258 
(ii) CRITERIA IN EFFECT.—For purposes of this chapter, 
the determination of a labor surplus area shall be made on 
the basis of the criteria in effect at the time of the determina-
tion, except that any minimum population criteria shall not 
exceed 25,000. 
(iii) DETERMINATION BY SECRETARY OF LABOR.—A deter-
mination of a labor surplus area shall be made by the Sec-
retary of Labor. 
(b) CONTRACTING PREFERENCE FOR SMALL BUSINESS CONCERNS IN A 
MAJOR DISASTER AREA.— 
(1) CONTRACTING PREFERENCE.—A Federal agency shall provide a 
contracting preference for a small business concern located in a dis-
aster area if the small business concern will perform the work required 
under the contract in the disaster area. 
(2) CREDIT FOR MEETING CONTRACTING GOALS.—If a Federal agen-
cy awards a contract to a small business concern under the cir-
cumstances described in paragraph (1), the value of the contract shall 
be doubled for purposes of determining compliance with the goals for 
procurement contracts under section 251106(a) of this title. 
§ 251105. Procurement strategies; contract bundling 
(a) IN GENERAL.—To the maximum extent practicable, procurement 
strategies used by a Federal agency having contracting authority shall— 
(1) facilitate the maximum participation of small business concerns 
as prime contractors, subcontractors, and suppliers; 
(2) provide opportunities for the participation of small business con-
cerns during acquisition planning processes and in acquisition plans; 
and 
(3) invite the participation of the appropriate Director of Small and 
Disadvantaged Business Utilization in acquisition planning processes 
and provide the Director access to acquisition plans. 
(b) MARKET RESEARCH.— 
(1) IN GENERAL.—Before proceeding with an acquisition strategy 
that could lead to a contract containing consolidated procurement re-
quirements, the head of a Federal agency shall conduct market re-
search to determine whether consolidation of the requirements is nec-
essary and justified. 
(2) FACTORS.—For purposes of paragraph (1), consolidation of the 
requirements may be determined as being necessary and justified if, as 
compared with the benefits that would be derived from contracting to 
meet those requirements if not consolidated, the Federal Government 
would derive from the consolidation measurably substantial benefits, in-
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00258
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
259 
cluding any combination of benefits that, in combination, are measur-
ably substantial. 
(3) BENEFITS.—Benefits described in paragraph (2) may include— 
(A) cost savings; 
(B) quality improvements; 
(C) reduction in acquisition cycle times; 
(D) better terms and conditions; or 
(E) any other benefit. 
(4) REDUCTION OF ADMINISTRATIVE OR PERSONNEL COSTS NOT A 
SUFFICIENT
JUSTIFICATION.—A reduction of administrative or per-
sonnel costs alone shall not be a justification for bundling of contract 
requirements unless the cost savings are expected to be substantial in 
relation to the dollar value of the procurement requirements to be con-
solidated. 
(c) STRATEGY SPECIFICATIONS.— 
(1) IN GENERAL.—If the head of a contracting agency determines 
that an acquisition plan for a procurement involves a substantial bun-
dling of contract requirements, the head of a contracting agency shall 
publish a notice on a public website that the determination has been 
made not later than 7 days after making the determination. Any solici-
tation for a procurement related to the acquisition plan shall not be 
published earlier than 7 days after the notice is published. 
(2) JUSTIFICATION.— 
(A) PUBLICATION.—With the publication of the solicitation, the 
head of a contracting agency shall publish a justification for the 
determination. 
(B) CONTENTS.—A justification published under subparagraph 
(A) shall include— 
(i) a description of the specific benefits anticipated to be 
derived from the bundling of contract requirements and a de-
termination that the benefits justify the bundling; 
(ii) an identification of any alternative contracting ap-
proaches that would involve a lesser degree of bundling of 
contract requirements; and 
(iii) an assessment of— 
(I) the specific impediments to participation by small 
business concerns as prime contractors that result from 
the bundling of contract requirements; and 
(II) the specific actions designed to maximize partici-
pation of small business concerns as subcontractors (in-
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00259
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
260 
cluding suppliers) at various tiers under the contract or 
contracts that are awarded to meet the requirements. 
