II 

112TH CONGRESS 

2D SESSION S. 3213 

To amend the Small Business Act with respect to goals for procurement 

contracts awarded to small business concerns, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2012 

Mr. CARDIN (for himself and Ms. LANDRIEU) 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 with respect to goals 

for procurement contracts awarded to small business concerns, 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 

5 Goaling Act of 2012’’. 


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1 SEC. 2. GOALS FOR PROCUREMENT CONTRACTS AWARDED 

2 TO SMALL BUSINESS CONCERNS. 

3 (a) HEADING.—Section 15(g) of the Small Business 

4 Act (15 U.S.C. 644(g)) is amended by striking the sub5 section enumerator and inserting the following: 

6 ‘‘(g) GOALS FOR PROCUREMENT CONTRACTS

7 AWARDED TO SMALL BUSINESS CONCERNS.—’’. 

8 (b) GOVERNMENTWIDE GOALS.—Paragraph (1) of 

9 section 15(g) of the Small Business Act (15 U.S.C. 

10 644(g)) is amended to read as follows: 

11 ‘‘(1) GOVERNMENTWIDE GOALS.—The Presi12 dent shall annually establish Governmentwide goals 

13 for procurement contracts awarded to small business 

14 concerns, small business concerns owned and con15 trolled by service-disabled veterans, qualified 

16 HUBZone small business concerns, small business 

17 concerns owned and controlled by socially and eco18 nomically disadvantaged individuals, and small busi19 ness concerns owned and controlled by women in ac20 cordance with the following: 

21 ‘‘(A) The Governmentwide goal for partici22 pation by small business concerns shall be es23 tablished at not less than 25 percent of the 

24 total value of all prime contract awards for each 

25 fiscal year and 40 percent of the total value of 

26 all subcontract awards for each fiscal year. 


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1 ‘‘(B) The Governmentwide goal for partici2 pation by small business concerns owned and 

3 controlled by service-disabled veterans shall be 

4 established at not less than 3 percent of the 

5 total value of all prime contract and at not less 

6 than 3 percent of the total value of all sub7 contract awards for each fiscal year. 

8 ‘‘(C) The Governmentwide goal for partici9 pation by qualified HUBZone small business 

10 concerns shall be established at not less than 3 

11 percent of the total value of all prime contract 

12 and at not less than 3 percent of the total value 

13 of all subcontract awards for each fiscal year. 

14 ‘‘(D) The Governmentwide goal for partici15 pation by small business concerns owned and 

16 controlled by socially and economically dis17 advantaged individuals shall be established at 

18 not less than 5 percent of the total value of all 

19 prime contract and at not less than 5 percent 

20 of the total value of all subcontract awards for 

21 each fiscal year. 

22 ‘‘(E) The Governmentwide goal for partici23 pation by small business concerns owned and 

24 controlled by women shall be established at not 

25 less than 5 percent of the total value of all 


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1 prime contract and at not less than 5 percent 

2 of the total value of all subcontract awards for 

3 each fiscal year. 

4 ‘‘(F) The Administrator shall ensure that 

5 the cumulative annual prime contract goals for 

6 all agencies meet or exceed the annual Govern7 ment-wide prime contract goal established by 

8 the President pursuant to this paragraph.’’. 

9 (c) AGENCY GOALS.—Paragraph (2) of section 15(g) 

10 of the Small Business Act (15 U.S.C. 644(g)) is amended 

11 to read as follows: 

12 ‘‘(2) AGENCY GOALS.— 

13 ‘‘(A) ESTABLISHMENT.—The head of each 

14 Federal agency shall annually establish, for the 

15 agency that individual heads, goals for procure16 ment contracts awarded to small business con17 cerns, small business concerns owned and con18 trolled by service-disabled veterans, qualified 

19 HUBZone small business concerns, small busi20 ness concerns owned and controlled by socially 

21 and economically disadvantaged individuals, and 

22 small business concerns owned and controlled 

23 by women. 

