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‘‘SEC. 29. The Administrator of the Small Business
Administration, in coordination with other Federal agen-
cies, shall—
‘‘(1) develop plans to coordinate and promote
the use of the Federal Acquisition Computer Net-
work by small businesses that incorporate outreach
efforts by the Administration, agency Offices of
Small and Disadvantaged Business Utilization,
Small Business Development Centers, and other ap-
propriate organizations; and
‘‘(2) inform and provide consistent and com-
prehensive training on the Network for small busi-
nesses.’’.
SEC. 3. SMALL BUSINESS RESERVATION.
Section 15(j) of the Small Business Act (15 U.S.C.
644(j)) is amended to read as follows:
‘‘(j)(1) Each contract for the procurement of goods
and services that has an anticipated value not in excess
of $100,000 shall be reserved exclusively for small busi-
ness concerns unless the contracting officer is unable to
obtain offers from two or more small business concerns
that (A) are competitive with market prices, and (B) are
competitive with regard to the quality and delivery of the
goods or services being procured.
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‘‘(2) In carrying out paragraph (1), a contracting of-
ficer shall consider any offer that is responsive and that
is received in a timely manner from an eligible small busi-
ness offeror.
‘‘(3) Nothing in paragraph (1) shall be construed as
precluding an award of a contract with a value not in ex-
cess of $100,000 under the authority of—
‘‘(A) section 8(a) of this Act;
‘‘(B) section 2323 of title 10, United States
Code;
‘‘(C) section 316 of the Federal Property and
Administrative Services Act of 1949; or
‘‘(D) section 12 of the Business Opportunity
Development Reform Act of 1988 (Public Law 100–
656; U.S.C. 644 note).
‘‘(4) In the case of contracts referred to in paragraph
(1) that are entered into with small business concerns,
contracting officers shall, wherever circumstances permit,
provide for the use of fast payment terms and the dis-
bursement of payment through electronic fund transfer.
‘‘(5) A purchase by an executive agency with an an-
ticipated value of the micro-purchase threshold or less
shall not be subject to the small business reserve require-
ments of paragraph (1) of this subsection.’’.
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SEC. 4. TECHNICAL AND CONFORMING CHANGES.
(a) Section 3(m) of the Small Business Act (15
U.S.C. 632(m)) is amended to read as follows:
‘‘(m) For purposes of this Act, the term ‘simplified
acquisition threshold’ has the meaning given such term in
section 4A of the Office of Federal Procurement Policy
Act (41 U.S.C. 403A) and the term ‘micro-purchase
threshold’ has the meaning given such term in section
4B(e) of the Office of Federal Procurement Policy Act (41
U.S.C. 401 et seq.).’’.
(b) Section 8(d)(2)(A) of the Small Business Act (15
U.S.C. 637(d)(2)(A)) is amended by striking out ‘‘does
not exceed the small purchase threshold’’ and inserting in
lieu thereof ‘‘is for an amount not in excess of the sim-
plified acquisition threshold’’.
SEC. 5. CONTRACT GOALS FOR SMALL BUSINESSES OWNED
BY 
ECONOMICALLY 
AND 
SOCIALLY 
DIS-
ADVANTAGED INDIVIDUALS AND FOR CER-
TAIN INSTITUTIONS OF HIGHER EDUCATION.
Section 8(g) of the Small Business Act is amended
to read as follows:
‘‘(g)(1) The President annually shall establish Gov-
ernment-wide goals for procurement contracts awarded to
small business concerns and small business concerns
owned and controlled by socially and economically dis-
advantaged individuals. The Government-wide goal for
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participation by small business concerns shall be estab-
lished at not less than 20 percent of the total value of
all prime contract awards for each fiscal year. The Gov-
ernment-wide goal for participation by small business con-
cerns owned and controlled by socially and economically
disadvantaged individuals shall be established at not less
than 5 percent of the total value of all prime contract and
subcontract awards for each fiscal year.
‘‘(2) A goal of 5 percent of the amount described in
paragraph (5) shall be the objective of an executive agency
in each of fiscal years 1994 through 2000 for the total
combined amount obligated for contracts and subcontracts
entered into with—
‘‘(A) small business concerns, including mass
media and advertising firms, owned and controlled
by socially and economically disadvantaged individ-
uals, the majority of the earnings of which directly
accrue to such individuals;
‘‘(B) historically Black colleges and universities,
including any nonprofit research institution that was
an integral part of such a college or university be-
fore November 14, 1986; and
‘‘(C) minority institutions (as defined in section
1046(3) of the Higher Education Act of 1965 (20
U.S.C. 1135d–5(3)), which, for the purposes of this
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section, shall include Hispanic-serving institutions
(as defined in section 316(b)(1) of such Act (20
U.S.C. 1059c(b)(1)).
