```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2989 Reported in Senate (RS)]

                                                       Calendar No. 635
111th CONGRESS
  2d Session
                                S. 2989

                          [Report No. 111-343]

       To improve the Small Business Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 4, 2010

 Ms. Landrieu (for herself, Ms. Snowe, Mrs. Shaheen, Mr. Feingold, Ms. 
  Klobuchar, Mr. Merkley, Mr. Specter, Mr. Burris, Ms. Stabenow, Ms. 
Cantwell, and Mr. Cardin) introduced the following bill; which was read 
       twice and referred to the Committee on Small Business and 
                            Entrepreneurship

                           September 29, 2010

              Reported by Ms. Landrieu, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
       To improve the Small Business Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Small Business Contracting 
Revitalization Act of 2010''.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents for this Act is as 
follows:</DELETED>

<DELETED>Sec. 1. Short title.
<DELETED>Sec. 2. Table of contents.
<DELETED>Sec. 3. Definitions.
                  <DELETED>TITLE I--CONTRACT BUNDLING

<DELETED>Sec. 101. Leadership and oversight.
<DELETED>Sec. 102. Consolidation of contract requirements.
<DELETED>Sec. 103. Small business teams pilot program.
              <DELETED>TITLE II--SUBCONTRACTING INTEGRITY

<DELETED>Sec. 201. GAO recommendations on subcontracting 
                            misrepresentations.
<DELETED>Sec. 202. Small business subcontracting improvements.
                <DELETED>TITLE III--ACQUISITION PROCESS

<DELETED>Sec. 301. Reservation of prime contract awards for small 
                            businesses.
<DELETED>Sec. 302. Micro-purchase guidelines.
<DELETED>Sec. 303. Agency accountability.
<DELETED>Sec. 304. Payment of subcontractors.
<DELETED>Sec. 305. Repeal of Small Business Competitiveness 
                            Demonstration Program.
      <DELETED>TITLE IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

<DELETED>Sec. 401. Policy and presumptions.
<DELETED>Sec. 402. Annual certification.
<DELETED>Sec. 403. Training for contracting and enforcement personnel.
<DELETED>Sec. 404. Updated size standards.
<DELETED>Sec. 405. Study and report on the mentor-protege program.

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act--</DELETED>
        <DELETED>    (1) the terms ``Administration'' and 
        ``Administrator'' mean the Small Business Administration and 
        the Administrator thereof, respectively; and</DELETED>
        <DELETED>    (2) the term ``small business concern'' has the 
        meaning given that term under section 3 of the Small Business 
        Act (15 U.S.C. 632).</DELETED>

             <DELETED>TITLE I--CONTRACT BUNDLING</DELETED>

<DELETED>SEC. 101. LEADERSHIP AND OVERSIGHT.</DELETED>

<DELETED>    (a) In General.--Section 15 of the Small Business Act (15 
U.S.C. 644) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(q) Bundling Accountability Measures.--</DELETED>
        <DELETED>    ``(1) Teaming requirements.--Each Federal agency 
        shall include in each solicitation for any contract award above 
        the substantial bundling threshold of the Federal agency a 
        provision soliciting bids by teams and joint ventures of small 
        business concerns.</DELETED>
        <DELETED>    ``(2) Agency policies on reduction of contract 
        bundling.--The head of each Federal agency shall--</DELETED>
                <DELETED>    ``(A) not later than 180 days after the 
                date of enactment of this subsection, publish on the 
                website of the Federal agency the policy of the Federal 
                agency regarding contracting bundling and 
                consolidation, including regarding the solicitation of 
                teaming and joint ventures under paragraph (1); 
                and</DELETED>
                <DELETED>    ``(B) not later than 30 days after the 
                date on which the head of the Federal agency submits 
                data certifications to the Administrator for Federal 
                Procurement Policy, publish on the website of the 
                Federal agency a list and rationale for any bundled 
                contract for which the Federal agency solicited bids or 
                that was awarded by the Federal agency.</DELETED>
        <DELETED>    ``(3) Reporting.--Not later than 90 days after the 
        date of enactment of this subsection, and every 3 years 
        thereafter, the Director of Small and Disadvantaged Business 
        Utilization for each Federal agency shall submit to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives a report regarding procurement center 
        representatives and commercial market representatives, which 
        shall--</DELETED>
                <DELETED>    ``(A) identify each area for which the 
                Federal agency has assigned a procurement center 
                representative or a commercial market 
                representative;</DELETED>
                <DELETED>    ``(B) explain why the Federal agency 
                selected the areas identified under subparagraph (A); 
                and</DELETED>
                <DELETED>    ``(C) describe the activities performed by 
                procurement center representatives and commercial 
                market representatives.''.</DELETED>
<DELETED>    (b) Technical Correction.--Section 15(g) of the Small 
Business Act (15 U.S.C. 644(g)) is amended by striking ``Administrator 
of the Office of Federal Procurement Policy'' each place it appears and 
inserting ``Administrator for Federal Procurement Policy''.</DELETED>
<DELETED>    (c) Report.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Comptroller General of the 
        United States shall submit to Congress a report regarding the 
        procurement center representative program of the 
        Administration.</DELETED>
        <DELETED>    (2) Contents.--The report submitted under 
        paragraph (1) shall--</DELETED>
                <DELETED>    (A) address ways to improve the 
                effectiveness of the procurement center representative 
                program in helping small business concerns obtain 
                Federal contracts;</DELETED>
                <DELETED>    (B) evaluate the effectiveness of 
                procurement center representatives and commercial 
                marketing representatives; and</DELETED>
                <DELETED>    (C) include recommendations, if any, on 
                how to improve the procurement center representative 
                program.</DELETED>
<DELETED>    (d) Electronic Procurement Center Representative.--Not 
later than 180 days after the date of enactment of this Act, the 
Administrator shall implement an electronic procurement center 
representative program.</DELETED>

<DELETED>SEC. 102. CONSOLIDATION OF CONTRACT REQUIREMENTS.</DELETED>

<DELETED>    The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) by redesignating section 44 as section 45; 
        and</DELETED>
        <DELETED>    (2) by inserting after section 43 the 
        following:</DELETED>

<DELETED>``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.</DELETED>

<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `Chief Acquisition Officer' means 
        the employee of a Federal agency designated as the Chief 
        Acquisition Officer for the Federal agency under section 16(a) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        414(a));</DELETED>
        <DELETED>    ``(2) the term `consolidation of contract 
        requirements', with respect to contract requirements of a 
        Federal agency, means a use of a solicitation to obtain offers 
        for a single contract or a multiple award contract to satisfy 2 
        or more requirements of the Federal agency for goods or 
        services that have been, are being, or will be provided to, or 
        will be performed for or would typically be performed for, the 
        Federal agency under 2 or more separate contracts lower in cost 
        than the total cost of the contract for which the offers are 
        solicited;</DELETED>
        <DELETED>    ``(3) the term `Federal agency' does not include 
