I

104TH CONGRESS

2D SESSION H. R. 3994

To amend the Small Business Act to provide comprehensive and structured

business development assistance to emerging small business concerns

owned by economically disadvantaged individuals to foster their entrepreneurial potential and marketplace success, without relying on preferential award of Government contracts, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1996

Mrs. MEYERS of Kansas introduced the following bill; which was referred to

the Committee on Small Business

A BILL

To amend the Small Business Act to provide comprehensive

and structured business development assistance to

emerging small business concerns owned by economically

disadvantaged individuals to foster their entrepreneurial

potential and marketplace success, without relying on

preferential award of Government contracts, 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 ‘‘Entrepreneur Develop5 ment Program Act of 1996’’.
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1 SEC. 2. ENTREPRENEUR DEVELOPMENT PROGRAM.

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

3 636(j)) is amended to read as follows:

4 ‘‘SEC. 7(j) ENTREPRENEUR DEVELOPMENT PRO5 GRAM.—

6 ‘‘(1) PROGRAM ESTABLISHED.—There is estab7 lished within the Administration an Entrepreneur

8 Development Program (hereinafter referred to as the

9 ‘Program’). The Program shall provide comprehen10 sive and structured business development assistance

11 to foster the entrepreneurial potential of emerging

12 small business concerns owned and controlled by eli13 gible individuals. The Program shall be managed by

14 an Associate Administrator under the supervision of,

15 and responsible to, the Administrator.

16 ‘‘(2) ELIGIBILITY.—

17 ‘‘(A) IN GENERAL.—The Program estab18 lished by paragraph (1) shall be available exclu19 sively to emerging small business concerns

20 owned and controlled by eligible individuals,

21 whose status as such has been certified by the

22 Administration.

23 ‘‘(B) PROGRAM PARTICIPANT.—The term

24 ‘Program Participant’ means an emerging small

25 business concern, meeting the requirements of

26 subparagraph (C), which
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1 ‘‘(i) is at least 51 percent uncondi2 tionally owned by

3 ‘‘(I) one or more eligible individ4 uals,

5 ‘‘(II) an Indian tribe (or a wholly

6 owned business entity of such tribe),

7 or

8 ‘‘(III) a Native Hawaiian organi9 zation, or

10 ‘‘(ii) in the case of any publicly-owned

11 business, at least 51 percent of the stock

12 of such concern is unconditionally owned

13 by

14 ‘‘(I) one or more eligible individ15 uals,

16 ‘‘(II) an Indian tribe (or a wholly

17 owned business entity of such tribe),

18 or

19 ‘‘(III) a Native Hawaiian organi20 zation.

21 ‘‘(C) CONTROL OF DAILY BUSINESS OPER22 ATIONS.—A concern meets the requirements of

23 this subparagraph if the management and daily

24 business operations of such concern are con25 trolled by one or more eligible individuals, an
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1 Indian tribe, or a Native Hawaiian organiza2 tion.

3 ‘‘(D) EMERGING SMALL BUSINESS CON4 CERN.—For the purposes of this subsection, the

5 term emerging small business concern means a

6 small business concern the size of which is less

7 than or equal to 25 percent of the numerical

8 size standard for the standard industrial classi9 fication that encompasses the principal line of

10 business of such concern.

11 ‘‘(E) ELIGIBLE INDIVIDUAL.—For partici12 pation in the program, an individual must not

13 have a net worth in excess of $250,000, exclud14 ing from such computation the value of the per15 son’s investment in the emerging small business

16 concern that will participate in the Program.

