IB 
Union Calendar No. 545 
114TH CONGRESS 
2D SESSION 
H. R. 4341 
[Report No. 114–704, Part I] 
To amend the Small Business Act to improve transparency and clarity for 
small businesses, to clarify the role of small business advocates, to 
increase opportunities for competition in subcontracting, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2016 
Mr. CHABOT (for himself and Ms. VELA´ZQUEZ) introduced the following bill; 
which was referred to the Committee on Small Business, and in addition 
to the Committees on Armed Services, Oversight and Government Re-
form, and Veterans’ Affairs, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
JULY 25, 2016 
Reported from the Committee on Small Business with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 25, 2016 
The Committees on Armed Services, Oversight and Government Reform, and 
Veterans’ Affairs discharged; committed to the Committee of the Whole 
House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on January 7, 2016] 
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A BILL 
To amend the Small Business Act to improve transparency 
and clarity for small businesses, to clarify the role of 
small business advocates, to increase opportunities for 
competition in subcontracting, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘De-
fending America’s Small Contractors Act of 2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title. 
TITLE I—IMPROVING TRANSPARENCY AND CLARITY FOR SMALL 
BUSINESSES 
Sec. 101. Plain language rewrite of requirements for small business procurements. 
Sec. 102. Improving reporting on small business goals. 
Sec. 103. Transparency in small business goals. 
Sec. 104. Uniformity in procurement terminology. 
TITLE II—CLARIFYING THE ROLES OF SMALL BUSINESS 
ADVOCATES 
Sec. 201. Scope of review by procurement center representatives. 
Sec. 202. Responsibilities of Commercial Market Representatives. 
Sec. 203. Duties of the Office of Small and Disadvantaged Business Utilization. 
Sec. 204. Improving contractor compliance. 
Sec. 205. Responsibilities of Business Opportunity Specialists. 
TITLE III—STRENGTHENING OPPORTUNITIES FOR COMPETITION IN 
SUBCONTRACTING 
Sec. 301. Good faith in subcontracting. 
Sec. 302. Pilot program to provide opportunities for qualified subcontractors to 
obtain past performance ratings. 
TITLE IV—MENTOR-PROTEGE PROGRAMS 
Sec. 401. Amendments to the Mentor-Protege Program of the Department of De-
fense. 
Sec. 402. Improving cooperation between the mentor-protege programs of the 
Small Business Administration and the Department of Defense. 
TITLE V—MISCELLANEOUS 
Sec. 501. Improving education on small business regulations. 
Sec. 502. Protecting task order competition. 
Sec. 503. Improvements to size standards for small agricultural producers. 
Sec. 504. Uniformity in service-disabled veteran definitions. 
Sec. 505. GAO review of the Office of Government Contracting and Business De-
velopment of the Small Business Administration. 
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Sec. 506. Required reports pertaining to capital planning and investment control. 
Sec. 507. GAO review of surety bonds. 
TITLE 
I—IMPROVING 
TRANS-
PARENCY AND CLARITY FOR 
SMALL BUSINESSES 
SEC. 101. PLAIN LANGUAGE REWRITE OF REQUIREMENTS 
FOR SMALL BUSINESS PROCUREMENTS. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended to read as follows: 
‘‘(a) SMALL BUSINESS PROCUREMENTS.— 
‘‘(1) IN
GENERAL.—For purposes of this Act, 
small business concerns shall receive any award or 
contract if such award or contract is, in the deter-
mination of the Administrator and the contracting 
agency, in the interest of— 
‘‘(A) maintaining or mobilizing the full 
productive capacity of the United States; 
‘‘(B) war or national defense programs; or 
‘‘(C) assuring that a fair proportion of the 
total purchase and contracts for goods and serv-
ices of the Government in each industry category 
(as described under paragraph (2)) are awarded 
to small business concerns. 
‘‘(2) INDUSTRY CATEGORY DEFINED.— 
‘‘(A) IN GENERAL.—In this subsection, the 
term ‘industry category’ means a discrete group 
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of similar goods and services, as determined by 
the Administrator in accordance with the North 
American Industry Classification System codes 
used to establish small business size standards, 
except that the Administrator shall limit an in-
dustry category to a greater extent than provided 
under the North American Industry Classifica-
tion codes if the Administrator receives evidence 
indicating that further segmentation of the in-
dustry category is warranted— 
‘‘(i) due to special capital equipment 
needs; 
‘‘(ii) due to special labor requirements; 
‘‘(iii) due to special geographic re-
quirements, except as provided in subpara-
graph (B); 
‘‘(iv) due to unique Federal buying 
patterns or requirements; or 
‘‘(v) to recognize a new industry. 
‘‘(B) EXCEPTION
FOR
GEOGRAPHIC
RE-
QUIREMENTS.—The Administrator may not fur-
ther segment an industry category based on geo-
graphic requirements unless— 
‘‘(i) the Government typically des-
ignates the geographic area where work for 
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contracts for goods or services is to be per-
formed; 
‘‘(ii) Government purchases comprise 
the major portion of the entire domestic 
market for such goods or services; and 
‘‘(iii) it is unreasonable to expect com-
petition from business concerns located out-
side of the general geographic area due to 
the fixed location of facilities, high mobili-
zation costs, or similar economic factors. 
‘‘(3) 
DETERMINATIONS
WITH
RESPECT
TO 
AWARDS OR CONTRACTS.—Determinations made pur-
suant to paragraph (1) may be made for individual 
awards or contracts, any part of an award or con-
tract or task order, or for classes of awards or con-
tracts or task orders. 
‘‘(4) INCREASING PRIME CONTRACTING OPPORTU-
NITIES FOR SMALL BUSINESS CONCERNS.— 
‘‘(A) DESCRIPTION OF COVERED PROPOSED 
PROCUREMENTS.—The 
requirements 
of 
this 
paragraph shall apply to a proposed procure-
ment that includes in its statement of work goods 
or services currently being supplied or performed 
by a small business concern and, as determined 
by the Administrator— 
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‘‘(i) is in a quantity or of an estimated 
dollar value which makes the participation 
of a small business concern as a prime con-
tractor unlikely; 
‘‘(ii) in the case of a proposed procure-
ment for construction, if such proposed pro-
curement seeks to bundle or consolidate dis-
crete construction projects; or 
‘‘(iii) is a solicitation that involves an 
unnecessary or unjustified bundling of con-
tract requirements. 