(d) CONTRACT TEAMING.— 
(1) IN GENERAL.—In the case of a solicitation of offers for a bun-
dled or consolidated contract that is issued by the head of a Federal 
agency, a small business concern that provides for use of a particular 
team of subcontractors or a joint venture of small business concerns 
may submit an offer for the performance of the contract. 
(2) EVALUATION OF OFFERS.— 
(A) MANNER OF EVALUATION.—The head of the Federal agency 
shall evaluate an offer described in paragraph (1) in the same 
manner as other offers, with due consideration to the capabilities 
of all of the proposed subcontractors or members of the joint ven-
ture as provided in subparagraphs (B) and (C). 
(B) TEAMS.—When evaluating an offer of a small business 
prime contractor that includes a proposed team of small business 
subcontractors, the head of the agency shall consider the capabili-
ties and past performance of each 1st tier subcontractor that is 
part of the team as the capabilities and past performance of the 
small business prime contractor. 
(C) JOINT VENTURES.—When evaluating an offer of a joint 
venture of small business concerns, if the joint venture does not 
demonstrate sufficient capabilities or past performance to be con-
sidered for award of a contract opportunity, the head of the Fed-
eral agency shall consider the capabilities and past performance of 
each member of the joint venture as the capabilities and past per-
formance of the joint venture. 
(3) STATUS AS A SMALL BUSINESS CONCERN.—Participation of a 
small business concern in a team or a joint venture under this sub-
section shall not affect the status of that concern as a small business 
concern for any other purpose. 
(e) ACCESS TO DATA.— 
(1) DATABASE.—The Administrator shall maintain a database con-
taining information regarding— 
(A) each bundled contract awarded by a Federal agency; and 
(B) each small business concern that has been displaced as a 
prime contractor as a result of the award of a bundled contract. 
(2) ANALYSIS.—For each bundled contract that is to be recompeted 
as a bundled contract, the Administrator shall determine— 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00260
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
261 
(A) the amount of savings and benefits (in accordance with sub-
section (b)) achieved under the bundling of contract requirements; 
and 
(B) whether such savings and benefits will continue to be real-
ized if the contract remains bundled, and whether such savings 
and benefits would be greater if the procurement requirements 
were divided into separate solicitations suitable for award to small 
business concerns. 
(3) ACCESS TO DATA.— 
(A) FEDERAL PROCUREMENT DATA SYSTEM.—To assist in the 
implementation of this subsection and section 107106 of this title, 
the Administrator shall have access to information collected 
through the Federal Procurement Data System. 
(B) AGENCY PROCUREMENT DATA SOURCES.—To assist in the 
implementation of this subsection and section 107106 of this title, 
the head of each procuring agency shall provide, on request of the 
Administrator, procurement information collected through existing 
agency data collection sources. 
(f) BUNDLING ACCOUNTABILITY MEASURES.— 
(1) TEAMING AND JOINT VENTURE REQUIREMENTS.— 
(A) IN GENERAL.—A Federal agency shall include in each solici-
tation for a multiple award contract above the substantial bun-
dling threshold of the Federal agency a provision soliciting bids 
from any responsible source, including responsible small business 
concerns and teams or joint ventures of small business concerns. 
(B) TEAMS.—When evaluating an offer of a small business 
prime contractor that includes a proposed team of small business 
subcontractors for any multiple award contract above the substan-
tial bundling threshold of the Federal agency, the head of the Fed-
eral agency shall consider the capabilities and past performance of 
each 1st tier subcontractor that is part of the team as the capa-
bilities and past performance of the small business prime con-
tractor. 
(C) JOINT VENTURES.—When evaluating an offer of a joint 
venture of small business concerns for any multiple award contract 
above the substantial bundling threshold of the Federal agency, if 
the joint venture does not demonstrate sufficient capabilities or 
past performance to be considered for award of a contract oppor-
tunity, the head of the Federal agency shall consider the capabili-
ties and past performance of each member of the joint venture as 
the capabilities and past performance of the joint venture. 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00261
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
262 
(2) POLICIES ON REDUCTION OF CONTRACT BUNDLING.— 
(A) IN GENERAL.—The Federal Acquisition Regulatory Council 
shall amend the Federal Acquisition Regulation to— 
(i) establish a Governmentwide policy regarding contract 
bundling, including regarding the solicitation of teaming and 
joint ventures under paragraph (1); and 
(ii) require that the policy established under clause (i) be 
published on the website of each Federal agency. 
