I 
118TH CONGRESS 
2D SESSION 
H. R. 9832 
To make improvements to Federal contracting practices for disadvantaged 
small businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 25, 2024 
Mr. IVEY (for himself, Mr. HORSFORD, and Mrs. BEATTY) introduced the fol-
lowing bill; which was referred to the Committee on Small Business, and 
in addition to the Committee on Oversight and Accountability, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To make improvements to Federal contracting practices for 
disadvantaged small businesses, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Create Opportunities and Networks for Talented, Ready, 
and Able Contractors To Succeed Act of 2024’’ or the 
‘‘CONTRACTS Act of 2024’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Database on contract awards to disadvantaged small businesses. 
Sec. 4. Outreach and recruitment to expand participation of disadvantaged 
small businesses in Federal contracting. 
Sec. 5. Determination of the date of commencement of participation in the 8(a) 
program. 
Sec. 6. Inclusion of concerns owned by HBCU business entities in definition of 
socially and economically disadvantaged small business concern. 
Sec. 7. Agency OSDBU technical assistance. 
Sec. 8. Federal disadvantaged small business task force. 
Sec. 9. Requirements relating to prompt payment, progress payments, and per-
formance-based payments. 
Sec. 10. Reports on subcontractor engagement. 
Sec. 11. Modifications to subcontracting plans to enhance opportunities for 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals. 
Sec. 12. Diversity and inclusion reporting requirements for covered contractors. 
Sec. 13. Chief Counsel for Advocacy report to Congress. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) 8(a) PROGRAM.—The term ‘‘8(a) Program’’ 
means the program described under section 8(a) of 
the Small Business Act (15 U.S.C. 637(a)). 
(2) ADMINISTRATION; ADMINISTRATOR.—The 
terms ‘‘Administration’’ and ‘‘Administrator’’ mean 
the Small Business Administration and the Adminis-
trator thereof, respectively. 
(3) AGENCY
OSDBU.—The term ‘‘Agency 
OSDBU’’ means the Office of Small and Disadvan-
taged Business Utilization (established pursuant to 
section 15(k) of the Small Business Act (15 U.S.C. 
644(k))) of a Federal agency. 
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(4) 
DEMOGRAPHIC
CLASSIFICATIONS.—The 
term ‘‘demographic classifications’’ means classifica-
tions by race, gender, veteran status, or ethnicity. 
(5) DISADVANTAGED
SMALL
BUSINESS.—The 
term ‘‘disadvantaged small business’’ means— 
(A) a socially and economically disadvan-
taged small business concern, as defined in sec-
tion 8(a)(4)(A) of the Small Business Act (15 
U.S.C. 637(a)(4)(A)); 
(B) a small business concern owned and 
controlled by socially and economically dis-
advantaged individuals, as defined in section 
8(d)(3)(C) of the Small Business Act (15 
U.S.C. 637(d)(3)(C)); or 
(C) a small business concern owned and 
controlled by a socially and economically dis-
advantaged individual covered under section 
47113 of title 49, United States Code. 
(6) MBDA UNDER
SECRETARY.—The term 
‘‘MBDA Under Secretary’’ means the Under Sec-
retary of Commerce for Minority Business Develop-
ment of the Minority Business Development Agency 
(established under section 100002 of the Minority 
Business Development Act of 2021 (15 U.S.C. 
9501)). 
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(7) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
under section 3 of the Small Business Act (15 
U.S.C. 632). 
(8) SMALL
BUSINESS
DEVELOPMENT
CEN-
TER.—The term ‘‘small business development cen-
ter’’ has the meaning given in section 3 of the Small 
Business Act (15 U.S.C. 632). 
SEC. 3. DATABASE ON CONTRACT AWARDS TO DISADVAN-
TAGED SMALL BUSINESSES. 
(a) DATABASE REQUIRED.—The head of each Agen-
cy OSDBU shall establish and maintain a public online 
database that identifies each contract awarded by the Fed-
eral agency under the 8(a) Program. Such database shall 
include the following: 
(1) The aggregate number and dollar value of 
contracts awarded to socially and economically dis-
advantaged small business concern (as defined in 
section 8(a)(4)(A) of the Small Business Act (15 
U.S.C. 637(a)(4)(A))) during the 3-year period pre-
ceding the date of the enactment of Public Law 95– 
507, disaggregated by race and ethnic group. 
(2) The aggregate number and dollar value of 
contracts awarded to disadvantaged small businesses 
pursuant to Public Law 95–507 during the 10-year 
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period preceding the date of the enactment of this 
Act, disaggregated by race and ethnic group. 
