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Donate NowH.R.1873 - Small Business Fairness in Contracting Act
To reauthorize the programs and activities of the Small Business Administration relating to procurement, and for other purposes.
| Version | Word Count | Changes From Previous Version | Percent Change |
|---|---|---|---|
| Introduced in House | 2,363 | n/a | n/a |
| Reported in House | 6,765 | 75 | 70% |
| Engrossed in House | 4,377 | 49 | 63% |
| Referred in Senate | 4,359 | 5 Show Changes Hide Changes | 2% |
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HR 1873 EHRFSCommentsClose CommentsPermalink
May 11, 2007
Received; read twice and referred to the Committee on Small Business and EntrepreneurshipCommentsClose CommentsPermalink
To reauthorize the programs and activities of the Small Business Administration relating to procurement, and for other purposes.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Small Business Fairness in Contracting Act'.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink
Sec. 2. Regulations.CommentsClose CommentsPermalink
TITLE I--CONTRACT BUNDLING
Sec. 101. Definitions of bundling of contract requirements and related terms.CommentsClose CommentsPermalink
Sec. 102. Justification.CommentsClose CommentsPermalink
Sec. 103. Appeals.CommentsClose CommentsPermalink
Sec. 104. Review.CommentsClose CommentsPermalink
TITLE II--INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND SUBCONTRACTS
Sec. 201. Small business goal.CommentsClose CommentsPermalink
Sec. 202. Include overseas contracts in small business goal.CommentsClose CommentsPermalink
Sec. 203. Annual goal negotiation.CommentsClose CommentsPermalink
Sec. 204. Usage of small companies in goal achievement.CommentsClose CommentsPermalink
Sec. 205. Annual plan for each agency explaining how agency will meet small business goals.CommentsClose CommentsPermalink
Sec. 206. Making small businesses the first choice.CommentsClose CommentsPermalink
Sec. 207. Uniform metric for subcontracting achievements.CommentsClose CommentsPermalink
Sec. 208. Subcontracting database.CommentsClose CommentsPermalink
Sec. 209. National database.CommentsClose CommentsPermalink
Sec. 210. Review of subcontracting plans.CommentsClose CommentsPermalink
Sec. 211. Agency obligation for fulfilling contracting goals.CommentsClose CommentsPermalink
Sec. 212. Appropriate limits on value of sole source contracts.CommentsClose CommentsPermalink
Sec. 213. Small business goals for green small business concerns.CommentsClose CommentsPermalink
Sec. 214. Study on providing financial incentives to contractors that meet minority and disadvantaged business enterprise goals.CommentsClose CommentsPermalink
TITLE III--PROTECTION OF TAXPAYERS FROM FRAUD
Sec. 301. Small business size protest notification.CommentsClose CommentsPermalink
Sec. 302. Review of national registry.CommentsClose CommentsPermalink
Sec. 303. Recertification of compliance with size standards and registration with Central Contractor Registry.CommentsClose CommentsPermalink
TITLE IV--AUTHORIZATION OF APPROPRIATIONS
Sec. 401. Authorization of appropriations.CommentsClose CommentsPermalink
SEC. 2. REGULATIONS.
(a) In General- Not later than 180 days after the date of the enactment of this Act--CommentsClose CommentsPermalink
(1) the Administrator of the Small Business Administration shall promulgate regulations to implement this Act and the amendments made by this Act; andCommentsClose CommentsPermalink
(2) the Federal Acquisition Regulation shall be revised to implement this Act and the amendments made by this Act.CommentsClose CommentsPermalink
(b) Notice and Comment- The regulations required by subsection (a) shall be promulgated after opportunity for notice and comment as required by
TITLE I--CONTRACT BUNDLING
SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS AND RELATED TERMS.
