‘‘(iii) The authority to grant an exemption
under clause (ii) shall cease to be effective on
September 30, 1997.’’.
SEC. 112. STRATEGIC ALLIANCES.
Section 7(j)(14) of the Small Business Act (15
U.S.C. 636(j)) is amended to read as follows:
‘‘(14)(A) Small business concerns that have com-
pleted the 9-year Phase III program term specified in
paragraph (15) (in this paragraph referred to as a ‘‘Pro-
gram Graduate’’) shall be authorized to assist Phase III
Program Participants, determined by the Administration
to be eligible for such assistance, to develop within the
Program.
‘‘(B) A Program Graduate may provide assistance to
a Phase III Program Participant under this paragraph—
‘‘(i) by providing, among other things, manage-
rial assistance, technical assistance, and financial
support; and
‘‘(ii) by entering into subcontracts for the per-
formance of specific contracts awarded under section
8(a).
‘‘(C) In determining the eligibility of a small business
concern to receive assistance or contracts under this sub-
section or section 8(a), the Administration shall not take
into account any assistance received under this paragraph
from a Program Graduate.’’.
SEC. 113. BUSINESS LOANS.
Section 7(a)(20)(B)(ii) of the Small Business Act (15
U.S.C. 636(a)(20)(B)(ii)) is amended by striking ‘‘be not
less than 85 per centum’’ and inserting ‘‘not exceed 95
percent of the balance of the financing outstanding at the
time of disbursement where the purpose of the financing
is to finance government contracts, and shall not exceed
90 percent of the balance of the financing outstanding at
the time of disbursement where the purpose of the financ-
ing is for general working capital as a line of credit’’.
TITLE II—AMENDMENTS TO
CONTRACTING PROGRAM
SEC. 201. CONTRACT AWARD PROCEDURES.
Section 8(a)(1) of the Small Business Act (15 U.S.C.
637(a)(1)) is amended by striking ‘‘(a)(1) It shall be the
duty’’ and all that follows through subparagraph (D) and
inserting the following:
‘‘(a)(1)(A) The Administration shall seek the estab-
lishment of contract goals under section 15(g) which will
assure that contracts sufficient to satisfy the contract sup-
port levels identified by participants in the Minority En-
terprise Development Program established by section
7(j)(10) are designated by the various Federal agencies
for award pursuant to this subsection.
‘‘(B) Except as provided in subparagraph (D), the
Administration may enter into prime contracts with pro-
curing agencies and subcontract performance of such con-
tracts to qualified Phase III Program Participants on a
sole-source basis or may delegate to procuring agencies
under such conditions as the Administration considers ap-
propriate the authority to enter into sole-source contracts
with Phase III Program Participants. In any case in which
the Administration accepts a requirement for potential
award pursuant to this subsection and determines that a
particular Phase III Program Participant is eligible for
and responsible to perform such contract, the procuring
agency contracting officer shall be authorized in the offi-
cer’s discretion to let the procurement contract upon such
terms and conditions as may be agreed upon between the
procuring agency contracting officer and the Program
Participant.
‘‘(C)(i) The Administration shall determine the eligi-
bility of the Program Participant to receive the award in
accordance with the eligibility criteria listed in paragraph
(16).
‘‘(ii) With respect to an individual contracting oppor-
tunity, the Administration may provide, upon a request
by the Program Participant, assistance with respect to—
‘‘(I) the negotiation of the terms and conditions
of the award; and
‘‘(II) the resolution of controversies arising
from the performance of the contract prior to such
contract performance controversies becoming formal
contract disputes within the meaning of the Contract
Disputes Act of 1978.
‘‘(iii) In the event of an adverse decision by an agency
regarding a contracting opportunity, the Administrator
may—
‘‘(I) not later than 5 days after receiving notice
of such adverse decision, file a notice of intent to ap-
peal with the head of the agency; and
‘‘(II) not later than 15 days after receiving
such notice, file an appeal with the head of the agen-
cy requesting reconsideration of the adverse decision.
