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Union Calendar No. 523 

112TH CONGRESS 

2D SESSION H. R. 3850 

[Report No. 112–720, Part I] 

To amend the Small Business Act with respect to goals for procurement 

contracts awarded to small business concerns, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 31, 2012 

Mr. GRAVES of Missouri (for himself, Mr. OWENS, and Mr. SCHILLING) introduced the following bill; which was referred to the Committee on Small 

Business, and in addition to the Committee on Oversight and Government Reform, 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 

DECEMBER 21, 2012 

Additional sponsors: Mr. CHABOT, Mrs. ELLMERS, Mr. MULVANEY, Mr. 

WALSH of Illinois, Mr. WEST, Mr. HANNA, Mr. TIPTON, and Ms. HERRERA BEUTLER

DECEMBER 21, 2012 

Reported from the Committee on Small Business with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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DECEMBER 21, 2012 

The Committee on Oversight and Government Reform discharged; committed 

to the Committee of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on January 31, 2012] 

A BILL 

To amend the Small Business Act with respect to goals 

for procurement contracts awarded to small business concerns, and for other purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Government Efficiency 

5 through Small Business Contracting Act of 2012’’. 

6 SEC. 2. GOALS FOR PROCUREMENT CONTRACTS AWARDED 

7 TO SMALL BUSINESS CONCERNS. 

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

9 Act (15 U.S.C. 644(g)) is amended by striking the sub10 section enumerator and inserting the following: 

11 ‘‘(g) GOALS FOR PROCUREMENT CONTRACTS AWARD12 ED TO SMALL BUSINESS CONCERNS.—’’. 

13 (b) GOVERNMENTWIDE GOALS.—Paragraph (1) of sec14 tion 15(g) of such Act (15 U.S.C. 644(g)) is amended to 

15 read as follows: 

16 ‘‘(1) GOVERNMENTWIDE GOALS.—The President 

17 shall annually establish Governmentwide goals for 

18 procurement contracts awarded to small business con19 cerns, small business concerns owned and controlled 

20 by service-disabled veterans, qualified HUBZone 

21 small business concerns, small business concerns 

22 owned and controlled by socially and economically 

23 disadvantaged individuals, and small business con24 cerns owned and controlled by women in accordance 

25 with the following: 

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1 ‘‘(A) The Governmentwide goal for partici2 pation by small business concerns shall be estab3 lished at not less than 25 percent of the total 

4 value of all prime contract awards for each fiscal 

5 year and 40 percent of the total value of all sub6 contract awards for each fiscal year. 

7 ‘‘(B) The Governmentwide goal for partici8 pation by small business concerns owned and 

9 controlled by service-disabled veterans shall be es10 tablished at not less than 3 percent of the total 

11 value of all prime contract and at not less than 

12 3 percent of the total value of all subcontract 

13 awards for each fiscal year. 

14 ‘‘(C) The Governmentwide goal for partici15 pation by qualified HUBZone small business 

16 concerns shall be established at not less than 3 

17 percent of the total value of all prime contract 

18 and at not less than 3 percent of the total value 

19 of all subcontract awards for each fiscal year. 

20 ‘‘(D) The Governmentwide goal for partici21 pation by small business concerns owned and 

22 controlled by socially and economically dis23 advantaged individuals shall be established at 

24 not less than 5 percent of the total value of all 

25 prime contract and at not less than 5 percent of 

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1 the total value of all subcontract awards for each 

2 fiscal year. 

3 ‘‘(E) The Governmentwide goal for partici4 pation by small business concerns owned and 

5 controlled by women shall be established at not 

6 less than 5 percent of the total value of all prime 

7 contract and at not less than 5 percent of the 

8 total value of all subcontract awards for each fis9 cal year.’’. 

10 (c) AGENCY GOALS.—Paragraph (2) of section 15(g) 

11 of such Act (15 U.S.C. 644(g)) is amended to read as fol12 lows: 

13 ‘‘(2) AGENCY GOALS.— 

14 ‘‘(A) ESTABLISHMENT.—The head of each 

15 Federal agency shall annually establish, for the 

16 agency that individual heads, goals for procure17 ment contracts awarded to small business con18 cerns, small business concerns owned and con19 trolled by service-disabled veterans, qualified 

20 HUBZone small business concerns, small busi21 ness concerns owned and controlled by socially 

22 and economically disadvantaged individuals, 

23 and small business concerns owned and con24 trolled by women. 