‘‘(B) NOTICE
TO
PROCUREMENT
CENTER 
REPRESENTATIVES.—With respect to proposed 
procurements described in subparagraph (A), at 
least 30 days before issuing a solicitation and 
concurrent with other processing steps required 
before issuing the solicitation, the contracting 
agency shall provide a copy of the proposed pro-
curement to the procurement center representa-
tive of the contracting agency (as described in 
subsection (l)) along with a statement explain-
ing— 
‘‘(i) why the proposed procurement 
cannot be divided into reasonably small lots 
(not less than economic production runs) to 
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permit offers on quantities less than the 
total requirement; 
‘‘(ii) why delivery schedules cannot be 
established on a realistic basis that will en-
courage the participation of small business 
concerns in a manner consistent with the 
actual requirements of the Government; 
‘‘(iii) why the proposed procurement 
cannot be offered to increase the likelihood 
of the participation of small business con-
cerns; 
‘‘(iv) in the case of a proposed procure-
ment for construction, why the proposed 
procurement cannot be offered as separate 
discrete projects; or 
‘‘(v) why the agency has determined 
that the bundling of contract requirements 
is necessary and justified. 
‘‘(C) ALTERNATIVES
TO
INCREASE
PRIME 
CONTRACTING OPPORTUNITIES FOR SMALL BUSI-
NESS CONCERNS.—If the procurement center rep-
resentative believes that the proposed procure-
ment will make the participation of small busi-
ness concerns as prime contractors unlikely, the 
procurement center representative, within 15 
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days after receiving the statement described in 
subparagraph (B), shall recommend to the con-
tracting agency alternative procurement methods 
for increasing prime contracting opportunities 
for small business concerns. 
‘‘(D) FAILURE
TO
AGREE
ON
AN
ALTER-
NATIVE PROCUREMENT METHOD.—If the procure-
ment center representative and the contracting 
agency fail to agree on an alternative procure-
ment method, the Administrator shall submit the 
matter to the head of the appropriate department 
or agency for a determination. 
‘‘(5) CONTRACTS
FOR
SALE
OF
GOVERNMENT 
PROPERTY.—With respect to a contract for the sale of 
Government property, small business concerns shall 
receive any such contract if, in the determination of 
the Administrator and the disposal agency, the award 
of such contract is in the interest of assuring that a 
fair proportion of the total sales of Government prop-
erty be made to small business concerns. 
‘‘(6) SALE OF ELECTRICAL POWER OR OTHER 
PROPERY.—Nothing in this subsection shall be con-
strued to change any preferences or priorities estab-
lished by law with respect to the sale of electrical 
power or other property by the Federal Government. 
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‘‘(7) COSTS EXCEEDING FAIR MARKET PRICE.— 
A contract may not be awarded under this subsection 
if the cost of the contract to the awarding agency ex-
ceeds a fair market price.’’. 
SEC. 102. IMPROVING REPORTING ON SMALL BUSINESS 
GOALS. 
Section 15(h)(2)(E) of the Small Business Act (15 
U.S.C. 644(h)(2)(E)) is amended— 
(1) in clause (i)— 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(V) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns for purposes 
of the initial contract; and 
‘‘(VI) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
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concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, small business concerns 
owned and controlled by women, or a 
subset of any such concerns;’’; 
(2) in clause (ii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by service-disabled veterans 
for purposes of the initial contract; 
and 
‘‘(VII) that were awarded using a 
procurement method that restricted 
competition to qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, small business concerns 
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owned and controlled by women, or a 
subset of any such concerns;’’; 
(3) in clause (iii)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be qualified HUBZone small business 
concerns for purposes of the initial 
contract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals, small business concerns owned 
and controlled by women, or a subset 
of any such concerns;’’; 
(4) in clause (iv)— 
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(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by socially and economically 
disadvantaged individuals for purposes 
of the initial contract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by 
women, or a subset of any such con-
cerns;’’; 
(5) in clause (v)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; 
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(B) in subclause (V), by inserting ‘‘and’’ at 
the end; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by 
an Indian tribe other than an Alaska 
Native Corporation for purposes of the 
initial contract;’’; 
(6) in clause (vi)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by a 
Native Hawaiian Organization for 
purposes of the initial contract;’’; 
(7) in clause (vii)— 
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(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by 
an Alaska Native Corporation for pur-
poses of the initial contract; and’’; and 
(8) in clause (viii)— 
(A) in subclause (VII), by striking ‘‘and’’ at 
the end; 
(B) in subclause (VIII), by striking ‘‘and’’ 
at the end; and 
(C) by adding at the end the following new 
subclauses: 
‘‘(IX) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by women for purposes of the 
initial contract; and 
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‘‘(X) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, or a subset of any such 
concerns; and’’. 
SEC. 103. TRANSPARENCY IN SMALL BUSINESS GOALS. 
Section 15(g) of the Small Business Act is amended 
by adding at the end the following new paragraph: 
‘‘(4) DETERMINATIONS OF THE TOTAL VALUE OF 
CONTRACT AWARDS.—For purposes of the goals estab-
lished under paragraphs (1) and (2), the total value 
of contract awards for a fiscal year may not be deter-
mined in a manner that excludes the value of a con-
tract based on— 
‘‘(A) where the contract is awarded; 
‘‘(B) where the contract is performed; 
‘‘(C) whether the contract is mandated by 
Federal law to be performed by an entity other 
than a small business concern; 
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‘‘(D) whether funding for the contract is 
made available in an appropriations Act, if the 
contract is subject to the requirements of chapter 
33 of title 41, United States Code, or chapter 
137 of title 10, United States Code, and the Fed-
eral Acquisition Regulation; or 
‘‘(E) whether the contract is otherwise sub-
ject to the Federal Acquisition Regulation.’’. 
SEC. 104. UNIFORMITY IN PROCUREMENT TERMINOLOGY. 
(a) IN GENERAL.—Section 15(j)(1) of the Small Busi-
ness Act (15 U.S.C. 644(j)(1)) is amended by striking 
‘‘greater than $2,500 but not greater than $100,000’’ and 
inserting ‘‘greater than the micro-purchase threshold, but 
not greater than the simplified acquisition threshold’’. 
