II
Calendar No. 635
111th CONGRESS
2d Session
S. 2989
[Report No. 111–343]
IN THE SENATE OF THE UNITED STATES
February 4, 2010
Ms. Landrieu (for herself, Ms. Snowe, Mrs. Shaheen, Mr. Feingold, Ms. Klobuchar, Mr. Merkley, Mr. Specter, Mr. Burris, Ms. Stabenow, Ms. Cantwell, and Mr. Cardin) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
September 29, 2010
Reported by Ms. Landrieu, with an amendment
Strike out all after the enacting clause and insert the part printed in italic
A BILL
To improve the Small Business Act, and for other purposes.
Short title
This Act may be cited as the
Small Business Contracting
Revitalization Act of 2010
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I—Contract bundling
Sec. 101. Leadership and oversight.
Sec. 102. Consolidation of contract requirements.
Sec. 103. Small business teams pilot program.
TITLE II—Subcontracting integrity
Sec. 201. GAO recommendations on subcontracting misrepresentations.
Sec. 202. Small business subcontracting improvements.
TITLE III—Acquisition process
Sec. 301. Reservation of prime contract awards for small businesses.
Sec. 302. Micro-purchase guidelines.
Sec. 303. Agency accountability.
Sec. 304. Payment of subcontractors.
Sec. 305. Repeal of Small Business Competitiveness Demonstration Program.
TITLE IV—Small business size and status integrity
Sec. 401. Policy and presumptions.
Sec. 402. Annual certification.
Sec. 403. Training for contracting and enforcement personnel.
Sec. 404. Updated size standards.
Sec. 405. Study and report on the mentor-protege program.
Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and
the term small business concern has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632).
Contract bundling
Leadership and oversight
In general
Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following:
Bundling Accountability Measures
Teaming requirements
Each Federal agency shall include in each solicitation for any contract award above the substantial bundling threshold of the Federal agency a provision soliciting bids by teams and joint ventures of small business concerns.
Agency Policies on Reduction of Contract Bundling
The head of each Federal agency shall—
not later than 180 days after the date of enactment of this subsection, publish on the website of the Federal agency the policy of the Federal agency regarding contracting bundling and consolidation, including regarding the solicitation of teaming and joint ventures under paragraph (1); and
not later than 30 days after the date on which the head of the Federal agency submits data certifications to the Administrator for Federal Procurement Policy, publish on the website of the Federal agency a list and rationale for any bundled contract for which the Federal agency solicited bids or that was awarded by the Federal agency.
Reporting
Not later than 90 days after the date of enactment of this subsection, and every 3 years thereafter, the Director of Small and Disadvantaged Business Utilization for each Federal agency 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 regarding procurement center representatives and commercial market representatives, which shall—
identify each area for which the Federal agency has assigned a procurement center representative or a commercial market representative;
explain why the Federal agency selected the areas identified under subparagraph (A); and
describe the activities performed by procurement center representatives and commercial market representatives.
.
Technical correction
Section 15(g) of the Small Business Act (15
U.S.C. 644(g)) is amended by striking Administrator of the Office of
Federal Procurement Policy
each place it appears and inserting
Administrator for Federal Procurement Policy
.
Report
In general
Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding the procurement center representative program of the Administration.
Contents
The report submitted under paragraph (1) shall—
address ways to improve the effectiveness of the procurement center representative program in helping small business concerns obtain Federal contracts;
evaluate the effectiveness of procurement center representatives and commercial marketing representatives; and
include recommendations, if any, on how to improve the procurement center representative program.
Electronic procurement center representative
Not later than 180 days after the date of enactment of this Act, the Administrator shall implement an electronic procurement center representative program.
Consolidation of contract requirements
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating section 44 as section 45; and
by inserting after section 43 the following:
Consolidation of contract requirements
Definitions
In this section—
the term Chief Acquisition Officer means the employee of a Federal agency designated as the Chief Acquisition Officer for the Federal agency under section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(a));
the term consolidation of contract requirements, with respect to contract requirements of a Federal agency, means a use of a solicitation to obtain offers for a single contract or a multiple award contract to satisfy 2 or more requirements of the Federal agency for goods or services that have been, are being, or will be provided to, or will be performed for or would typically be performed for, the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited;
the term Federal agency does not include the Department of Defense or any agency of the Department of Defense;
the term multiple award contract means—
a multiple award task order contract or delivery order contract that is entered into under the authority of sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k); and
any other indefinite delivery, indefinite quantity contract that is entered into by the head of a Federal agency with 2 or more sources pursuant to the same solicitation; and
the term senior procurement executive means an official designated under section 16(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(c)) as the senior procurement executive for a Federal agency.
