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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2741 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 2741

To amend the Small Business Act to provide a penalty for the failure by 
a Federal contractor to subcontract with small businesses as described 
          in its subcontracting plan, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2005

   Mr. Wynn introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL

 
To amend the Small Business Act to provide a penalty for the failure by 
a Federal contractor to subcontract with small businesses as described 
          in its subcontracting plan, 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.

     This Act may be cited as the ``Subcontractor Protection Act''.

SEC. 2. IMPLEMENTATION 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 new paragraphs:
    ``(12) In the case of any contract containing a subcontracting plan 
included pursuant to paragraph (4) or (5), the following provisions 
apply:
    ``(A) The Federal agency awarding the contract shall include in the 
contract a clause providing for the withholding of not less than (i) 
$5,000 in the case of a contract in the amount of $100,000 or less, 
(ii) 3 percent of the contract amount in the case of a contract in an 
amount of more than $100,000 and less than $5,000,000, and (iii) 5 
percent of the contract amount in the case of a contract in an amount 
of $5,000,000 or more, if the contractor does not achieve the 
percentage goal for the utilization of small business concerns owned 
and controlled by socially and economically disadvantaged individuals 
as set forth in the subcontracting plan.
    ``(B) The Federal agency awarding the contract shall require the 
contractor to provide written justification to the agency whenever the 
contractor, in performing the contract, does not enter into a 
subcontract with, or substitutes another subcontractor for, a specific 
small business concern identified in the subcontracting plan.
    ``(13) The Administration shall establish a telephone line or other 
electronic means of communication through which any small business 
concern identified in a subcontracting plan by an offeror or bidder may 
communicate to the Administration any concerns regarding major 
deviations by prime contractors from the use of small business concerns 
as subcontractors under the prime contract as described in 
subcontracting plans.''.

SEC. 3. REQUIREMENT TO CONSIDER USE OF SMALL BUSINESS CONCERNS OWNED 
              AND CONTROLLED BY SOCIALLY AND ECONOMICALLY DISADVANTAGED 
              INDIVIDUALS WHEN CONSIDERING PAST COMPLIANCE WITH 
              SUBCONTRACTING PLANS.

     Paragraphs (4)(C) and (5)(B) of section 8(d) of the Small Business 
Act (15 U.S.C. 637(d)) are each amended in the second sentence by 
inserting ``, especially compliance with the goal set forth in such 
plans for the utilization of small business concerns owned and 
controlled by socially and economically disadvantaged individuals,'' 
after ``other such subcontracting plans''.
                                 <all>
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