(B) RATIONALE FOR CONTRACT BUNDLING.—Not later than 30 
days after the date on which the head of a Federal agency submits 
data certifications to the Administrator for Federal Procurement 
Policy, the head of the Federal agency shall publish on the website 
of the Federal agency a list and rationale for any bundled contract 
for which the Federal agency solicited bids or that was awarded 
by the Federal agency. 
§ 251106.
Goals for participation by small business concerns 
in procurement contracts 
(a) GOVERNMENTWIDE GOALS.— 
(1) IN GENERAL.—The President shall annually establish separate 
Governmentwide goals for procurement contracts awarded to each of 
the following categories of small business concern: 
(A) Small business concerns. 
(B) Qualified HUBZone small business concerns. 
(C) Small business concerns owned and controlled by service- 
disabled veterans. 
(D) Small business concerns owned and controlled by socially 
and economically disadvantaged individuals. 
(E) Small business concerns owned and controlled by women. 
(2) OVERALL GOAL.— 
(A) IN GENERAL.—The overall Governmentwide goal for partici-
pation by small business concerns shall be established at not less 
than 23 percent of the total value of all prime contract awards for 
each fiscal year. 
(B) PARTICIPATION.—In meeting the goal under subparagraph 
(A), the Government shall ensure the participation of small busi-
ness concerns from a wide variety of industries and from a broad 
spectrum of small business concerns within each industry. 
(3) GOALS FOR SPECIFIC CATEGORIES OF SMALL BUSINESS CON-
CERN.— 
(A) QUALIFIED HUBZONE SMALL BUSINESS CONCERNS.—The 
Governmentwide goal for participation by qualified HUBZone 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00262
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
266 
ness concerns owned and controlled by women, and other 
small business concerns) 
(v) WEIGHTED
FACTORS.—In using the Federal agency 
scorecard to evaluate and assign a score to a Federal agency, 
the Administrator shall base— 
(I) 50 percent of the score on the dollar value of prime 
contracts described in clause (iv)(I); and 
(II) 50 percent of the score on the information pro-
vided in subclauses (II) through (V) of clause (iv), 
weighted in a manner determined by the Administrator 
to encourage the maximum practicable opportunity for 
the award of prime contracts and subcontracts to small 
business concerns, small business concerns (including 
qualified HUBZone small business concerns, small busi-
ness concerns owned and controlled by service-disabled 
veterans, small business concerns owned and controlled 
by socially and economically disadvantaged individuals, 
small business concerns owned and controlled by women, 
and other small business concerns). 
(vi) INCLUSION IN REPORT.—The Federal agency scorecard 
used by the Administrator under this subsection shall be sub-
mitted to the President and Congress with the report sub-
mitted under section 107108(b) of this title. 
(5) PROCUREMENT PROCEDURES.— 
(A) IN GENERAL.—To facilitate the attainment of a goal for the 
participation of small business concerns owned and controlled by 
socially and economically disadvantaged individuals that is estab-
lished for a Federal agency under this subsection, the head of the 
Federal agency may enter into contracts using— 
(i) less than full and open competition by restricting the 
competition for such awards to small business concerns owned 
and controlled by socially and economically disadvantaged in-
dividuals; and 
(ii) a price evaluation preference not in excess of 10 per-
cent when evaluating an offer received from a small business 
concern owned and controlled by socially and economically 
disadvantaged individuals as the result of an unrestricted so-
licitation. 
(B) APPLICABILITY.—Subparagraph (A) does not apply to the 
Department of Defense, the Coast Guard, or the National Aero-
nautics and Space Administration. 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00266
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
267 
(C) IMPLEMENTATION THROUGH THE FEDERAL ACQUISITION 
REGULATION.— 
(i) IN GENERAL.—The Federal Acquisition Regulation shall 
provide for uniform implementation of the authority provided 
in subparagraph (A). 
