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‘‘(C) if a subcontractor for a small busi-
ness concern owned and controlled by women 
(as defined in section 8(m)), is such a concern; 
‘‘(D) if a subcontractor for a small busi-
ness concern owned and controlled by women 
(as defined in section 8(m)) that is not less 
than 51 percent owned by 1 or more women 
who are economically disadvantaged (and such 
ownership is determined without regard to any 
community property law), is such a concern; 
‘‘(E) if a subcontractor for a qualified 
HUBZone small business concern, is such a 
concern; or 
‘‘(F) if a subcontractor for a small busi-
ness concern owned and controlled by service- 
disabled veterans, is such a concern.’’. 
SEC. 1652. PENALTIES. 
Section 16 of the Small Business Act (15 U.S.C. 645) 
is amended by adding at the end the following: 
‘‘(g) SUBCONTRACTING LIMITATIONS.— 
‘‘(1) IN GENERAL.—Whoever violates a require-
ment established under section 45 shall be subject to 
the penalties prescribed in subsection (d), except 
that, for an entity that exceeded a limitation on sub-
contracting under such section, the fine described in 
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subsection (d)(2)(A) shall be treated as the greater 
of— 
‘‘(A) $500,000; or 
‘‘(B) the dollar amount expended, in excess 
of permitted levels, by the entity on subcontrac-
tors. 
‘‘(2) MONITORING.—Not later than 1 year after 
the date of enactment of this subsection, the Admin-
istrator shall take such actions as are necessary to 
ensure that an existing Federal subcontracting re-
porting system is modified to notify the Adminis-
trator, the appropriate Director of the Office of 
Small and Disadvantaged Business Utilization, and 
the appropriate contracting officer if a requirement 
established under section 45 is violated.’’. 
SEC. 1653. CONFORMING AMENDMENTS. 
(a) HUBZONES.—Section 3(p)(5) of the Small Busi-
ness Act (15 U.S.C. 632(p)(5)) is amended— 
(1) in subparagraph (A)(i) by striking sub-
clause (III) and inserting the following: 
‘‘(III) with respect to any sub-
contract entered into by the small 
business concern pursuant to a con-
tract awarded to the small business 
concern under section 31, the small 
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business concern will ensure that the 
requirements of section 45 are satis-
fied; and’’; 
(2) by striking subparagraphs (B) and (C); and 
(3) by redesignating subparagraph (D) as sub-
paragraph (B). 
(b) ENTITIES ELIGIBLE
FOR CONTRACTS UNDER 
SECTION 8(a).—Section 8(a) of such Act (15 U.S.C. 
637(a)) is amended by striking paragraph (14) and insert-
ing the following: 
‘‘(14) LIMITATIONS ON SUBCONTRACTING.—A 
concern may not be awarded a contract under this 
subsection as a small business concern unless the 
concern agrees to satisfy the requirements of section 
45.’’. 
(c) SMALL BUSINESS CONCERNS.—Section 15 of 
such Act (15 U.S.C. 644) is amended by striking sub-
section (o) and inserting the following: 
‘‘(o) LIMITATIONS ON SUBCONTRACTING.—A concern 
may not be awarded a contract under subsection (a) as 
a small business concern unless the concern agrees to sat-
isfy the requirements of section 45.’’. 
SEC. 1654. REGULATIONS. 
Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Small Business Ad-
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ministration shall issue guidance with respect to compli-
ance with the changes made to the Small Business Act 
by the amendments in this part, with opportunities for no-
tice and comment. 
Subpart B—Subcontracting Plans 
SEC. 1655. SUBCONTRACTING PLANS. 
(a) 
SUBCONTRACTING
REPORTING
REQUIRE-
MENTS.— 
(1) IN GENERAL.—Section 8(d)(6) of the Small 
Business Act (15 U.S.C. 637(d)(6)) is amended— 
(A) by striking ‘‘(6) Each subcontracting 
plan’’ and inserting the following: 
‘‘(6) 
SUBCONTRACTING
PLAN
REQUIRE-
MENTS.—Each subcontracting plan’’; 
(B) by amending subparagraph (E) to read 
as follows: 
‘‘(E) assurances that the offeror or bidder 
will— 
‘‘(i) submit— 
‘‘(I) not later than 180 days 
after the date on which performance 
under the applicable contract begins, 
and every 180 days thereafter until 
contract performance ends, a report 
that describes all subcontracting ac-
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tivities under the contract during the 
preceding 180-day period; 
‘‘(II) not later than 1 year after 
the date on which performance under 
the applicable contract begins, and 
annually thereafter until contract per-
formance ends, a report that describes 
all subcontracting activities under the 
contract that have occurred before the 
date on which the report is submitted; 
and 
‘‘(III) not later than 30 days 
after the date on which performance 
under the applicable contract ends, a 
report that describes all subcon-
tracting activities under the contract; 
and 
‘‘(ii) cooperate with any study or sur-
vey required by the applicable Federal 
agency or the Administration to determine 
the extent of compliance by the offeror or 
bidder with the subcontracting plan;’’; and 
(C) by moving the margins for subpara-
graphs (A), (B), (C), (D), and (F) 2 ems to the 
right (so that the align with subparagraph (E), 
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as amended by subparagraph (B) of this para-
graph). 
(2) REPORTING SYSTEM MODIFICATION.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this part, the 
Administrator of the Small Business Adminis-
tration shall take such actions as are necessary 
to ensure that the Federal subcontracting re-
porting system to which covered reports are 
submitted is modified to notify the Adminis-
trator, the appropriate contracting officer, and 
the appropriate Director of Small and Dis-
advantaged Business Utilization if an entity 
fails to submit a required covered report. If the 
Administrator does not modify the subcon-
tracting reporting system on or before the date 
that is 1 year after the date of enactment of 
this part, the Administrator may not carry out 
or establish any pilot program until the date 
the Administrator modifies the reporting sys-
tem. 
(B) COVERED REPORT DEFINED.—In this 
paragraph, the term ‘‘covered report’’ means a 
report submitted in accordance with assurances 
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provided under section 8(d)(6)(E) of the Small 
Business Act (15 U.S.C. 637(d)(6)(E)). 
(b) FAILURE TO SUBMIT SUBCONTRACTING RE-
PORTS AS BREACH OF CONTRACT.—Section 8(d)(8) of 
such Act (15 U.S.C. 637(d)(8)) is amended— 
(1) by striking ‘‘(8) The failure’’ and inserting 
the following: 
‘‘(8) MATERIAL BREACH.—The failure’’; 
(2) in subparagraph (A) by striking ‘‘sub-
section, or’’ and inserting ‘‘subsection,’’; 
(3) in subparagraph (B) by striking ‘‘sub-
contract,’’ and inserting ‘‘subcontract, or’’; 
(4) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) assurances provided under paragraph 
(6)(E),’’; and 
(5) by moving the margins of subparagraphs 
(A), (B), and the matter following subparagraph (B) 
2 ems to the right. 
(c) AUTHORITY OF SMALL BUSINESS ADMINISTRA-
TION.—Section 8(d)(10) of such Act (15 U.S.C. 
637(d)(10)) is amended— 
(1) by striking ‘‘(10) In the case of’’ and insert-
ing the following: 
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‘‘(10) AUTHORITY
OF
ADMINISTRATION.—In 
the case of’’; 
(2) in subparagraph (B) by striking ‘‘, which 
shall be advisory in nature,’’; 
(3) in subparagraph (C) by striking ‘‘, either on 
a contract-by-contract basis, or in the case contrac-
tors’’ and inserting ‘‘as a supplement to evaluations 
performed by the contracting agency, either on a 
contract-by-contract basis or, in the case of contrac-
tors’’; and 
(4) by moving the margins of subparagraphs 
(A) through (C) 2 ems to the right. 
