Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Government Efficiency 
through Small Business Contracting Act of 2012’’. 
SEC. 2. GOALS FOR PROCUREMENT CONTRACTS AWARDED 
TO SMALL BUSINESS CONCERNS. 
(a) IN GENERAL.—Section 15(g) of the Small Business 
Act (15 U.S.C. 644(g)) is amended by striking the sub-
section enumerator and inserting the following: 
‘‘(g) GOALS FOR PROCUREMENT CONTRACTS AWARD-
ED TO SMALL BUSINESS CONCERNS.—’’. 
(b) GOVERNMENTWIDE GOALS.—Paragraph (1) of sec-
tion 15(g) of such Act (15 U.S.C. 644(g)) is amended to 
read as follows: 
‘‘(1) GOVERNMENTWIDE GOALS.—The President 
shall annually establish Governmentwide goals for 
procurement contracts awarded to small business con-
cerns, small business concerns owned and controlled 
by service-disabled veterans, qualified HUBZone 
small business concerns, small business concerns 
owned and controlled by socially and economically 
disadvantaged individuals, and small business con-
cerns owned and controlled by women in accordance 
with the following: 
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‘‘(A) The Governmentwide goal for partici-
pation by small business concerns shall be estab-
lished at not less than 25 percent of the total 
value of all prime contract awards for each fiscal 
year and 40 percent of the total value of all sub-
contract awards for each fiscal year. 
‘‘(B) The Governmentwide goal for partici-
pation by small business concerns owned and 
controlled by service-disabled veterans shall be es-
tablished at not less than 3 percent of the total 
value of all prime contract and at not less than 
3 percent of the total value of all subcontract 
awards for each fiscal year. 
‘‘(C) The Governmentwide goal for partici-
pation by qualified HUBZone small business 
concerns shall be established at not less than 3 
percent of the total value of all prime contract 
and at not less than 3 percent of the total value 
of all subcontract awards for each fiscal year. 
‘‘(D) The Governmentwide goal for partici-
pation by small business concerns owned and 
controlled by socially and economically dis-
advantaged individuals shall be established at 
not less than 5 percent of the total value of all 
prime contract and at not less than 5 percent of 
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the total value of all subcontract awards for each 
fiscal year. 
‘‘(E) The Governmentwide goal for partici-
pation by small business concerns owned and 
controlled by women shall be established at not 
less than 5 percent of the total value of all prime 
contract and at not less than 5 percent of the 
total value of all subcontract awards for each fis-
cal year.’’. 
(c) AGENCY GOALS.—Paragraph (2) of section 15(g) 
of such Act (15 U.S.C. 644(g)) is amended to read as fol-
lows: 
‘‘(2) AGENCY GOALS.— 
‘‘(A) ESTABLISHMENT.—The head of each 
Federal agency shall annually establish, for the 
agency that individual heads, goals for procure-
ment contracts awarded to small business con-
cerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, 
and small business concerns owned and con-
trolled by women. 
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‘‘(B) RELATIONSHIP TO GOVERNMENTWIDE 
GOALS.— 
‘‘(i) SCOPE.—The goals established by 
the head of a Federal agency under sub-
paragraph (A) shall be in the same format 
as the goals established by the President 
under paragraph (1) and shall address both 
prime contract and subcontract awards. 
‘‘(ii) REQUIREMENT TO MEET OR EX-
CEED GOVERNMENTWIDE GOALS.—With re-
spect to each goal for a fiscal year estab-
lished under subparagraph (A) for a cat-
egory of small business concern, the partici-
pation percentage applicable to such goal 
may not be less than the participation per-
centage applicable to the Governmentwide 
goal for such fiscal year established under 
paragraph (1) for such category. 
‘‘(C) CONSULTATION REQUIRED.— 
‘‘(i) IN
GENERAL.—In establishing 
goals under subparagraph (A), the head of 
each Federal agency shall consult with the 
Administrator. 
