643 
‘‘(IV) through competitions re-
stricted using the authority under sec-
tion 8(m)(2) and in which the waiver 
authority under section 8(m)(3) was 
used; and 
‘‘(V) through unrestricted com-
petition; and 
‘‘(F) for the Federal Government and each 
Federal agency, the number, dollar amount, and 
distribution with respect to the North American 
Industry Classification System of subcontracts 
awarded during such fiscal year to small busi-
ness concerns, small business concerns owned and 
controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, 
and small business concerns owned and con-
trolled by women.’’. 
SEC. 1633. SENIOR EXECUTIVES. 
(a) TRAINING.—Programs established for the develop-
ment of senior executives under section 3396(a) of title 5, 
United States Code, shall include training with respect to 
Federal procurement requirements, including contracting 
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644 
requirements under the Small Business Act (15 U.S.C. 631 
et seq.). 
(b) EVALUATION OF EXECUTIVES.—The head of an 
agency shall ensure that evaluations of members of the sen-
ior executive service, as defined under section 3396(a) of 
title 5, United States Code, responsible for acquisition, other 
senior officials responsible for acquisition, and other mem-
bers of the senior executive service, as appropriate, include 
consideration of the agency’s success in achieving small 
business contracting goals and percentages. Such evalua-
tions shall, as a minimum, consider the extent to which the 
executive— 
(1) promotes a climate or environment that is 
responsive to small business concerns; 
(2) communicates the importance of achieving 
the agency’s small business contracting goals; and 
(3) encourages small business awareness, out-
reach, and support. 
(c) DEFINITIONS.—In this section the term ‘‘respon-
sible for acquisition’’, with respect to a member of the senior 
executive service or other senior official, means such a mem-
ber or official who acquires services or supplies, directs 
agency organizations to acquire services or supplies, over-
sees acquisition officials, including program managers, con-
tracting officers, and other acquisition workforce personnel 
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responsible for formulating and approving acquisition 
strategies and plans. 
PART III —MENTOR-PROTEGE PROGRAM 
SEC. 1641. MENTOR-PROTEGE PROGRAMS. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 45 as section 46; 
and 
(2) by inserting after section 44 the following: 
‘‘SEC. 45. MENTOR-PROTEGE PROGRAMS. 
‘‘(a) ADMINISTRATION PROGRAM.— 
‘‘(1) AUTHORITY.—The Administrator is author-
ized to establish a mentor-protege program for all 
small business concerns. 
‘‘(2) MODEL FOR PROGRAM.—The mentor-protege 
program established under paragraph (1) shall be 
identical to the mentor-protege program of the Ad-
ministration for small business concerns that partici-
pate in the program under section 8(a) of this Act (as 
in effect on the date of enactment of the National De-
fense Authorization Act for Fiscal Year 2013), except 
that the Administrator may modify the program to 
the extent necessary given the types of small business 
concerns included as proteges. 
‘‘(b) PROGRAMS OF OTHER AGENCIES.— 
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‘‘(1) APPROVAL REQUIRED.—Except as provided 
in paragraph (4), a Federal department or agency 
may not carry out a mentor-protege program for 
small business concerns unless— 
‘‘(A) the head of the department or agency 
submits a plan to the Administrator for the pro-
gram; and 
‘‘(B) the Administrator approves such plan. 
‘‘(2) BASIS FOR APPROVAL.—The Administrator 
shall approve or disapprove a plan submitted under 
paragraph (1) based on whether the program pro-
posed— 
‘‘(A) will assist proteges to compete for Fed-
eral prime contracts and subcontracts; and 
‘‘(B) complies with the regulations issued 
under paragraph (3). 
‘‘(3) REGULATIONS.—Not later than 270 days 
after the date of enactment of the National Defense 
Authorization Act for Fiscal Year 2013, the Adminis-
trator shall issue, subject to notice and comment, reg-
ulations with respect to mentor-protege programs, 
which shall ensure that such programs improve the 
ability of proteges to compete for Federal prime con-
tracts and subcontracts and which shall address, at a 
minimum, the following: 
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‘‘(A) Eligibility criteria for program par-
ticipants, including any restrictions on the num-
ber of mentor-protege relationships permitted for 
each participant. 
