IIB 

110TH CONGRESS 

1ST SESSION H. R. 1873 

IN THE SENATE OF THE UNITED STATES 

MAY 11, 2007 

Received; read twice and referred to the Committee on Small Business and 

Entrepreneurship 

AN ACT 

To reauthorize the programs and activities of the Small 

Business Administration relating to procurement, 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Small Business Fairness in Contracting Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Regulations. 

TITLE I—CONTRACT BUNDLING 

Sec. 101. Definitions of bundling of contract requirements and related terms. 

Sec. 102. Justification. 

Sec. 103. Appeals. 

Sec. 104. Review. 

TITLE II—INCREASING THE NUMBER OF SMALL BUSINESS 

CONTRACTS AND SUBCONTRACTS 

Sec. 201. Small business goal. 

Sec. 202. Include overseas contracts in small business goal. 

Sec. 203. Annual goal negotiation. 

Sec. 204. Usage of small companies in goal achievement. 

Sec. 205. Annual plan for each agency explaining how agency will meet small 

business goals. 

Sec. 206. Making small businesses the first choice. 

Sec. 207. Uniform metric for subcontracting achievements. 

Sec. 208. Subcontracting database. 

Sec. 209. National database. 

Sec. 210. Review of subcontracting plans. 

Sec. 211. Agency obligation for fulfilling contracting goals. 

Sec. 212. Appropriate limits on value of sole source contracts. 

Sec. 213. Small business goals for green small business concerns. 

Sec. 214. Study on providing financial incentives to contractors that meet minority and disadvantaged business enterprise goals. 

TITLE III—PROTECTION OF TAXPAYERS FROM FRAUD 

Sec. 301. Small business size protest notification. 

Sec. 302. Review of national registry. 

Sec. 303. Recertification of compliance with size standards and registration with 

Central Contractor Registry. 

TITLE IV—AUTHORIZATION OF APPROPRIATIONS 

Sec. 401. Authorization of appropriations. 

6 SEC. 2. REGULATIONS. 

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

8 date of the enactment of this Act— 


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1 (1) the Administrator of the Small Business 

2 Administration shall promulgate regulations to im3 plement this Act and the amendments made by this 

4 Act; and 

5 (2) the Federal Acquisition Regulation shall be 

6 revised to implement this Act and the amendments 

7 made by this Act. 

8 (b) NOTICE AND COMMENT.—The regulations re9 quired by subsection (a) shall be promulgated after oppor10 tunity for notice and comment as required by section 

11 553(b) of title 5, United States Code. 

12 TITLE I—CONTRACT BUNDLING 

13 SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT RE14 QUIREMENTS AND RELATED TERMS. 

15 Section 3 of the Small Business Act (15 U.S.C. 632) 

16 is amended by amending subsection (o) to read as follows: 

17 ‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE18 QUIREMENTS AND RELATED TERMS.—For purposes of 

19 this Act: 

20 ‘‘(1) BUNDLED CONTRACT.— 

21 ‘‘(A) IN GENERAL.—The term ‘bundled 

22 contract’ means a contract or order that is en23 tered into to meet procurement requirements 

24 that are consolidated in a bundling of contract 

25 requirements, without regard to its designation 


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1 by the procuring agency or whether a study of 

2 the effects of the solicitation on civilian or mili3 tary personnel has been made. 

4 ‘‘(B) EXCEPTIONS.—The term does not in5 clude— 

6 ‘‘(i) a contract or order with an aggre7 gate dollar value below the dollar threshold 

8 specified in paragraph (4); or 

9 ‘‘(ii) a contract or order that is en10 tered into to meet procurement require11 ments, all of which are exempted require12 ments under paragraph (5). 