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1 ‘‘(B) RELATIONSHIP TO GOVERNMENTWIDE

2 GOALS.— 

3 ‘‘(i) SCOPE.—The goals established by 

4 the head of a Federal agency under sub5 paragraph (A) shall be in the same format 

6 as the goals established by the President 

7 under paragraph (1) and shall address both 

8 prime contract and subcontract awards. 

9 ‘‘(ii) REQUIREMENT TO MEET OR EX10 CEED GOVERNMENTWIDE GOALS.—With re11 spect to each goal for a fiscal year estab12 lished under subparagraph (A) for a cat13 egory of small business concern, the partici14 pation percentage applicable to such goal 

15 may not be less than the participation per16 centage applicable to the Governmentwide 

17 goal for such fiscal year established under 

18 paragraph (1) for such category. 

19 ‘‘(C) CONSULTATION REQUIRED.— 

20 ‘‘(i) IN GENERAL.—In establishing 

21 goals under subparagraph (A), the head of 

22 each Federal agency shall consult with the 

23 Administrator. 

24 ‘‘(ii) DISAGREEMENTS.—If the Admin25 istrator and the head of a Federal agency 

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1 fail to agree on a goal established under 

2 subparagraph (A), the disagreement shall be 

3 submitted to the Administrator for Federal 

4 Procurement Policy for final determination. 

5 ‘‘(D) PLAN FOR ACHIEVING GOALS.—After 

6 establishing goals under subparagraph (A) for a 

7 fiscal year, the head of each Federal agency shall 

8 develop a plan for achieving such goals, which 

9 shall apportion responsibilities among the em10 ployees of such agency having procurement pow11 ers. 

12 ‘‘(E) EXPANDED PARTICIPATION.—In estab13 lishing goals under subparagraph (A), the head 

14 of each Federal agency shall make a consistent 

15 effort to annually expand participation by small 

16 business concerns from each industry category in 

17 procurement contracts of such agency, including 

18 participation by small business concerns owned 

19 and controlled by service-disabled veterans, 

20 qualified HUBZone small business concerns, 

21 small business concerns owned and controlled by 

22 socially and economically disadvantaged indi23 viduals, and small business concerns owned and 

24 controlled by women. 

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1 ‘‘(F) CONSIDERATION.—The head of each 

2 Federal agency, in attempting to attain ex3 panded participation under subparagraph (E), 

4 shall consider— 

5 ‘‘(i) contracts awarded as the result of 

6 unrestricted competition; and 

7 ‘‘(ii) contracts awarded after competi8 tion restricted to eligible small business con9 cerns under this section and under the pro10 gram established under section 8(a). 

11 ‘‘(G) COMMUNICATION REGARDING GOALS.— 

12 ‘‘(i) IMPORTANCE OF ACHIEVING

13 GOALS.—Each procurement employee or 

14 program manager described in clause (ii) 

15 shall communicate to the subordinates of the 

16 procurement employee or program manager 

17 the importance of achieving goals estab18 lished under subparagraph (A). 

19 ‘‘(ii) PROCUREMENT EMPLOYEES OR

20 PROGRAM MANAGERS DESCRIBED.—A pro21 curement employee or program manager de22 scribed in this clause is a senior procure23 ment executive, senior program manager, or 

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1 ness Utilization of a Federal agency having 

2 contracting authority.’’. 

3 (d) ENFORCEMENT; DETERMINATIONS OF THE TOTAL

4 VALUE OF CONTRACT AWARDS.—Section 15(g) of the Small 

5 Business Act (15 U.S.C. 644(g)), as amended by this Act, 

6 is further amended by adding at the end the following: 

7 ‘‘(3) ENFORCEMENT.—If the Administrator does 

8 not issue the report required in subsection (h)(2) on 

9 or before the date that is 120 days after the end of 

10 the prior fiscal year, the Administrator may not 

11 carry out or establish any pilot program until the 

12 date on which the Administrator issues the report. 

