IB

103D CONGRESS

2D SESSION H. R. 4263

[Report No. 103–606, Part I]

To promote the participation of small business enterprises, including minority

small businesses, in Federal procurement and Government contracts,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 20, 1994

Mr. LAFALCE introduced the following bill; which was referred to the

Committee on Small Business

JULY 14, 1994

Reported with an amendment and referred to the Committee on Government

Operations for a period ending not later than August 5, 1994, for consideration of such provisions contained in the bill and amendment as fall

within the jurisdiction of that committee pursuant to clause 1(j), rule X

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

AUGUST 3, 1994

Referral to the Committee on Government Operations extended for a period

ending not later than August 12, 1994

AUGUST 12, 1994

Additional sponsor: Ms. BROWN of Florida

AUGUST 12, 1994

The Committee on Government Operations discharged; referred to the

Committee of the Whole House on the State of the Union

[For text of introduced bill, see copy of bill as introduced on April 20, 1994]
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A BILL

To promote the participation of small business enterprises,

including minority small businesses, in Federal procurement and Government contracts, 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 ‘‘Small Business and Mi5 nority Small Business Procurement Opportunities Act of

6 1994’’.

7 SEC. 2. FUNCTIONS OF SMALL BUSINESS ADMINISTRATION.

8 The Small Business Act (15 U.S.C. 631 et seq.) is

9 amended by inserting before section 30 the following:

10 ‘‘SEC. 29. The Administrator of the Small Business

11 Administration, in coordination with other Federal agen12 cies, shall—

13 ‘‘(1) develop plans to coordinate and promote the

14 use of the Federal Acquisition Computer Network by

15 small businesses that incorporate outreach efforts by

16 the Administration, agency Offices of Small and Dis17 advantaged Business Utilization, Small Business De18 velopment Centers, and other appropriate organiza19 tions;
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1 ‘‘(2) inform and provide consistent and com2 prehensive training on the Federal Acquisition Com3 puter Network for small businesses; and

4 ‘‘(3) provide Minority Business Development

5 Centers and other minority business assistance pro6 grams of the Department of Commerce information

7 on procurement opportunities and access to the Fed8 eral Acquisition Computer Network.’’.

9 SEC. 3. SMALL BUSINESS RESERVATION.

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

11 644(j)) is amended to read as follows:

12 ‘‘(j)(1) Each contract for the procurement of goods and

13 services that has an anticipated value not in excess of

14 $100,000 or the simplified acquisition threshold, whichever

15 is higher, shall be reserved exclusively for small business

16 concerns unless the contracting officer is unable to obtain

17 offers from 2 or more small business concerns that (A) are

18 competitive with market prices, and (B) are competitive

19 with regard to the quality and delivery of the goods or serv20 ices being procured.

21 ‘‘(2) In carrying out paragraph (1), a contracting offi22 cer shall consider any effort that is responsive and that is

23 received in a timely manner from an eligible small business

24 offeror.
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1 ‘‘(3) Nothing in paragraph (1) shall be construed as

2 precluding an award of a contract with a value not in ex3 cess of $100,000 under the authority of—

4 ‘‘(A) section 8(a) of this Act;

5 ‘‘(B) section 2323 of title 10, United States Code;

6 ‘‘(C) subsection (g) of this section; or

7 ‘‘(D) section 12 of the Business Opportunity De8 velopment Reform Act of 1988.

9 ‘‘(4) A purchase by an executive agency with an an10 ticipated value of the micropurchase threshold or less shall

11 not be subject to the small business reserve requirements of

12 paragraph (1).’’.

13 SEC. 4. TECHNICAL AND CONFORMING CHANGES.

14 (a) SIMPLIFIED ACQUISITION THRESHOLD DE15 FINED.—Section 3(m) of the Small Business Act (15 U.S.C.

16 632(m)) is amended to read as follows:

17 ‘‘(m) For purposes of this Act, the term ‘simplified ac18 quisition threshold’ has the meaning given such term in sec19 tion 4A of the Office of Federal Procurement Policy Act and

20 the term ‘micro-purchase threshold’ has the meaning given

21 such term in section 4B(e) of such Act.’’.