Policy
The head of each Federal agency shall ensure that the decisions made by the Federal agency regarding consolidation of contract requirements of the Federal agency are made with a view to providing small business concerns with appropriate opportunities to participate as prime contractors and subcontractors in the procurements of the Federal agency.
Limitation on use of acquisition strategies involving consolidation
In general
The head of a Federal agency may not carry out an acquisition strategy that includes a consolidation of contract requirements of the Federal agency with a total value of more than $2,000,000, unless the senior procurement executive or Chief Acquisition Officer for the Federal agency, before carrying out the acquisition strategy—
conducts market research;
identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements; and
determines that the consolidation of contract requirements is necessary and justified.
Determination that consolidation is necessary and justified
In general
A senior procurement executive or Chief Acquisition Officer may determine that an acquisition strategy involving a consolidation of contract requirements is necessary and justified for the purposes of paragraph (1)(C) if the benefits of the acquisition strategy substantially exceed the benefits of each of the possible alternative contracting approaches identified under paragraph (1)(B).
Savings in administrative or personnel costs
For purposes of subparagraph (A), savings in administrative or personnel costs alone do not constitute a sufficient justification for a consolidation of contract requirements in a procurement unless the expected total amount of the cost savings, as determined by the senior procurement executive or Chief Acquisition Officer, is substantial in relation to the total cost of the procurement.
Benefits to be considered
The benefits considered for the purposes of paragraphs (1) and (2) may include cost and, regardless of whether quantifiable in dollar amounts—
quality;
acquisition cycle;
terms and conditions; and
any other benefit.
.
Small business teams pilot program
Definitions
In this section—
the term Center means the Center for Small Business Teaming established under subsection (b); and
the term eligible organization means a well-established national organization for small business concerns with the capacity to provide assistance to small business concerns (which may be provided with the assistance of the Center) relating to—
customer relations and outreach;
submitting bids and proposals;
team relations and outreach; and
performance measurement and quality assurance.
Establishment
The Administrator shall establish a Center for Small Business Teaming within the Administration to carry out a pilot program for teaming and joint ventures involving small business concerns.
Grants
The Center may make grants to eligible organizations to assemble teams of small business concerns to compete for larger procurement contracts.
Contracting opportunities
In general
The Center shall work with eligible organizations receiving a grant under this section to identify appropriate contracting opportunities for teams or joint ventures of small business concerns.
Restricted competition
A contracting officer of a Federal agency may restrict competition for any contract for the procurement of goods or services by the Federal agency to teams or joint ventures of small business concerns if determined appropriate by the contracting officer.
Termination
The authorities under this section shall terminate 5 years after the date of enactment of this Act.
Authorization of appropriations
There are authorized to be appropriated for grants by the Center under subsection (c) $5,000,000 for each of fiscal years 2010 through 2015.
Subcontracting integrity
GAO recommendations on subcontracting misrepresentations
Section 8 of the Small Business Act (15 U.S.C. 637) is amended by adding at the end the following:
Prevention of misrepresentations in subcontracting; implementation of recommendations of Comptroller General
Statement of policy
It is the policy of Congress that the recommendations of the Comptroller General of the United States in Report No. 05–459, concerning oversight improvements necessary to ensure maximum practicable participation by small business concerns in subcontracting, shall be implemented Government-wide, to the maximum extent possible.
Contractor compliance
Compliance of Federal prime contractors with subcontracting plans relating to small business concerns shall be evaluated as a percentage of obligated prime contract dollars and as a percentage of subcontracts awarded.
Issuance of agency policies
Not later than 180 days after the date of enactment of this subsection, the head of each Federal agency shall issue a policy on subcontracting compliance relating to small business concerns, including assignment of compliance responsibilities between contracting offices, small business offices, and program offices and periodic oversight and review activities.
.
Small business subcontracting improvements
Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is amended—
in subparagraph (E), by striking
and
at the end;
in subparagraph (F), by striking the period
at the end and inserting ; and
; and
by adding at the end, the following:
a certification that the offeror or bidder will acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns used in preparing and submitting to the contracting agency the bid or proposal, in the same amount and quality used in preparing and submitting the bid or proposal, unless the small business concerns are no longer in business or can no longer meet the quality, quantity, or delivery date.
.