(b) TECHNICAL AMENDMENT.—Section 3(m) of the 
Small Business Act (15 U.S.C. 632(m)) is amended to read 
as follows: 
‘‘(m) DEFINITIONS PERTAINING TO CONTRACTING.— 
In this Act: 
‘‘(1) PRIME CONTRACT.—The term ‘prime con-
tract’ has the meaning given such term in section 
8701(4) of title 41, United States Code. 
‘‘(2) PRIME CONTRACTOR.—The term ‘prime con-
tractor’ has the meaning given such term in section 
8701(5) of title 41, United States Code. 
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‘‘(3) SIMPLIFIED
ACQUISITION
THRESHOLD.— 
The term ‘simplified acquisition threshold’ has the 
meaning given such term in section 134 of title 41, 
United States Code. 
‘‘(4) MICRO-PURCHASE THRESHOLD.—The term 
‘micro-purchase threshold’ has the meaning given such 
term in section 1902(a) of title 41, United States 
Code. 
‘‘(5) TOTAL
PURCHASE
AND
CONTRACTS
FOR 
PROPERTY AND SERVICES.—The term ‘total purchases 
and contracts for property and services’ shall mean 
total number and total dollar amount of contracts 
and orders for property and services.’’. 
TITLE 
II—CLARIFYING 
THE 
ROLES OF SMALL BUSINESS 
ADVOCATES 
SEC. 201. SCOPE OF REVIEW BY PROCUREMENT CENTER 
REPRESENTATIVES. 
Section 15(l) of the Small Business Act (15 U.S.C. 
644(l)) is amended by adding at the end the following: 
‘‘(9) SCOPE
OF
REVIEW.—The Administrator 
shall not limit the scope of review by the Procurement 
Center Representative for any solicitation of a con-
tract or task order without regard to whether the con-
tract or task order or part of the contract or task 
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order is set aside for small business concerns, whether 
1 or more contract or task order awards are reserved 
for small business concerns under a multiple award 
contract, or whether or not the solicitation would re-
sult in a bundled or consolidated contract (as defined 
in subsection (s)) or a bundled or consolidated task 
order.’’. 
SEC. 202. RESPONSIBILITIES OF COMMERCIAL MARKET 
REPRESENTATIVES. 
Section 4(h) of the Small Business Act (as added by 
section 865 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92)) is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION REQUIREMENTS FOR’’; 
(2) in paragraph (2), by redesignating subpara-
graphs (A) and (B) as clauses (i) and (ii), respec-
tively (and conforming the margins accordingly); 
(3) by amending clause (ii) (as so redesignated) 
to read as follows: 
‘‘(ii) APPLICATION.—The requirements 
of clause (i) shall be included in any initial 
job posting for the position of a commercial 
market representative and shall apply to 
any person appointed as a commercial 
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‘‘(B) for contractors awarded contracts con-
taining the clause described in section 8(d)(3), 
providing— 
‘‘(i) counseling on the contractor’s re-
sponsibility to maximize subcontracting op-
portunities for small business concerns; 
‘‘(ii) instruction on methods and tools 
to identify potential subcontractors that are 
small business concerns; and 
‘‘(iii) assistance to increase awards to 
subcontractors that are small business con-
cerns through visits, training, and reviews 
of past performance; 
‘‘(C) providing counseling on how a small 
business concern may promote its capacity to 
contractors awarded contracts containing the 
clause described in section 8(d)(3); and 
‘‘(D) conducting periodic reviews of con-
tractors awarded contracts containing the clause 
described in section 8(d)(3) to assess compliance 
with subcontracting plans required under section 
8(d)(6). 
‘‘(2) CERTIFICATION REQUIREMENTS.—’’. 
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SEC. 203. DUTIES OF THE OFFICE OF SMALL AND DIS-
ADVANTAGED BUSINESS UTILIZATION. 
Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)), as amended by section 870 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92), is amended— 
(1) by striking ‘‘section 8, 15 or 44’’ and insert-
ing ‘‘section 8, 15, 31, 36, or 44’’; 
(2) by striking ‘‘sections 8 and 15’’ each place 
such term appears and inserting ‘‘sections 8, 15, 31, 
36, and 44’’; 
(3) in paragraph (10), by striking ‘‘section 8(a)’’ 
and inserting ‘‘section 8, 15, 31, or 36’’; 
(4) by redesignating paragraphs (15), (16), and 
(17) as paragraphs (16), (17), and (18), respectively; 
(5) by inserting after paragraph (14) the fol-
lowing new paragraph: 
‘‘(15) shall review purchases made by the agency 
greater than the micro-purchase threshold, and less 
than the simplified acquisition threshold to ensure 
that the purchases have been made in compliance 
with the provisions of this Act and have been properly 
recorded in the Federal Procurement Data System, if 
the method of payment is a purchase card issued by 
the Department of Defense pursuant to section 2784 
of title 10, United States Code, or by the head of an 
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executive agency pursuant to section 1909 of title 41, 
United States Code;’’; and 
(6) in paragraph (17) (as so redesignated)— 
(A) in subparagraph (B), by striking ‘‘and’’ 
at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(D) any failure of the agency to comply 
with section 8, 15, 31, or 36.’’. 
SEC. 204. IMPROVING CONTRACTOR COMPLIANCE. 
(a) REQUIREMENTS FOR THE OFFICE OF SMALL AND 
DISADVANTAGED BUSINESS UTILIZATION.—Section 15(k) 
of the Small Business Act (15 U.S.C. 644(k)(8)), as amend-
ed by section 203, is further amended— 
(1) by redesignating paragraphs (16), (17), and 
(18) as paragraphs (17), (18), and (19), respectively; 
and 
(2) by inserting after paragraph (15) the fol-
lowing new paragraph: 
‘‘(16) shall provide assistance to a small business 
concern awarded a contract or subcontract under this 
Act or under title 10 or title 41, United States Code, 
in finding resources for education and training on 
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compliance with contracting regulations (including 
the Federal Acquisition Regulation) after award of 
such a contract or subcontract.’’. 
(b) REQUIREMENTS UNDER THE MENTOR-PROTEGE 
PROGRAM OF THE DEPARTMENT OF DEFENSE.—Section 
831(e)(1) of the National Defense Authorization Act for Fis-
cal Year 1991 (Public Law 101–510; 104 Stat. 1607; 10 
U.S.C. 2302 note) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by inserting at the end the following new 
subparagraph: 
‘‘(D) the assistance the mentor firm will 
provide to the protege firm in understanding 
contract regulations of the Federal Government 
and the Department of Defense (including the 
Federal Acquisition Regulation and the Defense 
Federal Acquisition Regulation Supplement) 
after award of a subcontract under this section, 
if applicable.’’. 
