S.Amdt. 2443Senate117th Congress (2021-2023)2nd degree
S.Amdt. 2443
Sponsored by
Sen. Benjamin L. Cardin (D-MD)
Submitted August 3, 2021
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Senate amendment submitted
August 3, 2021
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Submitted
SA 2443. Mr. CARDIN (for himself, Ms. Murkowski, Mr. Sullivan, and Ms. Hirono) submitted an amendment intended to be proposed to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the bill H.R. 3684, to authorize funds for Federal-aid highways, highway safety programs, and transit programs, and for other purposes; which was ordered to lie on the table; as follows: At the appropriate place in division I, insert the following: SEC. 90___. SMALL BUSINESS CONTRACTING. (a) Definitions.--In this section-- (1) the terms ``Administration'' and ``Administrator'' mean the Small Business Administration and the Administrator thereof, respectively; (2) the term ``covered procurement'' means a procurement that the Administrator determines-- (A) is in a quantity or of an estimated dollar value which makes the participation of a small business concern as a prime contractor unlikely; (B) in the case of a procurement for construction, seeks to bundle or consolidate discrete construction projects; or (C) is a solicitation that consolidates procurement requirements for goods or services, 1 or more of which were previously provided or performed by a small business concern for any Federal agency, into a solicitation of offers for a single contract, agreement, or order that is likely to be unsuitable for award to a small business concern; and (3) the terms ``Federal agency'' and ``small business concern'' have the meanings given [[Page S5779]] those terms in section 3 of the Small Business Act (15 U.S.C. 632); and (4) the term ``procurement center representative'' means-- (A) a procurement center representative as described in section 15(l) of the Small Business Act (15 U.S.C. 644(l)); or (B) if a procurement center representative described in subparagraph (A) is not assigned to the procuring activity, the Office of Government Contracting of the Administration serving the area of the procuring activity. (b) Expanding Surety Bond Program.--Section 411(a)(1) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended-- (1) in subparagraph (A), by striking ``$6,500,000'' and inserting ``$10,000,000''; and (2) by amending subparagraph (B) to read as follows: ``(B) The Administrator may guarantee a surety under subparagraph (A) for a total work order or contract entered into by a Federal agency in an amount that does not exceed $20,000,000.''. (c) Large and Small Prime Contract Opportunities.-- (1) Notice to procurement center representatives.--Not later than 30 days before issuing a solicitation for a proposed covered procurement, and concurrent with other processing steps required before issuing the solicitation, a Federal agency shall provide to the procurement center representative of the Federal agency the following: (A) A copy of the proposed covered procurement. (B) A statement explaining, as applicable to the proposed covered procurement: (i) Why the proposed covered procurement cannot be divided into smaller quantities, lots, or tasks to permit offers on less than the total requirement. (ii) Why delivery schedules cannot be established on a realistic basis that will encourage the participation of small business concerns in a manner consistent with the actual requirements of the Federal agency. (iii) Why the proposed covered procurement cannot be offered to increase the likelihood of the participation of small business concerns. (iv) In the case of a proposed covered procurement for construction, why the proposed covered procurement cannot be offered as separate, discrete projects. (v) Why the Federal agency has determined that consolidating contract requirements is necessary and justified. (2) Alternatives to increase prime contracting opportunities for small business concerns.--Not later than 15 days after the date on which a procurement center representative receives a statement described in paragraph (1)(B) with respect to a proposed covered procurement, and if the procurement center representative determines that the proposed covered procurement will make the participation of small business concerns as prime contractors unlikely, the procurement center representative shall recommend to the Federal agency 1 or more alternative procurement methods for increasing prime contracting opportunities for small business concerns. (3) Failure to agree on an alternative procurement method.-- (A) In general.--If a procurement center representative proposes 1 or more alternative procurement methods to a Federal agency under paragraph (2) and the procurement center representative and the Federal agency are unable to agree on an alternative procurement method, the Administrator shall submit the matter to the head of the appropriate Federal agency, who shall adopt the recommended alternative procurement method proposed by the Administrator unless such head issues a determination that the benefit of the proposed covered procurement as compared to the alternative procurement method exceeds the harm to small business concerns. (B) Nondelegable.--The duties and authorities of the head of a Federal agency under subparagraph (A) may not be delegated. (d) Contract Cap Amounts and Sole Source Award Authority.-- (1) Qualified hubzone small business concerns.--Section 31(c)(2)(A) of the Small Business Act (15 U.S.C. 657a(c)(2)(A)) is amended to read as follows: ``(A) Sole source contracts.--A contracting officer may award a sole source contract under this section to any qualified HUBZone small business concern if-- ``(i) the qualified HUBZone small business concern is determined to be a responsible contractor with respect to performance of the contract opportunity; ``(ii) the contracting officer does not have a reasonable expectation that 2 or more qualified HUBZone small business concerns will submit offers for the contracting opportunity; ``(iii) the anticipated award price of the contract (including options and options periods) will not exceed-- ``(I) $10,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or ``(II) $8,000,000 in the case of any other contract opportunity; and ``(iv) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.''. (2) Small business concern owned and controlled by service- disabled veterans.--Section 36(c) of the Small Business Act (15 U.S.C. 657f(c)) is amended to read as follows: ``(c) Sole Source Contracts.