‘‘(iv) Upon receipt of the notice of intent to file an
appeal under clause (iii)(I), further action regarding
award of the contract shall be suspended, unless the head
of the agency makes a written determination, supported
by specific findings, that urgent and compelling cir-
cumstances that significantly affect the interests of the
United States will not permit reconsideration of the ad-
verse decision.
‘‘(v) If the head of the agency sustains the adverse
decision upon reconsideration, the decision by the head of
the agency shall be in writing and shall be supported by
specific findings.
‘‘(vi) An adverse decision regarding the responsibility
of a Program Participant in competitive awards under this
subsection shall be decided pursuant to subsection (b)(7).
‘‘(vii) For the purposes of this subparagraph, an ad-
verse decision by a contracting officer includes—
‘‘(I) failing to respond, within 15 days or such
additional time as may be agreed to by the Adminis-
tration, to a request from the Administration to
make a specific contracting opportunity available for
award pursuant to this subsection;
‘‘(II) declining to make available for award
under this subsection a contracting opportunity (or
class of contracting opportunities) or failing to sup-
port such a determination with specific findings; and
‘‘(III) failing to reach agreement with the Pro-
gram Participant with respect to the terms and con-
ditions of a contract selected for award under this
subsection.
‘‘(D) A contract opportunity offered for award pursu-
ant to this subsection may be awarded as a sole-source
contract if the anticipated award price of the contract (in-
cluding options) will not exceed $10,000,000 in the case
of a contract opportunity assigned a standard industrial
classification code for manufacturing and $7,000,000 (in-
cluding options) in the case of all other contract opportu-
nities.’’.
SEC. 202. COMPETITION REQUIREMENTS.
Section 8(a)(1)(D) of the Small Business Act (15
U.S.C. 637(a)(1)(D)) is amended—
(1) by redesignating clause (ii) as clause (iii);
and
(2) by inserting after clause (i) the following
new clause:
‘‘(ii) Whenever a requirements-type contract (includ-
ing a task order contract, indefinite quantity contract, or
indefinite delivery contract) is to be awarded, the thresh-
olds for competition required under clause (i)(II) shall be
calculated on the basis of the estimated total value of the
contract.’’.
SEC. 203. TIMELY DETERMINATION OF ELIGIBILITY FOR
CONTRACT AWARD.
(a) IN GENERAL.—Section 8(a)(16) of the Small
Business Act (15 U.S.C. 637(a)(16)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (E); and
(2) by striking subparagraph (A) and inserting
the following:
‘‘(A) Upon receipt of notification that a Federal
agency intends to consider a Program Participant for
award of a contract pursuant to this subsection (on a com-
petitive or noncompetitive basis), the Administration shall
promptly notify the agency regarding the eligibility of the
Program Participant for award of the contract, and shall
identify all matters that could reasonably be expected to
render the Program Participant ineligible at the time of
the contract award.
‘‘(B) A Program Participant may be found to be in-
eligible for award of the contract pursuant to this sub-
section, if—
‘‘(i) the Program Participant is not in compli-
ance with its competitive business activity targets es-
tablished pursuant to section 7(j)(10)(I); or
‘‘(ii) the Program Participant has failed to
make the submissions required under paragraph
(6)(B).
‘‘(C) A small business concern owned and controlled
by socially and economically disadvantaged individuals
(1) in paragraph (3)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) [Reserved].’’; and
(B) by striking subparagraph (D) and in-
serting the following:
‘‘(D) Subsequent to the award of a contract under
this subsection, if requested by the recipient of the con-
tract, the Administration shall not publicly disclose the
agency’s estimate of the fair market price.’’;
(2) in paragraph (7), by striking subparagraph
(A) and inserting the following:
‘‘(A) [Reserved].’’;
(3) in paragraph (12)(A), by striking ‘‘eligible
to receive subcontracts’’ and inserting ‘‘eligible for
contract awards’’; and
(4) in paragraph (9)(B)—
(A) in clause (iii), by striking ‘‘and’’;
(B) by redesignating clause (iv) as clause
(v); and
(C) by inserting after clause (iii) the fol-
lowing new clause:
‘‘(iv) a determination of ineligibility for award
of a contract pursuant to paragraph (16)(B); and’’.
