established by the head of each agency shall be appor-
tioned within the agency to a contracting office or offices 
(as that term is defined in section 2.101 of title 48, Code 
of Federal Regulations on January 1, 2009) that reports 
to a career appointee in the Senior Executive Service.’’. 
(b) SENIOR EXECUTIVE SERVICE.— 
(1) PURPOSES.—Section 3131 of title 5, United 
States Code, is amended by adding at the end the 
following: 
‘‘(15) ensure that the Government achieves the 
small business procurement goals set forth in section 
15 of the Small Business Act (15 U.S.C. 644).’’. 
(2) TRAINING.—Section 3396(a) of title 5, 
United States Code, is amended by adding at the 
end the following: ‘‘The training provided to senior 
executives shall include federal procurement policy, 
including the procurement provisions of the Small 
Business Act.’’. 
(3) LIMITATION
ON
SABBATICALS.—Section 
3396(c)(2) of title 5, United States Code— 
(A) by striking the ‘‘and’’ at the end semi- 
colon at the end of subparagraph (B)(iii); 
(B) by striking the period at the end of 
subparagraph (C), and adding ‘‘; or’’; and 
(C) by adding at the end the following: 
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‘‘(D) who oversees a contracting office that 
did not meet its small business procurement 
goals established annually in accordance with 
the procedures of section 15(g)(2) of the Small 
Business Act (15 U.S.C. 644(g)(2)).’’. 
(4) LIMITATION ON INCENTIVE AWARDS.—An 
employee in the Senior Executive Service shall not 
be eligible for any incentive award specified in sub-
chapter I, chapter 45 of title 5, United States Code, 
if the contracting office which reports to that mem-
ber of the Senior Executive Service fails to meet the 
procurement goals established annually in accord-
ance with the procedures of section 15(g)(2) of the 
Small Business Act (15 U.S.C. 644(g)(2)). Any 
member of the Senior Executive Service, whether ca-
reer or non-career, to whom that member of the 
Senior Executive Service reports also shall not be el-
igible for any incentive award specified in subchapter 
I, chapter 45 of title 5, United States Code. 
SEC. 104. REPORTING REQUIREMENTS. 
Section 15(h) of the Small Business Act (15 U.S.C. 
644(h)) is amended by adding the following: 
‘‘(4) By November 1 of each year, the head of 
each Federal agency shall submit to Congress a re-
port specifying the percentage of contracts awarded 
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by that agency for the immediate preceding fiscal 
year that were awarded to small business concerns. 
If the percentage is less than the goal established by 
the head of the agency pursuant to this section, the 
head of the agency shall, in the report, explain why 
the agency did not reach the goal and what will be 
done to ensure that the goal for the following fiscal 
year will be achieved.’’. 
TITLE II—CONTRACT BUNDLING 
SEC. 201. DEFINITIONS OF BUNDLING OF CONTRACT RE-
QUIREMENTS. 
Section 3(o) of the Small Business Act (15 U.S.C. 
632(o)) is amended to read as follows: 
‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE-
QUIREMENTS AND RELATED TERMS.—For purposes of 
this Act: 
‘‘(1) BUNDLED CONTRACT.— 
‘‘(A) IN
GENERAL.—The term ‘bundled 
contract’ means a contract or order that is en-
tered into to meet procurement requirements 
that are consolidated in a bundling of contract 
requirements, without regard to its designation 
by the procuring agency or whether a study of 
the effects of the solicitation on civilian or mili-
tary personnel has been made. 
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‘‘(B) EXCEPTIONS.—The term does not in-
clude— 
‘‘(i) a contract or order with an aggre-
gate dollar value below the dollar threshold 
specified in paragraph (4); or 
‘‘(ii) a contract or order that is en-
tered into to meet procurement require-
ments, all of which are exempted require-
ments under paragraph (5). 
