Clarifying the Small Business Runway Extension Act

To amend the Small Business Act to clarify the intention of Congress that the Administrator of the Small Business Administration is subject to certain requirements with respect to establishing size standards for small business concerns, and for other purposes. 1. Short title This Act may be cited as the Clarifying the Small Business Runway Extension Act 2. Sense of Congress It is the sense of Congress that— (1) the Small Business Runway Extension Act of 2018 ( Public Law 115–324 (2) Federal agencies rely upon such calculations to award contracts, including governmentwide acquisition contracts, to small business concerns; and (3) the Small Business Runway Extension Act of 2018 has been effective since the date it was signed into law, on December 17, 2018. 3. Clarifying amendment to the Small Business Runway Extension Act of 2018 Section 3(a)(2)(C) of the Small Business Act ( 15 U.S.C. 632(a)(2)(C) (including the Administration when acting pursuant to subparagraph (A)) no Federal department or agency 4. Finalization of Small Business Runway Extension Act of 2018 rules The Administrator of the Small Business Administration shall issue a final rule implementing the Small Business Runway Extension Act of 2018 ( Public Law 115–324 5. Amendment to size standards for certain small business concerns (a) Size standards for small business concerns providing services Section 3(a)(2)(C)(ii)(II) of the Small Business Act ( 15 U.S.C. 632(a)(2)(C)(ii)(II) not less than (b) Size standards for other business concerns Section 3(a)(2)(C)(ii)(III) of the Small Business Act ( 15 U.S.C. 632(a)(2)(C)(ii)(III) not less than 3 years 5 years 6. Transition plan for the Small Business Runway Extension Act of 2018 (a) Plan required Not later than 90 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall implement a transition plan to assist business concerns and Federal agencies with compliance with the requirements of the Small Business Runway Extension Act of 2018 ( Public Law 115–324 (b) 3-Year calculation for size standards (1) In general The transition plan described under subsection (a) shall include a requirement that, during the period beginning on December 17, 2018, and ending on the date that is 6 months after the date on which the Administrator issues final rules implementing the Small Business Runway Extension Act of 2018 ( Public Law 115–324 15 U.S.C. 632(a)(1) (2) 3-year calculation defined In this subsection, the term 3-year calculation (A) with respect to a business concern providing services described under clause (ii)(II) of such section, a determination of the size of such concern on the basis of the annual average gross receipts of such concern over a period of 3 years; and (B) with respect to a business concern described under clause (ii)(III) of such section, a determination of the size of such concern on the basis of data over a period of 3 years. 7. Requirement to update SAM Not later than 90 days after the date of the enactment of this Act, the System for Award Management (or any successor system) shall be updated to comply with the requirements of this Act. June 13, 2019 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Clarifying the Small Business Runway Extension Act This bill addresses the statutory authority of the Small Business Runway Extension Act of 2018. The Small Business Administration (SBA) is subject to the Act's requirements for prescribing size standards for small businesses. The SBA must (1) issue a final rule implementing such Act by December 17, 2019, and (2) implement a transition plan to assist businesses and federal agencies in complying with the Act's requirements. The bill calculates (1) size standards for small businesses providing services on the basis of the annual average gross receipts of the business over a five-year period (currently, at least a five-year period); and (2) the size of other businesses on the basis of data over a five-year period (currently, at least a three-year period). The System for Award Management must be updated to comply with the requirements of this bill.