II

103D CONGRESS

2D SESSION S. 2478

To amend the Small Business Act to enhance the business development

opportunities of small business concerns owned and controlled by socially

and economically disadvantaged individuals, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 29 (legislative day, SEPTEMBER 12), 1994

Mr. KERRY (for himself, Mr. BUMPERS, Mr. PRESSLER, Mr. NUNN, Mr.

CHAFEE, Mr. INOUYE, Mr. BURNS, Mr. LAUTENBERG, Ms. MOSELEYBRAUN, Mr. CAMPBELL, Mr. WELLSTONE, Mr. WOFFORD, and Mr.

KOHL) introduced the following bill; which was read twice and referred

to the Committee on Small Business

A BILL

To amend the Small Business Act to enhance the business

development opportunities of small business concerns

owned and controlled by socially and economically disadvantaged individuals, 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 ‘‘Business Development

5 Opportunity Act of 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents for this Act is as follows:
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Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—AMENDMENTS TO THE MINORITY SMALL BUSINESS

AND CAPITAL OWNERSHIP DEVELOPMENT PROGRAM

PART A—PROGRAM ORGANIZATION AND PARTICIPATION STANDARDS

Sec. 101. Minority Enterprise Development Program.

Sec. 102. Consolidation of eligibility review function.

Sec. 103. Clarification of various eligibility criteria.

Sec. 104. Clarification of certain additional eligibility criteria imposed by regulation.

Sec. 105. Enhancing due process in eligibility determinations.

Sec. 106. Improving geographic distribution of program participants.

PART B—BUSINESS DEVELOPMENT ASSISTANCE

Sec. 111. Developmental assistance authorized for program participants.

Sec. 112. Expanding the eligible uses for loans under existing loan programs

for program participants.

Sec. 113. Test program for the use of surety bond waivers.

Sec. 114. Targeting section 7(j) business management assistance to program

participants.

Sec. 115. Other enhancements to the section 7(j) management assistance program.

Sec. 116. Developmental teaming.

PART C—IMPROVING ACCESS TO EQUITY FOR PROGRAM GRADUATES

Sec. 121. Continued contract performance.

Sec. 122. Continued program participation.

PART D—CONTRACT AWARD AND ELIGIBILITY MATTERS

Sec. 131. Contract award procedures.

Sec. 132. Timely determination of eligibility for contract award.

Sec. 133. Competition requirements.

Sec. 134. Standard industrial classification codes.

Sec. 135. Use of contract support levels.

Sec. 136. Business mix requirements.

Sec. 137. Encouraging self-marketing.

Sec. 138. Bundling of contractor capabilities.

PART E—TRIBALLY OWNED CORPORATIONS

Sec. 141. Management and control of business operations.

Sec. 142. Joint ventures.

Sec. 143. Rule of construction regarding the Buy Indian Act.

PART F—CONTRACT ADMINISTRATION MATTERS

Sec. 151. Accelerated payment.

Sec. 152. Expedited resolution of contract administration matters.

Sec. 153. Availability of alternative dispute resolution.

PART G—PROGRAM ADMINISTRATION

Sec. 161. Simplification of annual report to Congress.
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Sec. 162. Reduction in reporting by program participants.

TITLE II—CONTRACTING PROGRAM FOR CERTAIN SMALL

BUSINESS CONCERNS

PART A—CIVILIAN AGENCIES PROGRAM

Sec. 201. Procurement procedures.

Sec. 202. Implementation through the Federal Acquisition Regulation.

Sec. 203. Sunset.

PART B—ELIGIBILITY DETERMINATIONS REGARDING STATUS

Sec. 211. Improved status protest system.

Sec. 212. Conforming amendment.

TITLE III—EXPANDING SUBCONTRACTING OPPORTUNITIES

Sec. 301. Evaluating subcontract participation in awarding contracts.

Sec. 302. Subcontracting goals for certain small business concerns.

Sec. 303. Small business participation goals.

Sec. 304. Improved notice of subcontracting opportunities.

TITLE IV—REPEALS AND TECHNICAL AMENDMENTS

PART A—REPEALS

Sec. 401. Loan program superseded by section 7(a) loan program.

Sec. 402. Superseded loan program relating to energy.

Sec. 403. Employee training program of limited scope.

Sec. 404. Expired provision.

Sec. 405. Expired direction to the Administration.

PART B—TECHNICAL AMENDMENTS

Sec. 411. Technical amendments.

TITLE V—DEFINITIONS

Sec. 501. Historically underutilized businesses.

Sec. 502. Emerging small business concern.

TITLE VI—REGULATORY IMPLEMENTATION AND EFFECTIVE

DATES

PART A—ASSURING TIMELY REGULATORY IMPLEMENTATION

Sec. 601. Deadlines for issuance of regulations.

Sec. 602. Regulatory implementation of prior legislation.

PART B—EFFECTIVE DATES

Sec. 611. Effective dates.
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1 TITLE I—AMENDMENTS TO THE

2 MINORITY SMALL BUSINESS

3 AND CAPITAL OWNERSHIP

4 DEVELOPMENT PROGRAM

5 PART A—PROGRAM ORGANIZATION AND

6 PARTICIPATION STANDARDS

7 SEC. 101. MINORITY ENTERPRISE DEVELOPMENT PRO8 GRAM.

9 (a) PROGRAM ESTABLISHED.—Section 7(j)(10) of

10 the Small Business Act (15 U.S.C. 636(j)(10)) is amend11 ed—

12 (1) by striking the subsection designation and

13 the first 2 sentences and inserting the following:

14 ‘‘(10) MINORITY ENTERPRISE DEVELOPMENT

15 PROGRAM.—

16 ‘‘(A) ESTABLISHMENT.—There is estab17 lished within the Administration a Minority En18 terprise Development Program (hereafter in

19 this paragraph referred to as the ‘Program’),

20 which shall be administered by an Associate Ad21 ministrator in accordance with this paragraph

22 and section 8(a).’’;

23 (2) by striking subparagraph (B);

24 (3) by striking ‘‘(A) The Program shall—’’ and

25 inserting the following:
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1 ‘‘(B) PROGRAM GOALS.—The Program

2 shall—’’; and

3 (4) in subparagraph (C)(i), by striking ‘‘partici4 pating in any program or activity conducted under

5 the authority of this paragraph or’’.

6 (b) PROGRAM PHASES.—Section 7(j)(12) of the

7 Small Business Act (15 U.S.C. 636(j)(12)) is amended to

8 read as follows:

9 ‘‘(12) SEGMENTING OF MINORITY ENTERPRISE

10 DEVELOPMENT PROGRAM.—

11 ‘‘(A) IN GENERAL.—In addition to such

12 other segments as the Administrator deems ap13 propriate, the Minority Enterprise Development

14 Program established in paragraph (10) shall

15 consist of the following 3 phases:

16 ‘‘(i) The Business Creation Phase.

17 ‘‘(ii) The Business Development

18 Phase.

19 ‘‘(iii) The Business Development

20 (Preferential Contracting) Phase.

21 ‘‘(B) ELIGIBILITY FOR PREFERENTIAL

22 CONTRACTING.—Only a firm participating in

23 the Business Development (Preferential Con24 tracting) Phase shall be eligible for award of

25 Federal contracts pursuant to section 8(a) (and
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1 shall be referred to as a ‘Program Participant’

2 for the purposes of this section and section

3 8(a)).

4 ‘‘(C) PARTICIPATION BY FIRMS.—Except

5 as provided in section 10(c), a firm may partici6 pate in the Business Development (Preferential

7 Contracting) Phase described in subparagraph

8 (A)(iii) for a total period of not more than 9

9 years, which period shall be divided into the fol10 lowing 2 stages:

11 ‘‘(i) A developmental stage (of not

12 more than the first 5 years).

13 ‘‘(ii) A transitional stage.’’.

14 (c) CONFORMING AMENDMENTS.—The Small Busi15 ness Act (15 U.S.C. 601 et seq.) is amended—

16 (1) by striking ‘‘Minority Small Business and

17 Capital Ownership Development’’ each place it ap18 pears and inserting ‘‘Minority Enterprise Develop19 ment’’;

20 (2) by striking ‘‘Capital Ownership Develop21 ment’’ each place it appears and inserting ‘‘Minority

22 Enterprise Development’’;

23 (3) by striking ‘‘capital ownership development’’

24 each place it appears and inserting ‘‘minority enter25 prise development’’;
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1 (4) by striking ‘‘Business Opportunity Special2 ist’’ each place it appears and inserting ‘‘Business

3 Development Specialist’’; and

4 (5) by striking section 7(j)(15) and inserting

5 the following:

6 ‘‘(15) [Reserved].’’.

7 SEC. 102. CONSOLIDATION OF ELIGIBILITY REVIEW FUNC8 TION.

9 Section 7(j)(11)(E) of the Small Business Act (15

10 U.S.C. 636(j)(11)(E)) is amended by striking the third

11 sentence.

12 SEC. 103. CLARIFICATION OF VARIOUS ELIGIBILITY CRI13 TERIA.

14 (a) TRIBALLY OWNED CORPORATIONS.—Sections

15 7(j) and 8(a) of the Small Business Act (15 U.S.C. 636(j),

16 637(a)) are each amended by striking ‘‘an economically

17 disadvantaged Indian tribe’’ each place it appears and in18 serting ‘‘an Indian tribe’’.

19 (b) NATIVE HAWAIIAN ORGANIZATIONS.—Section

20 8(a)(4)(A) of the Small Business Act (15 U.S.C.

21 637(a)(4)(A)) is amended by striking ‘‘an economically

22 disadvantaged Native Hawaiian organization’’ each place

23 it appears and inserting ‘‘a Native Hawaiian organiza24 tion’’.
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1 (c) PRESUMPTION OF ECONOMIC DISADVANTAGE.—

2 Section 8(a)(6)(A) of the Small Business Act (15 U.S.C.

3 637(a)(6)(A)) is amended by striking the last sentence.