        the Department of Defense or any agency of the Department of 
        Defense;</DELETED>
        <DELETED>    ``(4) the term `multiple award contract' means--
        </DELETED>
                <DELETED>    ``(A) a multiple award task order contract 
                or delivery order contract that is entered into under 
                the authority of sections 303H through 303K of the 
                Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253h through 253k); and</DELETED>
                <DELETED>    ``(B) any other indefinite delivery, 
                indefinite quantity contract that is entered into by 
                the head of a Federal agency with 2 or more sources 
                pursuant to the same solicitation; and</DELETED>
        <DELETED>    ``(5) the term `senior procurement executive' 
        means an official designated under section 16(c) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 414(c)) as the 
        senior procurement executive for a Federal agency.</DELETED>
<DELETED>    ``(b) Policy.--The head of each Federal agency shall 
ensure that the decisions made by the Federal agency regarding 
consolidation of contract requirements of the Federal agency are made 
with a view to providing small business concerns with appropriate 
opportunities to participate as prime contractors and subcontractors in 
the procurements of the Federal agency.</DELETED>
<DELETED>    ``(c) Limitation on Use of Acquisition Strategies 
Involving Consolidation.--</DELETED>
        <DELETED>    ``(1) In general.--The head of a Federal agency 
        may not carry out an acquisition strategy that includes a 
        consolidation of contract requirements of the Federal agency 
        with a total value of more than $2,000,000, unless the senior 
        procurement executive or Chief Acquisition Officer for the 
        Federal agency, before carrying out the acquisition strategy--
        </DELETED>
                <DELETED>    ``(A) conducts market research;</DELETED>
                <DELETED>    ``(B) identifies any alternative 
                contracting approaches that would involve a lesser 
                degree of consolidation of contract requirements; 
                and</DELETED>
                <DELETED>    ``(C) determines that the consolidation of 
                contract requirements is necessary and 
                justified.</DELETED>
        <DELETED>    ``(2) Determination that consolidation is 
        necessary and justified.--</DELETED>
                <DELETED>    ``(A) In general.--A senior procurement 
                executive or Chief Acquisition Officer may determine 
                that an acquisition strategy involving a consolidation 
                of contract requirements is necessary and justified for 
                the purposes of paragraph (1)(C) if the benefits of the 
                acquisition strategy substantially exceed the benefits 
                of each of the possible alternative contracting 
                approaches identified under paragraph (1)(B).</DELETED>
                <DELETED>    ``(B) Savings in administrative or 
                personnel costs.--For purposes of subparagraph (A), 
                savings in administrative or personnel costs alone do 
                not constitute a sufficient justification for a 
                consolidation of contract requirements in a procurement 
                unless the expected total amount of the cost savings, 
                as determined by the senior procurement executive or 
                Chief Acquisition Officer, is substantial in relation 
                to the total cost of the procurement.</DELETED>
        <DELETED>    ``(3) Benefits to be considered.--The benefits 
        considered for the purposes of paragraphs (1) and (2) may 
        include cost and, regardless of whether quantifiable in dollar 
        amounts--</DELETED>
                <DELETED>    ``(A) quality;</DELETED>
                <DELETED>    ``(B) acquisition cycle;</DELETED>
                <DELETED>    ``(C) terms and conditions; and</DELETED>
                <DELETED>    ``(D) any other benefit.''.</DELETED>

<DELETED>SEC. 103. SMALL BUSINESS TEAMS PILOT PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``Center'' means the Center for Small 
        Business Teaming established under subsection (b); 
        and</DELETED>
        <DELETED>    (2) the term ``eligible organization'' means a 
        well-established national organization for small business 
        concerns with the capacity to provide assistance to small 
        business concerns (which may be provided with the assistance of 
        the Center) relating to--</DELETED>
                <DELETED>    (A) customer relations and 
                outreach;</DELETED>
                <DELETED>    (B) submitting bids and 
                proposals;</DELETED>
                <DELETED>    (C) team relations and outreach; 
                and</DELETED>
                <DELETED>    (D) performance measurement and quality 
                assurance.</DELETED>
<DELETED>    (b) Establishment.--The Administrator shall establish a 
Center for Small Business Teaming within the Administration to carry 
out a pilot program for teaming and joint ventures involving small 
business concerns.</DELETED>
<DELETED>    (c) Grants.--The Center may make grants to eligible 
organizations to assemble teams of small business concerns to compete 
for larger procurement contracts.</DELETED>
<DELETED>    (d) Contracting Opportunities.--</DELETED>
        <DELETED>    (1) In general.--The Center shall work with 
        eligible organizations receiving a grant under this section to 
        identify appropriate contracting opportunities for teams or 
        joint ventures of small business concerns.</DELETED>
        <DELETED>    (2) Restricted competition.--A contracting officer 
        of a Federal agency may restrict competition for any contract 
        for the procurement of goods or services by the Federal agency 
        to teams or joint ventures of small business concerns if 
        determined appropriate by the contracting officer.</DELETED>
<DELETED>    (e) Termination.--The authorities under this section shall 
terminate 5 years after the date of enactment of this Act.</DELETED>
<DELETED>    (f) Authorization of Appropriations.--There are authorized 
to be appropriated for grants by the Center under subsection (c) 
$5,000,000 for each of fiscal years 2010 through 2015.</DELETED>

         <DELETED>TITLE II--SUBCONTRACTING INTEGRITY</DELETED>

<DELETED>SEC. 201. GAO RECOMMENDATIONS ON SUBCONTRACTING 
              MISREPRESENTATIONS.</DELETED>

<DELETED>    Section 8 of the Small Business Act (15 U.S.C. 637) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(o) Prevention of Misrepresentations in Subcontracting; 
Implementation of Recommendations of Comptroller General.--</DELETED>
        <DELETED>    ``(1) Statement of policy.--It is the policy of 
        Congress that the recommendations of the Comptroller General of 
        the United States in Report No. 05-459, concerning oversight 
        improvements necessary to ensure maximum practicable 
        participation by small business concerns in subcontracting, 
        shall be implemented Government-wide, to the maximum extent 
        possible.</DELETED>
        <DELETED>    ``(2) Contractor compliance.--Compliance of 
        Federal prime contractors with subcontracting plans relating to 
        small business concerns shall be evaluated as a percentage of 
        obligated prime contract dollars and as a percentage of 
        subcontracts awarded.</DELETED>
        <DELETED>    ``(3) Issuance of agency policies.--Not later than 
        180 days after the date of enactment of this subsection, the 
        head of each Federal agency shall issue a policy on 
        subcontracting compliance relating to small business concerns, 
        including assignment of compliance responsibilities between 
        contracting offices, small business offices, and program 
        offices and periodic oversight and review 
        activities.''.</DELETED>

<DELETED>SEC. 202. SMALL BUSINESS SUBCONTRACTING 
              IMPROVEMENTS.</DELETED>

<DELETED>    Section 8(d)(6) of the Small Business Act (15 U.S.C. 
