I 

110TH CONGRESS 

1ST SESSION H. R. 1935 

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 

APRIL 18, 2007 

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 

9 shall include in the contract a clause providing for 

10 the withholding of not less than (i) $5,000 in the 

11 case of a contract in the amount of $100,000 or 

12 less, (ii) 3 percent of the contract amount in the 

13 case of a contract in an amount of more than 

14 $100,000 and less than $5,000,000, and (iii) 5 per15 cent of the contract amount in the case of a contract 

16 in an amount of $5,000,000 or more, if the con17 tractor does not achieve the percentage goal for the 

18 utilization of small business concerns owned and 

19 controlled by socially and economically disadvan20 taged individuals as set forth in the subcontracting 

21 plan. 

22 ‘‘(B) The Federal agency awarding the contract 

23 shall require the contractor to provide written jus24 tification to the agency whenever the contractor, in 

25 performing the contract, does not enter into a sub26 contract with, or substitutes another subcontractor 


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1 for, a specific small business concern identified in 

2 the subcontracting plan. 

3 ‘‘(13) The Administration shall establish a telephone 

4 line or other electronic means of communication through 

5 which any small business concern identified in a subcon6 tracting plan by an offeror or bidder may communicate 

7 to the Administration any concerns regarding major devi8 ations by prime contractors from the use of small business 

9 concerns as subcontractors under the prime contract as 

10 described in subcontracting plans.’’. 

11 SEC. 3. REQUIREMENT TO CONSIDER USE OF SMALL BUSI12 NESS CONCERNS OWNED AND CONTROLLED 

13 BY SOCIALLY AND ECONOMICALLY DIS14 ADVANTAGED INDIVIDUALS WHEN CONSID15 ERING PAST COMPLIANCE WITH SUBCON16 TRACTING PLANS. 

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

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

19 in the second sentence by inserting ‘‘, especially compli20 ance with the goal set forth in such plans for the utiliza21 tion of small business concerns owned and controlled by 

22 socially and economically disadvantaged individuals,’’ after 

23 ‘‘other such subcontracting plans’’. 

Æ 


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