13 ‘‘(2) BUNDLING OF CONTRACT REQUIRE14 MENTS.— 

15 ‘‘(A) IN GENERAL.—The term ‘bundling of 

16 contract requirements’ means the use of any 

17 bundling methodology to satisfy 2 or more pro18 curement requirements for goods or services 

19 previously supplied or performed under separate 

20 smaller contracts or orders, or to satisfy 2 or 

21 more procurement requirements for construc22 tion services of a type historically performed 

23 under separate smaller contracts or orders, that 

24 is likely to be unsuitable for award to a small 

25 business concern due to— 


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1 ‘‘(i) the diversity, size, or specialized 

2 nature of the elements of the performance 

3 specified; 

4 ‘‘(ii) the aggregate dollar value of the 

5 anticipated award; 

6 ‘‘(iii) the geographical dispersion of 

7 the contract or order performance sites; or 

8 ‘‘(iv) any combination of the factors 

9 described in clauses (i), (ii), and (iii). 

10 ‘‘(B) INCLUSION OF NEW FEATURES OR

11 FUNCTIONS.—A combination of contract re12 quirements that would meet the definition of a 

13 bundling of contract requirements but for the 

14 addition of a procurement requirement with at 

15 least one new good or service shall be consid16 ered to be a bundling of contract requirements 

17 unless the new features or functions substan18 tially transform the goods or services and will 

19 provide measurably substantial benefits to the 

20 government in terms of quality, performance, or 

21 price. 

22 ‘‘(C) EXCEPTIONS.—The term does not in23 clude— 

24 ‘‘(i) the use of a bundling method25 ology for an anticipated award with an agVerDate Aug 31 2005 20:46 May 11, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1873.RFS H1873

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1 gregate dollar value below the dollar 

2 threshold specified in paragraph (5); or 

3 ‘‘(ii) the use of a bundling method4 ology to meet procurement requirements, 

5 all of which are exempted requirements 

6 under paragraph (6). 

7 ‘‘(3) BUNDLING METHODOLOGY.—The term 

8 ‘bundling methodology’ means— 

9 ‘‘(A) a solicitation to obtain offers for a 

10 single contract or order, or a multiple award 

11 contract or order; or 

12 ‘‘(B) a solicitation of offers for the 

13 issuance of a task or a delivery order under an 

14 existing single or multiple award contract or 

15 order. 

16 ‘‘(4) SEPARATE SMALLER CONTRACT.—The 

17 term ‘separate smaller contract’, with respect to 

18 bundling of contract requirements, means a contract 

19 or order that has been performed by 1 or more small 

20 business concerns or was suitable for award to 1 or 

21 more small business concerns. 

22 ‘‘(5) DOLLAR THRESHOLD.—The term ‘dollar 

23 threshold’ means $65,000,000, if solely for construc24 tion services. 


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1 ‘‘(6) EXEMPTED REQUIREMENTS.—The term 

2 ‘exempted requirement’ means a procurement re3 quirement solely for items that are not commercial 

4 items (as the term ‘commercial item’ is defined in 

5 section 4(12) of the Office of Federal Procurement 

6 Policy Act (41 U.S.C. 403(12)). 

7 ‘‘(7) PROCUREMENT REQUIREMENT.—The term 

8 ‘procurement requirement’ means a determination 

9 by an agency that a specified good or service is 

10 needed to satisfy the mission of the agency.’’. 

11 SEC. 102. JUSTIFICATION. 

12 Section 15(a) of the Small Business Act (15 U.S.C. 

13 644(a)) is amended— 

14 (1) by striking ‘‘(2) why delivery schedules’’ 

15 and inserting ‘‘(2) the names, addresses and size of 

16 the incumbent contract holders; (3) a description of 

17 the industries that might be interested in bidding on 

18 the contract requirements; (4) the number of small 

19 businesses listed in the industry categories that 

20 could be excluded from future bidding if the contract 

21 is combined or packaged; (5) why delivery sched22 ules’’; 

23 (2) by striking ‘‘(3) why the proposed acquisi24 tion’’ and inserting ‘‘(6) why the proposed acquisi25 tion’’; 


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1 (3) by striking ‘‘(4) why construction’’ and in2 serting ‘‘(7) why construction’’; 

3 (4) by striking ‘‘(5) why the agency’’ and in4 serting ‘‘(8) why the agency’’; 

5 (5) by striking ‘‘justified.’’ and inserting ‘‘justi6 fied. The statement shall also set forth the proposed 