(3) Data on offers for Federal contracts sub-
mitted by a disadvantaged small business which has 
previously been awarded a Federal contract or sub-
contract with the assistance of an Agency OSDBU 
during such 10-year period. 
(b) FACTUAL
AND HISTORICAL RECORD
OF IN-
STANCES OF DISCRIMINATION AGAINST DISADVANTAGED 
SMALL BUSINESSES.— 
(1) RECORD
REQUIRED.—The Administrator 
shall establish a program under which the Adminis-
trator shall direct Federal departments and agen-
cies, in coordination with institutions of higher edu-
cation and other research organizations, to develop 
and periodically update a factual and historical 
record of instances of discrimination against dis-
advantaged small businesses desiring award of a 
Federal contract or subcontract from such Federal 
department or agency. 
(2) ELEMENTS.—The record described in para-
graph (1) shall include the following: 
(A) Operational barriers that disadvan-
taged small businesses have historically experi-
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enced in Federal contracting and subcon-
tracting. 
(B) Qualitative and quantitative trends in 
Federal contracting with disadvantaged small 
businesses, disaggregated by North American 
Industry Classification System code. 
(C) Recommendations for Governmentwide 
reforms to increase participation by disadvan-
taged small businesses in Federal contracts and 
the estimated qualitative and quantitative ef-
fects of such recommendations. 
(c) USES OF DATABASE AND RECORD.—The data-
base required under subsection (a) or a record developed 
under subsection (b) may be used— 
(1) by the Administrator and heads of Federal 
departments and agencies to develop procurement 
policies, practices, and strategies that reduce dis-
crimination, establish contracting and subcon-
tracting goals for disadvantaged small businesses, 
enhance contract compliance monitoring, and in-
crease disadvantaged small business participation in 
Federal contracting and subcontracting by mecha-
nisms that may include dividing large contracts into 
multiple smaller contracts, establishing mentor- 
mentee relationships between businesses, and pairing 
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disadvantaged small businesses with larger busi-
nesses for partnering in contract fulfillment; 
(2) by the head of a Federal department or 
agency to substantiate an award of a contract under 
the 8(a) Program; 
(3) by the head of a Federal department or 
agency to substantiate any contracting preference 
program for disadvantaged small businesses admin-
istered by the Federal agency; 
(4) by a disadvantaged small business that 
seeks an award of a contract under the 8(a) Pro-
gram to develop a narrative of discrimination; and 
(5) by a disadvantaged small business that re-
quires proof of discrimination for purpose of a judi-
cial or administrative action or by a person assisting 
a disadvantaged small business for that purpose. 
SEC. 4. OUTREACH AND RECRUITMENT TO EXPAND PAR-
TICIPATION 
OF 
DISADVANTAGED 
SMALL 
BUSINESSES IN FEDERAL CONTRACTING. 
(a) OUTREACH AND RECRUITMENT.—The Adminis-
trator, in coordination with the MBDA Under Secretary, 
shall engage in outreach and education to expand partici-
pation of disadvantaged small businesses in Federal con-
tracting. Such efforts may include the following: 
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(1) Convening events to engage and inform dis-
advantaged small businesses, including— 
(A) business, professional, and industry- 
specific conferences; 
(B) informational fairs; and 
(C) networking events. 
(2) Providing briefings and electronic or printed 
materials to disadvantaged small businesses and to 
national and local business associations and organi-
zations that represent disadvantaged small busi-
nesses about Federal contracting and subcontracting 
opportunities and procedures, including opportuni-
ties to participate in mentor-protegee programs of 
Federal agencies. 
(3) Partnering with organizations that assist 
disadvantaged small businesses, historically Black 
colleges and universities, minority-serving institu-
tions, alumni networks of such colleges and univer-
sities and institutions, small business development 
centers, and other organizations that have the ability 
to facilitate relationships between prospective dis-
advantaged small business subcontractors and prime 
contractors seeking subcontractors. 
(4) Creating a publicly accessible online direc-
tory of disadvantaged small businesses that are sub-
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contractors or that seek to become subcontractors, 
including details about the North American Industry 
Classification System code of such businesses, the 
goods and services provided by such businesses, and 
past performance information of such subcontrac-
tors. 
(5) Creating a publicly accessible online direc-
tory of available Federal contracting and subcon-
tracting opportunities that, in the determination of 
the Administrator, are appropriate for disadvan-
taged small businesses based on factors that may in-
clude the size or scope of the contract or sub-
contract, the North American Industry Classification 
System code of the business, or other relevant fac-
tors. 