17 ‘‘(3) OUTREACH FOR PROGRAM PARTICI18 PANTS.—The Administration shall develop and im19 plement an outreach program to inform and recruit

20 eligible concerns to apply for the Program. Such

21 outreach program shall make a sustained and sub22 stantial effort to solicit Program applications from

23 small business concerns located within States having

24 relatively few Program Participants.
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1 ‘‘(4) DETERMINATIONS OF INDIVIDUAL ELIGI2 BILITY.—

3 ‘‘(A) DIVISION OF PROGRAM CERTIFI4 CATION AND ELIGIBILITY ESTABLISHED.—

5 There is established a Division of Program Cer6 tification and Eligibility (hereinafter referred to

7 as the ‘Division’). The Division shall be headed

8 by a Director who shall report to the Associate

9 Administrator responsible for the Program.

10 ‘‘(B) RESPONSIBILITIES OF THE DIVI11 SION.—The responsibilities of the Division are

12 to—

13 ‘‘(i) receive, review, and evaluate ap14 plications for certification as a Program

15 Participant pursuant to the eligibility cri16 teria in paragraph (2);

17 ‘‘(ii) advise each Program applicant

18 within 15 days after the receipt of an ap19 plication as to whether such application is

20 complete and suitable for evaluation and, if

21 not, what matters must be rectified;

22 ‘‘(iii) render recommendations on such

23 applications to the Associate Administrator

24 for the Program;
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1 ‘‘(iv) review and evaluate financial

2 statements and other submissions from

3 Program Participants;

4 ‘‘(v) make requests for the initiation

5 of termination or graduation proceedings,

6 as appropriate, to the Associate Adminis7 trator;

8 ‘‘(vi) make recommendations to the

9 Associate Administrator concerning re10 quests for reconsideration or challenges

11 from applicants that have been denied pro12 gram admission; and

13 ‘‘(vii) decide protests regarding the

14 current eligibility a Program Participant

15 for continued Program participation.

16 ‘‘(C) DEADLINE FOR ACTION ON PROGRAM

17 APPLICATIONS.—Not later than 90 days after

18 receipt of a completed application for Program

19 certification, the Associate Administrator for

20 the Program shall certify a small business con21 cern as a Program Participant or shall deny

22 such application.

23 ‘‘(D) ADDITIONAL LIMITATIONS ON PRO24 GRAM ELIGIBILITY.—
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1 ‘‘(i) Except for an Indian tribe or a

2 Native Hawaiian organization, no individ3 ual upon whom the eligibility of a firm

4 which graduated from the Minority Small

5 Business and Capital Ownership Develop6 ment Program before the effective date of

7 this subsection shall be eligible to assert

8 such status with respect to any other busi9 ness concern making application for the

10 Program certification after such effective

11 date.

12 ‘‘(ii) Except in the case of an Indian

13 tribe or a Native Hawaiian organization,

14 an individual upon whom eligibility is

15 based pursuant to paragraph (2) shall be

16 permitted to assert such Program eligi17 bility for only one small business concern.

18 ‘‘(iii) No concern shall be subse19 quently recertified for Program participa20 tion if its prior Program participation was

21 concluded for any of the reasons described

22 in paragraph (9).

23 ‘‘(5) DURATION OF PARTICIPATION.—The term

24 of participation in the Program shall be five years
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1 from the date of certification as a Program Partici2 pant.

3 ‘‘(6) BUSINESS PLANNING.—

4 ‘‘(A) PLAN REQUIRED.—Each concern

5 making application to the Program and each

6 Program Participant shall submit to the Ad7 ministration a business plan (referred to as the

8 ‘business plan’), addressing the matters de9 scribed in subparagraph (B).

10 ‘‘(B) CONTENTS OF THE BUSINESS

11 PLAN.—For the purposes of subparagraph (A),

12 a business plan shall include the following:

13 ‘‘(i) An analysis of market potential,

14 competitive environment, and other busi15 ness analyses estimating the firm’s pros16 pects for profitable operations during its

17 Program participation term and after

18 graduation.

19 ‘‘(ii) An analysis of the firm’s busi20 ness strengths and weaknesses with par21 ticular attention to correcting any finan22 cial, managerial, technical, or personnel

23 weaknesses which are likely to impede the

24 business development of the firm.
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1 ‘‘(iii) Specific targets, objectives, and

2 goals for the firms business development

3 during the next year and each succeeding

4 year of its Program participation term and

5 three years after exiting the Program, uti6 lizing the results of the analyses conducted

7 pursuant to clauses (i) and (ii).

8 ‘‘(iv) Continuous attention regarding

9 the Program Participant’s successful tran10 sition to sustainable business operations

11 after exiting the Program.