(c) RESOURCES FOR SMALL BUSINESS CONCERNS.— 
Section 15 of the Small Business Act (15 U.S.C. 644) is 
amended by adding at the end the following new subsection: 
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‘‘(t) POST-AWARD
COMPLIANCE
RESOURCES.—The 
Administrator shall provide to small business development 
centers and entities participating in the Procurement Tech-
nical Assistance Cooperative Agreement Program under 
chapter 142 of title 10, United States Code, and shall make 
available on the website of the Administration, a list of re-
sources for small business concerns seeking education and 
assistance on compliance with contracting regulations (in-
cluding the Federal Acquisition Regulation) after award of 
a contract or subcontract.’’. 
(d) REQUIREMENTS FOR PROCUREMENT CENTER REP-
RESENTATIVES.—Section 15(l)(2) of the Small Business Act 
(15 U.S.C. 644(l)(2)) is amended— 
(1) by redesignating subparagraph (I) as sub-
paragraph (J); 
(2) in subparagraph (H), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (H) the fol-
lowing new subparagraph: 
‘‘(I) assist small business concerns with 
finding resources for education and training on 
compliance with contracting regulations (includ-
ing the Federal Acquisition Regulation) after 
award of a contract or subcontract; and’’. 
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(e) REQUIREMENTS UNDER THE MENTOR-PROTEGE 
PROGRAM OF THE SMALL BUSINESS ADMINISTRATION.— 
Section 45(b)(3) of the Small Business Act (15 U.S.C. 
657r(b)(3)) is amended by adding at the end the following 
new subparagraph: 
‘‘(K) The extent to which assistance with 
compliance with the requirements of contracting 
with the Federal Government after award of a 
contract or subcontract under this section.’’. 
SEC. 205. RESPONSIBILITIES OF BUSINESS OPPORTUNITY 
SPECIALISTS. 
Section 4(g) of the Small Business Act (as added by 
section 865 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92)) is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION REQUIREMENTS FOR’’; 
(2) in paragraph (2), by redesignating subpara-
graphs (A) and (B) as clauses (i) and (ii), respec-
tively (and conforming the margins accordingly); 
(3) by amending clause (ii) (as so redesignated) 
to read as follows: 
‘‘(ii) APPLICATION.—The requirements 
of clause (i) shall be included in any initial 
job posting for the position of a Business 
Opportunity Specialist and shall apply to 
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any person appointed as a Business Oppor-
tunity Specialist after January 3, 2013.’’; 
(4) in clause (i) (as so redesignated), by striking 
‘‘paragraph (1)’’ and inserting ‘‘subparagraph (A)’’ 
(5) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively (and con-
forming the margins accordingly); 
(6) in subparagraph (A) (as so redesignated), by 
striking ‘‘paragraph (2)’’ and inserting ‘‘subpara-
graph (B)’’; and 
(7) by inserting before subparagraph (A) (as so 
redesignated) the following: 
‘‘(1) DUTIES.—The exclusive duties of a Business 
Opportunity Specialist employed by the Adminis-
trator and reporting to the senior official appointed 
by the Administrator with responsibilities under sec-
tions 8, 15, 31, and 36 (or the designee of such offi-
cial) shall be to implement sections 7, 8, and 45 and 
to complete other duties related to contracting pro-
grams under this Act. Such duties shall include— 
‘‘(A) with respect to small business concerns 
eligible to receive contracts and subcontracts pur-
suant to section 8(a)— 
‘‘(i) providing guidance, counseling, 
and referrals for assistance with technical, 
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management, financial, or other matters 
that will improve the competitive viability 
of such concerns; 
‘‘(ii) identifying causes of success or 
failure of such concerns; 
‘‘(iii) providing comprehensive assess-
ments of such concerns, including identi-
fying the strengths and weaknesses of such 
concerns; 
‘‘(iv) monitoring and documenting 
compliance with the requirements of sec-
tions 7 and 8 and any regulations imple-
menting those sections; 
‘‘(v) explaining the requirements of sec-
tions 7, 8, 15, 31, 36 and 45; and 
‘‘(vi) advising on compliance with con-
tracting regulations (including the Federal 
Acquisition Regulation) after award of such 
a contract or subcontract; 
‘‘(B) reviewing and monitoring compliance 
with mentor-protege agreements under section 
45; 
‘‘(C) representing the interests of the Ad-
ministrator and small business concerns in the 
award, modification, and administration of con-
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tracts and subcontracts awarded pursuant to sec-
tion 8(a); and 
‘‘(D) reporting fraud or abuse under section 
7, 8, 15, 31, 36 or 45 or any regulations imple-
menting such sections. 
‘‘(2) CERTIFICATION REQUIREMENTS.—’’. 
TITLE III—STRENGTHENING OP-
PORTUNITIES FOR COMPETI-
TION IN SUBCONTRACTING 
SEC. 301. GOOD FAITH IN SUBCONTRACTING. 
(a) TRANSPARENCY
IN SUBCONTRACTING GOALS.— 
Section 8(d)(9) of the Small Business Act (15 U.S.C. 
637(d)(9)) is amended— 
(1) by striking ‘‘(9) The failure’’ and inserting 
the following: 
‘‘(9) MATERIAL BREACH.—The failure’’; 
(2) in subparagraph (A), by striking ‘‘or’’ at the 
end; 
(3) in subparagraph (B), by inserting ‘‘or’’ at 
the end; and 
(4) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) assurances provided under paragraph 
(6)(E),’’. 
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(b) AUTHORITY
OF
THE ADMINISTRATOR
OF
THE 
SMALL BUSINESS ADMINISTRATION.—Section 8(d)(11) of 
the Small Business Act (15 U.S.C. 637(d)(11)) is amend-
ed— 
(1) by striking ‘‘(11) In the case of’’ and insert-
ing the following: 
‘‘(11) AUTHORITY OF ADMINISTRATOR.—In the 
case of’’; and 
(2) in subparagraph (B), by striking ‘‘, which 
shall be advisory in nature,’’. 