(b) AGENCY OSDBUS.—Pursuant to guidelines es-
tablished by the Administrator, the Director of each Agen-
cy OSDBU shall engage in outreach and education to ex-
pand participation of disadvantaged small businesses in 
contracts and subcontracts with the Federal agency. Such 
activities shall include the following: 
(1) Facilitating interactions between prospective 
disadvantaged small business subcontractors and 
prime contractors seeking subcontractors. 
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(2) Establishing a system to facilitate matching 
prime contractors seeking subcontractors with pro-
spective disadvantaged small business subcontrac-
tors, including through the development of mentor- 
mentee relationships. 
(3) Advertising subcontracting opportunities 
through media and business or trade association 
channels that are effective in reaching prospective 
disadvantaged small business subcontractors that 
provide the goods or services for which the advertise-
ment is placed. 
(4) Directing contracting officers to provide to 
prime contractors seeking subcontractors a list of 
prospective 
disadvantaged 
small 
business 
sub-
contractors that provide the needed goods or serv-
ices. 
(5) Creating a publicly accessible online direc-
tory of disadvantaged small businesses that are eligi-
ble to participate in Federal contracting and subcon-
tracting opportunities that includes the North Amer-
ican Industry Classification System codes of such 
businesses. 
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SEC. 5. DETERMINATION OF THE DATE OF COMMENCE-
MENT OF PARTICIPATION IN THE 8(A) PRO-
GRAM. 
Section 7(j)(10)(C) of the Small Business Act (15 
U.S.C. 636(j)(10)(C)) is amended— 
(1) by redesignating clause (ii) as clause (iii); 
and 
(2) by inserting after clause (i) the following: 
‘‘(ii) A small business concern that has 
commenced participation in the Program estab-
lished under this paragraph on or after the date 
of the enactment of this clause, shall be consid-
ered to have begun such participation one year 
before the date on which such concern has at-
tained, in the determination of the Adminis-
trator, the full benefits of participation in the 
Program. Such determination may include con-
sideration of the date on which such concern 
was first awarded a contract or subcontract be-
cause of participation of such concern in the 
Program.’’. 
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SEC. 6. INCLUSION OF CONCERNS OWNED BY HBCU BUSI-
NESS ENTITIES IN DEFINITION OF SOCIALLY 
AND 
ECONOMICALLY 
DISADVANTAGED 
SMALL BUSINESS CONCERN. 
(a) HBCU BUSINESS ENTITY DEFINED.—Section 
8(a) of the Small Business Act (15 U.S.C. 637(a)) is 
amended by adding at the end the following new para-
graph: 
‘‘(21) HBCU BUSINESS ENTITY.—In this sub-
section, the term ‘HBCU business entity’ means an 
entity owned and operated by a part B institution 
(as defined under section 322 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1061); commonly re-
ferred to as a ‘historically Black college or univer-
sity’) for purposes of— 
‘‘(A) participation in interstate commerce; 
or 
‘‘(B) participation in the program de-
scribed under section 8(a).’’. 
(b) INCLUSION IN DEFINITION OF SOCIALLY AND 
ECONOMICALLY DISADVANTAGED SMALL BUSINESS CON-
CERN.—Section 8(a)(4) of the Small Business Act (15 
U.S.C. 637(a)(4)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (i)— 
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(i) in subclause (I), by striking the 
comma at the end and inserting a semi-
colon; 
(ii) in subclause (II), by striking ‘‘, 
or’’ and inserting a semicolon; 
(iii) in subclause (III), by striking ‘‘, 
or’’ and inserting ‘‘; or’’; and 
(iv) by adding at the end the following 
new subclause: 
‘‘(IV) a HBCU business entity; 
or’’; and 
(B) in clause (ii)— 
(i) in subclause (I), by striking the 
comma at the end and inserting a semi-
colon; 
(ii) in subclause (II), by striking ‘‘, 
or’’ and inserting a semicolon; 
(iii) in subclause (III), by striking the 
period at the end and inserting ‘‘; or’’; and 
(iv) by adding at the end the following 
new subclause: 
‘‘(IV) a HBCU business entity.’’; 
and 
(2) in subparagraph (B)— 
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(A) in clause (i), by striking the comma at 
the end and inserting a semicolon; 
(B) in clause (ii), by striking ‘‘, or’’ and 
inserting a semicolon; 
(C) in clause (iii), by striking the period at 
the end and inserting ‘‘; or’’; and 
(D) by adding at the end the following new 
subclause: 
‘‘(IV) a HBCU business entity 
described in subparagraph (A)(i)(IV) 
or subparagraph (A)(ii)(IV).’’. 
