(B) The prospects for success of the small 
business concern in competing in the private 
sector. 
(C) The access to credit and capital of the 
small business concern. 
(D) The technical and managerial experi-
ence of the managers of the small business con-
cern. 
(E) The operating history of the small 
business concern. 
(F) The demonstrated technical knowledge 
of the small business concern. 
(G) The record of performance on Federal 
and private sector contracts of the small busi-
ness concern. 
(H) The financial history of the small busi-
ness concern. 
(I) Any outside employment of the owner 
of the small business concern. 
(c) NEEDS ASSESSMENT.— 
(1) ASSESSMENT
REQUIRED.—Not less than 
once every two years, the Administrator shall con-
duct a needs assessment of each small business con-
cern participating in the Program under this section. 
Such needs assessment shall include the following:
(A) An assessment of the training and 
skills of the owner of the small business concern 
(including business management training, mar-
keting, accounting, bookkeeping, and Federal 
contracting). 
(B) A determination of the likelihood that 
the small business concern will receive Federal 
prime contracts in its primary industry or in 
associated industry areas through technical as-
sistance and development provided through the 
Program. 
(2) TERMINATION OF PARTICIPATION.—If the 
Administrator determines, pursuant to a needs as-
sessment, that a participating small business con-
cern is not making progress toward financial sound-
ness and participation in Federal contracts, the Ad-
ministrator may terminate the participation of the 
small business concern in the Program. 
(d) NONELIGIBILITY FOR SOLE SOURCE OR COM-
PETITIVE CONTRACTS.—A small business concern partici-
pating in the Program shall not be eligible to be awarded 
a Federal contract awarded using procedures other than 
competitive procedures or a contract awarded using com-
petitive procedures under section 8(a) of the Small Busi-
ness Act (15 U.S.C. 637(a)).
(e) AGREEMENT FOR FACILITATION OF TRAINING.— 
In order to facilitate the provision of technical assistance 
under the Program, the Administrator shall enter into an 
agreement with the Secretary of Defense regarding the 
use of Procurement Technical Assistance Centers. The 
Administrator may enter into such other agreements with 
other providers of technical assistance as the Adminis-
trator finds appropriate. 
(f) COMPLETION OF PROGRAM PARTICIPATION.—A 
small business concern shall have completed the Program 
if the Administrator determines that it is financially sound 
and has successfully performed a Federal contract. 
(g) NET WORTH REQUIREMENTS.— 
(1) ESTABLISHMENT OF MAXIMUM LEVELS.— 
Not later than 180 days, the Administrator shall es-
tablish, for each industry classification, a maximum 
level of net worth for a small business entering the 
Program. In establishing such maximum levels, the 
Administrator shall take into consideration the cap-
ital needs of each industry. 
(2) TREATMENT OF REAL ESTATE.—In deter-
mining the net worth of a small business concern for 
purposes of this subsection, the Administrator shall 
not include the value of any real estate owned by the 
owner of the small business concern.
(3) TRANSITIONAL RULE.—Until the Adminis-
trator establishes maximum net worth levels pursu-
ant to paragraph (1), the maximum net worth of a 
small business eligible to enter the Program shall 
not exceed $750,000. 
TITLE II—MODIFICATIONS TO 
8(a) PROGRAM 
SEC. 201. PURPOSE. 
The purpose of this title is as follows: 
(1) to ensure that the section 8(a) program of 
the Small Business Act continues as an effective de-
velopmental business tool that aids in the further 
growth of minority entrepreneurs. 
(2) To enhance the section 8(a) program to ac-
curately reflect the dynamics of the modern procure-
ment system so as to better equip minority small 
businesses to obtain contracts. 
SEC. 202. ADMINISTRATION OF SECTION 8(A) PROGRAM. 
(a) MODIFICATIONS TO 8(A) PROGRAM.—Notwith-
standing any provision of the Small Business Act (15 
U.S.C. 631 et seq.), the Administrator shall administer 
the program under section 8(a) of such Act with the fol-
lowing modifications: 
(1) PROGRAM PARTICIPATION REQUIREMENT.—
(A) REQUIREMENT.—No small business 
concern shall be eligible to participate in the 
program under section 8(a) of the Small Busi-
ness Act (15 U.S.C. 637(a)) before completing 
the Program established under section 2 
(B) WAIVER OF PARTICIPATION REQUIRE-
MENT.—The requirement under subparagraph 
(A) may be waived if the Administrator deter-
mines that a small business concern is finan-
cially sound and has successfully completed a 
Federal contract. 
(2) LIMITATION
ON
AGGREGATE
VALUE
OF 
CONTRACTS.—The aggregate value of the contracts 
a participant in the program under such section may 
enter into shall not exceed $100,000,000. 
(3) ECONOMIC DISADVANTAGE.— 
(A) DEADLINE
FOR
DETERMINATION
OF 
MAXIMUM LEVELS OF NET WORTH.—Not later 
than 180 days after the date of the enactment 
of this Act, the Administrator shall establish, 
for each industry classification, a maximum 
level of net worth for an economically disadvan-
taged individual. In establishing such maximum 
levels, the Administrator shall take into consid-
eration the capital needs of each industry.
(B) DETERMINATION FOR TERM OF PRO-
GRAM.—For the purpose of this section, an in-
dividual who has been determined by the Ad-
ministrator to be economically disadvantaged at 
the time of program entry shall be deemed to 
be economically disadvantaged for the term of 
the program. 