12 ‘‘(C) MAINTAINING A CURRENT BUSINESS

13 PLAN.—Each Program Participant shall annu14 ally review its currently approved plan with its

15 Business Opportunity Specialist and modify

16 such plan as may be appropriate. Any modified

17 plan shall be submitted to the Administration

18 for approval. The currently approved plan shall

19 be considered valid until such time as a modi20 fied plan is approved.

21 ‘‘(7) FORMS OF ASSISTANCE.—

22 ‘‘(A) IN GENERAL.—The assistance pro23 vided to a Program Participant may include—

24 ‘‘(i) developing and maintaining the

25 Program Participant’s business plan;
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1 ‘‘(ii) providing access to training and

2 assistance in general business management

3 (including, but not limited to, organiza4 tional management, financial management,

5 personnel management, marketing, and

6 proposal development);

7 ‘‘(iii) facilitating access to debt fi8 nancing through guaranteed loans made

9 pursuant to section 7(a) and other means;

10 ‘‘(iv) facilitating access to equity fi11 nancing through the Small Business In12 vestment Company Program and other

13 means; and

14 ‘‘(v) facilitating access to adequate

15 surety bonding through the surety bond

16 guarantee programs authorized by part B

17 of title IV of the Small Business Invest18 ment Act of 1958.

19 ‘‘(B) USE OF PRIVATE SECTOR PART20 NERS.—

21 ‘‘(i) The Administration may provide

22 financial assistance to public or private or23 ganizations to undertake the activities de24 scribed in paragraph (A).
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1 ‘‘(ii) Such financial assistance may be

2 provided through contract, grant or coop3 erative agreement, as may be appropriate.

4 ‘‘(iii) The Administration is author5 ized to make payments under contracts,

6 grants, or cooperative agreements entered

7 into under this paragraph in lump sum or

8 installments, in advance or by way of reim9 bursement, making any necessary adjust10 ments for overpayments or underpayments.

11 ‘‘(8) VERIFICATION OF INDIVIDUAL ELIGI12 BILITY.—

13 ‘‘(A) ANNUAL CERTIFICATION OF OWNER14 SHIP AND CONTROL.—Each Program Partici15 pant shall certify, on an annual basis, that it

16 meets the requirements of paragraph (2)(C) re17 garding ownership and control.

18 ‘‘(B) ANNUAL FINANCIAL STATEMENT.—

19 Each Program Participant shall annually sub20 mit to the Administration such information as

21 may be necessary for the Administration to

22 make a determination of continued eligibility

23 for Program participation, including a personal

24 financial statement from each owner.
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1 ‘‘(C) PROMPT NOTIFICATION OF CHANGE

2 OF OWNERSHIP REQUIRED.—A Program Partic3 ipant shall notify the Administrator imme4 diately upon entering an agreement (either oral

5 or in writing) to transfer all or part of its stock

6 or other ownership interest to any other party.

7 ‘‘(D) SPECIAL RULE FOR TRANSFERS TO

8 SMALL BUSINESS INVESTMENT COMPANIES.—

9 For the purposes of determining ownership and

10 control of a Program Participant, any potential

11 ownership interests held by investment compa12 nies licensed under the Small Business Invest13 ment Act of 1958 shall be treated in the same

14 manner as interests held by the individuals

15 upon whom Program eligibility is based.

16 ‘‘(E) STATUS REVIEW.—

17 ‘‘(i) Whenever the Administration has

18 reason to believe, based upon specific and

19 credible information, that a Program Par20 ticipant no longer meets the requirements

21 for the Program, the Administration shall

22 conduct a review, and if appropriate, take

23 remedial action.

24 ‘‘(ii) If the Administration determines,

25 pursuant to such review, that a Program
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1 Participant (other than an Indian tribe or

2 a Native Hawaiian Organization) or its

3 owners are no longer eligible, a termination

4 proceeding shall be commenced.