(c) REVIEW AND ACCEPTANCE OF SUBCONTRACTING 
PLANS.—Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by adding at the end the following: 
‘‘(17) REVIEW
AND
ACCEPTANCE
OF
SUBCON-
TRACTING PLANS.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered small business concerns’ means— 
‘‘(i) small business concerns; 
‘‘(ii) qualified HUBZone small busi-
ness concerns; 
‘‘(iii) small business concerns owned 
and controlled by veterans; 
‘‘(iv) small business concerns owned 
and controlled by service-disabled veterans; 
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‘‘(v) small business concerns owned 
and controlled by socially and economically 
disadvantaged individuals, as defined in 
paragraph (3)(C); and 
‘‘(vi) small business concerns owned 
and controlled by women. 
‘‘(B) DELAYED ACCEPTANCE OF PLAN.—Ex-
cept as provided in subparagraph (E), if a pro-
curement center representative or commercial 
market representative determines that a subcon-
tracting plan required under paragraph (4) or 
(5) fails to provide the maximum practicable op-
portunity for covered small business concerns to 
participate in the performance of the contract to 
which the plan applies, the representative may 
delay acceptance of the plan in accordance with 
subparagraph (C). 
‘‘(C) PROCESS
FOR
DELAYED
ACCEPT-
ANCE.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), a procurement center rep-
resentative or commercial market represent-
ative who makes a determination under 
subparagraph (B) with respect to a subcon-
tracting plan may delay acceptance of the 
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plan for a 30-day period by providing writ-
ten notice of the determination to the head 
of the procuring activity of the contracting 
agency that includes recommendations for 
altering the plan to provide the maximum 
practicable opportunity described in that 
subparagraph. 
‘‘(ii) EXCEPTION.—In the case of the 
Department of Defense— 
‘‘(I) a procurement center rep-
resentative or commercial market rep-
resentative who makes a determination 
under subparagraph (B) with respect 
to a subcontracting plan may delay ac-
ceptance of the plan for a 15-day pe-
riod by providing written notice of the 
determination to appropriate personnel 
of the Department of Defense that in-
cludes recommendations for altering 
the plan to provide the maximum 
practicable opportunity described in 
that subparagraph; and 
‘‘(II) the authority of a procure-
ment center representative or commer-
cial market representative to delay ac-
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ceptance of a subcontracting plan as 
provided in subparagraph (B) does not 
include the authority to delay the 
award or performance of the contract 
concerned. 
‘‘(D) DISAGREEMENTS.—If a procurement 
center representative or commercial market rep-
resentative delays the acceptance of a subcon-
tracting plan under subparagraph (C) and does 
not reach agreement with the head of the pro-
curing activity of the contracting agency to alter 
the plan to provide the maximum practicable op-
portunity described in subparagraph (B) not 
later than 30 days after the date on which writ-
ten notice was provided, the disagreement shall 
be submitted to the head of the contracting agen-
cy by the Administrator for a final determina-
tion. 
‘‘(E) EXCEPTION.—A procurement center 
representative or commercial market representa-
tive may not delay the acceptance of a subcon-
tracting plan if the head of the contracting agen-
cy certifies that the need of the agency for the 
supplies or services is of such an unusual and 
compelling urgency that the United States would 
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be seriously injured unless the agency is per-
mitted to accept the subcontracting plan.’’. 
(d) GOOD FAITH COMPLIANCE.—Not later than 270 
days after the date of enactment of this Act, the Adminis-
trator of the Small Business Administration shall issue reg-
ulations providing examples of activities that would be con-
sidered a failure to make a good faith effort to comply with 
the requirements imposed on an entity (other than a small 
business concern as defined under section 3 of the Small 
Business Act (15 U.S.C. 632)) that is awarded a prime con-
tract containing the clauses required under paragraph (4) 
or (5) of section 8(d) of the Small Business Act (15 U.S.C. 
637(d)). 
SEC. 302. PILOT PROGRAM TO PROVIDE OPPORTUNITIES 
FOR QUALIFIED SUBCONTRACTORS TO OB-
TAIN PAST PERFORMANCE RATINGS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)), as amended by section 301, is further amended by 
adding at the end the following new paragraph: 
‘‘(18) PILOT
PROGRAM
PROVIDING
PAST
PER-
FORMANCE
RATINGS
FOR
OTHER
SMALL
BUSINESS 
SUBCONTRACTORS.— 
‘‘(A) ESTABLISHMENT.—The Administrator 
shall establish a pilot program for a small busi-
ness concern performing as a first tier subcon-
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tractor for a covered contract (as defined in 
paragraph 13(A)) to request a past performance 
rating in the system used by the Federal Govern-
ment to monitor or record contractor past per-
formance. 
‘‘(B) APPLICATION.—A small business con-
cern described in subparagraph (A) shall submit 
an application to the appropriate official for a 
past performance rating. Such application shall 
include written evidence of the past performance 
factors for which the small business concern seeks 
a rating and a suggested rating. 
‘‘(C) DETERMINATION.—The appropriate of-
ficial shall submit the application from the small 
business concern to the contracting officer (or a 
designee of such officer) for the covered contract 
and to the prime contractor for review. The con-
tracting officer (or designee) and the prime con-
tractor shall, not later than 30 days after receipt 
of the application, submit to the appropriate of-
ficial a response regarding the application. 
‘‘(i) AGREEMENT ON RATING.—If the 
contracting officer (or designee) and the 
prime contractor agree on a past perform-
ance rating, or if either the contracting offi-
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mit comments, rebuttals, or additional informa-
tion relating to the past performance of such 
concern not later 14 calendar days after receipt 
of such notice. The appropriate official shall 
enter the into the system described in subpara-
graph (A) a rating that is neither favorable nor 
unfavorable along with the initial application 
from the small business concern, the responses of 
the contracting officer (or designee) and the 
prime contractor, and any additional informa-
tion provided by the small business concern. 
‘‘(E) USE OF INFORMATION.—A small busi-
ness subcontractor may use a past performance 
rating given under this paragraph to establish 
its past performance for a prime contract. 
‘‘(F) DURATION.—The pilot program estab-
lished under this paragraph shall terminate 3 
years after the date on which the first small 
business concern receives a past performance rat-
ing for performance as a first tier subcontractor. 
