II

107TH CONGRESS

1ST SESSION S. 1472

To amend the Small Business Act to promote the involvement of small

business concerns and small business joint ventures in certain types

of procurement contracts, to establish the Small Business Procurement

Competition Program, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 26, 2001

Mr. KERRY (for himself and Mr. BOND) introduced the following bill; which

was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To amend the Small Business Act to promote the involvement of small business concerns and small business joint

ventures in certain types of procurement contracts, to

establish the Small Business Procurement Competition

Program, 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 Pro5 curement Competition Act of 2001’’.
2

•S 1472 IS

1 SEC. 2. DEFINITION OF COVERED CONTRACTS.

2 Section 15(e)(4) of the Small Business Act (15

3 U.S.C. 644(e)(4)) is amended—

4 (1) by inserting after ‘‘bundled contract’’ the

5 following: ‘‘, the aggregate dollar value of which is

6 anticipated to be less than $8,000,000, or any con7 tract, whether or not the contract is a bundled con8 tract, the aggregate dollar value of which is antici9 pated to be $8,000,000 or more’’;

10 (2) by striking ‘‘In the’’ and inserting the fol11 lowing:

12 ‘‘(A) IN GENERAL.—In the’’; and

13 (3) by adding at the end the following:

14 ‘‘(B) CONTRACTING GOALS.—

15 ‘‘(i) IN GENERAL.—A contract award

16 under this paragraph to a team that is

17 comprised entirely of small business con18 cerns shall be counted toward the small

19 business contracting goals of the con20 tracting agency, as required by this Act.

21 ‘‘(ii) PREPONDERANCE TEST.—The

22 ownership of the small business that con23 ducts the preponderance of the work in a

24 contract awarded to a team described in

25 clause (i) shall determine the category or

26 type of award for purposes of meeting the
3

•S 1472 IS

1 contracting goals of the contracting agen2 cy.’’.

3 SEC. 3. PROPORTIONATE WORK REQUIREMENTS FOR BUN4 DLED CONTRACTS.

5 (a) SECTION 8.—Section 8(a)(14)(A) of the Small

6 Business Act (15 U.S.C. 637(a)(14)(A)) is amended—

7 (1) in clause (i), by striking ‘‘and’’ at the end;

8 (2) in clause (ii), by striking the period at the

9 end and inserting ‘‘; and’’; and

10 (3) by adding at the end the following:

11 ‘‘(iii) notwithstanding clauses (i) and (ii), in the

12 case of a bundled contract—

13 ‘‘(I) the concern will perform work for at

14 least 33 percent of the aggregate dollar value of

15 the anticipated award;

16 ‘‘(II) no other concern will perform a

17 greater proportion of the work on that contract;

18 and

19 ‘‘(III) no other concern that is not a small

20 business concern will perform work on the con21 tract.’’.

22 (b) QUALIFIED HUBZONE SMALL BUSINESS CON23 CERNS.—Section 3(p)(5)(A)(i)(III) of the Small Business

24 Act (15 U.S.C. 632(p)(5)(A)(i)(III)) is amended—

25 (1) in item (bb), by striking ‘‘and’’ at the end;
4

•S 1472 IS

1 (2) by redesignating item (cc) as item (dd); and

2 (3) by inserting after item (bb) the following:

3 ‘‘(cc) notwithstanding items

4 (aa) and (bb), in the case of a

5 bundled contract, the concern will

6 perform work for at least 33 per7 cent of the aggregate dollar value

8 of the anticipated award, no

9 other concern will perform a

10 greater proportion of the work on

11 that contract, and no other con12 cern that is not a small business

13 concern will perform work on the

14 contract; and’’.