5 ‘‘(9) TERMINATION OF PARTICIPATION.—

6 ‘‘(A) IN GENERAL.—A Program Partici7 pant shall cease to be a Program Participant,

8 if such firm—

9 ‘‘(i) voluntarily elects not to continue

10 Program participation;

11 ‘‘(ii) completes its term of Program

12 participation;

13 ‘‘(iii) is terminated from Program

14 participation pursuant to a termination

15 proceeding; or

16 ‘‘(iv) is graduated pursuant to a grad17 uation proceeding.

18 ‘‘(B) TERMINATION.—

19 ‘‘(i) DEFINITION.—For the purposes

20 of this subsection, the term ‘termination’

21 (or ‘terminated’) means the total denial or

22 suspension of Program participation prior

23 to the Program Participant exiting the

24 Program due to graduation or the expira25 tion of its Program Participation term.
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1 ‘‘(ii) GROUNDS FOR TERMINATION.—

2 An action for termination shall be based

3 upon good cause as specified in implement4 ing regulation, and shall include—

5 ‘‘(I) failure of the Program Par6 ticipant to maintain its eligibility for

7 Program participation;

8 ‘‘(II) a demonstrated pattern of

9 failing to make required submissions

10 or responses to the Administration in

11 a timely manner; or

12 ‘‘(III) willful violation of any rule

13 or regulation of the Administration

14 pertaining to material issues relating

15 to Program participation.

16 ‘‘(iii) TERMINATION PROCEEDING.—

17 Whenever the Administration determines

18 to initiate a termination proceeding, within

19 15 days after making such a determina20 tion, the Program Participant shall be pro21 vided a written notice of intent to termi22 nate, specifying the reasons for such ac23 tion. No Program Participant shall be ter24 minated without first being afforded an op25 portunity for a hearing on the record, in
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1 accordance with chapter 5 of title 5, Unit2 ed States Code.

3 ‘‘(C) GRADUATION.—

4 ‘‘(i) DEFINITION.—For the purposes

5 of this subsection, the term ‘graduation’

6 (or ‘graduated’) means that the Program

7 Participant is recognized as successfully

8 completing the Program by substantially

9 achieving the targets, objectives, and goals

10 contained in its business plan, or otherwise

11 demonstrating its ability to compete in the

12 marketplace.

13 ‘‘(ii) GRADUATION PROCEEDING.—

14 Whenever the Administration determines

15 to initiate a graduation proceeding with

16 which the Program Participant does not

17 concur, within 15 days after making such

18 determination, the Program Participant

19 shall be provided a written notice of the

20 Administration’s intent to involuntarily

21 graduate the concern, specifying the rea22 sons for such determination. No Program

23 Participant shall be involuntarily grad24 uated without first being offered an oppor25 tunity for a hearing on the record, in ac-
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1 cordance with chapter 5 of title 5, United

2 States Code.

3 ‘‘(10) PROGRAM MANAGEMENT.—

4 ‘‘(A) MANAGEMENT INFORMATION SYS5 TEM.—The Administrator shall develop and im6 plement a process for the systematic collection

7 of data on the operations of the Program, mon8 itoring regularly the effectiveness of the assist9 ance being provided to each Program Partici10 pant.

11 ‘‘(B) ANNUAL REPORT TO CONGRESS.—

12 ‘‘(i) REPORT REQUIRED.—Not later

13 than April 30 of each year, the Adminis14 trator shall submit a report to the Con15 gress on the Program regarding the effec16 tiveness of the Program in fostering the

17 entrepreneurial development of Program

18 Participants.

19 ‘‘(ii) CONTENTS OF THE REPORT.—In

20 addition to such performance measures as

21 the Administrator deems appropriate, the

22 report shall include the following—

23 ‘‘(I) The average personal net

24 worth of individuals who own and con25 trol concerns that were initially cer-
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1 tified for participation in the Program

2 during the immediately preceding fis3 cal year.

4 ‘‘(II) A compilation and evalua5 tion of those business concerns that

6 have exited the Program during the

7 immediately preceding three fiscal

8 years. Such compilation and evalua9 tion shall detail the number of con10 cerns actively engaged in business op11 erations, those that have ceased or

12 substantially curtailed such operations

13 (including the reasons for such ac14 tions), and those concerns that have

15 been acquired by other business con16 cerns or entities.

