I
106TH CONGRESS
1ST SESSION
H. R. 2334
To amend title 10, United States Code, to extend and make improvements
to the provisions relating to procurement contract goals for small dis-
advantaged businesses and certain institutions of higher education, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 1999
Ms. VELA´ZQUEZ (for herself, Mr. SKELTON, Ms. MILLENDER-MCDONALD, Mr.
DAVIS of Illinois, Mrs. MCCARTHY of New York, Mr. PASCRELL, Mr.
HINOJOSA, Mrs. CHRISTENSEN, Mr. BRADY of Pennsylvania, Mr. GON-
ZALEZ, Ms. BERKLEY, Mrs. NAPOLITANO, Mr. SERRANO, Ms. BROWN of
Florida, Mr. CLYBURN, Mr. FATTAH, Ms. JACKSON-LEE of Texas, Ms.
KILPATRICK, Mr. RANGEL, Mr. CUMMINGS, Mr. WYNN, Mrs. CLAYTON,
Ms. LEE, Mr. MENENDEZ, Mr. ORTIZ, Mrs. MEEK of Florida, Ms. WA-
TERS, Mr. GUTIERREZ, and Ms. SANCHEZ) introduced the following bill;
which was referred to the Committee on Armed Services
A BILL
To amend title 10, United States Code, to extend and make
improvements to the provisions relating to procurement
contract goals for small disadvantaged businesses and
certain institutions of higher education, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Access to Contract
Equity Act’’.
SEC. 2. CONTRACT GOALS FOR SMALL DISADVANTAGED
BUSINESSES AND CERTAIN INSTITUTIONS OF
HIGHER EDUCATION.
(a) MODIFICATION OF LIMITATION ON USE OF PRICE
ADJUSTMENTS.—Subparagraph (B) of section 2323(e)(3)
of title 10, United States Code, is amended—
(1) by redesignating clause (iii) as clause (iv);
and
(2) by inserting after clause (ii) the following
new clause:
‘‘(iii) No suspension shall be issued in an indus-
try category under this paragraph if the President
determines in writing that contracts for a price ex-
ceeding fair market cost are necessary to remedy
demonstrated discrimination in such industry cat-
egory. Any such determination shall be published in
the Federal Register for a period of not less than 60
days before becoming effective. Any person or entity
adversely affected by the application of such des-
ignation may seek judicial review in the appropriate
United States district court.’’.
(b) EXTENSION OF SECTION 2323.—Subsection (k)
of section 2323 of such Code is amended by striking out
‘‘2000’’ both places it appears and inserting in lieu thereof
‘‘2005’’.
SEC. 3. MENTOR-PROTEGE PROGRAM IMPROVEMENTS.
(a) PROGRAM PARTICIPATION TERM.—Subsection
(e)(2) of section 831 of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is
amended to read as follows:
‘‘(2) A program participation term for any pe-
riod of not more than three years, except that the
term may be a period of up to five years if the Sec-
retary of Defense determines in writing that unusual
circumstances justify a program participation term
in excess of three years.’’.
(b) 
INCENTIVES
AUTHORIZED
FOR
MENTOR
FIRMS.—Subsection (g) of such section is amended—
(1) in paragraph (1), by striking ‘‘shall’’ and
inserting ‘‘may’’;
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘shall’’ and inserting
‘‘may’’;
(ii) by striking ‘‘subsection (f)’’ and
all that follows through ‘‘(i) as a line item’’
and inserting ‘‘subsection (f) as provided
for in a line item’’;
(iii) by striking the semicolon pre-
ceding clause (ii) and inserting ‘‘, except
that this clause does not apply in a case in
which the Secretary of Defense determines
in writing that unusual circumstances jus-
tify reimbursement using a separate con-
tract.’’; and
(iv) by striking clauses (ii), (iii), and
(iv); and
(B) by striking subparagraph (B) and in-
serting the following:
‘‘(B) The determinations made in annual perform-
ance reviews of a mentor firm’s mentor-protege agreement
under subsection (l)(2) shall be a major factor in the de-
terminations of amounts of reimbursement, if any, that
the mentor firm is eligible to receive in the remaining
years of the program participation term under the agree-
ment.