7 procurement strategy required by subsection (e) and, 

8 if applicable, the specifications required by sub9 section (e)(3). The statement shall be made available 

10 to the public, including through dissemination in the 

11 Federal contracting opportunities database, concur12 rently with the issuance of the solicitation.’’; and 

13 (6) by inserting after ‘‘prime contracting oppor14 tunities.’’ the following: ‘‘If no notification of the 

15 procurement and accompanying statement is re16 ceived, but the Administrator determines that there 

17 is cause to believe the contract combines require18 ments or a contract (single or multiple award) or 

19 task or delivery order for construction services or in20 cludes unjustified bundling, then the Administrator 

21 may request that such a statement of work goods or 

22 services be completed by the procurement activity 

23 and sent to the Procurement Center Representative 

24 and the solicitation process postponed for 10 days to 

25 allow the Administrator to review the statement and 


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1 make recommendations as described in this section 

2 before the procurement is continued.’’. 

3 SEC. 103. APPEALS. 

4 Section 15(a) of the Small Business Act (15 U.S.C. 

5 644(a)) is amended by inserting before ‘‘Whenever the Ad6 ministration and the contracting procurement agency fail 

7 to agree,’’ the following: ‘‘If a small business concern 

8 would be adversely affected, directly or indirectly, by the 

9 procurement as proposed, and that small business concern 

10 or a trade association on behalf of that small business con11 cern so requests, the Administrator may, in the Adminis12 trator’s discretion, take action to further the interests of 

13 that small business concern, and shall make available to 

14 the public on the website of the Administration the action 

15 taken and the result achieved.’’. 

16 SEC. 104. REVIEW. 

17 Section 15(a) of the Small Business Act (15 U.S.C. 

18 644(a)) is amended by striking the sentence beginning 

19 ‘‘Whenever the Administration and the contracting pro20 curement agency fail to agree,’’ and inserting the fol21 lowing: ‘‘Whenever the Administration and the contracting 

22 procurement agency fail to agree, the Administrator shall 

23 submit the matter to the head of the agency for a deter24 mination. The head of the agency shall provide a written 

25 response to the Administrator. A copy of such response 


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1 shall also be provided to the Committees on Small Busi2 ness of the House of Representatives and Senate, the 

3 Committee on Oversight and Government Reform of the 

4 House of Representatives, and the Committee on Home5 land Security and Governmental Affairs of the Senate, 

6 and any other committee of the House and Senate that 

7 has jurisdiction over the agency concerned.’’. 

8 TITLE II—INCREASING THE 

9 NUMBER OF SMALL BUSINESS 

10 CONTRACTS AND SUB11 CONTRACTS 

12 SEC. 201. SMALL BUSINESS GOAL. 

13 (a) GOVERNMENT-WIDE GOAL.—Section 15(g)(1) of 

14 the Small Business Act (15 U.S.C. 644(g)(1)) is amended 

15 by striking ‘‘23 percent’’ and inserting ‘‘30 percent’’. 

16 (b) GOALS FOR SMALL DISADVANTAGED BUSI17 NESSES AND WOMEN-OWNED BUSINESSES.—Section 

18 15(g)(1) of such Act is further amended by striking ‘‘5 

19 percent’’ both places it appears and inserting ‘‘8 percent’’. 

20 SEC. 202. INCLUDE OVERSEAS CONTRACTS IN SMALL BUSI21 NESS GOAL. 

22 Section 15(g) of the Small Business Act (15 U.S.C. 

23 644(g)) is amended by adding at the end the following: 

24 ‘‘(3) The procurement goals required by this sub25 section apply to all procurement contracts, without regard 


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1 to whether the contract is for work within or outside the 

2 United States.’’. 

3 SEC. 203. ANNUAL GOAL NEGOTIATION. 

4 Section 15(g)(1) of the Small Business Act (15 

5 U.S.C. 644(g)(1)) is amended by striking ‘‘The President 

6 shall annually establish Government-wide goals for pro7 curement contracts’’ and inserting ‘‘The President shall 

8 before the close of each fiscal year establish new Govern9 ment-wide procurement goals for the following fiscal year 

10 for procurement contracts’’. 

