I 

115TH CONGRESS 

2D SESSION H. R. 5178 

To amend the Small Business Act to provide for small business concerns 

located in Puerto Rico, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 6, 2018 

Ms. VELA ́ZQUEZ introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To amend the Small Business Act to provide for small business concerns located in Puerto Rico, 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 ‘‘Puerto Rico Small 

5 Business Contracting Assistance Act of 2018’’. 

6 SEC. 2. DEFINITION OF PUERTO RICO BUSINESS. 

7 Section 3 of the Small Business Act (15 U.S.C. 632) 

8 is amended by adding at the end the following new sub9 section: 


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1 ‘‘(ee) PUERTO RICO BUSINESS.—In this Act, the 

2 term ‘Puerto Rico business’ means a small business con3 cern that has its principal office located in the Common4 wealth of Puerto Rico.’’. 

5 SEC. 3. SMALL BUSINESS CREDIT FOR PUERTO RICO BUSI6 NESSES. 

7 Section 15 of the Small Business Act (15 U.S.C. 644) 

8 is amended by adding at the end the following new sub9 section: 

10 ‘‘(w) SMALL BUSINESS CREDIT FOR PUERTO RICO

11 BUSINESSES.— 

12 ‘‘(1) CREDIT FOR MEETING CONTRACTING

13 GOALS.—If an agency awards a prime contract to 

14 Puerto Rico business during the period beginning on 

15 the date of enactment of this subsection and ending 

16 on the date that is 4 years after such date of enact17 ment, the value of the contract shall be doubled for 

18 purposes of determining compliance with the goals 

19 for procurement contracts under subsection 

20 (g)(1)(A)(i) during such period. 

21 ‘‘(2) REPORT.—Along with the report required 

22 under subsection (h)(1), the head of each Federal 

23 agency shall submit to the Administrator, and make 

24 publicly available on the scorecard described in sec25 tion 868(b) of the National Defense Authorization 


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1 Act for Fiscal Year 2016 (15 U.S.C. 644 note), an 

2 analysis of the number and dollar amount of prime 

3 contracts awarded pursuant to paragraph (1) for 

4 each fiscal year of the period described in such para5 graph.’’. 

6 SEC. 4. PRIORITY FOR SURPLUS PROPERTY TRANSFERS. 

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

8 U.S.C. 636(j)(13)(F)) is amended by adding at the end 

9 the following new clause: 

10 ‘‘(iii)(I) In this clause, the term ‘covered period’ 

11 means the period beginning on the date of enact12 ment of this clause and ending on the date on which 

13 the Oversight Board established under section 101 

14 of the Puerto Rico Oversight, Management, and 

15 Economic Stability Act (48 U.S.C. 2121) termi16 nates. 

17 ‘‘(II) The Administrator may transfer tech18 nology or surplus property under clause (i) to a 

19 Puerto Rico business if the Puerto Rico business 

20 meets the requirements for such a transfer, without 

21 regard to whether the Puerto Rico business is a Pro22 gram Participant.’’. 


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1 SEC. 5. CONTRACTING INCENTIVES FOR PROTEGE FIRMS 

2 THAT ARE PUERTO RICO BUSINESSES. 

3 (a) IN GENERAL.—Section 45(a) of the Small Busi4 ness Act (15 U.S.C. 657r(a)) is amended by adding at 

5 the end the following new paragraph: 

6 ‘‘(3) PUERTO RICO BUSINESSES.—During the 

7 period beginning on the date of enactment of this 

8 paragraph and ending on the date on which the 

9 Oversight Board established under section 101 of 

10 the Puerto Rico Oversight, Management, and Eco11 nomic Stability Act (48 U.S.C. 2121) terminates, 

12 the Administrator shall identify potential incentives 

13 to a covered mentor that awards a subcontract to its 

14 covered protege, including— 

15 ‘‘(A) positive consideration in any past per16 formance evaluation of the covered mentor; 

17 ‘‘(B) the application of costs incurred for 

18 providing training to such covered protege to 

19 the subcontracting plan (as required under 

20 paragraph (4) or (5) of section 8(d)) of the cov21 ered mentor; and 

22 ‘‘(C) such other incentives as the Adminis23 trator determines appropriate.’’. 

24 (b) DEFINITIONS.—Section 45(d) of the Small Busi25 ness Act (15 U.S.C. 657r(d)) is amended by adding at 

26 the end the following new paragraphs: 


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1 ‘‘(4) COVERED MENTOR.—The term ‘covered 

2 mentor’ means a mentor that enters into an agree3 ment under this Act, or under any mentor-protege 

4 program approved under subsection (b)(1), with a 

5 covered protege. 

6 ‘‘(5) COVERED PROTEGE.—The term ‘covered 

7 protege’ means a protege of a covered mentor that 

8 is a Puerto Rico business.’’. 

9 SEC. 6. ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS 

10 FOR PROTEGE FIRMS THAT ARE PUERTO 

11 RICO BUSINESSES. 

12 Section 45(b)(3)(A) of the Small Business Act (15 

13 U.S.C. 657r(b)(3)(A)) is amended by inserting ‘‘, except 

14 that such restrictions shall not apply to up to 2 mentor15 protege relationships if such relationships are between a 

16 covered protege and covered mentor’’ after ‘‘each partici17 pant’’. 

Æ 


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