II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Con5 tracting Revitalization Act of 2010’’. 

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1 SEC. 2. TABLE OF CONTENTS. 

2 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. 

3 SEC. 3. DEFINITIONS. 

4 In this Act— 

5 (1) the terms ‘‘Administration’’ and ‘‘Adminis6 trator’’ mean the Small Business Administration 

7 and the Administrator thereof, respectively; and 

8 (2) the term ‘‘small business concern’’ has the 

9 meaning given that term under section 3 of the 

10 Small Business Act (15 U.S.C. 632). 

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1 TITLE I—CONTRACT BUNDLING 

2 SEC. 101. LEADERSHIP AND OVERSIGHT. 

3 (a) IN GENERAL.—Section 15 of the Small Business 

4 Act (15 U.S.C. 644) is amended by adding at the end the 

5 following: 

6 ‘‘(q) BUNDLING ACCOUNTABILITY MEASURES.— 

7 ‘‘(1) TEAMING REQUIREMENTS.—Each Federal 

8 agency shall include in each solicitation for any con9 tract award above the substantial bundling threshold 

10 of the Federal agency a provision soliciting bids by 

11 teams and joint ventures of small business concerns. 

12 ‘‘(2) AGENCY POLICIES ON REDUCTION OF CON13 TRACT BUNDLING.—The head of each Federal agen14 cy shall— 

15 ‘‘(A) not later than 180 days after the date 

16 of enactment of this subsection, publish on the 

17 website of the Federal agency the policy of the 

18 Federal agency regarding contracting bundling 

19 and consolidation, including regarding the solic20 itation of teaming and joint ventures under 

21 paragraph (1); and 

22 ‘‘(B) not later than 30 days after the date 

23 on which the head of the Federal agency sub24 mits data certifications to the Administrator for 

25 Federal Procurement Policy, publish on the 

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1 website of the Federal agency a list and ration2 ale for any bundled contract for which the Fed3 eral agency solicited bids or that was awarded 

4 by the Federal agency. 

5 ‘‘(3) REPORTING.—Not later than 90 days after 

6 the date of enactment of this subsection, and every 

7 3 years thereafter, the Director of Small and Dis8 advantaged Business Utilization for each Federal 

9 agency shall submit to the Committee on Small 

10 Business and Entrepreneurship of the Senate and 

11 the Committee on Small Business of the House of 

12 Representatives a report regarding procurement cen13 ter representatives and commercial market rep14 resentatives, which shall— 

15 ‘‘(A) identify each area for which the Fed16 eral agency has assigned a procurement center 

17 representative or a commercial market rep18 resentative; 

19 ‘‘(B) explain why the Federal agency se20 lected the areas identified under subparagraph 

21 (A); and 

22 ‘‘(C) describe the activities performed by 

23 procurement center representatives and com24 mercial market representatives.’’. 

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1 (b) TECHNICAL CORRECTION.—Section 15(g) of the 

2 Small Business Act (15 U.S.C. 644(g)) is amended by 

3 striking ‘‘Administrator of the Office of Federal Procure4 ment Policy’’ each place it appears and inserting ‘‘Admin5 istrator for Federal Procurement Policy’’. 

6 (c) REPORT.— 

7 (1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this Act, the Comp9 troller General of the United States shall submit to 

10 Congress a report regarding the procurement center 

11 representative program of the Administration. 

12 (2) CONTENTS.—The report submitted under 

13 paragraph (1) shall— 

14 (A) address ways to improve the effective15 ness of the procurement center representative 

16 program in helping small business concerns ob17 tain Federal contracts; 

18 (B) evaluate the effectiveness of procure19 ment center representatives and commercial 

20 marketing representatives; and 

21 (C) include recommendations, if any, on 

22 how to improve the procurement center rep23 resentative program. 

24 (d) ELECTRONIC PROCUREMENT CENTER REP25 RESENTATIVE.—Not later than 180 days after the date 

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1 of enactment of this Act, the Administrator shall imple2 ment an electronic procurement center representative pro3 gram. 

4 SEC. 102. CONSOLIDATION OF CONTRACT REQUIREMENTS. 

5 The Small Business Act (15 U.S.C. 631 et seq.) is 

6 amended— 

7 (1) by redesignating section 44 as section 45; 

8 and 

9 (2) by inserting after section 43 the following: 

10 ‘‘SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS. 

11 ‘‘(a) DEFINITIONS.—In this section— 

12 ‘‘(1) the term ‘Chief Acquisition Officer’ means 

13 the employee of a Federal agency designated as the 

14 Chief Acquisition Officer for the Federal agency 

15 under section 16(a) of the Office of Federal Pro16 curement Policy Act (41 U.S.C. 414(a)); 

17 ‘‘(2) the term ‘consolidation of contract require18 ments’, with respect to contract requirements of a 

19 Federal agency, means a use of a solicitation to ob20 tain offers for a single contract or a multiple award 

21 contract to satisfy 2 or more requirements of the 

22 Federal agency for goods or services that have been, 

23 are being, or will be provided to, or will be per24 formed for or would typically be performed for, the 

25 Federal agency under 2 or more separate contracts 

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1 lower in cost than the total cost of the contract for 

2 which the offers are solicited; 

3 ‘‘(3) the term ‘Federal agency’ does not include 

4 the Department of Defense or any agency of the De5 partment of Defense; 

6 ‘‘(4) the term ‘multiple award contract’ 

7 means— 

8 ‘‘(A) a multiple award task order contract 

9 or delivery order contract that is entered into 

10 under the authority of sections 303H through 

11 303K of the Federal Property and Administra12 tive Services Act of 1949 (41 U.S.C. 253h 

13 through 253k); and 

14 ‘‘(B) any other indefinite delivery, indefi15 nite quantity contract that is entered into by 

16 the head of a Federal agency with 2 or more 

17 sources pursuant to the same solicitation; and 

18 ‘‘(5) the term ‘senior procurement executive’ 

19 means an official designated under section 16(c) of 

20 the Office of Federal Procurement Policy Act (41 

21 U.S.C. 414(c)) as the senior procurement executive 

22 for a Federal agency. 

23 ‘‘(b) POLICY.—The head of each Federal agency shall 

24 ensure that the decisions made by the Federal agency re25 garding consolidation of contract requirements of the Fedmstockstill on DSKH9S0YB1PROD with BILLS

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1 eral agency are made with a view to providing small busi2 ness concerns with appropriate opportunities to partici3 pate as prime contractors and subcontractors in the pro4 curements of the Federal agency. 

5 ‘‘(c) LIMITATION ON USE OF ACQUISITION STRATE6 GIES INVOLVING CONSOLIDATION.— 

7 ‘‘(1) IN GENERAL.—The head of a Federal 

8 agency may not carry out an acquisition strategy 

9 that includes a consolidation of contract require10 ments of the Federal agency with a total value of 

11 more than $2,000,000, unless the senior procure12 ment executive or Chief Acquisition Officer for the 

13 Federal agency, before carrying out the acquisition 

14 strategy— 

15 ‘‘(A) conducts market research; 

16 ‘‘(B) identifies any alternative contracting 

17 approaches that would involve a lesser degree of 

18 consolidation of contract requirements; and 

19 ‘‘(C) determines that the consolidation of 

20 contract requirements is necessary and justi21 fied. 