637(d)(6)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (E), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (2) in subparagraph (F), by striking the period at 
        the end and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end, the following:</DELETED>
                <DELETED>    ``(G) a certification that the offeror or 
                bidder will acquire articles, equipment, supplies, 
                services, or materials, or obtain the performance of 
                construction work from the small business concerns used 
                in preparing and submitting to the contracting agency 
                the bid or proposal, in the same amount and quality 
                used in preparing and submitting the bid or proposal, 
                unless the small business concerns are no longer in 
                business or can no longer meet the quality, quantity, 
                or delivery date.''.</DELETED>

           <DELETED>TITLE III--ACQUISITION PROCESS</DELETED>

<DELETED>SEC. 301. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
              BUSINESSES.</DELETED>

<DELETED>    Section 15 of the Small Business Act (15 U.S.C. 644), as 
amended by this Act, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(r) Government-Wide Acquisition Contracts.--Not later 
than 180 days after the date of enactment of this subsection, the 
Administrator for Federal Procurement Policy and the Administrator 
shall jointly, by regulation, establish criteria for Federal agencies 
for--</DELETED>
        <DELETED>    ``(1) setting aside part or parts of a multiple 
        award contract (as defined in section 44), Federal supply 
        schedule contracts, and other Government-wide acquisition 
        contracts for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);</DELETED>
        <DELETED>    ``(2) setting aside orders placed against multiple 
        award contracts, Federal supply schedule contracts, and other 
        Government-wide acquisition contracts for small business 
        concerns, including the subcategories of small business 
        concerns identified in subsection (g)(2); and</DELETED>
        <DELETED>    ``(3) reserving 1 or more contract awards for 
        small business concerns under full and open multiple award 
        procurements, including the subcategories of small business 
        concerns identified in subsection (g)(2).''.</DELETED>

<DELETED>SEC. 302. MICRO-PURCHASE GUIDELINES.</DELETED>

<DELETED>    Not later than 1 year after the date of enactment of this 
Act, the Controller of the Office of Federal Financial Management shall 
issue guidelines regarding the analysis of purchase card expenditures 
to identify opportunities for achieving and accurately measuring fair 
participation of small business concerns in purchases in an amount not 
in excess of the micro-purchase threshold, as defined in section 32 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 428) (in this 
section referred to as ``micro-purchases''), consistent with the 
national policy on small business participation in Federal procurements 
set forth in sections 2(a) and 15(g) of the Small Business Act (15 
U.S.C. 631(a) and 644(g)), and dissemination of best practices for 
participation of small business concerns in micro-purchases.</DELETED>

<DELETED>SEC. 303. AGENCY ACCOUNTABILITY.</DELETED>

<DELETED>    Section 15(g)(2) of the Small Business Act (15 U.S.C. 
644(g)(2)) is amended--</DELETED>
        <DELETED>    (1) by inserting ``(A)'' after ``(2)'';</DELETED>
        <DELETED>    (2) by striking ``Goals established'' and 
        inserting the following:</DELETED>
<DELETED>    ``(B) Goals established'';</DELETED>
        <DELETED>    (3) by striking ``Whenever'' and inserting the 
        following:</DELETED>
<DELETED>    ``(C) Whenever'';</DELETED>
        <DELETED>    (4) by striking ``For the purpose of'' and 
        inserting the following:</DELETED>
<DELETED>    ``(D) For the purpose of'';</DELETED>
        <DELETED>    (5) by striking ``The head of each Federal agency, 
        in attempting to attain such participation'' and inserting the 
        following:</DELETED>
<DELETED>    ``(E) The head of each Federal agency, in attempting to 
attain the participation described in subparagraph (D)''.</DELETED>
        <DELETED>    (6) in subparagraph (E), as so designated--
        </DELETED>
                <DELETED>    (A) by striking ``(A) contracts'' and 
                inserting ``(i) contracts''; and</DELETED>
                <DELETED>    (B) by striking ``(B) contracts'' and 
                inserting ``(ii) contracts''; and</DELETED>
        <DELETED>    (7) by adding at the end the following:</DELETED>
<DELETED>    ``(F)(i) Each procurement employee or program manager 
described in clause (ii)--</DELETED>
        <DELETED>    ``(I) shall communicate to the subordinates of the 
        procurement employee or program manager the importance of 
        achieving small business goals; and</DELETED>
        <DELETED>    ``(II) shall have as a significant factor in the 
        annual performance evaluation of the procurement employee or 
        program manager, where appropriate, the success of that 
        procurement employee or program manager in small business 
        utilization, in accordance with the goals established under 
        this subsection.</DELETED>
<DELETED>    ``(ii) A procurement employee or program manager described 
in this clause is a senior procurement executive, senior program 
manager, or Director of Small and Disadvantaged Business Utilization of 
a Federal agency having contracting authority.''.</DELETED>

<DELETED>SEC. 304. PAYMENT OF SUBCONTRACTORS.</DELETED>

<DELETED>    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(11) Payment of Subcontractors.--</DELETED>
        <DELETED>    ``(A) Definition.--In this paragraph, the term 
        `covered contract' means a contract relating to which a prime 
        contractor is required to develop a subcontracting plan under 
        paragraph (4) or (5).</DELETED>
        <DELETED>    ``(B) Notice.--</DELETED>
                <DELETED>    ``(i) In general.--A prime contractor for 
                a covered contract shall notify in writing the 
                contracting officer for the covered contract if the 
                prime contractor pays a reduced price to a 
                subcontractor for goods and services upon completion of 
                the responsibilities of the subcontractor or the 
                payment to a subcontractor is more than 90 days past 
                due for goods or services provided for the covered 
                contract for which--</DELETED>
                        <DELETED>    ``(I) the Federal agency has paid 
                        the prime contractor; or</DELETED>
                        <DELETED>    ``(II) the prime contractor has 
                        submitted a request for payment to the Federal 
                        agency.</DELETED>
                <DELETED>    ``(ii) Contents.--A prime contractor shall 
                include the reason for the reduction in a payment to or 
                failure to pay a subcontractor in any notice made under 
                clause (i).</DELETED>
                <DELETED>    ``(iii) Public availability.--The head of 
                each Federal agency shall, after redacting information 
                identifying any subcontractor, make publicly available 
                any notice made under clause (i).</DELETED>
        <DELETED>    ``(C) Performance.--A contracting officer for a 
        covered contract shall consider the failure by a prime 
        contractor to make a full or timely payment to a subcontractor 
        in evaluating the performance of the prime 
        contractor.</DELETED>
        <DELETED>    ``(D) Control of funds.--A contracting officer for 
        a covered contract may restrict the authority of a prime 
        contractor that has a history of untimely payment of 
        subcontractors (as determined by the contracting officer) to 