22 (b) CONFORMING AMENDMENT.—Section 8(d)(2)(A) of

23 the Small Business Act (15 U.S.C. 637(d)(2)(A)) is amend24 ed by striking ‘‘does not exceed the small purchase thresh-
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1 old’’ and inserting ‘‘is for an amount not in excess of the

2 simplified acquisition threshold’’.

3 SEC. 5. CONTRACT GOALS FOR SMALL BUSINESSES OWNED

4 BY SOCIALLY DISADVANTAGED INDIVIDUALS

5 AND BY WOMEN.

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

7 644(g)) is amended to read as follows:

8 ‘‘(g)(1) In order to carry out the small business objec9 tives and findings set forth in section 2(a) of this Act, and

10 in order to help remedy the past discrimination against

11 businesses owned and controlled by socially disadvantaged

12 individuals as set forth in the congressional findings in sec13 tion 2(f) of this Act, and in order to help remedy the past

14 discrimination against businesses owned and controlled by

15 women as set forth in the congressional findings in section

16 2(h) of this Act, the President annually shall establish Gov17 ernment-wide goals, which shall not be interpreted as

18 quotas, for procurement contracts awarded to small business

19 concerns, small business concerns owned and controlled by

20 socially disadvantaged individuals, and small business con21 cerns owned and controlled by women. The Government22 wide goal for participation by small business concerns shall

23 be established at not less than 25 percent of the total value

24 of all prime contract awards for each fiscal year. The Gov25 ernment-wide goal for participation by small business con-
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1 cerns owned and controlled by socially disadvantaged indi2 viduals shall be established at not less than 5 percent of

3 the total value of all prime contract and subcontract awards

4 for each fiscal year. The Government-wide goal for partici5 pation by small business concerns owned and controlled by

6 women shall be established at not less than 5 percent of the

7 total value of all prime contract and subcontract awards

8 for each fiscal year. Individual agency small business and

9 women-owned small business goals shall be negotiated an10 nually between each agency and the Administration.

11 ‘‘(2) A goal of not less than 5 percent of the amount

12 described in paragraph (4) shall be established by each exec13 utive agency in each of fiscal years 1994 through 2000 for

14 the total combined amount obligated for contracts, includ15 ing any agency contracts for such things as travel services

16 and food services which do not directly involve appro17 priated or obligated funds but from which the agency de18 rives benefit, and subcontracts entered into with small busi19 ness concerns owned and controlled by socially disadvan20 taged individuals, the majority of the earnings of which di21 rectly accrue to such individuals.

22 ‘‘(3) The Administrator for Federal Procurement Pol23 icy, in consultation with the Administration, shall provide

24 procedures or guidelines for contracting officers to set goals

25 which executive agency prime contractors that are required
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1 to submit subcontracting plans under section 8(d) in fur2 therance of the agency’s program to meet the 5 percent goal

3 specified in paragraph (2) should meet in awarding sub4 contracts to entities described in that paragraph.

5 ‘‘(4) The requirements of paragraphs (2) and (3) for

6 any fiscal year apply to the total value of all prime contract

7 awards entered into by the executive agency for such fiscal

8 year.

9 ‘‘(5)(A) To attain the goal specified in paragraph (2),

10 the head of the agency shall provide technical assistance to

11 the entities described in that paragraph.

12 ‘‘(B) Technical assistance provided under this section

13 shall include information about the program, advice about

14 the agency’s procurement procedures, instruction in prepa15 ration of proposals, and such other assistance as the agency

16 head considers appropriate. If the resources of the executive

17 agency are inadequate to provide such assistance, the agen18 cy head may enter into contracts with minority private sec19 tor entities with experience and expertise in the design, de20 velopment, and delivery of technical assistance services to

21 eligible individuals, business firms and institutions, acqui22 sition agencies, and prime contractors. Agency contracts

23 with such entities shall be awarded annually based upon,

24 among other things, the number of minority small business

25 concerns that each such entity brings into the program.
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1 ‘‘(6) To attain the goal of paragraph (2):

2 ‘‘(A) The head of the agency shall—

3 ‘‘(i) ensure that substantial progress is

4 made in increasing awards of agency contracts

5 to entities described in paragraph (2);

6 ‘‘(ii) exercise his or her authority, resource7 fulness, and diligence; and

8 ‘‘(iii) actively monitor and assess the

9 progress of prime contractors of the agency in at10 taining such goal.