4 SEC. 104. CLARIFICATION OF CERTAIN ADDITIONAL ELIGI5 BILITY CRITERIA IMPOSED BY REGULATION.

6 Section 7(j)(11)(G) of the Small Business Act (15

7 U.S.C. 636(j)(11)(G)) is amended to read as follows:

8 ‘‘(G) An applicant shall not be denied admission into

9 the Minority Enterprise Development Program established

10 in paragraph (10) based solely on a determination by the

11 Division that—

12 ‘‘(i) specific contract opportunities are unavail13 able to assist in the development of such concern,

14 unless—

15 ‘‘(I) the Government has not previously

16 procured and is unlikely to procure the types of

17 products or services offered by the concern; and

18 ‘‘(II) the purchases of such products or

19 services by the Federal Government will not be

20 in quantities sufficient to support the devel21 opmental needs of the applicant and other Pro22 gram Participants providing the same or similar

23 items or services;

24 ‘‘(ii) the prospective Program Participant firm

25 has not been in operation for a period of time speci-
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1 fied by the Administration prior to making applica2 tion to the Program, if the prospective Program

3 Participant firm can demonstrate that—

4 ‘‘(I) the individual or individuals upon

5 whom eligibility is to be based have substantial

6 and demonstrated business management experi7 ence;

8 ‘‘(II) the prospective Program Participant

9 has demonstrated technical expertise necessary

10 to carry out its business plan with a substantial

11 likelihood of success;

12 ‘‘(III) the prospective Program Participant

13 has, or can demonstrate its ability to timely ob14 tain, adequate capital to carry out its business

15 plan;

16 ‘‘(IV) the prospective Program Participant

17 can demonstrate the competitive award and per18 formance (either ongoing or completed) of con19 tracts from governmental or nongovernmental

20 sources in the primary industry category re21 flected in its business plan; and

22 ‘‘(V) the prospective Program Participant

23 has, or can demonstrate its ability to timely ob24 tain, the personnel, facilities, equipment, and

25 any other requirements needed to perform con-
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1 tracts of the type likely to be awarded to the

2 firm pursuant to section 8(a);

3 ‘‘(iii) the individual or individuals upon whom

4 eligibility is to be based have not been working full

5 time at managing the prospective Program Partici6 pant firm for a period specified by the Administra7 tion prior to making application to the Program;

8 ‘‘(iv) the prospective Program Participant is a

9 tribally owned corporation whose chief executive offi10 cer (or chief operating officer) is other than a Native

11 American, if the governing body of the Indian tribe

12 certifies to the Administration that it was unable to

13 hire a qualified Native American after conducting a

14 national recruitment for such individual; or

15 ‘‘(v) the prospective Program Participant lacks

16 reasonable prospects for future success despite ac17 cess to one or more of the types of developmental as18 sistance provided for in paragraph (13), unless such

19 determination is supported by specific findings.’’.

20 SEC. 105. ENHANCING DUE PROCESS IN ELIGIBILITY DE21 TERMINATIONS.

22 Section 7(j)(11)(H) of the Small Business Act (15

23 U.S.C. 636(j)(11)(H)) is amended—

24 (1) by striking ‘‘(H)’’ and inserting ‘‘(H)(i)’’;

25 and
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1 (2) by adding at the end the following new

2 clauses:

3 ‘‘(ii) The Associate Administrator for Minority En4 terprise Development shall—

5 ‘‘(I) notify an applicant, in writing, of the de6 nial of an application under clause (i), stating the

7 specific determinations supported by specific find8 ings in support of the denial; and

9 ‘‘(II) provide the applicant an opportunity to

10 respond (or to modify the business organization of

11 the applicant in response) to matters raised in the

12 notice of denial and to seek a reconsideration of the

13 application.

14 ‘‘(iii) If the application is denied upon reconsideration

15 pursuant to clause (ii) and the denial is based upon deter16 minations or findings not previously cited as a basis for

17 the initial denial of the application, the Associate Adminis18 trator for Minority Enterprise Development shall provide

19 the applicant an opportunity to respond to the determina20 tions or findings not previously raised, or to modify the

21 business organization of the applicant in response to such

22 determinations or findings.’’.
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1 SEC. 106. IMPROVING GEOGRAPHIC DISTRIBUTION OF PRO2 GRAM PARTICIPANTS.

3 (a) ACTION PLAN REQUIRED.—The Administrator of

4 the Small Business Administration shall develop an action

5 plan for improving participation in the Minority Enter6 prise Development Program established by section 101 by

7 firms across the Nation.

8 (b) CONTENTS OF THE ACTION PLAN.—In addition

9 to such other matters as the Administrator deems appro10 priate, the action plan developed under subsection (a) shall

11 address—

12 (1) an outreach program directed at small busi13 ness concerns owned and controlled by socially and

14 economically disadvantaged individuals eligible for

15 program participation in those States with histori16 cally low rates of participation in the Minority En17 terprise Development Program (and its predecessor

18 program, the Minority Small Business and Capital

19 Ownership Development Program); and

20 (2) improved implementation of section

21 8(a)(16)(B) of the Small Business Act (relating to

22 geographic distribution of contracts awarded non23 competitively pursuant to section 8(a)(1) of such

24 Act).
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1 (c) PUBLIC PARTICIPATION.—In carrying out this

2 section, the Administrator shall seek public comment on

3 the proposals to be included in the action plan.

4 (d) SUBMISSION.—Not later than June 30, 1995, the

5 action plan developed under subsection (a) shall be sub6 mitted to the Committees on Small Business of the Senate

7 and House of Representatives.

8 PART B—BUSINESS DEVELOPMENT ASSISTANCE

9 SEC. 111. DEVELOPMENTAL ASSISTANCE AUTHORIZED FOR

10 PROGRAM PARTICIPANTS.

11 Section 7(j) of the Small Business Act (15 U.S.C.

12 636(j)) is amended—

13 (1) in paragraph (13), in the matter preceding

14 subparagraph (A), by striking ‘‘the stages of pro15 gram participation specified in paragraph 12’’ and

16 inserting ‘‘its Program participation’’; and

17 (2) by striking paragraph (14) and inserting

18 the following:

19 ‘‘(14) [Reserved].’’.

20 SEC. 112. EXPANDING THE ELIGIBLE USES FOR LOANS

21 UNDER EXISTING LOAN PROGRAMS FOR PRO22 GRAM PARTICIPANTS.

23 Section 7(a)(20)(A)(iii) of the Small Business Act

24 (15 U.S.C. 636(a)(20)(A)(iii)) is amended by striking ‘‘to

25 be used’’ and all that follows before the semicolon.
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1 SEC. 113. TEST PROGRAM FOR THE USE OF SURETY BOND

2 WAIVERS.

3 Section 7(j)(13)(D) of the Small Business Act (15

4 U.S.C. 636(j)(13)(D)) is amended—

5 (1) by striking clauses (i) through (iii);

6 (2) by striking ‘‘A maximum’’ and inserting

7 ‘‘(i) A maximum’’;

8 (3) by striking ‘‘, except that, such exemptions

9 may be granted under this subparagraph only

10 if—’’ and inserting a period; and

11 (4) by adding at the end the following new

12 clauses:

13 ‘‘(ii) The agency with contracting authority

14 may, upon the request of the Program Partici15 pant, grant an exemption pursuant to clause

16 (i), if—

17 ‘‘(I) the Program Participant provides

18 certification, in the form prescribed by the

19 Administration, that the firm was unable

20 to obtain the requisite bonding from cor21 porate surety bonding firms even with a

22 guarantee issued by the Administration

23 pursuant to title IV of the Small Business

24 Investment Act of 1958;

25 ‘‘(II) the Program Participant has

26 provided for the protection of persons fur-
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1 nishing materials or labor under the con2 tract by arranging for—

3 ‘‘(aa) the direct disbursement of

4 funds owed to such persons by the

5 procuring agency or through an es6 crow account provided by any bank

7 the deposits of which are insured by

8 the United States Government; or

9 ‘‘(bb) irrevocable letters of credit

10 (or other alternatives to surety bond11 ing acceptable to the procuring agen12 cy); and

13 ‘‘(III) the award value of the contract

14 for which the exemption is being sought

15 does not exceed $1,000,000.

16 ‘‘(iii) The authority to grant an exemption

17 under clause (ii) shall cease to be effective on

18 September 30, 1997.’’.

19 SEC. 114. TARGETING SECTION 7(j) BUSINESS MANAGE20 MENT ASSISTANCE TO PROGRAM PARTICI21 PANTS.

22 Section 7(j)(1) of the Small Business Act (15 U.S.C.

23 636(j)(1)) is amended by striking ‘‘individuals or enter24 prises eligible for assistance under sections 7(i), 7(j)(10),

25 and 8(a) of this Act’’ and inserting ‘‘participants in the
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1 Minority Enterprise Development Program established in

2 paragraph (10)’’.

3 SEC. 115. OTHER ENHANCEMENTS TO THE SECTION 7(j)

4 MANAGEMENT ASSISTANCE PROGRAM.

5 (a) FOCUS ON BUSINESS MANAGEMENT ASSIST6 ANCE.—Section 7(j)(2)(E) of the Small Business Act (15

7 U.S.C. 636(j)(2)(E)) is amended to read as follows:

8 ‘‘(E) the furnishing of business development

9 services and related professional services, especially

10 accounting and legal services, with special emphasis

11 on marketing, bid and proposal preparation, finan12 cial management, strategic business planning, and

13 transition management planning for participants in

14 the Minority Enterprise Development Program, that

15 will foster the continued business development of the

16 Program Participants after program graduation.’’.

17 (b) TWO-YEAR AUTHORIZATION.—Section 7(j)(5) of

18 the Small Business Act (15 U.S.C. 636(j)(5)) is amended

19 to read as follows:

20 ‘‘(5)(A) Financial assistance authorized in paragraph

21 (1) may be provided through grants, cooperative agree22 ments, or contracts.

23 ‘‘(B) Funds appropriated to carry out paragraph (1)

24 shall remain available for obligation by the Administration
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1 during the fiscal year succeeding the fiscal year for which

2 the funds were appropriated.

3 ‘‘(C) Recipients of financial assistance awarded pur4 suant to paragraph (1) may expend such funds prior to

5 the expiration date of the grant, cooperative agreement,

6 or contract under which the funds were awarded.’’.