        make expenditures under or control payment of subcontractors 
        for a covered contract.''.</DELETED>

<DELETED>SEC. 305. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
              DEMONSTRATION PROGRAM.</DELETED>

<DELETED>    (a) In General.--The Business Opportunity Development 
Reform Act of 1988 (Public Law 100-656) is amended by striking title 
VII (15 U.S.C. 644 note).</DELETED>
<DELETED>    (b) Effective Date and Applicability.--The amendment made 
by this section--</DELETED>
        <DELETED>    (1) shall take effect on the date of enactment of 
        this Act; and</DELETED>
        <DELETED>    (2) apply to the first full fiscal year after the 
        date of enactment of this Act.</DELETED>

 <DELETED>TITLE IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY</DELETED>

<DELETED>SEC. 401. POLICY AND PRESUMPTIONS.</DELETED>

<DELETED>    Section 3 of the Small Business Act (15 U.S.C. 632) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(t) Presumption.--</DELETED>
        <DELETED>    ``(1) In general.--In every contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant which is set aside, reserved, or otherwise 
        classified as intended for award to small business concerns, 
        there shall be a presumption of loss to the United States based 
        on the total amount expended on the contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant whenever it is established that a business 
        concern other than a small business concern willfully sought 
        and received the award by misrepresentation.</DELETED>
        <DELETED>    ``(2) Deemed certifications.--The following 
        actions shall be deemed affirmative, willful, and intentional 
        certifications of small business size and status:</DELETED>
                <DELETED>    ``(A) Submission of a bid or proposal for 
                a Federal grant, contract, subcontract, cooperative 
                agreement, or cooperative research and development 
                agreement reserved, set aside, or otherwise classified 
                as intended for award to small business 
                concerns.</DELETED>
                <DELETED>    ``(B) Submission of a bid or proposal for 
                a Federal grant, contract, subcontract, cooperative 
                agreement, or cooperative research and development 
                agreement which in any way encourages a Federal agency 
                to classify the bid or proposal, if awarded, as an 
                award to a small business concern.</DELETED>
                <DELETED>    ``(C) Registration on any Federal 
                electronic database for the purpose of being considered 
                for award of a Federal grant, contract, subcontract, 
                cooperative agreement, or cooperative research 
                agreement, as a small business concern.</DELETED>
        <DELETED>    ``(3) Certification by signature of responsible 
        official.--</DELETED>
                <DELETED>    ``(A) In general.--Each solicitation, bid, 
                or application for a Federal contract, subcontract, or 
                grant shall contain a certification concerning the 
                small business size and status of a business concern 
                seeking the Federal contract, subcontract, or 
                grant.</DELETED>
                <DELETED>    ``(B) Content of certifications.--A 
                certification that a business concern qualifies as a 
                small business concern of the exact size and status 
                claimed by the business concern for purposes of bidding 
                on a Federal contract or subcontract, or applying for a 
                Federal grant, shall contain the signature of a 
                director, officer, or counsel on the same page on which 
                the certification is contained.</DELETED>
        <DELETED>    ``(4) Regulations.--The Administrator shall 
        promulgate regulations to provide adequate protections to 
        individuals and business concerns from liability under this 
        subsection in cases of unintentional errors, technical 
        malfunctions, and other similar situations.''.</DELETED>

<DELETED>SEC. 402. ANNUAL CERTIFICATION.</DELETED>

<DELETED>    Section 3 of the Small Business Act (15 U.S.C. 632), as 
amended by this Act, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(u) Annual Certification.--</DELETED>
        <DELETED>    ``(1) In general.--Each business certified as a 
        small business concern under this Act shall annually certify 
        its small business size and, if appropriate, its small business 
        status, by means of a confirming entry on the ORCA database of 
        the Administration, or any successor thereto.</DELETED>
        <DELETED>    ``(2) Regulations.--Not later than 1 year after 
        the date of enactment of this subsection, the Administrator, in 
        consultation with the Inspector General and the Chief Counsel 
        for Advocacy of the Administration, shall promulgate 
        regulations to ensure that--</DELETED>
                <DELETED>    ``(A) no business concern continues to be 
                certified as a small business concern on the ORCA 
                database of the Administration, or any successor 
                thereto, without fulfilling the requirements for annual 
                certification under this subsection; and</DELETED>
                <DELETED>    ``(B) the requirements of this subsection 
                are implemented in a manner presenting the least 
                possible regulatory burden on small business 
                concerns.</DELETED>
        <DELETED>    ``(3) Determination of size status.--The small 
        business size or status of a business concern shall be 
        determined at the time of the award of a Federal--</DELETED>
                <DELETED>    ``(A) contract, except that, in the case 
                of interagency multiple award contracts (as defined in 
                section 44), small business size or status shall be 
                determined annually, except for purposes of the award 
                of each task or delivery order set aside or reserved 
                for small business concerns;</DELETED>
                <DELETED>    ``(B) subcontract;</DELETED>
                <DELETED>    ``(C) grant;</DELETED>
                <DELETED>    ``(D) cooperative agreement; or</DELETED>
                <DELETED>    ``(E) cooperative research and development 
                agreement.''.</DELETED>

<DELETED>SEC. 403. TRAINING FOR CONTRACTING AND ENFORCEMENT 
              PERSONNEL.</DELETED>

<DELETED>    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Federal Acquisition Institute, in 
consultation with the Administrator for Federal Procurement Policy, 
shall develop courses concerning proper classification of business 
concerns and small business size and status for purposes of Federal 
contracts, subcontracts, grants, cooperative agreements, and 
cooperative research and development agreements.</DELETED>
<DELETED>    (b) Policy on Prosecutions of Small Business Size and 
Status Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as 
amended by this Act, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(v) Policy on Prosecutions of Small Business Size and 
Status Fraud.--Not later than 1 year after the date of enactment of 
this subsection, the head of each relevant Federal agency and the 
Inspector General of the Administration shall issue a Government-wide 
policy on prosecution of small business size and status 
fraud.''.</DELETED>

<DELETED>SEC. 404. UPDATED SIZE STANDARDS.</DELETED>

<DELETED>    Not later than 1 year after the date of enactment of this 
Act, and every 5 years thereafter, the Administrator shall--</DELETED>
        <DELETED>    (1) conduct a detailed review of the size 
        standards for small business concerns established under section 
        3(a)(2) of the Small Business Act (15 U.S.C. 