17 ‘‘(III) A listing of all participants

18 in the Program during the preceding

19 fiscal year identifying, by State and

20 by Region, for each firm: the name of

21 the concern, the race or ethnicity, and

22 gender of the owners, gross receipts,

23 number of employees, the dollar value

24 of all contracts received in the preced25 ing year, the dollar amount of ad-
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1 vance payments received by each con2 cern, and a description including (if

3 appropriate) an estimate of the dollar

4 value of all other assistance furnished

5 under the Program during such year.

6 ‘‘(C) The first report required by subpara7 graph (B) shall pertain to fiscal year 1997.

8 ‘‘(11) PERSERVING PROGRAM INTEGRITY.—

9 ‘‘(A) IN GENERAL.—No person within the

10 employ of the Administration shall, during the

11 term of such employment and for a period of

12 two years after such employment has been ter13 minated, engage in any activity or transaction

14 specified in subparagraph (B) with respect to

15 any Program Participant during such person’s

16 term of employment, if such person participated

17 personally (either directly or indirectly) in deci18 sionmaking responsibilities relating to such Pro19 gram Participant or with respect to the admin20 istration of any assistance provided to Program

21 Participants generally under this subsection.

22 ‘‘(B) PROHIBITED ACTIONS.—The activi23 ties and transactions prohibited by subpara24 graph (A) include—
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1 ‘‘(i) the buying, selling, or receiving

2 (except by inheritance) of any legal or ben3 eficial ownership of stock or any other

4 ownership interest or the right to acquire

5 any such interest;

6 ‘‘(ii) the entering into or execution of

7 any written or oral agreement (whether or

8 not legally enforceable) to purchase or oth9 erwise obtain any right or interest de10 scribed in clause (i); or

11 ‘‘(iii) the receipt of any other benefit

12 or right that may be an incident of owner13 ship.

14 ‘‘(D) PENALTIES.—Any present or former

15 employee of the Administration who violates

16 this paragraph shall be subject to a civil pen17 alty, assessed by the Attorney General, that

18 shall not exceed 300 percent of the maximum

19 amount of gain such employee realized or could

20 have realized as a result of engaging in those

21 activities and transactions prescribed by sub22 paragraph (B).’’
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1 SEC. 3. ELIMINATION OF 8(a) CONTRACTING AUTHORITY.

2 (a) REPEAL OF SECTION 8(A).—Section 8(a) of the

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

4 as follows:

5 ‘‘SEC. 8(a). [RESERVED].’’

6 (b) AUTHORITY TO PERFORM EXISTING 8(a) CON7 TRACTS.—Subject to the provisions of Section 8(a) of the

8 Small Business Act (15 U.S.C. 637(a)) as in effect on the

9 day before the date of enactment of this Act, a contract

10 (including options) awarded pursuant to that subsection

11 may be performed by the concern awarded such contract.

12 (c) DEFINITIONS.—Section 3 of the Small Business

13 Act (15 U.S.C. 632) is amended by adding the following

14 new subsections:

15 ‘‘(o) For the purposes of this Act, the term ‘Indian

16 tribe’ means any band, nation, or other organized group

17 or community of Indians, including any Alaska Native vil18 lage or a regional or village corporation (within the mean19 ing of the Alaska Native Claims Settlement Act) which

20 is recognized as—

21 ‘‘(1) eligible for the special programs and serv22 ices provided by the United States to Indians be23 cause of their status as Indians, or

24 ‘‘(2) an Indian tribe by the State in which such

25 band, nation, group, or community resides.
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1 ‘‘(p) For the purposes of this Act, the term ‘Native

2 Hawaiian Organization’ means any community service or3 ganization serving Native Hawaiians in the State of Ha4 waii, which—

5 ‘‘(1) is a not-for-profit organization chartered

6 by the State of Hawaii,

7 ‘‘(2) is controlled by Native Hawaiians, and

8 ‘‘(3) whose business activities will principally

9 benefit Native Hawaiians.’’.