‘‘(C) The total amount reimbursed under this para-
graph to a mentor firm for costs of assistance furnished
in a fiscal year to a protege firm may not exceed
$1,000,000, except in a case in which the Secretary of De-
fense determines in writing that unusual circumstances
justify a reimbursement of a higher amount.’’; and
(3) in paragraph (3)(A), by striking ‘‘either
subparagraph (A) or (C) of paragraph (2) or are re-
imbursed pursuant to subparagraph (B) of such
paragraph’’ and inserting ‘‘paragraph (2)’’.
(c) FIVE-YEAR EXTENSION OF AUTHORITY.—Sub-
section (j) of such section is amended to read as follows:
‘‘(j) EXPIRATION OF AUTHORITY.—(1) No mentor-
protege agreement may be entered into under subsection
(e) after September 30, 2004.
‘‘(2) No reimbursement may be paid, and no credit
toward the attainment of a subcontracting goal may be
granted, under subsection (g) for any cost incurred after
September 30, 2005.’’.
(d) REPORTS AND REVIEWS.—Subsection (l) of such
section is amended to read as follows:
‘‘(l) REPORTS AND REVIEWS.—(1) The mentor firm
and protege firm under a mentor-protege agreement shall
submit to the Secretary of Defense an annual report on
the progress made by the protege firm in employment, rev-
enues, and participation in Department of Defense con-
tracts during the fiscal year covered by the report. The
requirement for submission of an annual report applies
with respect to each fiscal year covered by the program
participation term under the agreement and each of the
two fiscal years following the expiration of the program
participation term. The Secretary shall prescribe the tim-
ing and form of the annual report.
‘‘(2)(A) The Secretary shall conduct an annual per-
formance review of each mentor-protege agreement that
provides for reimbursement of costs. The Secretary shall
determine on the basis of the review whether—
‘‘(i) all costs reimbursed to the mentor firm
under the agreement were reasonably incurred to
furnish assistance to the protege firm in accordance
with the requirements of this section and applicable
regulations; and
‘‘(ii) the mentor firm and protege firm accu-
rately reported progress made by the protege firm in
employment, revenues, and participation in Depart-
ment of Defense contracts during the program par-
ticipation term covered by the mentor-protege agree-
ment and the two fiscal years following the expira-
tion of the program participation term.
‘‘(B) The Secretary shall act through the Commander
of the Defense Contract Management Command in car-
rying out the reviews and making the determinations
under subparagraph (A).
‘‘(3) Not later than 6 months after the end of each
of fiscal years 2000 through 2004, the Secretary of De-
fense shall submit to Congress an annual report on the
mentor-protege program for that fiscal year.
‘‘(2) The annual report for a fiscal year shall include,
at a minimum, the following:
‘‘(A) The number of mentor-protege agreements
that were entered into during the fiscal year.
‘‘(B) The number of mentor-protege agreements
that were in effect during the fiscal year.
‘‘(C) The total amount reimbursed to mentor
firms pursuant to subsection (g) during the fiscal
year.
‘‘(D) Each mentor-protege agreement, if any,
that was approved during the fiscal year in accord-
ance with subsection (e)(2) to provide a program
participation term in excess of 3 years, together with
the justification for the approval.
‘‘(E) Each reimbursement of a mentor firm in
excess of the limitation in subsection (g)(2)(C) that
was made during the fiscal year pursuant to an ap-
proval granted in accordance with that subsection,
together with the justification for the approval.
‘‘(F) Trends in the progress made in employ-
ment, revenues, and participation in Department of
Defense contracts by the protege firms participating
in the program during the fiscal year and the pro-
tege firms that completed or otherwise terminated
participation in the program during the preceding
two fiscal years.’’.
(e) REPEAL OF LIMITATION ON AVAILABILITY OF
FUNDING.—Subsection (n) of such section is repealed.
(f) EFFECTIVE DATE AND SAVINGS PROVISION.—(1)
The amendments made by this section shall take effect
on October 1, 1999, and shall apply with respect to men-
tor-protege agreements that are entered into under section
831(e) of the National Defense Authorization Act for Fis-
cal Year 1991 on or after that date.
(2) Section 831 of the National Defense Authoriza-
tion Act for Fiscal Year 1991, as in effect on September
30, 1999, shall continue to apply with respect to mentor-
protege agreements entered into before October 1, 1999.
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