Acquisition process
Reservation of prime contract awards for small businesses
Section 15 of the Small Business Act (15 U.S.C. 644), as amended by this Act, is amended by adding at the end the following:
Government-Wide acquisition contracts
Not later than 180 days after the date of enactment of this subsection, the Administrator for Federal Procurement Policy and the Administrator shall jointly, by regulation, establish criteria for Federal agencies for—
setting aside part or parts of a multiple award contract (as defined in section 44), Federal supply schedule contracts, and other Government-wide acquisition contracts for small business concerns, including the subcategories of small business concerns identified in subsection (g)(2);
setting aside orders placed against multiple award contracts, Federal supply schedule contracts, and other Government-wide acquisition contracts for small business concerns, including the subcategories of small business concerns identified in subsection (g)(2); and
reserving 1 or more contract awards for small business concerns under full and open multiple award procurements, including the subcategories of small business concerns identified in subsection (g)(2).
.
Micro-purchase guidelines
Not later than 1 year after the date of
enactment of this Act, the Controller of the Office of Federal Financial
Management shall issue guidelines regarding the analysis of purchase card
expenditures to identify opportunities for achieving and accurately measuring
fair participation of small business concerns in purchases in an amount not in
excess of the micro-purchase threshold, as defined in section 32 of the Office
of Federal Procurement Policy Act (41 U.S.C. 428) (in this section referred to
as micro-purchases
), consistent with the national policy on
small business participation in Federal procurements set forth in sections 2(a)
and 15(g) of the Small Business Act (15 U.S.C. 631(a) and 644(g)), and
dissemination of best practices for participation of small business concerns in
micro-purchases.
Agency accountability
Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is amended—
by inserting (A)
after
(2)
;
by striking “Goals established” and inserting the following:
Goals established
;
by striking Whenever
and
inserting the following:
Whenever
;
by striking For the purpose
of
and inserting the following:
For the purpose of
;
by striking The head of each Federal
agency, in attempting to attain such participation
and inserting the
following:
The head of each Federal agency, in attempting to attain the participation described in subparagraph (D)
.
in subparagraph (E), as so designated—
by striking (A) contracts
and inserting (i) contracts
; and
by striking (B) contracts
and inserting (ii) contracts
; and
by adding at the end the following:
Each procurement employee or program manager described in clause (ii)—
shall communicate to the subordinates of the procurement employee or program manager the importance of achieving small business goals; and
shall have as a significant factor in the annual performance evaluation of the procurement employee or program manager, where appropriate, the success of that procurement employee or program manager in small business utilization, in accordance with the goals established under this subsection.
A procurement employee or program manager described in this clause is a senior procurement executive, senior program manager, or Director of Small and Disadvantaged Business Utilization of a Federal agency having contracting authority.
.
Payment of subcontractors
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the end the following:
Payment of subcontractors
Definition
In this paragraph, the term covered contract means a contract relating to which a prime contractor is required to develop a subcontracting plan under paragraph (4) or (5).
Notice
In general
A prime contractor for a covered contract shall notify in writing the contracting officer for the covered contract if the prime contractor pays a reduced price to a subcontractor for goods and services upon completion of the responsibilities of the subcontractor or the payment to a subcontractor is more than 90 days past due for goods or services provided for the covered contract for which—
the Federal agency has paid the prime contractor; or
the prime contractor has submitted a request for payment to the Federal agency.
Contents
A prime contractor shall include the reason for the reduction in a payment to or failure to pay a subcontractor in any notice made under clause (i).
Public availability
The head of each Federal agency shall, after redacting information identifying any subcontractor, make publicly available any notice made under clause (i).
Performance
A contracting officer for a covered contract shall consider the failure by a prime contractor to make a full or timely payment to a subcontractor in evaluating the performance of the prime contractor.
Control of funds
A contracting officer for a covered contract may restrict the authority of a prime contractor that has a history of untimely payment of subcontractors (as determined by the contracting officer) to make expenditures under or control payment of subcontractors for a covered contract.
.
Repeal of Small Business Competitiveness Demonstration Program
In general
The Business Opportunity Development Reform Act of 1988 (Public Law 100–656) is amended by striking title VII (15 U.S.C. 644 note).
Effective date and applicability
The amendment made by this section—
shall take effect on the date of enactment of this Act; and
apply to the first full fiscal year after the date of enactment of this Act.
Small business size and status integrity
Policy and presumptions
Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:
Presumption
In general
In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.
Deemed certifications
The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:
Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.
Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement which in any way encourages a Federal agency to classify the bid or proposal, if awarded, as an award to a small business concern.
