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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 111 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 111

  To amend the Small Business Act to make modifications to the small 
   business and capital ownership development program, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

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

_______________________________________________________________________

                                 A BILL

 
  To amend the Small Business Act to make modifications to the small 
   business and capital ownership development program, 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 ``Minority Enterprise Development Act 
of 1995''.

 TITLE I--AMENDMENTS TO MINORITY SMALL BUSINESS AND CAPITAL OWNERSHIP 
                          DEVELOPMENT PROGRAM

SEC. 101. MINORITY ENTERPRISE DEVELOPMENT PROGRAM.

    (a) Establishment.--Section 7(j)(10) of the Small Business Act (15 
U.S.C. 636(j)(10)) is amended--
            (1) by striking ``(10) There is established'' and all that 
        follows before subparagraph (A) and inserting the following:
    ``(10)(A) There is established within the Administration a Minority 
Enterprise Development Program (hereinafter in this subsection referred 
to as the `Program'), which shall be administered by the Associate 
Administrator for Minority Enterprise Development in accordance with 
this paragraph and section 8(a).'';
            (2) by striking subparagraph (B); and
            (3) by striking ``(A) The Program'' and inserting ``(B) The 
        Program''.
    (b) Assistance Under the Program.--Section 7(j)(10)(B)(i) of the 
Small Business Act, as redesignated by subsection (a) of this section, 
is amended by inserting ``Phase III of'' after ``small business 
concerns participating in''.
    (c) Conforming Amendments.--The Small Business Act (15 U.S.C. 601 
et seq.) is amended by striking ``Minority Small Business and Capital 
Ownership Development'' and inserting ``Minority Enterprise 
Development'' each place it appears in sections 7(j)(10)(G), 
7(j)(11)(A), 7(j)(11)(E), 7(j)(11)(H), 7(j)(11)(I), 
8(a)(18)(C)(ii)(III), and 8(a)(20)(B).

SEC. 102. GRANDFATHERING PROVISION.

    Section 7(j)(10(C) of the Small Business Act (15 U.S.C. 
636(j)(10)(C)) is amended to read as follows:
            ``(C) A small business concern participating in any program 
        or activity conducted under the authority of this paragraph or 
        eligible for the award of contracts pursuant to section 8(a) on 
        the date of the enactment of the Minority Enterprise 
        Development Act of 1995 shall be permitted continued 
        participation in Phase III of the Program for the remaining 
        period of its original program term. Any such firm that has not 
        been awarded a contract pursuant to section 8(a) may elect to 
        suspend its participation in Phase III in order to participate 
        in Phase II. Upon the award of a contract pursuant to section 
        8(a) or the completion of a development agreement, the 
        suspension of time for participation in Phase III shall 
        cease.''.

SEC. 103. BUSINESS PLAN.

    Section 7(j)(10)(D) of the Small Business Act (15 U.S.C. 
636(j)(10)(D)) is amended--
            (1) in clause (i), by inserting ``Phase III'' after 
        ``Promptly after'';
            (2) in clause (ii), by striking ``The plans'' in the matter 
        preceding subclause (I) and inserting ``The business plans'';
            (3) by amending clause (iii)(IV) to read as follows:
                            ``(IV) A transition management plan 
                        outlining specific steps to enhance the 
                        prospect of profitable business operations 
                        after the expiration of the 9-year Phase III 
                        program term specified in paragraph (15).'';
            (4) in clause (iii)--
                    (A) in the first sentence by striking ``Each 
                Program Participant'' and inserting ``Each Phase III 
                Program Participant''; and
                    (B) in the forth sentence by striking ``the 
                transitional stage'' and inserting ``Phase III''; and
            (5) in clause (iv), by striking ``Each Program 
        Participant'' and inserting ``Each Phase III Program 
        Participant''.

SEC. 104. USE OF CONTRACT SUPPORT LEVELS.

    Section 7(j)(10)(D) of the Small Business Act (15 U.S.C. 
636(j)(10)(D)) is further amended by adding at the end the following 
new clause:
    ``(v) The forecasts of overall business activity contained in the 
business plan of a Program Participant or the estimate contained in the 
section 8(a) contract support level of such firm shall not be used by 
the Administration to make a determination that such firm is ineligible 
for the award of a contract to be awarded pursuant to section 8(a).''.

