Expanding Contracting Opportunities for Small Businesses Act of 2018

To amend the Small Business Act to eliminate the inclusion of option years in the award price for sole source contracts, and for other purposes. 1. Short title This Act may be cited as the Expanding Contracting Opportunities for Small Businesses Act of 2018 2. Amendments to contracting authority for certain small business concerns (a) Qualified HUBZone small business concerns Subparagraph (A) of section 31(b)(2) of the Small Business Act ( 15 U.S.C. 657a(b)(2) (A) Sole source contracts A contracting officer may award sole source contracts under this section to any qualified HUBZone small business concern, if— (i) the qualified HUBZone small business concern is determined to be a responsible contractor with respect to performance of such contract opportunity; (ii) the contracting officer does not have a reasonable expectation that two or more qualified HUBZone small business concerns will submit offers for the contracting opportunity; (iii) the anticipated award price of the contract will not exceed— (I) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or (II) $4,000,000, in the case of all other contract opportunities; and (iv) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price. . (b) Small business concern owned and controlled by service-Disabled veterans Subsection (a) of section 36 of the Small Business Act ( 15 U.S.C. 657f (a) Sole Source Contracts In accordance with this section, a contracting officer may award a sole source contract to any small business concern owned and controlled by service-disabled veterans if— (1) such concern is determined to be a responsible contractor with respect to performance of such contract opportunity; (2) the contracting officer does not have a reasonable expectation that two or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity; (3) the anticipated award price of the contract will not exceed— (A) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or (B) $4,000,000, in the case of any other contract opportunity; (4) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price; (5) the contracting officer has notified the Administration of the intent to make such award and requested that the Administration determine the concern’s eligibility for award; and (6) the Administration has determined that such concern is eligible for award. . (c) Certain small business concerns owned and controlled by women Section 8(m) of the Small Business Act ( 15 U.S.C. 637(m) (1) by amending paragraph (7) to read as follows: (7) Authority for sole source contracts for economically disadvantaged small business concerns owned and controlled by women A contracting officer may award a sole source contract under this subsection to any small business concern owned and controlled by women described in paragraph (2)(A) and certified under paragraph (2)(E) if— (A) such concern is determined to be a responsible contractor with respect to performance of the contract opportunity; (B) the contracting officer does not have a reasonable expectation that two or more businesses described in paragraph (2)(A) will submit offers; (C) the anticipated award price of the contract will not exceed— (i) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or (ii) $4,000,000, in the case of any other contract opportunity; (D) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price; (E) the contracting officer has notified the Administration of the intent to make such award and requested that the Administration determine the concern’s eligibility for award; and (F) the Administration has determined that such concern is eligible for award. ; and (2) by amending paragraph (8) to read as follows: (8) Authority for sole source contracts for small business concerns owned and controlled by women in substantially underrepresented industries A contracting officer may award a sole source contract under this subsection to any small business concern owned and controlled by women certified under paragraph (2)(E) that is in an industry in which small business concerns owned and controlled by women are substantially underrepresented (as determined by the Administrator under paragraph (3)) if— (A) such concern is determined to be a responsible contractor with respect to performance of the contract opportunity; (B) the contracting officer does not have a reasonable expectation that two or more businesses in an industry that has received a waiver under paragraph (3) will submit offers; (C) the anticipated award price of the contract will not exceed— (i) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or (ii) $4,000,000, in the case of any other contract opportunity; (D) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price; (E) the contracting officer has notified the Administration of the intent to make such award and requested that the Administration determine the concern’s eligibility for award; and (F) the Administration has determined that such concern is eligible for award. . (d) Elimination of the inclusion of option years in the award price for contracts Section 8 of the Small Business Act ( 15 U.S.C. 637 (including options) 3. SBA certification program notification The Administrator of the Small Business Administration shall notify the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate when the Administrator has implemented each of the following: (1) A program to certify small business concerns owned and controlled by women. (2) A program to certify small business concerns owned and controlled by service-disabled veterans. 4. GAO Report (a) Study With respect to the Small Business Administration’s procurement programs for women-owned small business concerns and for small business concerns owned and controlled by service-disabled veterans, the Comptroller General of the United States shall conduct an evaluation of the policies and practices used by the Administration and other Federal agencies to provide assurance that contracting officers are properly classifying sole source awards under those programs in the Federal Procurement Data System and that sole source contracts awarded under those programs are being awarded to eligible concerns. (b) Report No later than 18 months after the Small Business Administration implements the certification programs described under section 3, the Comptroller General shall issue a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate containing the findings made in carrying out the study required under subsection (a). (c) SBA consideration of GAO report (1) In general The Administrator of the Small Business Administration shall review the report issued under subsection (b) and take such actions as the Administrator may determine appropriate to address any concerns raised in such report and any recommendations contained in such report. (2) Report to Congress After the review described under paragraph (1), the Administrator shall issue a report to the Congress— (A) stating that no additional actions were necessary to address any concerns or recommendations contained in the report; or (B) describing the actions taken by the Administrator to resolve such concerns or implement such recommendations. 5. Removal of eligibility determination upon implementation of certification programs Effective upon the notification described under section 3, the Small Business Act ( 15 U.S.C. 631 (1) in section 8(m)— (A) in paragraph (7)— (i) in subparagraph (C), by adding and (ii) in subparagraph (D), by striking the semicolon at the end and inserting a period; and (iii) by striking subparagraphs (E) and (F); and (B) in paragraph (8)— (i) in subparagraph (C), by adding and (ii) in subparagraph (D), by striking the semicolon at the end and inserting a period; and (iii) by striking subparagraphs (E) and (F); and (2) in section 36(a)— (A) in paragraph (3), by adding and (B) in paragraph (4), by striking the semicolon at the end and inserting a period; and (C) by striking paragraphs (5) and (6). September 12, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Expanding Contracting Opportunities for Small Businesses Act of 2018 This bill amends the Small Business Act to revise requirements for the award of sole source contracts (contracts awarded without a competitive process) to (1) qualified Historically Underutilized Business Zone (HUBZone) small businesses, (2) small businesses owned and controlled by service-disabled veterans, (3) economically disadvantaged small businesses owned and controlled by women, and (4) small business concerns owned and controlled by women in substantially underrepresented industries. The Government Accountability Office must evaluate the policies and practices used by the Small Business Administration and other federal agencies to ensure that contracting officers are properly classifying sole-source contracts under procurement programs for businesses owned by women and disabled veterans in the Federal Procurement Data System.