(d) APPEALS.—Section 8(d) of such Act (15 U.S.C. 
637(d)) is amended by adding at the end the following: 
‘‘(13) REVIEW AND ACCEPTANCE OF SUBCON-
TRACTING PLANS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (E), if a procurement center rep-
resentative or commercial market representative 
determines that a subcontracting plan required 
under paragraph (4) or (5) fails to provide the 
maximum practicable opportunity for covered 
small business concerns to participate in the 
performance of the contract to which the plan 
applies, such representative may delay accept-
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ance of the plan in accordance with subpara-
graph (B). 
‘‘(B) PROCESS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a procurement center 
representative or commercial market rep-
resentative who makes the determination 
under subparagraph (A) with respect to a 
subcontracting plan may delay acceptance 
of the plan for a 30-day period by pro-
viding written notice of such determination 
to head of the procuring activity of the 
contracting agency. Such notice shall in-
clude recommendations for altering the 
plan to provide the maximum practicable 
opportunity described in that subpara-
graph. 
‘‘(ii) EXCEPTION.—In the case of the 
Department of Defense, a procurement 
center representative or commercial market 
representative who makes the determina-
tion under subparagraph (A) with respect 
to a subcontracting plan may delay accept-
ance of the plan for a 15-day period by 
providing written notice of such determina-
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tion to appropriate personnel of the De-
partment of Defense. Such notice shall in-
clude recommendations for altering the 
plan to provide the maximum practicable 
opportunity described in that subpara-
graph. The authority of a procurement 
center representative or commercial market 
representative to delay acceptance of a 
subcontracting plan as provided in sub-
paragraph (A), does not include the au-
thority to delay the award or performance 
of the contract concerned. 
‘‘(C) DISAGREEMENTS.—If a procurement 
center representative or commercial market rep-
resentative delays the acceptance of a subcon-
tracting plan under subparagraph (B) and does 
not reach agreement with head of the procuring 
activity of the contracting agency to alter the 
plan to provide the maximum practicable oppor-
tunity described in subparagraph (A) not later 
than 30 days from the date written notice was 
provided, the disagreement shall be submitted 
to the head of the contracting agency by the 
Administrator for a final determination. 
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‘‘(D) COVERED
SMALL
BUSINESS
CON-
CERNS DEFINED.—In this paragraph, the term 
‘covered small business concerns’ means small 
business concerns, qualified HUBZone small 
business concerns, small business concerns 
owned and controlled by veterans, small busi-
ness concerns owned and controlled by service- 
disabled veterans, small business concerns 
owned and controlled by socially and economi-
cally disadvantaged individuals, and small busi-
ness concerns owned and controlled by women. 
‘‘(E) EXCEPTION.—The procurement cen-
ter representative or commercial market rep-
resentative may not delay the acceptance of a 
subcontracting plan if the appropriate personnel 
of the contracting agency certify that the agen-
cy’s need for the property or services is of such 
an unusual and compelling urgency that the 
United States would be seriously injured unless 
the agency is permitted to accept the subcon-
tracting plan.’’. 
SEC. 1656. NOTICES OF SUBCONTRACTING OPPORTUNI-
TIES. 
Section 8(k)(1) of the Small Business Act (15 U.S.C. 
637(k)(1)) is amended by striking ‘‘in the Commerce 
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Business Daily’’ and inserting ‘‘on the appropriate Fed-
eral Web site (as determined by the Administrator)’’. 
SEC. 1657. REGULATIONS. 
Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Small Business Ad-
ministration shall issue guidance with respect to the 
changes made to the Small Business Act, with opportunity 
for notice and comment. 
Subpart C—Publication of Certain Documents 
SEC. 1658. PUBLICATION OF CERTAIN DOCUMENTS. 
The Small Business Act (15 U.S.C. 631 et seq.), as 
amended by this part, is further amended by inserting 
after section 45 the following: 
‘‘SEC. 46. PUBLICATION OF CERTAIN DOCUMENTS. 
‘‘A Federal agency, other than the Department of 
Defense, may only convert a function that is being per-
formed by a small business concern to performance by a 
Federal employee if the agency has made publicly available 
the procedures and methodologies of the agency with re-
spect to decisions to convert a function being performed 
by a small business concern to performance by a Federal 
employee, including procedures and methodologies for de-
termining which contracts will be studied for potential 
conversion; procedures and methodologies by which a con-
tract is evaluated as inherently governmental or as a crit-
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ical agency function; and procedures and methodologies 
for estimating and comparing costs.’’. 
PART V—SMALL BUSINESS CONCERN SIZE 
STANDARDS 
SEC. 1661. SMALL BUSINESS CONCERN SIZE STANDARDS. 
Section 3 of the Small Business Act (15 U.S.C. 632) 
is amended— 
(1) by striking ‘‘SEC. 3.’’ and inserting the fol-
lowing: 
‘‘SEC. 3. DEFINITIONS.’’; 
and 
(2) in subsection (a)— 
(A) by striking the subsection enumerator 
and inserting the following: 
‘‘(a) SMALL BUSINESS CONCERNS.—’’; 
(B) in paragraph (1) by striking ‘‘(1) For 
the purposes’’ and inserting the following: 
‘‘(1) IN GENERAL.—For the purposes’’; 
(C) in paragraph (3) by striking ‘‘(3) 
When establishing’’ and inserting the following: 
‘‘(3) VARIATION BY INDUSTRY AND CONSIDER-
ATION OF OTHER FACTORS.—When establishing’’; 
(D) by moving paragraph (5), including 
each subparagraph and clause therein, 2 ems to 
the right; and 
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(E) by adding at the end the following: 
‘‘(6) PROPOSED RULE MAKING.—In conducting 
rulemaking to revise, modify or establish size stand-
ards pursuant to this section, the Administrator 
shall consider, and address, and make publicly avail-
able as part of the notice of proposed rule making 
and notice of final rule each of the following: 
‘‘(A) a detailed description of the industry 
for which the new size standard is proposed; 
‘‘(B) an analysis of the competitive envi-
ronment for that industry; 
‘‘(C) the approach the Administrator used 
to develop the proposed standard including the 
source of all data used to develop the proposed 
rulemaking; and 
‘‘(D) the anticipated effect of the proposed 
rulemaking on the industry, including the num-
ber of concerns not currently considered small 
that would be considered small under the pro-
posed rulemaking and the number of concerns 
currently considered small that would be 
deemed other than small under the proposed 
rulemaking. 
‘‘(7) COMMON SIZE STANDARDS.—In carrying 
out this subsection, the Administrator may establish 
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or approve a single size standard for a grouping of 
four digit North American Industrial Classification 
codes only if the Administrator makes publicly avail-
able, not later than the date on which such size 
standard is established or approved, a justification 
demonstrating that such size standard is appropriate 
for each individual industry classification included in 
the grouping. 
‘‘(8) NUMBER OF SIZE STANDARDS.—The Ad-
ministrator shall not limit the number of size stand-
ards it creates pursuant to paragraph (2), and shall 
assign the appropriate size standard to each North 
American Industrial Classification System Code’’. 
PART VI—CONTRACT BUNDLING 
SEC. 1671. CONSOLIDATION OF PROVISIONS RELATING TO 
CONTRACT BUNDLING. 
Section 44 of the Small Business Act (15 U.S.C. 