SEC. 105. PHASE III REQUIREMENTS.

    Section 7(j)(10)(I) of the Small Business Act (15 U.S.C. 
636(j)(10)(I)) is amended--
            (1) in clause (i), by striking ``During the developmental 
        stage of its participation in the Program,'' and inserting 
        ``During its first 4 years of participation in Phase III of the 
        Program,'';
            (2) in clause (ii), by striking ``During the transitional 
        stage of the Program'' and inserting ``During years 5 through 9 
        of its participation in Phase III of the Program,'';
            (3) by amending clause (iii)(I) to read as follows:
                    ``(I) establish business activity targets 
                applicable to Program Participants during the 5th year 
                and each succeeding year of the concern's participation 
                in Phase III which reflect a reasonably consistent 
                increase in contracts awarded other than pursuant to 
                section 8(a) and are expressed as a percentage of total 
                sales corresponding to the concern's fiscal year;''; 
                and
            (4) in clause (iii)(IV) by inserting ``in Phase III of the 
        Program'' after ``performance''.

SEC. 106. IMPROVED STATUS PROTEST SYSTEM.

    Section 7(j)(10)(J) of the Small Business Act (15 U.S.C. 
636(j)(10)(J)) is amended by striking clause (ii) and inserting the 
following new clauses:
            ``(ii) A protest may be brought regarding a self-
        certification by a business concern regarding its status as a 
        small business concern owned and controlled by socially and 
        economically disadvantaged individuals by--
                    ``(I) another person with a direct economic 
                interest in the award of the contract or subcontract 
                under which such business has allegedly made the false 
                certification regarding its status as a small business 
                concern owned and controlled by socially and 
                economically disadvantaged individuals;
                    ``(II) a prime contractor receiving specific and 
                credible information that an actual or prospective 
                subcontractor or supplier has falsely certified its 
                status as a small business concern owned and controlled 
                by socially and economically disadvantaged individuals;
                    ``(III) a contracting officer receiving a self-
                certification regarding an actual or prospective 
                contractor's status, which such officer reasonably 
                believes to be false; or
                    ``(IV) the Associate Administrator for Minority 
                Enterprise Development.
            ``(iii) The Office of Hearings and Appeals shall hear 
        appeals regarding the status of a concern as a small business 
        concern owned and controlled by socially and economically 
        disadvantaged individuals for purposes of any program or 
        activity conducted under section 8(d) or any other Federal law 
        that refers to such section for a definition of program 
        eligibility.
            ``(iv) A decision issued pursuant to clause (iii) shall--
                    ``(I) be made available to all parties to the 
                proceeding;
                    ``(II) be published in full text; and
                    ``(III) include findings of fact and conclusions of 
                law, with specific reasons supporting such findings and 
                conclusions, on each material issue of fact and law of 
                decisional significance regarding the disposition of 
                the protest.
            ``(v) A decision issued pursuant to clause (iii) shall be 
        considered a final agency action, and shall be subject to 
        judicial review under section 553 of title 5, United States 
        Code.
            ``(vi) If a firm engages in a pattern of misrepresentations 
        regarding the status of the firm in violation of section 
        16(d)(1), the Administration or the aggrieved executive agency 
        shall initiate an action to impose an appropriate penalty under 
        section 16(d)(2).''.

SEC. 107. CONTINUED PROGRAM PARTICIPATION.

    Section 7(j)(11)(D) of the Small Business Act (15 U.S.C. 
636(j)(11)(D)) is amended to read as follows:
    ``(D)(i) A Program Participant shall remain eligible for 
participation in the Program after a transfer of an ownership interest 
in the firm if ownership and control (as required by section 8(a)(4)) 
is retained by the socially and economically disadvantaged individuals 
upon whom Program eligibility is based.
    ``(ii) A Program Participant shall remain eligible for 
participation in the Program after transfer of ownership and control 
(as required by section 8(a)(4)) to individuals who are determined to 
be socially and economically disadvantaged pursuant to section 8(a). 
Unless graduated or terminated, the Program Participant shall be 
eligible for a period of continued Program participation not to exceed 
the period described in paragraph (15).
    ``(iii) A Program Participant that is a tribally owned corporation 
may remain eligible for participation in the Program with other than a 
Native American as the firm's chief executive officer (or chief 
operating officer), if the governing body of the Indian tribe certifies 
to the Administration that it was unable to hire a qualified Native 
American after conducting a national recruitment for such an 
individual.''.

