H. R. 4310—449 
‘‘(A) by the Administrator, after reviewing a determina-
tion by the applicable contracting officer that no small 
business manufacturer or processor can reasonably be 
expected to offer a product meeting the specifications 
(including period for performance) required by the contract; 
or 
‘‘(B) by the Administrator for a product (or class of 
products), after determining that no small business manu-
facturer or processor is available to participate in the Fed-
eral procurement market. 
‘‘(b) 
SIMILARLY
SITUATED
ENTITIES.—Contract 
amounts 
expended by a covered small business concern on a subcontractor 
that is a similarly situated entity shall not be considered subcon-
tracted for purposes of determining whether the covered small 
business concern has violated a requirement established under sub-
section (a) or (d). 
‘‘(c) MODIFICATIONS OF PERCENTAGES.—The Administrator may 
change, by rule (after providing notice and an opportunity for public 
comment), a percentage specified in paragraphs (1) through (4) 
of subsection (a) if the Administrator determines that such change 
is necessary to reflect conventional industry practices among busi-
ness concerns that are below the numerical size standard for 
businesses in that industry category. 
‘‘(d) OTHER CONTRACTS.— 
‘‘(1) IN GENERAL.—With respect to a category of contracts 
to which a requirement under subsection (a) does not apply, 
the Administrator is authorized to establish, by rule (after 
providing notice and an opportunity for public comment), a 
requirement that a covered small business concern may not 
expend on subcontractors more than a specified percentage 
of the amount paid to the concern under a contract in that 
category. 
‘‘(2) UNIFORMITY.—A requirement established under para-
graph (1) shall apply to all covered small business concerns. 
‘‘(3) CONSTRUCTION
PROJECTS.—The Administrator shall 
establish, through public rulemaking, requirements similar to 
those specified in paragraph (1) to be applicable to contracts 
for general and specialty construction and to contracts for any 
other industry category not otherwise subject to the require-
ments of such paragraph. The percentage applicable to any 
such requirement shall be determined in accordance with para-
graph (1). 
‘‘(e) DEFINITIONS.—In this section, the following definitions 
apply: 
‘‘(1) COVERED SMALL BUSINESS CONCERN.—The term ‘cov-
ered small business concern’ means a business concern that— 
‘‘(A) with respect to a contract awarded under section 
8(a), is a small business concern eligible to receive contracts 
under that section; 
‘‘(B) with respect to a contract awarded under section 
8(m)— 
‘‘(i) is a small business concern owned and con-
trolled by women (as defined in that section); or 
‘‘(ii) is a small business concern owned and con-
trolled by women (as defined in that section) that 
is not less than 51 percent owned by 1 or more women
H. R. 4310—450 
who are economically disadvantaged (and such owner-
ship is determined without regard to any community 
property law); 
‘‘(C) with respect to a contract awarded under section 
15(a), is a small business concern; 
‘‘(D) with respect to a contract awarded under section 
31, is a qualified HUBZone small business concern; or 
‘‘(E) with respect to a contract awarded under section 
36, is a small business concern owned and controlled by 
service-disabled veterans. 
‘‘(2) SIMILARLY SITUATED ENTITY.—The term ‘similarly situ-
ated entity’ means a subcontractor that— 
‘‘(A) if a subcontractor for a small business concern, 
is a small business concern; 
‘‘(B) if a subcontractor for a small business concern 
eligible to receive contracts under section 8(a), is such 
a concern; 
‘‘(C) if a subcontractor for a small business concern 
owned and controlled by women (as defined in section 
8(m)), is such a concern; 
‘‘(D) if a subcontractor for a small business concern 
owned and controlled by women (as defined in section 
8(m)) that is not less than 51 percent owned by 1 or 
more women who are economically disadvantaged (and such 
ownership is determined without regard to any community 
property law), is such a concern; 
‘‘(E) if a subcontractor for a qualified HUBZone small 
business concern, is such a concern; or 
‘‘(F) if a subcontractor for a small business concern 
owned and controlled by service-disabled veterans, is such 
a concern.’’. 
SEC. 1652. PENALTIES. 
Section 16 of the Small Business Act (15 U.S.C. 645) is amended 
by adding at the end the following: 
‘‘(g) SUBCONTRACTING LIMITATIONS.— 
‘‘(1) IN GENERAL.—Whoever violates a requirement estab-
lished under section 46 shall be subject to the penalties pre-
scribed in subsection (d), except that, for an entity that exceeded 
a limitation on subcontracting under such section, the fine 
described in subsection (d)(2)(A) shall be treated as the greater 
of— 
‘‘(A) $500,000; or 
‘‘(B) the dollar amount expended, in excess of permitted 
levels, by the entity on subcontractors. 
‘‘(2) MONITORING.—Not later than 1 year after the date 
of enactment of this subsection, the Administrator shall take 
such actions as are necessary to ensure that an existing Federal 
subcontracting reporting system is modified to notify the 
Administrator, the appropriate Director of the Office of Small 
and Disadvantaged Business Utilization, and the appropriate 
contracting officer if a requirement established under section 
46 is violated.’’. 
