To amend the Small Business Act to provide for higher goals for procurement contracts awarded to small business concerns, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Contracting 
Opportunities Expansion Act of 2012''.

SEC. 2. GOALS FOR PROCUREMENT CONTRACTS AWARDED TO SMALL BUSINESS 
              CONCERNS.

    (a) In General.--Section 15(g) of the Small Business Act (15 U.S.C. 
644(g)) is amended by striking the subsection enumerator and inserting 
the following:
    ``(g) Goals for Procurement Contracts Awarded to Small Business 
Concerns.--''.
    (b) Government-Wide Goals.--Paragraph (1) of section 15(g) of such 
Act (15 U.S.C. 644(g)) is amended to read as follows:
            ``(1) Government-wide goals.--The President shall annually 
        establish Government-wide goals for procurement contracts 
        awarded to small business concerns, small business concerns 
        owned and controlled by service-disabled veterans, qualified 
        HUBZone small business concerns, small business concerns owned 
        and controlled by socially and economically disadvantaged 
        individuals, and small business concerns owned and controlled 
        by women in accordance with the following:
                    ``(A) The Government-wide goal for participation by 
                small business concerns shall be established at not 
                less than 26 percent of the total value of all prime 
                contract awards for each fiscal year and 40 percent of 
                the total value of all subcontract awards for each 
                fiscal year.
                    ``(B) The Government-wide goal for participation by 
                small business concerns owned and controlled by 
                service-disabled veterans shall be established at not 
                less than 3 percent of the total value of all prime 
                contract and at not less than 3 percent of the total 
                value of all subcontract awards for each fiscal year.
                    ``(C) The Government-wide goal for participation by 
                qualified HUBZone small business concerns shall be 
                established at not less than 3 percent of the total 
                value of all prime contract and at not less than 3 
                percent of the total value of all subcontract awards 
                for each fiscal year.
                    ``(D) The Government-wide goal for participation by 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals 
                shall be established at not less than 6 percent of the 
                total value of all prime contract and at not less than 
                6 percent of the total value of all subcontract awards 
                for each fiscal year.
                    ``(E) The Government-wide goal for participation by 
                small business concerns owned and controlled by women 
                shall be established at not less than 5 percent of the 
                total value of all prime contract and at not less than 
                5 percent of the total value of all subcontract awards 
                for each fiscal year.''.
    (c) Agency Goals.--Paragraph (2) of section 15(g) of such Act (15 
U.S.C. 644(g)) is amended to read as follows:
            ``(2) Agency goals.--
                    ``(A) Establishment.--
                            ``(i) In general.--The head of each Federal 
                        agency shall annually establish, for the agency 
                        that individual heads, a goal for procurement 
                        contracts awarded to--
                                    ``(I) small business concerns;
                                    ``(II) small business concerns 
                                owned and controlled by service-
                                disabled veterans;
                                    ``(III) qualified HUBZone small 
                                business concerns;
                                    ``(IV) small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals; 
                                and
                                    ``(V) small business concerns owned 
                                and controlled by women.
                            ``(ii) Certain goals derived from prior 
                        fiscal year participation rates.--For each 
                        fiscal year--
                                    ``(I) each goal established under 
                                clause (i)(II) shall be not less than 
                                the average of the percentage of 
                                participation by small business 
                                concerns owned and controlled by 
                                service-disabled veterans in each of 
                                the 3 preceding fiscal years;
                                    ``(II) each goal established under 
                                clause (i)(III) shall be not less than 
                                the average of the percentage of 
                                participation by qualified HUBZone 
                                small business concerns in each of the 
                                3 preceding fiscal years;
                                    ``(III) each goal established under 
                                clause (i)(IV) shall be not less than 
                                the average of the percentage of 
                                participation by small business 
                                concerns owned and controlled by 
                                socially and economically disadvantaged 
                                individuals in each of the 3 preceding 
                                fiscal years; and
                                    ``(IV) each goal established under 
                                clause (i)(V) shall be not less than 
                                the average of the percentage of 
                                participation by small business 
                                concerns owned and controlled by women 
                                in each of the 3 preceding fiscal 
                                years.
                    ``(B) Relationship to government-wide goals.--
                            ``(i) Scope.--The goals established by the 
                        head of a Federal agency under subparagraph (A) 
                        shall be in the same format as the goals 
                        established by the President under paragraph 
                        (1) and shall address both prime contract and 
                        subcontract awards.
                            ``(ii) Requirement to meet or exceed 
                        government-wide goals.--With respect to each 
                        goal for a fiscal year established under 
                        subparagraph (A) for a category of small 
                        business concern, the participation percentage 
                        applicable to such goal may not be less than 
                        the participation percentage applicable to the 
                        Government-wide goal for such fiscal year 
                        established under paragraph (1) for such 
                        category.
                    ``(C) Consultation required.--
                            ``(i) In general.--In establishing goals 
                        under subparagraph (A), the head of each 
                        Federal agency shall consult with the 
                        Administrator.
                            ``(ii) Disagreements.--If the Administrator 
                        and the head of a Federal agency fail to agree 
                        on a goal established under subparagraph (A), 
                        the disagreement shall be submitted to the 
                        Administrator for Federal Procurement Policy 
                        for final determination.
                    ``(D) Plan for achieving goals.--After establishing 
                goals under subparagraph (A) for a fiscal year, the 
                head of each Federal agency shall develop a plan for 
                achieving such goals, which shall apportion 
                responsibilities among the employees of such agency 
                having procurement powers.
                    ``(E) Expanded participation.--In establishing 
                goals under subparagraph (A), the head of each Federal 
                agency shall make a consistent effort to annually 
                expand participation by small business concerns from 
                each industry category in procurement contracts of such 
                agency, including participation by small business 
                concerns owned and controlled by service-disabled 
                veterans, qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals, 
                and small business concerns owned and controlled by 
                women.
                    ``(F) Consideration.--The head of each Federal 
                agency, in attempting to attain expanded participation 
                under subparagraph (E), shall consider--
                            ``(i) contracts awarded as the result of 
                        unrestricted competition; and
                            ``(ii) contracts awarded after competition 
                        restricted to eligible small business concerns 
                        under this section and under the program 
                        established under section 8(a).
                    ``(G) Communication regarding goals.--
                            ``(i) Importance of achieving goals.--Each 
                        procurement employee or program manager 
                        described in clause (ii) shall communicate to 
                        the subordinates of the procurement employee or 
                        program manager the importance of achieving 
                        goals established under subparagraph (A).
                            ``(ii) Procurement employees or program 
                        managers described.--A procurement employee or 
                        program manager described in this clause is a 
                        senior procurement executive, senior program 
                        manager, or Director of Small and Disadvantaged 
                        Business Utilization of a Federal agency having 
                        contracting authority.''.
    (d) Enforcement; Determinations of the Total Value of Contract 
Awards.--Section 15(g) of the Small Business Act (15 U.S.C. 644(g)), as 
amended by this Act, is further amended by adding at the end the 
following:
            ``(3) Enforcement.--If the Administrator does not issue the 
        report required in paragraph (2) on or before the date that is 
        120 days after the end of the prior fiscal year, the 
        Administrator may not carry out or establish any pilot program 
        until the date on which the Administrator issues the report.
            ``(4) Determinations of the total value of contract 
        awards.--For purposes of the goals established under paragraphs 
        (1) and (2), the total value of contract awards for a fiscal 
        year may not be determined in a manner that excludes the value 
        of a contract 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;
                    ``(D) whether funding for the contract is made 
                available in an appropriations Act, if the contract is 
                subject to competition in the Contract Act; or
                    ``(E) whether the contract is subject to the 
                Federal Acquisition Regulation.''.

