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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4943 Introduced in House (IH)]

  2d Session
                                H. R. 4943

To amend the Small Business Act to require that certain acquisitions of 
  goods and services be from small business concerns and to authorize 
 certain acquisitions using a governmentwide commercial purchase card, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2000

   Mr. Bartlett of Maryland introduced the following bill; which was 
  referred to the Committee on Small business, and in addition to the 
    Committee on Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Small Business Act to require that certain acquisitions of 
  goods and services be from small business concerns and to authorize 
 certain acquisitions using a governmentwide commercial purchase card, 
                        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 ``Small Business Federal Acquisition 
Simplification Act of 2000''.

SEC. 2. PROCUREMENT USING GOVERNMENTWIDE COMMERCIAL PURCHASE CARDS.

    Section 15 of the Small Business Act (15 U.S.C. 644) is amended by 
adding at the end the following new subsection:
    ``(p) Procurement Using Governmentwide Commercial Purchase Cards.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Authorized individual.--The term `authorized 
                individual' means a person who has been granted 
                authority, in accordance with Federal agency 
                procedures, to acquire goods or services using a 
                governmentwide commercial purchase card.
                    ``(B) Goods or services.--The term `goods or 
                services' means all goods, supplies, and services 
                (including construction services, research and 
                development services, and commercial items) offered for 
                sale or otherwise provided by a small business concern.
                    ``(C) Governmentwide commercial purchase card.--The 
                term `governmentwide commercial purchase card' means a 
                purchase card issued to authorized individuals to use 
                to acquire and pay for goods or services.
            ``(2) Acquisition Requirement.--Each acquisition of goods 
        or services by an authorized individual using a governmentwide 
        commercial purchase card shall be from small business concerns 
        unless no small business concern--
                    ``(A) provides goods or services of the same kind 
                or a comparable nature;
                    ``(B) can provide the goods or services within the 
                required time schedule; or
                    ``(C) can meet the quality standards established in 
                writing by the agency for the goods or services to be 
                acquired.
            ``(3) Blind or severely disabled vendors.--Nothing in this 
        subsection shall be construed to change or modify any 
        requirement under any provision of the Javits-Wagner-O'Day Act 
        (41 U.S.C. 46 et seq.) that goods or services be acquired from 
        people who are blind or who are severely disabled.
            ``(4) Acquisitions from entities other than small business 
        concerns.--If, using a governmentwide commercial purchase card, 
        an authorized individual acquires goods or services that are 
        available from a small business concern from an entity other 
        than a small business concern, the authorized individual 
        shall--
                    ``(A) report the acquisition to the person in the 
                authorized individual's agency who is responsible for 
                acquisition; and
                    ``(B) document the reasons for not acquiring the 
                goods or services from a small business concern.
            ``(5) Small-value acquisitions.--Before making any 
        acquisition using a governmentwide commercial purchase card of 
        goods or services having an anticipated dollar value of $2,500 
        or less, an authorized individual shall not be required to 
        obtain individual price information or price quotations for the 
        goods or services, but may consider--
                    ``(A) the nature of the goods or services to be 
                acquired, whether the market for such goods or services 
                is highly competitive, and whether the goods or 
                services are readily available;
                    ``(B) information obtained in making recent 
                acquisitions of the same or similar goods or services;
                    ``(C) the dollar amount of the proposed 
                acquisition; or
                    ``(D) past experience concerning the prices of 
                specific vendors.
            ``(6) Authority for moderate-value acquisitions.--
                    ``(A) In general.--Subject to paragraph (2), an 
                authorized individual may acquire using a 
                governmentwide commercial purchase card goods or 
                services having an anticipated dollar value of more 
                than $2,500 but not more than $25,000, only if the 
                authorized individual obtains pricing information (that 
                includes the maximum benefit of any discounts) from not 
                less than 2 small business concerns that deal in the 
                type or kind of goods or services sought.
                    ``(B) Source of pricing information.--The pricing 
                information referred to in subparagraph (A) may be 
                based on any of the following:
                            ``(i) Printed price lists or catalogs.
                            ``(ii) Oral or written price quotations or 
                        offers from small business concerns that deal 
                        in the type or kind of goods or services 
                        sought.
                            ``(iii) Prices obtained from electronic 
                        media such as the Internet.
                    ``(C) Considerations.--When making an acquisition 
                under this paragraph, in addition to considerations of 
                price, an authorized individual may consider 
                information such as previous experience with the vendor 
                of the goods or services, customer surveys, or other 
                reasonable bases.
            ``(7) Authority for large-value acquisitions.--
                    ``(A) In general.--Subject to paragraph (2), an 
                authorized individual may acquire using a 
                governmentwide commercial purchase card goods or 
                services having an anticipated dollar value of more 
                than $25,000, but not more than $100,000, only if the 
                authorized individual--
                            ``(i) advertises the proposed acquisition 
                        by electronic media such as the Internet not 
                        fewer than 12 days before the acquisition;
                            ``(ii) considers all price quotations that 
                        are received in a timely manner; and
                            ``(iii) solicits price quotations or offers 
                        from at least 3 small business concerns that 
                        deal in the type or kind of goods or services 
                        sought, including at least 1 of the following:
                                    ``(I) A small business concern 
                                owned and controlled by socially and 
                                economically disadvantaged individuals.
                                    ``(II) A small business concern 
                                owned and controlled by women.
                                    ``(III) A small business concern 
                                owned and controlled by veterans.
                    ``(B) Considerations.--When making an acquisition 
                under this paragraph, in addition to considerations of 
                price, an authorized individual shall consider--
                            ``(i) the nature of the goods or services 
                        to be acquired, whether the market for such 
                        goods or services is highly competitive, and 
                        whether the goods or services are readily 
                        available in several makes or brands;
                            ``(ii) any information regarding the 
                        vendor's past performance with respect to 
                        recent acquisitions of the same or similar 
                        items; and
                            ``(iii) the urgency of the proposed 
                        acquisition.
            ``(8) Source lists.--
                    ``(A) In general.--Each agency shall maintain, or 
                contribute to the maintenance of, a comprehensive 
                source list (in written or electronic form) of small 
                business concerns that are vendors of goods or services 
                of the kind likely to be acquired by the agency.
                    ``(B) Status of vendor.--Each list described in 
                subparagraph (A) shall identify whether each vendor on 
                the list is any of the following:
                            ``(i) A small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals.
                            ``(ii) A small business concern owned and 
                        controlled by women.
                            ``(iii) A small business concern owned and 
                        controlled by veterans.
            ``(9) Publication and reporting requirements.--
                    ``(A) In general.--Not later than 90 days after the 
                end of each fiscal year, each Federal agency shall 
                publish in the Federal Register, and transmit to the 
                Office of Advocacy of the Small Business 
                Administration, information regarding acquisitions made 
                under this subsection.
                    ``(B) Contents.--The information published and 
                reported under subparagraph (A) shall include each of 
                the following:
                            ``(i) The total dollar value of 
                        acquisitions under this subsection.
                            ``(ii) The total dollar value of 
                        acquisitions from small business concerns.
                            ``(iii) The total dollar value of 
                        acquisitions from entities that are not small 
                        business concerns.
                            ``(iv) The total dollar value of 
                        acquisitions from small business concerns owned 
                        and controlled by socially and economically 
                        disadvantaged individuals.
                            ``(v) The total dollar value of 
                        acquisitions from small business concerns owned 
                        and controlled by women.
                            ``(vi) The total dollar value of 
                        acquisitions from small business concerns owned 
                        and controlled by veterans.''.

