I 
110TH CONGRESS 
1ST SESSION H. R. 1873 
To reauthorize the programs and activities of the Small Business 
Administration relating to procurement, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 17, 2007 
Mr. BRALEY of Iowa (for himself, Mr. CHABOT, and Ms. VELA´ZQUEZ) intro-
duced the following bill; which was referred to the Committee on Small 
Business 
A BILL 
To reauthorize the programs and activities of the Small 
Business Administration relating to procurement, 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 
‘‘Small Business Fairness in Contracting Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—CONTRACT BUNDLING 
Sec. 101. Definitions of bundling of contract requirements and related terms. 
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Sec. 102. Justification. 
Sec. 103. Appeals. 
Sec. 104. Third-party review. 
TITLE II—INCREASING THE NUMBER OF SMALL BUSINESS 
CONTRACTS AND SUBCONTRACTS 
Sec. 201. Small business goal. 
Sec. 202. Include overseas contracts in small business goal. 
Sec. 203. Annual goal negotiation. 
Sec. 204. Goal reasonableness. 
Sec. 205. Usage of small companies in goal achievement. 
Sec. 206. Making small businesses the first choice. 
Sec. 207. Subcontracting goals. 
Sec. 208. Subcontracting enforcement. 
Sec. 209. National database. 
Sec. 210. Review of subcontracting plans. 
TITLE III—PROTECTION OF TAXPAYERS FROM FRAUD 
Sec. 301. Small business size protest notification. 
Sec. 302. Review of national registry. 
Sec. 303. Recertification of compliance with size standards and registration 
with Central Contractor Registry. 
TITLE IV—AUTHORIZATION OF APPROPRIATIONS 
Sec. 401. Authorization of appropriations. 
TITLE I—CONTRACT BUNDLING 
SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT RE-
QUIREMENTS AND RELATED TERMS. 
Section 3 of the Small Business Act (15 U.S.C. 632) 
is amended by amending subsection (o) to read as follows: 
‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE-
QUIREMENTS AND RELATED TERMS.—For purposes of 
this Act: 
‘‘(1) BUNDLED CONTRACT.—The term ‘bundled 
contract’ means a contract or order that is entered 
into to meet requirements that are consolidated in a 
bundling of contract requirements without regard to 
its designation by the procuring agency or whether 
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a study of the effects of the solicitation on civilian 
or military personnel has been made. 
‘‘(2) 
BUNDLING
OF
CONTRACT
REQUIRE-
MENTS.—The term ‘bundling of contract require-
ments’ means the use of any bundling methodology 
to satisfy 2 or more requirements for new or existing 
goods or services, including any services for con-
struction, that is likely to be unsuitable for award to 
a small business concern due to— 
‘‘(A) the diversity, size, or specialized na-
ture of the elements of the performance speci-
fied; 
‘‘(B) the aggregate dollar value of the an-
ticipated award; 
‘‘(C) the geographical dispersion of the 
contract or order performance sites; or 
‘‘(D) any combination of the factors de-
scribed in subparagraphs (A), (B), and (C). 
‘‘(3) BUNDLING
METHODOLOGY.—The term 
‘bundling methodology’ means— 
‘‘(A) a solicitation to obtain offers for a 
single contract or order, or a multiple award 
contract or order; 
‘‘(B) a solicitation of offers for the 
issuance of a task or a delivery order under an 
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existing single or multiple award contract or 
order; or 
‘‘(C) the creation of any new procurement 
requirement that permits a consolidation of 
contract or order requirements’’. 
SEC. 102. JUSTIFICATION. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended— 
(1) by striking ‘‘is in a quantity or estimated 
dollar value the magnitude of which renders small 
business prime contract participation unlikely’’ and 
inserting ‘‘would now be combined with other re-
quirements for goods and services’’; 
(2) by striking ‘‘(2) why delivery schedules’’ 
and inserting ‘‘(2) the names, addresses and size of 
the incumbent contract holders; (3) a description of 
the industries that might be interested in bidding on 
the contract requirements; (4) the number of small 
businesses listed in the industry categories that 
could be excluded from future bidding if the contract 
is combined or packaged; (5) why delivery sched-
ules’’; 
(3) by striking ‘‘(3) why the proposed acquisi-
tion’’ and inserting ‘‘(6) why the proposed acquisi-
tion’’; 
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(4) by striking ‘‘(4) why construction’’ and in-
serting ‘‘(7) why construction’’; 
(5) by striking ‘‘(5) why the agency’’ and in-
serting ‘‘(8) why the agency’’; and 
(6) by inserting after ‘‘prime contracting oppor-
tunities.’’ the following: ‘‘If no notification of the 
procurement and accompanying statement is re-
ceived, but the Administrator determines that there 
is cause to believe the contract combines require-
ments or discrete construction projects or includes 
unjustified bundling, then the Administrator can de-
mand that such a statement of work goods or serv-
ices be completed by the procurement activity and 
sent to the Procurement Center Representative and 
the solicitation process postponed for at least 10 
days to allow the Administrator to review the state-
ment and make recommendations as described in 
this section before the procurement is continued.’’ 