13 ‘‘(4) DETERMINATIONS OF THE TOTAL VALUE OF

14 CONTRACT AWARDS.—For purposes of the goals estab15 lished under paragraphs (1) and (2), the total value 

16 of contract awards for a fiscal year may not be deter17 mined in a manner that excludes the value of a con18 tract based on— 

19 ‘‘(A) where the contract is awarded; 

20 ‘‘(B) where the contract is performed; 

21 ‘‘(C) whether the contract is mandated by 

22 Federal law to be performed by an entity other 

23 than a small business concern; 

24 ‘‘(D) whether funding for the contract is 

25 made available in an appropriations Act, if the 

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1 contract is subject to the Competition in Con2 tracting Act of 1984; or 

3 ‘‘(E) whether the contract is subject to the 

4 Federal Acquisition Regulation.’’. 

5 SEC. 3. REPORTING ON GOALS FOR PROCUREMENT CON6 TRACTS AWARDED TO SMALL BUSINESS CON7 CERNS. 

8 Subsection (h) of section 15 of the Small Business Act 

9 (15 U.S.C. 644) is amended to read as follows: 

10 ‘‘(h) REPORTING ON GOALS FOR PROCUREMENT CON11 TRACTS AWARDED TO SMALL BUSINESS CONCERNS.— 

12 ‘‘(1) AGENCY REPORTS.—At the conclusion of 

13 each fiscal year, the head of each Federal agency shall 

14 submit to the Administrator a report describing— 

15 ‘‘(A) the extent of the participation by small 

16 business concerns, small business concerns owned 

17 and controlled by veterans (including service-dis18 abled veterans), qualified HUBZone small busi19 ness concerns, small business concerns owned and 

20 controlled by socially and economically dis21 advantaged individuals, and small business con22 cerns owned and controlled by women in the pro23 curement contracts of such agency during such 

24 fiscal year; 

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1 ‘‘(B) whether the agency achieved the goals 

2 established for the agency under subsection 

3 (g)(2)(A) with respect to such fiscal year; and 

4 ‘‘(C) any justifications for a failure to 

5 achieve such goals. 

6 ‘‘(2) REPORTS BY ADMINISTRATOR.—Not later 

7 than 60 days after receiving a report from each Fed8 eral agency under paragraph (1) with respect to a fis9 cal year, the Administrator shall submit to the Presi10 dent and Congress, and to make available on a public 

11 website, a report that includes— 

12 ‘‘(A) a copy of each report submitted to the 

13 Administrator under paragraph (1); 

14 ‘‘(B) a determination of whether each goal 

15 established by the President under subsection 

16 (g)(1) for such fiscal year was achieved; 

17 ‘‘(C) a determination of whether each goal 

18 established by the head of a Federal agency 

19 under subsection (g)(2)(A) for such fiscal year 

20 was achieved; 

21 ‘‘(D) the reasons for any failure to achieve 

22 a goal established under paragraph (1) or (2)(A) 

23 of subsection (g) for such fiscal year and a de24 scription of actions planned by the applicable 

25 agency to address such failure, except that the 

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1 Administrator must concur with each remedi2 ation plan; 

3 ‘‘(E) for the Federal Government and each 

4 Federal agency, an analysis of the number and 

5 dollar amount of prime contracts awarded dur6 ing such fiscal year to— 

7 ‘‘(i) small business concerns— 

8 ‘‘(I) in the aggregate; 

9 ‘‘(II) through sole source con10 tracts; 

11 ‘‘(III) through competitions re12 stricted to small business concerns; and 

13 ‘‘(IV) through unrestricted com14 petition; 

15 ‘‘(ii) small business concerns owned 

16 and controlled by service-disabled vet17 erans— 

18 ‘‘(I) in the aggregate; 

19 ‘‘(II) through sole source con20 tracts; 

21 ‘‘(III) through competitions re22 stricted to small business concerns; 

23 ‘‘(IV) through competitions re24 stricted to small business concerns 

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1 owned and controlled by service-dis2 abled veterans; and 

3 ‘‘(V) through unrestricted com4 petition; 

5 ‘‘(iii) qualified HUBZone small busi6 ness concerns— 

7 ‘‘(I) in the aggregate; 

8 ‘‘(II) through sole source con9 tracts; 

10 ‘‘(III) through competitions re11 stricted to small business concerns; 

12 ‘‘(IV) through competitions re13 stricted to qualified HUBZone small 

14 business concerns; 

15 ‘‘(V) through unrestricted com16 petition where a price evaluation pref17 erence was used; and 

18 ‘‘(VI) through unrestricted com19 petition where a price evaluation pref20 erence was not used; 

21 ‘‘(iv) small business concerns owned 

22 and controlled by socially and economically 

23 disadvantaged individuals— 

24 ‘‘(I) in the aggregate; 