7 (c) ELIGIBILITY FOR CERTAIN EDUCATIONAL INSTI8 TUTIONS.—Section 7(j) of the Small Business Act (15

9 U.S.C. 636(j)) is amended—

10 (1) in paragraph (2)—

11 (A) by redesignating subparagraphs (A)

12 through (E) as subparagraphs (B) through (F),

13 respectively; and

14 (B) by inserting before subparagraph (B),

15 as redesignated, the following new subpara16 graph:

17 ‘‘(A) business executive education programs

18 conducted by institutions of graduate business edu19 cation for owners or managers of small business con20 cerns owned and controlled by socially and economi21 cally disadvantaged individuals (as defined in section

22 8(d)(3)(C));’’; and

23 (2) by striking paragraph (4) and inserting the

24 following:
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1 ‘‘(4) In making awards pursuant to paragraph (1)

2 to institutions of graduate business education eligible

3 under paragraph (2)(A), the Administration shall give

4 preference to institutions that have previously provided

5 such programs, with the greatest preference being ac6 corded to institutions that have provided such programs

7 for a period of not less than 10 consecutive years.’’.

8 SEC. 116. DEVELOPMENTAL TEAMING.

9 (a) PROGRAM ESTABLISHED.—There is established a

10 Developmental Teaming Program (hereafter in this sec11 tion referred to as the ‘‘Program’’) within the Minority

12 Enterprise Development Program established under sec13 tion 101.

14 (b) PURPOSE.—The purpose of the Program shall be

15 to foster the business development and long-term business

16 success of firms participating in the Minority Enterprise

17 Development Program by encouraging the formation of

18 teaming arrangements and long-term strategic business

19 alliances between such firms and firms that have grad20 uated from the Minority Enterprise Development Program

21 (and its predecessor program, the Minority Small Busi22 ness and Capital Ownership Development Program).

23 (c) PROGRAM PARTICIPANTS.—

24 (1) ASSISTANCE RECIPIENTS.—Small business

25 concerns owned and controlled by socially and eco-
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1 nomically disadvantaged individuals that are partici2 pants in the Business Development (Preferential

3 Contracting) Phase of the Minority Enterprise De4 velopment Program shall be eligible to participate in

5 the Program (and shall be referred to as ‘‘Program

6 Participants’’ for purposes of this section).

7 (2) ASSISTANCE PROVIDERS.—A small business

8 concern owned and controlled by socially and eco9 nomically disadvantaged individuals that is a grad10 uate (or a current Program Participant in the Tran11 sitional Stage) of the Business Development (Pref12 erential Contracting Phase) of the Minority Enter13 prise Development Program (and its predecessor

14 program, the Minority Small Business and Capital

15 Ownership Development Program) shall be eligible

16 to participate in the Program and to furnish devel17 opmental assistance to Program Participants

18 through a developmental teaming agreement, ap19 proved pursuant to subsection (d). (For purposes of

20 this section, firms having, or seeking to establish, a

21 developmental teaming agreement shall be referred

22 to as ‘‘Developmental Teaming Partners’’).

23 (d) TEAMING AGREEMENTS.—

24 (1) ASSISTANCE AUTHORIZED.—A Developmen25 tal Teaming Partner may provide to a Program Par-
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1 ticipant one or more of the following forms of devel2 opmental assistance and training:

3 (A) General business management (includ4 ing financial management, organizational man5 agement and personnel management).

6 (B) Business development, marketing, and

7 proposal preparation.

8 (C) Process engineering (including produc9 tion, inventory control, and quality assurance).

10 (D) Award of subcontracts on a non11 competitive basis.

12 (E) Technology transfer.

13 (F) Financial assistance (including loans,

14 loan guarantees, surety bonding, advance pay15 ments, and accelerated progress payments).

16 (G) Such other forms of assistance de17 signed to foster the development of the Pro18 gram Participant, contained in a developmental

19 teaming agreement approved pursuant to para20 graph (3).

21 (2) CONTENT OF AGREEMENTS.—In addition to

22 such other matters as the parties may deem appro23 priate, each developmental teaming agreement shall

24 include the matters described in subsection (e).
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1 (3) APPROVAL REQUIRED.—Each developmen2 tal teaming agreement shall be approved by the Ad3 ministration before—

4 (A) the furnishing of any type of devel5 opmental assistance to a Program Participant

6 pursuant to such agreement; or

7 (B) the Developmental Teaming Partner

8 becomes eligible for any of the incentives au9 thorized by subsection (f).

10 (4) ACTION BY THE ADMINISTRATION.—Each

11 proposed developmental teaming agreement shall be

12 reviewed and approved (or denied approval) not later

13 than 45 days after the receipt of such agreement by

14 the Administration. A denial of approval shall state

15 specific reasons for the denial and shall afford the

16 applicant an opportunity for reconsideration. Every

17 reasonable effort shall be made by the Administra18 tion to act upon matters relating to the administra19 tion of an approved developmental teaming agree20 ment not later than 30 days after the receipt of such

21 agreement by the Administration.

22 (e) CONTENT OF THE AGREEMENT.—

23 (1) FORMS OF ASSISTANCE.—Each developmen24 tal teaming agreement shall specify forms of busi25 ness development assistance to be furnished by the
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1 Developmental Teaming Partner and indicate how

2 these forms of assistance are designed to advance

3 the approved business plan of the Program Partici4 pant.

5 (2) MEASURES OF SUCCESS.—Each devel6 opmental teaming agreement shall include specific

7 milestones or benchmarks which will permit objective

8 measurement of whether the agreement has ad9 vanced the business development of the Program

10 Participant.

11 (3) DURATION OF AGREEMENT.—Each devel12 opmental teaming agreement between a Program

13 Participant and a Developmental Assistance Pro14 vider may be for a term not to exceed 3 years, with

15 the option of the parties to renew the agreement

16 upon its expiration for an additional term of not to

17 exceed 2 years.

18 (4) TERMINATION OF AGREEMENT.—The devel19 opmental teaming agreement shall include provisions

20 regarding the termination of the agreement that

21 meet the standards of subsection (h).

22 (f) PARTICIPATION AS SUBCONTRACTOR.—A Devel23 opmental Teaming Partner may be awarded a subcontract

24 under a contract awarded pursuant to section 8(a)(1) of

25 the Small Business Act, without regard to the sub-
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1 contracting limitations of section 8(a)(14) of such Act,

2 if—

3 (1) the contract was awarded to a Program

4 Participant with which such firm has an approved

5 developmental teaming agreement; and

6 (2) the subcontract award was approved as part

7 of the developmental teaming agreement (or subse8 quently approved by the Administration).

9 (g) AFFILIATION OR CONTROL.—For the purposes of

10 the Small Business Act, no determination of affiliation or

11 control (either direct or indirect) shall be found on the

12 basis that a Program Participant is being furnished (or

13 has entered into agreement to be furnished) developmental

14 assistance pursuant to a developmental teaming agree15 ment, approved pursuant to subsection (d).

16 (h) TERMINATION OF AGREEMENTS.—

17 (1) BY A PROGRAM PARTICIPANT.—A Program

18 Participant may voluntarily terminate a developmen19 tal teaming agreement after giving not less than 30

20 days advance notice to its Developmental Teaming

21 Partner.

22 (2) BY A DEVELOPMENTAL ASSISTANCE PRO23 VIDER.—

24 (A) WITHDRAWAL FROM PROGRAM.—A

25 Developmental Teaming Partner may terminate
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1 its developmental teaming agreement with a

2 Program Participant by withdrawing from the

3 Program after giving not less than 30 days ad4 vance notice to the Administration and to each

5 of the Program Participants for which the firm

6 was a Developmental Teaming Partner.

7 (B) TERMINATING AN AGREEMENT FOR

8 CAUSE.—

9 (i) IN GENERAL.—A Developmental

10 Teaming Partner may terminate its devel11 opmental teaming agreement with a Pro12 gram Participant for cause in accordance

13 with the procedures in clause (ii).

14 (ii) NOTICE.—In terminating an

15 agreement under clause (i), the following

16 procedures shall apply:

17 (I) IN GENERAL.—The Program

18 Participant shall be furnished a writ19 ten notice of the proposed termination

20 under clause (i), not less than 30 days

21 prior to the effective date of such pro22 posed termination, that states the spe23 cific reasons for the proposed termi24 nation.
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1 (II) RESPONSE.—The Program

2 Participant shall have not more than

3 30 days to respond to such notice of

4 proposed termination, rebutting any

5 findings believed to be erroneous and

6 offering a remedial program.

7 (III) FINAL ACTION.—After giv8 ing the Program Participant’s re9 sponse prompt consideration, the De10 velopmental Teaming Partner shall ei11 ther withdraw the notice of proposed

12 termination or issue a notice of termi13 nation.

14 (iii) NONREVIEWABILITY.—The deci15 sion of the Developmental Teaming Part16 ner regarding a termination for cause, con17 forming to the procedures of clause (ii),

18 shall be final and shall not be subject to

19 review by the Administration.

20 (3) BY THE SMALL BUSINESS ADMINISTRA21 TION.—

22 (A) IN GENERAL.—The Administration

23 may terminate the participation of a Devel24 opmental Teaming Partner or a Program Par-
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1 ticipant for cause in accordance with subpara2 graph (B).

3 (B) PROCEDURES.—In terminating an

4 agreement under subparagraph (A), the follow5 ing procedures shall apply:

6 (i) NOTICE.—The firm proposed for

7 termination from the Program shall be fur8 nished a written notice of the proposed ter9 mination, not less than 30 days prior to

10 the effective date of such proposed termi11 nation, that states the specific reasons for

12 the proposed termination.

13 (ii) RESPONSE.—The notice of pro14 posed termination shall provide 30 days for

15 the firm proposed for termination to re16 spond to such notice.

17 (iii) FINAL ACTION.—After giving

18 prompt consideration to the response of

19 the firm proposed for termination, the Ad20 ministration shall either withdraw the no21 tice of proposed termination or issue a no22 tice of termination.

23 (C) REVIEWABILITY.—A decision by the

24 Administration to terminate for cause the par25 ticipation of a firm in the Program shall be
27

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1 final, but may be appealed pursuant to section

2 8(a)(9) of the Small Business Act.

3 (i) DURATION OF THE PROGRAM.—

4 (1) IN GENERAL.—Business concerns eligible to

5 participate in the Program may enter into devel6 opmental teaming agreements during the period

7 commencing on the effective date of the regulations

8 required by subsection (j) and ending on September

9 30, 1997.

10 (2) TERMINATION.—The Program shall termi11 nate on September 30, 2002.

12 (j) REGULATIONS.—The Administrator of the Small

13 Business Administration shall prescribe regulations to

14 carry out the Developmental Teaming Program. Proposed

15 regulations shall be published not later than 90 days after

16 the date of enactment of this Act. Final regulations shall

17 be promulgated not later than 180 days after the date of

18 enactment of this Act.