(c) INCLUSION IN HUBZONE SMALL BUSINESS CON-
CERN DEFINITION.—Section 31(b)(2) of the Small Busi-
ness Act (15 U.S.C. 657a(b)(2))— 
(1) in subparagraph (E)(ii), by striking ‘‘or’’ at 
the end; 
(2) in subparagraph (F)(iii), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(G) a small business concern— 
‘‘(i) that is wholly owned by one or 
more HBCU business entities (as defined 
in section 8(a)(21)), or by a corporation 
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that is wholly owned by one or more 
HBCU business entities; or 
‘‘(ii) that is owned in part by one or 
more HBCU business entities, or by a cor-
poration that is wholly owned by one or 
more HBCU business entities, if all other 
owners are either United States citizens or 
small business concerns.’’. 
SEC. 7. AGENCY OSDBU TECHNICAL ASSISTANCE. 
Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)) is amended— 
(1) in paragraph (16)— 
(A) by redesignating subparagraphs (A) 
through (D) as subparagraphs (B) through (E), 
respectively; and 
(B) by inserting before subparagraph (B) 
(as so redesignated) the following: 
‘‘(A) the training provided by the Director 
under paragraph (23) in the most recently com-
pleted fiscal year;’’; 
(2) in paragraph (21), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraphs: 
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‘‘(22) shall provide or contract with an entity 
(which may include a small business development 
center) to provide, in coordination with the Under 
Secretary of Commerce for Minority Business Devel-
opment of the Minority Business Development Agen-
cy (established under section 100002 of the Minority 
Business Development Act of 2021), technical as-
sistance to small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals (as defined under section 8(d)(3)(C)) or 
socially and economically disadvantaged small busi-
ness concerns (as defined in section 8(a)(4)(A)) for 
the development of individualized, specific narratives 
of discrimination; and 
‘‘(23) shall provide or contract with an entity 
(which may include a small business development 
center) to provide training to prepare small business 
concerns owned and controlled by socially and eco-
nomically disadvantaged individuals or socially and 
economically disadvantaged small business concerns 
to become better situated to submit an offer for a 
contract offered under section 8(a).’’. 
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SEC. 8. FEDERAL DISADVANTAGED SMALL BUSINESS TASK 
FORCE. 
(a) ESTABLISHMENT.—Not later than 4 months after 
the date of the enactment of this Act, the President shall 
establish a task force (in this section referred to as the 
‘‘Task Force’’) to— 
(1) make recommendations to increase opportu-
nities for disadvantaged small businesses in Federal 
contracting and subcontracting; 
(2) coordinate and optimize participation by 
disadvantaged small business in Federal contracting 
and subcontracting, including by— 
(A) attempting to eliminate any discrimi-
nation against such businesses; and 
(B) removing any barriers to participation 
such participation; 
(3) encourage compliance by prime contractors 
with the requirements of covered Executive orders; 
(4) expand outreach for Federal contracting 
and subcontracting opportunities to disadvantaged 
small businesses; 
(5) enhance strategies to match disadvantaged 
small businesses with prime contractors; and 
(6) recommend policies or revisions to policies 
relating to Federal contracting and subcontracting 
for disadvantaged small businesses. 
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(b) MEMBERSHIP.—The members of the Task Force 
shall include: 
(1) The MBDA Under Secretary, who shall also 
serve as the chair of the Task Force. 
(2) The Administrator of the Small Business 
Administration. 
(3) The Administrator of the Office of Federal 
Procurement Policy within the Office of Manage-
ment and Budget. 
(4) The Director of the Domestic Policy Coun-
cil. 
(5) The Administrator of General Services. 
(6) The Secretary of Defense. 
(7) The Secretary of Transportation. 
(8) The Administrator of the National Aero-
nautics and Space Administration. 
(9) The Secretary of the Treasury. 
(10) The Secretary of Labor. 
(11) The Secretary of Homeland Security. 
(12) The Secretary of Housing and Urban De-
velopment. 
(13) The Secretary of Agriculture. 
(14) The heads of such other Federal agencies 
or offices as the President may designate. 
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(c) MEETINGS.—The Task Force shall meet not later 
than 3 months after the date of establishment and not 
less frequently than once every 3 months thereafter until 
the termination date. To the extent practicable, each meet-
ing of the Task Force shall include a presentation by at 
least one representative from an institution of higher edu-
cation (as defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)) or other research organiza-
tion with expertise in matters related to— 
(1) the duties of the Task Force; 
(2) the legal basis for the processes and find-
ings of the Task Force; 
(3) historical or current discrimination in Fed-
eral contracting against disadvantaged small busi-
nesses; or 
(4) potential remedies to historical or current 
discrimination in Federal contracting against dis-
advantaged small businesses. 