‘‘(2) 
BUNDLING
OF
CONTRACT
REQUIRE-
MENTS.— 
‘‘(A) IN GENERAL.—The term ‘bundling of 
contract requirements’ means the use of any 
bundling methodology to satisfy 2 or more pro-
curement requirements for new or existing 
goods or services, including any construction 
services, that is likely to be unsuitable for 
award to a small business concern due to— 
‘‘(i) the diversity, size or specialized 
nature of the elements of the performance 
specified; 
‘‘(ii) the aggregate dollar value of the 
anticipated award; 
‘‘(iii) the geographical dispersion of 
the contract or order performance; or 
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‘‘(iv) any combination of the factors 
described in clauses (i), (ii), or (iii). 
‘‘(B) EXCEPTIONS.—The term does not in-
clude— 
‘‘(i) the use of a bundling method-
ology for an anticipated award with an ag-
gregate dollar value below the threshold 
specified in paragraph (4); or 
‘‘(ii) the use of a bundling method-
ology to meet procurement requirements, 
all of which are exempted under paragraph 
(5). 
‘‘(3) BUNDLING
METHODOLOGY.—The term 
‘bundling methodology’ means— 
‘‘(A) a solicitation to obtain offers for a 
single contract or order, or a multiple award 
contract or order; 
‘‘(B) a solicitation of offers for the 
issuance of a task or a delivery order under an 
existing single or multiple award contract or 
order; or 
‘‘(C) the creation of any new procurement 
requirements that permits a consolidation of 
contract or order requirements. 
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‘‘(4) DOLLAR THRESHOLD.—The term ‘dollar 
threshold’ means— 
‘‘(A) $65,000,000 if solely for construction 
services; and 
‘‘(B) $1,500,000 in all other cases. 
‘‘(5) EXEMPTED
REQUIREMENTS.—The term 
‘exempted requirement’ means one or more of the 
following: 
‘‘(A) A procurement requirement solely for 
items that are not commercial items (as the 
term ‘commercial item’ is defined in section 
4(12) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 403(12)) but this subpara-
graph shall not apply to any procurement re-
quirement for a contract for goods or services 
provided by a business classified in sector 23 of 
the North American Industrial Classification 
System. 
‘‘(B) A procurement requirement with re-
spect to which a determination that it is unsuit-
able for award to a small business concern pre-
viously been made by the agency. However, the 
Administrator shall have authority to review 
and reverse such a determination for purposes 
of this paragraph and, if the Administrator 
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does reverse that determination, the term ‘ex-
empted requirement’ shall not apply to that 
procurement requirement. 
‘‘(6) PROCUREMENT REQUIREMENT.—The term 
‘procurement requirement’ means a determination 
by an agency that a specified good or service is 
needed to satisfy the mission of the agency.’’. 
SEC. 202. JUSTIFICATION. 
(a) STATEMENT OF BUNDLED CONTRACT REQUIRE-
MENTS.—Section 15(a) of the Small Business Act (15 
U.S.C. 644(a)) is amended— 
(1) by striking ‘‘is in quantity or estimated dol-
lar value the magnitude of which renders small busi-
ness prime contract participation unlikely’’ and in-
serting ‘‘would now be combined with other require-
ments for goods and services’’; 
(2) by striking ‘‘(2) why delivery schedules’’ 
and inserting ‘‘(2) the names, addresses and size of 
the incumbent contract holders, if applicable; (3) a 
description of the industries that might be interested 
in bidding on the contract requirements; (4) the 
number of small businesses listed in the industry 
categories that could be excluded from future bid-
ding if the contract is combined or packaged, includ-
ing any small business bidders that had bid on pre-
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vious procurement requirements that are included in 
the bundling of contract requirements; (5) why deliv-
ery schedules’’; 
(3) by striking ‘‘(3) why the proposed acquisi-
tion’’ and inserting ‘‘(6) why the proposed acquisi-
tion’’; 
(4) by striking ‘‘(4) why construction’’ and in-
serting ‘‘(7) why construction’’; 
(5) by striking ‘‘(5) why the agency’’ and in-
serting ‘‘(8) why the agency’’; 
(6) by striking ‘‘justified’’ and inserting ‘‘justi-
fied. The statement also shall set forth the proposed 
procurement strategy required by subsection (e) and, 
if applicable, the specifications required by sub-
section (e)(3). Concurrently, the statement shall be 
made available to the public, including through dis-
semination in the Federal contracting opportunities 
database.’’; and 
(7) by inserting after ‘‘prime contracting oppor-
tunities.’’ the following: ‘‘If no notification of the 
procurement and accompanying statement is re-
ceived, but the Administrator determines that there 
is cause to believe the contract combines require-
ments or a contract (single or multiple award) or 
task or delivery order for construction services or in-
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cludes unjustified bundling, then the Administrator 
can demand that such a statement of work goods or 
services be completed by the procurement activity 
and sent to the Procurement Center Representative 
and the solicitation process postponed for at least 10 
days but no more than 30 days to allow the Admin-
istrator to review the statement and make rec-
ommendations as described in this section before 
procurement is continued.’’. 