22 ‘‘(2) DETERMINATION THAT CONSOLIDATION IS

23 NECESSARY AND JUSTIFIED.— 

24 ‘‘(A) IN GENERAL.—A senior procurement 

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1 termine that an acquisition strategy involving a 

2 consolidation of contract requirements is nec3 essary and justified for the purposes of para4 graph (1)(C) if the benefits of the acquisition 

5 strategy substantially exceed the benefits of 

6 each of the possible alternative contracting ap7 proaches identified under paragraph (1)(B). 

8 ‘‘(B) SAVINGS IN ADMINISTRATIVE OR

9 PERSONNEL COSTS.—For purposes of subpara10 graph (A), savings in administrative or per11 sonnel costs alone do not constitute a sufficient 

12 justification for a consolidation of contract re13 quirements in a procurement unless the ex14 pected total amount of the cost savings, as de15 termined by the senior procurement executive 

16 or Chief Acquisition Officer, is substantial in 

17 relation to the total cost of the procurement. 

18 ‘‘(3) BENEFITS TO BE CONSIDERED.—The ben19 efits considered for the purposes of paragraphs (1) 

20 and (2) may include cost and, regardless of whether 

21 quantifiable in dollar amounts— 

22 ‘‘(A) quality; 

23 ‘‘(B) acquisition cycle; 

24 ‘‘(C) terms and conditions; and 

25 ‘‘(D) any other benefit.’’. 

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1 SEC. 103. SMALL BUSINESS TEAMS PILOT PROGRAM. 

2 (a) DEFINITIONS.—In this section— 

3 (1) the term ‘‘Center’’ means the Center for 

4 Small Business Teaming established under sub5 section (b); and 

6 (2) the term ‘‘eligible organization’’ means a 

7 well-established national organization for small busi8 ness concerns with the capacity to provide assistance 

9 to small business concerns (which may be provided 

10 with the assistance of the Center) relating to— 

11 (A) customer relations and outreach; 

12 (B) submitting bids and proposals; 

13 (C) team relations and outreach; and 

14 (D) performance measurement and quality 

15 assurance. 

16 (b) ESTABLISHMENT.—The Administrator shall es17 tablish a Center for Small Business Teaming within the 

18 Administration to carry out a pilot program for teaming 

19 and joint ventures involving small business concerns. 

20 (c) GRANTS.—The Center may make grants to eligi21 ble organizations to assemble teams of small business con22 cerns to compete for larger procurement contracts. 

23 (d) CONTRACTING OPPORTUNITIES.— 

24 (1) IN GENERAL.—The Center shall work with 

25 eligible organizations receiving a grant under this 

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1 nities for teams or joint ventures of small business 

2 concerns. 

3 (2) RESTRICTED COMPETITION.—A contracting 

4 officer of a Federal agency may restrict competition 

5 for any contract for the procurement of goods or 

6 services by the Federal agency to teams or joint ven7 tures of small business concerns if determined ap8 propriate by the contracting officer. 

9 (e) TERMINATION.—The authorities under this sec10 tion shall terminate 5 years after the date of enactment 

11 of this Act. 

12 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated for grants by the Center 

14 under subsection (c) $5,000,000 for each of fiscal years 

15 2010 through 2015. 

16 TITLE II—SUBCONTRACTING 

17 INTEGRITY 

18 SEC. 201. GAO RECOMMENDATIONS ON SUBCONTRACTING 

19 MISREPRESENTATIONS. 

20 Section 8 of the Small Business Act (15 U.S.C. 637) 

21 is amended by adding at the end the following: 

22 ‘‘(o) PREVENTION OF MISREPRESENTATIONS IN

23 SUBCONTRACTING; IMPLEMENTATION OF RECOMMENDA24 TIONS OF COMPTROLLER GENERAL.— 

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1 ‘‘(1) STATEMENT OF POLICY.—It is the policy 

2 of Congress that the recommendations of the Comp3 troller General of the United States in Report No. 

4 05–459, concerning oversight improvements nec5 essary to ensure maximum practicable participation 

6 by small business concerns in subcontracting, shall 

7 be implemented Government-wide, to the maximum 

8 extent possible. 

9 ‘‘(2) CONTRACTOR COMPLIANCE.—Compliance 

10 of Federal prime contractors with subcontracting 

11 plans relating to small business concerns shall be 

12 evaluated as a percentage of obligated prime con13 tract dollars and as a percentage of subcontracts 

14 awarded. 

15 ‘‘(3) ISSUANCE OF AGENCY POLICIES.—Not 

16 later than 180 days after the date of enactment of 

17 this subsection, the head of each Federal agency 

18 shall issue a policy on subcontracting compliance re19 lating to small business concerns, including assign20 ment of compliance responsibilities between con21 tracting offices, small business offices, and program 

22 offices and periodic oversight and review activities.’’. 

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1 SEC. 202. SMALL BUSINESS SUBCONTRACTING IMPROVE2 MENTS. 

3 Section 8(d)(6) of the Small Business Act (15 U.S.C. 

4 637(d)(6)) is amended— 

5 (1) in subparagraph (E), by striking ‘‘and’’ at 

6 the end; 

7 (2) in subparagraph (F), by striking the period 

8 at the end and inserting ‘‘; and’’; and 

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

10 ‘‘(G) a certification that the offeror or bid11 der will acquire articles, equipment, supplies, 

12 services, or materials, or obtain the perform13 ance of construction work from the small busi14 ness concerns used in preparing and submitting 

15 to the contracting agency the bid or proposal, 

16 in the same amount and quality used in pre17 paring and submitting the bid or proposal, un18 less the small business concerns are no longer 

19 in business or can no longer meet the quality, 

20 quantity, or delivery date.’’. 

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1 TITLE III—ACQUISITION 

2 PROCESS 

3 SEC. 301. RESERVATION OF PRIME CONTRACT AWARDS 

4 FOR SMALL BUSINESSES. 

5 Section 15 of the Small Business Act (15 U.S.C. 

6 644), as amended by this Act, is amended by adding at 

7 the end the following: 

8 ‘‘(r) GOVERNMENT-WIDE ACQUISITION CON9 TRACTS.—Not later than 180 days after the date of enact10 ment of this subsection, the Administrator for Federal 

11 Procurement Policy and the Administrator shall jointly, 

12 by regulation, establish criteria for Federal agencies for— 

13 ‘‘(1) setting aside part or parts of a multiple 

14 award contract (as defined in section 44), Federal 

15 supply schedule contracts, and other Government16 wide acquisition contracts for small business con17 cerns, including the subcategories of small business 

18 concerns identified in subsection (g)(2); 

19 ‘‘(2) setting aside orders placed against mul20 tiple award contracts, Federal supply schedule con21 tracts, and other Government-wide acquisition con22 tracts for small business concerns, including the sub23 categories of small business concerns identified in 

24 subsection (g)(2); and 

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1 ‘‘(3) reserving 1 or more contract awards for 

2 small business concerns under full and open multiple 

3 award procurements, including the subcategories of 

4 small business concerns identified in subsection 

5 (g)(2).’’. 