(d) DUTIES.—The duties of the Task Force shall in-
clude determining the following: 
(1) Best practices among Federal agencies to 
promote participation in Federal contracting and 
subcontracting for disadvantaged small businesses, 
including practices described in section 4. 
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(2) The needs of disadvantaged small busi-
nesses that desire to participate in the 8(a) Program 
and any contracting programs for disadvantaged 
small businesses administered by a Federal agency. 
(3) Methods and initiatives to expand the par-
ticipation of disadvantaged small businesses in Fed-
eral contracting and subcontracting, including by 
unbundling large contracts into separate smaller 
contracts, by increasing flexibility for such busi-
nesses to demonstrate eligibility for Federal con-
tracts and subcontracts and to demonstrate past 
performance of a same or similar contract, and by 
enforcing compliance by prime contractors with the 
requirements of covered Executive orders. 
(4) Methods and initiatives to expand access to 
capital, credit, surety bonds, loan guarantees, finan-
cial training, and credit counseling for disadvan-
taged small businesses. 
(5) Strategies to improve the compliance of 
Federal agencies with contracting and subcon-
tracting objectives set forth in the Executive Order 
13985 titled ‘‘Advancing Racial Equity and Support 
for Underserved Communities Through the Federal 
Government’’ (86 Fed. Reg. 7009), including the fol-
lowing: 
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(A) For Federal agencies that fail to meet 
such objectives— 
(i) opportunities for training of con-
tracting officers on how to increase the 
number of contracts awarded to disadvan-
taged small businesses; and 
(ii) commencing a study led by the In-
spector General for such Federal agency to 
determine the causes of such failure, evalu-
ate disadvantaged small business participa-
tion in prime contracts, and make rec-
ommendations for improvement. 
(B) For Federal agencies that meet such 
objectives, incentives to assist such Federal 
agencies to exceed such objectives. 
(e) REPORTS.— 
(1) ACTIVITIES AND FINDINGS REPORT.—Not 
later than 4 months after the first meeting date of 
the Task Force, and biannually thereafter, the chair 
of the Task Force shall submit to Congress a report 
on the activities and findings of the Task Force and 
any recommendations to increase participation of 
disadvantaged small businesses in Federal con-
tracting and subcontracting. 
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(2) DISPARITY STUDY REPORT.—Not later than 
12 months after the first meeting date of the Task 
Force, the chair of the Task Force shall submit to 
Congress a report on the results of a study on dis-
advantaged small businesses that includes— 
(A) a quantitative and qualitative analysis 
of the disadvantaged small businesses that are 
eligible to perform Federal contracts and sub-
contracts that were offered during the 5-year 
period beginning on the date of the establish-
ment of the Task Force under this section; 
(B) the number and the North American 
Industry Classification System code of each 
such business that submitted an offer (or bid) 
for a contracting or subcontracting opportunity 
during such period, including information re-
garding contracts and subcontracts that each 
such business was previously awarded; 
(C) the number of such businesses that 
were awarded such Federal contracts and sub-
contracts; and 
(D) any conclusions regarding the pres-
ence, absence, or extent of discrimination 
against, or underrepresentation of, disadvan-
taged small businesses (disaggregated by demo-
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graphic classification) in Federal contracting 
and subcontracting. 
(f) TERMINATION DATE.—The Task Force estab-
lished under this section shall terminate on the date that 
is 10 years after the first meeting date of the Task Force. 
(g) COVERED EXECUTIVE ORDER DEFINED.—In this 
section, the term ‘‘covered Executive Order’’ means the 
following: 
(1) Executive Order 13985, titled ‘‘Advancing 
Racial Equity and Support for Underserved Commu-
nities Through the Federal Government’’ (January 
20, 2021). 
(2) Executive Order 14035, titled ‘‘Diversity, 
Equity, Inclusion, and Accessibility in the Federal 
Workforce’’ (June 25, 2021). 
(3) Executive Order 14091, titled ‘‘Further Ad-
vancing Racial Equity and Support for Underserved 
Communities Through The Federal Government’’ 
(February 16, 2023). 
SEC. 9. REQUIREMENTS RELATING TO PROMPT PAYMENT, 
PROGRESS PAYMENTS, AND PERFORMANCE- 
BASED PAYMENTS. 
(a) DISCLOSURES FOR PAYMENTS ON CERTAIN CON-
TRACTS.— 
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(1) IN
GENERAL.—Chapter 39 of title 31, 
United States Code, is amended by inserting after 
section 3905 the following: 
‘‘SEC. 3906. DISCLOSURES FOR PROMPT PAYMENTS ON 
CERTAIN CONTRACTS. 