SEC. 1653. SUBCONTRACTING PLANS. 
(a) AMENDMENTS TO SMALL BUSINESS ACT REQUIREMENTS.— 
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended 
by—
H. R. 4310—451 
(1) redesignating paragraphs (7), (8), (9), (10), (11), and 
(12) as paragraphs (8), (9), (10), (11), (12), and (13) respectively; 
(2) inserting after paragraph (6) the following: 
‘‘(7) The head of the contracting agency shall ensure that— 
‘‘(A) the agency collects and reports data on the extent 
to which contractors of the agency meet the goals and 
objectives set forth in subcontracting plans submitted 
pursuant to this subsection; and 
‘‘(B) the agency periodically reviews data collected and 
reported pursuant to subparagraph (A) for the purpose 
of ensuring that such contractors comply in good faith 
with the requirements of this subsection and subcon-
tracting plans submitted by the contractors pursuant to 
this subsection.’’; 
(3) in paragraph (9), as redesignated by paragraph (1) 
of this subsection, striking ‘‘shall be a material breach of such 
contract or subcontract’’ and inserting ‘‘shall be a material 
breach of such contract or subcontract and may be considered 
in any past performance evaluation of the contractor’’; 
(4) in subparagraph (C) of paragraph (11), as redesignated 
by paragraph (1) of this subsection, by striking ‘‘, either on 
a contract-by-contract basis, or in the case contractors’’ and 
inserting ‘‘as a supplement to evaluations performed by the 
contracting agency, either on a contract-by-contract basis or, 
in the case of contractors’’; and 
(5) by adding at the end the following: 
‘‘(14) An offeror for a covered contract that intends to 
identify a small business concern as a potential subcontractor 
in a bid or proposal for the contract, or in a plan submitted 
pursuant to this subsection in connection with the contract, 
shall notify the small business concern prior to making such 
identification. 
‘‘(15) The Administrator shall establish a reporting mecha-
nism that allows a subcontractor or potential subcontractor 
to report fraudulent activity or bad faith by a contractor with 
respect to a subcontracting plan submitted pursuant to this 
subsection.’’. 
(b) ADDITIONAL REQUIREMENTS.— 
(1) REPORTING REQUIREMENTS.—Not later than 1 year after 
the date of the enactment of this part, the Administrator of 
the Small Business Administration shall take such actions as 
are necessary to ensure that the electronic subcontracting 
reporting system established by the Administration to carry 
out the requirement of section 8(d)(6)(E) of the Small Business 
Act is modified to ensure that it can identify entities that 
fail to submit required reports. 
(2) ANNUAL REPORT.—Not later than March 31 of each 
year, the Administrator of the Small Business Administration 
shall provide the Committee on Small Business of the House 
of Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report, based on data avail-
able through existing systems, that sets forth, by agency (and 
to the extent practicable, by type of goal or plan), the following 
information: 
(A) the percentage of entities required to submit 
reports pursuant to section 8(d)(6) of the Small Business
H. R. 4310—452 
Act that filed such reports and that failed to file such 
reports during the prior fiscal year; 
(B) the percentage of entities filing such reports that 
met, exceeded, or failed to meet goals set forth in their 
subcontracting plans during the prior fiscal year; and 
(C) the aggregate value by which such entities 
exceeded, or failed to meet, their subcontracting goals 
during the prior fiscal year. 
SEC. 1654. NOTICES OF SUBCONTRACTING OPPORTUNITIES. 
Section 8(k)(1) of the Small Business Act (15 U.S.C. 637(k)(1)) 
is amended by striking ‘‘in the Commerce Business Daily’’ and 
inserting ‘‘on the appropriate Federal Web site (as determined 
by the Administrator)’’. 
SEC. 1655. PUBLICATION OF CERTAIN DOCUMENTS. 
Not later than 270 days after the date of the enactment of 
this part, the Director of the Office of Management and Budget 
shall publish procedures and methodologies to be used by Federal 
agencies with respect to decisions to convert a function being per-
formed by a small business concern to performance by a Federal 
employee, including procedures and methodologies for determining 
which contracts will be studied for potential conversion; procedures 
and methodologies by which a contract is evaluated as inherently 
governmental or as a critical agency function; and procedures and 
methodologies for estimating and comparing costs. Should a Federal 
agency develop any agency-specific methodologies for identifying 
critical agency functions or supplemental implementation guidance, 
such methodologies and guidance shall be published upon 
implementation. 
PART V—SMALL BUSINESS CONCERN SIZE 
STANDARDS 
SEC. 1661. SMALL BUSINESS CONCERN SIZE STANDARDS. 