24 ‘‘(B) RELATIONSHIP TO GOVERNMENT25 WIDE GOALS.— 


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1 ‘‘(i) SCOPE.—The goals established by 

2 the head of a Federal agency under sub3 paragraph (A) shall be in the same format 

4 as the goals established by the President 

5 under paragraph (1) and shall address 

6 both prime contract and subcontract 

7 awards. 

8 ‘‘(ii) REQUIREMENT TO MEET OR EX9 CEED GOVERNMENTWIDE GOALS.—The 

10 participation percentage applicable to each 

11 goal for a fiscal year established under 

12 subparagraph (A) for small business con13 cerns owned and controlled by service-dis14 abled veterans, qualified HUBZone small 

15 business concerns, small business concerns 

16 owned and controlled by socially and eco17 nomically disadvantaged individuals, and 

18 small business concerns owned and con19 trolled by women may not be less than the 

20 participation percentage applicable to the 

21 Governmentwide goal for such fiscal year 

22 established under paragraph (1) for such 

23 category. 

24 ‘‘(C) CONSULTATION REQUIRED.— 


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1 ‘‘(i) IN GENERAL.—In establishing 

2 goals under subparagraph (A), the head of 

3 each Federal agency shall consult with the 

4 Administrator. 

5 ‘‘(ii) DISAGREEMENTS.—If the Ad6 ministrator and the head of a Federal 

7 agency fail to agree on a goal established 

8 under subparagraph (A), the disagreement 

9 shall be submitted to the Administrator for 

10 Federal Procurement Policy for final deter11 mination. 

12 ‘‘(D) PLAN FOR ACHIEVING GOALS.—After 

13 establishing goals under subparagraph (A) for a 

14 fiscal year, the head of each Federal agency 

15 shall develop a plan for achieving such goals, 

16 which shall apportion responsibilities among the 

17 employees of such agency having procurement 

18 powers. 

19 ‘‘(E) EXPANDED PARTICIPATION.—In es20 tablishing goals under subparagraph (A), the 

21 head of each Federal agency shall make a con22 sistent effort to annually expand participation 

23 by small business concerns from each industry 

24 category in procurement contracts of such agen25 cy, including participation by small business 


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1 concerns owned and controlled by service-dis2 abled veterans, qualified HUBZone small busi3 ness concerns, small business concerns owned 

4 and controlled by socially and economically dis5 advantaged individuals, and small business con6 cerns owned and controlled by women. 

7 ‘‘(F) CONSIDERATION.—The head of each 

8 Federal agency, in attempting to attain ex9 panded participation under subparagraph (E), 

10 shall consider— 

11 ‘‘(i) contracts awarded as the result of 

12 unrestricted competition; and 

13 ‘‘(ii) contracts awarded after competi14 tion restricted to eligible small business 

15 concerns under this section and under the 

16 program established under section 8(a). 

17 ‘‘(G) COMMUNICATION REGARDING

18 GOALS.— 

19 ‘‘(i) IMPORTANCE OF ACHIEVING

20 GOALS.—Each procurement employee or 

21 program manager described in clause (ii) 

22 shall communicate to the subordinates of 

23 the procurement employee or program 

24 manager the importance of achieving goals 

25 established under subparagraph (A). 


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1 ‘‘(ii) PROCUREMENT EMPLOYEES OR

2 PROGRAM MANAGERS DESCRIBED.—A pro3 curement employee or program manager 

4 described in this clause is a senior procure5 ment executive, senior program manager, 

6 or Director of Small and Disadvantaged 

7 Business Utilization of a Federal agency 

8 having contracting authority.’’. 

9 (d) ENFORCEMENT; DETERMINATIONS OF THE

10 TOTAL VALUE OF CONTRACT AWARDS.—Section 15(g) of 

11 the Small Business Act (15 U.S.C. 644(g)), as amended 

12 by this Act, is further amended by adding at the end the 

13 following: 

14 ‘‘(3) ENFORCEMENT.—If the Administrator 

15 does not issue the report required in paragraph (2) 

16 on or before the date that is 120 days after the end 

17 of the prior fiscal year, the Administrator may not 

18 carry out or establish any pilot program until the 

19 date on which the Administrator issues the report. 