‘‘(G) REPORT.—The Comptroller General of 
the United States shall begin an assessment of 
the pilot program 1 year after the establishment 
of such program. Not later than 6 months after 
beginning such assessment, the Comptroller Gen-
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eral shall submit a report to the Committee on 
Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of 
the House of Representatives, which shall in-
clude— 
‘‘(i) the number of small business con-
cerns that have received past performance 
ratings under the pilot program; 
‘‘(ii) the number of applications in 
which the contracting officer (or designee) 
or the prime contractor contested the appli-
cation of the small business concern; 
‘‘(iii) any suggestions or recommenda-
tions the Comptroller General or the small 
business concerns participating in the pro-
gram have to address disputes between the 
small business concern, the contracting offi-
cer (or designee), and the prime contractor 
on past performance ratings; and 
‘‘(iv) any suggestions or recommenda-
tion the Comptroller General has to improve 
the operation of the pilot program. 
‘‘(H) APPROPRIATE OFFICIAL DEFINED.—In 
this paragraph, the term ‘appropriate official’ 
means a Commercial Market Representative or 
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other individual designated by the senior official 
appointed by the Administrator with responsibil-
ities under sections 8, 15, 31, and 36.’’. 
TITLE IV—MENTOR-PROTEGE 
PROGRAMS 
SEC. 401. AMENDMENTS TO THE MENTOR-PROTEGE PRO-
GRAM OF THE DEPARTMENT OF DEFENSE. 
Section 831 of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1607; 
10 U.S.C. 2302 note) is amended— 
(1) in subsection (d)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) prior to the approval of that agreement, the 
Administrator of the Small Business Administration 
had made no finding of affiliation between the mentor 
firm and the protege firm;’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2)(A) the Administrator of the Small Business 
Administration does not have a current finding of af-
filiation between the mentor firm and protege firm; or 
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‘‘(B) the Secretary, after considering the regula-
tions promulgated by the Administrator of the Small 
Business Administration regarding affiliation— 
‘‘(i) does not have reason to believe that the 
mentor firm affiliated with the protege firm; or 
‘‘(ii) has received a formal determination of 
no affiliation between the mentor firm and pro-
tege firm from the Administrator after having 
submitted a question of affiliation to the Admin-
istrator; and’’; 
(2) in subsection (n), by amending paragraph 
(9) to read as follows: 
‘‘(9) The term ‘affiliation’, with respect to a rela-
tionship between a mentor firm and a protege firm, 
means a relationship described under section 121.103 
of title 13, Code of Federal Regulations (or any suc-
cessor regulation).’’; and 
(3) in subsection (f)(6)— 
(A) in subparagraph (B), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
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‘‘(D) women’s business centers described in 
section 29 of the Small Business Act (15 U.S.C. 
656).’’. 
SEC. 402. IMPROVING COOPERATION BETWEEN THE MEN-
TOR-PROTEGE PROGRAMS OF THE SMALL 
BUSINESS ADMINISTRATION AND THE DE-
PARTMENT OF DEFENSE. 
Section 45(b)(4) of the Small Business Act (15 U.S.C. 
657r(b)(4)) is amended by striking subparagraph (A) and 
redesignating subparagraphs (B) and (C) as subparagraphs 
(A) and (B), respectively. 
TITLE V—MISCELLANEOUS 
SEC. 501. IMPROVING EDUCATION ON SMALL BUSINESS 
REGULATIONS. 
Section 15 of the Small Business Act (15 U.S.C. 644), 
as amended by section 204(c), is further amended by adding 
at the end the following new subsection: 
‘‘(u) REGULATORY CHANGES AND TRAINING MATE-
RIALS.—Not less than annually, the Administrator shall 
provide to the Defense Acquisition University (established 
under section 1746 of title 10, United States Code), the Fed-
eral Acquisition Institute (established under section 1201 
of title 41, United States Code), the individual responsible 
for mandatory training and education of the acquisition 
workforce of each agency (described under section 
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1703(f)(1)(C) of title 41, United States Code), small busi-
ness development centers, and entities participating in the 
Procurement Technical Assistance Cooperative Agreement 
Program under chapter 142 of title 10, United States 
Code— 
‘‘(1) a list of all changes made in the prior year 
to regulations promulgated— 
‘‘(A) by the Administrator that affect Fed-
eral acquisition; and 
‘‘(B) by the Federal Acquisition Council 
that implement changes to this Act; and 
‘‘(2) any materials the Administrator has devel-
oped to explain, train, or assist Federal agencies or 
departments or small business concerns to comply 
with the regulations specified in paragraph (1).’’. 
SEC. 502. PROTECTING TASK ORDER COMPETITION. 
Section 4106(f) of title 41, United States Code, is 
amended by striking paragraph (3). 
SEC. 503. IMPROVEMENTS TO SIZE STANDARDS FOR SMALL 
AGRICULTURAL PRODUCERS. 
(a) AMENDMENT TO DEFINITION OF AGRICULTURAL 
ENTERPRISES.—Paragraph (1) of section 18(b) of the 
Small Business Act (15 U.S.C. 647(b)(1)) is amended by 
striking ‘‘businesses’’ and inserting ‘‘small business con-
cerns’’. 
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(b) EQUAL TREATMENT OF SMALL FARMS.—Para-
graph (1) of section 3(a) of the Small Business Act (15 
U.S.C. 632(a)(1)) is amended by striking ‘‘operation: Pro-
vided,’’ and all that follows through the period at the end 
and inserting ‘‘operation.’’. 
(c) UPDATED SIZE STANDARDS.— 
(1) IN
GENERAL.—Not later than 18 months 
after the date of enactment of this section, the Admin-
istrator of the Small Business Administration shall, 
by rule, establish size standards in accordance with 
section 3 of the Small Business Act (15 U.S.C. 632) 
for agricultural enterprises (as such term is defined 
in section 18(b)(1) of such Act). 
(2) REVIEW.—Size standards established under 
subsection (a) are subject to the rolling review proce-
dures established under section 1344(a) of the Small 
Business Jobs Act of 2010 (15 U.S.C. 632 note). 
SEC. 504. UNIFORMITY IN SERVICE-DISABLED VETERAN 
DEFINITIONS. 