6 SEC. 302. MICRO-PURCHASE GUIDELINES. 

7 Not later than 1 year after the date of enactment 

8 of this Act, the Controller of the Office of Federal Finan9 cial Management shall issue guidelines regarding the anal10 ysis of purchase card expenditures to identify opportuni11 ties for achieving and accurately measuring fair participa12 tion of small business concerns in purchases in an amount 

13 not in excess of the micro-purchase threshold, as defined 

14 in section 32 of the Office of Federal Procurement Policy 

15 Act (41 U.S.C. 428) (in this section referred to as ‘‘micro16 purchases’’), consistent with the national policy on small 

17 business participation in Federal procurements set forth 

18 in sections 2(a) and 15(g) of the Small Business Act (15 

19 U.S.C. 631(a) and 644(g)), and dissemination of best 

20 practices for participation of small business concerns in 

21 micro-purchases. 

22 SEC. 303. AGENCY ACCOUNTABILITY. 

23 Section 15(g)(2) of the Small Business Act (15 

24 U.S.C. 644(g)(2)) is amended— 

25 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

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1 (2) by striking ‘‘Goals established’’ and insert2 ing the following: 

3 ‘‘(B) Goals established’’; 

4 (3) by striking ‘‘Whenever’’ and inserting the 

5 following: 

6 ‘‘(C) Whenever’’; 

7 (4) by striking ‘‘For the purpose of’’ and insert8 ing the following: 

9 ‘‘(D) For the purpose of’’; 

10 (5) by striking ‘‘The head of each Federal 

11 agency, in attempting to attain such participation’’ 

12 and inserting the following: 

13 ‘‘(E) The head of each Federal agency, in attempting 

14 to attain the participation described in subparagraph 

15 (D)’’. 

16 (6) in subparagraph (E), as so designated— 

17 (A) by striking ‘‘(A) contracts’’ and insert18 ing ‘‘(i) contracts’’; and 

19 (B) by striking ‘‘(B) contracts’’ and insert20 ing ‘‘(ii) contracts’’; and 

21 (7) by adding at the end the following: 

22 ‘‘(F)(i) Each procurement employee or program man23 ager described in clause (ii)— 

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1 ‘‘(I) shall communicate to the subordinates of 

2 the procurement employee or program manager the 

3 importance of achieving small business goals; and 

4 ‘‘(II) shall have as a significant factor in the 

5 annual performance evaluation of the procurement 

6 employee or program manager, where appropriate, 

7 the success of that procurement employee or pro8 gram manager in small business utilization, in ac9 cordance with the goals established under this sub10 section. 

11 ‘‘(ii) A procurement employee or program manager 

12 described in this clause is a senior procurement executive, 

13 senior program manager, or Director of Small and Dis14 advantaged Business Utilization of a Federal agency hav15 ing contracting authority.’’. 

16 SEC. 304. PAYMENT OF SUBCONTRACTORS. 

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

18 637(d)) is amended by adding at the end the following: 

19 ‘‘(11) PAYMENT OF SUBCONTRACTORS.— 

20 ‘‘(A) DEFINITION.—In this paragraph, the term 

21 ‘covered contract’ means a contract relating to which 

22 a prime contractor is required to develop a subcon23 tracting plan under paragraph (4) or (5). 

24 ‘‘(B) NOTICE.— 

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1 ‘‘(i) IN GENERAL.—A prime contractor for 

2 a covered contract shall notify in writing the 

3 contracting officer for the covered contract if 

4 the prime contractor pays a reduced price to a 

5 subcontractor for goods and services upon com6 pletion of the responsibilities of the subcon7 tractor or the payment to a subcontractor is 

8 more than 90 days past due for goods or serv9 ices provided for the covered contract for 

10 which— 

11 ‘‘(I) the Federal agency has paid the 

12 prime contractor; or 

13 ‘‘(II) the prime contractor has sub14 mitted a request for payment to the Fed15 eral agency. 

16 ‘‘(ii) CONTENTS.—A prime contractor shall 

17 include the reason for the reduction in a pay18 ment to or failure to pay a subcontractor in any 

19 notice made under clause (i). 

20 ‘‘(iii) PUBLIC AVAILABILITY.—The head of 

21 each Federal agency shall, after redacting infor22 mation identifying any subcontractor, make 

23 publicly available any notice made under clause 

24 (i). 

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1 ‘‘(C) PERFORMANCE.—A contracting officer for 

2 a covered contract shall consider the failure by a 

3 prime contractor to make a full or timely payment 

4 to a subcontractor in evaluating the performance of 

5 the prime contractor. 

6 ‘‘(D) CONTROL OF FUNDS.—A contracting offi7 cer for a covered contract may restrict the authority 

8 of a prime contractor that has a history of untimely 

9 payment of subcontractors (as determined by the 

10 contracting officer) to make expenditures under or 

11 control payment of subcontractors for a covered con12 tract.’’. 

13 SEC. 305. REPEAL OF SMALL BUSINESS COMPETITIVENESS 

14 DEMONSTRATION PROGRAM. 

15 (a) IN GENERAL.—The Business Opportunity Devel16 opment Reform Act of 1988 (Public Law 100–656) is 

17 amended by striking title VII (15 U.S.C. 644 note). 

18 (b) EFFECTIVE DATE AND APPLICABILITY.—The 

19 amendment made by this section— 

20 (1) shall take effect on the date of enactment 

21 of this Act; and 

22 (2) apply to the first full fiscal year after the 

23 date of enactment of this Act. 

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1 TITLE IV—SMALL BUSINESS SIZE 

2 AND STATUS INTEGRITY 

3 SEC. 401. POLICY AND PRESUMPTIONS. 

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

5 is amended by adding at the end the following: 

6 ‘‘(t) PRESUMPTION.— 

7 ‘‘(1) IN GENERAL.—In every contract, sub8 contract, cooperative agreement, cooperative re9 search and development agreement, or grant which 

10 is set aside, reserved, or otherwise classified as in11 tended for award to small business concerns, there 

12 shall be a presumption of loss to the United States 

13 based on the total amount expended on the contract, 

14 subcontract, cooperative agreement, cooperative re15 search and development agreement, or grant when16 ever it is established that a business concern other 

17 than a small business concern willfully sought and 

18 received the award by misrepresentation. 

19 ‘‘(2) DEEMED CERTIFICATIONS.—The following 

20 actions shall be deemed affirmative, willful, and in21 tentional certifications of small business size and 

22 status: 

23 ‘‘(A) Submission of a bid or proposal for a 

24 Federal grant, contract, subcontract, coopera25 tive agreement, or cooperative research and demstockstill on DSKH9S0YB1PROD with BILLS

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1 velopment agreement reserved, set aside, or oth2 erwise classified as intended for award to small 

3 business concerns. 

4 ‘‘(B) Submission of a bid or proposal for 

5 a Federal grant, contract, subcontract, coopera6 tive agreement, or cooperative research and de7 velopment agreement which in any way encour8 ages a Federal agency to classify the bid or pro9 posal, if awarded, as an award to a small busi10 ness concern. 

11 ‘‘(C) Registration on any Federal elec12 tronic database for the purpose of being consid13 ered for award of a Federal grant, contract, 

14 subcontract, cooperative agreement, or coopera15 tive research agreement, as a small business 

16 concern. 

17 ‘‘(3) CERTIFICATION BY SIGNATURE OF RE18 SPONSIBLE OFFICIAL.— 

19 ‘‘(A) IN GENERAL.—Each solicitation, bid, 

20 or application for a Federal contract, sub21 contract, or grant shall contain a certification 

22 concerning the small business size and status of 

23 a business concern seeking the Federal con24 tract, subcontract, or grant. 