11 SEC. 204. USAGE OF SMALL COMPANIES IN GOAL ACHIEVE12 MENT. 

13 Section 15(g) of the Small Business Act (15 U.S.C. 

14 644(g)) is amended by adding at the end the following: 

15 ‘‘(4) For purposes of this subsection and subsection 

16 (h), a small business concern shall be counted toward one 

17 additional category goal only, even if that small business 

18 concern otherwise qualifies under more than one category 

19 goal. In this paragraph, the term ‘category goal’ means 

20 a goal described in paragraph (2).’’. 

21 SEC. 205. ANNUAL PLAN FOR EACH AGENCY EXPLAINING 

22 HOW AGENCY WILL MEET SMALL BUSINESS 

23 GOALS. 

24 Section 15(g) of the Small Business Act (15 U.S.C. 

25 644(g)) is amended by adding at the end the following: 


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1 ‘‘(5) Before the beginning of each fiscal year, the 

2 head of each Federal agency shall submit to the Adminis3 trator of the Small Business Administration and to Con4 gress a detailed plan explaining how the agency intends 

5 to meet the small business goals under this subsection that 

6 apply to that agency for that fiscal year.’’. 

7 SEC. 206. MAKING SMALL BUSINESSES THE FIRST CHOICE. 

8 Section 15(j) of the Small Business Act (15 U.S.C. 

9 644(j)) is amended— 

10 (1) in paragraph (1), by striking ‘‘$100,000’’ 

11 and inserting ‘‘the Simplified Acquisition Thresh12 old’’; and 

13 (2) in paragraph (3), by striking ‘‘subsection 

14 (a) of section 8’’ and inserting ‘‘section 8, 31, or 

15 36’’. 

16 SEC. 207. UNIFORM METRIC FOR SUBCONTRACTING 

17 ACHIEVEMENTS. 

18 Section 8(d) of the Small Business Act (15 U.S.C. 

19 637(d)) is amended by adding at the end the following: 

20 ‘‘(12) In carrying out this subsection, the Adminis21 trator shall require each prime contractor to report small 

22 business subcontract usage at all tiers based on the per23 centage of the total dollar amount of the contract award.’’. 


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1 SEC. 208. SUBCONTRACTING DATABASE. 

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 ‘‘(13) In carrying out this subsection, the Adminis5 trator shall develop and maintain a password-protected 

6 database that will enable the Administration to assist 

7 small businesses in marketing to large corporations that 

8 have not achieved their small business goals.’’. 

9 SEC. 209. NATIONAL DATABASE. 

10 The Administrator of the Small Business Administra11 tion shall ensure that whenever a small business enters 

12 its information in the Central Contractor Registry, or any 

13 successor to that registry, the Administrator contacts that 

14 business within 30 days regarding the likelihood of Fed15 eral contracting opportunities. The Administrator shall 

16 ensure that each small business that so registers is, for 

17 each industry code entered by that small business, pro18 vided with the total dollar value of government contract 

19 awards to small businesses for that industry. 

20 SEC. 210. REVIEW OF SUBCONTRACTING PLANS. 

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

22 date of the enactment of this Act, the General Services 

23 Administration shall, after an opportunity for notice and 

24 comment, begin to make modifications, if necessary, to the 

25 Electronic Subcontracting Reporting System (ESRS) for 

26 the purpose of tracking companies’ compliance with small 


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1 business subcontracting plans included in successful con2 tract bids. ESRS shall be further developed, if necessary, 

3 in such a way that it allows agencies to track whether or 

4 not the prime contractor actually subcontracted work out 

5 to the subcontracting firms described in the Small Busi6 ness Subcontracting Plan. Further, ESRS shall be modi7 fied, if necessary, so that it facilitates review of a com8 pany’s record of compliance with small business subcon9 tracting plans. 