657q) is amended to read as follows: 
‘‘SEC. 44. CONTRACT BUNDLING. 
‘‘(a) DEFINITIONS.—In this Act: 
‘‘(1) BUNDLED CONTRACT.—The term ‘bundled 
contract’— 
‘‘(A) means a contract that is entered into 
to meet procurement requirements that are 
combined in a bundling of contract require-
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ments, without regard to whether a study of the 
effects of the solicitation on Federal officers or 
employees has been made; and 
‘‘(B) does not include— 
‘‘(i) a contract with an aggregate dol-
lar value below the dollar threshold; or 
‘‘(ii) a single award contract for the 
acquisition of a weapons system acquired 
through a major defense acquisition. 
‘‘(2) BUNDLING
METHODOLOGY.—The term 
‘bundling methodology’ means— 
‘‘(A) a solicitation to obtain offers for a 
single contract or a multiple award contract; 
‘‘(B) a solicitation of offers for the 
issuance of a task or a delivery order under an 
existing single or multiple award contract; or 
‘‘(C) the creation of any new procurement 
requirements that permits a combination of 
contract requirements, including any combina-
tion of contract requirements or order require-
ments. 
‘‘(3) 
BUNDLING
OF
CONTRACT
REQUIRE-
MENTS.—The term ‘bundling of contract require-
ments’, with respect to the contract requirements of 
a Federal agency— 
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‘‘(A) means the use of any bundling meth-
odology to satisfy 2 or more procurement re-
quirements for new or existing goods or services 
provided to or performed for the Federal agen-
cy, including any construction services, that is 
likely to be unsuitable for award to a small- 
business concern due to— 
‘‘(i) the diversity, size, or specialized 
nature of the elements of the performance 
specified; 
‘‘(ii) the aggregate dollar value of the 
anticipated award; 
‘‘(iii) the geographical dispersion of 
the contract performance sites; or 
‘‘(iv) any combination of the factors 
described in clauses (i), (ii), and (iii); and 
‘‘(B) does not include the use of a bun-
dling methodology for an anticipated award 
with an aggregate dollar value below the dollar 
threshold. 
‘‘(4) CHIEF ACQUISITION OFFICER.—The term 
‘Chief Acquisition Officer’ means the employee of a 
Federal agency designated as the Chief Acquisition 
Officer for the Federal agency under section 1702(a) 
of title 41, United States Code. 
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‘‘(5) CONTRACT.—The term ‘contract’ includes, 
for purposes of this section, any task order made 
pursuant to an indefinite quantity, indefinite deliv-
ery contract. 
‘‘(6) CONTRACT
BUNDLING.—The term ‘con-
tract bundling’ means the process by which a bun-
dled contract is created. 
‘‘(7) DOLLAR THRESHOLD.—The term ‘dollar 
threshold’ means— 
‘‘(A) in the case of a contract for construc-
tion, $5,000,000; and 
‘‘(B) in any other case, $2,000,000. 
‘‘(8) 
MAJOR
DEFENSE
ACQUISITION
PRO-
GRAM.—The term ‘major defense acquisition pro-
gram’ has the meaning given in section 2430(a) of 
title 10, United States Code. 
‘‘(9) PREVIOUSLY BUNDLED CONTRACT.—The 
term ‘previously bundled contract’ means a contract 
that is the successor to a contract that required a 
bundling analysis, contract for which any of the suc-
cessor contract were designated as a consolidated 
contract or bundled contract in the Federal procure-
ment database, or a contract for which the Adminis-
trator designated the prior contract as a bundled 
contract. 
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‘‘(10) PROCUREMENT
ACTIVITY.—The term 
‘procurement activity’ means the Federal agency or 
office thereof acquiring goods or services. 
‘‘(11) 
PROCUREMENT
REQUIREMENT.—The 
term ‘procurement requirement’ means a determina-
tion by an agency that the acquisition of a specified 
good or service is needed to satisfy the mission of 
the agency. 
‘‘(12) SENIOR
PROCUREMENT
EXECUTIVE.— 
The term ‘senior procurement executive’ means an 
official designated under section 1702(c) of title 41, 
United States Code, as the senior procurement exec-
utive for a Federal agency. 
‘‘(13) TRADE ASSOCIATION.—The term ‘trade 
association’ means any entity that is described in 
paragraph (3), (6), (12), or (19) of section 501(c) 
of the Internal Revenue Code of 1986 and which is 
exempt from tax under section 501(a) of such Code. 
‘‘(b) POLICY.—The head of each Federal agency shall 
ensure that the decisions made by the Federal agency re-
garding contract bundling are made with a view to pro-
viding small business concerns with the maximum prac-
ticable opportunities to participate as prime contractors 
and subcontractors in the procurements of the Federal 
agency. 
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‘‘(c) CONTRACT BUNDLING.— 
‘‘(1) PROPOSED PROCUREMENTS.—Paragraphs 
(2) through (4) shall apply to a proposed procure-
ment if the proposed procurement— 
‘‘(A) one or more small business concerns 
would suffer economic harm or disruption of its 
business operations, including the potential loss 
of an existing contract, as a direct or indirect 
result of the contract bundling; 
‘‘(B) includes, in its statement of work, 
goods or services— 
‘‘(i)(I) currently being performed by a 
small business; and 
‘‘(II) if the proposed procurement is 
in a quantity or estimated dollar value the 
magnitude of which renders small business 
prime contract participation unlikely; or 
‘‘(ii)(I) that are of a type that the Ad-
ministrator through market research can 
demonstrate that two or more small busi-
nesses are capable of performing; and 
‘‘(II) if the statement of work pro-
poses combining the goods or services iden-
tified in subclause (I) with other require-
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ments for goods or services into the solici-
tation of offers; 
‘‘(C) is for construction and— 
‘‘(i) seeks to package or combine dis-
crete construction projects; or 
‘‘(ii) the value of the goods or services 
subject to the contract exceeds the dollar 
threshold; or 
‘‘(D) is determined by the Administrator 
to have a solicitation that involves an unneces-
sary or unjustified bundling of contract require-
ments. 
‘‘(2) RESPONSIBILITY OF THE PROCUREMENT 
ACTIVITY.—At least 45 days prior to the issuance of 
a solicitation, the Procurement Activity shall notify 
and provide a copy of the proposed procurement to 
the procurement center representative assigned to 
the Procurement Activity. The 45-day notification 
process under this paragraph shall occur concur-
rently with other processing steps required prior to 
issuance of the solicitation. The notice shall include 
a statement as to why the agency has determined 
that contract bundling is necessary and justified and 
shall also describe why the proposed acquisition can-
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not be offered so as to make small business partici-
pation likely. Such statement shall address— 
‘‘(A) why the proposed acquisition cannot 
be further divided into reasonably small lots or 
discrete tasks in order to permit offers by small 
business concerns; 
‘‘(B) if applicable, a list of the incumbent 
contractors disaggregated by and including 
names, addresses, and whether or not the con-
tractor is a small business concern; 
‘‘(C) a description of the industries that 
might be interested in bidding on the contract 
requirements; 
‘‘(D) an assessment of the impact on small 
businesses that had bid on previous procure-
ment requirements that are included in the 
bundling of contract requirements; 
‘‘(E) delineating the number of existing 
small business concerns whose contracts will 
cease if the contract bundling proceeds; 
‘‘(F) if delivery schedule was a factor in 
the decision to bundle, an explanation as to why 
a schedule could not be developed that would 
encourage small business participation; and 
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‘‘(G) in the case of a construction contract, 
why construction cannot be procured as sepa-
rate discrete projects. 