Section 3 of the Small Business Act (
`(o) Definitions of Bundling of Contract Requirements and Related Terms- For purposes of this Act:CommentsClose CommentsPermalink
`(1) BUNDLED CONTRACT-CommentsClose CommentsPermalink
`(A) IN GENERAL- The term `bundled contract' means a contract or order that is entered into to meet procurement requirements that are consolidated in a bundling of contract requirements, without regard to its designation by the procuring agency or whether a study of the effects of the solicitation on civilian or military personnel has been made.CommentsClose CommentsPermalink
`(B) EXCEPTIONS- The term does not include--CommentsClose CommentsPermalink
`(i) a contract or order with an aggregate dollar value below the dollar threshold specified in paragraph (4); orCommentsClose CommentsPermalink
`(ii) a contract or order that is entered into to meet procurement requirements, all of which are exempted requirements under paragraph (5).CommentsClose CommentsPermalink
`(2) BUNDLING OF CONTRACT REQUIREMENTS-CommentsClose CommentsPermalink
`(A) IN GENERAL- The term `bundling of contract requirements' means the use of any bundling methodology to satisfy 2 or more procurement requirements for goods or services previously supplied or performed under separate smaller contracts or orders, or to satisfy 2 or more procurement requirements for construction services of a type historically performed under separate smaller contracts or orders, that is likely to be unsuitable for award to a small business concern due to--CommentsClose CommentsPermalink
`(i) the diversity, size, or specialized nature of the elements of the performance specified;CommentsClose CommentsPermalink
`(ii) the aggregate dollar value of the anticipated award;CommentsClose CommentsPermalink
`(iii) the geographical dispersion of the contract or order performance sites; orCommentsClose CommentsPermalink
`(iv) any combination of the factors described in clauses (i), (ii), and (iii).CommentsClose CommentsPermalink
`(B) INCLUSION OF NEW FEATURES OR FUNCTIONS- A combination of contract requirements that would meet the definition of a bundling of contract requirements but for the addition of a procurement requirement with at least one new good or service shall be considered to be a bundling of contract requirements unless the new features or functions substantially transform the goods or services and will provide measurably substantial benefits to the government in terms of quality, performance, or price.CommentsClose CommentsPermalink
`(C) EXCEPTIONS- The term does not include--CommentsClose CommentsPermalink
`(i) the use of a bundling methodology for an anticipated award with an aggregate dollar value below the dollar threshold specified in paragraph (5); orCommentsClose CommentsPermalink
`(ii) the use of a bundling methodology to meet procurement requirements, all of which are exempted requirements under paragraph (6).CommentsClose CommentsPermalink
`(3) BUNDLING METHODOLOGY- The term `bundling methodology' means--CommentsClose CommentsPermalink
`(A) a solicitation to obtain offers for a single contract or order, or a multiple award contract or order; orCommentsClose CommentsPermalink
`(B) a solicitation of offers for the issuance of a task or a delivery order under an existing single or multiple award contract or order.CommentsClose CommentsPermalink
`(4) SEPARATE SMALLER CONTRACT- The term `separate smaller contract', with respect to bundling of contract requirements, means a contract or order that has been performed by 1 or more small business concerns or was suitable for award to 1 or more small business concerns.CommentsClose CommentsPermalink
`(5) DOLLAR THRESHOLD- The term `dollar threshold' means $65,000,000, if solely for construction services.CommentsClose CommentsPermalink
`(6) EXEMPTED REQUIREMENTS- The term `exempted requirement' means a procurement requirement solely for items that are not commercial items (as the term `commercial item' is defined in section 4(12) of the Office of Federal Procurement Policy Act (
`(7) PROCUREMENT REQUIREMENT- The term `procurement requirement' means a determination by an agency that a specified good or service is needed to satisfy the mission of the agency.'.CommentsClose CommentsPermalink
SEC. 102. JUSTIFICATION.
Section 15(a) of the Small Business Act (
(1) by striking `(2) why delivery schedules' and inserting `(2) the names, addresses and size of the incumbent contract holders; (3) a description of the industries that might be interested in bidding on the contract requirements; (4) the number of small businesses listed in the industry categories that could be excluded from future bidding if the contract is combined or packaged; (5) why delivery schedules';CommentsClose CommentsPermalink
(2) by striking `(3) why the proposed acquisition' and inserting `(6) why the proposed acquisition';CommentsClose CommentsPermalink
(3) by striking `(4) why construction' and inserting `(7) why construction';CommentsClose CommentsPermalink
(4) by striking `(5) why the agency' and inserting `(8) why the agency';CommentsClose CommentsPermalink
(5) by striking `justified.' and inserting `justified. The statement shall also set forth the proposed procurement strategy required by subsection (e) and, if applicable, the specifications required by subsection (e)(3). The statement shall be made available to the public, including through dissemination in the Federal contracting opportunities database, concurrently with the issuance of the solicitation.'; andCommentsClose CommentsPermalink
(6) by inserting after `prime contracting opportunities.' the following: `If no notification of the procurement and accompanying statement is received, but the Administrator determines that there is cause to believe the contract combines requirements or a contract (single or multiple award) or task or delivery order for construction services or includes unjustified bundling, then the Administrator may request that such a statement of work goods or services be completed by the procurement activity and sent to the Procurement Center Representative and the solicitation process postponed for 10 days to allow the Administrator to review the statement and make recommendations as described in this section before the procurement is continued.'.CommentsClose CommentsPermalink
SEC. 103. APPEALS.