‘‘(3) The head of the agency shall establish a specific
goal within the overall 5 percent goal for the award of
prime contracts and subcontracts to historically Black col-
leges and universities and minority institutions in order
to increase the participation of such colleges and univer-
sities in the program provided for by this subsection.
‘‘(4) The administration, in consultation with the Ad-
ministrator of the Office of Federal Procurement Policy,
shall provide procedures or guidelines for contracting offi-
cers to set goals which executive agency prime contractors
that are required to submit subcontracting plans under
subsection (d) in furtherance of the agency’s program to
meet the 5 percent goal specified in paragraph (2) should
meet in awarding subcontracts, including subcontracts to
minority-owned media, to entities described in that para-
graph.
‘‘(5) The requirements of paragraphs (2) through (4)
for any fiscal year apply to the total value of all prime
contract awards entered into by the executive agency for
such fiscal year.
‘‘(6) (A) To attain the goal specified in paragraph
(2), the head of the agency shall provide technical assist-
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ance to the entities referred to in that subsection and, in
the case of historically Black colleges and universities and
minority institutions, shall also provide infrastructure as-
sistance.
‘‘(B) Technical assistance provided under this section
shall include information about the program, advice about
the agency’s procurement procedures, instruction in prep-
aration of proposals, and other such assistance as the
agency head considers appropriate. If the resources of the
executive agency are inadequate to provide such assist-
ance, the agency head may enter into contracts with mi-
nority private sector entities with experience and expertise
in the design, development, and delivery of technical as-
sistance services to eligible individuals, business firms and
institutions, acquisition agencies, and prime contractors.
Agency contracts with such entities shall be awarded an-
nually, based upon, among other things, the number of
minority small business concerns, historically Black col-
leges and universities, and minority institutions that each
such entity brings into the program.
‘‘(C) The agency head shall, to the maximum extent
practical, carry out programs under this section at col-
leges, universities, and institutions that agree to bear a
substantial portion of the cost associated with the pro-
grams.
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‘‘(7) To attain the goal of paragraph (2),
‘‘(A) The head of the agency shall—
‘‘(i) ensure that substantial progress is
made in increasing awards of agency contracts
to entities described in paragraph (2);
‘‘(ii) exercise his utmost authority, re-
sourcefulness, and diligence; and
‘‘(iii) actively monitor and assess the
progress of prime contractors of the agency in
attaining such goal.
‘‘(B) In making the assessment under subpara-
graph (A)(iii), the agency head shall evaluate the ex-
tent to which use of the authority provided in para-
graphs (C) and (D) and compliance with the re-
quirement in paragraph (E) is effective for facilitat-
ing the attainment of the goal.
‘‘(C) To the extent practicable and when nec-
essary to facilitate achievement of the 5 percent goal
described in paragraph (2), the agency head shall
make advance payments under section 305 of title
III of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 251 et seq.) to contrac-
tors described in paragraph (2). The Federal Acqui-
sition Regulation shall provide guidance to contract-
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ing officers for making advance payments to entities
described in subsection (a)(1) under such section.
‘‘(D) To the extent practicable and when nec-
essary to facilitate achievement of the 5 percent goal
described in paragraph (2), the agency head may
enter into contracts using less than full and open
competitive procedures (including awards under sub-
section (a) of this section) and partial set asides for
entities described in paragraph (2), but shall pay a
price not exceeding fair market cost by more than
10 percent in payment per contract to contractors or
subcontractors described in paragraph (2). The
agency head shall adjust the percentage specified in
the preceding sentence for any industry category if
available 
information 
clearly 
indicates 
that
nondisadvantaged small business concerns in such
industry category are generally being denied a rea-
sonable opportunity to compete for contracts because
of the use of that percentage in the application of
this paragraph.
‘‘(E) To the extent practicable, the agency head
shall maximize the number of minority small busi-
ness concerns, historically Black colleges and univer-
sities, and minority institutions participating in the
program.
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‘‘(F) The administration, in consultation with
the Administrator of the Office of Federal Procure-
ment Policy, shall prescribe regulations which pro-
vide for the following:
‘‘(i) Procedures or guidance for contracting
officers to provide incentives for prime contrac-
tors described in paragraph (2) to increase sub-
contractor awards to entities described in such
paragraph.
‘‘(ii) A requirement that contracting offi-
cers emphasize the award of contracts to enti-
ties described in paragraph (2) in all industry
categories, including those categories in which
such entities have not traditionally dominated.
‘‘(iii) Guidance to executive agency person-
nel on the relationship among the following pro-
grams:
‘‘(I) The program implementing this
subsection.
‘‘(II) The program established under
subsection (a).
‘‘(III) The small business set-aside
program established under section 15(a) of
this Act (15 U.S.C. 644(a)).
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‘‘(iv) With respect to an agency procure-
ment which is reasonably likely to be set aside
for entities described in paragraph (2), a re-
quirement that (to the maximum extent prac-
ticable) the procurement be designated as such
a set-aside before the solicitation for the pro-
curement is issued.