Section 3 of the Small Business Act (15 U.S.C. 632) is 
amended— 
(1) by striking ‘‘SEC. 3.’’ and inserting the following: 
‘‘SEC. 3. DEFINITIONS.’’; 
and 
(2) in subsection (a)— 
(A) by striking the subsection enumerator and inserting 
the following: 
‘‘(a) SMALL BUSINESS CONCERNS.—’’; 
(B) in paragraph (1), by striking ‘‘(1) For the purposes’’ 
and inserting the following: 
‘‘(1) IN GENERAL.—For the purposes’’; 
(C) in paragraph (3), by striking ‘‘(3) When estab-
lishing’’ and inserting the following: 
‘‘(3) VARIATION BY INDUSTRY AND CONSIDERATION OF OTHER 
FACTORS.—When establishing’’; 
(D) by moving paragraph (5), including each subpara-
graph and clause therein, 2 ems to the right; and 
(E) by adding at the end the following: 
‘‘(6) PROPOSED RULEMAKING.—In conducting rulemaking to 
revise, modify or establish size standards pursuant to this
H. R. 4310—453 
section, the Administrator shall consider, and address, and 
make publicly available as part of the notice of proposed rule-
making and notice of final rule each of the following: 
‘‘(A) a detailed description of the industry for which 
the new size standard is proposed; 
‘‘(B) an analysis of the competitive environment for 
that industry; 
‘‘(C) the approach the Administrator used to develop 
the proposed standard including the source of all data 
used to develop the proposed rule making; and 
‘‘(D) the anticipated effect of the proposed rulemaking 
on the industry, including the number of concerns not 
currently considered small that would be considered small 
under the proposed rule making and the number of con-
cerns currently considered small that would be deemed 
other than small under the proposed rulemaking. 
‘‘(7) COMMON SIZE STANDARDS.—In carrying out this sub-
section, the Administrator may establish or approve a single 
size standard for a grouping of 4-digit North American Industry 
Classification System codes only if the Administrator makes 
publicly available, not later than the date on which such size 
standard is established or approved, a justification dem-
onstrating that such size standard is appropriate for each indi-
vidual industry classification included in the grouping. 
‘‘(8) NUMBER OF SIZE STANDARDS.—The Administrator shall 
not limit the number of size standards established pursuant 
to paragraph (2), and shall assign the appropriate size standard 
to each North American Industry Classification System Code.’’. 
PART VI—CONTRACT BUNDLING 
SEC. 1671. CONTRACT BUNDLING. 
(a) CONSTRUCTION CONTRACTS.—Section 44 of the Small Busi-
ness Act (15 U.S.C. 657q) is amended in subsection (a)(2) by striking 
‘‘or a multiple award contract to satisfy 2 or more requirements 
of the Federal agency for goods or services that have been provided 
to or performed for the Federal agency under 2 or more separate 
contracts lower in cost than the total cost of the contract for which 
the offers are solicited; and’’ and inserting the following: ‘‘or a 
multiple award contract— 
‘‘(A) to satisfy 2 or more requirements of the Federal 
agency for goods or services that have been provided to 
or performed for the Federal agency under 2 or more sepa-
rate contracts lower in cost than the total cost of the 
contract for which the offers are solicited; or 
‘‘(B) to satisfy requirements of the Federal agency for 
construction projects to be performed at 2 or more discrete 
sites; and’’. 
(b) CLARIFICATION OF CERTAIN REQUIREMENTS.—Section 44 of 
such Act is further amended in subsection (c)(1)(E), by striking 
‘‘certifies to the head of the Federal agency’’ and inserting ‘‘ensures’’. 
(c) REPEAL OF SUPERSEDED LAW AND CONFORMING CHANGE.— 
(1) CONSOLIDATION OF CONTRACT REQUIREMENTS: POLICY 
AND
RESTRICTIONS.—Section 2382 of title 10, United States 
Code is repealed. The table of sections for chapter 141 of 
such title is amended by striking the item relating to section 
2382.
H. R. 4310—454 
(2) CONSOLIDATION OF CONTRACT REQUIREMENTS; DEPART-
MENT OF DEFENSE.—Section 44 of the Small Business Act, as 
amended by subsections (a) and (b) of this section, is further 
amended in subsection (c) by striking paragraph (4). 
(d) COMPTROLLER GENERAL REVIEW.—Not later than 270 days 
after the date of the enactment of this subsection, the Comptroller 
General of the United States shall review data and information 
regarding consolidated contracts awarded by Federal agencies. The 
review shall include an assessment of— 
(1) the extent to which written determinations that the 
consolidation of contract requirements was necessary and justi-
fied meet the requirements of applicable provisions of law and 
regulation; 
(2) the amount of savings and benefits realized pursuant 
to such contracts, in comparison with— 
(A) the performance of similar requirements under pre-
vious contracts; and 
(B) the savings and benefits anticipated by the analysis 
required prior to the contract award pursuant to applicable 
provisions of law and regulation; 
(3) the extent to which the consolidation of contract require-
ments was consistent with the contracting agency’s small busi-
ness subcontracting plans; and 
(4) the adequacy of data collected pursuant to section 15 
of the Small Business Act relating to contract bundling. 