SEC. 204. CONTINUED CONTRACT PERFORMANCE.
Section 8(a)(21) of the Small Business Act (15
U.S.C. 637(a)(21)) is amended—
(1) in subparagraph (B), by striking ‘‘The Ad-
ministrator may, on a nondelegable basis, waive the
requirements of subparagraph (A) only if one of the
following conditions exist:’’ and inserting ‘‘The re-
quirements of subparagraph (A) may be waived
under any of the following circumstances:’’; and
(2) by striking subparagraph (C) and inserting
the following:
‘‘(C)(i) Except as provided in clause (ii), a request
for a waiver pursuant to subparagraph (B) shall be sub-
mitted prior to the actual relinquishment of ownership or
control.
‘‘(ii) Under the circumstances described in subpara-
graph (B)(iii), the waiver request shall be made as soon
as practicable after the incapacity or death occurs.’’.
SEC. 205. TRANSITION COMPETITIONS FOR PROGRAM
GRADUATES.
Section 8(a) of the Small Business Act (15 U.S.C.
637(a)) is amended by adding at the end the following
new paragraph:
‘‘(22)(A) A small business concern owned and con-
trolled by socially and economically disadvantaged individ-
uals, which has graduated from the Minority Enterprise
Development Program, may participate in the competition
for a contracting opportunity to be awarded pursuant to
this subsection if—
‘‘(i) the firm is currently performing satisfac-
torily a contract to furnish the same (or substan-
tially similar) products or services under a contract
competitively awarded pursuant to paragraph (1);
‘‘(ii) closing date for receipt of proposals for the
contracting opportunity is a date after the date on
which the firm will no longer be eligible for award
of contracts pursuant to paragraph (1);
‘‘(iii) the firm is otherwise eligible to compete
for the contract;
‘‘(iv) the Associate Administrator for Minority
Enterprise Development grants the firm’s request to
participate in the competition otherwise restricted to
Program Participants after making a determination
that denial of the firm’s request would deprive such
firm of 25 percent or more of its revenue; and
‘‘(v) the firm was a Program Participant on
September 30, 1994.
‘‘(B) A Program Graduate described in subparagraph
(A) shall be ineligible for award of a contract resulting
from a competition conducted pursuant to paragraph (1),
unless such firm furnishes (and the contracting officer ac-
cepts) a plan to subcontract not less than 40 percent of
the award value of the contract to one or more Program
Participants (of which 20 percent shall be awarded to one
or more Program Participants who are emerging small
business concerns, unless such awards are impracticable
after consultation with the Associate Administrator for the
Minority Enterprise Development Program).
‘‘(C) This subparagraph shall take effect on October
1, 1994, and shall remain in effect until September 30,
1997.’’.
SEC. 206. PROCUREMENT PROCEDURES.
Section 8(c) of the Small Business Act (15 U.S.C.
637(c)) is amended to read as follows:
‘‘(c) PROCUREMENT PROCEDURES.—
‘‘(1) IN GENERAL.—For the purpose of attain-
ing an agency’s goal for the participation of small
business concerns owned and controlled by socially
and economically disadvantaged individuals pursuant
to section 15(g)(1), the head of a participating exec-
utive agency may enter into contracts using—
‘‘(A) less than full and open competition,
by restricting the competition for such awards
to small business concerns owned and controlled
by socially and economically disadvantaged indi-
viduals as defined in subsection (d)(3)(C); and
‘‘(B) a price evaluation preference, of not
to exceed 10 percent, when evaluating an offer
received from such a small business concern as
the result of an unrestricted solicitation.
‘‘(2) DEFINITION.—For the purposes of this
subsection, the term ‘participating executive agency’
means a Federal agency, as defined in section 3(b),
in the executive branch of the Federal Government,
other than the Department of Defense.’’.
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