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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2662 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2662

   To amend the Small Business Act to modify the small business and 
     capital ownership development program, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 1993

Mr. Richardson (for himself, Mr. Machtley, Mr. Mfume, Ms. Ros-Lehtinen, 
    Mr. Ortiz, Mr. Torres, Mr. Pastor, Mr. Towns, Mr. Serrano, Mr. 
  Oberstar, Mr. deLugo, Mr. Hastings, Mr. Peterson of Minnesota, Mr. 
    Lewis of California, Mr. Bilbray, and Mr. Matsui introduced the 
 following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL

 
   To amend the Small Business Act to modify the small business and 
     capital ownership development program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Business Improvement Act of 1993''.

SEC. 2. BUSINESS ACTIVITY TARGETS.

    Notwithstanding any other provision of law, in administering the 
small business and capital ownership development program established by 
section 7(j)(10) of the Small Business Act, the Administrator of the 
Small Business Administration shall consider any contract awarded to a 
program participant before the date of the enactment of this Act under 
section 8(a)(1)(D) of such Act to be a contract awarded other than 
pursuant to section 8(a) of such Act for purposes of attainment of 
business activity targets under regulations issued pursuant to section 
7(j)(10)(I)(iii) of such Act.

SEC. 3. PROCUREMENT PROCEDURES.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
inserting after subsection (b) the following new subsection:
    ``(c)(1) To facilitate the attainment of a participating agency's 
goal regarding the participation of small business concerns owned and 
controlled by socially and economically disadvantaged individuals 
pursuant to section 15(g)(1), the head of a participating agency may 
enter into contracts using--
            ``(A) less than full and open competition by restricting 
        the competition for such awards to such small business 
        concerns; or
            ``(B) a price evaluation preference of not more than 10 
        percent when evaluating an offer received from such a small 
        business concern as the result of an unrestricted solicitation.
    ``(2) For purposes of this subsection, the term `participating 
agency' means any Federal agency, as defined in section 3(b), other 
than the Department of Defense.
    ``(3) The authority provided for in paragraph (1) shall remain in 
effect until September 30, 2000.''.

SEC. 4. ELIGIBILITY OF PAST DEVELOPMENT PROGRAM PARTICIPANTS FOR 
              SECTION 8(a) CONTRACT AWARDS.

    Section (8)(a)(1)(C) of the Small Business Act (15 U.S.C. 
637(a)(1)(C)) is amended to read as follows:
            ``(C) to make an award to a small business concern owned 
        and controlled by socially and economically disadvantaged 
        individuals which has completed its period of Program 
        Participation as prescribed by section 7(j)(15) if--
                    ``(i) in the case of a competitive award, the 
                prospective contract awardee was a Program Participant 
                eligible for award of the contract on the date 
                specified for receipt of offers contained in the 
                contract solicitation; and
                    ``(ii) in the case of a sole source award, the 
                prospective contract awardee was a Program Participant 
                eligible for award of the contract on the date that the 
                prospective awardee submitted certifications and 
                representations for the contract to the contracting 
                agency.''.

SEC. 5. ELIMINATING COMPETITIVE CONTRACTS UNDER SECTION 8(a).

    Section 8(a)(1) of the Small Business Act (15 U.S.C. 637(a)(1)) is 
amended--
            (1) in subparagraph (B), by striking the semicolon and 
        inserting ``; and''; and
            (2) by striking subparagraph (D).

SEC. 6. CONTINUED ACCESS TO BUSINESS OPPORTUNITIES.