PART VII—INCREASED PENALTIES FOR FRAUD 
SEC. 1681. SAFE HARBOR FOR GOOD FAITH COMPLIANCE EFFORTS. 
(a) SMALL BUSINESS FRAUD.—Section 16(d) of the Small Busi-
ness Act (15 U.S.C. 645(d)) is amended by inserting after paragraph 
(2) the following: 
‘‘(3) LIMITATION ON LIABILITY.—This subsection shall not 
apply to any conduct in violation of subsection (a) if the defend-
ant acted in good faith reliance on a written advisory opinion 
from a Small Business Development Center (as defined in this 
Act), or an entity participating in the Procurement Technical 
Assistance Cooperative Agreement Program defined in chapter 
142 of title 10, United States Code; however nothing in this 
Act shall obligate either entity to provide such a letter nor 
shall the provision of such a letter in any way render the 
providing entity liable to the business concern should the 
Administrator later determine that the concern is not a small 
business concern. Upon issuance of an advisory opinion under 
this paragraph, the entity issuing the advisory opinion shall 
remit a copy of the opinion to the General Counsel of the 
Administration, who may reject the advisory opinion. If the 
General Counsel of the Administration rejects the advisory 
opinion, the Administration shall notify the entity issuing the 
advisory opinion and the recipient of the opinion, after which 
time the business concern may not rely upon the opinion.’’. 
(b) REGULATIONS.—Not later than 270 days after the date of 
enactment of this part, the Administrator of the Small Business 
Administration shall issue rules defining what constitutes an ade-
quate advisory opinion for purposes of section 16(d)(3) of the Small 
Business Act.
H. R. 4310—455 
(c) SMALL BUSINESS COMPLIANCE GUIDE.—Not later than 270 
days after the date of enactment of this part, the Administrator 
of the Small Business Administration shall issue (pursuant to sec-
tion 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996) a compliance guide to assist business concerns in 
accurately determining their status as a small business concern. 
SEC. 1682. REQUIREMENT THAT FRAUDULENT BUSINESSES BE SUS-
PENDED OR DEBARRED. 
(a) IN GENERAL.—Section 16(d)(2)(C) of the Small Business 
Act (15 U.S.C. 645(d)(2)(C)) is amended by striking ‘‘on the basis 
that such misrepresentation indicates a lack of business integrity 
that seriously and directly affects the present responsibility to 
perform any contract awarded by the Federal Government or a 
subcontract under such a contract’’. 
(b) DEVELOPMENT AND PROMULGATION OF GUIDANCE.—Not later 
than 270 days after the date of enactment of this part, the Adminis-
trator of the Small Business Administration shall develop and 
promulgate guidance implementing this section. 
(c) PUBLICATION OF PROCEDURES REGARDING SUSPENSION AND 
DEBARMENT.—Not later than 270 days after the date of enactment 
of this part, the Administrator shall publish and maintain on the 
Administration’s Web site the current standard operating proce-
dures of the Administration for suspension and debarment, and 
the name and contact information for the individual designated 
by the Administrator as the senior individual responsible for 
suspension and debarment proceedings. 
SEC. 1683. ANNUAL REPORT ON SUSPENSIONS AND DEBARMENTS PRO-
POSED BY SMALL BUSINESS ADMINISTRATION. 
(a) REPORT REQUIREMENT.—The Administrator of the Small 
Business Administration shall submit each year to the Committee 
on Small Business and Entrepreneurship of the Senate, and the 
Committee on Small Business of the House of Representatives 
a report on the suspension and debarment actions taken by the 
Administrator during the year preceding the year of submission 
of the report. 
(b) MATTERS COVERED.—The report required by subsection (a) 
shall include the following information for the year covered by 
the report: 
(1) NUMBER.—The number of contractors proposed for 
suspension or debarment. 
(2) SOURCE.—The office within a Federal agency that origi-
nated each proposal for suspension or debarment. 
(3) REASONS.—The reason for each proposal for suspension 
or debarment. 
(4) RESULTS.—The result of each proposal for suspension 
or debarment, and the reason for such result. 
(5) REFERRALS.—The number of suspensions or debarments 
referred to the Inspector General of the Small Business 
Administration or another agency, or to the Attorney General 
(for purposes of this paragraph, the Administrator may redact 
identifying information on names of companies or other 
information in order to protect the integrity of any ongoing 
criminal or civil investigation).
H. R. 4310—456 
PART VIII—OFFICES OF SMALL AND 
DISADVANTAGED BUSINESS UNITS 
SEC. 1691. OFFICES OF SMALL AND DISADVANTAGED BUSINESS UTILI-
ZATION. 