Registration on any Federal electronic database for the purpose of being considered for award of a Federal grant, contract, subcontract, cooperative agreement, or cooperative research agreement, as a small business concern.
Certification by signature of responsible official
In general
Each solicitation, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract, or grant.
Content of certifications
A certification that a business concern qualifies as a small business concern of the exact size and status claimed by the business concern for purposes of bidding on a Federal contract or subcontract, or applying for a Federal grant, shall contain the signature of a director, officer, or counsel on the same page on which the certification is contained.
Regulations
The Administrator shall promulgate regulations to provide adequate protections to individuals and business concerns from liability under this subsection in cases of unintentional errors, technical malfunctions, and other similar situations.
.
Annual certification
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by this Act, is amended by adding at the end the following:
Annual certification
In general
Each business certified as a small business concern under this Act shall annually certify its small business size and, if appropriate, its small business status, by means of a confirming entry on the ORCA database of the Administration, or any successor thereto.
Regulations
Not later than 1 year after the date of enactment of this subsection, the Administrator, in consultation with the Inspector General and the Chief Counsel for Advocacy of the Administration, shall promulgate regulations to ensure that—
no business concern continues to be certified as a small business concern on the ORCA database of the Administration, or any successor thereto, without fulfilling the requirements for annual certification under this subsection; and
the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.
Determination of size status
The small business size or status of a business concern shall be determined at the time of the award of a Federal—
contract, except that, in the case of interagency multiple award contracts (as defined in section 44), small business size or status shall be determined annually, except for purposes of the award of each task or delivery order set aside or reserved for small business concerns;
subcontract;
grant;
cooperative agreement; or
cooperative research and development agreement.
.
Training for contracting and enforcement personnel
In general
Not later than 1 year after the date of enactment of this Act, the Federal Acquisition Institute, in consultation with the Administrator for Federal Procurement Policy, shall develop courses concerning proper classification of business concerns and small business size and status for purposes of Federal contracts, subcontracts, grants, cooperative agreements, and cooperative research and development agreements.
Policy on prosecutions of small business size and status fraud
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by this Act, is amended by adding at the end the following:
Policy on prosecutions of small business size and status fraud
Not later than 1 year after the date of enactment of this subsection, the head of each relevant Federal agency and the Inspector General of the Administration shall issue a Government-wide policy on prosecution of small business size and status fraud.
.
Updated size standards
Not later than 1 year after the date of enactment of this Act, and every 5 years thereafter, the Administrator shall—
conduct a detailed review of the size standards for small business concerns established under section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2));
make appropriate adjustments to size standards under that section to reflect market conditions; and
make publically available information regarding—
the factors evaluated as part of the review conducted under paragraph (1); and
the criteria used for any revised size standards promulgated under paragraph (2).
Study and report on the mentor-protege program
In general
The Comptroller General of the United States shall conduct a study of the mentor-protege program of the Administration for small business concerns participating in programs under section 8(a) of the Small Business Act (15 U.S.C. 637(a)), and other relationships and strategic alliances pairing a larger business and a small business concern partner to gain access to Federal Government contracts, to determine whether the programs and relationships are effectively supporting the goal of increasing the participation of small business concerns in Government contracting.
Matters To Be studied
The study conducted under this section shall include—
a review of a broad cross-section of industries; and
an evaluation of—
how each Federal agency carrying out a program described in subsection (a) administers and monitors the program;
whether there are systems in place to ensure that the mentor-protege relationship, or similar affiliation, promotes real gain to the protege, and is not just a mechanism to enable participants that would not otherwise qualify under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to receive contracts under that section; and
the degree to which protege businesses become able to compete for Federal contracts without the assistance of a mentor.
Report to Congress
Not later than 180 days after the date of enactment of this Act, the Comptroller General 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 results of the study conducted under this section.
Short title
This Act may be cited as the
Small Business Contracting
Revitalization Act of 2010
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I—Contract bundling
Sec. 101. Leadership and oversight.
Sec. 102. Consolidation of contract requirements.
Sec. 103. Small business teams pilot program.
TITLE II—Subcontracting integrity
Sec. 201. GAO recommendations on subcontracting misrepresentations.
Sec. 202. Small business subcontracting improvements.
TITLE III—Acquisition process
Sec. 301. Reservation of prime contract awards for small businesses.
Sec. 302. Micro-purchase guidelines.
Sec. 303. Agency accountability.
Sec. 304. Payment of subcontractors.
Sec. 305. Repeal of Small Business Competitiveness Demonstration Program.