10 (b) PERIODIC REPORTS.—Prime contractors shall be 

11 required to submit Small Business Subcontracting Plans 

12 to ESRS and submit subsequent periodic reports to ESRS 

13 describing the extent to which the prime contractor com14 plied with small business subcontracting plans submitted 

15 as part of the company’s successful contract proposal. 

16 Each such report shall include a specific accounting of 

17 compliance with subcontracting goals described in the 

18 prime contractor’s Small Business Subcontracting Plans 

19 related to Small Disadvantaged Businesses Concerns, 

20 Women-Owned Small Business Concerns, Historically 

21 Black Colleges and Universities and Minority Institutions, 

22 Service-Disabled Veteran-Owned Small Business Con23 cerns, and HUBZone Small Business Concerns. Each 

24 such accounting of compliance shall also be included in 

25 ESRS. 


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1 (c) INCLUSION IN ESRS.—The ‘‘percentage of the 

2 total dollar amount of the contract award’’ that is paid 

3 to small business, as referred to in paragraph (12) of sec4 tion 8(d) of the Small Business Act (as added by section 

5 206 of this Act) shall also be included in ESRS. 

6 (d) AVAILABILITY OF ESRS.—ESRS and the infor7 mation therein shall be made available to agency officials 

8 and Source Selection Evaluation Boards (as referred to 

9 in Federal Acquisition Regulations 3.104–1) that are 

10 charged with evaluating contract proposals, and, when 

11 evaluating contract proposals, agencies shall take into con12 sideration the compliance with small business subcon13 tracting plans of companies competing for Federal con14 tracts, and within one year after the date of the enactment 

15 of this Act such consideration shall be reflected in the 

16 Federal Acquisition Regulations. 

17 (e) FURTHER MODIFICATIONS REQUIRED.—ESRS 

18 shall be modified in such a way that it can generate com19 parable reports on individual companies’ compliance 

20 records to be used in the contract proposal evaluation 

21 processes of agencies. 

22 SEC. 211. AGENCY OBLIGATION FOR FULFILLING CON23 TRACTING GOALS. 

24 Section 15(h) of the Small Business Act (15 U.S.C. 

25 644(h)) is amended by adding at the end the following: 


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1 ‘‘(4) At the conclusion of each fiscal year, the head 

2 of each Federal agency shall submit to Congress a report 

3 specifying the percentage of contracts awarded by that 

4 agency for that fiscal year that were awarded to small 

5 business concerns. If the percentage is less than 25 per6 cent, the head of the agency shall, in the report, explain 

7 why the percentage is less than 25 percent and what will 

8 be done to ensure that the percentage for the following 

9 fiscal year will not be less than 25 percent.’’. 

10 SEC. 212. APPROPRIATE LIMITS ON VALUE OF SOLE 

11 SOURCE CONTRACTS. 

12 (a) APPROPRIATE LIMITS.—If a law is not enacted 

13 by December 31, 2007, revising the limits referred to in 

14 this subsection, the Administrator for Federal Procure15 ment Policy, in consultation with the Administrator for 

16 Small Business, shall establish appropriate limits on the 

17 value of contracts awarded without the use of competitive 

18 procedures to participants in the program established by 

19 section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 

20 that are not subject to the limits on the value of such con21 tracts established by paragraph (1)(D) of section 8(a) of 

22 such Act. 

23 (b) CONSULTATION.—In establishing any limit de24 scribed in subsection (a). the Administrator for Federal 

25 Procurement Policy shall consult with representatives of 


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1 the affected program participants. The Administrator 

2 shall also take into account— 

3 (1) any special circumstances and needs of the 

4 affected program participants; and 

5 (2) the advantages of promoting competition in 

6 Federal contracting. 

7 SEC. 213. SMALL BUSINESS GOALS FOR GREEN SMALL 

8 BUSINESS CONCERNS. 

9 (a) IN GENERAL.—Section 15(g) of the Small Busi10 ness Act (15 U.S.C. 644(g)) is amended— 

11 (1) in paragraph (1)— 

12 (A) by striking ‘‘and small business con13 cerns owned and controlled by women’’ both 

14 places such term appears and inserting ‘‘small 

15 business concerns owned and controlled by 

16 women, and green small business concerns’’; 