(a) APPOINTMENT AND POSITION OF DIRECTOR.—Section 15(k)(2) 
of the Small Business Act (15 U.S.C. 644(k)(2)) is amended by 
striking ‘‘such agency,’’ and inserting ‘‘such agency to a position 
that is a Senior Executive Service position (as such term is defined 
under section 3132(a) of title 5, United States Code), except that, 
for any agency in which the positions of Chief Acquisition Officer 
and senior procurement executive (as such terms are defined under 
section 44(a) of this Act) are not Senior Executive Service positions, 
the Director of Small and Disadvantaged Business Utilization may 
be appointed to a position compensated at not less than the min-
imum rate of basic pay payable for grade GS–15 of the General 
Schedule under section 5332 of such title (including comparability 
payments under section 5304 of such title);’’. 
(b) PERFORMANCE APPRAISALS.—Section 15(k)(3) of such Act 
(15 U.S.C. 644(k)(3)) is amended— 
(1) by striking ‘‘be responsible only to, and report directly 
to, the head’’ and inserting ‘‘shall be responsible only to 
(including with respect to performance appraisals), and report 
directly and exclusively to, the head’’; and 
(2) by striking ‘‘be responsible only to, and report directly 
to, such Secretary’’ and inserting ‘‘be responsible only to 
(including with respect to performance appraisals), and report 
directly and exclusively to, such Secretary’’. 
(c) ADDITIONAL REQUIREMENTS.—Section 15(k) of such Act (15 
U.S.C. 644(k)) is amended by inserting after paragraph (10) the 
following: 
‘‘(11) shall review and advise such agency on any decision 
to convert an activity performed by a small business concern 
to an activity performed by a Federal employee; 
‘‘(12) shall provide to the Chief Acquisition Officer and 
senior procurement executive of such agency advice and com-
ments on acquisition strategies, market research, and justifica-
tions related to section 44 of this Act; 
‘‘(13) may provide training to small business concerns and 
contract specialists, except that such training may only be 
provided to the extent that the training does not interfere 
with the Director carrying out other responsibilities under this 
subsection; 
‘‘(14) shall receive unsolicited proposals and, when appro-
priate, forward such proposals to personnel of the activity 
responsible for reviewing such proposals; 
‘‘(15) shall carry out exclusively the duties enumerated 
in this Act, and shall, while the Director, not hold any other 
title, position, or responsibility, except as necessary to carry 
out responsibilities under this subsection; and 
‘‘(16) shall submit, each fiscal year, to the Committee on 
Small Business of the House of Representatives and the Com-
mittee on Small Business and Entrepreneurship of the Senate 
a report describing— 
‘‘(A) the training provided by the Director under para-
graph (13) in the most recently completed fiscal year;
H. R. 4310—457 
‘‘(B) the percentage of the budget of the Director used 
for such training in the most recently completed fiscal 
year; and 
‘‘(C) the percentage of the budget of the Director used 
for travel in the most recently completed fiscal year.’’. 
(d) REQUIREMENT
OF ACQUISITION EXPERIENCE
FOR OSDBU 
DIRECTOR.—Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)), as amended by this part, is further amended, in the matter 
preceding paragraph (1), by striking ‘‘who shall’’ and inserting the 
following: ‘‘, with experience serving in any combination of the 
following roles: program manager, deputy program manager, or 
assistant program manager for Federal acquisition program; chief 
engineer, systems engineer, assistant engineer, or product support 
manager for Federal acquisition program; Federal contracting 
officer; small business technical advisor; contracts administrator 
for Federal Government contracts; attorney specializing in Federal 
procurement law; small business liaison officer; officer or employee 
who managed Federal Government contracts for a small business; 
or individual whose primary responsibilities were for the functions 
and duties of section 8, 15 or 44 of this Act. Such officer or 
employee’’. 
(e) TECHNICAL AMENDMENTS.—Section 15(k) of such Act (15 
U.S.C. 644(k)), as amended, is further amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘be known’’ and inserting ‘‘shall be 
known’’; and 
(B) by striking ‘‘such agency,’’ and inserting ‘‘such 
agency;’’; 
(2) in paragraph (2) by striking ‘‘be appointed by’’ and 
inserting ‘‘shall be appointed by’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘director’’ and inserting ‘‘Director’’; and 
(B) by striking ‘‘Secretary’s designee,’’ and inserting 
‘‘Secretary’s designee;’’; 
(4) in paragraph (4)— 
(A) by striking ‘‘be responsible’’ and inserting ‘‘shall 
be responsible’’; and 
(B) by striking ‘‘such agency,’’ and inserting ‘‘such 
agency;’’; 
(5) in paragraph (5) by striking ‘‘identify proposed’’ and 
inserting ‘‘shall identify proposed’’; 
(6) in paragraph (6) by striking ‘‘assist small’’ and inserting 
‘‘shall assist small’’; 
(7) in paragraph (7)— 
(A) by striking ‘‘have supervisory’’ and inserting ‘‘shall 
have supervisory’’; and 
(B) by striking ‘‘this Act,’’ and inserting ‘‘this Act;’’; 
(8) in paragraph (8)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘assign a’’ and inserting ‘‘shall assign a’’; and 
(B) in subparagraph (A), by striking ‘‘the activity, and’’ 
and inserting ‘‘the activity; and’’; 
(9) in paragraph (9)— 
(A) by striking ‘‘cooperate, and’’ and inserting ‘‘shall 
cooperate, and’’; and 
(B) by striking ‘‘subsection, and’’ and inserting ‘‘sub-
section;’’; and
H. R. 4310—458 
(10) in paragraph (10)— 
(A) by striking ‘‘make recommendations’’ and inserting 
‘‘shall make recommendations’’; 
(B) by striking ‘‘subsection (a), or section’’ and inserting 
‘‘subsection (a), section’’; 
(C) by striking ‘‘Act or section 2323’’ and inserting 
‘‘Act, or section 2323’’; 
(D) by striking ‘‘Code. Such recommendations shall’’ 
and inserting ‘‘Code, which shall’’; and 
(E) by striking ‘‘contract file.’’ and inserting ‘‘contract 
file;’’. 