SEC. 3. PROCUREMENT AUDIT AND REPORT TO CONGRESS.

    (a) In General.--The Comptroller General of the United States shall 
conduct an audit of the books and accounts of the 10 largest Federal 
agencies (as measured by the total dollar amount of acquisitions) 
acquiring goods or services using governmentwide commercial purchase 
cards.
    (b) Report.--
            (1) In general.--Not later January 1, 2002, the Comptroller 
        General of the United States shall transmit to the Committees 
        on Small Business of the House of Representatives and the 
        Senate a report containing the results of the audit conducted 
        under subsection (a) and information regarding compliance with 
        the requirements of this Act
            (2) Contents.--The report described in paragraph (1) shall 
        specifically address the each of the following with respect to 
        each Federal agency:
                    (A) The total dollar amount of goods or services 
                acquired in acquisitions of $100,000 or less that were 
                acquired from small business concerns, and the total 
                dollar amount of such acquisitions that were acquired 
                from entities other than small business concerns.
                    (B) The total dollar amount of goods or services 
                acquired in acquisitions of $2,500 or less that were 
                acquired using a governmentwide commercial purchase 
                card from small business concerns, and the total dollar 
                amount of such acquisitions from entities other than 
                small business concerns.
                    (C) The total dollar amount of goods or services 
                acquired in acquisitions of $100,000 or less from each 
                of the following:
                            (i) Small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals.
                            (ii) Small business concerns owned and 
                        controlled by women.
                            (iii) Small business concerns owned and 
                        controlled by veterans.
                    (D) The total dollar amount of goods or services 
                acquired in acquisitions of $100,000 or less using a 
                governmentwide commercial purchase card from each of 
                the types of small business concerns listed in clauses 
                (i) through (iii) of subparagraph (C).
                    (E) Information regarding the source lists 
                maintained pursuant to section 15(p)(8) of the Small 
                Business Act, as added by section 2 of this Act, and 
                information evaluating how comprehensive such lists are 
                and how accurate such lists are in identifying whether 
                a source is a small business concern, a small business 
                concern owned and controlled by socially and 
                economically disadvantaged individuals, small business 
                concern owned and controlled by women, small business 
                concern owned and controlled by veterans.
                    (F) Information regarding each rule, regulation, 
                directive and policy statement that was issued to 
                implement this Act.
                    (G) Any recommendations to the agency for improving 
                compliance with the requirements of this Act and any 
                recommendations for legislative changes to minimize 
                noncompliance and to increase Federal acquisition from 
                small business concerns.
    (c) Definitions.--In this section, the following definitions 
apply:--
            (1) Goods or services.--The term ``goods or services'' has 
        the meaning given such term in section 15(p)(1)(B) of the Small 
        Business Act (as added by section 2 of this Act).
            (2) Governmentwide commercial purchase card.--The term 
        ``governmentwide commercial purchase card'' has the meaning 
        given such term in section 15(p)(1)(C) of the Small Business 
        Act (as added by section 2 of this Act).

