Congress has generally broad authority to impose requirements upon the federal procurement process (i.e., the process whereby agencies obtain supplies and services from the private sector). One of the many ways in which Congress has exercised this authority is by enacting measures intended to promote contracting and subcontracting with "small businesses" by federal agencies. Among other things, these measures (1) declare a congressional policy of ensuring that a "fair proportion" of federal contract and subcontract dollars are awarded to small businesses; (2) establish government-wide and agency-specific goals for the percentage of contract and/or subcontract dollars awarded to small businesses; (3) require or authorize agencies to conduct competitions in which only small businesses may compete (i.e., set-asides), or make noncompetitive awards to them in circumstances when such awards could not be made to other businesses; and (4) task the Small Business Administration (SBA) and officers of the procuring agencies with reviewing and helping to restructure proposed procurements so as to maximize opportunities for small business participation. Small business contracting and subcontracting are complicated topics, in part, because numerous statutes—implemented by multiple agencies and subject to interpretation by multiple judicial and other tribunals—require or authorize particular actions by federal agencies. The Small Business Act of 1958, as amended, is key among these authorities. However, other statutes also play a prominent role, especially where the activities of particular agencies are concerned. In addition, while some provisions of the Small Business Act are implemented by SBA, other provisions authorize or require actions by any "procuring activity." Moreover, most of these statutes leave at least something to the discretion of the agency tasked with implementing the statute, which means that regulations are also significant authorities governing federal contracting with small businesses. The SBA has promulgated regulations implementing the Small Business Act. However, other regulations implementing the act have been promulgated by the Federal Acquisition Regulatory Council (FAR Council). The FAR Council has also promulgated regulations implementing other statutory authorities, as have individual agencies. Further, these statutes and regulations are regularly subject to interpretation by various judicial and other tribunals, including SBA's Office of Hearings and Appeals (OHA), for eligibility for small business contracting programs, and the Government Accountability Office (GAO), for certain other questions that do not involve such eligibility. Understanding this legal framework is arguably important not only for its own sake, but also because Congress frequently enacts or proposes legislation that responds to agency regulations or judicial and other decisions. This report provides an overview of the various legal authorities governing small business contracting and subcontracting, as well as the relationship between them. It also explains the roles of the SBA, procuring activities, OHA, GAO, and other tribunals in implementing and construing the law governing federal contracting and subcontracting with small businesses. (See also Table A-1 .) The report begins with the statutory authorities, then discusses the regulations implementing these statutes, and concludes by discussing the various judicial and other tribunals whose decisions regularly construe small business statutes and regulations. A companion report, CRS Report R43573, Federal Contracting and Subcontracting with Small Businesses: Legislation in the 113 th Congress , by [author name scrubbed], describes measures that Members of the 113 th Congress have enacted or proposed in response to particular issues pertaining to small business contracting and subcontracting. Over the years, Congress has enacted numerous statutes intended to encourage federal agencies to contract or subcontract with small businesses. The Small Business Act of 1958, as amended, is arguably the primary such statute, but other statutes also govern contracting with small businesses. Congress has broad authority to enact legislation in this area because the government has generally been seen to "enjoy[] the unrestricted power to produce its own supplies, to determine those with whom it will deal, and to fix the terms and conditions upon which it will make needed purchases." However, the U.S. Constitution does impose a few limits upon Congress's power in this regard, most notably by guaranteeing all persons equal protection of the law. Equal protection issues arise most frequently with contracting preferences based on race or gender. Race and gender are "suspect classifications," which means that the government must demonstrate that any programs that classify individuals on this basis are narrowly tailored to further a compelling government interest, in the case of race-conscious programs; or are substantially related to important government objectives, in the case of gender-conscious programs. The Small Business Act of 1958, as amended, plays a key role in governing federal contracting and subcontracting with small businesses. Congress established the SBA as a permanent agency "[i]n order to carry out the policies" of this act, and the act specifically tasks the SBA with certain responsibilities pertaining to small business contracting. However, the act also authorizes or requires procuring activities to take certain steps pertaining to contracting and subcontracting with small businesses. The Small Business Act delegates a number of responsibilities related to small business contracting and subcontracting to SBA. Three of these responsibilities are particularly noteworthy. First, Sections 7(j) and 8(a) of the act require SBA to establish a "program" to provide non-financial assistance to certain small businesses owned and controlled by socially and economically disadvantaged individuals, and to enter into contracts with other government agencies that are "subcontracted" to such firms. These requirements underlie the SBA's Minority Small Business and Capital Ownership Development Program (commonly known as the 8(a) Program) and arguably distinguish it from federal "programs" for other types of small businesses (e.g., women-owned). SBA is not expressly required by statute to implement assistance programs for other types of small businesses, although it has historically furnished assistance to them pursuant to its general authority to provide "technical, managerial, and informational aids" to small businesses whenever it "determines such action is necessary." Similarly, the Small Business Act does not contemplate SBA contracting with procuring activities for particular supplies and services and then subcontracting this work to other types of small businesses. Rather, as discussed below, the act authorizes procuring activities to contract directly with such businesses. Although SBA, in practice, generally delegates its authority to subcontract with 8(a) firms to other agencies, Section 8(a) gives SBA arguably unique authority over contracting with 8(a) firms, such that SBA must consent to "releasing" requirements formerly procured through the 8(a) Program for procurement outside the 8(a) Program. Second, Section 8(b) of the act authorizes SBA to certify to Government procurement officers … with respect to all elements of responsibility, including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, and tenacity, of any small business concern or group of such concerns to receive and perform a specific government contract. This provision is particularly significant because federal agencies generally may not award a contract without first determining that the awardee is "responsible" for purposes of the contract. The responsibility determination process considers various factors, including whether the prospective contractor has adequate financial resources and the necessary equipment and facilities to perform the contract. Contracting officers have generally broad discretion in determining whether prospective contractors are responsible. However, because of Section 8(b) of the Small Business Act, contracting officers cannot determine that a small business contractor is nonresponsible without first referring the matter to SBA, which may issue a Certificate of Competence (COC) declaring the contractor eligible for the award. When SBA issues a COC, contracting officers are required to "accept [its] decision to issue a Certificate of Competency and award the contract to the concern." Third, Sections 3 and 5 of the act grant the Administrator of Small Business broad rulemaking authority as to firms' size, eligibility for "assistance" under the act, and related matters. Section 3 establishes the minimum criteria that firms must meet in order to qualify as small under the act; namely, they must be "independently owned and operated" and "not dominant in [their] field of operations." However, Section 3 also provides that, [i]n addition to the criteria specified [above], the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this chapter or any other Act. The[se] standards … may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors. The Administrator has used this authority to promulgate regulations, discussed below, which set standards for size in various industries based upon firms' annual receipts or number of employees. Section 5 further authorizes the Administrator to "make such rules and regulations as he deems necessary to carry out the authority vested in him by or pursuant to this [Act]." This provision allows SBA to exercise some control over implementation of those provisions of the act which authorize procuring activities to set aside contracts for, or make sole-source awards to, small businesses. Section 36 of the act, for example, provides that contracting officers of any agency may conduct competitions in which only service-disabled veteran-owned small businesses may participate, provided that certain conditions exist. However, Section 3 of the act, which only SBA has the authority to implement, defines "service-disabled veteran," "small business concern owned and controlled by service disabled veterans," and "veteran." This effectively means that SBA may determine eligibility for set-asides for service-disabled veteran-owned small businesses by promulgating regulations implementing Section 3.