--A contracting officer may award a sole source contract under this section to any small business concern owned and controlled by service-disabled veterans if-- ``(1) the concern is determined to be a responsible contractor with respect to performance of the contract opportunity; ``(2) the contracting officer does not have a reasonable expectation that 2 or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity; ``(3) the anticipated award price of the contract (including options and options periods) will not exceed-- ``(A) $10,000,000, in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or ``(B) $8,000,000, in the case of any other contract opportunity; and ``(4) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.''. (3) Certain small business concerns owned and controlled by women.--Section 8(m) of the Small Business Act (15 U.S.C. 637(m)) is amended-- (A) by amending paragraph (7) to read as follows: ``(7) Authority for sole source contracts for economically disadvantaged small business concerns owned and controlled by women.--A contracting officer may award a sole source contract under this subsection to any small business concern owned and controlled by women described in paragraph (2)(A) and certified under paragraph (2)(E) if-- ``(A) the concern is determined to be a responsible contractor with respect to performance of the contract opportunity; ``(B) the contracting officer does not have a reasonable expectation that 2 or more small business concerns owned and controlled by women described in paragraph (2)(A) will submit offers for the contracting opportunity; ``(C) the anticipated award price of the contract (including options and options periods) will not exceed-- ``(i) $10,000,000, in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or ``(ii) $8,000,000, in the case of all other contract opportunities; and ``(D) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.''; and (B) by amending paragraph (8) to read as follows: ``(8) Authority for sole source contracts for small business concerns owned and controlled by women in substantially underrepresented industries.--A contracting officer may award a sole source contract under this subsection to any small business concern owned and controlled by women certified under paragraph (2)(E) that is in an industry in which small business concerns owned and controlled by women are substantially underrepresented (as determined by the Administrator under paragraph (3)) if-- ``(A) the concern is determined to be a responsible contractor with respect to performance of the contract opportunity; ``(B) the contracting officer does not have a reasonable expectation that 2 or more small business concerns owned and controlled by women that are certified under paragraph (2)(E) and are in an industry that has received a waiver under paragraph (3) will submit offers for the contract opportunity; ``(C) the anticipated award price of the contract (including options and options periods) will not exceed-- ``(i) $10,000,000, in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or ``(ii) $8,000,000, in the case of any other contract opportunity; and ``(D) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.''. (4) 8(a) contracts.--Section 8(a)(1)(D)(i) of the Small Business Act (15 U.S.C. 637(a)(1)(D)(i)) is amended by striking subclause (II) and inserting the following: ``(II) the anticipated award price of the contract (including options and options periods) will exceed-- ``(aa) $10,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or ``(bb) $8,000,000 in the case of any other contract opportunity.''. (e) Governmentwide Contracting Goals.--Section 15(g)(1)(A) of the Small Business Act (15 U.S.C. 644(g)(1)(A)) is amended-- (1) in clause (i), by striking ``23 percent'' and inserting ``25 percent''; (2) in clause (ii), by striking ``3 percent'' and inserting ``5 percent''; (3) in clause (iii), by striking ``3 percent'' and inserting ``4 percent''; (4) in clause (iv), by striking ``at not less than'' and all that follows and inserting the following: ``at not less than-- ``(I) 11 percent of the total value of all prime contract and subcontract awards for fiscal year 2022; ``(II) 12 percent of the total value of all prime contract and subcontract awards for fiscal year 2023; [[Page S5780]] ``(III) 13 percent of the total value of all prime contract and subcontract awards for fiscal year 2024; ``(IV) 15 percent of the total value of all prime contract and subcontract awards for fiscal year 2025 and each fiscal year thereafter.''; and (5) in clause (v), by striking ``at not less than'' and all that follows and inserting the following: ``at not less than-- ``(I) 6 percent of the total value of all prime contract and subcontract awards for each of fiscal years 2022 and 2023; and ``(II) 7 percent of the total value of all prime contract and subcontract awards for fiscal year 2024 and each fiscal year thereafter.''. (f) Repeal of Bona Fide Office Rule.-- (1) In general.--Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is amended by striking paragraph (11). (2) Conforming amendments.--The Small Business Act (15 U.S.C. 631 et seq.) is amended-- (A) in section 8(a) (15 U.S.C. 637(a))-- (i) in paragraph (9)(B)(iv), by striking ``paragraph (21)(B)'' and inserting ``paragraph (20)(B)''; and (ii) by redesignating paragraphs (12) through (21) as paragraphs (11) through (20), respectively; (B) in section 15(h)(2)(E)(v) (15 U.S.C. 644(h)(2)(E)(v)), in the matter preceding subclause (I), by striking ``section 8(a)(13)'' and inserting ``section 8(a)(12)''; and (C) in section 31(b)(2)(D)(i) (15 U.S.C. 657a(b)(2)(D)(i)), by striking ``section 8(a)(15)'' and inserting ``section 8(a)(14)''. (g) 8(a) Waivers.--Section 8(a)(20) of the Small Business Act (15 U.S.C. 637(a)(20)), as redesignated subsection (f)(2) of this section, is amended-- (1) in subparagraph (A), in the first sentence, by striking ``subparagraph (B)'' and inserting ``subparagraphs (B) and (F)''; (2) in subparagraph (B)-- (A) by striking clause (iii); and (B) by redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively; (3) by striking subparagraph (C) and inserting the following: ``(C) The Administrator may waive the requirements of subparagraph (A) if, in the case of clauses (i), (ii), and (iii) of subparagraph (B), the Administrator is requested to do so prior to the actual relinquishment of ownership or control.''; and (4) by adding at the end the following: ``(F) If a contract or ownership and control of the concern that initially received a contract awarded pursuant to this subsection passes to another small business concern that is an eligible Program Participant, the requirements of subparagraph (A), including the termination described in the second sentence of that subparagraph, shall not apply.''. (h) Interim Rules.--Not later than 90 days after the date of enactment of this Act, the Administrator may issue rules, including interim final rules, as necessary to carry out this section and the amendments made by this section. ______