(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; and 
(B) the Committee on Oversight and Ac-
countability of the House of Representatives. 
(2) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given the term in section 
133 of title 41, United States Code. 
SEC. 3. COMPTROLLER GENERAL REPORT ON SMALL BUSI-
NESS 
UTILIZATION 
IN 
FEDERAL 
CON-
TRACTING. 
Not later than 180 days after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall submit to the appropriate congressional com-
mittees the results of a study on how small business utili-
zation by prime contractors can be better monitored on 
the largest and longest Federal contracts, including In-
definite Delivery, Indefinite Quantity (IDIQ) contracts 
and Government-wide Acquisition Contracts (GWACs), 
with any further relevant contract types to be determined 
by the Comptroller General. 
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 4. REQUIREMENT TO NOTIFY SUBCONTRACTORS OF 
CONTRACT STATUS. 
Not later than 18 months after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory 
Council shall revise the Federal Acquisition Regulation— 
(1) to require prime contractors on Federal 
contracts to provide to a subcontractor named in a 
subcontracting plan of the prime contractor, within 
30 days of a request from such subcontractor, notifi-
cation of the status of the contract, including infor-
mation such as whether the prime contractor has re-
ceived any task orders or executed other work under 
the contract; 
(2) to provide a means by which a subcon-
tractor who has made a request described in para-
graph (1) and not received a response within 30 
days to report the request and delayed response to 
the contracting officer; 
(3) to require a contracting officer receiving a 
notification described in paragraph (2) to document 
the incident and consider the information in the 
small business subcontracting factor of the perform-
ance assessment for the prime contractor; and 
(4) to require offerors for a task or delivery 
order on a contract for which a subcontracting plan 
is required to provide information in the proposal 
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS
about how the offeror’s proposed small business uti-
lization for the task or delivery order aligns with the 
overall contract’s small business subcontracting plan. 
SEC. 5. STUDY ON STRENGTHENING ENFORCEMENT PROVI-
SIONS DESIGNED TO PROTECT SUBCONTRAC-
TORS. 
The Attorney General, in consultation with the Ad-
ministrator of General Services, the Administrator of the 
Small Business Administration, and the Administrator for 
Federal Procurement Policy, shall conduct a study on 
ways to strengthen enforcement mechanisms for compli-
ance with subcontracting plans in accordance with section 
19.705–7 of title 48, Code of Federal Regulations, includ-
ing exploring the need for an alternative complaint route 
for subcontractors that have experienced serious issues as 
a result of the prime contractor or a subcontractor at any 
tier under the contract failing to make a good faith effort, 
as outlined in such section and section 125.3 of title 13, 
Code of Federal Regulations. 
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 6. COMPTROLLER GENERAL STUDY ON UTILIZATION 
OF CONTRACTOR PERFORMANCE ASSESS-
MENT REPORTING SYSTEM (CPARS) DATA TO 
ASSESS RELATIONSHIPS BETWEEN PRIME 
AND SUBCONTRACTORS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the appropriate con-
gressional committees the results of a study on how 
CPARS could be utilized as a means of gauging relation-
ships between prime and subcontractors. 
(b) ELEMENTS.—The study required under sub-
section (a) shall focus on the following matters: 
(1) An examination of how adverse experiences 
of subcontractors are or are not translated into 
lower CPARS scores. 
(2) An assessment of whether lower CPARS 
scores impact the ability of prime contractors to se-
cure Federal contracts and options in source selec-
tion, including an examination of the weighting of 
the subcontracting score relative to other compo-
nents of the CPARS. 
(3) An assessment of whether the timing of 
scoring within contracts is such that it incentivizes 
the best possible small business utilization and inter-
action between prime and subcontractors. 
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 7. PENALTIES FOR FAILURE TO MEET SMALL BUSI-
NESS UTILIZATION GOALS. 
Not later than 18 months after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory 
Council shall revise the Federal Acquisition Regulation to 
allow agencies to incorporate into their incentive contracts 
with prime contractors a condition that— 
(1) if the rate of small business utilization for 
the contract is less than 50 percent of the utilization 
level prescribed in the subcontracting plan, the 
prime contractor shall not be eligible to receive a 
performance-based incentive fee with respect to the 
contract; and 
(2) if the rate of small business utilization at 
any stage of an incentive contract is less than 75 
percent of the utilization level prescribed for such 
stage in the subcontracting plan, the prime con-
tractor may receive a warning letter from the con-
tracting officer for the contract noting the shortfall 
and potential loss of incentive fees. 
SEC. 8. OUTREACH TO SMALL BUSINESS CONTRACTORS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Director of the Office of Manage-
ment and Budget shall issue guidance to the heads of ex-
ecutive agencies on measures they should take to improve 
small business outreach and improve awareness of subcon-
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS
tracting opportunities, including webinars, online engage-
ments, and other innovative methods of outreach, and 
hosting at least two general outreach sessions per year for 
potential small business contractors and one outreach ses-
sion per year for each of the following groups: 
(1) Small business concerns owned and con-
trolled by veterans and small business concerns 
owned and controlled by service-disabled veterans 
(as those terms are defined in section 3(q) of the 
Small Business Act (15 U.S.C. 632(q))). 
(2) Qualified HUBZone small business concerns 
(as defined in section 3(p) of such Act (15 U.S.C. 
632(p))). 
(3) Socially and economically disadvantaged 
small business concerns (as defined in section 
8(a)(4)(A) of such Act (15 U.S.C. 637(a)(4)(A))). 
(4) Small business concerns owned and con-
trolled by women (as defined in section 3(n) of such 
Act (15 U.S.C. 632(n))). 
SEC. 9. IMPROVEMENTS TO THE ELECTRONIC SUBCON-
TRACTING REPORTING SYSTEM. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Administrator of 
General Services shall develop and include as part of the 
General Services Administration’s strategic information 
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS
resources management plan required under section 
3506(b)(2) of title 44, United States Code, a plan to mod-
ernize the Electronic Subcontracting Reporting System 
(eSRS). 
(b) ELEMENTS.—The modernization plan required 
under subsection (a) shall include— 
(1) steps that the General Services Administra-
tion intends to make toward updating and modern-
izing eSRS; 
(2) an assessment of the capacity of the agency 
to operate and maintain an updated system; 
(3) the estimated cost and sources of funding 
required to execute this plan; and 
(4) a description of the additional resources and 
staffing that is necessary to carrying out the plan. 
(c) SUBMISSION TO CONGRESS.—Not later than 30 
days after the date on which the General Services Admin-
istration’s strategic information resources management 
plan is updated pursuant to subsection (a), the Adminis-
trator of General Services shall submit the plan to mod-
ernize eSRS described in such subsection. 
Æ 
VerDate Sep 11 2014 
03:34 Jan 28, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H10563.IH
H10563
ssavage on LAPJG3WLY3PROD with BILLS