TITLE IV—Small business size and status integrity
Sec. 401. Policy and presumptions.
Sec. 402. Annual certification.
Sec. 403. Training for contracting and enforcement personnel.
Sec. 404. Updated size standards.
Sec. 405. Study and report on the mentor-protege program.
Sec. 406. Policy on support of competitive enterprise system.
Sec. 407. Contracting goals reports.
Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and
the term small business concern has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632).
Contract bundling
Leadership and oversight
In general
Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following:
Bundling Accountability Measures
Teaming requirements
Each Federal agency shall include in each solicitation for any contract award above the substantial bundling threshold of the Federal agency a provision soliciting bids by teams and joint ventures of small business concerns.
Agency Policies on Reduction of Contract Bundling
The head of each Federal agency shall—
not later than 180 days after the date of enactment of this subsection, publish on the website of the Federal agency the policy of the Federal agency regarding contracting bundling and consolidation, including regarding the solicitation of teaming and joint ventures under paragraph (1); and
not later than 30 days after the date on which the head of the Federal agency submits data certifications to the Administrator for Federal Procurement Policy, publish on the website of the Federal agency a list and rationale for any bundled contract for which the Federal agency solicited bids or that was awarded by the Federal agency.
Reporting
Not later than 90 days after the date of enactment of this subsection, and every 3 years thereafter, the Area Directors for Government Contracting of the 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 regarding procurement center representatives and commercial market representatives, which shall—
identify each area for which the Administration has assigned a procurement center representative or a commercial market representative;
explain why the Administration selected the areas identified under subparagraph (A); and
describe the activities performed by procurement center representatives and commercial market representatives.
.
Technical correction
Section 15(g) of the Small Business Act (15 U.S.C.
644(g)) is amended by striking Administrator of the Office of Federal
Procurement Policy
each place it appears and inserting
Administrator for Federal Procurement Policy
.
Report
In general
Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report regarding the procurement center representative program of the Administration.
Contents
The report submitted under paragraph (1) shall—
address ways to improve the effectiveness of the procurement center representative program in helping small business concerns obtain Federal contracts;
evaluate the effectiveness of procurement center representatives and commercial marketing representatives; and
include recommendations, if any, on how to improve the procurement center representative program.
Electronic procurement center representative
Not later than 180 days after the date of enactment of this Act, the Administrator shall implement an electronic procurement center representative program.
Consolidation of contract requirements
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating section 44 as section 45; and
by inserting after section 43 the following:
Consolidation of contract requirements
Definitions
In this section—
the term Chief Acquisition Officer means the employee of a Federal agency designated as the Chief Acquisition Officer for the Federal agency under section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(a));
the term consolidation of contract requirements, with respect to contract requirements of a Federal agency, means a use of a solicitation to obtain offers for a single contract or a multiple award contract to satisfy 2 or more requirements of the Federal agency for goods or services that have been, are being, or will be provided to, or will be performed for or would typically be performed for, the Federal agency under 2 or more separate contracts lower in cost than the total cost of the contract for which the offers are solicited;
the term multiple award contract means—
a multiple award task order contract or delivery order contract that is entered into under the authority of sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k); and
any other indefinite delivery, indefinite quantity contract that is entered into by the head of a Federal agency with 2 or more sources pursuant to the same solicitation; and
the term senior procurement executive means an official designated under section 16(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(c)) as the senior procurement executive for a Federal agency.
Policy
The head of each Federal agency shall ensure that the decisions made by the Federal agency regarding consolidation of contract requirements of the Federal agency are made with a view to providing small business concerns with appropriate opportunities to participate as prime contractors and subcontractors in the procurements of the Federal agency.
Limitation on use of acquisition strategies involving consolidation
In general
The head of a Federal agency may not carry out an acquisition strategy that includes a consolidation of contract requirements of the Federal agency with a total value of more than $2,000,000, unless the senior procurement executive or Chief Acquisition Officer for the Federal agency, before carrying out the acquisition strategy—
conducts market research;
identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements;
makes a written determination that the consolidation of contract requirements is necessary and justified;
identifies any negative impact by the acquisition strategy on contracting with small business concerns; and
certifies that the acquisition strategy fulfills the small business contracting goals of the Federal agency.
Determination that consolidation is necessary and justified
In general
A senior procurement executive or Chief Acquisition Officer may determine that an acquisition strategy involving a consolidation of contract requirements is necessary and justified for the purposes of paragraph (1)(C) if the benefits of the acquisition strategy substantially exceed the benefits of each of the possible alternative contracting approaches identified under paragraph (1)(B).