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1 ‘‘(B) CONTENT OF CERTIFICATIONS.—A 

2 certification that a business concern qualifies as 

3 a small business concern of the exact size and 

4 status claimed by the business concern for pur5 poses of bidding on a Federal contract or sub6 contract, or applying for a Federal grant, shall 

7 contain the signature of a director, officer, or 

8 counsel on the same page on which the certifi9 cation is contained. 

10 ‘‘(4) REGULATIONS.—The Administrator shall 

11 promulgate regulations to provide adequate protec12 tions to individuals and business concerns from li13 ability under this subsection in cases of uninten14 tional errors, technical malfunctions, and other simi15 lar situations.’’. 

16 SEC. 402. ANNUAL CERTIFICATION. 

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

18 as amended by this Act, is amended by adding at the end 

19 the following: 

20 ‘‘(u) ANNUAL CERTIFICATION.— 

21 ‘‘(1) IN GENERAL.—Each business certified as 

22 a small business concern under this Act shall annu23 ally certify its small business size and, if appro24 priate, its small business status, by means of a conmstockstill on DSKH9S0YB1PROD with BILLS

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1 firming entry on the ORCA database of the Admin2 istration, or any successor thereto. 

3 ‘‘(2) REGULATIONS.—Not later than 1 year 

4 after the date of enactment of this subsection, the 

5 Administrator, in consultation with the Inspector 

6 General and the Chief Counsel for Advocacy of the 

7 Administration, shall promulgate regulations to en8 sure that— 

9 ‘‘(A) no business concern continues to be 

10 certified as a small business concern on the 

11 ORCA database of the Administration, or any 

12 successor thereto, without fulfilling the require13 ments for annual certification under this sub14 section; and 

15 ‘‘(B) the requirements of this subsection 

16 are implemented in a manner presenting the 

17 least possible regulatory burden on small busi18 ness concerns. 

19 ‘‘(3) DETERMINATION OF SIZE STATUS.—The 

20 small business size or status of a business concern 

21 shall be determined at the time of the award of a 

22 Federal— 

23 ‘‘(A) contract, except that, in the case of 

24 interagency multiple award contracts (as de25 fined in section 44), small business size or stamstockstill on DSKH9S0YB1PROD with BILLS

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1 tus shall be determined annually, except for 

2 purposes of the award of each task or delivery 

3 order set aside or reserved for small business 

4 concerns; 

5 ‘‘(B) subcontract; 

6 ‘‘(C) grant; 

7 ‘‘(D) cooperative agreement; or 

8 ‘‘(E) cooperative research and development 

9 agreement.’’. 

10 SEC. 403. TRAINING FOR CONTRACTING AND ENFORCE11 MENT PERSONNEL. 

12 (a) IN GENERAL.—Not later than 1 year after the 

13 date of enactment of this Act, the Federal Acquisition In14 stitute, in consultation with the Administrator for Federal 

15 Procurement Policy, shall develop courses concerning 

16 proper classification of business concerns and small busi17 ness size and status for purposes of Federal contracts, 

18 subcontracts, grants, cooperative agreements, and cooper19 ative research and development agreements. 

20 (b) POLICY ON PROSECUTIONS OF SMALL BUSINESS

21 SIZE AND STATUS FRAUD.—Section 3 of the Small Busi22 ness Act (15 U.S.C. 632), as amended by this Act, is 

23 amended by adding at the end the following: 

24 ‘‘(v) POLICY ON PROSECUTIONS OF SMALL BUSINESS

25 SIZE AND STATUS FRAUD.—Not later than 1 year after 

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1 the date of enactment of this subsection, the head of each 

2 relevant Federal agency and the Inspector General of the 

3 Administration shall issue a Government-wide policy on 

4 prosecution of small business size and status fraud.’’. 

5 SEC. 404. UPDATED SIZE STANDARDS. 

6 Not later than 1 year after the date of enactment 

7 of this Act, and every 5 years thereafter, the Adminis8 trator shall— 

9 (1) conduct a detailed review of the size stand10 ards for small business concerns established under 

11 section 3(a)(2) of the Small Business Act (15 U.S.C. 

12 632(a)(2)); 

13 (2) make appropriate adjustments to size stand14 ards under that section to reflect market conditions; 

15 and 

16 (3) make publically available information re17 garding— 

18 (A) the factors evaluated as part of the re19 view conducted under paragraph (1); and 

20 (B) the criteria used for any revised size 

21 standards promulgated under paragraph (2). 

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

23 PROGRAM. 

24 (a) IN GENERAL.—The Comptroller General of the 

25 United States shall conduct a study of the mentor-protege 

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1 program of the Administration for small business concerns 

2 participating in programs under section 8(a) of the Small 

3 Business Act (15 U.S.C. 637(a)), and other relationships 

4 and strategic alliances pairing a larger business and a 

5 small business concern partner to gain access to Federal 

6 Government contracts, to determine whether the programs 

7 and relationships are effectively supporting the goal of in8 creasing the participation of small business concerns in 

9 Government contracting. 

10 (b) MATTERS TO BE STUDIED.—The study con11 ducted under this section shall include— 

12 (1) a review of a broad cross-section of indus13 tries; and 

14 (2) an evaluation of— 

15 (A) how each Federal agency carrying out 

16 a program described in subsection (a) admin17 isters and monitors the program; 

18 (B) whether there are systems in place to 

19 ensure that the mentor-protege relationship, or 

20 similar affiliation, promotes real gain to the 

21 protege, and is not just a mechanism to enable 

22 participants that would not otherwise qualify 

23 under section 8(a) of the Small Business Act 

24 (15 U.S.C. 637(a)) to receive contracts under 

25 that section; and 

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1 (C) the degree to which protege businesses 

2 become able to compete for Federal contracts 

3 without the assistance of a mentor. 

4 (c) REPORT TO CONGRESS.—Not later than 180 days 

5 after the date of enactment of this Act, the Comptroller 

6 General shall submit to the Committee on Small Business 

7 and Entrepreneurship of the Senate and the Committee 

8 on Small Business of the House of Representatives a re9 port on the results of the study conducted under this sec10 tion. 

11 SECTION 1. SHORT TITLE. 

12 This Act may be cited as the ‘‘Small Business Con13 tracting Revitalization Act of 2010’’. 

14 SEC. 2. TABLE OF CONTENTS. 

15 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. 

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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. 

1 SEC. 3. DEFINITIONS. 

2 In this Act— 

3 (1) the terms ‘‘Administration’’ and ‘‘Adminis4 trator’’ mean the Small Business Administration and 

5 the Administrator thereof, respectively; and 

6 (2) the term ‘‘small business concern’’ has the 

7 meaning given that term under section 3 of the Small 

8 Business Act (15 U.S.C. 632). 

9 TITLE I—CONTRACT BUNDLING 

10 SEC. 101. LEADERSHIP AND OVERSIGHT. 

11 (a) IN GENERAL.—Section 15 of the Small Business 

12 Act (15 U.S.C. 644) is amended by adding at the end the 

13 following: 

14 ‘‘(q) BUNDLING ACCOUNTABILITY MEASURES.— 

15 ‘‘(1) TEAMING REQUIREMENTS.—Each Federal 

16 agency shall include in each solicitation for any con17 tract award above the substantial bundling threshold 

18 of the Federal agency a provision soliciting bids by 

19 teams and joint ventures of small business concerns. 