SEC. 1692. SMALL BUSINESS PROCUREMENT ADVISORY COUNCIL. 
(a) DUTIES.—Section 7104(b) of the Federal Acquisition Stream-
lining Act of 1994 (15 U.S.C. 644 note) is amended— 
(1) in paragraph (1) by striking ‘‘and’’ at the end; 
(2) in paragraph (2) by striking ‘‘authorities.’’ and inserting 
‘‘authorities;’’; and 
(3) by adding at the end the following: 
‘‘(3) to conduct reviews of each Office of Small and Dis-
advantaged Business Utilization established under section 15(k) 
of the Small Business Act (15 U.S.C. 644(k)) to determine 
the compliance of each Office with requirements under such 
section; 
‘‘(4) to identify best practices for maximizing small business 
utilization in Federal contracting that may be implemented 
by Federal agencies having procurement powers; and 
‘‘(5) to submit, annually, to the Committee on Small Busi-
ness of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate a report 
describing— 
‘‘(A) the comments submitted under paragraph (2) 
during the 1-year period ending on the date on which 
the report is submitted, including any outcomes related 
to the comments; 
‘‘(B) the results of reviews conducted under paragraph 
(3) during such 1-year period; and 
‘‘(C) best practices identified under paragraph (4) 
during such 1-year period.’’. 
(b) MEMBERSHIP.—Section 7104(c)(3) of such Act (15 U.S.C. 
644 note) is amended by striking ‘‘(established under section 15(k) 
of the Small Business Act (15 U.S.C. 644(k))’’. 
(c) CHAIRMAN.—Section 7104(d) of such Act (15 U.S.C. 644 
note) is amended by inserting after ‘‘Small Business Administration’’ 
the following: ‘‘(or the designee of the Administrator)’’. 
PART IX—OTHER MATTERS 
SEC. 1695. SURETY BONDS. 
(a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of the Small 
Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is 
amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 
(2) by striking ‘‘does not exceed’’ and all that follows 
through the period at the end, and inserting ‘‘does not exceed 
$6,500,000, as adjusted for inflation in accordance with section 
1908 of title 41, United States Code.’’; and
H. R. 4310—459 
(3) by adding at the end the following: 
‘‘(B) The Administrator may guarantee a surety under subpara-
graph (A) for a total work order or contract amount that does 
not exceed $10,000,000, if a contracting officer of a Federal agency 
certifies that such a guarantee is necessary.’’. 
(b) DENIAL OF LIABILITY.—Section 411 of the Small Business 
Investment Act of 1958 (15 U.S.C. 694b) is amended— 
(1) by striking subsection (e) and inserting the following: 
‘‘(e) REIMBURSEMENT OF SURETY; CONDITIONS.—Pursuant to any 
such guarantee or agreement, the Administration shall reimburse 
the surety, as provided in subsection (c) of this section, except 
that the Administration shall be relieved of liability (in whole 
or in part within the discretion of the Administration) if— 
‘‘(1) the surety obtained such guarantee or agreement, or 
applied for such reimbursement, by fraud or material misrepre-
sentation, 
‘‘(2) the total contract amount at the time of execution 
of the bond or bonds exceeds $6,500,000, 
‘‘(3) the surety has breached a material term or condition 
of such guarantee agreement, or 
‘‘(4) the surety has substantially violated the regulations 
promulgated by the Administration pursuant to subsection (d).’’; 
and 
(2) by inserting after subsection (i) the following: 
‘‘(j) For bonds made or executed with the prior approval of 
the Administration, the Administration shall not deny liability to 
a surety based upon material information that was provided as 
part of the guarantee application.’’. 
