IIB 
110TH CONGRESS 
1ST SESSION H. R. 3867 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 1, 2007 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
AN ACT 
To update and expand the procurement programs of the 
Small Business Administration, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Contracting Program Improvements 
Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—ENSURING GOVERNMENT CONTRACT OPPORTUNITIES 
FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
BY SERVICE-DISABLED VETERANS 
Sec. 101. Expanding procurement opportunities. 
Sec. 102. Penalties for misrepresentation. 
Sec. 103. Implementation of Executive Order No. 13360. 
Sec. 104. Priority for severely disabled veterans. 
TITLE II—PROTECTING TAXPAYERS AND ENSURING PROGRAM 
CONSISTENCY 
Sec. 201. Requiring business integrity of small business concerns. 
Sec. 202. Establishment of goals. 
Sec. 203. Small business concern subcontracting policy. 
Sec. 204. Increased size of available contracts. 
Sec. 205. Expanding protest authorization. 
Sec. 206. Prohibition on contract awards to contractors in violation of immigra-
tion laws. 
TITLE III—EXPANDING OPPORTUNITIES FOR WOMEN 
ENTREPRENEURS 
Sec. 301. Implement the women’s procurement program. 
TITLE IV—STRENGTHENING COMMUNITY DEVELOPMENT 
Sec. 401. On-site verification. 
Sec. 402. Limitation on construction contracts. 
Sec. 403. Study on effectiveness of HUBZone program in reaching rural areas. 
TITLE V—MODERNIZING THE 8(a) PROGRAM 
Sec. 501. Modernizing the section 8(a) program net worth limitations. 
Sec. 502. Extension of the section 8(a) program term. 
Sec. 503. Report on implementation. 
Sec. 504. Assistance study. 
Sec. 505. Examination of list of groups the members of which are presumed to 
be socially disadvantaged for purposes of small disadvantaged 
business program. 
TITLE VI—OTHER MATTERS 
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Sec. 601. Affiliation for certain franchises. 
Sec. 602. Sense of the House of Representatives on acquisitions conducted 
under the General Services Administration’s Federal Supply 
Schedule. 
Sec. 603. Study on frivolous protests. 
Sec. 604. Small Business Administration Liaison. 
Sec. 605. Prohibition on business-class or first-class airline travel. 
TITLE 
I—ENSURING 
GOVERN-
MENT CONTRACT OPPORTU-
NITIES FOR SMALL BUSINESS 
CONCERNS OWNED AND CON-
TROLLED 
BY 
SERVICE-DIS-
ABLED VETERANS 
SEC. 101. EXPANDING PROCUREMENT OPPORTUNITIES. 
(a) SERVICE-DISABLED VETERANS.—Section 36(a) 
of the Small Business Act (15 U.S.C. 657f(a)) is amend-
ed— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘may’’ and inserting ‘‘shall’’; and 
(2) in paragraph (1), by striking ‘‘and the con-
tracting officer’’ and all that follows through ‘‘con-
tracting opportunity’’. 
(b) HUBZONE.—Section 31(b)(2)(B) of such Act 
(15 U.S.C. 657a(b)(2)(B)) is amended by striking ‘‘shall’’ 
and inserting ‘‘may’’. 
SEC. 102. PENALTIES FOR MISREPRESENTATION. 
Section 16(d)(1) of the Small Business Act (15 
U.S.C. 645(d)(1)) is amended by inserting ‘‘a ‘small busi-
ness concern owned and controlled by service-disabled vet-
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erans’,’’ before ‘‘or a ‘small business concern owned and 
controlled by women’ ’’. 
SEC. 103. IMPLEMENTATION OF EXECUTIVE ORDER NO. 
13360. 
Section 36 of the Small Business Act (15 U.S.C. 
657f) is amended by adding at the end the following new 
subsection: 
‘‘(f) IMPLEMENTATION OF EXECUTIVE ORDER NO. 