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1 ‘‘(2) AGENCY POLICIES ON REDUCTION OF CON2 TRACT BUNDLING.—The head of each Federal agency 

3 shall— 

4 ‘‘(A) not later than 180 days after the date 

5 of enactment of this subsection, publish on the 

6 website of the Federal agency the policy of the 

7 Federal agency regarding contracting bundling 

8 and consolidation, including regarding the solic9 itation of teaming and joint ventures under 

10 paragraph (1); and 

11 ‘‘(B) not later than 30 days after the date 

12 on which the head of the Federal agency submits 

13 data certifications to the Administrator for Fed14 eral Procurement Policy, publish on the website 

15 of the Federal agency a list and rationale for 

16 any bundled contract for which the Federal agen17 cy solicited bids or that was awarded by the Fed18 eral agency. 

19 ‘‘(3) REPORTING.—Not later than 90 days after 

20 the date of enactment of this subsection, and every 3 

21 years thereafter, the Area Directors for Government 

22 Contracting of the Administration shall submit to the 

23 Committee on Small Business and Entrepreneurship 

24 of the Senate and the Committee on Small Business 

25 of the House of Representatives a report regarding 

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1 procurement center representatives and commercial 

2 market representatives, which shall— 

3 ‘‘(A) identify each area for which the Ad4 ministration has assigned a procurement center 

5 representative or a commercial market represent6 ative; 

7 ‘‘(B) explain why the Administration se8 lected the areas identified under subparagraph 

9 (A); and 

10 ‘‘(C) describe the activities performed by 

11 procurement center representatives and commer12 cial market representatives.’’. 

13 (b) TECHNICAL CORRECTION.—Section 15(g) of the 

14 Small Business Act (15 U.S.C. 644(g)) is amended by strik15 ing ‘‘Administrator of the Office of Federal Procurement 

16 Policy’’ each place it appears and inserting ‘‘Administrator 

17 for Federal Procurement Policy’’. 

18 (c) REPORT.— 

19 (1) IN GENERAL.—Not later than 180 days after 

20 the date of enactment of this Act, the Comptroller 

21 General of the United States shall submit to Congress 

22 a report regarding the procurement center representa23 tive program of the Administration. 

24 (2) CONTENTS.—The report submitted under 

25 paragraph (1) shall— 

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1 (A) address ways to improve the effective2 ness of the procurement center representative 

3 program in helping small business concerns ob4 tain Federal contracts; 

5 (B) evaluate the effectiveness of procurement 

6 center representatives and commercial marketing 

7 representatives; and 

8 (C) include recommendations, if any, on 

9 how to improve the procurement center rep10 resentative program. 

11 (d) ELECTRONIC PROCUREMENT CENTER REPRESENT12 ATIVE.—Not later than 180 days after the date of enactment 

13 of this Act, the Administrator shall implement an electronic 

14 procurement center representative program. 

15 SEC. 102. CONSOLIDATION OF CONTRACT REQUIREMENTS. 

16 The Small Business Act (15 U.S.C. 631 et seq.) is 

17 amended— 

18 (1) by redesignating section 44 as section 45; 

19 and 

20 (2) by inserting after section 43 the following: 

21 ‘‘SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS. 

22 ‘‘(a) DEFINITIONS.—In this section— 

23 ‘‘(1) the term ‘Chief Acquisition Officer’ means 

24 the employee of a Federal agency designated as the 

25 Chief Acquisition Officer for the Federal agency under 

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1 section 16(a) of the Office of Federal Procurement 

2 Policy Act (41 U.S.C. 414(a)); 

3 ‘‘(2) the term ‘consolidation of contract require4 ments’, with respect to contract requirements of a 

5 Federal agency, means a use of a solicitation to ob6 tain offers for a single contract or a multiple award 

7 contract to satisfy 2 or more requirements of the Fed8 eral agency for goods or services that have been, are 

9 being, or will be provided to, or will be performed for 

10 or would typically be performed for, the Federal agen11 cy under 2 or more separate contracts lower in cost 

12 than the total cost of the contract for which the offers 

13 are solicited; 

14 ‘‘(3) the term ‘multiple award contract’ means— 

15 ‘‘(A) a multiple award task order contract 

16 or delivery order contract that is entered into 

17 under the authority of sections 303H through 

18 303K of the Federal Property and Administra19 tive Services Act of 1949 (41 U.S.C. 253h 

20 through 253k); and 

21 ‘‘(B) any other indefinite delivery, indefi22 nite quantity contract that is entered into by the 

23 head of a Federal agency with 2 or more sources 

24 pursuant to the same solicitation; and 

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1 ‘‘(4) the term ‘senior procurement executive’ 

2 means an official designated under section 16(c) of 

3 the Office of Federal Procurement Policy Act (41 

4 U.S.C. 414(c)) as the senior procurement executive for 

5 a Federal agency. 

6 ‘‘(b) POLICY.—The head of each Federal agency shall 

7 ensure that the decisions made by the Federal agency re8 garding consolidation of contract requirements of the Fed9 eral agency are made with a view to providing small busi10 ness concerns with appropriate opportunities to participate 

11 as prime contractors and subcontractors in the procure12 ments of the Federal agency. 

13 ‘‘(c) LIMITATION ON USE OF ACQUISITION STRATE14 GIES INVOLVING CONSOLIDATION.— 

15 ‘‘(1) IN GENERAL.—The head of a Federal agen16 cy may not carry out an acquisition strategy that in17 cludes a consolidation of contract requirements of the 

18 Federal agency with a total value of more than 

19 $2,000,000, unless the senior procurement executive or 

20 Chief Acquisition Officer for the Federal agency, be21 fore carrying out the acquisition strategy— 

22 ‘‘(A) conducts market research; 

23 ‘‘(B) identifies any alternative contracting 

24 approaches that would involve a lesser degree of 

25 consolidation of contract requirements; 

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1 ‘‘(C) makes a written determination that 

2 the consolidation of contract requirements is nec3 essary and justified; 

4 ‘‘(D) identifies any negative impact by the 

5 acquisition strategy on contracting with small 

6 business concerns; and 

7 ‘‘(E) certifies that the acquisition strategy 

8 fulfills the small business contracting goals of the 

9 Federal agency. 

10 ‘‘(2) DETERMINATION THAT CONSOLIDATION IS

11 NECESSARY AND JUSTIFIED.— 

12 ‘‘(A) IN GENERAL.—A senior procurement 

13 executive or Chief Acquisition Officer may deter14 mine that an acquisition strategy involving a 

15 consolidation of contract requirements is nec16 essary and justified for the purposes of para17 graph (1)(C) if the benefits of the acquisition 

18 strategy substantially exceed the benefits of each 

19 of the possible alternative contracting approaches 

20 identified under paragraph (1)(B). 

21 ‘‘(B) SAVINGS IN ADMINISTRATIVE OR PER22 SONNEL COSTS.—For purposes of subparagraph 

23 (A), savings in administrative or personnel costs 

24 alone do not constitute a sufficient justification 

25 for a consolidation of contract requirements in a 

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1 procurement unless the expected total amount of 

2 the cost savings, as determined by the senior pro3 curement executive or Chief Acquisition Officer, 

4 is substantial in relation to the total cost of the 

5 procurement. 