(c) SIZE STANDARDS.—Section 410 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 694a) is amended by inserting after 
paragraph (8) the following: 
‘‘(9) Notwithstanding any other provision of law or any rule, 
regulation, or order of the Administration, for purpose of sections 
410, 411, and 412 the term ‘small business concern’ means a busi-
ness concern that meets the size standard for the primary industry 
in which such business concern, and the affiliates of such business 
concern, is engaged, as determined by the Administrator in accord-
ance with the North American Industry Classification System.’’. 
SEC. 1696. CONFORMING AMENDMENTS; REPEAL OF REDUNDANT 
PROVISIONS; REGULATIONS. 
(a) TECHNICAL AMENDMENTS.—Section 15 of the Small Business 
Act (15 U.S.C. 644) is amended— 
(1) in the heading of subsection (p), to read as follows: 
‘‘ACCESS TO DATA.—’’; and 
(2) in the heading of subsection (q), to read as follows: 
‘‘REPORTS RELATED
TO PROCUREMENT CENTER REPRESENTA-
TIVES.—’’. 
(b) CONFORMING AMENDMENTS PERTAINING TO LIMITATIONS ON 
SUBCONTRACTING.— 
(1) HUBZONES.—Section 3(p)(5) of the Small Business Act 
(15 U.S.C. 632(p)(5)) is amended— 
(A) in subparagraph (A)(i) by striking subclause (III) 
and inserting the following: 
‘‘(III) with respect to any subcontract entered 
into by the small business concern pursuant to 
a contract awarded to the small business concern
H. R. 4310—460 
under section 31, the small business concern will 
ensure that the requirements of section 46 are 
satisfied; and’’; 
(B) by striking subparagraphs (B) and (C); and 
(C) by redesignating subparagraph (D) as subpara-
graph (B). 
(2) ENTITIES
ELIGIBLE
FOR
CONTRACTS
UNDER
SECTION 
8(a).—Section 8(a) of such Act (15 U.S.C. 637(a)) is amended 
by striking paragraph (14) and inserting the following: 
‘‘(14) LIMITATIONS ON SUBCONTRACTING.—A concern may 
not be awarded a contract under this subsection as a small 
business concern unless the concern agrees to satisfy the 
requirements of section 46.’’. 
(3) SMALL BUSINESS CONCERNS.—Section 15 of such Act 
(15 U.S.C. 644) is amended by striking subsection (o) and 
inserting the following: 
‘‘(o) LIMITATIONS ON SUBCONTRACTING.—A concern may not be 
awarded a contract under subsection (a) as a small business concern 
unless the concern agrees to satisfy the requirements of section 
46.’’. 
(c) REGULATIONS.—Not later than 180 days after the date of 
enactment of this part, the Administrator of the Small Business 
Administration shall issue guidance with respect to the changes 
made to the Small Business Act by the amendments in this subtitle, 
with opportunities for notice and comment. 
SEC. 1697. CONTRACTING WITH SMALL BUSINESS CONCERNS OWNED 
AND CONTROLLED BY WOMEN. 
(a) PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSI-
NESS CONCERNS.—Section 8(m)(2) of the Small Business Act (15 
U.S.C. 637(m)(2)) is amended— 
(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and (F) as subpara-
graphs (D) and (E), respectively. 
(b) STUDY AND REPORT ON REPRESENTATION OF WOMEN.—Sec-
tion 29 of the Small Business Act (15 U.S.C. 656) is amended 
by adding at the end the following: 
‘‘(o) STUDY
AND REPORT
ON REPRESENTATION
OF WOMEN.— 
‘‘(1) STUDY.—The Administrator shall periodically conduct 
a study to identify industries, as defined under the North 
American Industry Classification System, underrepresented by 
small business concerns owned and controlled by women. 
‘‘(2) REPORT.—Not later than 5 years after the date of 
enactment of this subsection, and every 5 years thereafter, 
the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives a 
report on the results of each study under paragraph (1) con-
ducted during the 5-year period ending on the date of the 
report.’’. 
SEC. 1698. SMALL BUSINESS HUBZONES. 
(a) DEFINITION.—In this section, the term ‘‘covered base closure 
area’’ means a base closure area that, on or before the date of 
enactment of this Act, was treated as a HUBZone for purposes 
of the Small Business Act (15 U.S.C. 631 et seq.) pursuant to 
section 152(a)(2) of the Small Business Reauthorization and Manu-
facturing Assistance Act of 2004 (15 U.S.C. 632 note).
H. R. 4310—461 
(b) TREATMENT AS HUBZONE.— 
(1) IN GENERAL.—Subject to paragraph (2), a covered base 
closure area shall be treated as a HUBZone for purposes of 
the Small Business Act (15 U.S.C. 631 et seq.) during the 
5-year period beginning on the date of enactment of this Act. 
(2) LIMITATION.—The total period of time that a covered 
base closure area is treated as a HUBZone for purposes of 
the Small Business Act (15 U.S.C. 631 et seq.) pursuant to 
this section and section 152(a)(2) of the Small Business 
Reauthorization and Manufacturing Assistance Act of 2004 (15 
U.S.C. 632 note) may not exceed 5 years. 