SEC. 4. DIRECT PAYMENT TO SUBCONTRACTORS.

    (a) In General.--Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by--
            (1) redesignating paragraphs (8), (9), (10), and (11) as 
        (9), (10), (11), and (12), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) Timely payment to small business subcontractors.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                failure of a prime contractor to make timely payment to 
                a subcontractor that is a small business concern shall 
                be a material breach of the contract with the Federal 
                agency.
                    ``(B) Consideration of performance.--Prior to 
                making any determination of failure for the purposes of 
                subparagraph (A), the contracting officer shall 
                consider all reasonable issues regarding the 
                performance, or lack of performance, of the 
                subcontractor.
                    ``(C) Withholding of payments.--At any time before 
                the date that is 30 days after the date of a breach 
                described in subparagraph (A), the Federal agency may 
                withhold any amounts due and owing the subcontractor 
                from payments due to the prime contractor and make 
                direct payment of such amounts to the subcontractor.''.
    (b) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Federal Acquisition Regulation and the 
Defense Acquisition Regulation shall be amended to implement the 
amendment made by subsection (a).

SEC. 5. SUBCONTRACTING CERTIFICATION.

    Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is 
amended by--
            (1) in subparagraph (H) (as redesignated by section 6), by 
        striking ``and'' at the end;
            (2) in subparagraph (I) (as redesignated by section 6), by 
        striking the period at the end and inserting ``; and''; and
            (3) by inserting at the end the following new subparagraph:
                    ``(J) certification that the offeror or bidder will 
                acquire articles, equipment, supplies, services, or 
                materials or obtain the performance of construction 
                work from subcontractors named in the bid or proposal 
                and in the amount and quality used in preparing the bid 
                or proposal unless the subcontractor is no longer in 
                business or can no longer meet the quality, quantity, 
                or delivery date.''.

SEC. 6. INTERNET ANNOUNCEMENTS OF CERTAIN SUBCONTRACTING OPPORTUNITIES.

    Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is 
amended by--
            (1) redesignating subparagraphs (D), (E), and (F) as (G), 
        (H), and (I), respectively; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) assurances that the offeror or bidder will 
                provide information concerning subcontracting 
                opportunities on an appropriate Internet site 
                accessible to small business concerns (including small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals, small business 
                concerns owned and controlled by women, and small 
                business concerns owned and controlled by veterans);
                    ``(E) not later than 10 days after the award of a 
                contract for which a subcontracting plan is required 
                under paragraph (4) or (5), the offeror or bidder shall 
                provide on the Internet--
                            ``(i) the name and address of the offeror 
                        or bidder;
                            ``(ii) the name, title, telephone, and 
                        facsimile transmission number, and electronic 
                        mail and postal address of the individual 
                        within the employ of the offeror or bidder who 
                        is responsible for administering the 
                        subcontracting program; and
                            ``(iii) a list of anticipated 
                        subcontracting opportunities including a 
                        description of the quality, quantity, and 
                        anticipated acquisition and delivery dates of 
                        the goods or services, the provision or 
                        performance of which is to be subcontracted;
                    ``(F) in order to ensure that small business 
                concerns have an equitable opportunity to compete for 
                subcontracts, not less than 30 days before the award of 
                a contract with respect to each subcontracting 
                opportunity, each bidder or offeror required to submit 
                a subcontracting plan shall provide on the Internet--
                            ``(i) the name and address of offeror or 
                        bidder;
                            ``(ii) the name, title, telephone and 
                        facsimile transmission number, and electronic 
                        mail and postal address of the individual 
                        within the employ of the offeror or bidder who 
                        is the buyer for the particular acquisition;
                            ``(iii) a description of the quality, 
                        quantity, and anticipated acquisition and 
                        delivery date of the goods or services to be 
                        acquired, and, if applicable, the any 
                        nomenclature, any National Stock Number or 
                        other part number, and a brief description of 
                        the form, fit, or function, physical 
                        dimensions, predominant material or 
                        manufacture, of the goods or services, or 
                        similar information that will assist a 
                        prospective subcontractor bid on the 
                        subcontracting opportunity;
                            ``(iv) the procurement procedures to be 
                        followed in awarding the subcontract; and
                            ``(v) a statement that all responsible 
                        sources that are small business concerns may 
                        submit a bid, proposal, or quotation, as 
                        appropriate.''.

SEC. 7. DEFINITION OF INTERNET.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended by 
adding at the end the following new subsection:
            ``(r) Definition of internet.--In this Act, the term 
        `Internet' has the meaning given such term in section 230(f)(1) 
        of the Communications Act of 1934.''.
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