(a) SMALL BUSINESS DEFINITION OF SMALL BUSI-
NESS CONCERN CONSOLIDATED.—Section 3(q) of the Small 
Business Act (15 U.S.C. 632(q)) is amended— 
(1) by amending paragraph (2) to read as fol-
lows: 
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‘‘(2) SMALL
BUSINESS
CONCERN
OWNED
AND 
CONTROLLED BY SERVICE-DISABLED VETERANS.—The 
term ‘small business concern owned and controlled by 
service-disabled veterans’ means any of the following: 
‘‘(A) A small business concern— 
‘‘(i) not less than 51 percent of which 
is owned by one or more service-disabled 
veterans or, in the case of any publicly 
owned business, not less than 51 percent of 
the stock (not including any stock owned by 
an ESOP) of which is owned by one or 
more service-disabled veterans; and 
‘‘(ii) the management and daily busi-
ness operations of which are controlled by 
one or more service-disabled veterans or, in 
the case of a veteran with permanent and 
severe disability, the spouse or permanent 
caregiver of such veteran. 
‘‘(B) A small business concern— 
‘‘(i) not less than 51 percent of which 
is owned by one or more service-disabled 
veterans with a disability that is rated by 
the Secretary of Veterans Affairs as a per-
manent and total disability who are unable 
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to manage the daily business operations of 
such concern; or 
‘‘(ii) in the case of a publicly owned 
business, not less than 51 percent of the 
stock (not including any stock owned by an 
ESOP) of which is owned by one or more 
such veterans. 
‘‘(C)(i) During the time period described in 
clause (ii), a small business concern that was a 
small business concern described in subpara-
graph (A) or (B) immediately prior to the death 
of a service-disabled veteran who was the owner 
of the concern, the death of whom causes the con-
cern to be less than 51 percent owned by one or 
more service-disabled veterans, if— 
‘‘(I) the surviving spouse of the de-
ceased veteran acquires such veteran’s own-
ership interest in such concern; 
‘‘(II) such veteran had a service-con-
nected disability (as defined in section 
101(16) of title 38, United States Code) 
rated as 100 percent disabling under the 
laws administered by the Secretary of Vet-
erans Affairs or such veteran died as a re-
sult of a service-connected disability; and 
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‘‘(III) immediately prior to the death 
of such veteran, and during the period de-
scribed in clause (ii), the small business 
concern is included in the database de-
scribed in section 8127(f) of title 38, United 
States Code. 
‘‘(ii) The time period described in this 
clause is the time period beginning on the date 
of the veteran’s death and ending on the earlier 
of— 
‘‘(I) the date on which the surviving 
spouse remarries; 
‘‘(II) the date on which the surviving 
spouse relinquishes an ownership interest in 
the small business concern; or 
‘‘(III) the date that is 10 years after 
the date of the death of the veteran.’’; and 
(2) by adding at the end the following new para-
graphs: 
‘‘(6) ESOP.—The term ‘ESOP’ has the meaning 
given the term ‘employee stock ownership plan’ in sec-
tion 4975(e)(7) of the Internal Revenue Code of 1986 
(26 U.S.C. 4975(e)(7)). 
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‘‘(7) SURVIVING SPOUSE.—The term ‘surviving 
spouse’ has the meaning given such term in section 
101(3) of title 38, United States Code.’’. 
(b) VETERANS AFFAIRS DEFINITION OF SMALL BUSI-
NESS CONCERN CONSOLIDATED.— 
(1) IN
GENERAL.—Section 8127 of title 38, 
United States Code, is amended— 
(A) by striking subsection (h) and redesig-
nating subsections (i) through (l) as subsections 
(h) through (k), respectively; and 
(B) in subsection (k), as so redesignated— 
(i) by amending paragraph (2) to read 
as follows: 
‘‘(2) The term ‘small business concern owned and 
controlled by veterans’ has the meaning given that 
term under section 3(q)(3) of the Small Business Act 
(15 U.S.C. 632(q)(3)).’’; and 
(ii) by adding at the end the following 
new paragraph: 
‘‘(3) The term ‘small business concern owned and 
controlled by veterans with service-connected disabil-
ities’ has the meaning given the term ‘small business 
concern owned and controlled by service-disabled vet-
erans’ under section 3(q)(2) of the Small Business Act 
(15 U.S.C. 632(q)(2)).’’. 
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(2) CONFORMING AMENDMENTS.—Such section is 
further amended— 
(A) in subsection (b), by inserting ‘‘or a 
small business concern owned and controlled by 
veterans with service-connected disabilities’’ after 
‘‘a small business concern owned and controlled 
by veterans’’; 
(B) in subsection (c), by inserting ‘‘or a 
small business concern owned and controlled by 
veterans with service-connected disabilities’’ after 
‘‘a small business concern owned and controlled 
by veterans’’; 
(C) in subsection (d) by inserting ‘‘or small 
business concerns owned and controlled by vet-
erans with service-connected disabilities’’ after 
‘‘small business concerns owned and controlled 
by veterans’’ both places it appears; and 
(D) in subsection (f)(1), by inserting ‘‘, 
small business concerns owned and controlled by 
veterans with service-connected disabilities,’’ 
after ‘‘small business concerns owned and con-
trolled by veterans’’. 
(c) TECHNICAL CORRECTION.—Section 8(d)(3) of the 
Small Business Act (15 U.S.C. 637(d)(3)), is amended by 
adding at the end the following new subparagraph: 
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‘‘(H) In this contract, the term ‘small business 
concern owned and controlled by service-disabled vet-
erans’ has the meaning given that term in section 
3(q).’’. 
(d) REGULATIONS RELATING TO DATABASE OF THE 
SECRETARY OF VETERANS AFFAIRS.— 
(1) REQUIREMENT TO USE CERTAIN SMALL BUSI-
NESS
ADMINISTRATION
REGULATIONS.—Section 
8127(f)(4) of title 38, United States Code, is amended 
by striking ‘‘verified’’ and inserting ‘‘verified, using 
regulations issued by the Administrator of the Small 
Business Administration with respect to the status of 
the concern as a small business concern and the own-
ership and control of such concern,’’. 
(2) PROHIBITION ON SECRETARY OF VETERANS 
AFFAIRS
ISSUING
CERTAIN
REGULATIONS.—Section 
8127(f) of title 38, United States Code, is amended by 
adding at the end the following new paragraph: 
‘‘(7) The Secretary may not issue regulations related 
to the status of a concern as a small business concern and 
the ownership and control of such small business concern.’’. 
