S.Amdt. 3061

SA 3061. Mrs. SHAHEEN submitted an amendment intended to be proposed
by her to the bill S. 4638, to authorize appropriations for fiscal year
2025 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle D of title VIII, add the following:

SEC. 865. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

(a) Short Title.--This section may be cited as the ``Small
Business Subcontractor Utilization Act of 2024''.
(b) Requirements To Ensure Subcontractors Are Utilized in
Accordance With the Subcontracting Plan.--
(1) In general.--Section 8(d) of the Small Business Act (15
U.S.C. 637(d)) is amended--
(A) in paragraph (3)--
(i) by redesignating subparagraphs (C) through (H) as
subparagraphs (D) through (I), respectively;
(ii) by inserting after subparagraph (B) the following:
``(C) If a subcontracting plan is required with respect to
this contract under paragraph (4) or (5) of section 8(d) of
the Small Business Act--
``(i) at the same time as the contractor submits the
subcontracting report with respect to this contract, the
contractor shall provide to the contracting officer a
utilization report that identifies, for each covered small
business subcontractor for this contract--
``(I) the service or product that the covered small
business subcontractor is required to provide to the prime
contractor;
``(II) the total contract dollars that are to be paid to
the covered small business subcontractor;
``(III) the total contract dollars that have been paid to
the covered small business subcontractor, to date;
``(IV) the estimated date range for the performance of the
covered small business subcontractor on the contract; and
``(V) any change to the contract, including changes to the
services and products required or total contract dollars,
that impacts the ability of the prime contractor to utilize
the covered small business subcontractor as anticipated
during the bid and proposal process; and
``(ii) not later than 30 days after the deadline to submit
to the contracting officer the subcontracting report with
respect to this contract, the contractor shall provide to
each covered small business subcontractor for this contract a
utilization report that identifies, for that covered small
business subcontractor--
``(I) the service or product that the covered small
business subcontractor is required to provide to the prime
contractor;
``(II) the total contract dollars that are to be paid to
the covered small business subcontractor;
``(III) the total contract dollars that have been paid to
the covered small business subcontractor, to date;
``(IV) the estimated date range for the performance of the
covered small business subcontractor on the contract; and
``(V) any change to the contract, including changes to the
services and products required or total contract dollars,
that impacts the ability of the prime contractor to utilize
the covered small business subcontractor as anticipated
during the bid and proposal process.''; and
(iii) by adding at the end the following:
``(J) In this contract, the term `covered small business
subcontractor' means a first-tier subcontractor that--
``(i) is a small business concern; and
``(ii)(I) was used in preparing the bid or proposal of the
prime contractor; or
``(II) provides goods or services to the prime contractor
in performance of the contract.''; and
(B) by adding at the end the following:
``(18) Noncompliance with subcontracting plan.--
``(A) Definitions.--In this paragraph--
``(i) the term `covered small business subcontractor' means
a first-tier subcontractor that--

``(I) is a small business concern; and
``(II)(aa) was used in preparing the bid or proposal of the
prime contractor; or
``(bb) provides goods or services to the prime contractor
in performance of the contract; and

``(ii) the term `subcontracting plan' means a
subcontracting plan required under paragraph (4) or (5).
``(B) Review.--A covered small business subcontractor is
authorized to confidentially report to the contracting
officer that the covered small business subcontractor is not
being utilized in accordance with the subcontracting plan of
the prime contractor. If reported, the contracting officer
shall, in consultation with the Office of Small and
Disadvantaged Business Utilization or the Office of Small
Business Programs, determine whether the prime contractor
made a good faith effort to utilize the covered small
business subcontractor in accordance with the subcontracting
plan.
``(C) Action.--After the review required under subparagraph
(B), if the contracting officer determines that the prime
contractor failed to make a good faith effort to utilize the
covered small business subcontractor in accordance with the
subcontracting plan, the contracting officer shall assess
liquidated damages in accordance with paragraph (4)(F).''.
(2) Rulemaking.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Small
Business Administration shall promulgate regulations pursuant
to this Act.
(c) Report.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Small
Business Administration, in consultation with relevant
Federal agencies, including the General Services
Administration, shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives a report on
the improvements that can be made to SAM.gov, the Electronic
Subcontracting Reporting System (eSRS), the Federal Subaward
Reporting System (FSRS), and any other successor database
to--
(1) incorporate the reporting requirements under the
amendments made by subsection (b); and
(2) improve the ability of contracting officers to--
(A) evaluate whether prime contractors achieved their
subcontracting goals; and
(B) make evidence-based determinations regarding whether
small subcontractors are being utilized to the extent
outlined in subcontracting plans.
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