    Section 8(a)(3) of the Small Business Act (15 U.S.C. 637(a)(3)) is 
amended by adding at the end the following:
            ``(E)(i) A contract to furnish products or services to a 
        participating agency shall be competed pursuant to clause (ii) 
        if--
                    ``(I) there is a reasonable expectation of 
                receiving offers from 2 or more eligible small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals which are 
                capable of performing the contract;
                    ``(II) a contract to furnish the same (or 
                substantially similar) products or services is being 
                performed under a contract awarded pursuant to this 
                subsection; and
                    ``(III) the contractor currently performing the 
                contract referred to in subclause (II) will have 
                graduated from the small business and capital ownership 
                development program authorized by section 7(j)(10) 
                prior to the date of issuance of the solicitation for 
                such contract.
            ``(ii) The head of a participating agency shall restrict 
        the competition for the award of a contract described in clause 
        (i) to small business concerns owned and controlled by socially 
        and economically disadvantaged individuals upon the request of 
        the small business concern described in clause (i)(III).
            ``(iii) A small business concern described in clause 
        (i)(III) shall be eligible for award of a contract resulting 
        from a restricted competition described in clause (ii) if such 
        small business concern has entered into (and the contracting 
        officer accepts) an agreement to subcontract not less than 20 
        percent and not more than 50 percent of the award value of the 
        contract to 1 or more small business concerns in the 
        developmental stage of the minority small business and capital 
        ownership development program, as described in section 
        7(j)(15)(A).
            ``(iv) The head of a participating agency awarding a 
        contract pursuant to clause (ii) shall ensure that, following 
        completion of a contract awarded pursuant to clause (ii), any 
        follow-on contract for the same (or substantially similar) 
        products or services will be furnished pursuant to a contract 
        awarded under the authority of this subsection.
            ``(v) For the purposes of this section, the term 
        `participating agency' means any Federal agency, as defined in 
        section 3(b) of this Act.
            ``(vi) For the purposes of this section, the term `small 
        business' means a business concern with not more than 1500 
        employees.''.

SEC. 7. STUDY OF DEVELOPMENT PROGRAM PARTICIPATION TERMS BY INDUSTRY 
              SECTOR; SUSPENSION OF DEVELOPMENT PROGRAM GRADUATIONS.

    (a) Study.--Section 10 of the Small Business Act (15 U.S.C. 639) is 
amended by adding at the end the following:
    ``(i) The Administration shall authorize a short-term study to 
determine the appropriate program participation term by industry sector 
for small business concerns participating in the program authorized by 
section 7(j)(10) and transmit the results of such study to the 
President of the Senate, the Speaker of the House of Representatives, 
and the Committees on Small Business of the Senate and the House of 
Representatives not later than 1 year after the date of the enactment 
of this subsection.''.
    (b) Suspension of Development Program Graduations.--Section 
7(j)(10)(C) of such Act (15 U.S.C. 636(j)(10)(C)) is amended--
            (1) by redesignating clause (ii) as clause (iii); and
            (2) by inserting after clause (i) the following new clause:
            ``(ii) A small business concern participating in any 
        program or activity conducted under the authority of this 
        paragraph or eligible for the award of contracts pursuant to 
        section 8(a) on October 1, 1992, shall be permitted continued 
        participation and eligibility in such program or activity until 
        the latter of--
                    ``(I) 365 days after the date on which final 
                regulations are issued to implement a law establishing 
                appropriate terms for participation in the Program by 
                industry sector based on the study conducted pursuant 
                to section 10(i); or
                    ``(II) the date on which such participation and 
                eligibility would otherwise expire pursuant to the 
                requirements of this subsection.''.

SEC. 8. COMPLIANCE WITH BUY INDIAN ACT.

    Notwithstanding any other provision of law, if a Federal agency 
contracts with the Small Business Administration under section 8(a) of 
the Small Business Act (15 U.S.C. 637(a)) for the acquisition of goods 
or services to be supplied by a small business concern owned and 
controlled by members of an economically disadvantaged Indian tribe (or 
a wholly owned business entity of such tribe) such acquisition shall be 
considered to be in compliance with section 23 of the Act of June 25, 
1910 (36 Stat. 861; 25 U.S.C. 47; popularly known as the ``Buy Indian 
Act'').

SEC. 9. UNIFORM PROCEDURES FOR CONTESTING STATUS OF CONCERNS.

    Section 16 of the Small Business Act (15 U.S.C. 645) is amended by 
adding at the end the following new subsection:
    ``(g) Not later than 120 days after the date of the enactment of 
this subsection, the Administrator, in cooperation with participating 
agencies, shall establish uniform procedures for contesting the status 
of a concern as a `small business concern owned and controlled by 
socially and economically disadvantaged individuals'.''.

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