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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2551 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2551

    To amend the Small Business Act to ensure that certain Federal 
 contracts are set aside for small businesses, to enhance services to 
    small businesses that are disadvantaged, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2013

   Mr. Rush introduced the following bill; which was referred to the 
   Committee on Small Business, and in addition to the Committees on 
Financial Services and 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

_______________________________________________________________________

                                 A BILL

 
    To amend the Small Business Act to ensure that certain Federal 
 contracts are set aside for small businesses, to enhance services to 
    small businesses that are disadvantaged, 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 ``Expanding Opportunities for Main 
Street Act of 2013''.

                 TITLE I--SMALL BUSINESS ADMINISTRATION

SEC. 101. CONTRACT OPPORTUNITIES FOR SMALL BUSINESS CONCERNS.

    (a) Definitions.--In this section--
            (1) the term ``eligible contract'' means any contract for 
        the acquisition of goods or services that is in an amount 
        (including options) of more than $3,000 and less than $500,000; 
        and
            (2) the term ``small business concern'' has the meaning 
        given that term under section 3(a) of the Small Business Act 
        (15 U.S.C. 632(a)).
    (b) In General.--Notwithstanding any other provision of law, a 
Federal department or agency shall, to the extent practicable, award to 
a small business concern each eligible contract let by the department 
or agency.
    (c) Sole Source Contracts.--A Federal department or agency may 
award an eligible contract as a sole source contract to a small 
business concern if at least 1 small business concern submits an offer 
with respect to the eligible contract.
    (d) Award to Small Business Not Practicable.--
            (1) In general.--If a contracting officer of a Federal 
        department or agency determines that awarding an eligible 
        contract to a small business concern under subsection (b) is 
        not practicable, the contracting officer shall make available 
        to the Administrator of the Small Business Administration and 
        the public--
                    (A) the determination and reasoning of such officer 
                with respect to the eligible contract; and
                    (B) the name of each small business concern that 
                submitted an offer with respect to the eligible 
                contract.
            (2) Review.--The Administrator of the Small Business 
        Administration shall--
                    (A) review a determination under paragraph (1); and
                    (B) if the Administrator determines it is 
                appropriate, open the eligible contract opportunity for 
                the submission of additional offers and award the 
                contract.

SEC. 102. ENHANCEMENT OF SERVICES TO SMALL BUSINESSES THAT ARE 
              DISADVANTAGED.

    (a) Net Worth.--Section 8(a)(6)(A) of the Small Business Act (15 
U.S.C. 637(a)(6)(A)) is amended by inserting after ``disadvantaged 
individual.'' the following: ``For purposes of this section, an 
individual having a net worth of more than $1,500,000 is not 
economically disadvantaged.''.
    (b) Time Limit on Participation.--Section 7(j)(15) of the Small 
Business Act (15 U.S.C. 636(j)(15)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by inserting ``(A)'' after ``(15)''; and
            (3) by adding at the end the following:
                    ``(B) No time limitation relating to the period 
                that a small business concern may receive developmental 
                assistance under the Program and contracts under 
                section 8(a) shall apply to a small business concern 
                that has not completed a contract under section 
                8(a).''.

SEC. 103. BUNDLED CONTRACTS.