(ii) MATTERS TO BE ADDRESSED.—The provisions of the 
Federal Acquisition Regulation under clause (i) shall in-
clude— 
(I) conditions for the use of advance payments; 
(II) provisions for contract payment terms that pro-
vide for— 
(aa) accelerated payment for work performed dur-
ing the period for contract performance; and 
(bb) full payment for work performed; 
(III) guidance on how contracting officers may use, in 
solicitations for various classes of products or services, a 
price evaluation preference under subparagraph (A)(ii), 
to provide a reasonable advantage to small business con-
cerns owned and controlled by socially and economically 
disadvantaged individuals without effectively eliminating 
any participation of other small business concerns; and 
(IV)(aa) procedures for a person to request the head 
of a Federal agency to determine whether the use of 
competitions restricted to small business concerns owned 
and controlled by socially and economically disadvan-
taged individuals at a contracting activity of the Federal 
agency has caused a particular industry category to bear 
a disproportionate share of the contracts awarded to at-
tain the goal established for that contracting activity; 
and 
(bb) guidance for limiting the use of such restricted 
competitions in the case of any contracting activity and 
class of contracts determined in accordance with such 
procedures to have caused a particular industry category 
to bear a disproportionate share of the contracts award-
ed to attain the goal established for that contracting ac-
tivity. 
(D) TERMINATION.—This paragraph shall cease to be effective 
at the end of September 30, 2003. 
(b) FEDERAL AGENCY GOALS.— 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00267
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
268 
(1) IN GENERAL.—The head of each Federal agency shall, after con-
sultation with the Administrator, establish goals for the participation 
by small business concerns (including qualified HUBZone small busi-
ness concerns, small business concerns owned and controlled by service- 
disabled veterans, small business concerns owned and controlled by so-
cially and economically disadvantaged individuals, small business con-
cerns owned and controlled by women, and other small business con-
cerns) in procurement contracts of the agency. The goals shall sepa-
rately address prime contract awards and subcontract awards for each 
category of small business covered. 
(2) REALISTIC
REFLECTION
OF
POTENTIAL.—Goals established 
under this section shall be jointly established by the Administration 
and the head of each Federal agency and shall realistically reflect the 
potential of small business concerns (including qualified HUBZone 
small business concerns, small business concerns owned and controlled 
by service-disabled veterans, small business concerns owned and con-
trolled by socially and economically disadvantaged individuals, small 
business concerns owned and controlled by women, and other small 
business concerns) to perform procurement contracts of the agency and 
to perform subcontracts under those contracts. Contracts excluded 
from review by procurement center representatives pursuant to section 
251110(j)(2) of this title shall not be considered when establishing the 
goals. 
(3) DISAGREEMENT.—If the Administrator and the head of a Fed-
eral agency fail to agree on established goals, the disagreement shall 
be submitted to the Administrator for Federal Procurement Policy for 
final determination. 
(4) EXPANSION OF PARTICIPATION.— 
(A) IN
GENERAL.—After establishing goals under this sub-
section for a fiscal year, the head of a Federal agency shall de-
velop a plan for achieving the goals at both the prime contract 
level and the subcontract level. 
(B) RESPONSIBILITIES.—A plan under subparagraph (A) shall 
apportion responsibilities among the Federal agency’s acquisition 
executives and officials. 
(C) PARTICIPATION FROM EACH INDUSTRY CATEGORY.—In es-
tablishing goals under this subsection, the head of a Federal agen-
cy shall make a consistent effort to annually expand participation 
by small business concerns from each industry category in pro-
curement contracts and subcontracts of the Federal agency, in-
cluding participation by qualified HUBZone small business con-
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00268
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
269 
cerns, small business concerns owned and controlled by service-dis-
abled veterans, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, and small 
business concerns owned and controlled by women. 
(D) CONSIDERATIONS.—The head of a Federal agency, in at-
tempting to attain participation under subparagraph (A), shall 
consider— 
(i) contracts awarded as the result of unrestricted competi-
tion; and 
(ii) contracts awarded after competition restricted to eligi-
ble small business concerns under this chapter and under the 
business development program. 