‘‘(ii) DISAGREEMENTS.—If the Admin-
istrator and the head of a Federal agency 
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fail to agree on a goal established under 
subparagraph (A), the disagreement shall be 
submitted to the Administrator for Federal 
Procurement Policy for final determination. 
‘‘(D) PLAN FOR ACHIEVING GOALS.—After 
establishing goals under subparagraph (A) for a 
fiscal year, the head of each Federal agency shall 
develop a plan for achieving such goals, which 
shall apportion responsibilities among the em-
ployees of such agency having procurement pow-
ers. 
‘‘(E) EXPANDED PARTICIPATION.—In estab-
lishing goals under subparagraph (A), the head 
of each Federal agency shall make a consistent 
effort to annually expand participation by small 
business concerns from each industry category in 
procurement contracts of such agency, including 
participation by small business concerns owned 
and controlled by service-disabled veterans, 
qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged indi-
viduals, and small business concerns owned and 
controlled by women. 
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‘‘(F) CONSIDERATION.—The head of each 
Federal agency, in attempting to attain ex-
panded participation under subparagraph (E), 
shall consider— 
‘‘(i) contracts awarded as the result of 
unrestricted competition; and 
‘‘(ii) contracts awarded after competi-
tion restricted to eligible small business con-
cerns under this section and under the pro-
gram established under section 8(a). 
‘‘(G) COMMUNICATION REGARDING GOALS.— 
‘‘(i) 
IMPORTANCE
OF
ACHIEVING 
GOALS.—Each procurement employee or 
program manager described in clause (ii) 
shall communicate to the subordinates of the 
procurement employee or program manager 
the importance of achieving goals estab-
lished under subparagraph (A). 
‘‘(ii) PROCUREMENT
EMPLOYEES
OR 
PROGRAM MANAGERS DESCRIBED.—A pro-
curement employee or program manager de-
scribed in this clause is a senior procure-
ment executive, senior program manager, or 
Director of Small and Disadvantaged Busi-
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ness Utilization of a Federal agency having 
contracting authority.’’. 
(d) ENFORCEMENT; DETERMINATIONS OF THE TOTAL 
VALUE OF CONTRACT AWARDS.—Section 15(g) of the Small 
Business Act (15 U.S.C. 644(g)), as amended by this Act, 
is further amended by adding at the end the following: 
‘‘(3) ENFORCEMENT.—If the Administrator does 
not issue the report required in subsection (h)(2) on 
or before the date that is 120 days after the end of 
the prior fiscal year, the Administrator may not 
carry out or establish any pilot program until the 
date on which the Administrator issues the report. 
‘‘(4) DETERMINATIONS OF THE TOTAL VALUE OF 
CONTRACT AWARDS.—For purposes of the goals estab-
lished under paragraphs (1) and (2), the total value 
of contract awards for a fiscal year may not be deter-
mined in a manner that excludes the value of a con-
tract based on— 
‘‘(A) where the contract is awarded; 
‘‘(B) where the contract is performed; 
‘‘(C) whether the contract is mandated by 
Federal law to be performed by an entity other 
than a small business concern; 
‘‘(D) whether funding for the contract is 
made available in an appropriations Act, if the 
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Administrator must concur with each remedi-
ation plan; 
‘‘(E) for the Federal Government and each 
Federal agency, an analysis of the number and 
dollar amount of prime contracts awarded dur-
ing such fiscal year to— 
‘‘(i) small business concerns— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; and 
‘‘(IV) through unrestricted com-
petition; 
‘‘(ii) small business concerns owned 
and controlled by service-disabled vet-
erans— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
‘‘(IV) through competitions re-
stricted to small business concerns 
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owned and controlled by service-dis-
abled veterans; and 
‘‘(V) through unrestricted com-
petition; 
‘‘(iii) qualified HUBZone small busi-
ness concerns— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
‘‘(IV) through competitions re-
stricted to qualified HUBZone small 