    (a) Definitions.--Section 3(o) of the Small Business Act (15 U.S.C. 
632(o)) is amended to read as follows:
    ``(o) Definitions of Bundling of Contract Requirements and Related 
Terms.--In this Act:
            ``(1) Bundled contract.--
                    ``(A) In general.--The term `bundled contract' 
                means a contract or order that is entered into to meet 
                procurement requirements that are consolidated in a 
                bundling of contract requirements, without regard to 
                how the procuring agency has designated the contract or 
                order or whether a study of the effects of the 
                solicitation on civilian or military personnel has been 
                made.
                    ``(B) Exceptions.--The term does not include--
                            ``(i) a contract or order with an aggregate 
                        dollar value below the dollar threshold; or
                            ``(ii) a contract or order that is entered 
                        into to meet an exempted requirement.
            ``(2) Bundling of contract requirements.--
                    ``(A) In general.--The term `bundling of contract 
                requirements' means the use of any bundling methodology 
                to satisfy 2 or more procurement requirements for goods 
                or services previously supplied or performed under 
                separate smaller contracts or orders, or to satisfy 2 
                or more procurement requirements for construction 
                services of a type historically performed under 
                separate smaller contracts or orders, that is likely to 
                be unsuitable for award to a small business concern due 
                to--
                            ``(i) the diversity, size, or specialized 
                        nature of the elements of the performance 
                        specified;
                            ``(ii) the aggregate dollar value of the 
                        anticipated award;
                            ``(iii) the geographical dispersion of the 
                        contract or order performance sites; or
                            ``(iv) any combination of the factors 
                        described in clauses (i), (ii), and (iii).
                    ``(B) Inclusion of new features or functions.--A 
                combination of contract requirements that would meet 
                the definition of a bundling of contract requirements 
                but for the addition of a procurement requirement with 
                at least 1 new good or service shall be considered to 
                be a bundling of contract requirements unless the new 
                features or functions substantially transform the goods 
                or services and will provide measurably substantial 
                benefits to the Federal Government in terms of quality, 
                performance, or price.
                    ``(C) Exceptions.--The term `bundling of contract 
                requirements' does not include--
                            ``(i) the use of a bundling methodology for 
                        an anticipated award with an aggregate dollar 
                        value below the dollar threshold; or
                            ``(ii) the use of a bundling methodology to 
                        meet an exempted requirement.
            ``(3) Bundling methodology.--The term `bundling 
        methodology' means--
                    ``(A) a solicitation to obtain offers for a single 
                contract or order, or a multiple award contract or 
                order; or
                    ``(B) a solicitation of offers for the issuance of 
                a task or a delivery order under an existing single or 
                multiple award contract or order.
            ``(4) Separate smaller contract.--The term `separate 
        smaller contract', with respect to bundling of contract 
        requirements, means a contract or order that has been performed 
        by 1 or more small business concerns or was suitable for award 
        to 1 or more small business concerns.
            ``(5) Dollar threshold.--The term `dollar threshold' 
        means--
                    ``(A) $65,000,000, in the case of a contract or 
                order that is solely for construction services; and
                    ``(B) $5,000,000 for a contract or order not 
                described in subparagraph (A).
            ``(6) Exempted requirement.--The term `exempted 
        requirement' means a procurement requirement solely for items 
        that are not commercial items (as the term `commercial item' is 
        defined in section 103 of title 41, United States Code).
            ``(7) Procurement requirement.--The term `procurement 
        requirement' means a determination by a Federal agency that a 
        specified good or service is needed to satisfy the mission of 
        the Federal agency.''.
    (b) Proposed Procurement Requirements.--Section 15(a) of the Small 
Business Act (15 U.S.C. 644(a)) is amended--
            (1) in the third sentence, by striking ``necessary and 
        justified'' and inserting ``necessary and justified, and 
        identifying information on the incumbent contract holders, a 
        description of the industries that might be interested in 
        bidding on the contract requirements, and the number of small 
        businesses listed in the industry categories that could be 
        excluded from future bidding if the contract is combined or 
        packaged''; and
            (2) by striking the sixth sentence and inserting the 
        following: ``Whenever the Administration and the contracting 
        procurement agency fail to agree, the Administrator may review 
        the proposed procurement or delay the solicitation process for 
        not more than 10 days to make recommendations, and the matter 
        shall be submitted to the Director of the Office of Management 
        and Budget to mediate the disagreement.''.

SEC. 104. FEDERAL CONTRACTING GOALS.

    (a) Increase in Certain Goals.--Section 15(g)(1) of the Small 
Business Act (15 U.S.C. 644(g)(1)) is amended--
            (1) by striking ``not less than 23 percent'' and inserting 
        ``not less than 25 percent''; and
            (2) by striking ``not less than 5 percent'' each place it 
        appears and inserting ``not less than 10 percent''.
    (b) Limitation on Number of Categories for Which a Business May 
Qualify.--Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) is 
amended by adding at the end the following:
            ``(3) A Federal agency may not include a business concern 
        in more than 2 specified categories for purposes of determining 
        whether the Federal agency has met the Government-wide goals 
        under this subsection for the award of contracts to business 
        concerns in specified categories. In this paragraph, the term 
        `specified category' means small business concerns, 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, and small business 
        concerns owned and controlled by women.''.