Savings in administrative or personnel costs
For purposes of subparagraph (A), savings in administrative or personnel costs alone do not constitute a sufficient justification for a consolidation of contract requirements in a procurement unless the expected total amount of the cost savings, as determined by the senior procurement executive or Chief Acquisition Officer, is substantial in relation to the total cost of the procurement.
Benefits to be considered
The benefits considered for the purposes of paragraphs (1) and (2) may include cost and, regardless of whether quantifiable in dollar amounts—
quality;
acquisition cycle;
terms and conditions; and
any other benefit.
.
Small business teams pilot program
Definitions
In this section—
the term Center means the Center for Small Business Teaming established under subsection (b); and
the term eligible organization means a well-established national organization for small business concerns with the capacity to provide assistance to small business concerns (which may be provided with the assistance of the Center) relating to—
customer relations and outreach;
submitting bids and proposals;
team relations and outreach; and
performance measurement and quality assurance.
Establishment
The Administrator shall establish a Center for Small Business Teaming within the Administration to carry out a pilot program for teaming and joint ventures involving small business concerns.
Grants
The Center may make grants to eligible organizations to assemble teams of small business concerns to compete for larger procurement contracts.
Contracting opportunities
In general
The Center shall work with eligible organizations receiving a grant under this section to identify appropriate contracting opportunities for teams or joint ventures of small business concerns.
Restricted competition
A contracting officer of a Federal agency may restrict competition for any contract for the procurement of goods or services by the Federal agency to teams or joint ventures of small business concerns if determined appropriate by the contracting officer.
Termination
The authorities under this section shall terminate 5 years after the date of enactment of this Act.
Authorization of appropriations
There are authorized to be appropriated for grants by the Center under subsection (c) $5,000,000 for each of fiscal years 2010 through 2015.
Subcontracting integrity
GAO recommendations on subcontracting misrepresentations
Section 8 of the Small Business Act (15 U.S.C. 637) is amended by adding at the end the following:
Prevention of misrepresentations in subcontracting; implementation of recommendations of Comptroller General
Statement of policy
It is the policy of Congress that the recommendations of the Comptroller General of the United States in Report No. 05–459, concerning oversight improvements necessary to ensure maximum practicable participation by small business concerns in subcontracting, shall be implemented Government-wide, to the maximum extent possible.
Contractor compliance
Compliance of Federal prime contractors with subcontracting plans relating to small business concerns shall be evaluated as a percentage of obligated prime contract dollars and as a percentage of subcontracts awarded.
Issuance of agency policies
Not later than 180 days after the date of enactment of this subsection, the head of each Federal agency shall issue a policy on subcontracting compliance relating to small business concerns, including assignment of compliance responsibilities between contracting offices, small business offices, and program offices and periodic oversight and review activities.
.
Small business subcontracting improvements
Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is amended—
in subparagraph (E), by
striking and
at the end;
in subparagraph (F), by
striking the period at the end and inserting ; and
; and
by adding at the end, the following:
a certification that the offeror or bidder will acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns used in preparing and submitting to the contracting agency the bid or proposal, in the same amount and quality used in preparing and submitting the bid or proposal, unless the small business concerns are no longer in business or can no longer meet the quality, quantity, or delivery date.
.
Acquisition process
Reservation of prime contract awards for small businesses
Section 15 of the Small Business Act (15 U.S.C. 644), as amended by this Act, is amended by adding at the end the following:
Government-wide acquisition contracts
Not later than 180 days after the date of enactment of this subsection, the Administrator for Federal Procurement Policy, in consultation with the Administrator, shall, by regulation, establish criteria for Federal agencies for—
setting aside part or parts of a multiple award contract (as defined in section 44), Federal supply schedule contracts, and other Government-wide acquisition contracts for small business concerns, including the subcategories of small business concerns identified in subsection (g)(2);
setting aside orders placed against multiple award contracts, Federal supply schedule contracts, and other Government-wide acquisition contracts for small business concerns, including the subcategories of small business concerns identified in subsection (g)(2); and
reserving 1 or more contract awards for small business concerns under full and open multiple award procurements, including the subcategories of small business concerns identified in subsection (g)(2).
Protecting individual small business contract opportunities
For each fiscal year, the head of a Federal agency shall award through competition restricted to small business concerns contracts in a total number and amount equal to the total number and amount of contracts not awarded through competition restricted to small business concerns because—
the small business concern that is the prime contractor for the contract merged with or was acquired by a business concern that is not a small business concern; or
the Federal agency awarded the contract through full and open competition for the purposes of a follow-on contract.