SEC. 103. APPEALS. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended— 
(1) by striking ‘‘If a proposed procurement in-
cludes in its statement’’ and inserting ‘‘If a proposed 
procurement would negatively affect one or more 
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small business concerns, or if a proposed procure-
ment includes in its statement’’; and 
(2) by inserting before ‘‘Whenever the Adminis-
trator and the contracting procurement agency fail 
to agree,’’ the following: ‘‘If a small business con-
cern would be adversely affected, directly or indi-
rectly, by the procurement as proposed, and that 
small business concern or a trade association on be-
half of that small business concern so requests, the 
Administrator may, in the Administrator’s discre-
tion, take action to further the interests of that 
small business concern.’’. 
SEC. 104. THIRD-PARTY REVIEW. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended by striking the sentence beginning 
‘‘Whenever the Administrator and the contracting pro-
curement agency fail to agree,’’ and inserting the fol-
lowing: ‘‘Whenever the Administrator and the contracting 
procurement agency fail to agree, the Administrator shall 
submit the matter to the Administrator of the Office of 
Federal Procurement Policy within the Office of Manage-
ment and Budget, who shall render his decision regarding 
the matter not later than 10 days after receiving the mat-
ter.’’. 
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TITLE 
II—INCREASING 
THE 
NUMBER OF SMALL BUSINESS 
CONTRACTS 
AND 
SUB-
CONTRACTS 
SEC. 201. SMALL BUSINESS GOAL. 
Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)) is amended by striking ‘‘23 percent’’ 
and inserting ‘‘30 percent’’. 
SEC. 202. INCLUDE OVERSEAS CONTRACTS IN SMALL BUSI-
NESS GOAL. 
Section 15(g) of the Small Business Act (15 U.S.C. 
644(g)) is amended by adding at the end the following: 
‘‘(3) The procurement goals required by this sub-
section apply to all procurement contracts, without regard 
to whether the contract is for work within or outside the 
United States.’’. 
SEC. 203. ANNUAL GOAL NEGOTIATION. 
Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)) is amended by striking ‘‘The President 
shall annually establish Government-wide goals for pro-
curement contracts’’ and inserting ‘‘The President shall 
before the close of each fiscal year establish new Govern-
ment-wide procurement goals for the following fiscal year 
for procurement contracts’’. 
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SEC. 204. GOAL REASONABLENESS. 
Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)) is amended by striking ‘‘Notwith-
standing the Government-wide goal, each agency shall 
have an annual goal’’ and inserting ‘‘Each agency shall 
have an annual goal, not lower than the Government-wide 
goal,’’. 
SEC. 205. USAGE OF SMALL COMPANIES IN GOAL ACHIEVE-
MENT. 
Section 15(g) of the Small Business Act (15 U.S.C. 
644(g)) is amended by adding at the end the following: 
‘‘(4) For purposes of this subsection and subsection 
(h), a small business concern shall be counted toward one 
additional category goal only, even if that small business 
concern otherwise qualifies under more than one category 
goal. In this paragraph, the term ‘category goal’ means 
a goal described in paragraph (2).’’. 
SEC. 206. MAKING SMALL BUSINESSES THE FIRST CHOICE. 
Section 15(j) of the Small Business Act (15 U.S.C. 
644(j)) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘or order’’ after ‘‘Each 
contract’’; and 
(B) by striking ‘‘$100,000’’ and insert 
‘‘the Simplified Acquisition Threshold’’; and 
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(2) in paragraph (3), by striking ‘‘subsection 
(a) of section 8’’ and inserting ‘‘section 8, 31, or 
36’’. 
SEC. 207. SUBCONTRACTING GOALS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by adding at the end the following:. 