11 ‘‘(B) In making the assessment under subpara12 graph (A)(iii), the agency head shall evaluate the ex13 tent to which use of the authority provided by sub14 paragraphs (C) and (D) and compliance with the re15 quirement of subparagraph (E) is effective for facili16 tating the attainment of the goal described in para17 graph (2).

18 ‘‘(C) To the extent practicable, and when nec19 essary to facilitate achievement of the goal described

20 in paragraph (2), the agency head shall make ad21 vance payments under section 305 of the Federal

22 Property and Administrative Services Act of 1949 to

23 contractors described in paragraph (2) of this sub24 section. The Federal Acquisition Regulation shall pro25 vide guidance to contracting officers for making ad-
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1 vance payments to entities described in subsection

2 (a)(1) of this section under section 305 of the Federal

3 Property and Administrative Services Act of 1949.

4 ‘‘(D) To the extent practicable and when nec5 essary to facilitate achievement of the goal described

6 in paragraph (2), the agency head may enter into

7 contracts using less than full and open competitive

8 procedures (including awards under section 8(a)) and

9 partial set asides for entities described in paragraph

10 (2), but shall, except when using competition open

11 only to small businesses, pay a price not exceeding

12 fair market cost by more than 10 percent in payment

13 per contract to contractors or subcontractors described

14 in paragraph (2). The agency head shall adjust the

15 percentage specified in the preceding sentence for any

16 industry category if available information clearly in17 dicates that nondisadvantaged small business con18 cerns in such industry category are generally being

19 denied a reasonable opportunity to compete for con20 tracts because of the use of that percentage in the ap21 plication of this paragraph.

22 ‘‘(E) To the extent practicable, the agency head

23 shall maximize the number of socially disadvantaged

24 small business concerns participating in the program.
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1 ‘‘(F) The Administrator for Federal Procurement

2 Policy, in consultation with the Administration, shall

3 prescribe regulations which provide for the following:

4 ‘‘(i) Procedures or guidance for contracting

5 officers to provide incentives for prime contrac6 tors described in paragraph (2) to increase sub7 contractor awards to entities described in such

8 paragraph.

9 ‘‘(ii) A requirement that contracting officers

10 emphasize the award of contracts to entities de11 scribed in paragraph (2) in all industry cat12 egories, including those categories in which such

13 entities have not traditionally dominated.

14 ‘‘(iii) Guidance to executive agency person15 nel on the relationship among the following pro16 grams:

17 ‘‘(I) The program implementing this

18 subsection.

19 ‘‘(II) The program established under

20 section 8(a).

21 ‘‘(III) The small business set-aside pro22 gram established under subsection (a).

23 ‘‘(iv) With respect to an agency procure24 ment which is reasonably likely to be set aside

25 for entities described in paragraph (2), a re-
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1 quirement that, to the maximum extent prac2 ticable, the procurement be designated as such a

3 set-aside before the solicitation for the procure4 ment is issued.

5 ‘‘(v) Policies and procedures that, to the

6 maximum extent practicable, will ensure that

7 current levels in the number or dollar value of

8 contracts awarded under the program established

9 under section 8(a) and under the small business

10 set-aside program established under subsection

11 (a) of this section are maintained and that every

12 effort is made to provide new opportunities for

13 contract awards to eligible entities, in order to

14 meet the goal of paragraph (2) of this subsection.

15 ‘‘(vi) Implementation of this section in a

16 manner which will not alter the procurement

17 process under the program established under sec18 tion 8(a).

19 ‘‘(vii) A requirement that one factor used in

20 evaluating the performance of a contracting offi21 cer will be the ability of the officer to increase

22 contract awards to entities described in para23 graph (2).

24 ‘‘(viii) Increased technical assistance to en25 tities described in paragraph (2).
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1 ‘‘(7)(A) Whoever for the purpose of securing a contract

2 or subcontract under paragraph (2), misrepresents the sta3 tus of any concern or person as a small business concern

4 owned and controlled by socially disadvantaged individuals

5 (as described in paragraph (2)) shall be punished by im6 prisonment for not more than 1 year or a fine of not less

7 than $10,000, or both.

