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106TH CONGRESS

1ST SESSION H. R. 1209

To amend the Small Business Act to provide a penalty for the failure

by a Federal contractor to subcontract with small businesses as described

in its subcontracting plan, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 18, 1999

Mr. WYNN introduced the following bill; which was referred to the Committee

on Small Business

A BILL

To amend the Small Business Act to provide a penalty

for the failure by a Federal contractor to subcontract

with small businesses as described in its subcontracting

plan, 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 ‘‘Subcontractor Protec5 tion Act’’.
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1 SEC. 2. IMPLEMENTATION OF SUBCONTRACTING PLANS.

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

3 637(d)) is amended by adding at the end the following

4 new paragraphs:

5 ‘‘(12) In the case of any contract containing a sub6 contracting plan included pursuant to paragraph (4) or

7 (5), the following provisions apply:

8 ‘‘(A) The executive agency awarding the con9 tract shall include in the contract a clause providing

10 for the withholding of not less than (i) $5,000 in the

11 case of a contract in the amount of $100,000 or

12 less, (ii) 3 percent of the contract amount in the

13 case of a contract in an amount of more than

14 $100,000 and less than $5,000,000, and (iii) 5 per15 cent of the contract amount in the case of a contract

16 in an amount of $5,000,000 or more, if the con17 tractor does not achieve the percentage goal for the

18 utilization of small business concerns owned and

19 controlled by socially and economically disadvan20 taged individuals as set forth in the subcontracting

21 plan.

22 ‘‘(B) The executive agency awarding the con23 tract shall require the contractor to provide written

24 justification to the agency whenever the contractor,

25 in performing the contract, does not enter into a

26 subcontract with, or substitutes another subcon-
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1 tractor for, a specific small business identified in the

2 subcontracting plan.

3 ‘‘(13) The Administration shall establish a telephone

4 line or other electronic means of communication through

5 which any small business identified in a subcontracting

6 plan by an offeror or bidder may communicate to the Ad7 ministration any concerns regarding major deviations by

8 prime contractors from the use of small businesses as sub9 contractors under the prime contract as described in sub10 contracting plans.’’.

11 SEC. 3. REQUIREMENT TO CONSIDER USE OF SMALL BUSI12 NESS CONCERNS OWNED AND CONTROLLED

13 BY SOCIALLY AND ECONOMICALLY DIS14 ADVANTAGED INDIVIDUALS WHEN CONSID15 ERING PAST COMPLIANCE WITH SUBCON16 TRACTING PLANS.

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

18 637(d)) is amended in the second sentence of paragraphs

19 (4)(C) and (5)(B) by inserting after ‘‘other such subcon20 tracting plans’’ each place it appears the following:

21 ‘‘, especially compliance with the goal set forth in such

22 plans for the utilization of small business concerns owned

23 and controlled by socially and economically disadvantaged

24 individuals,’’.

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