20 ‘‘(4) DETERMINATIONS OF THE TOTAL VALUE

21 OF CONTRACT AWARDS.—For purposes of the goals 

22 established under paragraphs (1) and (2), the total 

23 value of contract awards for a fiscal year may not 

24 be determined in a manner that excludes the value 

25 of a contract based on— 


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1 ‘‘(A) where the contract is awarded; 

2 ‘‘(B) where the contract is performed; 

3 ‘‘(C) whether the contract is mandated by 

4 Federal law to be performed by an entity other 

5 than a small business concern; 

6 ‘‘(D) whether funding for the contract is 

7 made available in an appropriations Act, if the 

8 contract is subject to the Competition in Con9 tracting Act; or 

10 ‘‘(E) whether the contract is subject to the 

11 Federal Acquisition Regulation.’’. 

12 SEC. 3. REPORTING ON GOALS FOR PROCUREMENT CON13 TRACTS AWARDED TO SMALL BUSINESS CON14 CERNS. 

15 Subsection (h) of section 15 of the Small Business 

16 Act (15 U.S.C. 644) is amended to read as follows: 

17 ‘‘(h) REPORTING ON GOALS FOR PROCUREMENT

18 CONTRACTS AWARDED TO SMALL BUSINESS CON19 CERNS.— 

20 ‘‘(1) AGENCY REPORTS.—At the conclusion of 

21 each fiscal year, the head of each Federal agency 

22 shall submit to the Administrator a report describ23 ing— 

24 ‘‘(A) the extent of the participation by 

25 small business concerns, small business conVerDate Mar 15 2010 02:55 May 23, 2012 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3213.IS S3213

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1 cerns owned and controlled by veterans (includ2 ing service-disabled veterans), qualified 

3 HUBZone small business concerns, small busi4 ness concerns owned and controlled by socially 

5 and economically disadvantaged individuals, and 

6 small business concerns owned and controlled 

7 by women in the procurement contracts of such 

8 agency during such fiscal year; 

9 ‘‘(B) whether the agency achieved the 

10 goals established for the agency under sub11 section (g)(2)(A) with respect to such fiscal 

12 year; and 

13 ‘‘(C) any justifications for a failure to 

14 achieve such goals. 

15 ‘‘(2) REPORTS BY ADMINISTRATOR.—Not later 

16 than 60 days after receiving a report from each Fed17 eral agency under paragraph (1) with respect to a 

18 fiscal year, the Administrator shall submit to the 

19 President and Congress a report that includes— 

20 ‘‘(A) a copy of each report submitted to 

21 the Administrator under paragraph (1); 

22 ‘‘(B) a determination of whether each goal 

23 established by the President under subsection 

24 (g)(1) for such fiscal year was achieved; 


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1 ‘‘(C) a determination of whether each goal 

2 established by the head of a Federal agency 

3 under subsection (g)(2)(A) for such fiscal year 

4 was achieved; 

5 ‘‘(D) the reasons for any failure to achieve 

6 a goal established under paragraph (1) or 

7 (2)(A) of subsection (g) for such fiscal year and 

8 a description of actions planned by the applica9 ble agency to address such failure, except that 

10 the Administrator must concur with each reme11 diation plan; 

12 ‘‘(E) for the Federal Government and each 

13 Federal agency, an analysis of the number and 

14 dollar amount of prime contracts awarded dur15 ing such fiscal year to— 

16 ‘‘(i) small business concerns— 

17 ‘‘(I) in the aggregate; 

18 ‘‘(II) through sole source con19 tracts; 

20 ‘‘(III) through competitions re21 stricted to small business concerns; 

22 and 

23 ‘‘(IV) through unrestricted com24 petition; 


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1 ‘‘(ii) small business concerns owned 