17 and 

18 (B) by inserting before ‘‘Notwithstanding 

19 the Government-wide goal’’ the following: ‘‘The 

20 Government-wide goal for participation by 

21 green small business concerns shall be estab22 lished at not less than 5 percent of the total 

23 value of all prime contract and subcontract 

24 awards for each fiscal year.’’; and 

25 (2) in paragraph (2)— 


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1 (A) by striking ‘‘and by small business 

2 concerns owned and controlled by women’’ both 

3 places such term appears and inserting ‘‘by 

4 small business concerns owned and controlled 

5 by women, and by green small business con6 cerns’’; and 

7 (B) by striking ‘‘and small business con8 cerns owned and controlled by women’’ and in9 serting ‘‘small business concerns owned and 

10 controlled by women, and green small business 

11 concerns’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) DEFINITION.—Section 3 of that Act (15 

14 U.S.C. 632) is amended by adding at the end the 

15 following: 

16 ‘‘(s) DEFINITIONS RELATING TO GREEN SMALL

17 BUSINESS CONCERNS.—In this Act, the term ‘green small 

18 business concern’ means a small business concern that 

19 carries out its activities in an environmentally sound man20 ner. The Administrator shall, in consultation with the En21 vironmental Protection Agency, the General Services Ad22 ministration, and other appropriate agencies, specify de23 tailed definitions or standards by which a small business 

24 concern may be determined to be a green small business 

25 concern for the purposes of this Act.’’. 


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1 (2) POLICY.—Section 8(d) of that Act (15 

2 U.S.C. 637(d)) is amended— 

3 (A) in paragraph (1) (in both places such 

4 term appears), paragraph (3)(A) (in both places 

5 such term appears), paragraph (4)(D), para6 graph (6)(A), paragraph (6)(C), paragraph 

7 (6)(F), and paragraph (10)(B) by striking ‘‘and 

8 small business concerns owned and controlled 

9 by women’’ and inserting ‘‘small business con10 cerns owned and controlled by women, and 

11 green small business concerns’’; 

12 (B) in paragraph (3)(F) by striking ‘‘or a 

13 small business concern owned and controlled by 

14 women’’ and inserting ‘‘a small business con15 cern owned and controlled by women, or a 

16 green small business concern’’; and 

17 (C) in paragraph (4)(E) by striking ‘‘and 

18 for small business concerns owned and con19 trolled by women’’ and inserting ‘‘for small 

20 business concerns owned and controlled by 

21 women, and for green small business concerns’’. 

22 (3) REPORTS ON GOALS.—Section 15(h) of that 

23 Act (15 U.S.C. 644(h)) is amended, in each of para24 graphs (1), (2)(A), (2)(D), and (2)(E) by striking 

25 ‘‘and small business concerns owned and controlled 


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1 by women’’ and inserting ‘‘small business concerns 

2 owned and controlled by women, and green small 

3 business concerns’’. 

4 (4) PENALTIES.—Section 16 of that Act (15 

5 U.S.C. 645) is amended in each of subsections 

6 (d)(1) and (e) by striking ‘‘or a ‘small business con7 cern owned and controlled by women’ ’’ and inserting 

8 ‘‘a ‘small business concern owned and controlled by 

9 women’, or a ‘green small business concern’ ’’. 

10 SEC. 214. STUDY ON PROVIDING FINANCIAL INCENTIVES 

11 TO CONTRACTORS THAT MEET MINORITY 

12 AND DISADVANTAGED BUSINESS ENTER13 PRISE GOALS. 

14 The Administrator of the Small Business Administra15 tion shall carry out a study on the feasibility and desir16 ability of providing financial incentives to contractors op17 erating under contracts from a Federal agency that 

18 achieve the percentage goals set forth in said contracts’ 

19 subcontracting plans for the utilization of small business 

20 concerns owned and controlled by socially and economi21 cally disadvantaged individuals. The Administrator shall 

22 submit to Congress a report on the results of the study, 

23 together with any findings, conclusions, and recommenda24 tions that the Administrator considers appropriate. 


