I 

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. 

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 ‘‘Subcontractor Protec5 tion Act’’. 
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1 SEC. 2. IMPLEMENTATION OF SUBCONTRACTING PLANS. 

2 Section 8(d) of the Small Business Act (15 U.S.C. 

3 637(d)) is amended by adding at the end the following 

4 new paragraphs: 

5 ‘‘(12) In the case of any contract containing a sub6 contracting plan included pursuant to paragraph (4) or 

7 (5), the following provisions apply: 

8 ‘‘(A) The Federal agency awarding the contract shall 

9 include in the contract a clause providing for the with10 holding of not less than (i) $5,000 in the case of a contract 

11 in the amount of $100,000 or less, (ii) 3 percent of the 

12 contract amount in the case of a contract in an amount 

13 of more than $100,000 and less than $5,000,000, and (iii) 

14 5 percent of the contract amount in the case of a contract 

15 in an amount of $5,000,000 or more, if the contractor 

16 does not achieve the percentage goal for the utilization of 

17 small business concerns owned and controlled by socially 

18 and economically disadvantaged individuals as set forth in 

19 the subcontracting plan. 

20 ‘‘(B) The Federal agency awarding the contract shall 

21 require the contractor to provide written justification to 

22 the agency whenever the contractor, in performing the 

23 contract, does not enter into a subcontract with, or sub24 stitutes another subcontractor for, a specific small busi25 ness concern identified in the subcontracting plan. 
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1 ‘‘(13) The Administration shall establish a telephone 

2 line or other electronic means of communication through 

3 which any small business concern identified in a subcon4 tracting plan by an offeror or bidder may communicate 

5 to the Administration any concerns regarding major devi6 ations by prime contractors from the use of small business 

7 concerns as subcontractors under the prime contract as 

8 described in subcontracting plans.’’. 

9 SEC. 3. REQUIREMENT TO CONSIDER USE OF SMALL BUSI10 NESS CONCERNS OWNED AND CONTROLLED 

11 BY SOCIALLY AND ECONOMICALLY DIS12 ADVANTAGED INDIVIDUALS WHEN CONSID13 ERING PAST COMPLIANCE WITH SUBCON14 TRACTING PLANS. 

15 Paragraphs (4)(C) and (5)(B) of section 8(d) of the 

16 Small Business Act (15 U.S.C. 637(d)) are each amended 

17 in the second sentence by inserting ‘‘, especially compli18 ance with the goal set forth in such plans for the utiliza19 tion of small business concerns owned and controlled by 

20 socially and economically disadvantaged individuals,’’ after 

21 ‘‘other such subcontracting plans’’. 

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