2 and controlled by service-disabled vet3 erans— 

4 ‘‘(I) in the aggregate; 

5 ‘‘(II) through sole source con6 tracts; 

7 ‘‘(III) through competitions re8 stricted to small business concerns; 

9 ‘‘(IV) through competitions re10 stricted to small business concerns 

11 owned and controlled by service-dis12 abled veterans; and 

13 ‘‘(V) through unrestricted com14 petition; 

15 ‘‘(iii) qualified HUBZone small busi16 ness concerns— 

17 ‘‘(I) in the aggregate; 

18 ‘‘(II) through sole source con19 tracts; 

20 ‘‘(III) through competitions re21 stricted to small business concerns; 

22 ‘‘(IV) through competitions re23 stricted to qualified HUBZone small 

24 business concerns; 


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1 ‘‘(V) through unrestricted com2 petition where a price evaluation pref3 erence was used; and 

4 ‘‘(VI) through unrestricted com5 petition where a price evaluation pref6 erence was not used; 

7 ‘‘(iv) small business concerns owned 

8 and controlled by socially and economically 

9 disadvantaged individuals— 

10 ‘‘(I) in the aggregate; 

11 ‘‘(II) through sole source con12 tracts; 

13 ‘‘(III) through competitions re14 stricted to small business concerns; 

15 ‘‘(IV) through competitions re16 stricted to small business concerns 

17 owned and controlled by socially and 

18 economically disadvantaged individ19 uals; and 

20 ‘‘(V) through unrestricted com21 petition; 

22 ‘‘(v) small business concerns owned by 

23 an Alaska Native Corporation— 

24 ‘‘(I) in the aggregate; 


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1 ‘‘(II) through sole source con2 tracts; 

3 ‘‘(III) through competitions re4 stricted to small business concerns; 

5 ‘‘(IV) through competitions re6 stricted to small business concerns 

7 owned and controlled by socially and 

8 economically disadvantaged individ9 uals; and 

10 ‘‘(V) through unrestricted com11 petition; and 

12 ‘‘(vi) small business concerns owned 

13 and controlled by women— 

14 ‘‘(I) in the aggregate; 

15 ‘‘(II) through competitions re16 stricted to small business concerns; 

17 ‘‘(III) through competitions re18 stricted using the authority under sec19 tion 8(m)(2); 

20 ‘‘(IV) through competitions re21 stricted using the authority under sec22 tion 8(m)(2) and in which the waiver 

23 authority under section 8(m)(3) was 

24 used; and 


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1 ‘‘(V) through unrestricted com2 petition; and 

3 ‘‘(F) for the Federal Government and each 

4 Federal agency, the number, dollar amount, 

5 and distribution with respect to the North 

6 American Industry Classification System of 

7 subcontracts awarded during such fiscal year to 

8 small business concerns, small business con9 cerns owned and controlled by service-disabled 

10 veterans, qualified HUBZone small business 

11 concerns, small business concerns owned and 

12 controlled by socially and economically dis13 advantaged individuals, and small business con14 cerns owned and controlled by women.’’. 

15 SEC. 4. SENIOR EXECUTIVES. 

16 (a) TRAINING.—Section 3396(a) of title 5, United 

17 States Code, is amended by adding at the end the fol18 lowing: ‘‘A program established under this subsection shall 

19 include training with respect to Federal procurement re20 quirements, including contracting requirements under the 

21 Small Business Act (15 U.S.C. 631 et seq.).’’. 

22 (b) PERFORMANCE APPRAISALS.—Section 4313 of 

23 title 5, United States Code, is amended— 

24 (1) in paragraph (4), by striking ‘‘and’’ at the 

25 end; 


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1 (2) in paragraph (5), by striking the period at 

2 the end and inserting ‘‘; and’’; and 

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

4 ‘‘(6) meeting the goals established by the head 

5 of the agency under section 15(g)(2)(A) of the Small 

6 Business Act (15 U.S.C. 644(g)(2)(A)).’’. 

Æ 


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