        632(a)(2));</DELETED>
        <DELETED>    (2) make appropriate adjustments to size standards 
        under that section to reflect market conditions; and</DELETED>
        <DELETED>    (3) make publically available information 
        regarding--</DELETED>
                <DELETED>    (A) the factors evaluated as part of the 
                review conducted under paragraph (1); and</DELETED>
                <DELETED>    (B) the criteria used for any revised size 
                standards promulgated under paragraph (2).</DELETED>

<DELETED>SEC. 405. STUDY AND REPORT ON THE MENTOR-PROTEGE 
              PROGRAM.</DELETED>

<DELETED>    (a) In General.--The Comptroller General of the United 
States shall conduct a study of the mentor-protege program of the 
Administration for small business concerns participating in programs 
under section 8(a) of the Small Business Act (15 U.S.C. 637(a)), and 
other relationships and strategic alliances pairing a larger business 
and a small business concern partner to gain access to Federal 
Government contracts, to determine whether the programs and 
relationships are effectively supporting the goal of increasing the 
participation of small business concerns in Government 
contracting.</DELETED>
<DELETED>    (b) Matters To Be Studied.--The study conducted under this 
section shall include--</DELETED>
        <DELETED>    (1) a review of a broad cross-section of 
        industries; and</DELETED>
        <DELETED>    (2) an evaluation of--</DELETED>
                <DELETED>    (A) how each Federal agency carrying out a 
                program described in subsection (a) administers and 
                monitors the program;</DELETED>
                <DELETED>    (B) whether there are systems in place to 
                ensure that the mentor-protege relationship, or similar 
                affiliation, promotes real gain to the protege, and is 
                not just a mechanism to enable participants that would 
                not otherwise qualify under section 8(a) of the Small 
                Business Act (15 U.S.C. 637(a)) to receive contracts 
                under that section; and</DELETED>
                <DELETED>    (C) the degree to which protege businesses 
                become able to compete for Federal contracts without 
                the assistance of a mentor.</DELETED>
<DELETED>    (c) Report to Congress.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General shall submit to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a 
report on the results of the study conducted under this 
section.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Contracting 
Revitalization Act of 2010''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                       TITLE I--CONTRACT BUNDLING

Sec. 101. Leadership and oversight.
Sec. 102. Consolidation of contract requirements.
Sec. 103. Small business teams pilot program.

                   TITLE II--SUBCONTRACTING INTEGRITY

Sec. 201. GAO recommendations on subcontracting misrepresentations.
Sec. 202. Small business subcontracting improvements.

                     TITLE III--ACQUISITION PROCESS

Sec. 301. Reservation of prime contract awards for small businesses.
Sec. 302. Micro-purchase guidelines.
Sec. 303. Agency accountability.
Sec. 304. Payment of subcontractors.
Sec. 305. Repeal of Small Business Competitiveness Demonstration 
                            Program.

           TITLE IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

Sec. 401. Policy and presumptions.
Sec. 402. Annual certification.
Sec. 403. Training for contracting and enforcement personnel.
Sec. 404. Updated size standards.
Sec. 405. Study and report on the mentor-protege program.
Sec. 406. Policy on support of competitive enterprise system.
Sec. 407. Contracting goals reports.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively; and
            (2) the term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).

                       TITLE I--CONTRACT BUNDLING

SEC. 101. LEADERSHIP AND OVERSIGHT.

    (a) In General.--Section 15 of the Small Business Act (15 U.S.C. 
644) is amended by adding at the end the following:
    ``(q) Bundling Accountability Measures.--
            ``(1) Teaming requirements.--Each Federal agency shall 
        include in each solicitation for any contract award above the 
        substantial bundling threshold of the Federal agency a 
        provision soliciting bids by teams and joint ventures of small 
        business concerns.
            ``(2) Agency policies on reduction of contract bundling.--
        The head of each Federal agency shall--
                    ``(A) not later than 180 days after the date of 
                enactment of this subsection, publish on the website of 
                the Federal agency the policy of the Federal agency 
                regarding contracting bundling and consolidation, 
                including regarding the solicitation of teaming and 
                joint ventures under paragraph (1); and
                    ``(B) not later than 30 days after the date on 
                which the head of the Federal agency submits data 
                certifications to the Administrator for Federal 
                Procurement Policy, publish on the website of the 
                Federal agency a list and rationale for any bundled 
                contract for which the Federal agency solicited bids or 
                that was awarded by the Federal agency.
            ``(3) Reporting.--Not later than 90 days after the date of 
        enactment of this subsection, and every 3 years thereafter, the 
        Area Directors for Government Contracting of the Administration 
        shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report regarding 
        procurement center representatives and commercial market 
        representatives, which shall--
                    ``(A) identify each area for which the 
                Administration has assigned a procurement center 
                representative or a commercial market representative;
                    ``(B) explain why the Administration selected the 
                areas identified under subparagraph (A); and
                    ``(C) describe the activities performed by 
                procurement center representatives and commercial 
                market representatives.''.
    (b) Technical Correction.--Section 15(g) of the Small Business Act 
(15 U.S.C. 644(g)) is amended by striking ``Administrator of the Office 
of Federal Procurement Policy'' each place it appears and inserting 
``Administrator for Federal Procurement Policy''.
    (c) Report.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress a report regarding the 
        procurement center representative program of the 
        Administration.
            (2) Contents.--The report submitted under paragraph (1) 
        shall--
                    (A) address ways to improve the effectiveness of 
                the procurement center representative program in 
                helping small business concerns obtain Federal 
                contracts;
                    (B) evaluate the effectiveness of procurement 
                center representatives and commercial marketing 
                representatives; and
                    (C) include recommendations, if any, on how to 
                improve the procurement center representative program.
    (d) Electronic Procurement Center Representative.--Not later than 
180 days after the date of enactment of this Act, the Administrator 
shall implement an electronic procurement center representative 
program.