Section 15(a) of the Small Business Act (
SEC. 104. REVIEW.
Section 15(a) of the Small Business Act (
TITLE II--INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND SUBCONTRACTS
SEC. 201. SMALL BUSINESS GOAL.
(a) Government-Wide Goal- Section 15(g)(1) of the Small Business Act (
(b) Goals for Small Disadvantaged Businesses and Women-Owned Businesses- Section 15(g)(1) of such Act is further amended by striking `5 percent' both places it appears and inserting `8 percent'.CommentsClose CommentsPermalink
SEC. 202. INCLUDE OVERSEAS CONTRACTS IN SMALL BUSINESS GOAL.
Section 15(g) of the Small Business Act (
`(3) The procurement goals required by this subsection apply to all procurement contracts, without regard to whether the contract is for work within or outside the United States.'.CommentsClose CommentsPermalink
SEC. 203. ANNUAL GOAL NEGOTIATION.
Section 15(g)(1) of the Small Business Act (
SEC. 204. USAGE OF SMALL COMPANIES IN GOAL ACHIEVEMENT.
Section 15(g) of the Small Business Act (
`(4) For purposes of this subsection and subsection (h), a small business concern shall be counted toward one additional category goal only, even if that small business concern otherwise qualifies under more than one category goal. In this paragraph, the term `category goal' means a goal described in paragraph (2).'.CommentsClose CommentsPermalink
SEC. 205. ANNUAL PLAN FOR EACH AGENCY EXPLAINING HOW AGENCY WILL MEET SMALL BUSINESS GOALS.
Section 15(g) of the Small Business Act (
`(5) Before the beginning of each fiscal year, the head of each Federal agency shall submit to the Administrator of the Small Business Administration and to Congress a detailed plan explaining how the agency intends to meet the small business goals under this subsection that apply to that agency for that fiscal year.'.CommentsClose CommentsPermalink
SEC. 206. MAKING SMALL BUSINESSES THE FIRST CHOICE.
Section 15(j) of the Small Business Act (
(1) in paragraph (1), by striking `$100,000' and inserting `the Simplified Acquisition Threshold'; andCommentsClose CommentsPermalink
(2) in paragraph (3), by striking `subsection (a) of section 8' and inserting `section 8, 31, or 36'.CommentsClose CommentsPermalink
SEC. 207. UNIFORM METRIC FOR SUBCONTRACTING ACHIEVEMENTS.
Section 8(d) of the Small Business Act (
`(12) In carrying out this subsection, the Administrator shall require each prime contractor to report small business subcontract usage at all tiers based on the percentage of the total dollar amount of the contract award.'.CommentsClose CommentsPermalink
SEC. 208. SUBCONTRACTING DATABASE.
Section 8(d) of the Small Business Act (
`(13) In carrying out this subsection, the Administrator shall develop and maintain a password-protected database that will enable the Administration to assist small businesses in marketing to large corporations that have not achieved their small business goals.'.CommentsClose CommentsPermalink
SEC. 209. NATIONAL DATABASE.
The Administrator of the Small Business Administration shall ensure that whenever a small business enters its information in the Central Contractor Registry, or any successor to that registry, the Administrator contacts that business within 30 days regarding the likelihood of Federal contracting opportunities. The Administrator shall ensure that each small business that so registers is, for each industry code entered by that small business, provided with the total dollar value of government contract awards to small businesses for that industry.CommentsClose CommentsPermalink
SEC. 210. REVIEW OF SUBCONTRACTING PLANS.