.
Micro-purchase guidelines
Not later than 1
year after the date of enactment of this Act, the Director of the Office of
Management and Budget shall issue guidelines regarding the analysis of purchase
card expenditures to identify opportunities for achieving and accurately
measuring fair participation of small business concerns in purchases in an
amount not in excess of the micro-purchase threshold, as defined in section 32
of the Office of Federal Procurement Policy Act (41 U.S.C. 428) (in this
section referred to as micro-purchases
), consistent with the
national policy on small business participation in Federal procurements set
forth in sections 2(a) and 15(g) of the Small Business Act (15 U.S.C. 631(a)
and 644(g)), and dissemination of best practices for participation of small
business concerns in micro-purchases.
Agency accountability
Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is amended—
by inserting
(A)
after (2)
;
by striking “Goals established” and inserting the following:
Goals established
;
by striking
Whenever
and inserting the following:
Whenever
;
by striking For
the purpose of
and inserting the following:
For the purpose of
;
by striking The
head of each Federal agency, in attempting to attain such participation
and inserting the following:
The head of each Federal agency, in attempting to attain the participation described in subparagraph (D)
.
in subparagraph (E), as so designated—
by striking (A)
contracts
and inserting (i) contracts
; and
by striking (B)
contracts
and inserting (ii) contracts
; and
by adding at the end the following:
Each procurement employee or program manager described in clause (ii)—
shall communicate to the subordinates of the procurement employee or program manager the importance of achieving small business goals; and
shall have as a significant factor in the annual performance evaluation of the procurement employee or program manager, where appropriate, the success of that procurement employee or program manager in small business utilization, in accordance with the goals established under this subsection.
A procurement employee or program manager described in this clause is a senior procurement executive, senior program manager, or Director of Small and Disadvantaged Business Utilization of a Federal agency having contracting authority.
.
Payment of subcontractors
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the end the following:
Payment of subcontractors
Definition
In this paragraph, the term covered contract means a contract relating to which a prime contractor is required to develop a subcontracting plan under paragraph (4) or (5).
Notice
In general
A prime contractor for a covered contract shall pay a small business as quickly as possible after the date on which proper documentation is received according to the contract terms and before the payment due date. A prime contractor for a covered contract shall notify in writing the contracting officer for the covered contract if the prime contractor pays a reduced price to a subcontractor for goods and services upon completion of the responsibilities of the subcontractor or the payment to a subcontractor is more than 90 days past due for goods or services provided for the covered contract for which—
the Federal agency has paid the prime contractor; or
the prime contractor has submitted a request for payment to the Federal agency.
Contents
A prime contractor shall include the reason for the reduction in a payment to or failure to pay a subcontractor in any notice made under clause (i).
Public availability
The head of each Federal agency shall, after redacting information identifying any subcontractor, make publicly available any notice made under clause (i).
Performance
A contracting officer for a covered contract shall consider the failure by a prime contractor to make a full or timely payment to a subcontractor in evaluating the performance of the prime contractor.
Control of funds
A contracting officer for a covered contract may restrict the authority of a prime contractor that has a history of untimely payment of subcontractors (as determined by the contracting officer) to make expenditures under or control payment of subcontractors for a covered contract.
.
Repeal of Small Business Competitiveness Demonstration Program
In general
The Business Opportunity Development Reform Act of 1988 (Public Law 100–656) is amended by striking title VII (15 U.S.C. 644 note).
Effective date and applicability
The amendment made by this section—
shall take effect on the date of enactment of this Act; and
apply to the first full fiscal year after the date of enactment of this Act.
Small business size and status integrity
Policy and presumptions
Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:
Presumption
In general
In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.
Deemed certifications
The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:
Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.
Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement which in any way encourages a Federal agency to classify the bid or proposal, if awarded, as an award to a small business concern.
Registration on any Federal electronic database for the purpose of being considered for award of a Federal grant, contract, subcontract, cooperative agreement, or cooperative research agreement, as a small business concern.
Certification by signature of responsible official
In general
Each solicitation, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract, or grant.
Content of certifications
A certification that a business concern qualifies as a small business concern of the exact size and status claimed by the business concern for purposes of bidding on a Federal contract or subcontract, or applying for a Federal grant, shall contain the signature of a director, officer, or counsel on the same page on which the certification is contained.