SEC. 102. CONSOLIDATION OF CONTRACT REQUIREMENTS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 44 as section 45; and
            (2) by inserting after section 43 the following:

``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

    ``(a) Definitions.--In this section--
            ``(1) the term `Chief Acquisition Officer' means the 
        employee of a Federal agency designated as the Chief 
        Acquisition Officer for the Federal agency under section 16(a) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        414(a));
            ``(2) the term `consolidation of contract requirements', 
        with respect to contract requirements of a Federal agency, 
        means a use of a solicitation to obtain offers for a single 
        contract or a multiple award contract to satisfy 2 or more 
        requirements of the Federal agency for goods or services that 
        have been, are being, or will be provided to, or will be 
        performed for or would typically be performed for, the Federal 
        agency under 2 or more separate contracts lower in cost than 
        the total cost of the contract for which the offers are 
        solicited;
            ``(3) the term `multiple award contract' means--
                    ``(A) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 303H through 303K of the Federal 
                Property and Administrative Services Act of 1949 (41 
                U.S.C. 253h through 253k); and
                    ``(B) any other indefinite delivery, indefinite 
                quantity contract that is entered into by the head of a 
                Federal agency with 2 or more sources pursuant to the 
                same solicitation; and
            ``(4) the term `senior procurement executive' means an 
        official designated under section 16(c) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 414(c)) as the senior 
        procurement executive for a Federal agency.
    ``(b) Policy.--The head of each Federal agency shall ensure that 
the decisions made by the Federal agency regarding consolidation of 
contract requirements of the Federal agency are made with a view to 
providing small business concerns with appropriate opportunities to 
participate as prime contractors and subcontractors in the procurements 
of the Federal agency.
    ``(c) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--
            ``(1) In general.--The head of a Federal agency may not 
        carry out an acquisition strategy that includes a consolidation 
        of contract requirements of the Federal agency with a total 
        value of more than $2,000,000, unless the senior procurement 
        executive or Chief Acquisition Officer for the Federal agency, 
        before carrying out the acquisition strategy--
                    ``(A) conducts market research;
                    ``(B) identifies any alternative contracting 
                approaches that would involve a lesser degree of 
                consolidation of contract requirements;
                    ``(C) makes a written determination that the 
                consolidation of contract requirements is necessary and 
                justified;
                    ``(D) identifies any negative impact by the 
                acquisition strategy on contracting with small business 
                concerns; and
                    ``(E) certifies that the acquisition strategy 
                fulfills the small business contracting goals of the 
                Federal agency.
            ``(2) Determination that consolidation is necessary and 
        justified.--
                    ``(A) In general.--A senior procurement executive 
                or Chief Acquisition Officer may determine that an 
                acquisition strategy involving a consolidation of 
                contract requirements is necessary and justified for 
                the purposes of paragraph (1)(C) if the benefits of the 
                acquisition strategy substantially exceed the benefits 
                of each of the possible alternative contracting 
                approaches identified under paragraph (1)(B).
                    ``(B) Savings in administrative or personnel 
                costs.--For purposes of subparagraph (A), savings in 
                administrative or personnel costs alone do not 
                constitute a sufficient justification for a 
                consolidation of contract requirements in a procurement 
                unless the expected total amount of the cost savings, 
                as determined by the senior procurement executive or 
                Chief Acquisition Officer, is substantial in relation 
                to the total cost of the procurement.
            ``(3) Benefits to be considered.--The benefits considered 
        for the purposes of paragraphs (1) and (2) may include cost 
        and, regardless of whether quantifiable in dollar amounts--
                    ``(A) quality;
                    ``(B) acquisition cycle;
                    ``(C) terms and conditions; and
                    ``(D) any other benefit.''.

SEC. 103. SMALL BUSINESS TEAMS PILOT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``Center'' means the Center for Small Business 
        Teaming established under subsection (b); and
            (2) the term ``eligible organization'' means a well-
        established national organization for small business concerns 
        with the capacity to provide assistance to small business 
        concerns (which may be provided with the assistance of the 
        Center) relating to--
                    (A) customer relations and outreach;
                    (B) submitting bids and proposals;
                    (C) team relations and outreach; and
                    (D) performance measurement and quality assurance.
    (b) Establishment.--The Administrator shall establish a Center for 
Small Business Teaming within the Administration to carry out a pilot 
program for teaming and joint ventures involving small business 
concerns.
    (c) Grants.--The Center may make grants to eligible organizations 
to assemble teams of small business concerns to compete for larger 
procurement contracts.
    (d) Contracting Opportunities.--
            (1) In general.--The Center shall work with eligible 
        organizations receiving a grant under this section to identify 
        appropriate contracting opportunities for teams or joint 
        ventures of small business concerns.
            (2) Restricted competition.--A contracting officer of a 
        Federal agency may restrict competition for any contract for 
        the procurement of goods or services by the Federal agency to 
        teams or joint ventures of small business concerns if 
        determined appropriate by the contracting officer.
    (e) Termination.--The authorities under this section shall 
terminate 5 years after the date of enactment of this Act.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated for grants by the Center under subsection (c) $5,000,000 
for each of fiscal years 2010 through 2015.

                   TITLE II--SUBCONTRACTING INTEGRITY

SEC. 201. GAO RECOMMENDATIONS ON SUBCONTRACTING MISREPRESENTATIONS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(o) Prevention of Misrepresentations in Subcontracting; 
Implementation of Recommendations of Comptroller General.--
            ``(1) Statement of policy.--It is the policy of Congress 
        that the recommendations of the Comptroller General of the 
        United States in Report No. 05-459, concerning oversight 
        improvements necessary to ensure maximum practicable 
        participation by small business concerns in subcontracting, 
        shall be implemented Government-wide, to the maximum extent 
        possible.
            ``(2) Contractor compliance.--Compliance of Federal prime 
        contractors with subcontracting plans relating to small 
        business concerns shall be evaluated as a percentage of 
        obligated prime contract dollars and as a percentage of 
        subcontracts awarded.
            ``(3) Issuance of agency policies.--Not later than 180 days 
        after the date of enactment of this subsection, the head of 
        each Federal agency shall issue a policy on subcontracting 
        compliance relating to small business concerns, including 
        assignment of compliance responsibilities between contracting 
        offices, small business offices, and program offices and 
        periodic oversight and review activities.''.

SEC. 202. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

    Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is 
amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end, the following:
                    ``(G) a certification that the offeror or bidder 
                will acquire articles, equipment, supplies, services, 
                or materials, or obtain the performance of construction 
                work from the small business concerns used in preparing 
                and submitting to the contracting agency the bid or 
                proposal, in the same amount and quality used in 
                preparing and submitting the bid or proposal, unless 
                the small business concerns are no longer in business 
                or can no longer meet the quality, quantity, or 
                delivery date.''.