19 (k) DEFINITIONS.—For purposes of this section, the

20 following definitions shall apply:

21 (1) SMALL BUSINESS CONCERNS.—The term

22 ‘‘small business concern’’ means a business concern

23 that meets the requirements of section 3(a) of the

24 Small Business Act and the regulations promulgated

25 pursuant to such section.
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1 (2) SMALL BUSINESS CONCERN OWNED AND

2 CONTROLLED BY SOCIALLY AND ECONOMICALLY DIS3 ADVANTAGED INDIVIDUALS.—The term ‘‘small busi4 ness concern owned and controlled by socially and

5 economically disadvantaged individuals’’ has the

6 same meaning as in section 8(d)(3)(C) of the Small

7 Business Act.

8 (3) MINORITY ENTERPRISE DEVELOPMENT

9 PROGRAM.—The term ‘‘Minority Enterprise Develop10 ment Program’’ means the program authorized by

11 section 7(j)(10)(A) of the Small Business Act (as

12 amended by section 101).

13 (4) GRADUATED.—The term ‘‘graduated’’ has

14 the same meaning as in section 7(j)(10)(H) of the

15 Small Business Act.

16 PART C—IMPROVING ACCESS TO EQUITY FOR

17 PROGRAM GRADUATES

18 SEC. 121. CONTINUED CONTRACT PERFORMANCE.

19 Section 8(a)(21) of the Small Business Act (15

20 U.S.C. 637(a)(21) is amended—

21 (1) in subparagraph (B), by striking ‘‘The Ad22 ministrator may, on a nondelegable basis, waive the

23 requirements of subparagraph (A) only if 1 of the

24 following conditions exist:’’ and inserting ‘‘The re-
29

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1 quirements of subparagraph (A) may be waived,

2 under any of the following circumstances:’’; and

3 (2) by striking subparagraph (C) and inserting

4 the following:

5 ‘‘(C)(i) Except as provided in clause (ii), a request

6 for a waiver pursuant to subparagraph (B) shall be sub7 mitted prior to the actual relinquishment of ownership or

8 control.

9 ‘‘(ii) Under the circumstances described in subpara10 graph (B)(iii), the waiver request shall be made as soon

11 as practicable after the incapacity or death occurs.’’.

12 SEC. 122. CONTINUED PROGRAM PARTICIPATION.

13 Section 7(j)(11)(D) of the Small Business Act (15

14 U.S.C. 636(j)(11)(D)) is amended to read as follows:

15 ‘‘(D)(i) A Program Participant shall remain eligible

16 for participation in the Program after a transfer of an

17 ownership interest in the firm if ownership and control

18 (as required by section 8(a)(4)) is—

19 ‘‘(I) retained by the socially and economically

20 disadvantaged individuals upon whom Program eligi21 bility is based; or

22 ‘‘(II) acquired by a small business concern

23 owned and controlled by socially and economically

24 disadvantaged individuals who have graduated from

25 the Program or otherwise exited the Program
30

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1 through a means other than a termination proceed2 ing.

3 ‘‘(ii) A Program Participant shall remain eligible for

4 participation in the Program after transfer of ownership

5 and control (as required by section 8(a)(4)) to individuals

6 who are determined to be socially and economically dis7 advantaged pursuant to section 8(a). Unless graduated or

8 terminated, the Program Participant shall be eligible for

9 a period of continued Program Participation not to exceed

10 the period described in paragraph (15).

11 ‘‘(iii) A Program Participant that is a tribally owned

12 corporation may remain eligible for participation in the

13 Program with other than a Native American as the firm’s

14 chief executive officer (or chief operating officer), if the

15 governing body of the Indian tribe certifies to the Admin16 istration that it was unable to hire a qualified Native

17 American after conducting a national recruitment for such

18 an individual.’’.

19 PART D—CONTRACT AWARD AND ELIGIBILITY

20 MATTERS

21 SEC. 131. CONTRACT AWARD PROCEDURES.

22 Section 8(a)(1) of the Small Business Act (15 U.S.C.

23 637(a)(1)) is amended—

24 (1) by striking subparagraphs (A), (B), and

25 (C); and
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1 (2) by striking ‘‘(a)(1)’’ and inserting the fol2 lowing:

3 ‘‘(a)(1)(A) The Administration shall ensure that con4 tracts sufficient to satisfy the contract support levels iden5 tified by participants in the Minority Enterprise Develop6 ment Program established in section 7(j)(10) are des7 ignated by the various Federal agencies for award pursu8 ant to this subsection.

9 ‘‘(B) Except as provided in subparagraph (D), the

10 award of contracts under this section shall be made on

11 a noncompetitive basis by the agency offering the contract12 ing opportunity to the Program Participant selected for

13 the award, and determined to be responsible by such agen14 cy. The award shall be made at a fair market price.

15 ‘‘(C)(i) The Administration shall determine the eligi16 bility of the Program Participant to receive the award in

17 accordance with the eligibility criteria listed in paragraph

18 (16).

19 ‘‘(ii) With respect to an individual contracting oppor20 tunity, the Administration may provide, upon a request

21 by the Program Participant, assistance with respect to—

22 ‘‘(I) the negotiation of the terms and conditions

23 of the award; and

24 ‘‘(II) the resolution of controversies arising

25 from the performance of the contract prior to such
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1 contract performance controversies becoming formal

2 contract disputes within the meaning of the Contract

3 Disputes Act of 1978;

4 ‘‘(iii) In the event of an adverse decision by an agency

5 regarding a contracting opportunity, the Administrator

6 may—

7 ‘‘(I) not later than 5 days after receiving notice

8 of such adverse decision, file a notice of intent to ap9 peal with the head of the agency; and

10 ‘‘(II) not later than 15 days after receiving

11 such notice, file an appeal with the head of the agen12 cy, requesting reconsideration of the adverse deci13 sion.

14 ‘‘(iv) Upon receipt of the notice of intent to file an

15 appeal under clause (iii)(I), further action regarding

16 award of the contract shall be suspended, unless the head

17 of the agency makes a written determination, supported

18 by specific findings, that urgent and compelling cir19 cumstances that significantly affect the interests of the

20 United States will not permit reconsideration of the ad21 verse decision.

22 ‘‘(v) If the head of the agency sustains the adverse

23 decision upon reconsideration, the decision by the head of

24 the agency shall be in writing and shall be supported by

25 specific findings.
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1 ‘‘(vi) An adverse decision regarding the responsibility

2 of a Program Participant shall be decided pursuant to

3 subsection (b)(7).

4 ‘‘(vii) For the purposes of this subparagraph, an ad5 verse decision includes a decision by the contracting officer

6 responsible for the contracting opportunity—

7 ‘‘(I) failing to respond to a request from the

8 Administration to make a specific contracting oppor9 tunity available for award pursuant to this sub10 section;

11 ‘‘(II) declining to make available for award

12 under this subsection a contracting opportunity (or

13 class of contracting opportunities) or failing to sup14 port such a determination with specific findings;

15 ‘‘(III) finding a Program Participant to be in16 eligible for award of a contracting opportunity on

17 the basis of a determination of nonresponsibility; or

18 ‘‘(IV) failing to reach agreement with the Pro19 gram Participant with respect to the terms and con20 ditions of a contract selected for award under this

21 subsection.’’.

22 SEC. 132. TIMELY DETERMINATION OF ELIGIBILITY FOR

23 CONTRACT AWARD.

24 (a) IN GENERAL.—Section 8(a)(16) of the Small

25 Business Act (15 U.S.C. 637(a)(16)) is amended—
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1 (1) by redesignating subparagraph (B) as sub2 paragraph (E);

3 (2) by striking subparagraph (A) and inserting

4 the following:

5 ‘‘(A) Upon receiving notification that a Federal agen6 cy intends to consider a Program Participant for award

7 of a contract pursuant to this subsection (on a competitive

8 or noncompetitive basis), the Administration shall prompt9 ly notify the agency regarding the eligibility of the Pro10 gram Participant for award of the contract, and shall

11 identify all matters that could reasonably be expected to

12 render the Program Participant ineligible at the time of

13 the contract award.’’; and

14 (3) by inserting after subparagraph (A) (as

15 added by paragraph (2)) the following new subpara16 graphs:

17 ‘‘(B) A Program Participant may be found to be in18 eligible for award of the contract pursuant to this sub19 section, if—

20 ‘‘(i) the award of the contract would result in

21 the Program Participant failing to attain its busi22 ness activity targets established pursuant to section

23 7(j)(10)(I); or
35

•S 2478 IS

1 ‘‘(ii) the Program Participant has failed to

2 make the submissions required under paragraph

3 (6)(B).

4 ‘‘(C) A small business concern owned and controlled

5 by socially and economically disadvantaged individuals

6 that has completed its Program Participation term pursu7 ant to section 7(j)(15) shall be eligible for award if—

8 ‘‘(i) in the case of a contract to be competitively

9 awarded, the prospective contract recipient was a

10 Program Participant eligible for award of the con11 tract on the date specified for receipt of offers, and

12 such firm had timely submitted an offer (including

13 price); or

14 ‘‘(ii) in the case of a contract to be noncompeti15 tively awarded, the prospective contract recipient

16 was a Program Participant eligible for award of the

17 contract on the date specified by the agency con18 tracting officer for the submission of an offer (in19 cluding price).

20 ‘‘(D) If the Administration determines that a Pro21 gram Participant is ineligible for consideration for award

22 of a contract under subparagraph (B) or (C), the deter23 mination shall be supported by specific findings. The de24 termination (and supporting findings) shall be furnished
36

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1 to the Program Participant and to the contracting officer

2 for the agency providing the contracting opportunity.’’.

