II 

115TH CONGRESS 

1ST SESSION S. 1038 

To require the Administrator of the Small Business Administration to submit 

to Congress a report on the utilization of small businesses with respect 

to certain Federal contracts. 

IN THE SENATE OF THE UNITED STATES 

MAY 4, 2017 

Mrs. ERNST (for herself and Mrs. GILLIBRAND) introduced the following bill; 

which was read twice and referred to the Committee on Small Business 

and Entrepreneurship 

A BILL 

To require the Administrator of the Small Business Administration to submit to Congress a report on the utilization 

of small businesses with respect to certain Federal contracts. 

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

3 SECTION 1. FINDINGS. 

4 Congress finds that— 

5 (1) since the passage of the Budget Control Act 

6 of 2011 (Public Law 112–25; 125 Stat. 240), many 

7 Federal agencies have started favoring longer-term 


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1 Federal contracts, including multiple award con2 tracts, over direct individual awards; 

3 (2) these multiple award contracts have grown 

4 to more than one-fifth of Federal contract spending, 

5 with the fastest growing multiple award contracts 

6 surpassing $100,000,000 in obligations for the first 

7 time between 2013 and 2014; 

8 (3) in fiscal year 2017, 17 of the 20 largest 

9 Federal contract opportunities are multiple award 

10 contracts; 

11 (4) while Federal agencies may choose to use 

12 any or all of the various socio-economic groups on a 

13 multiple award contract, the Small Business Admin14 istration only examines socio-economic performance 

15 through the small business procurement scorecard 

16 and does not examine potential opportunities by 

17 those groups; and 

18 (5) Congress and the Department of Justice 

19 have been clear that no individual socio-economic 

20 group shall be given preference over another. 

21 SEC. 2. DEFINITIONS. 

22 In this Act— 

23 (1) the term ‘‘Administrator’’ means the Ad24 ministrator of the Small Business Administration; 


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1 (2) the term ‘‘covered small business concerns’’ 

2 means— 

3 (A) HUBZone small business concerns; 

4 (B) small business concerns owned and 

5 controlled by service-disabled veterans; 

6 (C) small business concerns owned and 

7 controlled by women; and 

8 (D) socially and economically disadvan9 taged small business concerns, as defined in 

10 section 8(a)(4)(A) of the Small Business Act 

11 (15 U.S.C. 637(a)(4)(A)), receiving assistance 

12 under such section 8(a); and 

13 (3) the terms ‘‘HUBZone small business con14 cern’’, ‘‘small business concern’’, ‘‘small business 

15 concern owned and controlled by service-disabled 

16 veterans’’, and ‘‘small business concern owned and 

17 controlled by women’’ have the meanings given those 

18 terms in section 3 of the Small Business Act (15 

19 U.S.C. 632). 

20 SEC. 3. REPORT. 

21 (a) IN GENERAL.—Not later than 180 days after the 

22 date of enactment of this Act, the Administrator shall sub23 mit to the Committee on Small Business and Entrepre24 neurship of the Senate and the Committee on Small BusiVerDate Sep 11 2014 18:30 May 10, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1038.IS S1038

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1 ness of the House of Representatives a report that in2 cludes— 

3 (1) a determination as to whether small busi4 ness concerns and each category of covered small 

5 business concerns described in subparagraphs (A) 

6 through (D) of section 3(2) are being utilized in a 

7 significant portion of the Federal market on multiple 

8 award contracts, including— 

9 (A) whether awards are being reserved for 

10 one or more of those categories; and 

11 (B) whether each such category is being 

12 given the opportunity to perform on multiple 

13 award contracts; 

14 (2) a determination as to whether performance 

15 requirements for multiple award contracts, as in ef16 fect on the day before the date of enactment of this 

17 Act, are feasible and appropriate for small business 

18 concerns; and 

19 (3) any additional information as the Adminis20 trator may determine necessary. 

21 (b) REQUIREMENT.—In making the determinations 

22 required under subsection (a), the Administrator shall use 

23 information from multiple award contracts— 

24 (1) with varied assigned North American Indus25 try Classification System codes; and 


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1 (2) that were awarded by not less than eight 

2 Federal agencies. 

Æ 


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