Regulations
The Administrator shall promulgate regulations to provide adequate protections to individuals and business concerns from liability under this subsection in cases of unintentional errors, technical malfunctions, and other similar situations.
.
Annual certification
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by this Act, is amended by adding at the end the following:
Annual certification
In general
Each business certified as a small business concern under this Act shall annually certify its small business size and, if appropriate, its small business status, by means of a confirming entry on the ORCA database of the Administration, or any successor thereto.
Regulations
Not later than 1 year after the date of enactment of this subsection, the Administrator, in consultation with the Inspector General and the Chief Counsel for Advocacy of the Administration, shall promulgate regulations to ensure that—
no business concern continues to be certified as a small business concern on the ORCA database of the Administration, or any successor thereto, without fulfilling the requirements for annual certification under this subsection; and
the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.
Determination of size status
The small business size or status of a business concern shall be determined at the time of the award of a Federal—
contract, except that, in the case of interagency multiple award contracts (as defined in section 44), small business size or status shall be determined annually, except for purposes of the award of each task or delivery order set aside or reserved for small business concerns;
subcontract;
grant;
cooperative agreement; or
cooperative research and development agreement.
.
Training for contracting and enforcement personnel
In general
Not later than 1 year after the date of enactment of this Act, the Federal Acquisition Institute, in consultation with the Administrator for Federal Procurement Policy, shall develop courses for acquisition personnel concerning proper classification of business concerns and small business size and status for purposes of Federal contracts, subcontracts, grants, cooperative agreements, and cooperative research and development agreements.
Policy on prosecutions of small business size and status fraud
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by this Act, is amended by adding at the end the following:
Policy on prosecutions of small business size and status fraud
Not later than 1 year after the date of enactment of this subsection, the head of each relevant Federal agency and the Inspector General of the Administration shall issue a Government-wide policy on prosecution of small business size and status fraud.
.
Updated size standards
In general
The Administrator shall—
once every 5 years, conduct a detailed review of the size standards for small business concerns established under section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2));
after each review under paragraph (1) make appropriate adjustments to size standards under that section to reflect market conditions; and
make publically available information regarding—
the factors evaluated as part of each review conducted under paragraph (1); and
the criteria used for any revised size standards promulgated under paragraph (2).
Rules
Not later than 1 year after the date of enactment of this Act, the Administrator shall promulgate rules for conducting the reviews required under subsection (a).
Study and report on the mentor-protege program
In general
The Comptroller General of the United States shall conduct a study of the mentor-protege program of the Administration for small business concerns participating in programs under section 8(a) of the Small Business Act (15 U.S.C. 637(a)), and other relationships and strategic alliances pairing a larger business and a small business concern partner to gain access to Federal Government contracts, to determine whether the programs and relationships are effectively supporting the goal of increasing the participation of small business concerns in Government contracting.
Matters To Be studied
The study conducted under this section shall include—
a review of a broad cross-section of industries; and
an evaluation of—
how each Federal agency carrying out a program described in subsection (a) administers and monitors the program;
whether there are systems in place to ensure that the mentor-protege relationship, or similar affiliation, promotes real gain to the protege, and is not just a mechanism to enable participants that would not otherwise qualify under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to receive contracts under that section; and
the degree to which protege businesses become able to compete for Federal contracts without the assistance of a mentor.
Report to Congress
Not later than 180 days after the date of enactment of this Act, the Comptroller General 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 results of the study conducted under this section.
Policy on support of competitive enterprise system
Finding
Congress finds that the competitive enterprise system, including small business concerns, is—
characterized by individual freedom and initiative; and
the primary source of economic strength of the United States.
Policy
Section 2 of the Small Business Act (15 U.S.C. 631) is amended by adding at the end the following:
Policy on support of competitive enterprise system
It is the declared policy of Congress that the Federal Government—
should support the competitive enterprise system of the United States, including small business concerns;
should not compete with the citizens of the United States;
should rely on commercial sources to supply the products and services required by the Federal Government; and
should avoid starting or carrying out any activity that provides a product or service that can be procured more effectively and efficiently from a nongovernmental source.
.
Contracting goals reports
Section 15(h)(2) of
the Small Business Act (15 U.S.C. 644(h)(2)) is amended by striking
submit them
and all that follows through the
following:
and inserting submit to the President and the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives the compilation and
analysis, which shall include the following:
.
Surety bonds
Section 508(f) of division A of the American Recovery and Reinvestment Act of 2009 (15 U.S.C. 694a note) is repealed.
September 29, 2010
Reported with an amendment