‘‘(3) PUBLICATION OF NOTICE STATEMENT.— 
Concurrently, the statement required in paragraph 
(2) shall be published in the Federal contracting op-
portunities database. 
‘‘(4) RECOMPETITION OF A PREVIOUSLY BUN-
DLED CONTRACT.—If the proposed procurement is a 
previously bundled contract, that is to be recompeted 
as a bundled contract, the Administrator shall deter-
mine, with the assistance of the agency proposing 
the procurement— 
‘‘(A) the amount of savings and benefits 
(in accordance with subsection (d)) achieved 
under the bundling of contract requirements; 
‘‘(B) whether such savings and benefits 
will continue to be realized if the contract re-
mains bundled, and whether such savings and 
benefits would be greater if the procurement re-
quirements were divided into separate solicita-
tions suitable for award to small business con-
cerns; 
‘‘(C) the dollar value of subcontracts 
awarded to small business concerns under the 
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bundled contract, disaggregated by North 
American 
Industrial 
Classification 
System 
Code; 
‘‘(D) the percentage of subcontract dollars 
awarded to small businesses under the bundled 
contract, disaggregated by North American In-
dustrial Classification System Code; and 
‘‘(E) the dollar amount and percentage of 
prime contract dollars awarded to small busi-
nesses in the primary North American Indus-
trial Classification System Code for that bun-
dled contract during each of the two fiscal years 
preceding the award of the bundled contract 
and during each fiscal year of the performance 
of the bundled contract. 
‘‘(5) FAILURE TO PROVIDE NOTICE.— 
‘‘(A) NO NOTIFICATION RECEIVED.—If no 
notification of the proposed procurement or ac-
companying statement is received, but the Ad-
ministrator determines that the proposed pro-
curement is a proposed procurement described 
in paragraph (1), then the Administrator shall 
require that such a statement of work be com-
pleted by the Procurement Activity and sent to 
the procurement center representative and post-
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pone the solicitation process for at least 10 
days but not more than 45 days to allow the 
Administrator to review the statement and 
make recommendations as described in this sec-
tion before the procurement process is contin-
ued. 
‘‘(B) NO WORK CONTINUED.—If the Ad-
ministrator requires a Procurement Activity to 
provide a statement of work pursuant to sub-
paragraph (A), the Procurement Activity shall 
not be permitted to continue with the procure-
ment until such time as the Procurement Activ-
ity complies with the requirements of subpara-
graph (A). 
‘‘(6) RESPONSIBILITY OF THE PROCUREMENT 
CENTER REPRESENTATIVE.—Within 15 days after 
receipt of the proposed procurement and accom-
panying statement, if the procurement center rep-
resentative believes that the procurement as pro-
posed will render small business prime contract par-
ticipation unlikely, the representative shall rec-
ommend to the Procurement Activity alternative pro-
curement methods which would increase small busi-
ness prime contracting opportunities. 
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‘‘(7) DISAGREEMENT BETWEEN THE ADMINIS-
TRATOR AND THE PROCUREMENT ACTIVITY.— 
‘‘(A) IN GENERAL.—If the Administrator 
determines that a small business concern would 
be adversely affected, directly or indirectly, by 
the proposed procurement, or if a small busi-
ness concern or a trade association of which 
that small business concern is a member so re-
quests, the Administrator may take action 
under this paragraph to further the interests of 
small businesses. 
‘‘(B) APPEAL
TO
AGENCY
HEAD.—The 
proposed procurement shall be submitted for 
determination to the head of the contracting 
agency by the Administrator. 
‘‘(C) APPEAL BY AFFECTED SMALL BUSI-
NESS CONCERN TO GAO.—For purposes of sub-
chapter V of chapter 35 of title 31, United 
States Code, if a protest is submitted to the 
Comptroller General under that subchapter al-
leging a violation of this section of the Small 
Business Act, a trade association representing 
small business concerns shall be considered an 
interested party. 
‘‘(d) MARKET RESEARCH.— 
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‘‘(1) IN GENERAL.—Before proceeding with an 
acquisition strategy that could lead to bundled con-
tracts, the head of an agency shall conduct market 
research to determine whether bundling of the re-
quirements is necessary and justified. 
‘‘(2) FACTORS.—For purposes of subsection 
(c)(1), a bundled contract is necessary and justified 
if the bundling of contract requirements will result 
in substantial measurable benefits in excess of those 
benefits resulting from a procurement of the con-
tract requirements that does not involve contract 
bundling. 
‘‘(3) BENEFITS.—For the purposes of bundling 
of contract requirements, benefits described in para-
graph (2) may include the following: 
‘‘(A) Cost savings. 
‘‘(B) Quality improvements. 
‘‘(C) Reduction in acquisition cycle times. 
‘‘(D) Better terms and conditions. 
‘‘(E) Any other benefits. 
‘‘(4) REDUCTION OF COSTS NOT DETERMINA-
TIVE.—For purposes of this subsection: 
‘‘(A) Cost savings shall not include any re-
duction in the use of military interdepartmental 
purchase requests or any similar transfer funds 
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among Federal agencies for the use of a con-
tract issued by another Federal agency. 
‘‘(B) The reduction of administrative or 
personnel costs alone shall not be a justification 
for bundling of contract requirements unless 
the cost savings are expected to be substantial 
in relation to the dollar value of the procure-
ment requirements to be bundled. 
‘‘(5) LIMITATION ON ACQUISITION STRATEGY.— 
The head of a Federal agency may not carry out an 
acquisition strategy that includes bundled contracts 
valued in excess of the dollar threshold, unless the 
senior procurement executive or, if applicable, Chief 
Acquisition Officer, for the Federal agency, certifies 
to the head of the Federal agency that steps will be 
taken to include small business concerns in the ac-
quisition strategy prior to the implementation of 
such acquisition strategy. 
‘‘(e) STRATEGY SPECIFICATIONS.—If the head of a 
contracting agency determines that an acquisition plan or 
proposed procurement strategy will result in a bundled 
contract, the proposed acquisition plan or procurement 
strategy shall— 
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‘‘(1) identify specifically the benefits anticipated 
to be derived from the bundling of contract require-
ments; 
‘‘(2) set forth an assessment of the specific im-
pediments to participation by small business con-
cerns as prime contractors that result from the con-
tract bundling and specify actions designed to maxi-
mize small business participation as subcontractors 
(including suppliers) at various tiers under the con-
tract or contracts that are awarded to meet the re-
quirements; and 
‘‘(3) include a specific determination that the 
anticipated measurable benefits of the proposed bun-
dled contract justify its use. 
‘‘(f) CONTRACT TEAMING.—In the case of a solicita-
tion of offers for a bundled contract that is issued by the 
head of an agency, a small-business concern may submit 
an offer that provides for use of a particular team of sub-
contractors for the performance of the contract. The head 
of the agency shall evaluate the offer in the same manner 
as other offers, with due consideration to the capabilities 
of all of the proposed subcontractors. If a small business 
concern teams under this paragraph, it shall not affect 
its status as a small business concern for any other pur-
pose. 
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‘‘(g) DATABASE, ANALYSIS, AND ANNUAL REPORT 
REGARDING CONTRACT BUNDLING.— 
‘‘(1) DATABASE.—Not later than 180 days 
after the date of the enactment of this subsection, 
the Administrator shall develop and shall thereafter 
maintain a database containing data and informa-
tion regarding— 
‘‘(A) each bundled contract awarded by a 
Federal agency; and 
‘‘(B) each small business concern that has 
been displaced as a prime contractor as a result 
of the award of such a contract. 