(C) PERSONAL
NET
WORTH.—In deter-
mining personal net worth for the purpose of 
program entry, the Administrator shall exclude 
from such determination the following: 
(i) The value of any investment of a 
disadvantaged owner have in the small 
business concern, except that such value 
shall be taken into account under this 
paragraph when comparing such concerns 
to other concerns in the same business 
area that are owned by other than socially 
disadvantaged persons. 
(ii) The equity of a disadvantaged 
owner in a primary personal residence. 
(D) MAXIMUM NET WORTH.—The Admin-
istrator shall not establish a maximum net 
worth that prohibits program entry of less than 
$750,000.
(b) MODIFICATIONS TO DEVELOPMENTAL PHASE.— 
(1) ELIGIBILITY
FOR
RESTRICTED
COMPETI-
TION CONTRACTS.—A small business concern par-
ticipating in the developmental phase of such pro-
gram, shall be eligible to enter into a contract 
awarded using procedures other than competitive 
procedures that— 
(A) is assigned an industrial classification 
code for manufacturing and is valued at not 
more than $10,000,000; or 
(B) is assigned an industrial classification 
code other than a code for manufacturing and 
is valued at not more than $6,000,0000. 
(2) DURATION OF PHASE.—A small business 
concern participating in such program shall complete 
the developmental phase of the program in six years. 
(c) MODIFICATIONS TO TRANSITIONAL PHASE.— 
(1) 
REDUCTION
OF
SOLE
SOURCE
CON-
TRACTS.—In each year of the transitional phase, a 
small business concern participating in such pro-
gram shall— 
(A) reduce by 25 percent the aggregate 
value of the contracts it performs that are 
awarded using procedures other than competi-
tive procedures; and
(B) increase the aggregate value of the 
contracts (awarded under this section or other-
wise) it performs that are awarded using com-
petitive procedures. 
(2) ELIGIBILITY
FOR
RESTRICTED
COMPETI-
TION CONTRACTS.—A small business concern par-
ticipating in the transitional phase of such program, 
shall be eligible to enter into a contract awarded 
using procedures other than competitive procedures 
that— 
(A) is assigned an industrial classification 
code for manufacturing and is valued at not 
more than $10,000,000; or 
(B) is assigned an industrial classification 
code other than a code for manufacturing and 
is valued at not more than $6,000,0000. 
(d) EFFECTIVE DATE FOR MODIFICATIONS TO THE 
8(A) PROGRAM.— 
(1) IN GENERAL.—This Act shall apply with re-
spect to small business concerns that apply to the 
program under section 8(a) of the Small Business 
Act after the date of the enactment of this Act. 
(2) TRANSITIONAL
RULE.—A small business 
concern participating in the program under section
8(a) of the Small Business Act (15 U.S.C. 637(a)) 
may participate for not more than ten years. 
TITLE III—POST-8(a) 
ASSISTANCE 
SEC. 1. PURPOSE. 
The purpose of this title is as follows: 
(1) To provide a restricted contracting competi-
tion program limited to small business concerns that 
have successfully graduated from the section 8(a) 
program and certified small disadvantaged busi-
nesses. 
(2) To enable 8(a) program graduates to utilize 
the expertise they have developed during the pro-
gram. 
(3) To increase minority business representa-
tion in the Federal marketplace. 
SEC. 2. RETENTION OF STATUS AFTER COMPLETION OF 
8(A) PROGRAM. 
A small business concern that successfully completes 
the program under section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)) shall be considered a small disadvan-
taged business for purposes of Government contracting 
unless the ownership or control of the small business con-
cern changes.
SEC. 3. 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
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
‘‘(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-
tion by a small business concern under 
paragraph (1)(F). 
‘‘(B) EXAMINATIONS.—The procedures es-
tablished under subparagraph (A) may provide 
for program examinations (including random 
program examinations) by the Administrator of 
any small business concern making a certifi-
cation or providing information to the Adminis-
trator under paragraph (1)(F). 
‘‘(C) PENALTIES.—In addition to the pen-
alties described in section 16(d), any small busi-
ness concern that is determined by the Admin-
istrator to have misrepresented the status of 
that concern as a small business concern owned 
and controlled by socially and economically dis-
advantaged individuals for purposes of this sub-
section, shall be subject to— 
‘‘(i) section 1001 of title 18, United 
States Code; and 
‘‘(ii) sections 3729 through 3733 of 
title 31, United States Code. 
‘‘(3) PROVISION OF DATA.—Upon the request 
of the Administrator, the head of any Federal de-
partment or agency shall promptly provide to the 
Administrator such information as the Adminis-
trator determines to be necessary to carry out this 
subsection. 
‘‘(4) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
‘‘(A) CONTRACTING OFFICER.—The term 
‘contracting officer’ has the meaning given such 
term in section 27(f)(5) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 423(f)(5)). 
‘‘(B) SMALL BUSINESS CONCERN OWNED 
AND CONTROLLED BY SOCIALLY AND ECONOMI-
CALLY
DISADVANTAGED
INDIVIDUALS.—The 
term ‘small business concern owned and con-
trolled by socially and economically disadvan-
taged individuals’ has the meaning given such 
term under subsection (d)(3)(C).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to a contracts an-
nounced after the date of the enactment of this Act. 
Æ