(e) DELAYED EFFECTIVE DATE.—The amendments 
made by subsections (a), (b), (c), and (d) shall take effect 
on the date on which the Administrator of the Small Busi-
ness Administration and the Secretary of Veterans Affairs 
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jointly issue regulations implementing such sections. Such 
date shall be not later than 18 months after the date of en-
actment of this Act. 
(f) APPEALS OF INCLUSION IN DATABASE.— 
(1) IN GENERAL.—Section 8127(f) of title 38, 
United States Code, as amended by section 504(d)(2), 
is further amended by adding at the end the following 
new paragraph: 
‘‘(8)(A) If the Secretary does not verify a concern for 
inclusion in the database under this subsection based on 
the status of the concern as a small business concern or the 
ownership or control of the concern, the concern may appeal 
the denial of verification to the Office of Hearings and Ap-
peals of the Small Business Administration (as established 
under section 5(i) of the Small Business Act). The decision 
of the Office of Hearings and Appeals shall be considered 
a final agency action. 
‘‘(B)(i) If an interested party challenges the inclusion 
in the database of a small business concern owned and con-
trolled by veterans or a small business concern owned and 
controlled by veterans with service-connected disabilities 
based on the status of the concern as a small business con-
cern or the ownership or control of the concern, the challenge 
shall be heard by the Office of Hearings and Appeals of 
the Small Business Administration as described in sub-
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paragraph (A). The decision of the Office of Hearings and 
Appeals shall be considered final agency action. 
‘‘(ii) In this subparagraph, the term ‘interested party’ 
means— 
‘‘(I) the Secretary; and 
‘‘(II) in the case of a small business concern that 
is awarded a contract, the contracting officer of the 
Department or another small business concern that 
submitted an offer for the contract that was awarded 
to the small business concern that submitted an offer 
under clause (i). 
‘‘(C) For each fiscal year, the Secretary shall reim-
burse the Administrator of the Small Business Administra-
tion in an amount necessary to cover any cost incurred by 
the Office of Hearings and Appeals of the Small Business 
Administration for actions taken by the Office under this 
paragraph. The Administrator is authorized to accept such 
reimbursement. The amount of any such reimbursement 
shall be determined jointly by the Secretary and the Admin-
istrator and shall be provided from fees collected by the Sec-
retary under multiple-award schedule contracts. Any dis-
agreement about the amount shall be resolved by the Direc-
tor of the Office of Management and Budget.’’. 
(2) EFFECTIVE DATE.—Paragraph (8) of sub-
section (f) of title 38, United States Code, as added 
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by paragraph (1), shall apply with respect to a 
verification decision made by the Secretary of Vet-
erans Affairs on or after the date of the enactment of 
this Act. 
SEC. 505. GAO REVIEW OF THE OFFICE OF GOVERNMENT 
CONTRACTING AND BUSINESS DEVELOPMENT 
OF THE SMALL BUSINESS ADMINISTRATION. 
(a) STUDY.—Not later than 60 days after the date of 
the enactment of this Act, the Comptroller General of the 
United States shall initiate a review of the Office of Govern-
ment Contracting and Business Development of the Small 
Business Administration. Such review shall examine— 
(1) the extent to which the personnel of the Small 
Business Administration who carry out procurement 
and business development programs report to the Of-
fice of Government Contracting and Business Devel-
opment; 
(2) whether greater efficiency and consistency in 
the certification process of procurement and business 
development programs could be achieved by creating 
a single organizational unit of employees to process 
all certifications required by procurement and busi-
ness development programs; 
(3) whether greater efficiency and efficacy in the 
performance of procurement and business development 
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programs could be achieved by improving the align-
ment of the field personnel assigned to such programs; 
(4) how the Office of Government Contracting 
and Business Development could improve its staffing 
of regulatory drafting functions and its coordination 
with the Federal Acquisition Regulatory Council to 
ensure timely rulemaking by the Small Business Ad-
ministration; and 
(5) any other areas in which the Comptroller 
General determines that the Small Business Adminis-
tration could improve its performance with respect to 
procurement and business development programs. 
(b) REPORT.—Not later than 1 year after initiating 
the review required by paragraph (1), the Comptroller Gen-
eral shall submit a report including the results of the re-
view, along with any recommendations for improvements 
or other suggestions with respect to procurement and busi-
ness development programs, to the Committee on Small 
Business of the House of Representatives and the Committee 
on Small Business and Entrepreneurship of the Senate. 
(c) PROCUREMENT
AND BUSINESS DEVELOPMENT 
PROGRAM DEFINED.—In this Act, the term ‘‘procurement 
and business development program’’ means a program re-
lated to procurement or business development established 
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under section 7, 8, 15, 31, 36, 44, 45, or 46 of the Small 
Business Act (15 U.S.C. 631 et seq.). 
SEC. 506. REQUIRED REPORTS PERTAINING TO CAPITAL 
PLANNING AND INVESTMENT CONTROL. 
The information described in 11302(c)(3)(B)(ii) of 
title 40, United States Code, shall be submitted to the Sen-
ate Committee on Small Business and Entrepreneurship 
and the Committee on Small Business of the House of Rep-
resentatives within 10 days of transmittal to the Director. 
SEC. 507. GAO REVIEW OF SURETY BONDS. 
Not later than 60 days after the date of the enactment 
of this Act, the Comptroller General of the United States 
shall initiate a review of surety bonds as they apply to fed-
eral small business procurement contracts. The review shall 
examine how frequently bonding requirements are waived 
by federal agencies, an explanation of the standard and 
process for waiving the requirements, an explanation of the 
review process for such waivers, and in cases when bond 
requirements are waived, how results compare to instances 
where requirements are not waived, and the process that 
whistleblowers go through when instances of fraud related 
to surety bonds are reported. 
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Union Calendar No. 545 
114TH CONGRESS 
2D SESSION 
H. R. 4341 
[Report No. 114–704, Part I] 
A BILL 
To amend the Small Business Act to improve 
transparency and clarity for small businesses, to 
clarify the role of small business advocates, to in-
crease opportunities for competition in subcon-
tracting, and for other purposes. 
JULY 25, 2016 
Reported from the Committee on Small Business with an 
amendment 
JULY 25, 2016 
The Committees on Armed Services, Oversight and Gov-
ernment Reform, and Veterans’ Affairs discharged; 
committed to the Committee of the Whole House on 
the State of the Union and ordered to be printed 
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