(E) COMMUNICATION
BY
PROCURING
EMPLOYEES
AND
PRO-
GRAM MANAGERS OF IMPORTANCE OF ACHIEVING SMALL BUSINESS 
GOALS.— 
(i) IN
GENERAL.—A procurement employee or program 
manager described in clause (ii) shall communicate to the 
subordinates of the procurement employee or program man-
ager the importance of achieving small business goals estab-
lished under subparagraph (A). 
(ii) PROCUREMENT
EMPLOYEES
AND
PROGRAM
MAN-
AGERS.—A procurement employee or program manager re-
ferred to in clause (i) is a senior procurement executive, sen-
ior program manager, or Director of Small and Disadvan-
taged Business Utilization of a Federal agency having con-
tracting authority. 
(F) 
RESPONSIBILITY
FOR
ACHIEVING
SMALL
BUSINESS 
GOALS.— 
(i) DEFINITION OF RESPONSIBLE FOR ACQUISITION.—In 
this subparagraph, the term ‘‘responsible for acquisition’’, 
with respect to a member of the senior executive service or 
other senior official, refers to a member of the senior execu-
tive service or other senior official who— 
(I) acquires services or supplies; 
(II) directs Federal agency organizations to acquire 
services or supplies; or 
(III) oversees acquisition officials, including program 
managers, contracting officers, and other acquisition 
workforce personnel responsible for formulating and ap-
proving acquisition strategies and plans. 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00269
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
270 
(ii) STEPS BY FEDERAL AGENCY HEADS TO ENSURE THAT 
MEMBERS OF THE SENIOR EXECUTIVE SERVICE RESPONSIBLE 
FOR ACQUISITION, OTHER SENIOR OFFICIALS RESPONSIBLE 
FOR ACQUISITION, AND OTHER MEMBERS OF THE SENIOR EX-
ECUTIVE SERVICE ASSUME RESPONSIBILITY.—The head of a 
Federal agency shall take steps to ensure that members of 
the senior executive service (as defined under section 3396(a) 
of title 5) responsible for acquisition, other senior officials re-
sponsible for acquisition, and other members of the senior ex-
ecutive service, as appropriate, assume responsibility for the 
Federal agency’s success in achieving each of the small busi-
ness prime contracting and subcontracting goals and percent-
ages by— 
(I) promoting responsiveness to small business con-
cerns; 
(II) communicating the importance of achieving the 
Federal agency’s small business contracting goals; and 
(III) encouraging awareness of, outreach toward, and 
support of small business concerns. 
(c) CONTRACTORS SPONSORED
BY DEPARTMENT
OF ENERGY.—Sub-
contracts that are awarded to 1st tier subcontractors by management and 
operating contractors sponsored by the Department of Energy to qualified 
HUBZone small business concerns, small businesses concerns owned and 
controlled by service-disabled veterans, small business concerns owned and 
controlled by socially and economically disadvantaged individuals, small 
business concerns owned and controlled by women, and other small business 
concerns shall be considered toward the Governmentwide goals under sub-
section (a) and Federal agency goals under subsection (b). 
(d) GOALING GUIDELINE.—The Administrator shall review and revise the 
Goaling Guidelines for the Small Business Preference Programs for Prime 
and Subcontract Federal Procurement Goals and Achievements to the ex-
tent necessary to ensure that— 
(1) Federal agency subcontracting goals are established on the basis 
of realistically achievable improvements to levels of subcontracting rath-
er than on the basis of an average of previous years’ subcontracting 
performance; 
(2) Federal agency contracting and subcontracting goals are estab-
lished in a manner that does not exclude categories of contracts on the 
basis of— 
(A) the type of goods or services for which the Federal agency 
contracts; or 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00270
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
271 
(B) in the case of a contract subject to competitive procedures 
under chapter 33 of title 41— 
(i) whether or not funding for the contract is made directly 
available to the Federal agency by an appropriations Act or 
is made available by reimbursement from another agency or 
account; or 
(ii) whether or not a contract is subject to the Federal Ac-
quisition Regulation; and 
(3) if a Federal agency contracting goal or subcontracting goal is es-
tablished at a level lower than the Governmentwide goal for small busi-
ness concerns or the relevant category of small business concern, the 
Administrator documents the basis for the decision to establish the 
lower goal. 