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1 TITLE III—PROTECTION OF 

2 TAXPAYERS FROM FRAUD 

3 SEC. 301. SMALL BUSINESS SIZE PROTEST NOTIFICATION. 

4 (a) IN GENERAL.—The Administrator of the Small 

5 Business Administration shall work with appropriate Fed6 eral agencies to ensure that whenever a business concern 

7 is awarded a contract on the basis that it qualifies as small 

8 and then is determined not to qualify as small, a notifica9 tion of those facts (that an award was made on such a 

10 basis, and that such a determination was made) shall be 

11 placed adjacent to that concern’s listing in the Central 

12 Contractor Registry (or any successor to that registry). 

13 (b) COMPTROLLER GENERAL CERTIFICATION.—The 

14 Administrator shall, in making any report of small busi15 ness goal accomplishments, qualify the accomplishments 

16 as ‘‘estimated’’, until the Administrator obtains from the 

17 Comptroller General the Comptroller General’s certifi18 cation that there are no data integrity issues with respect 

19 to the national repository of contract award information 

20 known as Federal Procurement Data System-Next Gen21 eration (FPDS–NG), or any successor to that repository. 

22 (c) AWARDS TO LARGE BUSINESSES.—For each Fed23 eral agency, the Inspector General of that agency shall, 

24 on an annual basis, submit to Congress a report on the 

25 number and dollar value of contract awards that were 


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1 coded as awards to small business concerns but in fact 

2 were made to businesses that did not qualify as small busi3 ness concerns. 

4 SEC. 302. REVIEW OF NATIONAL REGISTRY. 

5 The Administrator of the Small Business Administra6 tion shall ensure, on a biannual basis, that an independent 

7 audit is performed of the Central Contractor Registry, or 

8 any successor to that registry, and that the Dynamic 

9 Small Business Search portion of the registry, or any suc10 cessor to that portion of the registry, is purged of any 

11 businesses that are not in fact small businesses. If a busi12 ness that has been so purged attempts, while not in fact 

13 a small business, to re-register, that business is subject 

14 to debarment as a Federal contractor and is further sub15 ject to penalties outlined in section 16 of the Small Busi16 ness Act (15 U.S.C. 645). 

17 SEC. 303. RECERTIFICATION OF COMPLIANCE WITH SIZE 

18 STANDARDS AND REGISTRATION WITH CEN19 TRAL CONTRACTOR REGISTRY. 

20 Section 3(a) of the Small Business Act (15 U.S.C. 

21 632(a)) is amended by adding at the end the following: 

22 ‘‘(5) RECERTIFICATION.— 

23 ‘‘(A) IN GENERAL.—If a business concern is 

24 awarded a contract because of a standard by which 

25 it is determined to be a small business concern, and 


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1 the business concern is close to exceeding that 

2 standard at the time the award is made, then the 

3 business concern must, annually after the date of 

4 the award, recertify to the agency awarding the con5 tract whether it meets that standard. 

6 ‘‘(B) ‘CLOSE TO EXCEEDING’.—For purposes of 

7 subparagraph (A), a business concern is close to ex8 ceeding— 

9 ‘‘(i) a number-of-employees standard if the 

10 number of employees of the business concern is 

11 95 percent or more of the maximum number of 

12 employees allowed under the standard; and 

13 ‘‘(ii) a dollar-volume-of-business standard 

14 if the dollar volume of business is 80 percent or 

15 more of the maximum dollar volume allowed 

16 under the standard. 

17 ‘‘(6) REGISTRY.—For a business concern to be 

18 awarded a contract because of a standard by which it is 

19 determined to be a small business concern, the business 

20 concern must, annually after the end of the fiscal year 

21 used by the business concern, update its listing in the Cen22 tral Contractor Registry.’’. 


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1 TITLE IV—AUTHORIZATION OF 

2 APPROPRIATIONS 

3 SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 

4 There are authorized to be appropriated such sums 

5 as may be necessary to carry out this Act and the amend6 ments made by this Act. 

Passed the House of Representatives May 10, 2007. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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