3 (b) CONFORMING AMENDMENTS.—Section 8(a) of

4 the Small Business Act (15 U.S.C. 637(a)) is amended—

5 (1) in paragraph (3)—

6 (A) by striking subparagraph (A) and in7 serting the following:

8 ‘‘(A) [Reserved].’’; and

9 (B) by striking subparagraph (D) and in10 serting the following:

11 ‘‘(D) Subsequent to the award of a contract under

12 this subsection, if requested by the recipient of the con13 tract, the Administration shall not publicly disclose the

14 agency’s estimate of the fair market price.’’;

15 (2) in paragraph (7), by striking subparagraph

16 (A) and inserting the following:

17 ‘‘(A) [Reserved].’’;

18 (3) in paragraph (12)(A), by striking ‘‘eligible

19 to receive subcontracts’’ and inserting ‘‘eligible for

20 contract awards’’; and

21 (4) in paragraph (9)(B)—

22 (A) in clause (iii), by striking ‘‘and’’;

23 (B) by redesignating clause (iv) as clause

24 (v); and
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1 (C) by inserting after clause (iii) the fol2 lowing new clause:

3 ‘‘(iv) a determination of ineligibility for award

4 of contract pursuant to paragraph (16)(B); and’’.

5 SEC. 133. COMPETITION REQUIREMENTS.

6 (a) INDEFINITE QUANTITY AND DELIVERY CON7 TRACTS.—Section 8(a)(1)(D) of the Small Business Act

8 (15 U.S.C. 637(a)(1)(D)) is amended—

9 (1) by redesignating clause (ii) as clause (iv);

10 and

11 (2) by inserting after clause (i) the following

12 new clause:

13 ‘‘(ii) Whenever a requirements-type contract (includ14 ing a task order contract, indefinite quantity contract, or

15 indefinite delivery contract) is to be awarded, the thresh16 olds for competition required under clause (i)(II) shall be

17 calculated on the basis of the estimated total value of the

18 contract.’’.

19 (b) AUTHORIZATION FOR ADDITIONAL NONCOMPETI20 TIVE CONTRACT AWARDS.—Section 8(a)(1)(D) of the

21 Small Business Act (15 U.S.C. 637(a)(1)(D)) is amended

22 by inserting after clause (ii) (as added by subsection (a))

23 the following new clause:

24 ‘‘(iii) The Associate Administrator for Minority

25 Enterprise Development, on a nondelegable basis,
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1 may authorize the noncompetitive award of contracts

2 in excess of the amounts specified in clause (i)(II)

3 to a Program Participant, if—

4 ‘‘(I) such Program Participant is an

5 emerging small business concern;

6 ‘‘(II) the award of such contracts would

7 contribute substantially to the development of

8 the Program Participant in accordance with its

9 business plan, including attainment of the busi10 ness activity targets established pursuant to

11 section 7(j)(10)(I), by the time such firm enters

12 the transitional stage;

13 ‘‘(III) the award value of the contract does

14 not exceed twice the amounts specified in clause

15 (i)(II); and

16 ‘‘(IV) the aggregate dollar value of awards

17 pursuant to this clause does not exceed

18 $20,000,000.’’.

19 SEC. 134. STANDARD INDUSTRIAL CLASSIFICATION CODES.

20 (a) APPROVAL OF CODES.—As part of the process of

21 developing and maintaining a business plan pursuant to

22 section 7(j)(10)(D) of the Small Business Act, a Program

23 Participant may designate its capabilities to perform con24 tracting opportunities under one or more standard indus25 trial classification codes.
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1 (b) DETERMINATIONS BY PROCURING AGENCY RE2 GARDING APPLICABLE STANDARD INDUSTRIAL CLASSI3 FICATION CODE.—The standard industrial classification

4 code assigned to a contracting opportunity by the respon5 sible contracting officer shall apply, unless modified by the

6 contracting officer after considering additional informa7 tion furnished by the Administration or from other

8 sources.

9 (c) EFFECT OF RESPONSIBILITY DETERMINA10 TIONS.—The Administration shall be bound by a deter11 mination of responsibility by the agency contracting officer

12 with respect to a Program Participant being considered

13 for award of a contract pursuant to section 8(a) of the

14 Small Business Act.

15 (d) CONFORMING AMENDMENT.—Section 8(a)(7) of

16 the Small Business Act (15 U.S.C. 637(a)(7)) (as amend17 ed by section 132(b)(2)) is amended to read as follows:

18 ‘‘(7) [Reserved].’’.

19 SEC. 135. USE OF CONTRACT SUPPORT LEVELS.

20 Section 7(j)(10)(D) of the Small Business Act (15

21 U.S.C. 636(j)(10)(D)) is amended by adding at the end

22 the following new clause:

23 ‘‘(v) The forecasts of overall business activity con24 tained in the business plan of a Program Participant or

25 the estimate contained in the section 8(a) contract support
40

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1 level of such firm shall not be used by the Administration

2 to make a determination that such firm is ineligible for

3 the award of a contract to be awarded pursuant to section

4 8(a).’’.

5 SEC. 136. BUSINESS MIX REQUIREMENTS.

6 Section 7(j)(10) of the Small Business Act (15

7 U.S.C. 636(j)(10)) is amended—

8 (1) in subparagraph (D)—

9 (A) in clause (iii), by striking ‘‘contracts

10 awarded’’ and inserting ‘‘contracts awarded

11 noncompetitively’’; and

12 (B) in clause (iv)(I), by striking ‘‘contracts

13 awarded’’ and inserting ‘‘contracts awarded

14 noncompetitively’’; and

15 (2) in subparagraph (I)—

16 (A) in clause (i)—

17 (i) by striking ‘‘for contracts awarded

18 other than pursuant to section 8(a)’’ and

19 inserting ‘‘through contracts other than

20 contracts awarded noncompetitively pursu21 ant to section 8(a)’’; and

22 (ii) by striking ‘‘will engage a’’ and

23 inserting ‘‘will engage in a’’;

24 (B) in clause (iii)—
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1 (i) by redesignating subclauses (II)

2 through (V) as subclauses (III) through

3 (VI), respectively;

4 (ii) by striking subclause (I) and in5 serting the following:

6 ‘‘(I) establish business activity targets ap7 plicable to Program Participants during each

8 year of Program participation, which reflect a

9 consistent increase in new contracts awarded

10 other than pursuant to section 8(a), so that not

11 more than 20 percent of the dollar value of the

12 Program Participant’s business base (as a per13 centage of total sales) at the beginning of the

14 ninth year of Program participation is derived

15 from contracts awarded pursuant to section

16 8(a);

17 ‘‘(II) provide that the business activity tar18 gets established pursuant to subclause (I) re19 flect that not more than 50 percent of the dol20 lar value of the new contracts awarded during

21 the fifth and succeeding years of Program Par22 ticipation be awarded pursuant to section 8(a)

23 on a noncompetitive basis;’’;

24 (iii) by striking subclause (IV), as re25 designated, and inserting the following:
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1 ‘‘(IV) require that a Program Participant

2 in the transitional stage of Program participa3 tion certify compliance with its business activity

4 targets (or with any program of remedial meas5 ures that may have been imposed pursuant to

6 subclause (VI) for failing to attain such tar7 gets) to eligible for award of a contract pursu8 ant to section 8(a);’’;

9 (iv) in subclause (V), as redesignated,

10 by striking ‘‘and’’ at the end;

11 (v) by striking subclause (VI), as re12 designated, and inserting the following:

13 ‘‘(VI) authorize the Administration to re14 quire a Program Participant that has failed to

15 attain a business activity target to undertake a

16 program of remedial measures designed to as17 sist the firm to reduce its dependence on con18 tracts awarded pursuant to section 8(a); and’’;

19 and

20 (vi) by adding at the end the following

21 new subclause:

22 ‘‘(VII) authorize the Administration to

23 limit the dollar volume of contracts awarded to

24 the Program Participant pursuant to section

25 8(a), especially those awarded noncompetitively,
43

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1 if the firm has not made substantial progress

2 toward attaining its business activity targets.’’;

3 and

4 (C) by adding at the end the following new

5 clause:

6 ‘‘(iv) Actions by the Administration relating to

7 enforcing compliance with business activity targets

8 shall not be reviewable pursuant to section 8(a)(19),

9 unless such action is a termination from further

10 Program participation.’’.

11 SEC. 137. ENCOURAGING SELF-MARKETING.

12 (a) ELIMINATION OF REGULATORY LIMITATIONS.—

13 In accordance with the schedule for the issuance of revised

14 regulations contained in section 601(a), the Administra15 tion shall promulgate such regulations as may be nec16 essary to eliminate regulatory limitations on self-market17 ing by Program Participants, including limitations relat18 ing to so-called ‘‘National Buys’’ and ‘‘Local Buys’’.

19 (b) CONFORMING AMENDMENT.—Section 8(a)(11) of

20 the Small Business Act (15 U.S.C. 637(a)(11)) is amend21 ed to read as follows:

22 ‘‘(11) [Reserved].’’.
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1 SEC. 138. BUNDLING OF CONTRACTOR CAPABILITIES.

2 (a) IN GENERAL.—Section 8(a)(14) of the Small

3 Business Act (15 U.S.C. 637(a)(14)) is amended to read

4 as follows:

5 ‘‘(14)(A) Except as provided in subparagraph

6 (B), a contract shall not be awarded pursuant to

7 this subsection unless the small business concern

8 complies with the requirements of section 15(o).

9 ‘‘(B)(i) Whenever the Administration deter10 mines that a proposed contract opportunity rep11 resents a bundling of contract requirements as de12 fined by section 3(n), a Program Participant may

13 propose a team of subcontractors meeting the re14 quirements of clause (ii) without regard to the re15 quirements of section 15(o) or regulations of the Ad16 ministration regarding findings of affiliation or con17 trol, either direct or indirect.

18 ‘‘(ii) The subcontracting team proposed by a

19 Program Participant may include—

20 ‘‘(I) other Program Participants;

21 ‘‘(II) other small business concerns;

22 ‘‘(III) business concerns other than small

23 business concerns, whose aggregate participa24 tion may not represent more than 25 percent of

25 the anticipated total value of the contract; and
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1 ‘‘(IV) historically black colleges and uni2 versities and other minority institutions.’’.

3 (b) DEFINITION.—Section 3 of the Small Business

4 Act (15 U.S.C. 632) is amended by adding at the end the

5 following new subsection:

6 ‘‘(n) CONTRACT BUNDLING.—For purposes of con7 tracting opportunities subject to sections 8(a) and 15, the

8 terms ‘contract bundling’ and ‘bundling of contract re9 quirements’ mean the practice of consolidating two or

10 more procurement requirements of the type that were pre11 viously solicited and awarded as separate smaller contracts

12 into a single large contract solicitation likely to be unsuit13 able for award to a small business concern due to—

14 ‘‘(1) the diversity and size of the elements of

15 performance specified;

16 ‘‘(2) the aggregate dollar value of the antici17 pated award;

18 ‘‘(3) the geographical dispersion of the contract

19 performance sites; or

20 ‘‘(4) any combination of the factors described in

21 paragraphs (1), (2), and (3).’’.