§ 251107. No effect on certain small business setasides 
(a) IN GENERAL.—Nothing in this chapter or any other provision of law 
precludes exclusive small business setasides for procurements of architec-
tural and engineering services, research, development, test, and evaluation. 
(b) AUTHORITY.—A Federal agency may develop setasides described in 
subsection (a) to further the interests of small business in the areas de-
scribed in that subsection. 
§ 251108. Mandatory contract reservation 
(a) IN GENERAL.—A contract for the purchase of a good or service that 
has an anticipated value greater than $2,500 but not greater than $100,000 
shall be reserved exclusively for small business concerns unless the con-
tracting officer is unable to obtain offers from 2 or more small business con-
cerns that are— 
(1) competitive with market prices; and 
(2) competitive with regard to the quality and delivery of the good 
or service being purchased. 
(b) CONSIDERATION OF TIMELY OFFERS.—In carrying out subsection 
(a), a contracting officer shall consider a responsive offer timely received 
from an eligible small business concern offeror. 
(c) EFFECT OF SECTION.—Nothing in this section precludes an award of 
a contract with a value not greater than $100,000 under— 
(1) the business development program; 
(2) section 2323 of title 10; or 
(3) section 251106(a)(5) of this title. 
§ 251109. Offices of Small and Disadvantaged Business Utili-
zation 
(a) DEFINITIONS.—In this section: 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00271
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
272 
(1) DIRECTOR.—The term ‘‘Director’’ means the Director of Small 
and Disadvantaged Business Utilization of a Federal agency appointed 
under subsection (c). 
(2) OFFICE.—The term ‘‘Office’’ means the Office of Small and Dis-
advantaged Business Utilization of a Federal agency established by 
subsection (b). 
(b) ESTABLISHMENT OF OFFICES.—There is established in each Federal 
agency having procurement powers an office to be known as the Office of 
Small and Disadvantaged Business Utilization. 
(c) DIRECTOR.— 
(1) IN GENERAL.—The management of an Office shall be vested in 
an officer or employee of the Federal agency, appointed by the head 
of the Federal agency, who shall be known as the Director of Small 
and Disadvantaged Business Utilization of the Federal agency. 
(2) QUALIFICATIONS.—The Director shall be an individual with ex-
perience serving in any combination of the following roles: 
(A) Program manager, deputy program manager, or assistant 
program manager for Federal acquisition program. 
(B) Chief engineer, systems engineer, assistant engineer, or 
product support manager for Federal acquisition program. 
(C) Federal contracting officer. 
(D) Small business technical advisor. 
(E) Contracts administrator for Federal Government contracts. 
(F) Attorney specializing in Federal procurement law. 
(G) Small business liaison officer. 
(H) Officer or employee who managed Federal Government con-
tracts for a small business. 
(I) Individual whose primary responsibilities were for the func-
tions and duties of chapter 231, 233, 241, 243, or 245 of this title 
or division H of subtitle II of this title. 
(3) POSITION.—The Director shall be appointed to a position that 
is a Senior Executive Service position (as defined under section 
3132(a) of title 5), except that, for a Federal agency in which the posi-
tions of Chief Acquisition Officer and senior procurement executive are 
not Senior Executive Service positions, the Director may be appointed 
to a position compensated at not less than the minimum rate of basic 
pay payable for grade GS–15 of the General Schedule under section 
5332 of title 5 (including comparability payments under section 5304 
of that title). 
(4) LINE OF AUTHORITY.— 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00272
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
273 
(A) IN GENERAL.—The Director for a Federal agency shall be 
responsible (including responsibility with respect to performance 
appraisals) only to, and shall report directly to, the head or deputy 
head of the Federal agency. 
(B) DEPARTMENT OF DEFENSE.—The Director for the Depart-
ment of Defense shall be responsible (including responsibility with 
respect to performance appraisals) only to, and shall report di-
rectly to, the Secretary of Defense or a designee of the Secretary. 