8 ‘‘(B) The Federal Acquisition Regulation shall pro9 hibit awarding a contract under this section to an entity

10 described in paragraph (2) unless the entity agrees to com11 ply with the requirements of subsection (o)(1).

12 ‘‘(8)(A) To the maximum extent practicable, the head

13 of the agency shall—

14 ‘‘(i) ensure that no particular industry category

15 bears a disproportionate share of the contracts award16 ed to attain the goal established by paragraph (2);

17 and

18 ‘‘(ii) ensure that contracts awarded to attain the

19 goal established by paragraph (2) are made across the

20 broadest possible range of industry categories.

21 ‘‘(B) Under procedures prescribed by the head of the

22 agency in consultation with the Administration, a person

23 may request the agency head to determine whether the use

24 of small disadvantaged business set-asides by a contract ac25 tivity of the agency has caused a particular industry cat-
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1 egory to bear a disproportionate share of the contracts

2 awarded to attain the goal established for that contracting

3 activity for the purposes of this subsection. Upon making

4 a determination that a particular industry category is

5 bearing a disproportionate share, the agency head shall take

6 appropriate actions to limit the contracting activity’s use

7 of set-asides in awarding contracts in that particular in8 dustry category and to increase the contracting activity’s

9 use of set-asides in awarding contracts in other industry

10 categories.

11 ‘‘(9)(A) The Administrator for Federal Procurement

12 Policy, in consultation with the Administration, shall issue

13 regulations to ensure that potential contractors submitting

14 sealed bids or competitive proposals to the executive agency

15 for procurement contracts to be awarded under the program

16 provided for by this subsection are complying with applica17 ble subcontracting plan requirements of section 8(d).

18 ‘‘(B) The regulations required by subparagraph (A)

19 shall ensure that, with respect to a sealed bid or competitive

20 proposal for which the bidder or offeror is required to nego21 tiate or submit a subcontracting plan under section 8(d),

22 the contracting plan shall be a factor in evaluating the bid

23 or proposal.

24 ‘‘(10)(A) Not later than December 15 of each year, the

25 Administration shall submit to Congress a report on the
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1 progress of each executive agency toward attaining the goal

2 of paragraph (2) during the preceding fiscal year.

3 ‘‘(B) The report required under subparagraph (A)

4 shall include a description of—

5 ‘‘(i) the degree of participation by small business

6 concerns owned and controlled by socially disadvan7 taged individuals in procurements conducted by each

8 executive agency, including information concerning

9 the race and gender of such individuals; and

10 ‘‘(ii) the extent of compliance by executive agen11 cies with the goals for participation by such business

12 concerns required by paragraph (1), relating to Gov13 ernment-wide small business, small disadvantaged

14 business, and women-owned small business goals for

15 procurement contracts.

16 ‘‘(11) This subsection shall not be construed as modify17 ing or superseding any other provision of law establishing

18 the program under section 2323 of title 10, United States

19 Code, or a goal or requirement for an agency to obligate

20 5 percent, or more than 5 percent, of the total value of all

21 prime contract awards entered into by the agency for a fis22 cal year with any entity described in paragraph (2).

23 ‘‘(12) For the purposes of this subsection, an individ24 ual shall be considered to be socially disadvantaged if the

25 individual has a physical or mental impairment that—
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1 ‘‘(A) substantially limits one or more of the

2 major life activities of the individual; and

3 ‘‘(B) has been found by the Administration to re4 sult in a socially disadvantaged status for the class

5 of individuals having such impairment.

6 ‘‘(13)(A) Not later than 1 year after the date of the

7 enactment of this paragraph, the Administration shall issue

8 regulations to make uniform the procedure by which a small

9 business concern may qualify as a small business concern

10 owned and controlled by socially disadvantaged individuals

11 for the purposes of this subsection.

12 ‘‘(B) Regulations to be issued pursuant to subpara13 graph (A) shall provide, at a minimum, for the following:

14 ‘‘(i) Specification of the requirements for quali15 fying as a small business concern owned and con16 trolled by socially disadvantaged individuals for the

17 purposes of this subsection.