‘‘(B) The types of developmental assistance 
to be provided by mentors, including how the as-
sistance provided shall improve the competitive 
viability of the proteges. 
‘‘(C) Whether any developmental assistance 
provided by a mentor may affect the status of a 
program participant as a small business concern 
due to affiliation. 
‘‘(D) The length of mentor-protege relation-
ships. 
‘‘(E) The effect of mentor-protege relation-
ships on contracting. 
‘‘(F) Benefits that may accrue to a mentor 
as a result of program participation. 
‘‘(G) Reporting requirements during pro-
gram participation. 
‘‘(H) Postparticipation reporting require-
ments. 
‘‘(I) The need for a mentor-protege pair, if 
accepted to participate as a pair in a mentor- 
protege program of any Federal department or 
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agency, to be accepted to participate as a pair 
in all Federal mentor-protege programs. 
‘‘(J) Actions to be taken to ensure benefits 
for proteges and to protect proteges against ac-
tions by the mentor that— 
‘‘(i) may adversely affect the proteges 
status as a small business; or 
‘‘(ii) provide disproportionate eco-
nomic benefits to the mentor relative to 
those provided the protege. 
‘‘(4) LIMITATION ON APPLICABILITY.—Paragraph 
(1) does not apply to the following: 
‘‘(A) Any mentor-protege program of the 
Department of Defense. 
‘‘(B) Any mentoring assistance provided 
under a Small Business Innovation Research 
Program or a Small Business Technology Trans-
fer Program. 
‘‘(C) Until the date that is 1 year after the 
date on which the Administrator issues regula-
tions under paragraph (3), any Federal depart-
ment or agency operating a mentor-protege pro-
gram in effect on the date of enactment of the 
National Defense Authorization Act for Fiscal 
Year 2013. 
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‘‘(D) describes the benefits provided to men-
tors under each such program; and 
‘‘(E) describes the progress of proteges under 
each such program with respect to competing for 
Federal prime contracts and subcontracts. 
‘‘(2) PROVISION OF INFORMATION.—The head of 
each Federal department or agency carrying out a 
mentor-protege program shall provide to the Adminis-
trator, on an annual basis, the information necessary 
for the Administrator to submit a report required 
under paragraph (1). 
‘‘(d) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) MENTOR.—The term ‘mentor’ means a for- 
profit business concern, of any size, that— 
‘‘(A) has the ability to assist and commits 
to assisting a protege to compete for Federal 
prime contracts and subcontracts; and 
‘‘(B) satisfies any other requirements im-
posed by the Administrator. 
‘‘(2) MENTOR-PROTEGE
PROGRAM.—The term 
‘mentor-protege program’ means a program that 
pairs a mentor with a protege for the purpose of as-
sisting the protege to compete for Federal prime con-
tracts and subcontracts. 
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‘‘(3) PROTEGE.—The term ‘protege’ means a 
small business concern that— 
‘‘(A) is eligible to enter into Federal prime 
contracts and subcontracts; and 
‘‘(B) satisfies any other requirements im-
posed by the Administrator. 
‘‘(e) CURRENT MENTOR PROTEGE AGREEMENTS.— 
Mentors and proteges with approved agreement in a pro-
gram operating pursuant to subsection (b)(4)(C) shall be 
permitted to continue their relationship according to the 
terms specified in their agreement until the expiration date 
specified in the agreement. 
‘‘(f) SUBMISSION OF AGENCY PLANS.—Agencies oper-
ating mentor protege programs pursuant to subsection 
(b)(4)(C) must submit the plans specified in subsection 
(b)(1)(A) to the Administrator within 6 months of the pro-
mulgation of rules required by subsection (b)(3). The Ad-
ministrator shall provide initial comments on each plan 
within 60 days of receipt, and final approval or denial of 
each plan with 180 days of receipt.’’. 
SEC. 1642. GOVERNMENT ACCOUNTABILITY OFFICE RE-
PORT. 