SEC. 105. 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:
            ``(13) In the case of any contract containing a 
        subcontracting plan included pursuant to paragraph (4) or (5)--
                    ``(A) The Administrator shall collaborate with the 
                Federal agency awarding the contract to develop and 
                include in the contract a clause providing that, if the 
                contractor meets the percentage goal for the 
                utilization of small business concerns, including those 
                owned and controlled by socially and economically 
                disadvantaged individuals, as set forth in the 
                subcontracting plan, the Federal agency may give 
                additional consideration to contractor.
                    ``(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.
            ``(14) The Administration shall establish a telephone line 
        or other electronic means of communication through which a 
        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 the subcontracting plan.''.

SEC. 106. REQUIREMENT TO CONSIDER USE OF SMALL BUSINESS CONCERNS OWNED 
              AND CONTROLLED BY SOCIALLY AND ECONOMICALLY DISADVANTAGED 
              INDIVIDUALS WHEN CONSIDERING PAST COMPLIANCE WITH 
              SUBCONTRACTING PLANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended--
            (1) in paragraph (4)(C), 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''; and
            (2) in paragraph (5)(B), 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''.

             TITLE II--MINORITY BUSINESS DEVELOPMENT AGENCY

SEC. 201. DEFINITIONS.

    In this title:
            (1) Historically disadvantaged individual.--The term 
        ``historically disadvantaged individual'' means any individual 
        who is a member of a group that is designated as eligible to 
        receive assistance under section 1400.1 of title 15, Code of 
        Federal Regulations, as in effect on January 1, 2009.
            (2) Principal.--The term ``principal'' means any person 
        that the Director determines to exercise significant control 
        over the regular operations of a business entity.
            (3) Program.--The term ``Program'' means the Minority 
        Business Development Program established under section 202.

SEC. 202. EMERGING MINORITY BUSINESS DEVELOPMENT PROGRAM.

    The National Director of the Minority Business Development Agency 
shall establish the Minority Business Development Program to assist 
qualified minority businesses. The Program shall provide to such 
businesses the following:
            (1) Technical assistance under section 204.
            (2) Loan guarantees under section 208.
            (3) Contract procurement assistance under section 205.

SEC. 203. QUALIFIED MINORITY BUSINESS.

    (a) Certification.--For purposes of the Program, the National 
Director of the Minority Business Development Agency may certify as a 
qualified minority business any entity that satisfies each of the 
following:
            (1) Not less than 51 percent of the entity is directly and 
        unconditionally owned or controlled by historically 
        disadvantaged individuals.
            (2) Each officer or other individual who exercises control 
        over the regular operations of the entity is a historically 
        disadvantaged individual.
            (3) The net worth of each principal of the entity is not 
        greater than $2,000,000. (The equity of a disadvantaged owner 
        in a primary personal residence shall not be considered in this 
        calculation.)
            (4) The principal place of business of the entity is in the 
        United States.
            (5) Each principal of the entity maintains good character 
        in the determination of the National Director.
            (6) The entity engages in competitive and bona fide 
        commercial business operations in not less than one sector of 
        industry that has a North American Industry Classification 
        System code.
            (7) The entity submits reports to the National Director at 
        such time, in such form, and containing such information as the 
        National Director may require.
            (8) Such other requirements as the National Director 
        considers appropriate.
    (b) Term of Certification.--A certification under this section 
shall be for a term of 5 years and may not be renewed.

SEC. 204. TECHNICAL ASSISTANCE.

    (a) In General.--In carrying out the Program, the National Director 
of the Minority Business Development Agency may provide to qualified 
minority businesses technical assistance with regard to the following:
            (1) Writing business plans.
            (2) Marketing.
            (3) Management.
            (4) Securing sufficient financing for business operations.
    (b) Contract Authority.--The National Director may enter into 
agreements with persons to provide technical assistance under this 
section.

SEC. 205. SET-ASIDE CONTRACTING OPPORTUNITIES.