13360.—The Administrator shall— 
‘‘(1) provide small business concerns owned and 
controlled by service-disabled veterans with informa-
tion and assistance concerning participation in Fed-
eral contracting; 
‘‘(2) advise and assist other agencies in their 
strategies to expand procurement opportunities for 
such concerns; and 
‘‘(3) make training assistance on Federal con-
tract law, procedures, and practices available to such 
concerns.’’. 
SEC. 104. PRIORITY FOR SEVERELY DISABLED VETERANS. 
In developing regulations to implement section 101, 
the Administrator shall give a priority to those certified 
service-disabled veterans that are severely disabled. 
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TITLE 
II—PROTECTING 
TAX-
PAYERS AND ENSURING PRO-
GRAM CONSISTENCY 
SEC. 201. REQUIRING BUSINESS INTEGRITY OF SMALL 
BUSINESS CONCERNS. 
Section 8 of the Small Business Act (15 U.S.C. 637) 
is amended by adding at the end the following new sub-
section: 
‘‘(o) REQUIREMENT OF BUSINESS INTEGRITY.—No 
small business concern may receive any benefit under sec-
tion 8(a), 8(m), 31(b)(2)(A), 31(b)(2)(B), 36(a), or 36(b) 
unless the Administrator first performs a background 
check on the owners and officers of such small business 
concern and determines that the owners and officers do 
not lack business integrity. For purposes of such a deter-
mination, previous criminal convictions will create a pre-
sumption of a lack of business integrity.’’. 
SEC. 202. ESTABLISHMENT OF GOALS. 
(a) 
ESTABLISHMENT
OF
GOVERNMENT-WIDE 
GOALS.—Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)) is amended by striking the first sen-
tence and inserting ‘‘The President shall annually estab-
lish Government-wide goals for procurement contracts 
awarded to small business concerns, small business con-
cerns owned and controlled by service-disabled veterans, 
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SEC. 206. PROHIBITION ON CONTRACT AWARDS TO CON-
TRACTORS IN VIOLATION OF IMMIGRATION 
LAWS. 
Any employer found, based on a determination by the 
Secretary of Homeland Security or the Attorney General 
to have engaged in a pattern or practice of hiring, recruit-
ing or referring for a fee, for employment in the United 
States an alien knowing the person is an unauthorized 
alien shall be subject to debarment from the receipt of fu-
ture Federal contracts under this Act. 
TITLE III—EXPANDING OPPOR-
TUNITIES FOR WOMEN EN-
TREPRENEURS 
SEC. 301. IMPLEMENT THE WOMEN’S PROCUREMENT PRO-
GRAM. 
Subsection (m) of section 8 of the Small Business Act 
(15 U.S.C. 637(m)) is amended— 
(1) by striking paragraphs (1) through (4) and 
inserting the following: 
‘‘(1) DEFINITION.—In this subsection, the term 
‘small business concern owned and controlled by 
women’ has the meaning given such term in section 
3(n), except that ownership shall be determined 
without regard to any community property law. 
‘‘(2) AUTHORITY TO RESTRICT COMPETITION.— 
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‘‘(A) IN
GENERAL.—In accordance with 
this subsection, a contracting officer may re-
strict competition for any contract for the pro-
curement of goods or services by the Federal 
Government to small business concerns owned 
and controlled by women, if— 
‘‘(i) each of the concerns is not less 
than 51 percent owned by 1 or more 
women who are economically disadvan-
taged (and such ownership is determined 
without regard to any community property 
law); 
‘‘(ii) the contracting officer has a rea-
sonable expectation that 2 or more small 
business concerns owned and controlled by 
women will submit offers for the contract; 
‘‘(iii) the contract is for the procure-
ment of goods or services with respect to 
an industry identified pursuant to para-
graph (4); 
‘‘(iv) in the estimation of the con-
tracting officer, the contract award can be 
made at a fair and reasonable price; and 
‘‘(v) each concern is certified in a 
manner described in subparagraph (B). 