                     TITLE III--ACQUISITION PROCESS

SEC. 301. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL BUSINESSES.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(r) Government-wide Acquisition Contracts.--Not later than 180 
days after the date of enactment of this subsection, the Administrator 
for Federal Procurement Policy, in consultation with the Administrator, 
shall, by regulation, establish criteria for Federal agencies for--
            ``(1) setting aside part or parts of a multiple award 
        contract (as defined in section 44), Federal supply schedule 
        contracts, and other Government-wide acquisition contracts for 
        small business concerns, including the subcategories of small 
        business concerns identified in subsection (g)(2);
            ``(2) setting aside orders placed against multiple award 
        contracts, Federal supply schedule contracts, and other 
        Government-wide acquisition contracts for small business 
        concerns, including the subcategories of small business 
        concerns identified in subsection (g)(2); and
            ``(3) reserving 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small business 
        concerns identified in subsection (g)(2).
    ``(s) Protecting Individual Small Business Contract 
Opportunities.--For each fiscal year, the head of a Federal agency 
shall award through competition restricted to small business concerns 
contracts in a total number and amount equal to the total number and 
amount of contracts not awarded through competition restricted to small 
business concerns because--
            ``(1) the small business concern that is the prime 
        contractor for the contract merged with or was acquired by a 
        business concern that is not a small business concern; or
            ``(2) the Federal agency awarded the contract through full 
        and open competition for the purposes of a follow-on 
        contract.''.

SEC. 302. MICRO-PURCHASE GUIDELINES.

    Not later than 1 year after the date of enactment of this Act, the 
Director of the Office of Management and Budget shall issue guidelines 
regarding the analysis of purchase card expenditures to identify 
opportunities for achieving and accurately measuring fair participation 
of small business concerns in purchases in an amount not in excess of 
the micro-purchase threshold, as defined in section 32 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 428) (in this section 
referred to as ``micro-purchases''), consistent with the national 
policy on small business participation in Federal procurements set 
forth in sections 2(a) and 15(g) of the Small Business Act (15 U.S.C. 
631(a) and 644(g)), and dissemination of best practices for 
participation of small business concerns in micro-purchases.

SEC. 303. AGENCY ACCOUNTABILITY.

    Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is 
amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking ``Goals established'' and inserting the 
        following:
    ``(B) Goals established'';
            (3) by striking ``Whenever'' and inserting the following:
    ``(C) Whenever'';
            (4) by striking ``For the purpose of'' and inserting the 
        following:
    ``(D) For the purpose of'';
            (5) by striking ``The head of each Federal agency, in 
        attempting to attain such participation'' and inserting the 
        following:
    ``(E) The head of each Federal agency, in attempting to attain the 
participation described in subparagraph (D)''.
            (6) in subparagraph (E), as so designated--
                    (A) by striking ``(A) contracts'' and inserting 
                ``(i) contracts''; and
                    (B) by striking ``(B) contracts'' and inserting 
                ``(ii) contracts''; and
            (7) by adding at the end the following:
    ``(F)(i) Each procurement employee or program manager described in 
clause (ii)--
            ``(I) shall communicate to the subordinates of the 
        procurement employee or program manager the importance of 
        achieving small business goals; and
            ``(II) shall have as a significant factor in the annual 
        performance evaluation of the procurement employee or program 
        manager, where appropriate, the success of that procurement 
        employee or program manager in small business utilization, in 
        accordance with the goals established under this subsection.
    ``(ii) A procurement employee or program manager described in this 
clause is a senior procurement executive, senior program manager, or 
Director of Small and Disadvantaged Business Utilization of a Federal 
agency having contracting authority.''.

SEC. 304. PAYMENT OF SUBCONTRACTORS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended by adding at the end the following:
    ``(11) Payment of Subcontractors.--
            ``(A) Definition.--In this paragraph, the term `covered 
        contract' means a contract relating to which a prime contractor 
        is required to develop a subcontracting plan under paragraph 
        (4) or (5).
            ``(B) Notice.--
                    ``(i) In general.--A prime contractor for a covered 
                contract shall pay a small business as quickly as 
                possible after the date on which proper documentation 
                is received according to the contract terms and before 
                the payment due date. A prime contractor for a covered 
                contract shall notify in writing the contracting 
                officer for the covered contract if the prime 
                contractor pays a reduced price to a subcontractor for 
                goods and services upon completion of the 
                responsibilities of the subcontractor or the payment to 
                a subcontractor is more than 90 days past due for goods 
                or services provided for the covered contract for 
                which--
                            ``(I) the Federal agency has paid the prime 
                        contractor; or
                            ``(II) the prime contractor has submitted a 
                        request for payment to the Federal agency.
                    ``(ii) Contents.--A prime contractor shall include 
                the reason for the reduction in a payment to or failure 
                to pay a subcontractor in any notice made under clause 
                (i).
                    ``(iii) Public availability.--The head of each 
                Federal agency shall, after redacting information 
                identifying any subcontractor, make publicly available 
                any notice made under clause (i).
            ``(C) Performance.--A contracting officer for a covered 
        contract shall consider the failure by a prime contractor to 
        make a full or timely payment to a subcontractor in evaluating 
        the performance of the prime contractor.
            ``(D) Control of funds.--A contracting officer for a 
        covered contract may restrict the authority of a prime 
        contractor that has a history of untimely payment of 
        subcontractors (as determined by the contracting officer) to 
        make expenditures under or control payment of subcontractors 
        for a covered contract.''.

SEC. 305. REPEAL OF SMALL BUSINESS COMPETITIVENESS DEMONSTRATION 
              PROGRAM.

    (a) In General.--The Business Opportunity Development Reform Act of 
1988 (Public Law 100-656) is amended by striking title VII (15 U.S.C. 
644 note).
    (b) Effective Date and Applicability.--The amendment made by this 
section--
            (1) shall take effect on the date of enactment of this Act; 
        and
            (2) apply to the first full fiscal year after the date of 
        enactment of this Act.

           TITLE IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

SEC. 401. POLICY AND PRESUMPTIONS.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended by 
adding at the end the following:
    ``(t) Presumption.--
            ``(1) In general.--In every contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant which is set aside, reserved, or otherwise 
        classified as intended for award to small business concerns, 
        there shall be a presumption of loss to the United States based 
        on the total amount expended on the contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant whenever it is established that a business 
        concern other than a small business concern willfully sought 
        and received the award by misrepresentation.
            ``(2) Deemed certifications.--The following actions shall 
        be deemed affirmative, willful, and intentional certifications 
        of small business size and status:
                    ``(A) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement 
                reserved, set aside, or otherwise classified as 
                intended for award to small business concerns.
                    ``(B) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement which in 
                any way encourages a Federal agency to classify the bid 
                or proposal, if awarded, as an award to a small 
                business concern.