18 ‘‘(ii) Establishment of a uniform procedure to be

19 applied by each executive agency in the certification

20 of small business concerns meeting the requirements

21 specified pursuant to clause (i).

22 ‘‘(C) For the purposes of this subsection, an executive

23 agency may not require a small business concern for which

24 a certification issued by another executive agency pursuant

25 to subparagraph (B)(ii) is in effect to make any additional
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1 showing that the small business concern qualifies as a small

2 business concern owned and controlled by socially disadvan3 taged individuals.

4 ‘‘(14) This subsection shall not be construed as modify5 ing or superseding eligibility requirements for participa6 tion in any other program established by this Act.

7 ‘‘(15) This subsection applies to each of fiscal years

8 1994 through 2000.’’.

9 SEC. 6. ENCOURAGEMENT OF INNOVATIVE PAYMENT METH10 ODS.

11 Section 15(k)(5) of the Small Business Act (15 U.S.C.

12 644(k)(5)) is amended by striking the semicolon at the end

13 and inserting the following: ‘‘, and encourage procurement

14 officials to implement innovative payment methods, includ15 ing, but not limited to, advance payments or payments for

16 mobilization costs, in the award or negotiation of contracts

17 to small business concerns,’’.

18 SEC. 7. MAINTAINING SMALL BUSINESS ACCESS TO CON19 TRACTING OPPORTUNITIES.

20 Section 8 of the Small Business Act (15 U.S.C. 637)

21 is amended—

22 (1) in subsection (e)(1)(A), by striking ‘‘the

23 small purchase threshold’’ each place it appears and

24 inserting ‘‘$25,000’’;
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1 (2) in subsection (g)(1), by redesignating sub2 paragraphs (A), (B), (C), (D), and (E) as subpara3 graphs (B), (C), (D), (E), and (F), respectively, and

4 by inserting before subparagraph (B), as so redesig5 nated, the following:

6 ‘‘(A) the proposed procurement is conducted by

7 means of electronic commerce under the Federal Ac8 quisition Computer Network System established pur9 suant to the Office of Federal Procurement Policy

10 Act;’’;

11 (3) in subsection (e)(1)(B), by striking ‘‘(B)’’

12 and all that follows before clause (i) and inserting the

13 following:

14 ‘‘(B) an executive agency soliciting offers for the

15 purchase of property or services shall post in a public

16 place at the contracting office a notice of the contract17 ing opportunity (meeting the standards of subsection

18 (f)) and receive offers in response to such notice for

19 a period of not less than 10 days—’’; and

20 (4) in subsection (e), by adding at the end the

21 following:

22 ‘‘(4) Whenever an executive agency conducts a procure23 ment by means of electronic commerce under the Federal

24 Acquisition Computer Network System established pursu25 ant to the Office of Federal Procurement Policy Act, the
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1 solicitation of offers shall prescribe a deadline for the sub2 mission of offers that—

3 ‘‘(A) in the case of a solicitation to furnish a

4 commercial item, is not less than 5 days;

5 ‘‘(B) in the case of a solicitation to furnish any

6 other type of product, is not less than 10 days;

7 ‘‘(C) in the case of a solicitation to furnish advi8 sory and assistance services, is not less than 20 days;

9 and

10 ‘‘(D) in the case of solicitation to furnish any

11 other type of service, is not less than 15 days.’’.

12 SEC. 8. SIMPLIFIED ACQUISITION THRESHOLD.

13 (a) MEASURING EFFECT ON SMALL BUSINESS PAR14 TICIPATION.—Until October 1, 1999, procuring activities

15 shall report procurement awards with a dollar value of at

16 least $10,000, but less than $100,000, in conformity with

17 the procedures or the reporting of a contract award in excess

18 of $25,000 that were in effect on October 1, 1992.

19 (b) FAST PAYMENT PROCEDURES.—

20 (1) RESPONSIBILITIES OF THE ADMINIS21 TRATOR.—The Administrator of the Small Business

22 Administration shall propose a modification to the

23 Federal Acquisition Regulation that provides for the

24 use of the payments terms described in paragraph (2),
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1 and for the disbursement of payment through elec2 tronic fund transfer, whenever circumstance permits.