    (a) In General.--The National Director of the Minority Business 
Development Agency may enter into agreements with the United States 
Government and any department, agency, or officer thereof having 
procurement powers for purposes of providing for the fulfillment of 
procurement contracts and providing opportunities for qualified 
minority businesses with regard to such contracts.
    (b) Qualifications on Participation.--The National Director shall 
by rule establish requirements for participation under this section by 
a qualified minority business in a contract.
    (c) Annual Limit on Number of Contracts Per Qualified Minority 
Business.--A qualified minority business may not participate under this 
section in contracts in an amount that exceeds $10,000,000 for goods 
and services each fiscal year.
    (d) Limits on Contract Amounts.--
            (1) Goods and services.--Except as provided in paragraph 
        (2), a contract for goods and services under this section may 
        not exceed $6,000,000.
            (2) Manufacturing and construction.--A contract for 
        manufacturing and construction services under this section may 
        not exceed $10,000,000.

SEC. 206. TERMINATION FROM PROGRAM.

    The National Director of the Minority Business Development Agency 
may terminate a qualified minority business from the Program for any 
violation of a requirement of sections 203 through 206 by that 
qualified minority business, including the following:
            (1) Conduct by a principal of the qualified minority 
        business that indicates a lack of business integrity.
            (2) Willful failure to comply with applicable labor 
        standards and obligations.
            (3) Consistent failure to tender adequate performance with 
        regard to contracts under the Program.
            (4) Failure to obtain and maintain relevant certifications.
            (5) Failure to pay outstanding obligations owed to the 
        Federal Government.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated $200,000,000 to the National Director to carry out this 
section. Such sums shall remain available until expended.

SEC. 208. LOAN GUARANTEES.