(a) In General- Not later than 180 days after the date of the enactment of this Act, the General Services Administration shall, after an opportunity for notice and comment, begin to make modifications, if necessary, to the Electronic Subcontracting Reporting System (ESRS) for the purpose of tracking companies' compliance with small business subcontracting plans included in successful contract bids. ESRS shall be further developed, if necessary, in such a way that it allows agencies to track whether or not the prime contractor actually subcontracted work out to the subcontracting firms described in the Small Business Subcontracting Plan. Further, ESRS shall be modified, if necessary, so that it facilitates review of a company's record of compliance with small business subcontracting plans.CommentsClose CommentsPermalink
(b) Periodic Reports- Prime contractors shall be required to submit Small Business Subcontracting Plans to ESRS and submit subsequent periodic reports to ESRS describing the extent to which the prime contractor complied with small business subcontracting plans submitted as part of the company's successful contract proposal. Each such report shall include a specific accounting of compliance with subcontracting goals described in the prime contractor's Small Business Subcontracting Plans related to Small Disadvantaged Businesses Concerns, Women-Owned Small Business Concerns, Historically Black Colleges and Universities and Minority Institutions, Service-Disabled Veteran-Owned Small Business Concerns, and HUBZone Small Business Concerns. Each such accounting of compliance shall also be included in ESRS.CommentsClose CommentsPermalink
(c) Inclusion in ESRS- The `percentage of the total dollar amount of the contract award' that is paid to small business, as referred to in paragraph (12) of section 8(d) of the Small Business Act (as added by section 206 of this Act) shall also be included in ESRS.CommentsClose CommentsPermalink
(d) Availability of ESRS- ESRS and the information therein shall be made available to agency officials and Source Selection Evaluation Boards (as referred to in Federal Acquisition Regulations 3.104-1) that are charged with evaluating contract proposals, and, when evaluating contract proposals, agencies shall take into consideration the compliance with small business subcontracting plans of companies competing for Federal contracts, and within one year after the date of the enactment of this Act such consideration shall be reflected in the Federal Acquisition Regulations.CommentsClose CommentsPermalink
(e) Further Modifications Required- ESRS shall be modified in such a way that it can generate comparable reports on individual companies' compliance records to be used in the contract proposal evaluation processes of agencies.CommentsClose CommentsPermalink
SEC. 211. AGENCY OBLIGATION FOR FULFILLING CONTRACTING GOALS.
Section 15(h) of the Small Business Act (
`(4) At the conclusion of each fiscal year, the head of each Federal agency shall submit to Congress a report specifying the percentage of contracts awarded by that agency for that fiscal year that were awarded to small business concerns. If the percentage is less than 25 percent, the head of the agency shall, in the report, explain why the percentage is less than 25 percent and what will be done to ensure that the percentage for the following fiscal year will not be less than 25 percent.'.CommentsClose CommentsPermalink
SEC. 212. APPROPRIATE LIMITS ON VALUE OF SOLE SOURCE CONTRACTS.
(a) Appropriate Limits- If a law is not enacted by December 31, 2007, revising the limits referred to in this subsection, the Administrator for Federal Procurement Policy, in consultation with the Administrator for Small Business, shall establish appropriate limits on the value of contracts awarded without the use of competitive procedures to participants in the program established by section 8(a) of the Small Business Act (
(b) Consultation- In establishing any limit described in subsection (a). the Administrator for Federal Procurement Policy shall consult with representatives of the affected program participants. The Administrator shall also take into account--CommentsClose CommentsPermalink
(1) any special circumstances and needs of the affected program participants; andCommentsClose CommentsPermalink
(2) the advantages of promoting competition in Federal contracting.CommentsClose CommentsPermalink
SEC. 213. SMALL BUSINESS GOALS FOR GREEN SMALL BUSINESS CONCERNS.
(a) In General- Section 15(g) of the Small Business Act (
(1) in paragraph (1)--CommentsClose CommentsPermalink
(A) by striking `and small business concerns owned and controlled by women' both places such term appears and inserting `small business concerns owned and controlled by women, and green small business concerns'; andCommentsClose CommentsPermalink
(B) by inserting before `Notwithstanding the Government-wide goal' the following: `The Government-wide goal for participation by green small business concerns shall be established at not less than 5 percent of the total value of all prime contract and subcontract awards for each fiscal year.'; andCommentsClose CommentsPermalink
(2) in paragraph (2)--CommentsClose CommentsPermalink
(A) by striking `and by small business concerns owned and controlled by women' both places such term appears and inserting `by small business concerns owned and controlled by women, and by green small business concerns'; andCommentsClose CommentsPermalink
(B) by striking `and small business concerns owned and controlled by women' and inserting `small business concerns owned and controlled by women, and green small business concerns'.CommentsClose CommentsPermalink
(b) Conforming Amendments-CommentsClose CommentsPermalink
(1) DEFINITION- Section 3 of that Act (
`(s) Definitions Relating to Green Small Business Concerns- In this Act, the term `green small business concern' means a small business concern that carries out its activities in an environmentally sound manner. The Administrator shall, in consultation with the Environmental Protection Agency, the General Services Administration, and other appropriate agencies, specify detailed definitions or standards by which a small business concern may be determined to be a green small business concern for the purposes of this Act.'.CommentsClose CommentsPermalink
(2) POLICY- Section 8(d) of that Act (
(A) in paragraph (1) (in both places such term appears), paragraph (3)(A) (in both places such term appears), paragraph (4)(D), paragraph (6)(A), paragraph (6)(C), paragraph (6)(F), and paragraph (10)(B) by striking `and small business concerns owned and controlled by women' and inserting `small business concerns owned and controlled by women, and green small business concerns';CommentsClose CommentsPermalink
(B) in paragraph (3)(F) by striking `or a small business concern owned and controlled by women' and inserting `a small business concern owned and controlled by women, or a green small business concern'; andCommentsClose CommentsPermalink
(C) in paragraph (4)(E) by striking `and for small business concerns owned and controlled by women' and inserting `for small business concerns owned and controlled by women, and for green small business concerns'.CommentsClose CommentsPermalink
(3) REPORTS ON GOALS- Section 15(h) of that Act (
(4) PENALTIES- Section 16 of that Act (
SEC. 214. STUDY ON PROVIDING FINANCIAL INCENTIVES TO CONTRACTORS THAT MEET MINORITY AND DISADVANTAGED BUSINESS ENTERPRISE GOALS.
