SEC. 303. RESTRICTED COMPETITION FOR SMALL BUSI-
NESSES OWNED AND CONTROLLED BY SO-
CIALLY 
AND 
ECONOMICALLY 
DISADVAN-
TAGED INDIVIDUALS. 
(a) AUTHORITY TO RESTRICT COMPETITION.—Sec-
tion 8 of the Small Business Act (15 U.S.C. 637(a)) is 
amended by adding at the end the following new sub-
section: 
‘‘(o) RESTRICTED COMPETITION FOR SMALL BUSI-
NESSES OWNED AND CONTROLLED BY SOCIALLY AND 
ECONOMICALLY DISADVANTAGED INDIVIDUALS.— 
‘‘(1) AUTHORITY TO RESTRICT COMPETITION.— 
In accordance with this subsection, a contracting of-
ficer may restrict competition for any contract for 
the procurement of goods or services by the Federal 
Government to small business concerns owned and 
controlled by socially and economically disadvan-
taged individuals, if— 
‘‘(A) each of the concerns is not less than 
51 percent owned by one or more socially and 
economically disadvantaged individuals (and 
such ownership is determined without regard to 
any community property law); 
‘‘(B) the contracting officer has a reason-
able expectation that two or more small busi-
ness concerns owned and controlled by socially 
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and economically disadvantaged individuals will 
submit offers for the contract; 
‘‘(C) the contract is for the procurement of 
goods or services with respect to an industry 
identified by the Secretary of Commerce as 
underrepresented by small business concerns 
owned and controlled by socially and economi-
cally disadvantaged individuals; 
‘‘(D) the anticipated award price of the 
contract (including options) does not exceed— 
‘‘(i) $10,000,000, in the case of a con-
tract assigned an industrial classification 
code for manufacturing; or 
‘‘(ii) $6,000,000, in the case of all 
other contracts; 
‘‘(E) in the estimation of the contracting 
officer, the contract award can be made at a 
fair and reasonable price; and 
‘‘(F) each of the concerns— 
‘‘(i) is certified by a Federal agency, 
a State government, or a national certi-
fying entity approved by the Adminis-
trator, as a small business concern owned 
and controlled by socially and economically 
disadvantaged individuals; or 
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‘‘(ii) certifies to the contracting officer 
that it is a small business concern owned 
and controlled by socially and economically 
disadvantaged individuals and provides 
adequate documentation, in accordance 
with standards established by the Adminis-
tration, to support such certification. 
‘‘(2) ENFORCEMENT; PENALTIES.— 
‘‘(A) VERIFICATION
OF
ELIGIBILITY.—In 
carrying out this subsection, the Administrator 
shall establish procedures relating to— 
‘‘(i) the filing, investigation, and dis-
position by the Administration of any chal-
lenge to the eligibility of a small business 
concern to receive assistance under this 
subsection (including a challenge, filed by 
an interested party, relating to the veracity 
of a certification made or information pro-
vided to the Administration by a small 
business concern under paragraph (1)(F)); 
and 
‘‘(ii) verification by the Administrator 
of the accuracy of any certification made 
or information provided to the Administra-
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