SEC. 108. PROGRAM ADMISSION.

    Section 7(j)(11)(F) of the Small Business Act (15 U.S.C. 
636(j)(11)(F)) is amended to read as follows:
    ``(F) Subject to the provisions of section 8(a)(9), the Division 
shall--
            ``(i) make recommendations on requests for reconsideration 
        of denied applications for entry into Phase III of the Program 
        to the Associate Administrator for Minority Enterprise 
        Development;
            ``(ii) make requests for the initiation of suspension, 
        termination, or graduation proceedings, as appropriate, to the 
        Associate Administrator for Minority Enterprise Development; 
        and
            ``(iii) implement such policy directives as may be issued 
        by the Associate Administrator for Minority Enterprise 
        Development pursuant to subparagraph (I) regarding, among other 
        things, the geographic distribution of concerns to be admitted 
        into the Program and the industrial makeup of such concerns.''.

SEC. 109. PROGRAM PHASES.

    (a) Establishment.--Section 7(j)(12) of the Small Business Act (15 
U.S.C. 636(j)(12)) is amended to read as follows:
    ``(12)(A) The Administration shall segment the Program into 3 
phases: a startup phase, a developmental phase, and a section 8(a) 
contracting phase, which shall be known as Phase I, Phase II, and Phase 
III, respectively.
    ``(B) The startup phase of program participation shall be designed 
to assist newly formed or forming concerns in overcoming their economic 
disadvantage by providing such assistance as may be necessary and 
appropriate to achieve a business foundation adequate for future 
growth.
    ``(C) The developmental stage of program participation shall be 
designed to assist the concern in its effort to overcome its economic 
disadvantage by providing such assistance as may be necessary and 
appropriate to access its markets and to strengthen its financial and 
managerial skills.
    ``(D) The section 8(a) contracting stage of program participation 
shall be designed to overcome, insofar as practicable, the remaining 
elements of economic disadvantage, and to further develop the concern 
towards economic viability.''.
    (b) Maximum Period of Participation in Each Phase.--Section 
7(j)(15) of the Small Business Act (15 U.S.C. 636(j)(15)) is amended to 
read as follows:
    ``(15) An eligible small business concern may receive developmental 
assistance under the Program for the following periods as measured from 
the date of entry into the applicable phase of the Program--
            ``(A) not more than 2 years may be spent in Phase I of 
        program participation;
            ``(B) not more than 3 years may be spent in Phase II of 
        program participation; and
            ``(C) not more than 9 years may be spent in Phase III of 
        program participation.''.

SEC. 110. DEVELOPMENTAL ASSISTANCE AUTHORIZED FOR PROGRAM PARTICIPANTS.

    Section 7(j)(13) of the Small Business Act (15 U.S.C. 636(j)) is 
amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``during the stages of program participation specified in 
        paragraph 12'' and inserting ``during its term of participation 
        in the Program''; and
            (2) by striking subparagraph (J).

SEC. 111. TEST PROGRAM FOR USE OF SURETY BOND WAIVERS.

    Section 7(j)(13)(D) of the Small Business Act (15 U.S.C. 
636(j)(13)(D)) is amended--
            (1) by striking clauses (i) through (iii);
            (2) by striking ``(D) A maximum'' and inserting ``(D)(i) A 
        maximum'';
            (3) by striking ``, except that, such exemptions may be 
        granted under this subparagraph only if--'' and inserting a 
        period; and
            (4) by adding at the end the following new clauses:
                    ``(ii) The agency with contracting authority may, 
                upon the request of the Program Participant, grant an 
                exemption pursuant to clause (i), if--
                            ``(I) the Program Participant provides 
                        certification, in the form prescribed by the 
                        Administration, that the firm was unable to 
                        obtain the requisite bonding from corporate 
                        surety bonding firms;
                            ``(II) the Program Participant has provided 
                        for the protection of persons furnishing 
                        materials or labor under the contract by 
                        arranging for--
                                    ``(aa) the direct disbursement of 
                                funds owed to such persons by the 
                                procuring agency or through an escrow 
                                account provided by any bank the 
                                deposits of which are insured by the 
                                United States Government; or
                                    ``(bb) irrevocable letters of 
                                credit (or other alternatives to surety 
                                bonding acceptable to the procuring 
                                agency); and
                            ``(III) the award value of the contract for 
                        which the exemption is being sought does not 
                        exceed $1,000,000.
                    ``(iii) The authority to grant an exemption under 
                clause (ii) shall cease to be effective on September 
                30, 1997.''.