3 (2) REQUIRED PAYMENT TERMS.—Unless miti4 gating circumstances preclude, the payment terms for

5 a purchase or classes of purchases made pursuant to

6 simplified acquisition procedures shall require pay7 ment, in accordance with the provisions of chapter 39

8 of title 31, United States Code, not later than 15 days

9 after the date of receipt of a proper invoice for prod10 ucts delivered or services performed if—

11 (A) in the case of a purchase of property,

12 title to the property will vest in the Government

13 upon delivery of the property to the Government

14 or to a common carrier; and

15 (B) in the case of property or services for

16 which payment is due before the Government’s

17 acceptance of the property or services, the vendor

18 provides commercial or other appropriate war19 ranties assuring that the property or services

20 purchased conform to the requirements set forth

21 in the Government’s purchase offer.
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1 SEC. 9. EXPEDITED RESOLUTION OF CONTRACT ADMINIS2 TRATION MATTERS.

3 (a) REGULATIONS REQUIRED.—The Federal Acquisi4 tion Regulation shall include provisions that require a con5 tracting officer—

6 (1) to make every reasonable effort to respond in

7 writing within 30 days to any written request to a

8 matter relating to the administration of a contact

9 that is received from a small business concern; and

10 (2) in the event that the contracting officer is

11 unable to render a decision within the 30-day period,

12 to transmit to the contractor within such period a

13 written notification of a specific date by which the

14 contracting officer expects to render a decision.

15 (b) RULE OF CONSTRUCTION.—Nothing in this section

16 shall be considered as creating any rights under the Con17 tract Disputes Act of 1978.

18 (c) DEFINITION.—In this section, the term ‘‘small busi19 ness concern’’ means a business concern that meets the re20 quirements of section 3(a) of the Small Business Act and

21 the regulations promulgated pursuant to such section.

22 SEC. 10. PROTECTIONS FOR SMALL BUSINESS.

23 Section 15(b) of the Small Business Act (15 U.S.C.

24 644(b)) is amended by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’

25 and by adding at the end the following:
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1 ‘‘(2) No contracting procurement agency shall use any

2 market acceptance criterion which would preclude small

3 business concerns from being eligible for the contract award

4 solely on the basis of being unable to supply a quantity

5 of product when the same amount of product could be ob6 tained from a number of small business suppliers.’’.

7 SEC. 11. DEADLINES FOR ISSUANCE OF REGULATIONS.

8 (a) PROPOSED REGULATIONS.—Proposed amendments

9 to the Federal Acquisition Regulation or proposed Small

10 Business Administration regulations shall be published not

11 later than 120 days after the date of the enactment of this

12 Act for the purpose of obtaining public comment pursuant

13 to either section 22 of the Office of Federal Procurement

14 Policy Act or the Administrative Procedures Act, as appro15 priate. The public shall be afforded not less than 60 days

16 to submit comments.

17 (b) FINAL REGULATIONS.—Final regulations shall be

18 published and become effective not later than 270 days after

19 the date of the enactment of this Act.

20 SEC. 12. ANNUAL REPORTS.

21 (a) CORRECTION OF DATA.—The Administrator for

22 Federal Procurement Policy, in consultation with the Ad23 ministration, the Secretary of Commerce, the Secretary of

24 Defense, and other appropriate agencies, shall supervise the
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1 collection of data (either actual data or data acquired by

2 valid statistical sample) on—

3 (1) the number of small business concerns owned

4 and controlled by socially disadvantaged individuals

5 or owned and controlled by women;

6 (2) the number of such small business concerns

7 which compete for or otherwise apply for Federal con8 tracts; and

9 (3) the number and dollar amounts of Federal

10 contracts awarded to such small business concerns.

11 Such statistics shall be gathered on an annual basis and

12 shall be done by industry category or classes of such cat13 egories.

