A bill to amend the Small Business Act with respect to 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 Goaling Act of 
2012''.

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

    (a) Heading.--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) Governmentwide Goals.--Paragraph (1) of section 15(g) of the 
Small Business Act (15 U.S.C. 644(g)) is amended to read as follows:
            ``(1) Governmentwide goals.--The President shall annually 
        establish Governmentwide 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 Governmentwide goal for participation by 
                small business concerns shall be established at not 
                less than 25 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 Governmentwide 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 Governmentwide 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 Governmentwide goal for participation by 
                small business concerns 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 at not less than 
                5 percent of the total value of all subcontract awards 
                for each fiscal year.
                    ``(E) The Governmentwide 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.
                    ``(F) The Administrator shall ensure that the 
                cumulative annual prime contract goals for all agencies 
                meet or exceed the annual Government-wide prime 
                contract goal established by the President pursuant to 
                this paragraph.''.
    (c) Agency Goals.--Paragraph (2) of section 15(g) of the Small 
Business Act (15 U.S.C. 644(g)) is amended to read as follows:
            ``(2) Agency goals.--
                    ``(A) Establishment.--The head of each Federal 
                agency shall annually establish, for the agency that 
                individual heads, 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.
                    ``(B) Relationship to governmentwide 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 
                        governmentwide goals.--The participation 
                        percentage applicable to each goal for a fiscal 
                        year established under subparagraph (A) for 
                        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 may not be less than the participation 
                        percentage applicable to the Governmentwide 
                        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 the Competition in Contracting Act; or
                    ``(E) whether the contract is subject to the 
                Federal Acquisition Regulation.''.

SEC. 3. REPORTING ON GOALS FOR PROCUREMENT CONTRACTS AWARDED TO SMALL 
              BUSINESS CONCERNS.

    Subsection (h) of section 15 of the Small Business Act (15 U.S.C. 
644) is amended to read as follows:
    ``(h) Reporting on Goals for Procurement Contracts Awarded to Small 
Business Concerns.--
            ``(1) Agency reports.--At the conclusion of each fiscal 
        year, the head of each Federal agency shall submit to the 
        Administrator a report describing--
                    ``(A) the extent of the participation by small 
                business concerns, small business concerns owned and 
                controlled by veterans (including 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 the procurement contracts of such agency 
                during such fiscal year;
                    ``(B) whether the agency achieved the goals 
                established for the agency under subsection (g)(2)(A) 
                with respect to such fiscal year; and
                    ``(C) any justifications for a failure to achieve 
                such goals.
            ``(2) Reports by administrator.--Not later than 60 days 
        after receiving a report from each Federal agency under 
        paragraph (1) with respect to a fiscal year, the Administrator 
        shall submit to the President and Congress a report that 
        includes--
                    ``(A) a copy of each report submitted to the 
                Administrator under paragraph (1);
                    ``(B) a determination of whether each goal 
                established by the President under subsection (g)(1) 
                for such fiscal year was achieved;
                    ``(C) a determination of whether each goal 
                established by the head of a Federal agency under 
                subsection (g)(2)(A) for such fiscal year was achieved;
                    ``(D) the reasons for any failure to achieve a goal 
                established under paragraph (1) or (2)(A) of subsection 
                (g) for such fiscal year and a description of actions 
                planned by the applicable agency to address such 
                failure, except that the Administrator must concur with 
                each remediation plan;
                    ``(E) for the Federal Government and each Federal 
                agency, an analysis of the number and dollar amount of 
                prime contracts awarded during such fiscal year to--
                            ``(i) small business concerns--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns; 
                                and
                                    ``(IV) through unrestricted 
                                competition;
                            ``(ii) small business concerns owned and 
                        controlled by service-disabled veterans--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to small business concerns 
                                owned and controlled by service-
                                disabled veterans; and
                                    ``(V) through unrestricted 
                                competition;
                            ``(iii) qualified HUBZone small business 
                        concerns--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to qualified HUBZone small 
                                business concerns;
                                    ``(V) through unrestricted 
                                competition where a price evaluation 
                                preference was used; and
                                    ``(VI) through unrestricted 
                                competition where a price evaluation 
                                preference was not used;
                            ``(iv) small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals; 
                                and
                                    ``(V) through unrestricted 
                                competition;
                            ``(v) small business concerns owned by an 
                        Alaska Native Corporation--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals; 
                                and
                                    ``(V) through unrestricted 
                                competition; and
                            ``(vi) small business concerns owned and 
                        controlled by women--
                                    ``(I) in the aggregate;
                                    ``(II) through competitions 
                                restricted to small business concerns;
                                    ``(III) through competitions 
                                restricted using the authority under 
                                section 8(m)(2);
                                    ``(IV) through competitions 
                                restricted using the authority under 
                                section 8(m)(2) and in which the waiver 
                                authority under section 8(m)(3) was 
                                used; and
                                    ``(V) through unrestricted 
                                competition; and
                    ``(F) for the Federal Government and each Federal 
                agency, the number, dollar amount, and distribution 
                with respect to the North American Industry 
                Classification System of subcontracts awarded during 
                such fiscal year 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.''.

SEC. 4. SENIOR EXECUTIVES.

    (a) Training.--Section 3396(a) of title 5, United States Code, is 
amended by adding at the end the following: ``A program established 
under this subsection shall include training with respect to Federal 
procurement requirements, including contracting requirements under the 
Small Business Act (15 U.S.C. 631 et seq.).''.
    (b) Performance Appraisals.--Section 4313 of title 5, United States 
Code, is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) meeting the goals established by the head of the 
        agency under section 15(g)(2)(A) of the Small Business Act (15 
        U.S.C. 644(g)(2)(A)).''.

Summary: Small Business Goaling Act of 2012 - Amends the Small Business Act to raise from 23% to 25% the governmentwide prime contract award goal for participation by small business concerns and to make the governmentwide subcontract participation award goal 40% for such businesses. Revises percentage goals for awards to small businesses owned and controlled by service-disabled veterans, qualified HUBZone (historically underutilized business zone) small businesses, small businesses owned by socially and economically disadvantaged individuals, and small businesses owned by women (small business categories).

Requires the small business procurement goals established by the head of each federal agency participating in federal procurement contracts to: (1) be in the same format as the goals established by the President, (2) address both prime contract and subcontract awards, and (3) meet or exceed the government-wide goals for each small business category. Requires each agency head to: (1) consult with the Administrator of the Small Business Administration (SBA) in establishing agency goals, and (2) develop a plan for achieving agency goals.

Revises requirements concerning information required to be included in annual reports from: (1) agency heads to the Administrator concerning the extent of small business participation in that agency's procurement contracts; and (2) the Administrator to the President and Congress on whether individual agency goals were achieved, as well as reasons for any failure to achieve such goals. Requires, in the latter reports, information concerning the number and dollar amounts of prime contracts awarded to small businesses owned by an Alaska Native Corporation.

Requires training programs established for the development of federal senior executives to include training with respect to federal procurement requirements, including those under the Small Business Act. Requires senior executive performance appraisals to take into account the individual's success in meeting agency small business federal procurement contracting goals.