‘‘(a) IN GENERAL.—Each covered contract shall in-
clude a clause that requires the prime contractor to in-
clude in each subcontract entered into by the prime con-
tractor and a subcontractor for the purpose of performing 
such covered contract— 
‘‘(1) a payment clause which obligates the 
prime contractor to pay the subcontractor (at any 
tier) for satisfactory performance under its sub-
contract within 14 calendar days of receipt of pay-
ment from the agency; and 
‘‘(2) an interest penalty clause which obligates 
the prime contractor to pay to the subcontractor (at 
any tier) an interest penalty on amounts due in the 
case of each payment not made in accordance with 
the payment clause described in paragraph (1)— 
‘‘(A) for the period beginning on the day 
after the required payment date and ending on 
the date on which payment of the amount due 
is made; and 
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‘‘(B) computed at the rate specified by sec-
tion 3902(a) of this title. 
‘‘(b) COVERED CONTRACT DEFINED.—In this sec-
tion, the term ‘covered contract’ means a contract award-
ed by the head of an agency to a prime contractor that 
is not a disadvantaged small business (as defined in the 
CONTRACTS Act of 2024) with a proposed value greater 
than the simplified acquisition threshold.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents for chapter 39 of title 31, United States Code, 
is amended by inserting after the item relating to 
section 3905 the following: 
‘‘3906. Disclosures for payments on certain contracts.’’. 
(b) DISCLOSURES; REPORTS; EVALUATIONS.— 
(1) DISCLOSURE.—The head of a Federal agen-
cy shall include in any contract terms, and in any 
modification to such contract, a requirement that a 
prime contractor disclose to each potential subcon-
tractor that is a disadvantaged small business— 
(A) whether the prime contractor is receiv-
ing progress payments or performance-based 
payments under such contract; and 
(B) whether the prime contractor will pro-
vide progress payments to a subcontractor for 
such contract. 
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(2) ACKNOWLEDGMENT.—The prime contractor 
shall ensure that each potential subcontractor in re-
ceipt of a disclosure described in paragraph (1) sub-
mits to such prime contractor a signed acknowledg-
ment of receipt of such disclosure. 
(3) SUBCONTRACTING REPORTS.—A prime con-
tractor for a Federal contract shall include in any 
subcontracting reports required to be submitted 
under Section 8(d)(6)(E) of the Small Business Act 
(15 U.S.C. 637(d)(6)(E)) verification of the timely 
remittance of any payments to each subcontractor of 
such prime contractor. 
(4) PERFORMANCE
EVALUATIONS.—The head 
of a Federal agency shall include in any contract 
performance evaluation of a prime contractor for 
such contract an evaluation of the prime contractor’s 
compliance with the requirements of this subsection 
and the requirements of section 3906 of title 31, 
United States Code. 
(5) SUBSEQUENT CONTRACT INELIGIBILITY.— 
If a prime contractor submits an offer for a subse-
quent contract to the head of a Federal agency 
through a sealed bid or negotiated acquisition pro-
posal and such head determines such contractor is 
not in compliance with paragraph (1), such head 
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may not award the subsequent contract to such con-
tractor— 
(A) until such contractor is in compliance 
with paragraph (1), as determined by such 
head; and 
(B) unless such head determines that such 
award is in the national interest. 
SEC. 10. REPORTS ON SUBCONTRACTOR ENGAGEMENT. 
(a) IN GENERAL.—Section 8(d) of the Small Busi-
ness Act (15 U.S.C. 637(d)) is amended by adding at the 
end the following new paragraph: 
‘‘(18) REPORTS ON SUBCONTRACTOR ENGAGE-
MENT.— 
‘‘(A) IN GENERAL.—Each prime contractor 
that is not a disadvantaged small business that 
has been awarded a major prime contract shall 
submit to the head of the Federal agency that 
awarded such contract an annual report on sub-
contracts awarded pursuant to such contract, 
including— 
‘‘(i) the total number of subcontracts 
awarded under the contract; 
‘‘(ii) the number of subcontracts and 
a description of such subcontracts awarded 
to 
disadvantaged 
small 
businesses, 
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disaggregated by demographic characteris-
tics, including the North American Indus-
try Classification System code for each 
such business; 
‘‘(iii) the total dollar value of pay-
ments made to subcontractors; and 
‘‘(iv) the total dollar value of pay-
ments made to disadvantaged small busi-
nesses, 
disaggregated 
by 
demographic 
characteristics. 