business concerns; 
‘‘(V) through unrestricted com-
petition where a price evaluation pref-
erence was used; and 
‘‘(VI) through unrestricted com-
petition where a price evaluation pref-
erence was not used; 
‘‘(iv) small business concerns owned 
and controlled by socially and economically 
disadvantaged individuals— 
‘‘(I) in the aggregate; 
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‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
‘‘(IV) through competitions re-
stricted to small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals; 
‘‘(V) through unrestricted com-
petition; and 
‘‘(VI) by reason of that concern’s 
certification as a small business owned 
and controlled by socially and eco-
nomically disadvantaged individuals; 
‘‘(v) small business concerns owned by 
an Alaska Native Corporation— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
‘‘(IV) through competitions re-
stricted to small business concerns 
owned and controlled by socially and 
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economically disadvantaged individ-
uals; and 
‘‘(V) through unrestricted com-
petition; and 
‘‘(vi) small business concerns owned 
and controlled by women— 
‘‘(I) in the aggregate; 
‘‘(II) through competitions re-
stricted to small business concerns; 
‘‘(III) through competitions re-
stricted using the authority under sec-
tion 8(m)(2); 
‘‘(IV) through competitions re-
stricted using the authority under sec-
tion 8(m)(2) and in which the waiver 
authority under section 8(m)(3) was 
used; and 
‘‘(V) through unrestricted com-
petition; and 
‘‘(F) for the Federal Government and each 
Federal agency, the number, dollar amount, and 
distribution with respect to the North American 
Industry Classification System of subcontracts 
awarded during such fiscal year to small busi-
ness concerns, small business concerns owned and 
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controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, 
and small business concerns owned and con-
trolled by women.’’. 
SEC. 4. SENIOR EXECUTIVES. 
(a) TRAINING.—Programs established for the develop-
ment of senior executives under section 3396(a) of title 5, 
United States Code, shall include training with respect to 
Federal procurement requirements, including contracting 
requirements under the Small Business Act (15 U.S.C. 631 
et seq.). 
(b) SABBATICALS.—If a Federal agency does not 
achieve, with respect to a fiscal year, a goal established by 
the head of such agency under section 15(g)(2)(A) of the 
Small Business Act (15 U.S.C. 644(g)(2)(A)), a senior exec-
utive within that agency may not be granted, during the 
succeeding fiscal year, a sabbatical under section 3396(c) 
of title 5, United States Code. 
(c) INCENTIVE AWARDS.—If a Federal agency does not 
achieve, with respect to a fiscal year, a goal established by 
the head of such agency under section 15(g)(2)(A) of the 
Small Business Act (15 U.S.C. 644(g)(2)(A)), a senior exec-
utive within that agency may not receive, during the suc-
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ceeding fiscal year, any incentive award under subchapter 
I of chapter 45 of title 5, United States Code. 
(d) SENIOR EXECUTIVE DEFINED.—In this section, the 
term ‘‘senior executive’’ has the meaning given that term 
in section 3132(a) of title 5, United States Code. 
SEC. 5. SENSE OF CONGRESS. 
It is the sense of Congress that the contracting provi-
sions of the Small Business Act shall apply to the leasing 
of buildings and office space by the United States, and shall 
not apply to any leasing transaction between private par-
ties. 
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Union Calendar No. 523 
112TH CONGRESS 
2D SESSION 
H. R. 3850 
[Report No. 112–720, Part I] 
A BILL 
To amend the Small Business Act with respect to 
goals for procurement contracts awarded to small 
business concerns, and for other purposes. 
DECEMBER 21, 2012 
Reported from the Committee on Small Business with an 
amendment 
DECEMBER 21, 2012 
The Committee on Oversight and Government Reform 
discharged; committed to the Committee of the Whole 
House on the State of the Union and ordered to be 
printed 
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