22 (c) CONFORMING AMENDMENT.—Section 15(a) of

23 the Small Business Act (15 U.S.C. 644(a)) is amended

24 by striking ‘‘If a proposed procurement’’ and all that fol25 lows through ‘‘prime contract participation unlikely,’’ and
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1 inserting the following: ‘‘If a proposed procurement rep2 resents a bundling of contract requirements, as defined

3 in section 3(n),’’.

4 PART E—TRIBALLY OWNED CORPORATIONS

5 SEC. 141. MANAGEMENT AND CONTROL OF BUSINESS OP6 ERATIONS.

7 Section 8(a)(4)(B)(ii) of the Small Business Act (15

8 U.S.C. 637(a)(4)(B)(ii)) is amended to read as follows:

9 ‘‘(ii) in the case of a tribally owned corporation,

10 an individual designated by the Indian tribe (or the

11 board of directors of a wholly owned entity of such

12 tribe), who shall be a Native American if such indi13 vidual is available; or’’.

14 SEC. 142. JOINT VENTURES.

15 (a) IN GENERAL.—Section 8(a)(15) of the Small

16 Business Act (15 U.S.C. 637(a)(15)) is amended to read

17 as follows:

18 ‘‘(15)(A) Except as provided in subparagraph (B), a

19 contract may be awarded pursuant to this subsection to

20 a joint venture owned and controlled by a Program Partic21 ipant, notwithstanding the size status of such joint ven22 ture, if the Program Participant—

23 ‘‘(i) is owned and controlled by an Indian tribe;

24 ‘‘(ii) owns at least 51 percent of the joint ven25 ture;
47

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1 ‘‘(iii) is located and performs most of its activi2 ties on the reservation of such Indian tribe; and

3 ‘‘(iv) employs members of such tribe for at least

4 50 percent of the work force of such joint venture.

5 ‘‘(B) A contract may not be awarded to a joint ven6 ture pursuant to subparagraph (A) if an Indian tribe owns

7 and controls one or more Program Participants who are

8 currently joint venturers on more than 5 contracts award9 ed pursuant to subparagraph (A).’’.

10 (b) DEFINITIONS.—

11 (1) INDIAN TRIBE.—Section 3 of the Small

12 Business Act (15 U.S.C. 632) (as amended by sec13 tion 139(b)) is amended by adding at the end the

14 following new subsection:

15 ‘‘(o) INDIAN TRIBE.—For purposes of this Act, the

16 term ‘Indian tribe’ means an Indian tribe, band, nation,

17 or other organized group or community of Indians, includ18 ing any Alaska Native village or regional or village cor19 poration (as defined in section 3 of the Alaska Native

20 Claims Settlement Act that—

21 ‘‘(1) is recognized as eligible for the special pro22 grams and services provided by the United States to

23 Indians because of their status as Indians; or
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1 ‘‘(2) is recognized as such by the State in which

2 such tribe, band, nation, group, or community re3 sides.’’.

4 (2) NATIVE HAWAIIAN ORGANIZATION.—Section

5 3 of the Small Business Act (15 U.S.C. 632) (as

6 amended by paragraph (1)) is amended by adding at

7 the end the following new subsection:

8 ‘‘(p) NATIVE HAWAIIAN ORGANIZATION.—For pur9 poses of this Act, the term ‘Native Hawaiian organization’

10 means a community service organization serving Native

11 Hawaiians in the State of Hawaii that is—

12 ‘‘(1) a not-for-profit organization chartered by

13 the State of Hawaii;

14 ‘‘(2) controlled by Native Hawaiians; and

15 ‘‘(3) engaged in business activities that will

16 principally benefit such Native Hawaiians.’’.

17 (3) CONFORMING AMENDMENT.—Section

18 8(a)(13) of the Small Business Act (15 U.S.C.

19 637(a)(13)) is amended to read as follows:

20 ‘‘(13) [Reserved].’’.

21 SEC. 143. RULE OF CONSTRUCTION REGARDING THE BUY

22 INDIAN ACT.

23 A contract awarded pursuant to section 8(a) of the

24 Small Business Act to a small business concern owned and

25 controlled by members of an Indian tribe (or a wholly
49

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1 owned business entity of such tribe) shall be considered

2 to be in compliance with section 23 of the Act of June

3 25, 1910 (25 U.S.C. 47).

4 PART F—CONTRACT ADMINISTRATION MATTERS

5 SEC. 151. ACCELERATED PAYMENT.

6 Section 8(a)(1) of the Small Business Act (15 U.S.C.

7 637(a)(1)) is amended by adding at the end the following

8 new subparagraph:

9 ‘‘(E)(i) Any contract awarded pursuant to subpara10 graph (B) to a Program Participant in the developmental

11 stage of the Program shall include a payment term requir12 ing payment of any invoice, progress payment request, or

13 other authorized request for payment, not later than 20

14 days after receipt of a proper invoice or other form of pay15 ment request.’’.

16 SEC. 152. EXPEDITED RESOLUTION OF CONTRACT ADMINIS17 TRATION MATTERS.

18 Section 8(a)(1)(E) of the Small Business Act (15

19 U.S.C. 637(a)(1)(E)) (as added by section 151) is amend20 ed by adding at the end the following new clause:

21 ‘‘(ii)(I) A Federal agency awarding a contract under

22 this subsection shall make every reasonable effort to re23 spond in writing to any written request made to a con24 tracting officer with respect to a matter relating to the
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1 administration of such contract, not later than 15 days

2 such request.

3 ‘‘(II) If the contracting officer is unable to reply be4 fore the expiration of the 15-day period described in

5 subclause (I), the contracting officer shall transmit to the

6 contractor within such period a written notification of a

7 specific date by which the contracting officer expects to

8 respond.

9 ‘‘(III) The provisions of this subparagraph do not

10 apply to a request for a contracting officer’s decision

11 under the Contract Disputes Act of 1978 nor create any

12 new rights pursuant to such Act.’’.

13 SEC. 153. AVAILABILITY OF ALTERNATIVE DISPUTE RESO14 LUTION.

15 Section 8(a)(1)(E) of the Small Business Act (15

16 U.S.C. 637(a)(1)(E)) (as amended by sections 151 and

17 152) is amended by adding at the end the following new

18 clause:

19 ‘‘(iii)(I) Except as provided in subclause (II), an

20 agency awarding a contract pursuant to subparagraph (B)

21 shall make available, upon the request of a Program Par22 ticipant, an alternative means of dispute resolution pursu23 ant to subchapter IV of chapter 5, of title 5, United States

24 Code.
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1 ‘‘(II) In carrying out this clause, the agency need not

2 provide an alternative dispute resolution procedure if the

3 agency makes a written determination, supported by spe4 cific findings, citing one or more of the conditions in sec5 tion 572(b) of title 5, United States Code, or such other

6 specific reasons, that alternative dispute resolution proce7 dures are inappropriate for the resolution of the dispute

8 for which such procedures were sought under the con9 tract.’’.

10 PART G—PROGRAM ADMINISTRATION

11 SEC. 161. SIMPLIFICATION OF ANNUAL REPORT TO CON12 GRESS.

13 Section 7(j)(16)(B)(v) of the Small Business Act (15

14 U.S.C. 636(j)(16)(B)(v)) is amended to read as follows:

15 ‘‘(v) The total dollar value of receipts received during

16 the most recently completed program year from contracts

17 awarded pursuant to section 8(a), and such amount ex18 pressed as a percentage of the total sales of—

19 ‘‘(I) all firms participating in the Program dur20 ing the preceding fiscal year; and

21 ‘‘(II) firms in each of the 9 years of Program

22 participation.’’.
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1 SEC. 162. REDUCTION IN REPORTING BY PROGRAM PAR2 TICIPANTS.

3 Section 8(a)(20)(A) of the Small Business Act (15

4 U.S.C. 637(a)(20)(A)) is amended by striking ‘‘semiannu5 ally report’’ and inserting ‘‘report, not less often than an6 nually,’’.

7 TITLE II—CONTRACTING PRO8 GRAM FOR CERTAIN SMALL

9 BUSINESS CONCERNS

10 PART A—CIVILIAN AGENCIES PROGRAM

11 SEC. 201. PROCUREMENT PROCEDURES.

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

13 637(c)) is amended to read as follows:

14 ‘‘(c) PROCUREMENT PROCEDURES.—

15 ‘‘(1) IN GENERAL.—For the purpose of attain16 ing an agency’s goal for the participation of small

17 business concerns owned and controlled by socially

18 and economically disadvantaged individuals pursuant

19 to section 15(g)(1), the head of a participating exec20 utive agency may enter into contracts using—

21 ‘‘(A) less than full and open competition,

22 by restricting the competition for such awards

23 to small business concerns owned and controlled

24 by socially and economically disadvantaged indi25 viduals as defined in subsection (d)(3)(C); and
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1 ‘‘(B) a price evaluation preference, of not

2 to exceed 10 percent, when evaluating an offer

3 received from such a small business concern as

4 the result of an unrestricted solicitation.

5 ‘‘(2) DEFINITION.—For the purposes of this

6 subsection, the term ‘participating executive agency’

7 means a Federal agency, as defined in section 3(b),

8 in the executive branch of the Federal Government,

9 other than the Department of Defense.’’.