‘‘(12) In carrying out this subsection, the Adminis-
trator shall require each prime contractor to report small 
business subcontract usage at all tiers based on the per-
centage of the total dollar amount of the contract award.’’. 
SEC. 208. SUBCONTRACTING ENFORCEMENT. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by adding at the end the following: 
‘‘(13) In carrying out this subsection, the Adminis-
trator shall develop and maintain a password-protected 
database that will enable the Administration to assist 
small businesses in marketing to large corporations that 
have not achieved their small business goals.’’. 
SEC. 209. NATIONAL DATABASE. 
The Administrator of the Small Business Administra-
tion shall ensure that whenever a small business enters 
its information in the Central Contractor Registry, or any 
successor to that registry, the Administrator contacts that 
business within 30 days regarding the likelihood of Fed-
eral contracting opportunities. The Administrator shall 
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ensure that each small business that so registers is, for 
each industry code entered by that small business, pro-
vided with the total dollar value of government contract 
awards to small businesses for that industry. 
SEC. 210. REVIEW OF SUBCONTRACTING PLANS. 
Not later than 120 days after the date of the enact-
ment of this section, the Administrator of the Small Busi-
ness Administration shall, after an opportunity for notice 
and comment, prescribe regulations to govern the Admin-
istrator’s review of subcontracting plans, including stand-
ards for determining good faith effort in compliance with 
the subcontracting plans. 
TITLE III—PROTECTION OF 
TAXPAYERS FROM FRAUD 
SEC. 301. SMALL BUSINESS SIZE PROTEST NOTIFICATION. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration shall work with appropriate Fed-
eral agencies to ensure that whenever a business fails to 
prevail in a protest over size, a notification shall be placed 
adjacent to that concern’s listing in the Central Con-
tractor Registry (or any successor to that registry). 
(b) COMPTROLLER GENERAL CERTIFICATION.—The 
Administrator shall, in making any report of small busi-
ness goal accomplishments, qualify the accomplishments 
as ‘‘estimated’’, until the Administrator obtains from the 
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Comptroller General the Comptroller General’s certifi-
cation that there are no data integrity issues with respect 
to the national repository of contract award information 
known as Federal Procurement Data System-Next Gen-
eration (FPDS–NG), or any successor to that repository. 
(c) AWARDS TO LARGE BUSINESSES.—The Inspector 
General of the Small Business Administration shall, on an 
annual basis, submit to Congress a report on the number 
and dollar value of contract awards that were coded as 
awards to small business concerns but in fact were made 
to businesses that did not qualify as small business con-
cerns. 
SEC. 302. REVIEW OF NATIONAL REGISTRY. 
The Administrator of the Small Business Administra-
tion shall ensure, on a biannual basis, that an independent 
audit is performed of the Central Contractor Registry, or 
any successor to that registry, and that the Dynamic 
Small Business Search portion of the registry, or any suc-
cessor to that portion of the registry, is purged of any 
businesses that are not in fact small businesses. If a busi-
ness that has been so purged attempts, while not in fact 
a small business, to re-register, that business is subject 
to debarment as a Federal contractor and is further sub-
ject to penalties outlined in section 16 of the Small Busi-
ness Act (15 U.S.C. 645). 
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SEC. 303. RECERTIFICATION OF COMPLIANCE WITH SIZE 
STANDARDS AND REGISTRATION WITH CEN-
TRAL CONTRACTOR REGISTRY. 
Section 3(a) of the Small Business Act (15 U.S.C. 
632(a)) is amended by adding at the end the following: 
‘‘(5) RECERTIFICATION.— 
‘‘(A) IN GENERAL.—If a business concern is 
awarded a contract because of a standard by which 
it is determined to be a small business concern, and 
the business concern is close to exceeding that 
standard at the time the award is made, then the 
business concern must, annually after the date of 
the award, recertify to the agency awarding the con-
tract whether it meets that standard. 
‘‘(B) ‘CLOSE TO EXCEEDING’.—For purposes of 
subparagraph (A), a business concern is close to ex-
ceeding— 
‘‘(i) a number-of-employees standard if the 
number of employees of the business concern is 
95 percent or more of the maximum number of 
employees allowed under the standard; and 
‘‘(ii) a dollar-volume-of-business standard 
if the dollar volume of business is 80 percent or 
more of the maximum dollar volume allowed 
under the standard. 
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