15 (c) SECTION 15.—Section 15(o)(1) of the Small

16 Business Act (15 U.S.C. 644(o)(1)) is amended—

17 (1) in subparagraph (A), by striking ‘‘and’’ at

18 the end;

19 (2) in subparagraph (B), by striking the period

20 at the end and inserting ‘‘; and’’; and

21 (3) by adding at the end the following:

22 ‘‘(C) notwithstanding subparagraphs (A) and

23 (B), in the case of a bundled contract—
5

•S 1472 IS

1 ‘‘(i) the concern will perform work for at

2 least 33 percent of the aggregate dollar value of

3 the anticipated award;

4 ‘‘(ii) no other concern will perform a great5 er proportion of the work on that contract; and

6 ‘‘(iii) no other concern that is not a small

7 business concern will perform work on the con8 tract.’’.

9 SEC. 4. SMALL BUSINESS PROCUREMENT COMPETITION

10 PILOT PROGRAM.

11 (a) DEFINITIONS.—In this section—

12 (1) the term ‘‘Administrator’’ means the Ad13 ministrator of the Small Business Administration;

14 (2) the term ‘‘Federal agency’’ has the same

15 meaning as in section 3 of the Small Business Act

16 (15 U.S.C. 632);

17 (3) the term ‘‘Program’’ means the Small Busi18 ness Procurement Competition Program established

19 under subsection (b);

20 (4) the term ‘‘small business concern’’ has the

21 same meaning as in section 3 of the Small Business

22 Act (15 U.S.C. 632); and

23 (5) the term ‘‘small business-only joint ven24 tures’’ means a team described in section 15(e)(4) of
6

•S 1472 IS

1 the Small Business Act (15 U.S.C. 644(e)(4)) com2 prised of only small business concerns.

3 (b) ESTABLISHMENT OF PROGRAM.—The Adminis4 trator shall establish in the Small Business Administration

5 a pilot program to be known as the ‘‘Small Business Pro6 curement Competition Program’’.

7 (c) PURPOSES OF PROGRAM.—The purposes of the

8 Program are—

9 (1) to encourage small business-only joint ven10 tures to compete for contract awards to fulfill the

11 procurement needs of Federal agencies;

12 (2) to facilitate the formation of joint ventures

13 for procurement purposes among small business con14 cerns;

15 (3) to engage in outreach to small business-only

16 joint ventures for Federal agency procurement pur17 poses; and

18 (4) to engage in outreach to the Director of the

19 Office of Small and Disadvantaged Business Utiliza20 tion and the procurement officer within each Federal

21 agency.

22 (d) OUTREACH.—Under the Program, the Adminis23 trator shall establish procedures to conduct outreach to

24 small business concerns interested in forming small busi25 ness-only joint ventures for the purpose of fulfilling pro-
7

•S 1472 IS

1 curement needs of Federal agencies, subject to the rules

2 of the Administrator, in consultation with the heads of

3 those Federal agencies.

4 (e) REGULATORY AUTHORITY.—The Administrator

5 shall promulgate such regulations as may be necessary to

6 carry out this section.

7 (f) SMALL BUSINESS ADMINISTRATION DATA8 BASE.—The Administrator shall establish and maintain a

9 permanent database that identifies small business con10 cerns interested in forming small business-only joint ven11 tures, and shall make the database available to each Fed12 eral agency and to small business concerns in electronic

13 form to facilitate the formation of small business-only

14 joint ventures.

15 (g) TERMINATION OF PROGRAM.—The Program

16 (other than the database established under subsection (f))

17 shall terminate 3 years after the date of enactment of this

18 Act.

19 (h) REPORT TO CONGRESS.—Not later than 60 days

20 before the date of termination of the Program, the Admin21 istrator shall submit a report to Congress on the results

22 of the Program, together with any recommendations for

23 improvements to the Program and its potential for use

24 Governmentwide.
8

•S 1472 IS

1 (i) RELATIONSHIP TO OTHER LAWS.—Nothing in

2 this section waives or modifies the applicability of any

3 other provision of law to procurements of any Federal

4 agency in which small business-only joint ventures may

5 participate under the Program.

Æ