    (a) In General.--Subject to subsection (b), the National Director 
of the Minority Business Development Agency may guarantee up to 90 
percent of the amount of a loan made to a qualified minority business 
to be used for business purposes, including the following:
            (1) Purchasing essential equipment.
            (2) Payroll expenses.
            (3) Purchasing facilities.
            (4) Renovating facilities.
    (b) Terms and Conditions.--
            (1) In general.--The National Director may make guarantees 
        under this section for projects on such terms and conditions as 
        the National Director determines appropriate, after 
        consultation with the Secretary of the Treasury, in accordance 
        with this section.
            (2) Repayment.--No guarantee shall be made under this 
        section unless the National Director determines that there is 
        reasonable prospect of repayment of the principal and interest 
        on the obligation by the borrower.
            (3) Defaults.--
                    (A) Payment by national director.--
                            (i) In general.--If a borrower defaults on 
                        the obligation (as defined in regulations 
                        promulgated by the National Director and 
                        specified in the guarantee contract), the 
                        holder of the guarantee shall have the right to 
                        demand payment of the unpaid amount from the 
                        National Director.
                            (ii) Payment required.--Within such period 
                        as may be specified in the guarantee or related 
                        agreements, the National Director shall pay to 
                        the holder of the guarantee the unpaid interest 
                        on, and unpaid principal of the obligation as 
                        to which the borrower has defaulted, unless the 
                        National Director finds that there was no 
                        default by the borrower in the payment of 
                        interest or principal or that the default has 
                        been remedied.
                            (iii) Forbearance.--Nothing in this 
                        paragraph precludes any forbearance by the 
                        holder of the obligation for the benefit of the 
                        borrower which may be agreed upon by the 
                        parties to the obligation and approved by the 
                        Director.
                    (B) Subrogation.--
                            (i) In general.--If the National Director 
                        makes a payment under subparagraph (A), the 
                        National Director shall be subrogated to the 
                        rights of the recipient of the payment as 
                        specified in the guarantee or related 
                        agreements including, where appropriate, the 
                        authority (notwithstanding any other provision 
                        of law) to--
                                    (I) complete, maintain, operate, 
                                lease, or otherwise dispose of any 
                                property acquired pursuant to such 
                                guarantee or related agreements; or
                                    (II) permit the borrower, pursuant 
                                to an agreement with the National 
                                Director, to continue to pursue the 
                                purposes of the project if the National 
                                Director determines this to be in the 
                                public interest.
                            (ii) Superiority of rights.--The rights of 
                        the National Director, with respect to any 
                        property acquired pursuant to a guarantee or 
                        related agreements, shall be superior to the 
                        rights of any other person with respect to the 
                        property.
                            (iii) Terms and conditions.--A guarantee 
                        agreement shall include such detailed terms and 
                        conditions as the National Director determines 
                        appropriate to--
                                    (I) protect the interests of the 
                                United States in the case of default; 
                                and
                                    (II) have available all the patents 
                                and technology necessary for any person 
                                selected, including the National 
                                Director, to complete and operate the 
                                project.
                    (C) Payment of principal and interest by national 
                director.--With respect to any obligation guaranteed 
                under this section, the National Director may enter 
                into a contract to pay, and pay, holders of the 
                obligation, for and on behalf of the borrower, from 
                funds appropriated for that purpose, the principal and 
                interest payments which become due and payable on the 
                unpaid balance of the obligation if the National 
                Director finds that--
                            (i)(I) the borrower is unable to meet the 
                        payments and is not in default;
                            (II) it is in the public interest to permit 
                        the borrower to continue to pursue the purposes 
                        of the project; and
                            (III) the probable net benefit to the 
                        Federal Government in paying the principal and 
                        interest will be greater than that which would 
                        result in the event of a default;
                            (ii) the amount of the payment that the 
                        National Director is authorized to pay shall be 
                        no greater than the amount of principal and 
                        interest that the borrower is obligated to pay 
                        under the agreement being guaranteed; and
                            (iii) the borrower agrees to reimburse the 
                        National Director for the payment (including 
                        interest) on terms and conditions that are 
                        satisfactory to the National Director.
                    (D) Action by attorney general.--
                            (i) Notification.--If the borrower defaults 
                        on an obligation, the National Director shall 
                        notify the Attorney General of the default.
                            (ii) Recovery.--On notification, the 
                        Attorney General shall take such action as is 
                        appropriate to recover the unpaid principal and 
                        interest due from--
                                    (I) such assets of the defaulting 
                                borrower as are associated with the 
                                obligation; or
                                    (II) any other security pledged to 
                                secure the obligation.
            (4) Fees.--
                    (A) In general.--The National Director shall charge 
                and collect fees for guarantees in amounts the National 
                Director determines are sufficient to cover applicable 
                administrative expenses, not to exceed 1 percent of the 
                amount guaranteed.
                    (B) Availability.--Fees collected under this 
                paragraph shall--
                            (i) be deposited by the National Director 
                        into the Treasury; and
                            (ii) remain available until expended, 
                        subject to such other conditions as are 
                        contained in annual appropriations Acts.
    (c) Credit Requirements.--To receive a loan guaranteed under this 
section a qualified minority business shall--
            (1) be in good standing with regard to the credit of that 
        business in the determination of the National Director;
            (2) have received technical assistance under section 204; 
        and
            (3) submit reports, at such time, in such form, and 
        containing such information as the National Director may 
        require regarding the credit of the business.
    (d) Limits on Guarantee Amounts.--
            (1) Maximum amount of guarantee.--The National Director may 
        not guarantee more than $450,000 of any loan under this 
        section.
            (2) Maximum gross loan amount.--A loan guaranteed under 
        this section may not be for a gross loan amount in excess of 
        $500,000.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the National Director not more than $500,000,000 to 
carry out this section during fiscal years 2014 through 2019.

SEC. 209. REPORTS.

    (a) Report of the Director.--Not later than October 1, 2012, and 
annually thereafter, the National Director of the Minority Business 
Development Agency shall submit to the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report describing the 
activities of the National Director during the preceding year with 
respect to the Program.
    (b) Report of the Secretary of Commerce.--Not later than October 1, 
2012, and annually thereafter, the Secretary of Commerce shall submit 
to the Committee on Commerce, Science, and Transportation of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives a report describing the activities the Secretary 
engaged in during the preceding year to build wealth among historically 
disadvantaged individuals.

SEC. 210. MINORITY BUSINESS DEVELOPMENT AGENCY DATABASE.

    Not later than 90 days after the date of the enactment of this Act, 
the National Director of the Minority Business Development Agency shall 
establish a database to assist prime contractors in identifying 
historically disadvantaged firms for subcontracting.
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