‘‘(2) ANALYSIS.—For each bundled contract 
that is to be recompeted, the Administrator shall de-
termine— 
‘‘(A) the amount of savings and benefits 
realized, in comparison with the savings and 
benefits anticipated by the analysis required 
under subsection (d) prior to the contract 
award; and 
‘‘(B) whether such savings and benefits 
will continue to be realized if the contract re-
mains bundled, and whether such savings and 
benefits would be greater if the procurement re-
quirements were divided into separate solicita-
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tions suitable for award to small business con-
cerns. 
‘‘(3) ANNUAL
REPORT
ON
CONTRACT
BUN-
DLING.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of the enactment of this para-
graph, and annually in March thereafter, the 
Administrator shall transmit a report on con-
tract bundling to the Committee on Small Busi-
ness of the House of Representatives and the 
Committee on Small Business and Entrepre-
neurship of the Senate. 
‘‘(B) 
CONTENTS.—Each 
report 
trans-
mitted under subparagraph (A) shall include— 
‘‘(i) data on the number, arranged by 
industrial classification, of small business 
concerns displaced as prime contractors as 
a result of the award of bundled contracts 
by Federal agencies; and 
‘‘(ii) a description of the activities 
with respect to previously bundled con-
tracts of each Federal agency during the 
preceding year, including— 
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‘‘(I) data on the number and 
total dollar amount of all contract re-
quirements that were bundled; and 
‘‘(II) with respect to each bun-
dled contract, data or information 
on— 
‘‘(aa) the justification for 
the bundling of contract require-
ments; 
‘‘(bb) the cost savings real-
ized by bundling the contract re-
quirements over the life of the 
contract; 
‘‘(cc) the extent to which 
maintaining the bundled status 
of contract requirements is pro-
jected to result in continued cost 
savings; 
‘‘(dd) the extent to which 
the bundling of contract require-
ments complied with the con-
tracting agency’s small business 
subcontracting 
plan, 
including 
the total dollar value awarded to 
small business concerns as sub-
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contractors and the total dollar 
value previously awarded to small 
business concerns as prime con-
tractors; and 
‘‘(ee) the impact of the bun-
dling of contract requirements on 
small business concerns unable to 
compete as prime contractors for 
the 
consolidated 
requirements 
and on the industries of such 
small business concerns, includ-
ing a description of any changes 
to the proportion of any such in-
dustry that is composed of small 
business concerns. 
‘‘(h) BUNDLING ACCOUNTABILITY MEASURES.— 
‘‘(1) TEAMING REQUIREMENTS.—Each Federal 
agency shall include in each solicitation for any mul-
tiple award contract above the dollar threshold a 
provision soliciting bids from any responsible source, 
including responsible small business concerns and 
teams or joint ventures of small business concerns. 
‘‘(2) POLICIES ON REDUCTION OF CONTRACT 
BUNDLING.— 
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‘‘(A) IN
GENERAL.—Not later than 270 
days after the date of enactment of this sub-
paragraph, the Federal Acquisition Regulatory 
Council, established under section 1302(a) of 
title 41, United States Code, shall amend the 
Federal Acquisition Regulation issued under 
section 1303 of such title to— 
‘‘(i) establish a Government-wide pol-
icy regarding contract bundling, including 
regarding the solicitation of teaming and 
joint ventures; and 
‘‘(ii) require that the policy estab-
lished under clause (i) be published on the 
website of each Federal agency. 
‘‘(B) RATIONALE
FOR
CONTRACT
BUN-
DLING.—Not later than 30 days after the date 
on which the head of a Federal agency submits 
the report required under section 15(h), the 
head of the Federal agency shall publish on the 
website of the Federal agency a list and ration-
ale for any bundled contract for which the Fed-
eral agency solicited bids or that was awarded 
by the Federal agency.’’. 
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SEC. 1672. REPEAL OF REDUNDANT PROVISIONS. 
(a) CERTAIN PROVISIONS REGARDING CONTRACT 
BUNDLING REPEALED.— 
(1) Section 15(a) of the Small Business Act (15 
U.S.C. 644(a)), is amended by striking ‘‘If a pro-
posed procurement includes’’ and all that follows 
through ‘‘the matter shall be submitted for deter-
mination to the Secretary or the head of the appro-
priate department or agency by the Administrator.’’. 
(2) All references in law to such sentences as 
they were in effect on the date that is one day prior 
to the effective date of this Act shall be deemed to 
be references to section 44(d), as added by this part. 
(b) CERTAIN PROVISIONS REGARDING MARKET RE-
SEARCH REPEALED.— 
(1) Paragraphs (2) through (4) of section 15(e) 
of the Small Business Act (15 U.S.C. 644(e)) are 
repealed. 
(2) All references in law to such paragraphs, as 
in effect on the date that is one day prior to the ef-
fective date of this Act, shall be deemed to be ref-
erences to subsections (d) through (f), respectively, 
of section 44 of the Small Business Act, as added 
by this section. 
(c) CERTAIN PROVISIONS REGARDING CONTRACT 
BUNDLING DATABASE REPEALED.— 
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(1) Paragraph (1) of section 15(p) of the Small 
Business Act (15 U.S.C. 644(p)) is repealed. 
(2) Paragraphs (2) through (4) of section 15(p) 
of the Small Business Act (15 U.S.C. 644(p)) are 
repealed. All references in law to such paragraphs, 
as in effect on the date that is one day prior to the 
effective date of this Act, shall be deemed to be ref-
erences to paragraphs (1) through (3), respectively, 
of section 44(h) of the Small Business Act, as added 
by this part. 
(d) CERTAIN PROVISIONS REGARDING BUNDLING 
ACCOUNTABILITY MEASURES REPEALED.— 
(1) Paragraphs (1) and (2) of section 15(q) of 
the Small Business Act (15 U.S.C. 644(q)) are re-
pealed. 
(2) All references in law to such paragraphs, as 
in effect on the date that is one day prior to the ef-
fective date of this Act, shall be deemed to be ref-
erences to paragraphs (1) and (2), respectively, of 
section 44(i) of the Small Business Act, as added by 
this part. 
(e) CERTAIN PROVISIONS REGARDING.—Subsection 
(o) of section 3 of the Small Business Act (15 U.S.C.) 
is repealed. 
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SEC. 1673. TECHNICAL AMENDMENTS. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended— 
(1) in the heading of subsection (p), to read as 
follows: ‘‘ACCESS TO DATA.—’’; and 
(2) in the heading of subsection (q), to read as 
follows: ‘‘REPORTS
RELATED
TO
PROCUREMENT 
CENTER REPRESENTATIVES.—’’. 
PART VII—INCREASED PENALTIES FOR FRAUD 
SEC. 1681. SAFE HARBOR FOR GOOD FAITH COMPLIANCE 
EFFORTS. 
(a) SMALL BUSINESS FRAUD.—Section 16(d) of the 
Small Business Act (15 U.S.C. 645(d)) is amended by in-
serting after paragraph (2) the following: 
‘‘(3) LIMITATION
ON
LIABILITY.—This sub-
section shall not apply to any conduct in violation of 
subsection (a) if the defendant acted in reliance on 
a written advisory opinion from a licensed attorney 
who is not an employee of the defendant.’’. 
(b) REGULATIONS.—Not later than 270 days after 
the date of enactment of this part, the Administrator of 
the Small Business Administration shall issue rules defin-
ing what constitutes an adequate advisory opinion for pur-
poses of section 16(d)(3) of the Small Business Act. 