10 SEC. 202. IMPLEMENTATION THROUGH THE FEDERAL AC11 QUISITION REGULATION.

12 (a) IN GENERAL.—The Federal Acquisition Regula13 tion shall be amended to provide uniform implementation

14 by each executive agency choosing to participate in the

15 program authorized in section 8(c) of the Small Business

16 Act (as amended by section 201).

17 (b) MATTERS TO BE ADDRESSED.—The provisions

18 of the Federal Acquisition Regulation prescribed pursuant

19 to subsection (a) shall include—

20 (1) conditions for the use of advance payments;

21 (2) provisions for contract payment terms that

22 provide for—

23 (A) accelerated payment for work per24 formed during the period for contract perform25 ance; and
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1 (B) full payment for work performed;

2 (3) guidance on how contracting officers may

3 use, in solicitations for various classes of products or

4 services, a price evaluation preference pursuant to

5 section 8(c)(1)(B) of the Small Business Act (as

6 amended by section 201) to provide a reasonable ad7 vantage to small business concerns owned and con8 trolled by socially and economically disadvantaged

9 individuals without effectively eliminating any par10 ticipation of other small business concerns; and

11 (4)(A) procedures for a person to request the

12 head of a Federal agency to determine whether the

13 use of competitions restricted to small business con14 cerns owned and controlled by socially and economi15 cally disadvantaged individuals at a contracting ac16 tivity of such agency has caused a particular indus17 try category to bear a disproportionate share of the

18 contracts awarded to attain the goal established for

19 that contracting activity; and

20 (B) guidance for limiting the use of such re21 stricted competitions in the case of any contracting

22 activity and class of contracts determined in accord23 ance with such procedures to have caused a particu24 lar industry category to bear a disproportionate
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1 share of the contracts awarded to attain the goal es2 tablished for that contracting activity.

3 SEC. 203. SUNSET.

4 The amendments made by section 201 shall cease to

5 be effective on October 1, 2000.

6 PART B—ELIGIBILITY DETERMINATIONS

7 REGARDING STATUS

8 SEC. 211. IMPROVED STATUS PROTEST SYSTEM.

9 Section 7(j)(10)(J) of the Small Business Act (15

10 U.S.C. 636(j)(10)(J)) is amended by striking clause (ii)

11 and inserting the following new clauses:

12 ‘‘(ii) A protest may be brought regarding a self-cer13 tification by a business concern regarding its status as a

14 small business concern owned and controlled by socially

15 and economically disadvantaged individuals by—

16 ‘‘(I) another person with a direct economic in17 terest in the award of the contract or subcontract

18 under which such business has allegedly made the

19 false certification regarding its status as a small

20 business concern owned and controlled by socially

21 and economically disadvantaged individuals;

22 ‘‘(II) a prime contractor receiving specific and

23 credible information that an actual or prospective

24 subcontractor or supplier has falsely certified its sta25 tus as a small business concern owned and con-
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1 trolled by socially and economically disadvantaged

2 individuals;

3 ‘‘(III) a contracting officer receiving a self-cer4 tification regarding an actual or prospective contrac5 tor’s status, which such officer reasonably believes to

6 be false; or

7 ‘‘(IV) the Associate Deputy Administrator for

8 Minority Enterprise Development and Government

9 Contracting of the Small Business Administration

10 (or any successor position).

11 ‘‘(iii) The Office of Hearings and Appeals shall hear

12 appeals regarding the status of a concern as a small busi13 ness concern owned and controlled by socially and eco14 nomically disadvantaged individuals for purposes of any

15 program or activity conducted under section 8(d) or any

16 other Federal law that refers to such section for a defini17 tion of program eligibility.

18 ‘‘(iv) A decision issued pursuant to clause (iii) shall—

19 ‘‘(I) be made available to all parties to the pro20 ceeding;

21 ‘‘(II) be published in full text; and

22 ‘‘(III) include findings of fact and conclusions

23 of law, with specific reasons supporting such find24 ings and conclusions, on each material issue of fact
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1 and law of decisional significance regarding the dis2 position of the protest.

3 ‘‘(v) A decision issued pursuant to clause (iii) shall

4 be considered a final agency action, and shall be subject

5 to judicial review under section 553 of title 5, United

6 States Code.

7 ‘‘(vi) If a firm engages in a pattern of misrepresenta8 tions regarding the status of the firm in violation of sec9 tion 16(d)(1), the Administration or the aggrieved execu10 tive agency shall initiate an action to impose an appro11 priate penalty under section 16(d)(2).’’.

12 SEC. 212. CONFORMING AMENDMENT.

13 Section 7(j)(11)(F) of the Small Business Act (15

14 U.S.C. 636(j)(11)(F)) is amended by—

15 (1) striking clause (vii); and

16 (2) redesignating clause (viii) as clause (vii).

17 TITLE III—EXPANDING SUB18 CONTRACTING OPPORTUNI19 TIES

20 SEC. 301. EVALUATING SUBCONTRACT PARTICIPATION IN

21 AWARDING CONTRACTS.

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

23 637(d)) is amended—

24 (1) in paragraph (4), by striking subparagraphs

25 (A) through (D) and inserting the following:
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1 ‘‘(4)(A) Each solicitation for the award of a contract

2 (or subcontract) with an anticipated value of $1,000,000,

3 in the case of a contract for construction (including repair,

4 alteration, or demolition of existing construction) or

5 $500,000, in the case of a contract for all other types of

6 services or supplies, that can reasonably be expected to

7 offer opportunities for subcontracting, shall—

8 ‘‘(i) in the case of a Federal contract to be com9 petitively awarded, include solicitation provisions de10 scribed in subparagraph (B);

11 ‘‘(ii) in the case of a Federal contract to be

12 noncompetitively awarded, require submission and

13 acceptance of a subcontracting plan pursuant to

14 subparagraph (C); and

15 ‘‘(iii) in the case of a subcontract award, re16 quire submission and acceptance of a subcontracting

17 plan pursuant to subparagraph (D).

18 ‘‘(B) With respect to subcontract participation by

19 small business concerns and small business concerns

20 owned and controlled by socially and economically dis21 advantaged individuals, the solicitation shall—

22 ‘‘(i) specify minimum percentages for sub23 contract participation for an offer to be considered

24 responsive whenever practicable;
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1 ‘‘(ii) assign a weight of not less than the nu2 merical equivalent of 5 percent of the total of all

3 evaluation factors to a contract award evaluation

4 factor that recognizes incrementally higher sub5 contract participation rates in excess of the mini6 mum percentages;

7 ‘‘(iii) require the successful offeror to submit a

8 subcontracting plan that incorporates the informa9 tion described in paragraph (6); and

10 ‘‘(iv) assign a significant weight in any evalua11 tion of past performance by the offerors in attaining

12 subcontract participation goals.

13 ‘‘(C)(i) Each small business concern apparent suc14 cessful offeror shall negotiate—

15 ‘‘(I) a goal for the participation of small busi16 ness concerns and for the participation of small

17 business concerns owned and controlled by socially

18 and economically disadvantaged individuals; and

19 ‘‘(II) a plan for the attainment of the goals that

20 incorporates the information prescribed in paragraph

21 (6).

22 ‘‘(ii) The goals and plan shall reflect the maximum

23 practicable opportunity for participation of small business

24 concerns in the performance of the contract, considering

25 the matters described in subparagraph (F)(iii). If, within
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1 the time limits prescribed in the Federal acquisition regu2 lations, the apparent successful offeror fails to negotiate

3 such a subcontracting plan, such offeror shall be ineligible

4 for contract award.

5 ‘‘(D) An apparent subcontract awardee shall nego6 tiate with the prime contractor (or higher-tier subcontrac7 tor) a goal for the participation of small business concerns

8 and for the participation of small business concerns owned

9 and controlled by socially and economically disadvantaged

10 individuals, and a plan for the attainment of those goals

11 which incorporates the information prescribed in para12 graph (6). Such goals and plan shall reflect the maximum

13 practicable opportunity for participation of such small

14 business concerns in the performance of the contract, con15 sidering the matters described in subparagraph (F)(iii).’’;

16 (2) by striking paragraph (5) and inserting the

17 following:

18 ‘‘(5) [Reserved].’’; and

19 (3) in paragraph (6)—

20 (A) by redesignating subparagraphs (B)

21 through (F) as subparagraphs (C) through (G),

22 respectively; and

23 (B) by inserting the following new sub24 paragraph (B):
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1 ‘‘(B)(i) a listing of the small business sub2 contractors (including suppliers) who have actual or

3 contingent awards for participation in the perform4 ance of the contract, identifying the work to be per5 formed and the anticipated award value of the sub6 contracts; and

7 ‘‘(ii) assurances that the listing of small busi8 ness subcontractors described in clause (i) will be

9 regularly revised to identify firms that have been re10 moved from or substituted for previously listed

11 firms, and annotated to reflect the reasons for any

12 removal or substitution;’’.

13 SEC. 302. SUBCONTRACTING GOALS FOR CERTAIN SMALL

14 BUSINESS CONCERNS.

15 Section 8(d)(7) of the Small Business Act (15 U.S.C.

16 637(d)(7)) is amended to read as follows:

17 ‘‘(7)(A) Except as provided in subparagraph (B),

18 paragraphs (4), (5), and (6) shall not apply to offerors

19 who are small business concerns.

20 ‘‘(B) A small business concern owned and controlled

21 by socially and economically disadvantaged individuals

22 shall be required to negotiate a subcontracting plan for

23 the use of emerging small business concerns owned and

24 controlled by socially and economically disadvantaged indi25 viduals, if—
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1 ‘‘(i) the prime contract was awarded pursuant

2 to—

3 ‘‘(I) subsection (a) or (c) of section 8;

4 ‘‘(II) section 2323 of title 10, United

5 States Code; or

6 ‘‘(III) any law that authorizes the award of

7 a Federal contract as the result of a competi8 tion restricted to small business concerns owned

9 and controlled by socially and economically dis10 advantaged individuals as defined in section

11 8(d)(3)(C);

12 ‘‘(ii) the anticipated total value of the contract

13 exceeds $20,000,000; and

14 ‘‘(iii) subcontracting opportunities are ex15 pected.’’.

16 SEC. 303. SMALL BUSINESS PARTICIPATION GOALS.

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

18 U.S.C. 644(g)(1)) is amended by striking ‘‘20 percent’’

19 and inserting ‘‘25 percent’’.

20 SEC. 304. IMPROVED NOTICE OF SUBCONTRACTING OPPOR21 TUNITIES.

22 (a) USE OF THE COMMERCE BUSINESS DAILY AU23 THORIZED.—Section 8 of the Small Business Act (15

24 U.S.C. 637) is amended by adding at the end the following

25 new subsection:
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1 ‘‘(k) NOTICES OF SUBCONTRACTING OPPORTUNI2 TIES.—

3 ‘‘(1) IN GENERAL.—Notices of subcontracting

4 opportunities may be submitted for publication in

5 the Commerce Business Daily by—

6 ‘‘(A) a business concern awarded a con7 tract by an executive agency subject to sub8 section (e)(1)(C); and

9 ‘‘(B) a business concern which is a sub10 contractor or supplier (at any tier) to a contrac11 tor required to have a subcontracting plan pur12 suant to subsection (d) having a subcontracting

13 opportunity in excess of $100,000.