14 (b) REPORTS.—On the basis of the statistics required

15 to be collected under subsection (a), and on the basis of other

16 sources of relevant information, the President shall report

17 annually to Congress on the progress that small business

18 concerns described in subsection (a) are making in obtain19 ing a fair and equitable share of Federal procurement dol20 lars. The President shall also assess the extent to which the

21 Federal procurement system, or parts thereof, continues to

22 require affirmative actions, such as the goals set forth in

23 section 15(g) of the Small Business Act (as amended by sec24 tion 5 of this Act) in order to remedy past or presently
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1 remaining discrimination against such small business con2 cerns.

3 SEC. 13. SMALL BUSINESS CONCERNS OWNED BY WOMEN.

4 (a) SUBCONTRACT PARTICIPATION.—Section 8(d) of

5 the Small Business Act (15 U.S.C 637(d)) is amended—

6 (1) by striking ‘‘and small business concerns

7 owned and controlled by socially and economically

8 disadvantaged individuals’’ both places it appears in

9 paragraph (1), both places it appears in paragraph

10 (3)(A), in paragraph (4)(D), in subparagraphs (A)

11 and (F) of paragraph (6), and in paragraph (10)(B)

12 and inserting ‘‘, small business concerns owned and

13 controlled by socially disadvantaged individuals, and

14 small business concerns owned and controlled by

15 women’’;

16 (2) by striking subparagraph (D) in paragraph

17 (3) and inserting the following:

18 ‘‘(E) Contractors acting in good faith may relay

19 on written representations by their subcontractors re20 garding their status as either small business concern,

21 a small business concern owned and controlled by so22 cially disadvantaged individuals, or a small business

23 concern owned and controlled by women.’’;

24 (3) in paragraph (3), by inserting after subpara25 graph (C) the following new subparagraph (D):
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1 ‘‘(D) The term ‘small business concern owned

2 and controlled by women’ shall mean a small business

3 concern—

4 ‘‘(i) which is at least 51 percent owned by

5 one or more women; or, in the case of any pub6 licly owned business, at least 51 percent of the

7 stock of which is owned by one or more women;

8 and

9 ‘‘(ii) whose management and daily business

10 operations are controlled by one or more

11 women.’’;

12 (4) in paragraph (4)(E), by inserting ‘‘and for

13 small business concerns owned and controlled by

14 women’’ after ‘‘as defined in paragraph (3) of this

15 subsection’’; and

16 (5) in paragraph (6)(C), by striking ‘‘and small

17 business concerns owned and controlled by the socially

18 and economically disadvantaged individuals’’ and in19 serting ‘‘, small business concerns owned and con20 trolled by socially disadvantaged individuals, and

21 small business concerns owned and controlled by

22 women’’.

23 (b) MISREPRESENTATIONS OF STATUS.—(1) Sub24 section (d)(1) of section 16 of such Act (15 U.S.C. 645) is

25 amended by striking ‘‘or ‘small business concern owned and
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1 controlled by socially and economically disadvantaged indi2 viduals’ ’’ and inserting the following: ‘‘, or a ‘small busi3 ness concern owned and controlled by socially and economi4 cally disadvantaged individuals’, or a ‘small business con5 cern owned and controlled by socially disadvantaged indi6 viduals’, or a ‘small business concern owned and controlled

7 by women’ ’’.

8 (2) Subsection (e) of such section is amended by strik9 ing ‘‘or ‘small business concern owned and controlled by

10 socially and economically disadvantaged individuals’ ’’ and

11 inserting ‘‘, or a ‘small business concern owned and con12 trolled by socially and economically disadvantaged individ13 uals’, or a ‘small business concern owned and controlled by

14 socially disadvantaged individuals’, or a ‘small business

15 concern owned and controlled by women’ ’’.

16 (c) DEFINITION.—Section 3 of such Act (15 U.S.C.

17 632) is amended by adding at the end the following:

18 ‘‘(n) For the purposes of this Act, a small business con19 cern is a small business concern owned and controlled by

20 women if—

21 ‘‘(1) at least 51 percent of small business concern

22 is owned by 1 or more women or, in the case of pub23 licly owned business, at least 51 percent of the stock

24 of which is owned by 1 or more women; and
26

•HR 4263 CDH

1 ‘‘(2) the management and daily business oper2 ations of the business are controlled by 1 or more

3 women.’’.

Æ

HR 4263 CDH——2