(c) SMALL BUSINESS COMPLIANCE GUIDE.—Not 
later than 270 days after the date of enactment of this 
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part, the Administrator of the Small Business Administra-
tion shall issue (pursuant to section 212 of the Small 
Business Regulatory Enforcement Fairness Act of 1996) 
a compliance guide to assist business concerns in accu-
rately determining their status as a small business con-
cern. 
SEC. 1682. OFFICE OF HEARINGS AND APPEALS. 
(a) CHIEF HEARING OFFICER.—Section 4(b)(1) of 
the Small Business Act is amended by adding at the end 
the following: ‘‘One shall be designated at the time of his 
or her appointment as the Chief Hearing Officer, who 
shall head and administer the Office of Hearings and Ap-
peals within the Administration.’’. 
(b) OFFICE OF HEARINGS AND APPEALS ESTAB-
LISHED IN ADMINISTRATION.—Section 5 of the Small 
Business Act (15 U.S.C. 634) is amended by adding at 
the end the following: 
‘‘(i) OFFICE OF HEARINGS AND APPEALS.— 
‘‘(1) IN GENERAL.—There is established in the 
Administration an Office of Hearings and Appeals— 
‘‘(A) to impartially decide such matters, 
where Congress designates that a hearing on 
the record is required or which the Adminis-
trator designates by regulation or otherwise; 
and 
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‘‘(B) which shall contain the Administra-
tion’s Freedom of Information/Privacy Acts Of-
fice. 
‘‘(2) CHIEF
HEARING
OFFICER.—The Chief 
Hearing Officer shall be a career member of the 
Senior Executive Service and an attorney duly li-
censed by any State, commonwealth, territory, or the 
District of Columbia. 
‘‘(A) DUTIES.—The Chief Hearing Officer 
shall— 
‘‘(i) serve as the Chief Administrative 
Law Judge; and 
‘‘(ii) be responsible for the operation 
and management of the Office of Hearings 
and Appeals, pursuant to the rules of prac-
tice established by the Administrator. 
‘‘(B) ALTERNATIVE
DISPUTE
RESOLU-
TION.—The Chief Hearing Officer may also as-
sign a matter for mediation or other means of 
alternative dispute resolution. 
‘‘(3) ADMINISTRATIVE LAW JUDGES.— 
‘‘(A) IN GENERAL.—An administrative law 
judge shall be an attorney duly licensed by any 
State, commonwealth, territory, or the District 
of Columbia. 
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‘‘(B) CONDITIONS
OF
EMPLOYMENT.—(i) 
An administrative law judge shall serve in the 
excepted service as an employee of the Adminis-
tration under section 2103 of title 5, United 
States Code, and under the supervision of the 
Chief Hearing Officer. 
‘‘(ii) Administrative law judge positions 
shall be classified at Senior Level, as such term 
is defined in section 5376 of title 5, United 
States Code. 
‘‘(iii) Compensation for administrative law 
judge positions shall be set in accordance with 
the pay rates of section 5376 of title 5, United 
States Code. 
‘‘(C) TREATMENT
OF
CURRENT
PER-
SONNEL.—An individual serving as a Judge in 
the Office of Hearings and Appeals (as that po-
sition and office are designated in section 
134.101 of title 13, Code of Federal Regula-
tions (as in effect on January 1, 2012)) on the 
effective date of this subsection shall be consid-
ered as qualified to be and redesignated as ad-
ministrative law judges. 
‘‘(D) POWERS.—An administrative law 
judge shall have the authority to conduct hear-
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ings in accordance with sections 554, 556, and 
557 of title 5, United States Code.’’. 
SEC. 1683. REQUIREMENT FRAUDULENT BUSINESSES BE 
SUSPENDED OR DEBARRED. 
(a) IN GENERAL.—Section 16(d)(2)(C) of the Small 
Business Act (15 U.S.C. 645(d)(2)(C)) is amended by 
striking ‘‘on the basis that such misrepresentation indi-
cates a lack of business integrity that seriously and di-
rectly affects the present responsibility to perform any 
contract awarded by the Federal Government or a sub-
contract under such a contract’’. 
(b) REVISION TO FAR.—Not later than 270 days 
after the date of enactment of this part, the Federal Ac-
quisition Regulation shall be revised to implement the 
amendment made by this section. 
(c) DEVELOPMENT AND PROMULGATION OF GUID-
ANCE.—Not later than 270 days after the date of enact-
ment of this part, the Administrator of the Small Business 
Administration shall develop and promulgate guidance im-
plementing this section. 
(d) PUBLICATION OF PROCEDURES REGARDING SUS-
PENSION AND DEBARMENT.—Not later than 270 days 
after the date of enactment of this part, the Administrator 
shall publish on the Administration’s Web site the stand-
ard operating procedures for suspension and debarment 
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in effect, and the name and contact information for the 
individual designated by the Administrator as the senior 
individual responsible for suspension and debarment pro-
ceedings. 
SEC. 
1684. 
ANNUAL 
REPORT 
ON 
SUSPENSIONS 
AND 
DEBARMENTS PROPOSED BY SMALL BUSI-
NESS ADMINISTRATION. 
(a) REPORT REQUIREMENT.—The Administrator of 
the Small Business Administration shall submit each year 
to the Committee on Small Business and Entrepreneur-
ship of the Senate, and the Committee on Small Business 
of the House of Representatives a report on the suspen-
sion and debarment actions taken by the Administrator 
during the year preceding the year of submission of the 
report. 
(b) MATTERS COVERED.—The report required by 
subsection (a) shall include the following information for 
the year covered by the report: 
(1) NUMBER.—The number of contractors pro-
posed for suspension or debarment. 
(2) SOURCE.—The office within a Federal 
agency that originated each proposal for suspension 
or debarment. 
(3) REASONS.—The reason for each proposal 
for suspension or debarment. 
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(4) RESULTS.—The result of each proposal for 
suspension or debarment, and the reason for such 
result. 
(5) REFERRALS.—The number of suspensions 
or debarments referred to the Inspector General of 
the Small Business Administration or another agen-
cy, or to the Attorney General (for purposes of this 
paragraph, the Administrator may redact identifying 
information on names of companies or other infor-
mation in order to protect the integrity of any ongo-
ing criminal or civil investigation). 
PART VIII—OFFICES OF SMALL AND 
DISADVANTAGED BUSINESS UNITS 
SEC. 1691. OFFICES OF SMALL AND DISADVANTAGED BUSI-
NESS UTILIZATION. 
(a) APPOINTMENT AND POSITION OF DIRECTOR.— 
Section 15(k)(2) of the Small Business Act (15 U.S.C. 
644(k)(2)) is amended by striking ‘‘such agency,’’ and in-
serting ‘‘such agency to a position that is a Senior Execu-
tive Service position (as such term is defined under section 
3132(a) of title 5, United States Code), except that, for 
any agency in which the positions of Chief Acquisition Of-
ficer and senior procurement executive (as such terms are 
defined under section 44(a) of this Act) are not Senior 
Executive Service positions, the Director of Small and Dis-
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advantaged Business Utilization may be appointed to a 
position compensated at not less than the minimum rate 
of basic pay payable for grade GS–15 of the General 
Schedule under section 5332 of such title (including com-
parability payments under section 5304 of such title);’’. 
(b) PERFORMANCE APPRAISALS.—Section 15(k)(3) 
of such Act (15 U.S.C. 644(k)(3)) is amended— 
(1) by striking ‘‘be responsible only to, and re-
port directly to, the head’’ and inserting ‘‘shall be 
responsible only to (including with respect to per-
formance appraisals), and report directly and exclu-
sively to, the head’’; and 
(2) by striking ‘‘be responsible only to, and re-
port directly to, such Secretary’’ and inserting ‘‘be 
responsible only to (including with respect to per-
formance appraisals), and report directly and exclu-
sively to, such Secretary’’. 