‘‘(B) DEFINITIONS.—In this paragraph: 
‘‘(i) CONTRACTS ACT OF 2024 DEFI-
NITIONS.—The terms ‘demographic charac-
teristics’ and‘disadvantaged small business’ 
have the meanings given, respectively, in 
the CONTRACTS Act of 2024. 
‘‘(ii) MAJOR PRIME CONTRACT.—The 
term ‘major prime contract’ means— 
‘‘(I) the 50 highest dollar value 
prime contracts of a Federal agency; 
and 
‘‘(II) each contract of a Federal 
agency that has a total dollar value 
greater 
than 
or 
equal 
to 
$10,000,000.’’. 
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(b) APPLICABILITY.—This section and the amend-
ments made by this section shall apply with respect to a 
major prime contract (as defined in section 8(d)(18) of 
the Small Business Act (15 U.S.C. 637(d))) entered into 
on or after the date of the enactment of this section. 
SEC. 11. MODIFICATIONS TO SUBCONTRACTING PLANS TO 
ENHANCE OPPORTUNITIES FOR SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY 
SOCIALLY 
AND 
ECONOMICALLY 
DIS-
ADVANTAGED INDIVIDUALS. 
(a) IN GENERAL.—Each covered person that is re-
quired to submit a subcontracting plan under paragraph 
(4) or (5) of section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) for a contract shall update such subcon-
tracting plan to include the following: 
(1) The names, addresses, phone numbers, 
types of business, and North American Industrial 
Classification System code of the small business con-
cerns owned and controlled by socially and economi-
cally disadvantaged individuals, disaggregated by de-
mographic characteristics, that were considered or 
solicited as subcontractors. 
(2) With respect to such concerns that were 
considered or solicited but not included in the up-
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dated subcontracting plan, the reasons for the deci-
sion not to include such concerns. 
(3) Information on the process and efforts of 
the covered person in developing such subcontracting 
plan, including— 
(A) the actions taken by the covered per-
son to identify, solicit, and provide outreach to 
small business concerns owned and controlled 
by socially and economically disadvantaged indi-
viduals for possible inclusion in its subcon-
tracting plan; 
(B) the information provided by the cov-
ered person to such concerns about subcon-
tracting opportunities under the contract; 
(C) the means by which the subcontractors 
that were included in the subcontracting plan 
were selected by the covered person; and 
(D) the directories or lists of small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, 
websites and website search tools, business or 
professional associations, industry databases, 
and other resources that the covered person 
consulted or used to identify such concerns for 
possible inclusion in the subcontracting plan. 
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(4) A description of the plans of the covered 
person to— 
(A) increase the number of disadvantaged 
small businesses in the subcontracting plan for 
subsequent years of contract performance; and 
(B) increase the dollar amount under the 
contract allocated for goods and services pro-
vided by such concerns. 
(b) ENFORCEMENT.— 
(1) 
COMPLIANCE
WITH
SUBCONTRACTING 
PLAN.—A covered person described in subsection (a) 
that is awarded a prime contract and granted a 
modification of a contract by the head of a Federal 
agency under such subsection shall remain in com-
pliance with the terms of the updated subcontracting 
plan during the term of performance of the contract 
before receiving any amounts related to such modi-
fication. 
(2) SUBSEQUENT CONTRACT INELIGIBILITY.— 
If a covered person described in paragraph (1) sub-
mits an offer for a subsequent contract to such head 
of a Federal agency through a sealed bid or nego-
tiated acquisition proposal and such head determines 
such covered person is not in compliance with a sub-
contracting plan described in subsection (a), such 
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head may not award the subsequent contract to such 
contractor— 
(A) until such covered person is in compli-
ance with subsection (a), as determined by such 
head; and 
(B) unless such head determines that such 
award is in the national interest. 
(3) SUBSEQUENT CONTRACT OFFER SCORES.— 
(A) ADJUSTMENT TO SCORE.—If a covered 
person described in paragraph (1) submits an 
offer for a subsequent contract to such head of 
a Federal agency through a sealed bid or nego-
tiated acquisition proposal, the evaluation score 
of the contracting officer given to such offer 
shall be adjusted as follows: 
(i) For a covered person that achieved 
subcontractor diversity in the performance 
of the prior contract, such score shall be 
increased by one point. 
(ii) For a covered person that failed 
to achieve subcontractor diversity in the 
performance of the prior contract, such 
score shall be decreased by one point. 
(B) SUBCONTRACTOR
DIVERSITY
DETER-
MINATION.—For purposes of this paragraph, 
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the contracting officer that awarded the covered 
person a contract under subsection (a) shall 
make a determination as to whether the covered 
person achieved subcontractor diversity using 
the information in the subcontracting plan of 
the covered person and the standards used by 
such contracting officer to evaluation subcon-
tractor diversity. 