The Administrator of the Small Business Administration shall carry out a study on the feasibility and desirability of providing financial incentives to contractors operating under contracts from a Federal agency that achieve the percentage goals set forth in said contracts' subcontracting plans for the utilization of small business concerns owned and controlled by socially and economically disadvantaged individuals. The Administrator shall submit to Congress a report on the results of the study, together with any findings, conclusions, and recommendations that the Administrator considers appropriate.CommentsClose CommentsPermalink
TITLE III--PROTECTION OF TAXPAYERS FROM FRAUD
SEC. 301. SMALL BUSINESS SIZE PROTEST NOTIFICATION.
(a) In General- The Administrator of the Small Business Administration shall work with appropriate Federal agencies to ensure that whenever a business concern is awarded a contract on the basis that it qualifies as small and then is determined not to qualify as small, a notification of those facts (that an award was made on such a basis, and that such a determination was made) shall be placed adjacent to that concern's listing in the Central Contractor Registry (or any successor to that registry).CommentsClose CommentsPermalink
(b) Comptroller General Certification- The Administrator shall, in making any report of small business goal accomplishments, qualify the accomplishments as `estimated', until the Administrator obtains from the Comptroller General the Comptroller General's certification that there are no data integrity issues with respect to the national repository of contract award information known as Federal Procurement Data System-Next Generation (FPDS-NG), or any successor to that repository.CommentsClose CommentsPermalink
(c) Awards to Large Businesses- For each Federal agency, the Inspector General of that agency shall, on an annual basis, submit to Congress a report on the number and dollar value of contract awards that were coded as awards to small business concerns but in fact were made to businesses that did not qualify as small business concerns.CommentsClose CommentsPermalink
SEC. 302. REVIEW OF NATIONAL REGISTRY.
The Administrator of the Small Business Administration shall ensure, on a biannual basis, that an independent audit is performed of the Central Contractor Registry, or any successor to that registry, and that the Dynamic Small Business Search portion of the registry, or any successor to that portion of the registry, is purged of any businesses that are not in fact small businesses. If a business that has been so purged attempts, while not in fact a small business, to re-register, that business is subject to debarment as a Federal contractor and is further subject to penalties outlined in section 16 of the Small Business Act (
SEC. 303. RECERTIFICATION OF COMPLIANCE WITH SIZE STANDARDS AND REGISTRATION WITH CENTRAL CONTRACTOR REGISTRY.
Section 3(a) of the Small Business Act (
`(5) Recertification-CommentsClose CommentsPermalink
`(A) IN GENERAL- If a business concern is awarded a contract because of a standard by which it is determined to be a small business concern, and the business concern is close to exceeding that standard at the time the award is made, then the business concern must, annually after the date of the award, recertify to the agency awarding the contract whether it meets that standard.CommentsClose CommentsPermalink
`(B) `CLOSE TO EXCEEDING'- For purposes of subparagraph (A), a business concern is close to exceeding--CommentsClose CommentsPermalink
`(i) a number-of-employees standard if the number of employees of the business concern is 95 percent or more of the maximum number of employees allowed under the standard; andCommentsClose CommentsPermalink
`(ii) a dollar-volume-of-business standard if the dollar volume of business is 80 percent or more of the maximum dollar volume allowed under the standard.CommentsClose CommentsPermalink
`(6) Registry- For a business concern to be awarded a contract because of a standard by which it is determined to be a small business concern, the business concern must, annually after the end of the fiscal year used by the business concern, update its listing in the Central Contractor Registry.'.CommentsClose CommentsPermalink
TITLE IV--AUTHORIZATION OF APPROPRIATIONS
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary to carry out this Act and the amendments made by this Act.CommentsClose CommentsPermalink
Passed the House of Representatives May 10, 2007.CommentsClose CommentsPermalink
Attest:CommentsClose CommentsPermalink
Clerk.
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U.S. Congress - Text of H.R.1873 as Referred in Senate Small Business Fairness in Contracting Act