10 (d) STATUS PROTEST SYSTEM.—Section 8(d) of the

11 Small Business Act (15 U.S.C. 637(d)) is amended by

12 adding at the end thereof a new paragraph (11), as fol13 lows:

14 ‘‘(11)(A) A protest may be brought regarding a

15 representation by a business concern regarding its

16 status as small business concern owned and con17 trolled by socially and economically disadvantaged

18 individuals by

19 ‘‘(i) another person with a direct economic

20 interest in the award of the contract or sub21 contract under which such business has alleg22 edly made the false representation regarding its

23 status as a small business concern owned and

24 controlled by socially and economically dis25 advantaged individuals;
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1 ‘‘(ii) a prime contractor receiving specific

2 and credible information that an actual or pro3 spective subcontractor or supplier has falsely

4 represented its status as a small business con5 cern owned and controlled by socially and eco6 nomically disadvantaged individuals;

7 ‘‘(iii) a contracting officer receiving a rep8 resentation regarding an actual or prospective

9 contractor’s status, which such officer believes

10 to be false; or

11 ‘‘(iv) the Administrator (or a designee of

12 such officer).

13 ‘‘(B) The Office of Hearings and Appeals shall

14 hear appeals regarding the status of a concern as a

15 small business concern owned and controlled by so16 cially and economically disadvantaged individuals for

17 the purposes of any program or activity conducted

18 pursuant to this subject or any other Federal law

19 that refers to this subsection for a description of

20 program eligibility.

21 ‘‘(C) A decision issued pursuant to subpara22 graph (B) shall—

23 ‘‘(i) be made available to all parties to the

24 proceeding;

25 ‘‘(ii) be published in full text; and
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1 ‘‘(iii) include findings of fact and conclu2 sions of law, with specific reasons supporting

3 such findings and conclusions, on each material

4 issue of fact and law of decisional significance

5 regarding the disposition of the protest.

6 ‘‘(D) A decision issued pursuant to subpara7 graph (B) shall be considered a final agency action,

8 and shall be subject to judicial review under section

9 553 of title 5, United States Code.

10 ‘‘(E) If a firm engages in a pattern of misrepre11 sentations regarding the firm’s status in violation of

12 section 16(d)(1), the Administration or the executive

13 agency receiving such misrepresentations of status

14 shall initiate an action to impose an appropriate

15 sanction under section 16(d)(2).’’.

16 (4) SIZE DETERMINATIONS REGARDING TRIB17 ALLY-OWNED CORPORATIONS.—Section 3(a) of the

18 Small Business Act (15 U.S.C. 632(a)) is amended

19 by adding at the end the following new paragraph:

20 ‘‘(4) In determining the size of a business con21 cern owned by an Indian tribe (or a wholly-owned

22 business entity of such tribe), each firm’s size shall

23 be independently determined without regard to its

24 affiliation with the tribe, any entity of the tribal gov25 ernment, or any other business enterprise owned by
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1 the tribe, unless the Administrator determines that

2 one or more such tribally-owned business concerns

3 have obtained (or are likely to obtain) a substantial

4 unfair competitive advantage within an industry cat5 egory.’’.

6 (5) POLITICALLY MOTIVATED ACTIONS PROHIB7 ITED.—Section 4 of the Small Business Act (15

8 U.S.C. 633) is amended by adding at the end the

9 following new subsection:

10 ‘‘(g) POLITICALLY MOTIVATED ACTIONS PROHIB11 ITED.—

12 ‘‘(1) IN GENERAL.—Any employee of the Ad13 ministration who has authority to take, direct others

14 to take, recommend, or approve any action with re15 spect to any program or activity conducted pursuant

16 to this Act, shall not, with respect to any such ac17 tion, exercise or threaten to exercise such authority

18 on the basis of the political activity or affiliation of

19 any party. Employees of the Administration shall ex20 peditiously report to the Inspector General of the

21 Administration any such action for which such em22 ployee’s participation has been solicited or directed.

23 ‘‘(2) PENALTIES AUTHORIZED.—Any employee

24 who willfully and knowingly violates paragraph (1)

25 shall be subject to disciplinary action, which may
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1 consist of separation from service, reduction in

2 grade, suspension, or reprimand.

