ance with subparagraph (B), except that such a percent-
age may not differ from a percentage established under
section 15(o) for the same industry category.
‘‘(11)(A) An otherwise responsible business concern
that is in compliance with the requirements of subpara-
graph (B) shall not be denied the opportunity to submit
and have considered its offer for any procurement contract
for the supply of a product to be let pursuant to this sub-
section or subsection (a) of section 15 solely because such
concern is other than the actual manufacturer or proc-
essor of the product to be supplied under the contract.
‘‘(B) To be in compliance with the requirements re-
ferred to in subparagraph (A), such a business concern
shall—
‘‘(i) be primarily engaged in the wholesale or
retail trade;
‘‘(ii) be a small business concern under the nu-
merical size standard for the Standard Industrial
Classification Code assigned to the contract solicita-
tion on which the offer is being made;
‘‘(iii) be a regular dealer, as defined pursuant
to section 35(a) of title 41, United States Code
(popularly referred to as the Walsh-Healey Public
Contracts Act), in the product to be offered the Gov-
ernment; and
‘‘(iv) represent that it will supply the product of
a domestic small business manufacturer or proc-
essor, unless a waiver of such requirement is
granted—
‘‘(I) by the Administrator, after reviewing
a determination by the contracting officer that
no small business manufacturer or processor
can reasonably be expected to offer a product
meeting the specifications (including period for
performance) required of an offeror by the so-
licitation; or
‘‘(II) 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.
‘‘(12)(A) No person within the employ of the Admin-
istration shall, during the term of such employment and
for a period of 2 years after such employment has been
terminated, engage in any activity or transaction specified
in subparagraph (B) with respect to any program partici-
pant certified during such person’s term of employment,
if such person participated personally (either directly or
indirectly) in decisionmaking responsibilities relating to
such program participant or with respect to the adminis-
tration of any assistance provided to program participants
generally under this subsection or subsection (b).
‘‘(B) The activities and transactions prohibited by
subparagraph (A) include—
‘‘(i) the buying, selling, or receiving (except by
inheritance) of any legal or beneficial ownership of
stock or any other ownership interest or the right to
acquire any such interest;
‘‘(ii) the entering into or execution of any writ-
ten or oral agreement (whether or not legally en-
forceable) to purchase or otherwise obtain any right
or interest described in clause (i); and
‘‘(iii) the receipt of any other benefit or right
that may be an incident of ownership.
‘‘(C)(i) The employees designated in clause (ii) shall
annually submit a written certification to the Administra-
tion regarding compliance with the requirements of this
paragraph.
‘‘(ii) The employees referred to in clause (i) are—
‘‘(I) regional administrators;
‘‘(II) district directors;
‘‘(III) the Associate Administrator for Veterans
Programs;
‘‘(IV) employees whose principal duties relate to
the award of contracts or the provision of other as-
sistance pursuant to this subsection or subsection
(b); and
‘‘(V) such other employees as the Administrator
may deem appropriate.
‘‘(iii) Any present or former employee of the Adminis-
tration who violates this paragraph shall be subject to a
civil penalty, assessed by the Attorney General, that shall
not exceed 300 per centum of the maximum amount of
gain such employee realized or could have realized as a
result of engaging in those activities and transactions pre-
scribed by subparagraph (B).
‘‘(iv) In addition to any other remedy or sanction pro-
vided for under law or regulation, any person who falsely
certifies pursuant to clause (i) shall be subject to a civil
penalty under the Program Fraud Civil Remedies Act of
1986 (31 U.S.C. 3801–3812).
‘‘(13)(A) Any employee of the Administration who
has authority to take, direct others to take, recommend,
or approve any action with respect to any program or ac-
tivity conducted pursuant to this subsection or subsection
(b), shall not, with respect to any such action, exercise
or threaten to exercise such authority on the basis of the
political activity or affiliation of any party. Employees of
the Administration shall expeditiously report to the In-
spector General of the Administration any such action for
which such employee’s participation has been solicited or
directed.
‘‘(B) Any employee who willfully and knowingly vio-
lates subparagraph (A) shall be subject to disciplinary ac-
tion, imposed by the Administrator, which may consist of
separation from service, reduction in grade, suspension,
or reprimand.
‘‘(C) Subparagraph (A) shall not apply to any action
taken as a penalty or other enforcement of a violation of
any law, rule, or regulation prohibiting or restricting polit-
ical activity.
‘‘(D) The prohibitions of subparagraph (A), and re-
medial measures provided for under subparagraphs (B)
and (C) with regard to such prohibitions, shall be in addi-
tion to, and not in lieu of, any other prohibitions, meas-
ures, or liabilities that may arise under any other provision
of law.
‘‘(14)(A) Small business concerns participating in the
program under subsection (b) and eligible to receive con-
tracts pursuant to this subsection shall semiannually re-
port to their assigned veterans business counselor the fol-
lowing:
‘‘(i) A listing of any agents, representatives, at-
torneys, accountants, consultants, and other parties
(other than employees) receiving compensation to as-
sist in obtaining a Federal contract for such pro-
gram participant.
‘‘(ii) The amount of compensation received by
any person listed under clause (i) during the rel-
evant reporting period and a description of the ac-
tivities performed in return for such compensation.
‘‘(B) The veterans business counselor shall promptly
review and forward such report to the Associate Adminis-
trator for Veterans Programs. Any report that raises a
suspicion of improper activity shall be reported imme-
diately to the Inspector General of the Administration.
‘‘(C) The failure to submit a report pursuant to the
requirements of this subsection and applicable regulations
shall be considered ‘good cause’ for the initiation of a ter-
mination proceeding pursuant to subsection (b)(1)(F).
‘‘(15)(A) Subject to the provisions of subparagraph
(B), a contract (including options) awarded pursuant to
this subsection shall be performed by the concern that ini-
tially received such contract. Notwithstanding the provi-
sions of the preceding sentence, if the owner or owners
upon whom eligibility was based relinquish ownership or
control of such concern, or enter into any agreement to
relinquish such ownership or control, such contract or op-
tion shall be terminated for the convenience of the Govern-
ment, except that no repurchase costs or other damages