II 

Calendar No. 198 

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, Mrs. GILLIBRAND, Ms. HIRONO, and Ms. 

DUCKWORTH) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

AUGUST 2, 2017 

Reported by Mr. RISCH, with an amendment 

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

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— 


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

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

3 Federal agencies have started favoring longer-term 

4 Federal contracts, including multiple award con5 tracts, over direct individual awards; 

6 (2) these multiple award contracts have grown 

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

8 with the fastest growing multiple award contracts 

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

10 time between 2013 and 2014; 

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

12 Federal contract opportunities are multiple award 

13 contracts; 

14 (4) while Federal agencies may choose to use 

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

16 multiple award contract, the Small Business Admin17 istration only examines socio-economic performance 

18 through the small business procurement scorecard 

19 and does not examine potential opportunities by 

20 those groups; and 

21 (5) Congress and the Department of Justice 

22 have been clear that no individual socio-economic 

23 group shall be given preference over another. 

24 SEC. 2. DEFINITIONS. 

25 In this Act— 


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1 (1) the term ‘‘Administrator’’ means the Ad2 ministrator of the Small Business Administration; 

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

4 means— 

5 (A) HUBZone small business concerns; 

6 (B) small business concerns owned and 

7 controlled by service-disabled veterans; 

8 (C) small business concerns owned and 

9 controlled by women; and 

10 (D) socially and economically disadvan11 taged small business concerns, as defined in 

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

13 (15 U.S.C. 637(a)(4)(A)), receiving assistance 

14 under such section 8(a); and 

15 (3) the terms ‘‘HUBZone small business con16 cern’’, ‘‘small business concern’’, ‘‘small business 

17 concern owned and controlled by service-disabled 

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

19 controlled by women’’ have the meanings given those 

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

21 U.S.C. 632). 

22 SEC. 3. REPORT. 

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

24 date of enactment of this Act, the Administrator shall sub25 mit to the Committee on Small Business and EntrepreVerDate Sep 11 2014 22:15 Aug 02, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1038.RS S1038

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1 neurship of the Senate and the Committee on Small Busi2 ness of the House of Representatives a report that in3 cludes— 

4 (1) a determination as to whether small busi5 ness concerns and each category of covered small 

6 business concerns described in subparagraphs (A) 

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

8 significant portion of the Federal market on multiple 

9 award contracts, including— 

10 (A) whether awards are being reserved for 

11 one or more of those categories; and 

12 (B) whether each such category is being 

13 given the opportunity to perform on multiple 

14 award contracts; 

15 (2) a determination as to whether performance 

16 requirements for multiple award contracts, as in ef17 fect on the day before the date of enactment of this 

18 Act, are feasible and appropriate for small business 

19 concerns; and 

20 (3) any additional information as the Adminis21 trator may determine necessary. 

22 (b) REQUIREMENT.—In making the determinations 

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

24 information from multiple award contracts— 


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1 (1) with varied assigned North American Indus2 try Classification System codes; and 

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

4 Federal agencies. 

5 SECTION 1. FINDINGS. 

6 Congress finds that— 

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

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

9 Federal agencies have started favoring longer-term 

10 Federal contracts, including multiple award con11 tracts, over direct individual awards; 

12 (2) these multiple award contracts have grown to 

13 more than one-fifth of Federal contract spending, with 

14 the fastest growing multiple award contracts sur15 passing $100,000,000 in obligations for the first time 

16 between 2013 and 2014; 

17 (3) in fiscal year 2017, 17 of the 20 largest Fed18 eral contract opportunities are multiple award con19 tracts; 

20 (4) while Federal agencies may choose to use any 

21 or all of the various socio-economic groups on a mul22 tiple award contract, the Small Business Administra23 tion only examines socio-economic performance 

24 through the small business procurement scorecard and 


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1 does not examine potential opportunities by those 

2 groups; and 

3 (5) Congress and the Department of Justice have 

4 been clear that no individual socio-economic group 

5 shall be given preference over another. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 

8 (1) the term ‘‘Administrator’’ means the Admin9 istrator of the Small Business Administration; 

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

11 means— 

12 (A) HUBZone small business concerns; 

13 (B) small business concerns owned and con14 trolled by service-disabled veterans; 

15 (C) small business concerns owned and con16 trolled by women; and 

17 (D) socially and economically disadvan18 taged small business concerns, as defined in sec19 tion 8(a)(4)(A) of the Small Business Act (15 

20 U.S.C. 637(a)(4)(A)), receiving assistance under 

21 such section 8(a); and 

22 (3) the terms ‘‘HUBZone small business con23 cern’’, ‘‘small business concern’’, ‘‘small business con24 cern owned and controlled by service-disabled vet25 erans’’, and ‘‘small business concern owned and conVerDate Sep 11 2014 22:15 Aug 02, 2017 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\S1038.RS S1038

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1 trolled by women’’ have the meanings given those 

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

3 U.S.C. 632). 

4 SEC. 3. REPORT. 

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

6 date of enactment of this Act, the Administrator shall sub7 mit to the Committee on Small Business and Entrepreneur8 ship of the Senate and the Committee on Small Business 

9 of the House of Representatives a report that includes— 

10 (1) a determination as to whether small business 

11 concerns and each category of covered small business 

12 concerns described in subparagraphs (A) through (D) 

13 of section 2(2) are being utilized in a significant por14 tion of the Federal market on multiple award con15 tracts, including— 

16 (A) whether awards are being reserved for 1 

17 or more of those categories; and 

18 (B) whether each such category is being 

19 given the opportunity to perform on multiple 

20 award contracts; 

21 (2) a determination as to whether performance 

22 requirements for multiple award contracts, as in ef23 fect on the day before the date of enactment of this 

24 Act, are feasible and appropriate for small business 

25 concerns; and 


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1 (3) any additional information as the Adminis2 trator may determine necessary. 

3 (b) REQUIREMENT.—In making the determinations re4 quired under subsection (a), the Administrator shall use in5 formation from multiple award contracts— 

6 (1) with varied assigned North American Indus7 try Classification System codes; and 

8 (2) that were awarded by not less than 8 Federal 

9 agencies. 


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Calendar No. 198 

115TH CONGRESS 

1ST SESSION S. 1038 

A BILL 

To require the Administrator of the Small Business 

certain Federal contracts. the utilization of small businesses with respect to Administration to submit to Congress a report on 

AUGUST 2, 2017 

Reported with an amendment 


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