                    ``(C) Registration on any Federal electronic 
                database for the purpose of being considered for award 
                of a Federal grant, contract, subcontract, cooperative 
                agreement, or cooperative research agreement, as a 
                small business concern.
            ``(3) Certification by signature of responsible official.--
                    ``(A) In general.--Each solicitation, bid, or 
                application for a Federal contract, subcontract, or 
                grant shall contain a certification concerning the 
                small business size and status of a business concern 
                seeking the Federal contract, subcontract, or grant.
                    ``(B) Content of certifications.--A certification 
                that a business concern qualifies as a small business 
                concern of the exact size and status claimed by the 
                business concern for purposes of bidding on a Federal 
                contract or subcontract, or applying for a Federal 
                grant, shall contain the signature of a director, 
                officer, or counsel on the same page on which the 
                certification is contained.
            ``(4) Regulations.--The Administrator shall promulgate 
        regulations to provide adequate protections to individuals and 
        business concerns from liability under this subsection in cases 
        of unintentional errors, technical malfunctions, and other 
        similar situations.''.

SEC. 402. ANNUAL CERTIFICATION.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
this Act, is amended by adding at the end the following:
    ``(u) Annual Certification.--
            ``(1) In general.--Each business certified as a small 
        business concern under this Act shall annually certify its 
        small business size and, if appropriate, its small business 
        status, by means of a confirming entry on the ORCA database of 
        the Administration, or any successor thereto.
            ``(2) Regulations.--Not later than 1 year after the date of 
        enactment of this subsection, the Administrator, in 
        consultation with the Inspector General and the Chief Counsel 
        for Advocacy of the Administration, shall promulgate 
        regulations to ensure that--
                    ``(A) no business concern continues to be certified 
                as a small business concern on the ORCA database of the 
                Administration, or any successor thereto, without 
                fulfilling the requirements for annual certification 
                under this subsection; and
                    ``(B) the requirements of this subsection are 
                implemented in a manner presenting the least possible 
                regulatory burden on small business concerns.
            ``(3) Determination of size status.--The small business 
        size or status of a business concern shall be determined at the 
        time of the award of a Federal--
                    ``(A) contract, except that, in the case of 
                interagency multiple award contracts (as defined in 
                section 44), small business size or status shall be 
                determined annually, except for purposes of the award 
                of each task or delivery order set aside or reserved 
                for small business concerns;
                    ``(B) subcontract;
                    ``(C) grant;
                    ``(D) cooperative agreement; or
                    ``(E) cooperative research and development 
                agreement.''.

SEC. 403. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Federal Acquisition Institute, in consultation with 
the Administrator for Federal Procurement Policy, shall develop courses 
for acquisition personnel concerning proper classification of business 
concerns and small business size and status for purposes of Federal 
contracts, subcontracts, grants, cooperative agreements, and 
cooperative research and development agreements.
    (b) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by this Act, is amended by adding at the end the following:
    ``(v) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Not later than 1 year after the date of enactment of this 
subsection, the head of each relevant Federal agency and the Inspector 
General of the Administration shall issue a Government-wide policy on 
prosecution of small business size and status fraud.''.

SEC. 404. UPDATED SIZE STANDARDS.

    (a) In General.--The Administrator shall--
            (1) once every 5 years, conduct a detailed review of the 
        size standards for small business concerns established under 
        section 3(a)(2) of the Small Business Act (15 U.S.C. 
        632(a)(2));
            (2) after each review under paragraph (1) make appropriate 
        adjustments to size standards under that section to reflect 
        market conditions; and
            (3) make publically available information regarding--
                    (A) the factors evaluated as part of each review 
                conducted under paragraph (1); and
                    (B) the criteria used for any revised size 
                standards promulgated under paragraph (2).
    (b) Rules.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall promulgate rules for conducting the 
reviews required under subsection (a).

SEC. 405. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the mentor-protege program of the Administration for 
small business concerns participating in programs under section 8(a) of 
the Small Business Act (15 U.S.C. 637(a)), and other relationships and 
strategic alliances pairing a larger business and a small business 
concern partner to gain access to Federal Government contracts, to 
determine whether the programs and relationships are effectively 
supporting the goal of increasing the participation of small business 
concerns in Government contracting.
    (b) Matters To Be Studied.--The study conducted under this section 
shall include--
            (1) a review of a broad cross-section of industries; and
            (2) an evaluation of--
                    (A) how each Federal agency carrying out a program 
                described in subsection (a) administers and monitors 
                the program;
                    (B) whether there are systems in place to ensure 
                that the mentor-protege relationship, or similar 
                affiliation, promotes real gain to the protege, and is 
                not just a mechanism to enable participants that would 
                not otherwise qualify under section 8(a) of the Small 
                Business Act (15 U.S.C. 637(a)) to receive contracts 
                under that section; and
                    (C) the degree to which protege businesses become 
                able to compete for Federal contracts without the 
                assistance of a mentor.
    (c) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
the results of the study conducted under this section.

SEC. 406. POLICY ON SUPPORT OF COMPETITIVE ENTERPRISE SYSTEM.

    (a) Finding.--Congress finds that the competitive enterprise 
system, including small business concerns, is--
            (1) characterized by individual freedom and initiative; and
            (2) the primary source of economic strength of the United 
        States.
    (b) Policy.--Section 2 of the Small Business Act (15 U.S.C. 631) is 
amended by adding at the end the following:
    ``(k) Policy on Support of Competitive Enterprise System.--It is 
the declared policy of Congress that the Federal Government--
            ``(1) should support the competitive enterprise system of 
        the United States, including small business concerns;
            ``(2) should not compete with the citizens of the United 
        States;
            ``(3) should rely on commercial sources to supply the 
        products and services required by the Federal Government; and
            ``(4) should avoid starting or carrying out any activity 
        that provides a product or service that can be procured more 
        effectively and efficiently from a nongovernmental source.''.

SEC. 407. CONTRACTING GOALS REPORTS.

    Section 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) is 
amended by striking ``submit them'' and all that follows through ``the 
following:'' and inserting ``submit to the President and the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives the compilation and 
analysis, which shall include the following:''.

SEC. 408. SURETY BONDS.

    Section 508(f) of division A of the American Recovery and 
Reinvestment Act of 2009 (15 U.S.C. 694a note) is repealed.
                                                       Calendar No. 635

111th CONGRESS

  2d Session

                                S. 2989

                          [Report No. 111-343]

_______________________________________________________________________

                                 A BILL

       To improve the Small Business Act, and for other purposes.

_______________________________________________________________________

                           September 29, 2010

                       Reported with an amendment
```