(c) SMALL BUSINESS TECHNICAL ADVISERS.—Sec-
tion 15(k)(8)(B) of such Act (15 U.S.C. 644(k)(8)(B)) is 
amended— 
(1) by striking ‘‘and 15 of this Act,’’ and in-
serting ‘‘, 15, and 44 of this Act;’’; and 
(2) by inserting after ‘‘of this Act’’ the fol-
lowing: ‘‘(giving priority in assigning to small busi-
ness that are in metropolitan statistical areas for 
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which the unemployment rate is higher than the na-
tional average unemployment rate for the United 
States)’’. 
(d) ADDITIONAL REQUIREMENTS.—Section 15(k) of 
such Act (15 U.S.C. 644(k)) is amended by inserting after 
paragraph (10) the following: 
‘‘(11) shall review and advise such agency on 
any decision to convert an activity performed by a 
small business concern to an activity performed by 
a Federal employee; 
‘‘(12) shall provide to the Chief Acquisition Of-
ficer and senior procurement executive of such agen-
cy advice and comments on acquisition strategies, 
market research, and justifications related to section 
44 of this Act; 
‘‘(13) may provide training to small business 
concerns and contract specialists, except that such 
training may only be provided to the extent that the 
training does not interfere with the Director car-
rying out other responsibilities under this subsection; 
‘‘(14) shall receive unsolicited proposals and, 
when appropriate, forward such proposals to per-
sonnel of the activity responsible for reviewing such 
proposals; 
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‘‘(15) shall carry out exclusively the duties enu-
merated in this Act, and shall, while the Director, 
not hold any other title, position, or responsibility, 
except as necessary to carry out responsibilities 
under this subsection; and 
‘‘(16) shall submit, each fiscal year, to the 
Committee on Small Business of the House of Rep-
resentatives and the Committee on Small Business 
and Entrepreneurship of the Senate a report de-
scribing— 
‘‘(A) the training provided by the Director 
under paragraph (13) in the most recently com-
pleted fiscal year; 
‘‘(B) the percentage of the budget of the 
Director used for such training in the most re-
cently completed fiscal year; and 
‘‘(C) the percentage of the budget of the 
Director used for travel in the most recently 
completed fiscal year.’’. 
(e) REQUIREMENT OF CONTRACTING EXPERIENCE 
FOR OSDBU DIRECTOR.—Section 15(k) of the Small 
Business Act (15 U.S.C. 644(k)), as amended by this part, 
is further amended, in the matter preceding paragraph 
(1), by striking ‘‘who shall’’ and insert the following: ‘‘, 
with experience serving in any combination of the fol-
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lowing roles: federal contracting officer, small business 
technical advisor, contracts administrator for federal gov-
ernment contracts, attorney specializing in federal pro-
curement law, small business liaison officer, officer or em-
ployee who managed federal government contracts for a 
small business, or individual whose primary responsibil-
ities were for the functions and duties of section 8, 15 
or 44 of this Act. Such officer or employee’’. 
(f) TECHNICAL AMENDMENTS.—Section 15(k) of 
such Act (15 U.S.C. 644(k)), as amended, is further 
amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘be known’’ and inserting 
‘‘shall be known’’; and 
(B) by striking ‘‘such agency,’’ and insert-
ing ‘‘such agency;’’; 
(2) in paragraph (2) by striking ‘‘be appointed 
by’’ and inserting ‘‘shall be appointed by’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘director’’ and inserting 
‘‘Director’’; and 
(B) by striking ‘‘Secretary’s designee,’’ and 
inserting ‘‘Secretary’s designee;’’; 
(4) in paragraph (4)— 
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(A) by striking ‘‘be responsible’’ and in-
serting ‘‘shall be responsible’’; and 
(B) by striking ‘‘such agency,’’ and insert-
ing ‘‘such agency;’’; 
(5) in paragraph (5) by striking ‘‘identify pro-
posed’’ and inserting ‘‘shall identify proposed’’; 
(6) in paragraph (6) by striking ‘‘assist small’’ 
and inserting ‘‘shall assist small’’; 
(7) in paragraph (7)— 
(A) by striking ‘‘have supervisory’’ and in-
serting ‘‘shall have supervisory’’; and 
(B) by striking ‘‘this Act,’’ and inserting 
‘‘this Act;’’; 
(8) in paragraph (8)— 
(A) by striking ‘‘assign a’’ and inserting 
‘‘shall assign a’’; and 
(B) in subparagraph (A), by striking ‘‘the 
activity, and’’ and inserting ‘‘the activity; and’’; 
(9) in paragraph (9)— 
(A) by striking ‘‘cooperate, and’’ and in-
serting ‘‘shall cooperate, and’’; and 
(B) by striking ‘‘subsection, and’’ and in-
serting ‘‘subsection;’’; and 
(10) in paragraph (10)— 
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(A) by striking ‘‘make recommendations’’ 
and inserting ‘‘shall make recommendations’’; 
(B) by striking ‘‘subsection (a), or section’’ 
and inserting ‘‘subsection (a), section’’; 
(C) by striking ‘‘Act or section 2323’’ and 
inserting ‘‘Act, or section 2323’’; 
(D) by striking ‘‘Code. Such recommenda-
tions shall’’ and inserting ‘‘Code, which shall’’; 
and 
(E) by striking ‘‘contract file.’’ and insert-
ing ‘‘contract file;’’. 
SEC. 1692. SMALL BUSINESS PROCUREMENT ADVISORY 
COUNCIL. 
(a) DUTIES.—Section 7104(b) of the Federal Acqui-
sition Streamlining Act of 1994 (15 U.S.C. 644 note) is 
amended— 
(1) in paragraph (1) by striking ‘‘and’’ at the 
end; 
(2) in paragraph (2) by striking ‘‘authorities.’’ 
and inserting ‘‘authorities;’’; and 
(3) by adding at the end the following: 
‘‘(3) to conduct reviews of each Office of Small 
and Disadvantaged Business Utilization established 
under section 15(k) of the Small Business Act (15 
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U.S.C. 644(k)) to determine the compliance of each 
Office with requirements under such section; 
‘‘(4) to identify best practices for maximizing 
small business utilization in Federal contracting that 
may be implemented by Federal agencies having pro-
curement powers; and 
‘‘(5) to submit, annually, to the Committee on 
Small Business of the House of Representatives and 
the Committee on Small Business and Entrepre-
neurship of the Senate a report describing— 
‘‘(A) the comments submitted under para-
graph (2) during the 1-year period ending on 
the date on which the report is submitted, in-
cluding any outcomes related to the comments; 
‘‘(B) the results of reviews conducted 
under paragraph (3) during such 1-year period; 
and 
‘‘(C) best practices identified under para-
graph (4) during such 1-year period.’’. 
(b) MEMBERSHIP.—Section 7104(c)(3) of such Act 
(15 U.S.C. 644 note) is amended by striking ‘‘(established 
under section 15(k) of the Small Business Act (15 U.S.C. 
644(k))’’. 
(c) CHAIRMAN.—Section 7104(d) of such Act (15 
U.S.C. 644 note) is amended by inserting after ‘‘Small 
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Business Administration’’ the following: ‘‘(or the designee 
of the Administrator)’’. 
