I 
112TH CONGRESS 
2D SESSION 
H. R. 6078 
To amend the Small Business Act to provide for higher goals for procurement 
contracts awarded to small business concerns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2012 
Mr. PETERS (for himself, Ms. HAHN, Mr. SCHRADER, Mr. CICILLINE, and Mr. 
OWENS) introduced the following bill; which was referred to the Com-
mittee on Small Business 
A BILL 
To amend the Small Business Act to provide for higher 
goals for procurement contracts awarded to small busi-
ness concerns, 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. 
This Act may be cited as the ‘‘Small Business Con-
tracting Opportunities Expansion Act of 2012’’. 
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SEC. 2. GOALS FOR PROCUREMENT CONTRACTS AWARDED 
TO SMALL BUSINESS CONCERNS. 
(a) IN GENERAL.—Section 15(g) of the Small Busi-
ness Act (15 U.S.C. 644(g)) is amended by striking the 
subsection enumerator and inserting the following: 
‘‘(g) 
GOALS
FOR
PROCUREMENT
CONTRACTS 
AWARDED TO SMALL BUSINESS CONCERNS.—’’. 
(b) GOVERNMENT-WIDE GOALS.—Paragraph (1) of 
section 15(g) of such Act (15 U.S.C. 644(g)) is amended 
to read as follows: 
‘‘(1) GOVERNMENT-WIDE
GOALS.—The Presi-
dent shall annually establish Government-wide goals 
for procurement contracts awarded to small business 
concerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified HUB-
Zone small business concerns, small business con-
cerns owned and controlled by socially and economi-
cally disadvantaged individuals, and small business 
concerns owned and controlled by women in accord-
ance with the following: 
‘‘(A) The Government-wide goal for par-
ticipation by small business concerns shall be 
established at not less than 26 percent of the 
total value of all prime contract awards for each 
fiscal year and 40 percent of the total value of 
all subcontract awards for each fiscal year. 
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‘‘(B) The Government-wide goal for par-
ticipation by small business concerns owned and 
controlled by service-disabled veterans shall be 
established at not less than 3 percent of the 
total value of all prime contract and at not less 
than 3 percent of the total value of all sub-
contract awards for each fiscal year. 
‘‘(C) The Government-wide goal for par-
ticipation by qualified HUBZone small business 
concerns shall be established at not less than 3 
percent of the total value of all prime contract 
and at not less than 3 percent of the total value 
of all subcontract awards for each fiscal year. 
‘‘(D) The Government-wide goal for par-
ticipation by small business concerns owned and 
controlled by socially and economically dis-
advantaged individuals shall be established at 
not less than 6 percent of the total value of all 
prime contract and at not less than 6 percent 
of the total value of all subcontract awards for 
each fiscal year. 
‘‘(E) The Government-wide goal for par-
ticipation by small business concerns owned and 
controlled by women shall be established at not 
less than 5 percent of the total value of all 
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prime contract and at not less than 5 percent 
of the total value of all subcontract awards for 
each fiscal year.’’. 
(c) AGENCY GOALS.—Paragraph (2) of section 15(g) 
of such Act (15 U.S.C. 644(g)) is amended to read as fol-
lows: 
‘‘(2) AGENCY GOALS.— 
‘‘(A) ESTABLISHMENT.— 
‘‘(i) IN GENERAL.—The head of each 
Federal agency shall annually establish, for 
the agency that individual heads, a goal for 
procurement contracts awarded to— 
‘‘(I) small business concerns; 
‘‘(II) small business concerns 
owned and controlled by service-dis-
abled veterans; 
‘‘(III) qualified HUBZone small 
business concerns; 
‘‘(IV) small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals; and 
‘‘(V) small business concerns 
owned and controlled by women. 
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‘‘(ii) CERTAIN GOALS DERIVED FROM 
PRIOR
FISCAL
YEAR
PARTICIPATION 
RATES.—For each fiscal year— 
‘‘(I) each goal established under 
clause (i)(II) shall be not less than 
the average of the percentage of par-
ticipation by small business concerns 
owned and controlled by service-dis-
abled veterans in each of the 3 pre-
ceding fiscal years; 
‘‘(II) each goal established under 
clause (i)(III) shall be not less than 
the average of the percentage of par-
ticipation 
by 
qualified 
HUBZone 
small business concerns in each of the 
3 preceding fiscal years; 
‘‘(III) 
each 
goal 
established 
under clause (i)(IV) shall be not less 
than the average of the percentage of 
participation by small business con-
cerns owned and controlled by socially 
and economically disadvantaged indi-
viduals in each of the 3 preceding fis-
cal years; and 
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‘‘(C) CONSULTATION REQUIRED.— 
‘‘(i) IN
GENERAL.—In establishing 
goals under subparagraph (A), the head of 
each Federal agency shall consult with the 
Administrator. 
‘‘(ii) DISAGREEMENTS.—If the Ad-
ministrator and the head of a Federal 
agency fail to agree on a goal established 
under subparagraph (A), the disagreement 
shall be submitted to the Administrator for 
Federal Procurement Policy for final deter-
mination. 
‘‘(D) PLAN FOR ACHIEVING GOALS.—After 
establishing goals under subparagraph (A) for a 
fiscal year, the head of each Federal agency 
shall develop a plan for achieving such goals, 
which shall apportion responsibilities among the 
employees of such agency having procurement 
powers. 