6 ‘‘(3) BENEFITS TO BE CONSIDERED.—The bene7 fits considered for the purposes of paragraphs (1) and 

8 (2) may include cost and, regardless of whether quan9 tifiable in dollar amounts— 

10 ‘‘(A) quality; 

11 ‘‘(B) acquisition cycle; 

12 ‘‘(C) terms and conditions; and 

13 ‘‘(D) any other benefit.’’. 

14 SEC. 103. SMALL BUSINESS TEAMS PILOT PROGRAM. 

15 (a) DEFINITIONS.—In this section— 

16 (1) the term ‘‘Center’’ means the Center for 

17 Small Business Teaming established under subsection 

18 (b); and 

19 (2) the term ‘‘eligible organization’’ means a 

20 well-established national organization for small busi21 ness concerns with the capacity to provide assistance 

22 to small business concerns (which may be provided 

23 with the assistance of the Center) relating to— 

24 (A) customer relations and outreach; 

25 (B) submitting bids and proposals; 

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1 (C) team relations and outreach; and 

2 (D) performance measurement and quality 

3 assurance. 

4 (b) ESTABLISHMENT.—The Administrator shall estab5 lish a Center for Small Business Teaming within the Ad6 ministration to carry out a pilot program for teaming and 

7 joint ventures involving small business concerns. 

8 (c) GRANTS.—The Center may make grants to eligible 

9 organizations to assemble teams of small business concerns 

10 to compete for larger procurement contracts. 

11 (d) CONTRACTING OPPORTUNITIES.— 

12 (1) IN GENERAL.—The Center shall work with el13 igible organizations receiving a grant under this sec14 tion to identify appropriate contracting opportunities 

15 for teams or joint ventures of small business concerns. 

16 (2) RESTRICTED COMPETITION.—A contracting 

17 officer of a Federal agency may restrict competition 

18 for any contract for the procurement of goods or serv19 ices by the Federal agency to teams or joint ventures 

20 of small business concerns if determined appropriate 

21 by the contracting officer. 

22 (e) TERMINATION.—The authorities under this section 

23 shall terminate 5 years after the date of enactment of this 

24 Act. 

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1 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

2 authorized to be appropriated for grants by the Center 

3 under subsection (c) $5,000,000 for each of fiscal years 2010 

4 through 2015. 

5 TITLE II—SUBCONTRACTING 

6 INTEGRITY 

7 SEC. 201. GAO RECOMMENDATIONS ON SUBCONTRACTING 

8 MISREPRESENTATIONS. 

9 Section 8 of the Small Business Act (15 U.S.C. 637) 

10 is amended by adding at the end the following: 

11 ‘‘(o) PREVENTION OF MISREPRESENTATIONS IN SUB12 CONTRACTING; IMPLEMENTATION OF RECOMMENDATIONS

13 OF COMPTROLLER GENERAL.— 

14 ‘‘(1) STATEMENT OF POLICY.—It is the policy of 

15 Congress that the recommendations of the Comptroller 

16 General of the United States in Report No. 05–459, 

17 concerning oversight improvements necessary to en18 sure maximum practicable participation by small 

19 business concerns in subcontracting, shall be imple20 mented Government-wide, to the maximum extent 

21 possible. 

22 ‘‘(2) CONTRACTOR COMPLIANCE.—Compliance of 

23 Federal prime contractors with subcontracting plans 

24 relating to small business concerns shall be evaluated 

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1 as a percentage of obligated prime contract dollars 

2 and as a percentage of subcontracts awarded. 

3 ‘‘(3) ISSUANCE OF AGENCY POLICIES.—Not later 

4 than 180 days after the date of enactment of this sub5 section, the head of each Federal agency shall issue a 

6 policy on subcontracting compliance relating to small 

7 business concerns, including assignment of compli8 ance responsibilities between contracting offices, small 

9 business offices, and program offices and periodic 

10 oversight and review activities.’’. 

11 SEC. 202. SMALL BUSINESS SUBCONTRACTING IMPROVE12 MENTS. 

13 Section 8(d)(6) of the Small Business Act (15 U.S.C. 

14 637(d)(6)) is amended— 

15 (1) in subparagraph (E), by striking ‘‘and’’ at 

16 the end; 

17 (2) in subparagraph (F), by striking the period 

18 at the end and inserting ‘‘; and’’; and 

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

20 ‘‘(G) a certification that the offeror or bid21 der will acquire articles, equipment, supplies, 

22 services, or materials, or obtain the performance 

23 of construction work from the small business con24 cerns used in preparing and submitting to the 

25 contracting agency the bid or proposal, in the 

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1 same amount and quality used in preparing and 

2 submitting the bid or proposal, unless the small 

3 business concerns are no longer in business or 

4 can no longer meet the quality, quantity, or de5 livery date.’’. 

6 TITLE III—ACQUISITION 

7 PROCESS 

8 SEC. 301. RESERVATION OF PRIME CONTRACT AWARDS FOR 

9 SMALL BUSINESSES. 

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

11 as amended by this Act, is amended by adding at the end 

12 the following: 

13 ‘‘(r) GOVERNMENT-WIDE ACQUISITION CONTRACTS.— 

14 Not later than 180 days after the date of enactment of this 

15 subsection, the Administrator for Federal Procurement Pol16 icy, in consultation with the Administrator, shall, by regu17 lation, establish criteria for Federal agencies for— 

18 ‘‘(1) setting aside part or parts of a multiple 

19 award contract (as defined in section 44), Federal 

20 supply schedule contracts, and other Government-wide 

21 acquisition contracts for small business concerns, in22 cluding the subcategories of small business concerns 

23 identified in subsection (g)(2); 

24 ‘‘(2) setting aside orders placed against multiple 

25 award contracts, Federal supply schedule contracts, 

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1 and other Government-wide acquisition contracts for 

2 small business concerns, including the subcategories of 

3 small business concerns identified in subsection 

4 (g)(2); and 

5 ‘‘(3) reserving 1 or more contract awards for 

6 small business concerns under full and open multiple 

7 award procurements, including the subcategories of 

8 small business concerns identified in subsection 

9 (g)(2). 

10 ‘‘(s) PROTECTING INDIVIDUAL SMALL BUSINESS CON11 TRACT OPPORTUNITIES.—For each fiscal year, the head of 

12 a Federal agency shall award through competition re13 stricted to small business concerns contracts in a total num14 ber and amount equal to the total number and amount of 

15 contracts not awarded through competition restricted to 

16 small business concerns because— 

17 ‘‘(1) the small business concern that is the prime 

18 contractor for the contract merged with or was ac19 quired by a business concern that is not a small busi20 ness concern; or 

21 ‘‘(2) the Federal agency awarded the contract 

22 through full and open competition for the purposes of 

23 a follow-on contract.’’. 

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1 SEC. 302. MICRO-PURCHASE GUIDELINES. 

2 Not later than 1 year after the date of enactment of 

3 this Act, the Director of the Office of Management and 

4 Budget shall issue guidelines regarding the analysis of pur5 chase card expenditures to identify opportunities for achiev6 ing and accurately measuring fair participation of small 

7 business concerns in purchases in an amount not in excess 

8 of the micro-purchase threshold, as defined in section 32 

9 of the Office of Federal Procurement Policy Act (41 U.S.C. 

10 428) (in this section referred to as ‘‘micro-purchases’’), con11 sistent with the national policy on small business partici12 pation in Federal procurements set forth in sections 2(a) 

13 and 15(g) of the Small Business Act (15 U.S.C. 631(a) and 

14 644(g)), and dissemination of best practices for participa15 tion of small business concerns in micro-purchases. 

