[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 633 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 633
To modify the contract consolidation requirements in the Small Business
Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 17, 2003
Mr. Kerry (for himself, Ms. Landrieu, Ms. Stabenow, Ms. Cantwell, and
Mr. Pryor) introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To modify the contract consolidation requirements in the Small Business
Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Federal Contractor
Safeguard Act''.
SEC. 2. CONTRACT CONSOLIDATION.
(a) Definitions.--Section 3(o) of the Small Business Act (15 U.S.C.
632(o)) is amended to read as follows:
``(o) Definitions.--In this Act the following definitions shall
apply:
``(1) Consolidated contract; consolidation.--The term
`consolidated contract' or `consolidation' means a multiple
award contract or a contract for goods or services with a
Federal agency that--
``(A) combines discrete procurement requirements
from not less than 2 existing contracts;
``(B) adds new, discrete procurement requirements
to an existing contract; or
``(C) includes 2 or more discrete procurement
requirements.
``(2) Multiple award contract.--The term `multiple award
contract' means--
``(A) a contract that is entered into by the
Administrator of General Services under the multiple
award schedule program referred to in section
2302(2)(C) of title 10, United States Code;
``(B) a multiple award task order contract or
delivery order contract that is entered into under the
authority of sections 2304a through 2304d of title 10,
United States Code, or sections 303H through 303K of
the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 253h through 253k); and
``(C) any other indefinite delivery or indefinite
quantity contract that is entered into by the head of a
Federal agency with 2 or more sources pursuant to the
same solicitation.''.
(b) Procurement Strategies.--Section 15(e) of the Small Business
Act (15 U.S.C. 644(e)) is amended to read as follows:
``(e) Procurement Strategies; Contract Consolidation.--
``(1) In general.--To the maximum extent practicable,
procurement strategies used by the various agencies having
contracting authority shall facilitate the maximum
participation of small business concerns as--
``(A) prime contractors;
``(B) subcontractors; and
``(C) suppliers.
``(2) Procurement strategy requirements when the value of a
consolidated contract is greater than $2,000,000.--
``(A) In general.--An agency official may not
execute a procurement strategy that includes a
consolidated contract valued at more than $2,000,000
unless the proposed procurement strategy--
``(i) specifically identifies the benefits
anticipated from consolidation;
``(ii) identifies any alternative
contracting approaches that would involve a
lesser degree of contract consolidation; and
``(iii) includes a specific determination
that the proposed consolidation is necessary
and the anticipated benefits of such
consolidation justify its use.
``(B) Necessary and justified.--The head of an
agency may determine that a procurement strategy under
subparagraph (A)(iii) is necessary and justified if the
monetary benefits of the procurement strategy,
including administrative and personnel costs,
substantially exceed the monetary benefits of each of
the possible alternative contracting approaches
identified under subparagraph (A)(ii).
``(C) Additional requirements when the value of a
consolidated contract is greater than $5,000,000.--In
addition to meeting the requirements under paragraph
(A), a procurement strategy that includes a
consolidated contract valued at more than $5,000,000--
``(i) shall be supported by current market
research that demonstrates that the
consolidated contract will result in--
``(I) cost savings;
``(II) quality improvements;
``(III) reduction in acquisition
cycle times; or
``(IV) better terms and conditions;
``(ii) shall include an assessment of the
specific impediments to participation by small
business concerns as prime contractors that
result from contract consolidation;
``(iii) shall specify actions designed to
maximize small business participation as
subcontractors, including suppliers, at various
tiers under the consolidated contract; and
``(iv) shall not be justified under
paragraph (A)(iii) by savings in administrative
or personnel costs, unless the total amount of
the cost savings is expected to be substantial
in relation to the total cost of the
procurement.
``(3) Contract teaming.--
``(A) In general.--If the head of an agency
solicits offers for a consolidated contract, a small
business concern may submit an offer that provides for
the use of a particular team of subcontractors for the
performance of the contract (referred to in this
paragraph as `teaming').
``(B) Evaluation of offer.--The head of the agency
shall evaluate an offer submitted by a small business
concern under subparagraph (A) in the same manner as
other offers, with due consideration to the
capabilities of all of the proposed subcontractors.
``(C) No effect on status as a small business
concern.--If a small business concern engages in
teaming under subparagraph (A), its status as a small
business concern shall not be affected for any other
purpose.''.
(c) Conforming Amendments.--The Small Business Act (15 U.S.C. 631
et seq.) is amended--
(1) in section 2(j)--
(A) by striking the subsection heading and
inserting the following:
``(j) Contract Consolidation.--''; and
(B) in paragraph (3), by striking ``bundling of
contract requirements'' and inserting ``contract
consolidation'';
(2) in section 8(d)(4)(G), by striking ``a bundled
contract'' and inserting ``a consolidated contract'';
(3) in section 15(a)--
(A) by striking ``bundling of contract
requirements'' and inserting ``contract
consolidation''; and
(B) by striking ``the bundled contract'' and
inserting ``the consolidated contract''; and
(4) in section 15(k)(5)--
(A) by striking ``significant bundling of contract
requirements'' and inserting ``consolidated contracts
valued at more than $2,000,000''; and
(B) by striking ``bundled contract'' and inserting
``consolidated contract''.
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