PART IX—EARLY STAGE SMALL BUSINESS 
CONTRACTING 
SEC. 1693a. PROGRAM TO PROVIDE FEDERAL CONTRACTS 
TO EARLY STAGE SMALL BUSINESSES. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended by adding at the end the 
following: 
‘‘SEC. 46. PROGRAM TO PROVIDE FEDERAL CONTRACTS TO 
EARLY STAGE SMALL BUSINESSES. 
‘‘(a) ESTABLISHMENT.—The Administrator shall es-
tablish and carry out a program in accordance with the 
requirements of this section to provide improved access to 
Federal contract opportunities for early stage small busi-
ness concerns. 
‘‘(b) PROCUREMENT CONTRACTS.— 
‘‘(1) IN GENERAL.—In carrying out subsection 
(a), the Administrator, in consultation with other 
Federal agencies, shall identify procurement con-
tracts of Federal agencies for award under the pro-
gram. 
‘‘(2) CONTRACT AWARDS.—Under the program 
established pursuant to this section, the award of a 
procurement contract of a Federal agency identified 
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by the Administrator pursuant to paragraph (1) 
shall be made by the agency to an eligible program 
participant selected, and determined to be respon-
sible, by the agency. 
‘‘(3) COMPETITION.— 
‘‘(A) SOLE SOURCE.—A contracting officer 
may award a sole source contract under this 
program if such concern is determined to be a 
responsible contractor with respect to perform-
ance of such contract opportunity and the con-
tracting officer does not have a reasonable ex-
pectation that 2 or more early stage small busi-
ness concerns will submit offers for the con-
tracting opportunity and in the estimation of 
the contracting officer, the contract award can 
be made at a fair and reasonable price. 
‘‘(B) RESTRICTED COMPETITION.—A con-
tracting officer may award contracts on the 
basis of competition restricted to early stage 
small business concerns if the contracting offi-
cer has a reasonable expectation that not less 
than 2 early stage small business concerns will 
submit offers and that the award can be made 
at a fair market price. 
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‘‘(4) CONTRACT
VALUE.—Contracts shall be 
awarded under this program if its value is greater 
than $3,000 and less than half the upper threshold 
of section 15(j)(1) of the Small Business Act. 
‘‘(c) ELIGIBILITY.—Only an early stage small busi-
ness concern shall be eligible to compete for a contract 
to be awarded under the program. The Administrator shall 
certify that a small business concern is an early stage 
small business concern, or the Administrator shall approve 
a Federal agency, a State government, or a national certi-
fying entity to certify that the business meets the eligi-
bility criteria of an early stage small business concern. 
‘‘(d) TECHNICAL ASSISTANCE.—The Administrator 
shall provide early stage small business concerns with 
technical assistance and counseling with regard to— 
‘‘(1) applying for and competing for Federal 
contracts; and 
‘‘(2) fulfilling the administrative responsibilities 
associated with the performance of a Federal con-
tract. 
‘‘(e) ATTAINMENT OF CONTRACT GOALS.—All con-
tract awards made under the program shall be counted 
toward the attainment of the goals specified in section 
15(g) of the Small Business Act. 
‘‘(f) REGULATIONS.—The Administrator shall— 
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‘‘(1) issue proposed regulations to carry out 
this section not later than 180 days after the date 
of enactment of this Act; and 
‘‘(2) issue final regulations to carry out this 
section not later than 270 days after the date of en-
actment of this Act. 
‘‘(g) REPORT TO CONGRESS.—Not later than April 
30, 2015, the Administrator shall transmit to the Con-
gress a report on the performance of the program. 
‘‘(h) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) PROGRAM.—The term ‘program’ means a 
program established pursuant to subsection (a). 
‘‘(2) EARLY
STAGE
SMALL
BUSINESS
CON-
CERN.—The term ‘early stage small business con-
cern’ means a small business concern that— 
‘‘(A) has not more than 15 employees; and 
‘‘(B) has average annual receipts that total 
not more than $1,000,000, except if the con-
cern is in an industry with an average annual 
revenue standard that is less than $1,000,000, 
as defined by the North American Industry 
Classification System.’’. 
(b) REPEAL OF SIMILAR PROGRAM.—Section 304 of 
the Small Business Administration Reauthorization and 
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Amendments Act of 1994 (15 U.S.C. 644 note) is re-
pealed. 
PART X—OTHER MATTERS 
SEC. 1695. SURETY BONDS. 
(a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of 
the Small Business Investment Act of 1958 (15 U.S.C. 
694b(a)(1)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 
(2) by striking ‘‘$2,000,000’’ and inserting 
‘‘$6,500,000, as adjusted for inflation in accordance 
with section 1908 of title 41, United States Code,’’; 
and 
(3) by adding at the end the following: 
‘‘(B) The Administrator may guarantee a surety 
under subparagraph (A) for a total work order or contract 
amount that does not exceed $10,000,000, if a contracting 
officer of a Federal agency certifies that such a guarantee 
is necessary.’’. 
(b) DENIAL OF LIABILITY.—Section 411 of the Small 
Business Investment Act of 1958 (15 U.S.C. 694b) is 
amended— 
(1) by striking subsection (e) and inserting the 
following: 
‘‘(e) REIMBURSEMENT OF SURETY; CONDITIONS.— 
Pursuant to any such guarantee or agreement, the Admin-
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istration shall reimburse the surety, as provided in sub-
section (c) of this section, except that the Administration 
shall be relieved of liability (in whole or in part within 
the discretion of the Administration) if— 
‘‘(1) the surety obtained such guarantee or 
agreement, or applied for such reimbursement, by 
fraud or material misrepresentation, 
‘‘(2) the total contract amount at the time of 
execution of the bond or bonds exceeds $6,500,000, 
‘‘(3) the surety has breached a material term or 
condition of such guarantee agreement, or 
‘‘(4) the surety has substantially violated the 
regulations promulgated by the Administration pur-
suant to subsection (d).’’; and 
(2) by adding at the end the following: 
‘‘(j) For bonds made or executed with the prior ap-
proval of the Administration, the Administration shall not 
deny liability to a surety based upon material information 
that was provided as part of the guaranty application.’’. 
(c) SIZE STANDARDS.—Section 410 of the Small 
Business Investment Act of 1958 (15 U.S.C. 694a) is 
amended by adding at the end the following: 
‘‘(9) Notwithstanding any other provision of law or 
any rule, regulation, or order of the Administration, for 
purpose of sections 410, 411, and 412 the term ‘small 
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(1) in the subsection heading, by inserting after 
‘‘AND ASHRAE IMPLEMENTATION’’ after ‘‘CERTIFI-
CATION’’; and 
(2) in paragraph (1)— 
(A) by striking ‘‘authorized to be’’; 
(B) by striking ‘‘by this Act’’; 
(C) by inserting ‘‘or 2013’’ after ‘‘fiscal 
year 2012’’; and 
(D) by inserting before the period at the 
end the following: ‘‘and implementing ASHRAE 
building standard 189.1’’. 
SEC. 2823. AVAILABILITY AND USE OF DEPARTMENT OF DE-
FENSE ENERGY COST SAVINGS TO PROMOTE 
ENERGY SECURITY. 
Section 2912(b)(1) of title 10, United States Code, 
is amended by inserting after ‘‘additional energy conserva-
tion’’ the following: ‘‘and energy security’’. 
SEC. 2824. DEFINITION OF RENEWABLE ENERGY SOURCE 
FOR DEPARTMENT OF DEFENSE ENERGY SE-
CURITY. 
Section 2924(7)(A) of title 10, United States Code, 
is amended by inserting before the period at the end the 
following: ‘‘and direct solar renewable energy’’. 
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