3 ‘‘(3) RULE OF CONSTRUCTION.—Paragraph (1)

4 shall not apply to any action taken as a penalty or

5 other enforcement of a violation of any law, or regu6 lation prohibiting or restricting political activity.

7 ‘‘(4) SAVINGS PROVISION.—The prohibitions of

8 paragraph (1), and remedial measures provided for

9 under paragraphs (2) and (3) with regard to such

10 prohibitions, shall be in addition to, and not in lieu

11 of, any other prohibitions, measures or liabilities

12 that may arise under any other provision of law.’’.

13 SEC. 4. PROCUREMENT FORECASTS.

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

15 644(d)) is amended to read as follows:

16 ‘‘(d)(1) Each executive agency reporting to the Fed17 eral Procurement Data System contract actions with an

18 aggregate value in excess of $50,000,000 in fiscal year

19 1995, or in any succeeding fiscal year, shall prepare a

20 forecast of expected contract opportunities or classes of

21 contract opportunities for the next and succeeding fiscal

22 years that small business concerns, including those owned

23 and controlled by women or socially and economically dis24 advantaged individuals, are capable of performing. Such

25 forecast shall be periodically revised during such year.
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1 ‘‘(2) To the extent such information is available, the

2 agency forecasts required by paragraph (1) shall specify—

3 ‘‘(A) The approximate number of individual

4 contract opportunities (and the number of opportu5 nities within a class).

6 ‘‘(B) The approximate dollar value, or range of

7 dollar values, for each contract opportunity or class

8 of contract opportunities.

9 ‘‘(C) The anticipated time (by fiscal year quar10 ter) for the issuance of a procurement request.

11 ‘‘(D) The activity responsible for the award and

12 administration of the contract.

13 ‘‘(3) The head of such executive agency subject to

14 the provisions of paragraph (1) shall, within 10 days of

15 its completion, furnish such forecast (and any modifica16 tion) to—

17 ‘‘(A) the Director of the Office of Small and

18 Disadvantaged Business Utilization established pur19 suant to section 15(k) for such agency; and

20 ‘‘(B) the Administrator.

21 ‘‘(4) The information reported pursuant to paragraph

22 (1) may be limited to classes of items and services for

23 which there are substantial annual purchases.

24 ‘‘(5) Such forecasts shall be made available to any

25 small business concerns upon request.’’.
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1 SEC. 5. NON-MANUFACTURER RULE.

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

3 644(f)) is amended to read as follows:

4 ‘‘(f)(1) An otherwise responsible small business con5 cern that is in compliance with the requirements of para6 graph (2) shall not be denied the opportunity to submit

7 and have considered its offer for any procurement contract

8 for the supply of a product to be let pursuant to subsection

9 (a) solely because such concern is other than the actual

10 manufacturer or processor of the product to be supplied

11 under the contract.

12 ‘‘(2) To be in compliance with the requirements re13 ferred to in paragraph (1), such a business concern

14 shall—

15 ‘‘(A) be primarily engaged in the wholesale or

16 retail trade;

17 ‘‘(B) be a small business concern under the nu18 merical size standard for the Standard Industrial

19 Classification Code assigned to the contract solicita20 tion on which the offer is being made;

21 ‘‘(C) be a regular dealer, as defined pursuant to

22 section 35(a) of title 41, United States Code (popu23 larly referred to as the Walsh-Healey Public Con24 tracts Act), in the product to be offered the Govern25 ment; and
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1 ‘‘(D) represent that it will supply the product

2 of a domestic small business manufacturer or proc3 essor, unless a waiver of such requirement is grant4 ed.

5 ‘‘(i) by the Administrator, after reviewing

6 a determination by the contracting officer that

7 no small business manufacturer or processor

8 can reasonably be expected to offer a product

9 meeting the specifications (including period for

10 performance) required of an offeror by the so11 licitation; or

12 ‘‘(ii) by the Administrator for a product

13 (or class of products), after determining that no

14 small business manufacturer or processor is

15 available to participate in the Federal procure16 ment market.’’.

17 SEC. 6. REFERENCES TO ADMINISTRATOR.

18 In this Act, the term Administrator means Adminis19 trator of the Small Business Administration.

Æ