that covered military construction contract is to be 
performed of such award in a timely manner. 
‘‘(3) FEDERAL PROCUREMENT DATA SYSTEM.— 
The Secretary of Defense shall ensure that there is 
a clear and unique indication of any covered military 
construction contract with subcontracting work of an 
estimated value of $250,000 or more in the Federal 
Procurement Data System established pursuant to 
section 1122(a)(4) of title 41 (or any successor sys-
tem). 
‘‘(b) LOCAL HIRE REQUIREMENTS.— 
‘‘(1) IN GENERAL.—To the extent practicable, 
in awarding a covered military construction contract, 
the Secretary concerned shall give preference to 
those firms and individuals who certify that at least 
51 percent of the total number of employees hired 
to perform the contract (including any employees 
hired by a subcontractor at any tier) shall reside in 
the same State as, or within a 60-mile radius of, the 
location of the work to be performed pursuant to the 
contract. 
‘‘(2) JUSTIFICATION
REQUIRED.—The Sec-
retary concerned shall prepare a written justifica-
tion, and make such justification available on the 
Internet site required under section 2851 of this 
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title, for the award of any covered military construc-
tion contract to a firm or individual that is not de-
scribed under paragraph (1). 
‘‘(c) LICENSING.—A contractor and any subcontrac-
tors performing a covered military construction contract 
shall be licensed to perform the work under such contract 
in the State in which the work will be performed. 
‘‘(d) MONTHLY REPORT.—Not later than 10 days 
after the end of each month, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port identifying for that month the following: 
‘‘(1) Each covered military construction con-
tract and each subcontract of a covered military con-
struction contract described in subsection (a)(1)(A) 
awarded during that month. 
‘‘(2) The location of the work to be performed 
pursuant to each covered military construction con-
tract and subcontract identified pursuant to para-
graph (1). 
‘‘(3) The prime contractor and any subcon-
tractor performing each covered military construc-
tion contract and subcontract identified pursuant to 
paragraph (1). 
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‘‘(4) The estimated value of each covered mili-
tary construction contract and subcontract identified 
pursuant to paragraph (1). 
‘‘(e) EXCLUSION OF CLASSIFIED PROJECTS.—This 
section does not apply to a classified covered military con-
struction project. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COVERED MILITARY CONSTRUCTION CON-
TRACT.—The term ‘covered military construction 
contract’ means a contract for work on a military 
construction project, military family housing project, 
or Facilities Sustainment, Restoration, and Mod-
ernization (FSRM) project carried out in a covered 
State. 
‘‘(2) COVERED
STATE.—The term ‘covered 
State’ means any of the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the United States Virgin 
Islands, or the Commonwealth of the Northern Mar-
iana Islands. 
‘‘(3) MEMBER OF CONGRESS.—The term ‘Mem-
ber of Congress’ has the meaning given in section 
2106 of title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter III of chapter 
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169 of title 10, United States Code, is amended by 
inserting after the item relating to section 2851 the 
following new item: 
‘‘2851a. Requirements relating to the award of covered military construction 
contracts.’’. 
(b) APPLICABILITY.—Section 2851a of title 10, 
United States Code, as added by subsection (a), shall 
apply with respect to a covered military construction con-
tract, as defined in such section, entered into on or after 
the date of the enactment of this Act. 
SEC. 4. SMALL BUSINESS CREDIT FOR LOCAL BUSINESSES. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended by adding at the end the following new sub-
section— 
‘‘(y) SMALL BUSINESS CREDIT FOR LOCAL BUSI-
NESSES.— 
‘‘(1) CREDIT FOR MEETING SUBCONTRACTING 
GOALS.—If a prime contractor awards a subcontract 
(at any tier) to a small business concern that has its 
principal office located in the same State as, or with-
in a 60-mile radius of, the location of the work to 
be performed pursuant to the contract of the prime 
contractor, the value of the subcontract shall be dou-
bled for purposes of determining compliance with the 
goals for procurement contracts under subsection 
(g)(1)(A) during such period. 
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‘‘(2) REPORT.—Along with the report required 
under subsection (h)(1), the head of each Federal 
agency shall submit to the Administrator, and make 
publicly available on the scorecard described in sec-
tion 868(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 
Stat. 933; 15 U.S.C. 644 note), an analysis of the 
number and dollar amount of subcontracts awarded 
pursuant to paragraph (1) for each fiscal year of the 
period described in such paragraph.’’. 
Æ 
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