(b) SUBSTANTIAL MEASURABLE BENEFITS.—Section 
15(e) of the Small Business Act (15 U.S.C. 644(e)) is 
amended by adding at the end of subparagraph (2)(C), 
the following: ‘‘Cost savings shall not include any reduc-
tion in the in the use of military interdepartmental pur-
chase requests or any similar transfer funds among federal 
agencies for the use of a contract issued by another federal 
agency.’’. 
SEC. 203. APPEALS. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended— 
(1) by striking ‘‘If a proposed procurement in-
cludes in its statement’’ and inserting ‘‘If a proposed 
procurement would adversely affect one or more 
small business concerns, including, but not limited 
to, the potential loss of an existing contract, or if a 
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proposed procurement includes in its statement’’; 
and 
(2) by inserting before ‘‘Whenever the Adminis-
trator and the contracting procurement agency fail 
to agree,’’ the following: ‘‘If a small business con-
cern would be adversely affected, directly or indi-
rectly, by the procurement as proposed, and that 
small business concern or a trade association of 
which that small business concern is a member so 
requests, the Administrator may, take action to fur-
ther the interests of the small business.’’. 
SEC. 204. THIRD-PARTY REVIEW. 
Section 8(d) of the Contract Disputes Act of 1978 
(41 U.S.C. 607(d)) is amended— 
(1) by striking ‘‘(d) The Armed Services 
Board’’ and inserting ‘‘(d)(1) The Armed Services 
Board’’; and 
(2) by inserting at the end the following: 
‘‘(2) CONTRACT BUNDLING.— 
‘‘(A) IN GENERAL.—Whenever the head of a 
contracting agency makes a decision in accordance 
with section 15(a) of the Small Business Act con-
cerning the Administrator of the Small Business Ad-
ministration’s challenge to a bundling of contract re-
quirements, the Administrator, within ten days after 
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such decision may file a challenge with the appro-
priate agency board of contract appeals. 
‘‘(B) PROCEDURE.—The board shall provide 
the Administrator and the head of the contracting 
agency the opportunity to provide their views on the 
disputed contract. No oral testimony or oral argu-
ment shall be permitted. The board shall render its 
decision within thirty days after the appeal has been 
filed. The decision of the board shall be final.’’. 
TITLE III— SMALL BUSINESS 
SUBCONTRACTING 
SEC. 
301. 
GOOD 
FAITH 
COMPLIANCE 
WITH 
SUBCON-
TRACTING PLANS. 
Section 8(d)(10) of the Small Business Act (15 
U.S.C. 637(d)(10)) is amended by— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (B); 
(2) by striking the period at the end of sub-
paragraph (C), and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(D) Not later than 180 days after enact-
ment of this Act, the Administrator shall, after 
the opportunity for notice and comment, pro-
mulgate regulations governing the Administra-
tor’s review of subcontracting plans including 
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