SEC. 1699. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORA-
TION. 
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 631 et 
seq.) is amended by striking section 33 (15 U.S.C. 657c). 
(b) CORPORATION.—On and after the date of enactment of this 
Act, the National Veterans Business Development Corporation and 
any successor thereto may not represent that the corporation is 
federally chartered or in any other manner authorized by the Fed-
eral Government. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) TITLE 10.—Section 1142(b)(13) of title 10, United States 
Code, is amended by striking ‘‘and the National Veterans Busi-
ness Development Corporation’’. 
(2) TITLE 38.—Section 3452(h) of title 38, United States 
Code, is amended by striking ‘‘any of the’’ and all that follows 
and inserting ‘‘any small business development center described 
in section 21 of the Small Business Act (15 U.S.C. 648), insofar 
as such center offers, sponsors, or cosponsors an entrepreneur-
ship course, as that term is defined in section 3675(c)(2).’’. 
(3) VETERANS
ENTREPRENEURSHIP
AND
SMALL
BUSINESS 
DEVELOPMENT ACT OF 1999.—Section 203(c)(5) of the Veterans 
Entrepreneurship and Small Business Development Act of 1999 
(15 U.S.C. 657b note) is amended by striking ‘‘In cooperation 
with the National Veterans Business Development Corporation, 
develop’’ and inserting ‘‘Develop’’. 
SEC. 1699a. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM. 
Section 1207(a)(5) of the Small Business Jobs Act of 2010 
(15 U.S.C. 649b note) is amended by inserting after ‘‘Guam,’’ the 
following: ‘‘the Commonwealth of the Northern Mariana Islands,’’. 
TITLE XVII—ENDING TRAFFICKING IN 
GOVERNMENT CONTRACTING 
Sec. 1701. Definitions. 
Sec. 1702. Contracting requirements. 
Sec. 1703. Compliance plan and certification requirement. 
Sec. 1704. Monitoring and investigation of trafficking in persons. 
Sec. 1705. Notification to inspectors general and cooperation with Government. 
Sec. 1706. Expansion of penalties for fraud in foreign labor contracting to include 
attempted fraud and work outside the United States. 
Sec. 1707. Improving Department of Defense accountability for reporting trafficking 
in persons claims and violations. 
Sec. 1708. Rules of construction; effective date. 
SEC. 1701. DEFINITIONS. 
In this title:
H. R. 4310—462 
(1) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has 
the meaning given the term in section 133 of title 41, United 
States Code. 
(2) SUBCONTRACTOR.—The term ‘‘subcontractor’’ means a 
recipient of a contract at any tier under a grant, contract, 
or cooperative agreement. 
(3) SUBGRANTEE.—The term ‘‘subgrantee’’ means a recipient 
of a grant at any tier under a grant or cooperative agreement. 
(4) UNITED
STATES.—The term ‘‘United States’’ has the 
meaning provided in section 103(12) of the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7102(12)). 
SEC. 1702. CONTRACTING REQUIREMENTS. 
Section 106(g) of the Trafficking Victims Protection Act of 2000 
(22 U.S.C. 7104(g)) is amended by striking ‘‘without penalty’’ and 
all that follows through the period at the end and inserting the 
following: ‘‘or take any of the other remedial actions authorized 
under section 1704(c) of the National Defense Authorization Act 
for Fiscal Year 2013, without penalty, if the grantee or any sub-
grantee, or the contractor or any subcontractor, engages in, or 
uses labor recruiters, brokers, or other agents who engage in— 
‘‘(i) severe forms of trafficking in persons; 
‘‘(ii) the procurement of a commercial sex act 
during the period of time that the grant, contract, 
or cooperative agreement is in effect; 
‘‘(iii) the use of forced labor in the performance 
of the grant, contract, or cooperative agreement; or 
‘‘(iv) acts that directly support or advance traf-
ficking in persons, including the following acts: 
‘‘(I) Destroying, concealing, removing, confis-
cating, or otherwise denying an employee access 
to that employee’s identity or immigration docu-
ments. 
‘‘(II) Failing to provide return transportation 
or pay for return transportation costs to an 
employee from a country outside the United States 
to the country from which the employee was 
recruited upon the end of employment if requested 
by the employee, unless— 
‘‘(aa) exempted from the requirement to 
provide or pay for such return transportation 
by the Federal department or agency providing 
or entering into the grant, contract, or coopera-
tive agreement; or 
‘‘(bb) the employee is a victim of human 
trafficking seeking victim services or legal 
redress in the country of employment or a 
witness in a human trafficking enforcement 
action. 
‘‘(III) Soliciting a person for the purpose of 
employment, or offering employment, by means 
of materially false or fraudulent pretenses, rep-
resentations, or promises regarding that employ-
ment. 
‘‘(IV) Charging recruited employees unreason-
able placement or recruitment fees, such as fees 
equal to or greater than the employee’s monthly