14 ‘‘(2) CONTENTS OF NOTICE.—The notice of a

15 subcontracting opportunity shall include—

16 ‘‘(A) a description of the business oppor17 tunity that is comparable to the description

18 specified in paragraphs (1), (2), (3), and (4) of

19 subsection (f); and

20 ‘‘(B) the due date for the receipt of of21 fers.’’.

22 (b) REGULATIONS REQUIRED.—The Federal Acquisi23 tion Regulation shall be amended to provide uniform im24 plementation of the amendments made by this section.
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1 (c) CONFORMING AMENDMENT.—Section 8(e)(1)(C)

2 of the Small Business Act (15 U.S.C. 637(e)(1)(C)) is

3 amended by striking ‘‘$25,000’’ each place it appears and

4 inserting ‘‘$100,000’’.

5 TITLE IV—REPEALS AND

6 TECHNICAL AMENDMENTS

7 PART A—REPEALS

8 SEC. 401. LOAN PROGRAM SUPERSEDED BY SECTION 7(a)

9 LOAN PROGRAM.

10 (a) IN GENERAL.—Section 7(i) of the Small Business

11 Act (15 U.S.C. 636(i)) is amended to read as follows:

12 ‘‘(i) [Reserved].’’.

13 (b) CONFORMING AMENDMENTS.—The Small Busi14 ness Act (15 U.S.C. 601 et seq.) is amended—

15 (1) in section 2(d)(1), by striking ‘‘sections 7(i)

16 and 7(j)’’ and inserting ‘‘section 7(j)’’;

17 (2) in section 4(c)(2), by striking ‘‘7(i),’’;

18 (3) in section 5(e)(3), by striking ‘‘sections

19 7(a)(4)(C) and 7(i)(1)’’ and inserting ‘‘section

20 7(a)(4)(C)’’;

21 (4) in section 7(j), by striking ‘‘sections 7(i),

22 7(j)(10), and 8(a)’’ each place it appears and insert23 ing ‘‘paragraph (10) and section 8(a)’’; and
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1 (5) in section 7(k), by striking ‘‘sections 7(i),

2 7(j)(10), and 8(a)’’ and inserting ‘‘subsection (j)(10)

3 and section 8(a)’’.

4 SEC. 402. SUPERSEDED LOAN PROGRAM RELATING TO EN5 ERGY.

6 (a) IN GENERAL.—Section 7(l) of the Small Business

7 Act (15 U.S.C. 636(l)) is amended to read as follows:

8 ‘‘(l) [Reserved].’’.

9 (b) CONFORMING AMENDMENTS.—Section 4(c)(2) of

10 the Small Business Act (15 U.S.C. 601 et seq.) is amend11 ed by striking ‘‘7(l),’’.

12 SEC. 403. EMPLOYEE TRAINING PROGRAM OF LIMITED

13 SCOPE.

14 Section 15(j)(13)(E) of the Small Business Act (15

15 U.S.C. 644(j)(13)(E)) is amended to read as follows:

16 ‘‘(E) [Reserved].’’.

17 SEC. 404. EXPIRED PROVISION.

18 Section 8(a)(2) of the Small Business Act (15 U.S.C.

19 637(a)(2)) is amended to read as follows:

20 ‘‘(2) [Reserved].’’.

21 SEC. 405. EXPIRED DIRECTION TO THE ADMINISTRATION.

22 Section 303(f) of the Business Opportunity Develop23 ment Reform Act of 1988 (15 U.S.C. 637 note) is re24 pealed.
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1 PART B—TECHNICAL AMENDMENTS

2 SEC. 411. TECHNICAL AMENDMENTS.

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

4 amended—

5 (1) in section 8(d)(10)(C) (15 U.S.C.

6 637(d)(10)(C)), by striking ‘‘in the case contrac7 tors’’ and inserting ‘‘in the case of contractors’’;

8 (2) in section 10—

9 (A) in subsection (a), by striking ‘‘the Sen10 ate Select Committee on Small Business’’; and

11 (B) in subsection (b), by striking ‘‘to the

12 Senate Select Committee on Small Business,

13 and to the Committee on Small Business of the

14 House of Representatives’’ and inserting ‘‘to

15 the Committees on Small Business of the Sen16 ate and House of Representatives’’; and

17 (3) in section 15(g)(1)—

18 (A) in the first sentence, by striking ‘‘The

19 President’’ and inserting ‘‘(A) The President’’;

20 (B) by striking the second and third sen21 tences and inserting the following:

22 ‘‘(B) The Governmentwide goals established pursuant

23 to subparagraph (A) shall be—

24 ‘‘(i) for small business concerns, 20 percent of

25 the total prime contracts for the fiscal year; and
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1 ‘‘(ii) for small business concerns owned and

2 controlled by socially and economically disadvan3 taged individuals, 8 percent of the total value of all

4 prime contracts and subcontracts for the fiscal

5 year.’’;

6 (C) in the fourth sentence, by striking

7 ‘‘Notwithstanding the Government-wide goal’’

8 and inserting the following:

9 ‘‘(C) Notwithstanding the Governmentwide goal’’;

10 and

11 (D) in the fifth sentence, by striking ‘‘The

12 Administration’’ and inserting the following:

13 ‘‘(D) The Administration’’.

14 TITLE V—DEFINITIONS

15 SEC. 501. HISTORICALLY UNDERUTILIZED BUSINESSES.

16 (a) DEFINITION.—Section 8(a)(4)(A) of the Small

17 Business Act (15 U.S.C. 637(a)(4)(A)) is amended by

18 striking ‘‘socially and economically disadvantaged small

19 business concern’’ and inserting ‘‘historically underutilized

20 business’’.

21 (b) TECHNICAL AMENDMENT.—Section 9(j)(2)(F) of

22 the Small Business Act (15 U.S.C. 638(j)(2)(F)) is

23 amended by striking ‘‘socially and economically disadvan24 taged small business concerns, as defined in section

25 8(a)(A)’’ and inserting ‘‘small business concerns owned
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1 and controlled by socially and economically disadvantaged

2 individuals’’.

3 SEC. 502. EMERGING SMALL BUSINESS CONCERN.

4 (a) IN GENERAL.—Section 3 of the Small Business

5 Act (15 U.S.C. 631) is amended by adding at the end the

6 following new subsection:

7 ‘‘(q) EMERGING SMALL BUSINESS CONCERN.—For

8 purposes of sections 8 and 15, the term ‘emerging small

9 business concern’ means a small business concern the size

10 of which is less than or equal to 25 percent of the numeri11 cal size standard for—

12 ‘‘(1) in the case of a contracting opportunity

13 being awarded by the Government, the standard in14 dustrial classification code assigned by a contracting

15 officer; or

16 ‘‘(2) in all other cases, the standard industrial

17 classification that encompasses the principal line of

18 business of the business concern.’’.

19 (b) DELAYED APPLICABILITY TO THE SMALL BUSI20 NESS COMPETITIVENESS DEMONSTRATION PROGRAM.—

21 For the purposes of the Small Business Competitiveness

22 Demonstration Program, the amendment made by sub23 section (a) shall not supersede the definition of ‘‘emerging

24 small business concern’’ provided in section 718(b) of the
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1 Small Business Competitiveness Demonstration Program

2 Act of 1988.

3 TITLE VI—REGULATORY IMPLE4 MENTATION AND EFFECTIVE

5 DATES

6 PART A—ASSURING TIMELY REGULATORY

7 IMPLEMENTATION

8 SEC. 601. DEADLINES FOR ISSUANCE OF REGULATIONS.

9 (a) PROPOSED REGULATIONS.—Proposed amend10 ments to the Federal Acquisition Regulation or proposed

11 Small Business Administration regulations shall be pub12 lished not later than 120 days after the date of enactment

13 of this Act for the purpose of obtaining public comment

14 pursuant to either section 22 of the Office of Federal Pro15 curement Policy Act or chapter 5 of title 5, United States

16 Code, as appropriate. The public shall be afforded not less

17 than 60 days to submit comments.

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

19 published and become effective not later than 270 days

20 after the date of enactment of this Act.

21 SEC. 602. REGULATORY IMPLEMENTATION OF PRIOR LEG22 ISLATION.

23 (a) PROPOSED REGULATIONS.—Proposed amend24 ments to the Federal Acquisition Regulation or the Small

25 Business Administration regulations pertaining to the
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1 statutory provisions listed in subsection (c) shall be pub2 lished not later than 30 days after the date of enactment

3 of this Act for the purpose of obtaining public comment

4 pursuant to either section 22 of the Office of Federal Pro5 curement Policy Act or chapter 5 of title 5, United States

6 Code, as appropriate. The public shall be afforded not less

7 than 60 days to submit comments.

8 (b) FINAL REGULATIONS.—Final regulations imple9 menting the amendments made by this Act shall be pub10 lished and shall take effect not later than 120 days after

11 the date of enactment of this Act.

12 (c) DELAYED REGULATIONS.—

13 (1) Section 203 of the Small Business Adminis14 tration Reauthorization and Amendments Act of

15 1990 (15 U.S.C. 637 note; 104 Stat. 2818).

16 (2) Section 221 of the Small Business Credit

17 and Business Opportunity Enhancement Act of

18 1992 (15 U.S.C. 636 note; 106 Stat. 999).

19 (3) Section 222 of the Small Business Credit

20 and Business Opportunity Enhancement Act of

21 1992 (15 U.S.C. 632 note; 106 Stat. 999).
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1 PART B—EFFECTIVE DATES

2 SEC. 611. EFFECTIVE DATES.

3 (a) EFFECTIVE DATE OF ACT.—Except as provided

4 in subsection (b), this Act shall take effect on the date

5 of the enactment of this Act.

6 (b) AMENDMENTS REQUIRING IMPLEMENTING REG7 ULATIONS.—

8 (1) IN GENERAL.—Except as provided in para9 graph (2), the amendments made by this Act which

10 require the issuance of regulations shall take effect

11 on the date on which final implementing regulations

12 are prescribed in accordance with section 601.

13 (2) EXCEPTIONS.—The amendments made by

14 sections 101, 102, 111, 112, 114, 115, 122, 133,

15 134, 135, 136, 138, 141, 142, 143, 161, 162, and

16 211 shall take effect on the date of enactment of

17 this Act.

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