16 SEC. 303. AGENCY ACCOUNTABILITY. 

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

18 644(g)(2)) is amended— 

19 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

20 (2) by striking ‘‘Goals established’’ and inserting 

21 the following: 

22 ‘‘(B) Goals established’’; 

23 (3) by striking ‘‘Whenever’’ and inserting the fol24 lowing: 

25 ‘‘(C) Whenever’’; 

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1 (4) by striking ‘‘For the purpose of’’ and insert2 ing the following: 

3 ‘‘(D) For the purpose of’’; 

4 (5) by striking ‘‘The head of each Federal agen5 cy, in attempting to attain such participation’’ and 

6 inserting the following: 

7 ‘‘(E) The head of each Federal agency, in attempting 

8 to attain the participation described in subparagraph (D)’’. 

9 (6) in subparagraph (E), as so designated— 

10 (A) by striking ‘‘(A) contracts’’ and insert11 ing ‘‘(i) contracts’’; and 

12 (B) by striking ‘‘(B) contracts’’ and insert13 ing ‘‘(ii) contracts’’; and 

14 (7) by adding at the end the following: 

15 ‘‘(F)(i) Each procurement employee or program man16 ager described in clause (ii)— 

17 ‘‘(I) shall communicate to the subordinates of the 

18 procurement employee or program manager the im19 portance of achieving small business goals; and 

20 ‘‘(II) shall have as a significant factor in the an21 nual performance evaluation of the procurement em22 ployee or program manager, where appropriate, the 

23 success of that procurement employee or program 

24 manager in small business utilization, in accordance 

25 with the goals established under this subsection. 

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1 ‘‘(ii) A procurement employee or program manager de2 scribed in this clause is a senior procurement executive, sen3 ior program manager, or Director of Small and Disadvan4 taged Business Utilization of a Federal agency having con5 tracting authority.’’. 

6 SEC. 304. PAYMENT OF SUBCONTRACTORS. 

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

8 637(d)) is amended by adding at the end the following: 

9 ‘‘(11) PAYMENT OF SUBCONTRACTORS.— 

10 ‘‘(A) DEFINITION.—In this paragraph, the term 

11 ‘covered contract’ means a contract relating to which 

12 a prime contractor is required to develop a subcon13 tracting plan under paragraph (4) or (5). 

14 ‘‘(B) NOTICE.— 

15 ‘‘(i) IN GENERAL.—A prime contractor for 

16 a covered contract shall pay a small business as 

17 quickly as possible after the date on which prop18 er documentation is received according to the 

19 contract terms and before the payment due date. 

20 A prime contractor for a covered contract shall 

21 notify in writing the contracting officer for the 

22 covered contract if the prime contractor pays a 

23 reduced price to a subcontractor for goods and 

24 services upon completion of the responsibilities of 

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1 tractor is more than 90 days past due for goods 

2 or services provided for the covered contract for 

3 which— 

4 ‘‘(I) the Federal agency has paid the 

5 prime contractor; or 

6 ‘‘(II) the prime contractor has sub7 mitted a request for payment to the Federal 

8 agency. 

9 ‘‘(ii) CONTENTS.—A prime contractor shall 

10 include the reason for the reduction in a pay11 ment to or failure to pay a subcontractor in any 

12 notice made under clause (i). 

13 ‘‘(iii) PUBLIC AVAILABILITY.—The head of 

14 each Federal agency shall, after redacting infor15 mation identifying any subcontractor, make pub16 licly available any notice made under clause (i). 

17 ‘‘(C) PERFORMANCE.—A contracting officer for a 

18 covered contract shall consider the failure by a prime 

19 contractor to make a full or timely payment to a sub20 contractor in evaluating the performance of the prime 

21 contractor. 

22 ‘‘(D) CONTROL OF FUNDS.—A contracting officer 

23 for a covered contract may restrict the authority of a 

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1 tracting officer) to make expenditures under or con2 trol payment of subcontractors for a covered con3 tract.’’. 

4 SEC. 305. REPEAL OF SMALL BUSINESS COMPETITIVENESS 

5 DEMONSTRATION PROGRAM. 

6 (a) IN GENERAL.—The Business Opportunity Develop7 ment Reform Act of 1988 (Public Law 100–656) is amended 

8 by striking title VII (15 U.S.C. 644 note). 

9 (b) EFFECTIVE DATE AND APPLICABILITY.—The 

10 amendment made by this section— 

11 (1) shall take effect on the date of enactment of 

12 this Act; and 

13 (2) apply to the first full fiscal year after the 

14 date of enactment of this Act. 

15 TITLE IV—SMALL BUSINESS SIZE 

16 AND STATUS INTEGRITY 

17 SEC. 401. POLICY AND PRESUMPTIONS. 

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

19 is amended by adding at the end the following: 

20 ‘‘(t) PRESUMPTION.— 

21 ‘‘(1) IN GENERAL.—In every contract, sub22 contract, cooperative agreement, cooperative research 

23 and development agreement, or grant which is set 

24 aside, reserved, or otherwise classified as intended for 

25 award to small business concerns, there shall be a premstockstill on DSKH9S0YB1PROD with BILLS

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1 sumption of loss to the United States based on the 

2 total amount expended on the contract, subcontract, 

3 cooperative agreement, cooperative research and devel4 opment agreement, or grant whenever it is established 

5 that a business concern other than a small business 

6 concern willfully sought and received the award by 

7 misrepresentation. 

8 ‘‘(2) DEEMED CERTIFICATIONS.—The following 

9 actions shall be deemed affirmative, willful, and in10 tentional certifications of small business size and sta11 tus: 

12 ‘‘(A) Submission of a bid or proposal for a 

13 Federal grant, contract, subcontract, cooperative 

14 agreement, or cooperative research and develop15 ment agreement reserved, set aside, or otherwise 

16 classified as intended for award to small busi17 ness concerns. 

18 ‘‘(B) Submission of a bid or proposal for a 

19 Federal grant, contract, subcontract, cooperative 

20 agreement, or cooperative research and develop21 ment agreement which in any way encourages a 

22 Federal agency to classify the bid or proposal, if 

23 awarded, as an award to a small business con24 cern. 

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1 ‘‘(C) Registration on any Federal electronic 

2 database for the purpose of being considered for 

3 award of a Federal grant, contract, subcontract, 

4 cooperative agreement, or cooperative research 

5 agreement, as a small business concern. 

6 ‘‘(3) CERTIFICATION BY SIGNATURE OF RESPON7 SIBLE OFFICIAL.— 

8 ‘‘(A) IN GENERAL.—Each solicitation, bid, 

9 or application for a Federal contract, sub10 contract, or grant shall contain a certification 

11 concerning the small business size and status of 

12 a business concern seeking the Federal contract, 

13 subcontract, or grant. 

14 ‘‘(B) CONTENT OF CERTIFICATIONS.—A cer15 tification that a business concern qualifies as a 

16 small business concern of the exact size and sta17 tus claimed by the business concern for purposes 

18 of bidding on a Federal contract or subcontract, 

19 or applying for a Federal grant, shall contain 

20 the signature of a director, officer, or counsel on 

21 the same page on which the certification is con22 tained. 