(c) ACCOUNTABILITY.—The appropriate head of a 
Federal agency shall consider the performance of a con-
tracting officer of responsibilities under this section in any 
evaluation of the performance of the contracting officer, 
including such contracting officer’s— 
(1) collection and analysis of prime contractor 
data to assess subcontractor diversity (as described 
in subsection (b)(3)(B)); 
(2) failure to identify a covered person’s failure 
to achieve subcontractor diversity or to comply with 
an applicable subcontracting plan; and 
(3) efforts for monitoring and determinations 
regarding the receipt of payments by disadvantaged 
small business subcontractors from prime contrac-
tors in accordance with relevant contractual terms. 
(d) APPLICABILITY.—This section and the require-
ments of this section shall apply with respect to a subcon-
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tracting plan entered into on or after the date of the en-
actment of this section. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘small business concerns owned 
and controlled by socially and economically disadvan-
taged individuals’’ has the meaning given under sec-
tion 8(d)(3)(C) of the Small Business Act (15 
U.S.C. 637(d)(3)(C)). 
(2) The term ‘‘covered person’’ means an ap-
parently successful offeror, bidder for a contract, or 
contractor seeking a modification of a contract. 
SEC. 12. DIVERSITY AND INCLUSION REPORTING REQUIRE-
MENTS FOR COVERED CONTRACTORS. 
(a) GOVERNMENTWIDE REQUIREMENT.—Chapter 47 
of division C of subtitle I of title 41, United States Code, 
is amended by inserting after section 4714 the following 
new section: 
‘‘§ 4715. Diversity and inclusion reporting require-
ments for covered contractors 
‘‘(a) COVERED CONTRACTOR REPORTS.— 
‘‘(1) IN GENERAL.—The head of each executive 
agency shall require each covered contractor award-
ed a major contract to submit to such head by the 
last day of each full fiscal year that occurs during 
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the period of performance of any major contract a 
report on diversity and inclusion. 
‘‘(2) ELEMENTS.—Each report under para-
graph (1) shall include, for the fiscal year covered by 
the report the following: 
‘‘(A) A description of each major contract 
with a period of performance during the fiscal 
year covered by the report, including the period 
of performance, expected total value, and value 
to date of each major contract. 
‘‘(B) The total value of payments received 
under all major contracts of each covered con-
tractor during such fiscal year. 
‘‘(C) The total number of participants in 
the board of directors of each covered con-
tractor, nominees for the board of directors of 
the covered contractor, and the senior leaders of 
the covered contractor, disaggregated by demo-
graphic classifications. 
‘‘(D) With respect to employees of each 
covered contractor— 
‘‘(i) the total number of such employ-
ees; and 
‘‘(ii) the number of such employees 
(expressed as a numeral and as a percent-
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age of the total number), disaggregated by 
demographic classification and major occu-
pational group. 
‘‘(E) The value of first-tier subcontracts 
under each major contract entered into during 
such fiscal year. 
‘‘(F) With respect to employees of each 
covered subcontractor— 
‘‘(i) the total number of such employ-
ees; and 
‘‘(ii) the number of such employees 
(expressed as a numeral and as a percent-
age of the total number), disaggregated by 
demographic classification and major occu-
pational group. 
‘‘(G) Whether the board of directors of the 
covered contractor has, as of the date on which 
the covered contractor submits a report under 
this section, adopted any policy, plan, or strat-
egy to promote racial, ethnic, and gender diver-
sity among the members of the board of direc-
tors of the covered contractor, nominees for the 
board of directors of the covered contractor, or 
the senior leaders of the covered contractor. 
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‘‘(H) A description of participation by the 
contractor in diversity programs, to include the 
number of hours spent implementing, funds ex-
pended in support of, and the number of unique 
relationships established by each such diversity 
program. 
‘‘(b) ANNUAL SUMMARY REPORT.— 
‘‘(1) REPORT REQUIRED.—Not later than 60 
days after the first day of each fiscal year, the head 
of each executive agency shall submit to each rel-
evant committee of Congress a report that summa-
rizes the reports submitted pursuant to subsection 
(a). 
‘‘(2) ELEMENTS.—Each report under para-
graph (1) shall include the following: 
‘‘(A) An index of the reports submitted 
pursuant to subsection (a). 
‘‘(B) A compilation of the data described 
in such subsection, disaggregated as described 
in such subsection. 
‘‘(C) An aggregation of the data provided 
in such reports. 
‘‘(D) A narrative that analyzes the infor-
mation disclosed in such reports and identifies 
any year-to-year trends in such information. 
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