IB 
Union Calendar No. 534 
112TH CONGRESS 
2D SESSION 
H. R. 3893 
[Report No. 112–731, Part I] 
To amend the Small Business Act with respect to subcontracting and 
insourcing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2012 
Mr. MULVANEY introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committee on Oversight 
and Government Reform, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
DECEMBER 27, 2012 
Additional sponsors: Mr. HANNA, Mr. WALSH of Illinois, Mr. CHABOT, Mr. 
GRAVES of Missouri, Mr. WEST, Mr. SCHILLING, Mr. TIPTON, Mrs. 
ELLMERS, and Mr. KINGSTON 
DECEMBER 27, 2012 
Reported from the Committee on Small Business with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 27, 2012 
The Committee on Oversight and Government Reform discharged; committed 
to the Committee of the Whole House on the State of the Union and or-
dered to be printed 
[For text of introduced bill, see copy of bill as introduced on February 2, 2012] 
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A BILL 
To amend the Small Business Act with respect to 
subcontracting and insourcing, and for other purposes. 
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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 
‘‘Subcontracting Transparency and Reliability Act of 
2012’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
TITLE I—LIMITATIONS ON SUBCONTRACTING 
Sec. 101. Limitations on subcontracting. 
Sec. 102. Penalties. 
Sec. 103. Conforming amendments. 
Sec. 104. Guidance. 
TITLE II—SUBCONTRACTING PLANS 
Sec. 201. Subcontracting plans. 
Sec. 202. Notices of subcontracting opportunities. 
TITLE III—INSOURCING 
Sec. 301. Definitions relating to procurement protest system. 
Sec. 302. Insourcing. 
TITLE I—LIMITATIONS ON 
SUBCONTRACTING 
SEC. 101. LIMITATIONS ON SUBCONTRACTING. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 45 as section 47; 
and 
(2) by inserting after section 44 the following: 
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‘‘SEC. 45. LIMITATIONS ON SUBCONTRACTING. 
‘‘(a) IN GENERAL.—If awarded a contract under sec-
tion 8(a), 8(m), 15(a), 31, or 36, a covered small business 
concern— 
‘‘(1) in the case of a contract for services, may 
not expend on subcontractors more than 50 percent of 
the amount paid to the concern under the contract; 
‘‘(2) in the case of a contract for supplies (other 
than from a regular dealer in such supplies), may not 
expend on subcontractors more than 50 percent of the 
amount, less the cost of materials, paid to the concern 
under the contract; 
‘‘(3) in the case of a contract described in more 
than 1 of paragraphs (1) through (4)— 
‘‘(A) shall determine for which category of 
services or supplies, described in 1 of paragraphs 
(1) through (4), the greatest percentage of the 
contract amount is awarded; 
‘‘(B) shall determine the amount awarded 
under the contract for that category of services or 
supplies; and 
‘‘(C) may not expend on subcontractors, 
with respect to the amount determined under 
subparagraph (B), more than— 
‘‘(i) 50 percent of that amount, if the 
category of services or supplies applicable 
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under subparagraph (A) is described in 
paragraph (1); and 
‘‘(ii) 50 percent of that amount, if the 
category of services or supplies applicable 
under subparagraph (A) is described in 
paragraph (2); and 
‘‘(4) in the case of a contract for supplies from 
a regular dealer in such supplies, shall supply the 
product of a domestic small business manufacturer or 
processor, unless a waiver of such requirement is 
granted— 
‘‘(A) by the Administrator, after reviewing 
a determination by the applicable contracting of-
ficer that no small business manufacturer or 
processor can reasonably be expected to offer a 
product meeting the specifications (including pe-
riod for performance) required by the contract; 
or 
‘‘(B) by the Administrator for a product (or 
class of products), after determining that no 
small business manufacturer or processor is 
available to participate in the Federal procure-
ment market. 
‘‘(b) 
SIMILARLY
SITUATED
ENTITIES.—Contract 
amounts expended by a covered small business concern on 
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