SEC. 112. STRATEGIC ALLIANCES.

    Section 7(j)(14) of the Small Business Act (15 U.S.C. 636(j)) is 
amended to read as follows:
    ``(14)(A) Small business concerns that have completed the 9-year 
Phase III program term specified in paragraph (15) (in this paragraph 
referred to as a ``Program Graduate'') shall be authorized to assist 
Phase III Program Participants, determined by the Administration to be 
eligible for such assistance, to develop within the Program.
    ``(B) A Program Graduate may provide assistance to a Phase III 
Program Participant under this paragraph--
            ``(i) by providing, among other things, managerial 
        assistance, technical assistance, and financial support; and
            ``(ii) by entering into subcontracts for the performance of 
        specific contracts awarded under section 8(a).
    ``(C) In determining the eligibility of a small business concern to 
receive assistance or contracts under this subsection or section 8(a), 
the Administration shall not take into account any assistance received 
under this paragraph from a Program Graduate.''.

SEC. 113. BUSINESS LOANS.

    Section 7(a)(20)(B)(ii) of the Small Business Act (15 U.S.C. 
636(a)(20)(B)(ii)) is amended by striking ``be not less than 85 per 
centum'' and inserting ``not exceed 95 percent of the balance of the 
financing outstanding at the time of disbursement where the purpose of 
the financing is to finance government contracts, and shall not exceed 
90 percent of the balance of the financing outstanding at the time of 
disbursement where the purpose of the financing is for general working 
capital as a line of credit''.

              TITLE II--AMENDMENTS TO CONTRACTING PROGRAM

SEC. 201. CONTRACT AWARD PROCEDURES.

    Section 8(a)(1) of the Small Business Act (15 U.S.C. 637(a)(1)) is 
amended by striking ``(a)(1) It shall be the duty'' and all that 
follows through subparagraph (D) and inserting the following:
    ``(a)(1)(A) The Administration shall seek the establishment of 
contract goals under section 15(g) which will assure that contracts 
sufficient to satisfy the contract support levels identified by 
participants in the Minority Enterprise Development Program established 
by section 7(j)(10) are designated by the various Federal agencies for 
award pursuant to this subsection.
    ``(B) Except as provided in subparagraph (D), the Administration 
may enter into prime contracts with procuring agencies and subcontract 
performance of such contracts to qualified Phase III Program 
Participants on a sole-source basis or may delegate to procuring 
agencies under such conditions as the Administration considers 
appropriate the authority to enter into sole-source contracts with 
Phase III Program Participants. In any case in which the Administration 
accepts a requirement for potential award pursuant to this subsection 
and determines that a particular Phase III Program Participant is 
eligible for and responsible to perform such contract, the procuring 
agency contracting officer shall be authorized in the officer's 
discretion to let the procurement contract upon such terms and 
conditions as may be agreed upon between the procuring agency 
contracting officer and the Program Participant.
    ``(C)(i) The Administration shall determine the eligibility of the 
Program Participant to receive the award in accordance with the 
eligibility criteria listed in paragraph (16).
    ``(ii) With respect to an individual contracting opportunity, the 
Administration may provide, upon a request by the Program Participant, 
assistance with respect to--
            ``(I) the negotiation of the terms and conditions of the 
        award; and
            ``(II) the resolution of controversies arising from the 
        performance of the contract prior to such contract performance 
        controversies becoming formal contract disputes within the 
        meaning of the Contract Disputes Act of 1978.
    ``(iii) In the event of an adverse decision by an agency regarding 
a contracting opportunity, the Administrator may--
            ``(I) not later than 5 days after receiving notice of such 
        adverse decision, file a notice of intent to appeal with the 
        head of the agency; and
            ``(II) not later than 15 days after receiving such notice, 
        file an appeal with the head of the agency requesting 
        reconsideration of the adverse decision.
    ``(iv) Upon receipt of the notice of intent to file an appeal under 
clause (iii)(I), further action regarding award of the contract shall 
be suspended, unless the head of the agency makes a written 
determination, supported by specific findings, that urgent and 
compelling circumstances that significantly affect the interests of the 
United States will not permit reconsideration of the adverse decision.
    ``(v) If the head of the agency sustains the adverse decision upon 
reconsideration, the decision by the head of the agency shall be in 
writing and shall be supported by specific findings.
    ``(vi) An adverse decision regarding the responsibility of a 
Program Participant in competitive awards under this subsection shall 
be decided pursuant to subsection (b)(7).
    ``(vii) For the purposes of this subparagraph, an adverse decision 
by a contracting officer includes--
            ``(I) failing to respond, within 15 days or such additional 
        time as may be agreed to by the Administration, to a request 
        from the Administration to make a specific contracting 
        opportunity available for award pursuant to this subsection;
            ``(II) declining to make available for award under this 
        subsection a contracting opportunity (or class of contracting 
        opportunities) or failing to support such a determination with 
        specific findings; and
            ``(III) failing to reach agreement with the Program 
        Participant with respect to the terms and conditions of a 
        contract selected for award under this subsection.
    ``(D) A contract opportunity offered for award pursuant to this 
subsection may be awarded as a sole-source contract if the anticipated 
award price of the contract (including options) will not exceed 
$10,000,000 in the case of a contract opportunity assigned a standard 
industrial classification code for manufacturing and $7,000,000 
(including options) in the case of all other contract opportunities.''.