SEC. 3. STUDIES ON HOW TO IMPROVE PARTICIPATION IN FEDERAL CONTRACTING 
              BY TARGETED GROUPS.

    (a) Internal Agency Processes.--Not later than December 31, 2013, 
the Comptroller General of the United States, in consultation with the 
Administrator of the Small Business Administration and the 
Administrator of General Services, shall complete a study and submit a 
report to Congress on improving internal processes of agencies engaged 
in contracting or procurement and increasing outreach to those groups 
that are the subject of contracting goals under section 15(g)(1) of the 
Small Business Act.
    (b) Recommended Legislative Action.--Not later than December 31, 
2013, the Comptroller General of the United States, in consultation 
with the Administrator of the Small Business Administration and the 
Administrator of General Services, shall complete a study and submit a 
report to Congress on legislative actions Congress can take to improve 
participation in contracting by those groups that are the subject of 
contracting goals under section 15(g)(1) of the Small Business Act.
    (c) New Government-Wide Goals for Certain Small Businesses.--Not 
later than December 31, 2013, the Comptroller General of the United 
States, in consultation with the Administrator of the Small Business 
Administration, the Secretary of Veterans Affairs, and the 
Administrator of General Services, shall complete a study and submit a 
report to Congress on the feasibility of the creation of a Government-
wide goal for contracting with small business concerns owned and 
controlled by veterans.

SEC. 4. INCREASE IN GOVERNMENT-WIDE GOAL FOR ALL TARGETED GROUPS IN 
              2018.

    (a) In General.--Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)), as amended by this Act, is further amended--
            (1) in subparagraph (A), by striking ``26 percent'' and 
        inserting ``27 percent'';
            (2) in subparagraph (C), by striking ``3 percent'' each 
        place it appears and inserting ``4 percent'';
            (3) in subparagraph (D), by striking ``6 percent'' each 
        place it appears and inserting ``7.5 percent''; and
            (4) in subparagraph (E), by striking ``5 percent'' each 
        place it appears and inserting ``6 percent''.
    (b) Effective Date.--The amendment made by this section shall take 
effect beginning on fiscal year 2017.

Summary: Small Business Contracting Opportunities Expansion Act of 2012 - Amends the Small Business Act to raise from 23% to 26% the governmentwide prime contract award goal for participation by small business concerns and make the governmentwide subcontract participation award goal 40% for such businesses. Increases percentage goals for awards to qualified HUBZone [historically underutilized business zone] small businesses and small businesses owned and controlled by socially and economically disadvantaged individuals.

Requires such latter procurement goals, as well as goals for small businesses owned and controlled by service-disabled veterans and by women (collectively, the targeted groups), as established annually by the head of each federal agency participating in federal procurement contracts, to: (1) be at least the average percentage of participation that occurred over the last three fiscal years, (2) be in the same format as the goals established by the President, (3) address both prime contract and subcontract awards, and (4) meet or exceed the government-wide goals for each small business category. Requires each agency head to: (1) consult with the Small Business Administration (SBA) Administrator in establishing agency goals, and (2) develop a plan for achieving agency goals.

Prohibits the carrying out or establishing of any SBA pilot program if the Administrator does not issue a required annual report which compiles and analyzes each agency's performance with respect to procurement contract participation by small businesses.

Requires the Comptroller General to study, and report to Congress on: (1) improving internal processes of federal procurement contracting agencies and increasing outreach to those groups that make up the small business categories, (2) legislative actions to improve participation in contracting by such groups, and (3) the feasibility of creating a governmentwide contract participation goal for small businesses owned and controlled by veterans.

Increases, as of FY2017, the governmentwide small business participation goal as well as the goals for targeted groups.