‘‘(E) EXPANDED PARTICIPATION.—In es-
tablishing goals under subparagraph (A), the 
head of each Federal agency shall make a con-
sistent effort to annually expand participation 
by small business concerns from each industry 
category in procurement contracts of such agen-
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cy, including participation by small business 
concerns owned and controlled by service-dis-
abled veterans, qualified HUBZone small busi-
ness concerns, small business concerns owned 
and controlled by socially and economically dis-
advantaged individuals, and small business con-
cerns owned and controlled by women. 
‘‘(F) CONSIDERATION.—The head of each 
Federal agency, in attempting to attain ex-
panded participation under subparagraph (E), 
shall consider— 
‘‘(i) contracts awarded as the result of 
unrestricted competition; and 
‘‘(ii) contracts awarded after competi-
tion restricted to eligible small business 
concerns under this section and under the 
program established under section 8(a). 
‘‘(G) 
COMMUNICATION
REGARDING 
GOALS.— 
‘‘(i) 
IMPORTANCE
OF
ACHIEVING 
GOALS.—Each procurement employee or 
program manager described in clause (ii) 
shall communicate to the subordinates of 
the procurement employee or program 
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manager the importance of achieving goals 
established under subparagraph (A). 
‘‘(ii) PROCUREMENT
EMPLOYEES
OR 
PROGRAM MANAGERS DESCRIBED.—A pro-
curement employee or program manager 
described in this clause is a senior procure-
ment executive, senior program manager, 
or Director of Small and Disadvantaged 
Business Utilization of a Federal agency 
having contracting authority.’’. 
(d) ENFORCEMENT; DETERMINATIONS
OF
THE 
TOTAL VALUE OF CONTRACT AWARDS.—Section 15(g) of 
the Small Business Act (15 U.S.C. 644(g)), as amended 
by this Act, is further amended by adding at the end the 
following: 
‘‘(3) ENFORCEMENT.—If the Administrator 
does not issue the report required in paragraph (2) 
on or before the date that is 120 days after the end 
of the prior fiscal year, the Administrator may not 
carry out or establish any pilot program until the 
date on which the Administrator issues the report. 
‘‘(4) DETERMINATIONS OF THE TOTAL VALUE 
OF CONTRACT AWARDS.—For purposes of the goals 
established under paragraphs (1) and (2), the total 
value of contract awards for a fiscal year may not 
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be determined in a manner that excludes the value 
of a contract based on— 
‘‘(A) where the contract is awarded; 
‘‘(B) where the contract is performed; 
‘‘(C) whether the contract is mandated by 
Federal law to be performed by an entity other 
than a small business concern; 
‘‘(D) whether funding for the contract is 
made available in an appropriations Act, if the 
contract is subject to competition in the Con-
tract Act; or 
‘‘(E) whether the contract is subject to the 
Federal Acquisition Regulation.’’. 
SEC. 3. STUDIES ON HOW TO IMPROVE PARTICIPATION IN 
FEDERAL 
CONTRACTING 
BY 
TARGETED 
GROUPS. 
(a) INTERNAL AGENCY PROCESSES.—Not later than 
December 31, 2013, the Comptroller General of the 
United States, in consultation with the Administrator of 
the Small Business Administration and the Administrator 
of General Services, shall complete a study and submit a 
report to Congress on improving internal processes of 
agencies engaged in contracting or procurement and in-
creasing outreach to those groups that are the subject of 
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contracting goals under section 15(g)(1) of the Small 
Business Act. 
(b) RECOMMENDED
LEGISLATIVE
ACTION.—Not 
later than December 31, 2013, the Comptroller General 
of the United States, in consultation with the Adminis-
trator of the Small Business Administration and the Ad-
ministrator of General Services, shall complete a study 
and submit a report to Congress on legislative actions 
Congress can take to improve participation in contracting 
by those groups that are the subject of contracting goals 
under section 15(g)(1) of the Small Business Act. 
(c) NEW GOVERNMENT-WIDE GOALS FOR CERTAIN 
SMALL BUSINESSES.—Not later than December 31, 2013, 
the Comptroller General of the United States, in consulta-
tion with the Administrator of the Small Business Admin-
istration, the Secretary of Veterans Affairs, and the Ad-
ministrator of General Services, shall complete a study 
and submit a report to Congress on the feasibility of the 
creation of a Government-wide goal for contracting with 
small business concerns owned and controlled by veterans. 
SEC. 4. INCREASE IN GOVERNMENT-WIDE GOAL FOR ALL 
TARGETED GROUPS IN 2018. 
(a) IN GENERAL.—Section 15(g)(1) of the Small 
Business Act (15 U.S.C. 644(g)(1)), as amended by this 
Act, is further amended— 
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(1) in subparagraph (A), by striking ‘‘26 per-
cent’’ and inserting ‘‘27 percent’’; 
(2) in subparagraph (C), by striking ‘‘3 per-
cent’’ each place it appears and inserting ‘‘4 per-
cent’’; 
(3) in subparagraph (D), by striking ‘‘6 per-
cent’’ each place it appears and inserting ‘‘7.5 per-
cent’’; and 
(4) in subparagraph (E), by striking ‘‘5 per-
cent’’ each place it appears and inserting ‘‘6 per-
cent’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect beginning on fiscal year 2017. 
Æ 
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