SEC. 202. COMPETITION REQUIREMENTS.

     Section 8(a)(1)(D) of the Small Business Act (15 U.S.C. 
637(a)(1)(D)) is amended--
            (1) by redesignating clause (ii) as clause (iii); and
            (2) by inserting after clause (i) the following new clause:
    ``(ii) Whenever a requirements-type contract (including a task 
order contract, indefinite quantity contract, or indefinite delivery 
contract) is to be awarded, the thresholds for competition required 
under clause (i)(II) shall be calculated on the basis of the estimated 
total value of the contract.''.

SEC. 203. TIMELY DETERMINATION OF ELIGIBILITY FOR CONTRACT AWARD.

    (a) In General.--Section 8(a)(16) of the Small Business Act (15 
U.S.C. 637(a)(16)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (E); 
        and
            (2) by striking subparagraph (A) and inserting the 
        following:
    ``(A) Upon receipt of notification that a Federal agency intends to 
consider a Program Participant for award of a contract pursuant to this 
subsection (on a competitive or noncompetitive basis), the 
Administration shall promptly notify the agency regarding the 
eligibility of the Program Participant for award of the contract, and 
shall identify all matters that could reasonably be expected to render 
the Program Participant ineligible at the time of the contract award.
    ``(B) A Program Participant may be found to be ineligible for award 
of the contract pursuant to this subsection, if--
            ``(i) the Program Participant is not in compliance with its 
        competitive business activity targets established pursuant to 
        section 7(j)(10)(I); or
            ``(ii) the Program Participant has failed to make the 
        submissions required under paragraph (6)(B).
    ``(C) A small business concern owned and controlled by socially and 
economically disadvantaged individuals that has completed its Program 
Participation term pursuant to section 7(j)(15) shall be eligible for 
award if--
            ``(i) a requirement has been offered to and accepted by the 
        Administration for the Program; and
            ``(ii)(I) in the case of a contract to be competitively 
        awarded, the prospective contract recipient was a Program 
        Participant eligible for award of the contract on the date 
        specified for receipt of offers, and such firm had timely 
        submitted an offer (including price); or
            ``(II) in the case of a contract to be noncompetitively 
        awarded, the prospective contract recipient was a Program 
        Participant eligible for award of the contract on the date 
        specified by the agency contracting officer for the submission 
        of an offer (including price).
    ``(D) If the Administration determines that a Program Participant 
is ineligible for consideration for award of a contract under 
subparagraph (B) or (C), the determination shall be supported by 
specific findings. The determination (and supporting findings) shall be 
furnished to the Program Participant and to the contracting officer for 
the agency providing the contracting opportunity.''.
    (b) Conforming Amendments.--Section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)) is amended--
            (1) in paragraph (3)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
    ``(A) [Reserved].''; and
                    (B) by striking subparagraph (D) and inserting the 
                following:
    ``(D) Subsequent to the award of a contract under this subsection, 
if requested by the recipient of the contract, the Administration shall 
not publicly disclose the agency's estimate of the fair market 
price.'';
            (2) in paragraph (7), by striking subparagraph (A) and 
        inserting the following:
    ``(A) [Reserved].'';
            (3) in paragraph (12)(A), by striking ``eligible to receive 
        subcontracts'' and inserting ``eligible for contract awards''; 
        and
            (4) in paragraph (9)(B)--
                    (A) in clause (iii), by striking ``and'';
                    (B) by redesignating clause (iv) as clause (v); and
                    (C) by inserting after clause (iii) the following 
                new clause:
            ``(iv) a determination of ineligibility for award of a 
        contract pursuant to paragraph (16)(B); and''.