‘‘(v) Policies and procedures which, to the
maximum extent practicable, will ensure that
current levels in the number or dollar value of
contracts awarded under the program estab-
lished under subsection (a) (15 U.S.C. 637(a))
and under the small business set-aside program
established under section 15(a) of this Act (15
U.S.C. 644(a)) are maintained and that every
effort is made to provide new opportunities for
contract awards to eligible entities, in order to
meet the goal of paragraph (2).
‘‘(vi) Implementation of this section in a
manner which will not alter the procurement
process under the program established under
subsection (a) of this Act (15 U.S.C. 637(a)).
‘‘(vii) A requirement that one factor used
in evaluating the performance of a contracting
officer be the ability of the officer to increase
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contract awards to entities described in para-
graph (2).
‘‘(viii) Increased technical assistance to en-
tities described in paragraph (2).
‘‘(8)(A) Whoever for the purpose of securing a con-
tract or subcontract under paragraph (2), misrepresents
the status of any concern or person as a small business
concern owned and controlled by a minority (as described
in paragraph (2), shall be punished by imprisonment for
not more than one year or a fine of not less than $10,000,
or both.
‘‘(B) The Federal Acquisition Regulation shall pro-
hibit awarding a contract under this section to an entity
described in paragraph (2) unless the entity agrees to
comply with the requirements of section 15(o)(1) of this
Act (15 U.S.C. 644(o)(1)).
‘‘(9)(A) To the maximum extent practicable, the head
of the agency shall—
‘‘(i) ensure that no particular industry category
bears a disproportionate share of the contracts
awarded to attain the goal established by paragraph
(2); and
‘‘(ii) ensure that contracts awarded to attain
the goal established by paragraph (2) are made
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across the broadest possible range of industry cat-
egories.
‘‘(B) Under procedures prescribed by the head of the
agency and approved by the administration, a person may
request the agency head to determine whether the use of
small disadvantaged business set asides by a contracting
activity of the agency has caused a particular industry cat-
egory to bear a disproportionate share of the contracts
awarded to attain the goal established for that contracting
activity for the purposes of this subsection. Upon making
a determination that a particular industry category is
bearing a disproportionate share, the agency head shall
take appropriate actions to limit the contracting activity’s
use of set asides in awarding contracts in that particular
industry category.
‘‘(10)(A) The administration shall issue regulations
to ensure that potential contractors submitting sealed bids
or competitive proposals to the executive agency for pro-
curement contracts to be awarded under the program pro-
vided for by this subsection are complying with applicable
subcontracting plan requirements of subsection (d) of this
Act (15 U.S.C. 637(d)).
‘‘(B) The regulations required by paragraph (A) shall
ensure that, with respect to a sealed bid or competitive
proposal for which the bidder or offeror is required to ne-
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gotiate or submit a subcontracting plan under subsection
(d) of this Act (15 U.S.C. 637(d)), the subcontracting
plan shall be a factor in evaluating the bid or proposal.
‘‘(11)(A) Not later than December 15 of each year,
the administration shall submit to Congress a report on
the progress of each executive agency toward attaining the
goal of paragraph (2) during the preceding fiscal year.
‘‘(B) The report required under paragraph (A) shall
include a description of—
‘‘(i) the degree of participation by small busi-
nesses owned and controlled by socially and economi-
cally disadvantaged individuals in procurements con-
ducted by each executive agency; and
‘‘(ii) the extent of compliance by executive
agencies with the goals for participation by such
businesses required by paragraph (1), relating to
Government-wide small business and small disadvan-
taged business goals for procurement contracts.
‘‘(12) This subsection shall not be construed as modi-
fying or superseding any other provision of law establish-
ing a goal or requirement for an agency to obligate 5
percent or more of the total value of all prime contract
awards entered into by the agency for a fiscal year with
any entity described in paragraph (2).
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‘‘(13) The Coast Guard and the National Aeronautics
and Space Administration (notwithstanding section
302(a)(1)) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 251 et seq.) shall each
be considered to be an executive agency for the purposes
of this subsection.
‘‘(14) This subsection applies to each of fiscal years
1994 through 2000.’’.
SEC. 6. TEST OF INNOVATIVE AND ALTERNATIVE PRO-
CUREMENT PROCEDURES.
Section 8(g) of the Small Business Act (15 U.S.C.
637(g)) (as amended by section 5 of this Act) is further
amended by inserting the following:
‘‘(15) The requirements of subsections (e) and
(f) of this section may be waived by the Adminis-
trator of the Office of Federal Procurement Policy
after consultation with the Administrator of the
Small Business Administration in conducting inno-
vative and alternative procurement test programs
under section 9001 of the Federal Acquisition Im-
provement Act of 1994.’’.
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