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1 ‘‘(II) through sole source con2 tracts; 

3 ‘‘(III) through competitions re4 stricted to small business concerns; 

5 ‘‘(IV) through competitions re6 stricted to small business concerns 

7 owned and controlled by socially and 

8 economically disadvantaged individ9 uals; 

10 ‘‘(V) through unrestricted com11 petition; and 

12 ‘‘(VI) by reason of that concern’s 

13 certification as a small business owned 

14 and controlled by socially and eco15 nomically disadvantaged individuals; 

16 ‘‘(v) small business concerns owned by 

17 an Alaska Native Corporation— 

18 ‘‘(I) in the aggregate; 

19 ‘‘(II) through sole source con20 tracts; 

21 ‘‘(III) through competitions re22 stricted to small business concerns; 

23 ‘‘(IV) through competitions re24 stricted to small business concerns 

25 owned and controlled by socially and 

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1 economically disadvantaged individ2 uals; and 

3 ‘‘(V) through unrestricted com4 petition; and 

5 ‘‘(vi) small business concerns owned 

6 and controlled by women— 

7 ‘‘(I) in the aggregate; 

8 ‘‘(II) through competitions re9 stricted to small business concerns; 

10 ‘‘(III) through competitions re11 stricted using the authority under sec12 tion 8(m)(2); 

13 ‘‘(IV) through competitions re14 stricted using the authority under sec15 tion 8(m)(2) and in which the waiver 

16 authority under section 8(m)(3) was 

17 used; and 

18 ‘‘(V) through unrestricted com19 petition; and 

20 ‘‘(F) for the Federal Government and each 

21 Federal agency, the number, dollar amount, and 

22 distribution with respect to the North American 

23 Industry Classification System of subcontracts 

24 awarded during such fiscal year to small busi25 ness concerns, small business concerns owned and 

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1 controlled by service-disabled veterans, qualified 

2 HUBZone small business concerns, small busi3 ness concerns owned and controlled by socially 

4 and economically disadvantaged individuals, 

5 and small business concerns owned and con6 trolled by women.’’. 

7 SEC. 4. SENIOR EXECUTIVES. 

8 (a) TRAINING.—Programs established for the develop9 ment of senior executives under section 3396(a) of title 5, 

10 United States Code, shall include training with respect to 

11 Federal procurement requirements, including contracting 

12 requirements under the Small Business Act (15 U.S.C. 631 

13 et seq.). 

14 (b) SABBATICALS.—If a Federal agency does not 

15 achieve, with respect to a fiscal year, a goal established by 

16 the head of such agency under section 15(g)(2)(A) of the 

17 Small Business Act (15 U.S.C. 644(g)(2)(A)), a senior exec18 utive within that agency may not be granted, during the 

19 succeeding fiscal year, a sabbatical under section 3396(c) 

20 of title 5, United States Code. 

21 (c) INCENTIVE AWARDS.—If a Federal agency does not 

22 achieve, with respect to a fiscal year, a goal established by 

23 the head of such agency under section 15(g)(2)(A) of the 

24 Small Business Act (15 U.S.C. 644(g)(2)(A)), a senior exec25 utive within that agency may not receive, during the sucmstockstill on DSK4VPTVN1PROD with 

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1 ceeding fiscal year, any incentive award under subchapter 

2 I of chapter 45 of title 5, United States Code. 

3 (d) SENIOR EXECUTIVE DEFINED.—In this section, the 

4 term ‘‘senior executive’’ has the meaning given that term 

5 in section 3132(a) of title 5, United States Code. 

6 SEC. 5. SENSE OF CONGRESS. 

7 It is the sense of Congress that the contracting provi8 sions of the Small Business Act shall apply to the leasing 

9 of buildings and office space by the United States, and shall 

10 not apply to any leasing transaction between private par11 ties. 

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Union Calendar No. 523 

112TH CONGRESS 

2D SESSION H. R. 3850 

[Report No. 112–720, Part I] 

A BILL 

To amend the Small Business Act with respect to 

business concerns, and for other purposes. goals for procurement contracts awarded to small 

DECEMBER 21, 2012 

Reported from the Committee on Small Business with an 

amendment 

DECEMBER 21, 2012 

The Committee on Oversight and Government Reform 

printed House on the State of the Union and ordered to be discharged; committed to the Committee of the Whole 

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