Not later than the date that is 2 years after the agen-
cies operating subject to section 45(b)(4)(C) of the Small 
Business Act have their plans approved or denied by the 
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Administrator, the Comptroller General of the United 
States shall conduct a study to— 
(1) update the study required by section 1345 of 
the Small Business Jobs Act of 2010 (Pub. Law 111- 
240); 
(2) examine whether potential affiliation issues 
between mentors and proteges under the prior pro-
grams have been resolved by enactment of this Act; 
and 
(3) examine whether the regulations issued pur-
suant to section 45(b)(3)(I) of the Small Business Act 
have increased opportunities for mentor-protege pairs, 
and if they have decreased the paperwork required for 
such pairs participating in programs at multiple 
agencies. 
PART IV —TRANSPARENCY IN SUBCONTRACTING 
Subpart A—Limitations on Subcontracting 
SEC. 1651. LIMITATIONS ON SUBCONTRACTING. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 45 as section 47; 
and 
(2) by inserting after section 44 the following: 
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‘‘SEC. 45. LIMITATIONS ON SUBCONTRACTING. 
‘‘(a) IN GENERAL.—If awarded a contract under sec-
tion 8(a), 8(m), 15(a), 31, or 36, a covered small business 
concern— 
‘‘(1) in the case of a contract for services, may 
not expend on subcontractors more than 50 percent of 
the amount paid to the concern under the contract; 
‘‘(2) in the case of a contract for supplies (other 
than from a regular dealer in such supplies), may not 
expend on subcontractors more than 50 percent of the 
amount, less the cost of materials, paid to the concern 
under the contract; 
‘‘(3) in the case of a contract described in more 
than 1 of paragraphs (1) through (2)— 
‘‘(A) shall determine for which category of 
services or supplies, described in 1 of paragraphs 
(1) through (4), the greatest percentage of the 
contract amount is awarded; 
‘‘(B) shall determine the amount awarded 
under the contract for that category of services or 
supplies; and 
‘‘(C) may not expend on subcontractors, 
with respect to the amount determined under 
subparagraph (B), more than— 
‘‘(i) 50 percent of that amount, if the 
category of services or supplies applicable 
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under subparagraph (A) is described in 
paragraph (1); and 
‘‘(ii) 50 percent of that amount, if the 
category of services or supplies applicable 
under subparagraph (A) is described in 
paragraph (2); and 
‘‘(4) in the case of a contract for supplies from 
a regular dealer in such supplies, shall supply the 
product of a domestic small business manufacturer or 
processor, unless a waiver of such requirement is 
granted— 
‘‘(A) by the Administrator, after reviewing 
a determination by the applicable contracting of-
ficer that no small business manufacturer or 
processor can reasonably be expected to offer a 
product meeting the specifications (including pe-
riod for performance) required by the contract; 
or 
‘‘(B) by the Administrator for a product (or 
class of products), after determining that no 
small business manufacturer or processor is 
available to participate in the Federal procure-
ment market. 
‘‘(b) 
SIMILARLY
SITUATED
ENTITIES.—Contract 
amounts expended by a covered small business concern on 
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a subcontractor that is a similarly situated entity shall not 
be considered subcontracted for purposes of determining 
whether the covered small business concern has violated a 
requirement established under subsection (a) or (d). 
‘‘(c) MODIFICATIONS OF PERCENTAGES.— 
‘‘(1) IN
GENERAL.—The Administrator may 
change, by rule (after providing notice and an oppor-
tunity for public comment), a percentage specified in 
paragraphs (1) through (4) of subsection (a) if the 
Administrator determines that such change is nec-
essary to reflect conventional industry practices 
among business concerns that are below the numerical 
size standard for businesses in that industry category. 
‘‘(2) UNIFORMITY.—A change to a percentage 
under paragraph (1) shall apply to all covered small 
business concerns. 
‘‘(d) OTHER CONTRACTS.— 
‘‘(1) IN GENERAL.—With respect to a category of 
contracts to which a requirement under subsection (a) 
does not apply, the Administrator is authorized to es-
tablish, by rule (after providing notice and an oppor-
tunity for public comment), a requirement that a cov-
ered small business concern may not expend on sub-
contractors more than a specified percentage of the 
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