23 ‘‘(4) REGULATIONS.—The Administrator shall 

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1 ability under this subsection in cases of unintentional 

2 errors, technical malfunctions, and other similar situ3 ations.’’. 

4 SEC. 402. ANNUAL CERTIFICATION. 

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

6 as amended by this Act, is amended by adding at the end 

7 the following: 

8 ‘‘(u) ANNUAL CERTIFICATION.— 

9 ‘‘(1) IN GENERAL.—Each business certified as a 

10 small business concern under this Act shall annually 

11 certify its small business size and, if appropriate, its 

12 small business status, by means of a confirming entry 

13 on the ORCA database of the Administration, or any 

14 successor thereto. 

15 ‘‘(2) REGULATIONS.—Not later than 1 year after 

16 the date of enactment of this subsection, the Adminis17 trator, in consultation with the Inspector General and 

18 the Chief Counsel for Advocacy of the Administration, 

19 shall promulgate regulations to ensure that— 

20 ‘‘(A) no business concern continues to be 

21 certified as a small business concern on the 

22 ORCA database of the Administration, or any 

23 successor thereto, without fulfilling the require24 ments for annual certification under this sub25 section; and 

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1 ‘‘(B) the requirements of this subsection are 

2 implemented in a manner presenting the least 

3 possible regulatory burden on small business con4 cerns. 

5 ‘‘(3) DETERMINATION OF SIZE STATUS.—The 

6 small business size or status of a business concern 

7 shall be determined at the time of the award of a Fed8 eral— 

9 ‘‘(A) contract, except that, in the case of 

10 interagency multiple award contracts (as defined 

11 in section 44), small business size or status shall 

12 be determined annually, except for purposes of 

13 the award of each task or delivery order set aside 

14 or reserved for small business concerns; 

15 ‘‘(B) subcontract; 

16 ‘‘(C) grant; 

17 ‘‘(D) cooperative agreement; or 

18 ‘‘(E) cooperative research and development 

19 agreement.’’. 

20 SEC. 403. TRAINING FOR CONTRACTING AND ENFORCE21 MENT PERSONNEL. 

22 (a) IN GENERAL.—Not later than 1 year after the date 

23 of enactment of this Act, the Federal Acquisition Institute, 

24 in consultation with the Administrator for Federal Procure25 ment Policy, shall develop courses for acquisition personnel 

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1 concerning proper classification of business concerns and 

2 small business size and status for purposes of Federal con3 tracts, subcontracts, grants, cooperative agreements, and co4 operative research and development agreements. 

5 (b) POLICY ON PROSECUTIONS OF SMALL BUSINESS

6 SIZE AND STATUS FRAUD.—Section 3 of the Small Busi7 ness Act (15 U.S.C. 632), as amended by this Act, is amend8 ed by adding at the end the following: 

9 ‘‘(v) POLICY ON PROSECUTIONS OF SMALL BUSINESS

10 SIZE AND STATUS FRAUD.—Not later than 1 year after the 

11 date of enactment of this subsection, the head of each rel12 evant Federal agency and the Inspector General of the Ad13 ministration shall issue a Government-wide policy on pros14 ecution of small business size and status fraud.’’. 

15 SEC. 404. UPDATED SIZE STANDARDS. 

16 (a) IN GENERAL.—The Administrator shall— 

17 (1) once every 5 years, conduct a detailed review 

18 of the size standards for small business concerns es19 tablished under section 3(a)(2) of the Small Business 

20 Act (15 U.S.C. 632(a)(2)); 

21 (2) after each review under paragraph (1) make 

22 appropriate adjustments to size standards under that 

23 section to reflect market conditions; and 

24 (3) make publically available information re25 garding— 

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1 (A) the factors evaluated as part of each re2 view conducted under paragraph (1); and 

3 (B) the criteria used for any revised size 

4 standards promulgated under paragraph (2). 

5 (b) RULES.—Not later than 1 year after the date of 

6 enactment of this Act, the Administrator shall promulgate 

7 rules for conducting the reviews required under subsection 

8 (a). 

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

10 PROGRAM. 

11 (a) IN GENERAL.—The Comptroller General of the 

12 United States shall conduct a study of the mentor-protege 

13 program of the Administration for small business concerns 

14 participating in programs under section 8(a) of the Small 

15 Business Act (15 U.S.C. 637(a)), and other relationships 

16 and strategic alliances pairing a larger business and a 

17 small business concern partner to gain access to Federal 

18 Government contracts, to determine whether the programs 

19 and relationships are effectively supporting the goal of in20 creasing the participation of small business concerns in 

21 Government contracting. 

22 (b) MATTERS TO BE STUDIED.—The study conducted 

23 under this section shall include— 

24 (1) a review of a broad cross-section of indus25 tries; and 

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1 (2) an evaluation of— 

2 (A) how each Federal agency carrying out 

3 a program described in subsection (a) admin4 isters and monitors the program; 

5 (B) whether there are systems in place to 

6 ensure that the mentor-protege relationship, or 

7 similar affiliation, promotes real gain to the 

8 protege, and is not just a mechanism to enable 

9 participants that would not otherwise qualify 

10 under section 8(a) of the Small Business Act (15 

11 U.S.C. 637(a)) to receive contracts under that 

12 section; and 

13 (C) the degree to which protege businesses 

14 become able to compete for Federal contracts 

15 without the assistance of a mentor. 

16 (c) REPORT TO CONGRESS.—Not later than 180 days 

17 after the date of enactment of this Act, the Comptroller Gen18 eral shall submit to the Committee on Small Business and 

19 Entrepreneurship of the Senate and the Committee on 

20 Small Business of the House of Representatives a report on 

21 the results of the study conducted under this section. 

22 SEC. 406. POLICY ON SUPPORT OF COMPETITIVE ENTER23 PRISE SYSTEM. 

24 (a) FINDING.—Congress finds that the competitive en25 terprise system, including small business concerns, is— 

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1 (1) characterized by individual freedom and ini2 tiative; and 

3 (2) the primary source of economic strength of 

4 the United States. 

5 (b) POLICY.—Section 2 of the Small Business Act (15 

6 U.S.C. 631) is amended by adding at the end the following: 

7 ‘‘(k) POLICY ON SUPPORT OF COMPETITIVE ENTER8 PRISE SYSTEM.—It is the declared policy of Congress that 

9 the Federal Government— 

10 ‘‘(1) should support the competitive enterprise 

11 system of the United States, including small business 

12 concerns; 

13 ‘‘(2) should not compete with the citizens of the 

14 United States; 

15 ‘‘(3) should rely on commercial sources to supply 

16 the products and services required by the Federal 

17 Government; and 

18 ‘‘(4) should avoid starting or carrying out any 

19 activity that provides a product or service that can 

20 be procured more effectively and efficiently from a 

21 nongovernmental source.’’. 

22 SEC. 407. CONTRACTING GOALS REPORTS. 

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

24 644(h)(2)) is amended by striking ‘‘submit them’’ and all 

25 that follows through ‘‘the following:’’ and inserting ‘‘submit 

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1 to the President and the Committee on Small Business and 

2 Entrepreneurship of the Senate and the Committee on 

3 Small Business of the House of Representatives the compila4 tion and analysis, which shall include the following:’’. 

5 SEC. 408. SURETY BONDS. 

6 Section 508(f) of division A of the American Recovery 

7 and Reinvestment Act of 2009 (15 U.S.C. 694a note) is re8 pealed. 

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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 

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