(5) EXCLUSIVE DUTIES.—The Director shall carry out exclusively 
the duties enumerated in this subtitle and subtitle I, and, while holding 
the position of Director, shall not hold any other title, position, or re-
sponsibility, except as necessary to carry out responsibilities under this 
section. 
(d) GENERAL RESPONSIBILITIES.—The Director for a Federal agency 
shall be responsible for the implementation and execution of the functions 
and duties under chapters 231, 233, 241, 243, and 245 of this title and 
division H of subtitle II of this title. 
(e) DUTIES.—The Director for a Federal agency— 
(1) shall— 
(A) identify proposed solicitations that involve significant bun-
dling of contract requirements; and 
(B) work with acquisition officials of the Federal agency and 
the Administrator to revise the procurement strategies for pro-
posed solicitations as appropriate to increase the probability of 
participation by small business concerns as prime contractors or 
to facilitate participation by small business concerns as sub-
contractors and suppliers, if a solicitation for a bundled contract 
is to be issued; 
(2) shall assist small business concerns in obtaining payments, re-
quired late payment interest penalties, or information regarding pay-
ments due to small business concerns from a Federal agency or a con-
tractor, in conformity with chapter 39 of title 31 or any other protec-
tion for contractors or subcontractors (including suppliers) that is in-
cluded in the Federal Acquisition Regulation or any individual agency 
supplement to the Governmentwide regulation; 
(3) shall review and advise the Federal agency on any decision to 
convert an activity performed by a small business concern to an activity 
performed by a Federal employee; 
(4) shall provide to the Chief Acquisition Officer and senior procure-
ment executive of the Federal agency advice and comments on acquisi-
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00273
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS
274 
tion strategies, market research, and justifications relating to section 
241119 of this title; 
(5) may provide training to small business concerns and contract 
specialists, to the extent that the training does not interfere with the 
Director’s carrying out of other responsibilities under this section; 
(6) shall receive unsolicited proposals and, when appropriate, forward 
a proposal to personnel of the activity responsible for reviewing the pro-
posal; 
(7) shall, when notified by a small business concern prior to the 
award of a contract that the small business concern believes that a so-
licitation, request for proposal, or request for quotation unduly restricts 
the ability of the small business concern to compete for the award— 
(A) submit the notice of the small business concern to the con-
tracting officer and, if necessary, recommend ways in which the 
solicitation, request for proposal, or request for quotation may be 
altered to increase the opportunity for competition; 
(B) inform the advocate for competition of the Federal agency 
(as established under section 1705 of title 41 or section 2318 of 
title 10) of the notice; and 
(C) ensure that the small business concern is aware of other re-
sources and processes available to address unduly restrictive provi-
sions in a solicitation, request for proposal, or request for 
quotation, even if the resources and processes are provided by the 
Federal agency, the Administrator, the Comptroller General, or a 
procurement technical assistance program established under chap-
ter 142 of title 10; 
(8) shall review summary data provided by purchase card issuers of 
purchases made by the agency greater than the micro-purchase thresh-
old (as defined under section 1902 of title 41) and less than the sim-
plified acquisition threshold to ensure that the purchases have been 
made in compliance with the provisions of subtitles I and II of this title 
and have been properly recorded in the Federal Procurement Data Sys-
tem, if the method of payment is a purchase card issued by the Depart-
ment of Defense pursuant to section 2784 of title 10 or by the head 
of an executive agency pursuant to section 1909 of title 41; 
(9) shall provide assistance to a small business concern awarded a 
contract or subcontract under subtitles I and II of this title or under 
title 10 or title 41, in finding resources for education and training on 
compliance with contracting regulations (including the Federal Acquisi-
tion Regulation) after award of the contract or subcontract; and 
VerDate Sep 11 2014 
04:03 Jul 18, 2018
Jkt 079200
PO 00000
Frm 00274
Fmt 6652
Sfmt 6221
E:\BILLS\H6389.IH
H6389
SSpencer on DSKBBXCHB2PROD with BILLS