SEC. 204. CONTINUED CONTRACT PERFORMANCE.

    Section 8(a)(21) of the Small Business Act (15 U.S.C. 637(a)(21)) 
is amended--
            (1) in subparagraph (B), by striking ``The Administrator 
        may, on a nondelegable basis, waive the requirements of 
        subparagraph (A) only if one of the following conditions 
        exist:'' and inserting ``The requirements of subparagraph (A) 
        may be waived under any of the following circumstances:''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
    ``(C)(i) Except as provided in clause (ii), a request for a waiver 
pursuant to subparagraph (B) shall be submitted prior to the actual 
relinquishment of ownership or control.
    ``(ii) Under the circumstances described in subparagraph (B)(iii), 
the waiver request shall be made as soon as practicable after the 
incapacity or death occurs.''.

SEC. 205. TRANSITION COMPETITIONS FOR PROGRAM GRADUATES.

    Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is 
amended by adding at the end the following new paragraph:
    ``(22)(A) A small business concern owned and controlled by socially 
and economically disadvantaged individuals, which has graduated from 
the Minority Enterprise Development Program, may participate in the 
competition for a contracting opportunity to be awarded pursuant to 
this subsection if--
            ``(i) the firm is currently performing satisfactorily a 
        contract to furnish the same (or substantially similar) 
        products or services under a contract competitively awarded 
        pursuant to paragraph (1);
            ``(ii) closing date for receipt of proposals for the 
        contracting opportunity is a date after the date on which the 
        firm will no longer be eligible for award of contracts pursuant 
        to paragraph (1);
            ``(iii) the firm is otherwise eligible to compete for the 
        contract;
            ``(iv) the Associate Administrator for Minority Enterprise 
        Development grants the firm's request to participate in the 
        competition otherwise restricted to Program Participants after 
        making a determination that denial of the firm's request would 
        deprive such firm of 25 percent or more of its revenue; and
            ``(v) the firm was a Program Participant on January 3, 
        1995.
    ``(B) A Program Graduate described in subparagraph (A) shall be 
ineligible for award of a contract resulting from a competition 
conducted pursuant to paragraph (1), unless such firm furnishes (and 
the contracting officer accepts) a plan to subcontract not less than 40 
percent of the award value of the contract to one or more Program 
Participants (of which 20 percent shall be awarded to one or more 
Program Participants who are emerging small business concerns, unless 
such awards are impracticable after consultation with the Associate 
Administrator for the Minority Enterprise Development Program).
    ``(C) This subparagraph shall take effect on January 4, 1995, and 
shall remain in effect until January 3, 1998.''.

SEC. 206. PROCUREMENT PROCEDURES.

    Section 8(c) of the Small Business Act (15 U.S.C. 637(c)) is 
amended to read as follows:
    ``(c) Procurement Procedures.--
            ``(1) In general.--For the purpose of attaining an agency's 
        goal for the participation of small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals pursuant to section 15(g)(1), the head of a 
        participating executive agency may enter into contracts using--
                    ``(A) less than full and open competition, by 
                restricting the competition for such awards to small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals as defined in 
                subsection (d)(3)(C); and
                    ``(B) a price evaluation preference, of not to 
                exceed 10 percent, when evaluating an offer received 
                from such a small business concern as the result of an 
                unrestricted solicitation.
            ``(2) Definition.--For the purposes of this subsection, the 
        term `participating executive agency' means a Federal agency, 
        as defined in section 3(b), in the executive branch of the 
        Federal Government, other than the Department of Defense.''.
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