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

79–010 

" ! SENATE 115TH CONGRESS

1st Session 

REPORT

2017

115–166 

Calendar No. 235 

PROCUREMENT FRAUD PREVENTION ACT 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 938 

TO REQUIRE NOTICE OF COST-FREE FEDERAL PROCUREMENT 

TECHNICAL ASSISTANCE IN CONNECTION WITH REGISTRATION 

OF SMALL BUSINESS CONCERNS IN PROCUREMENT SYSTEMS 

OCTOBER 5, 2017.—Ordered to be printed 


E:\Seals\Congress.#13
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

JOHN HOEVEN, North Dakota 

STEVE DAINES, Montana 

CLAIRE MCCASKILL, Missouri 

THOMAS R. CARPER, Delaware 

JON TESTER, Montana 

HEIDI HEITKAMP, North Dakota 

GARY C. PETERS, Michigan 

MAGGIE HASSAN, New Hampshire 

KAMALA D. HARRIS, California 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

PATRICK J. BAILEY, Chief Counsel for Governmental Affairs 

MARGARET E. DAUM, Minority Staff Director 

STACIA M. CARDILLE, Minority Chief Counsel 

CHARLES A. MOSKOWITZ, Minority Senior Legislative Counsel 

KATHERINE C. SYBENGA, Minority Counsel 

DANIEL J. WEBB, Minority U.S. Government Accountability Office Detailee 

LAURA W. KILBRIDE, Chief Clerk 

Calendar No. 235 

115TH CONGRESS REPORT " ! SENATE 1st Session 115–166 

PROCUREMENT FRAUD PREVENTION ACT 

OCTOBER 5, 2017.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 938] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 938) to require notice of cost-free 

Federal procurement technical assistance in connection with registration of small business concerns in procurement systems, having considered the same, reports favorably thereon without amendment and recommends that the bill do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 1 

III. Legislative History ......................................................................................... 2 

IV. Section-by-Section Analysis .......................................................................... 2 

V. Evaluation of Regulatory Impact .................................................................. 2 

VI. Congressional Budget Office Cost Estimate ................................................ 3 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 3 

I. PURPOSE AND SUMMARY

The Procurement Fraud Prevention Act, S. 938, requires that the 

General Services Administration (GSA) and the Office of Management and Budget (OMB) establish a procedure to notify small businesses registering to do business with the government that there 

are services available to assist them at no cost. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

Doing business with the Federal Government is notoriously complex: the Federal Acquisition Regulation is nearing 2,000 pages 

with a supplement for the Defense Department totaling over 1,000 

2 

1Federal Acquisition Regulation, 48 C.F.R. (2005). 

2Press Release, Small Business Administration, Federal Government Achieves Small Business 

Procurement Contracting Goal for Second Consecutive Year (June 26, 2015), https:// 

www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/federal-governmentachieves-small-business-procurement-contracting-goal-second-consecutive-year. 3Get Help with Government Contracting, USA.GOV, https://www.usa.gov/expand-business (last 

updated May 05, 2017). 

pages.1 Large business enterprises with the capability to absorb 

the overhead required to expertly navigate this system thrive, 

while small businesses struggle to sell their products and services 

to the Federal Government.2 To navigate the complex registration 

process required to do business with the Federal Government, 

many small businesses seek out the assistance of consultants and 

other organizations that offer services and support at varying 

prices, without realizing that there is support available at no cost.3

S. 938 requires GSA and OMB to establish a process for notifying 

small businesses that free support services exist to assist them in 

registering to do business with the Federal Government. These 

communications can be included in official communications that 

are already sent by GSA. 

III. LEGISLATIVE HISTORY

Senator Gary Peters (D–MI) introduced S. 938 on April 5, 2017. 

The bill was referred to the Committee on Homeland Security and 

Governmental Affairs. The Committee considered S. 938 at a July 

26, 2017 business meeting. 

The Committee ordered S. 938 reported favorably on July 26, 

2017, en bloc, by voice vote. Senators present for the vote were Senators Johnson, Portman, Lankford, Daines, McCaskill, Tester, 

Heitkamp, Peters, Hassan and Harris. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section provides the bill’s short title, the ‘‘Procurement 

Fraud Prevention Act.’’ 

Section 2. Notice of cost-free federal procurement technical assistance in connection with registration of small business concerns 

in procurement systems 

This section requires GSA and OMB to establish a procedure to 

notify small businesses that there is free technical assistance available to them to assist in navigating the federal procurement process, including assisting with registering to do business with the 

federal government. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

3 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

SEPTEMBER 13, 2017. 

Hon. RON JOHNSON, 

Chairman, Committee on Homeland Security and Governmental Affairs, United States Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 938, the Procurement Fraud 

Prevention Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL. 

Enclosure. 

S. 938—Procurement Fraud Prevention Act 

S. 938 would require the General Services Administration (GSA) 

in consultation with the Office of Management and Budget, to ensure that any direct communications with small businesses about 

providing goods and services to the federal government contain a 

notice that technical assistance from the federal government on the 

procurement process is available to small businesses at no cost. According to GSA and the Small Business Administration, many government websites already state that such assistance is available 

and there would be minimal administrative costs to expand those 

efforts. Thus, CBO estimates any additional costs to implement S. 

938 would total less than $500,000 annually; such spending would 

be subject to the availability of appropriated funds. 

Enacting S. 938 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

CBO estimates that enacting S. 938 would not increase direct 

spending or on-budget deficits in any of the four consecutive 10- 

year periods beginning in 2028. 

S. 938 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

Because this legislation would not repeal or amend any provision 

of current law, it would make no changes in existing law within the 

meaning of clauses (a) and (b) of paragraph 12 of rule XXVI of the 

Standing Rules of the Senate. 

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