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‘‘(B) ACCEPTANCE
OF
CERTIFICATION.— 
For purposes of subparagraph (A)(v), a con-
tracting officer is required to accept a small 
business concern’s certification as a small busi-
ness concern owned and controlled by women 
when such certification is made by— 
‘‘(i) a Federal agency or a State or 
local government; 
‘‘(ii) a national certifying entity ap-
proved by the Administrator; or 
‘‘(iii) the small business concern, 
when such concern certifies to the con-
tracting officer that it is a small business 
concern owned and controlled by women 
and provides adequate documentation in 
accordance with standards established by 
the Administrator to support such certifi-
cation. 
‘‘(3) WAIVER.—With respect to a small busi-
ness concern owned and controlled by women, the 
Administrator may waive paragraph (2)(A)(i) if— 
‘‘(A) such concern is in an industry identi-
fied pursuant to paragraph (4); and 
‘‘(B) the Administrator determines that 
such concern is in an industry in which small 
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business concerns owned and controlled by 
women are substantially under-represented in 
Federal contracting. 
‘‘(4) IDENTIFICATION OF INDUSTRIES.— 
‘‘(A) IN GENERAL.—Not less often than 
every five years, the Administrator shall con-
duct a study to identify, for purposes of para-
graphs (2)(A)(iii) and (3)(A), industries in 
which small business concerns owned and con-
trolled by women are under-represented in Fed-
eral contracting. The parameters for the study 
shall be as follows: 
‘‘(i) For purposes of this paragraph, 
the Administrator shall identify an indus-
try if, and only if, the share of Federal 
contracts awarded to small business con-
cerns owned and controlled by women in 
such industry is small relative to the prev-
alence of business concerns owned and con-
trolled by women in the pool of business 
concerns in such industry that have at 
least one employee. 
‘‘(ii) The study shall measure utiliza-
tion and availability by— 
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‘‘(I) using the two best available 
data sources; 
‘‘(II) including only business con-
cerns that have at least one employee; 
and 
‘‘(III) measuring only Federal 
contracts awarded for amounts over 
$25,000. 
‘‘(iii) The study shall include four sets 
of disparity measurement tables to com-
pute disparity ratios. The four sets are— 
‘‘(I) all business concerns in the 
United States relative to the number 
of Federal contracts awarded to small 
business concerns owned and con-
trolled by women; 
‘‘(II) small business concerns 
owned and controlled by women that 
have demonstrated an interest in or 
that have secured Federal contracts 
relative to the number of Federal con-
tracts awarded to small business con-
cerns owned and controlled by women; 
‘‘(III) all business concerns in 
the United States relative to the dol-
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lar amounts of Federal contracts 
awarded to small business concerns 
owned and controlled by women; and 
‘‘(IV) small business concerns 
owned and controlled by women that 
have demonstrated an interest in or 
that have secured government con-
tracts relative to the dollar amounts 
of Federal contracts awarded. 
‘‘(B) UNDERREPRESENTED INDUSTRIES.— 
Until such time as the Administrator completes 
the identification of industries required by sub-
paragraph (A), the following industries, as iden-
tified by their 2-Digit North American Industry 
Classification System Code, are deemed under-
represented by women in Federal contracting: 
11 (Forestry), 21 (Mining), 22 (Utilities), 23 
(Construction), 31 (Manufacturing), 32 (Manu-
facturing), 33 (Manufacturing), 42 (Wholesale 
Trade), 44 (Retail Trade), 45 (Retail Trade), 
48 (Transportation), 49 (Transportation), 51 
(Information), 52 (Finance and Insurance), 53 
(Real Estate and Rental and Leasing), 54 (Pro-
fessional, Scientific, and Technical Services), 56 
(Administrative and Support, Waste Manage-
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