S. 2989Senate111th Congress (2009-2011)In Committee

Small Business Contracting Revitalization Act of 2010

Introduced February 4, 2010

Legislative Activity

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Placed on Senate Legislative Calendar under General Orders. Calendar No. 635.

September 29, 2010

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SenateIntro Referral

Introduced in Senate

February 4, 2010

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S486-487)

February 4, 2010

SenateIntro Referral

Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S487-490)

February 4, 2010

SenateCommittee

Committee on Small Business and Entrepreneurship. Ordered to be reported with amendments favorably.

March 4, 2010

SenateCommittee

Committee on Small Business and Entrepreneurship. Reported by Senator Landrieu with an amendment in the nature of a substitute. With written report No. 111-343.

September 29, 2010

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 635.

September 29, 2010

Floor Debate

18 members

What members said about S. 2989 on the floor

5 Republicans13 Democrats
Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Feb 4, 2010

Mr. President, I come to the floor today to speak on an issue that is of great importance to my home State of Louisiana: disaster recovery from Hurricanes Katrina and Rita of 2005 and Hurricanes…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Mar 17, 2010

I am pleased to speak as chair of the Small Business Committee with several of my colleagues from the committee who have been hard at work coming up with ideas, drafting and passing legislation in…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · May 27, 2010

Mr. President, I rise today to introduce legislation designed to increase tax fairness for America's primary and secondary school teachers. Our public school teachers are some of the unheralded…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Feb 4, 2010

Mr. President, the law granting the Federal Government, for the first time, the authority to regulate the security of the nation's highest risk chemical facilities is due to expire at the end of this…

Jeff Bingaman
Sen. Jeff BingamanD-NM · May 27, 2010

Mr. President, I rise to introduce the Home Star Energy Retrofit Act of 2010 and to recognize the original cosponsors of the bill: Senator Warner, Senator Graham, Senator Snowe, Senator Sanders,…

Show 8 more
Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Mar 17, 2010

Mr. President, I also ask unanimous consent to speak as in morning business as part of the comments made by Senator Landrieu and Senator Shaheen. Mr. President, we are here today to talk about the…

Tom Udall
Sen. Tom UdallD-NM · May 27, 2010

Mr. President, I rise today to express support for S. 3307, the Healthy, Hunger-Free Kids Act of 2010, and to introduce two pieces of legislation that I hope will be included in the final…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Feb 4, 2010

Mr. President, I am pleased today to be introducing the Small Business Contracting Improvements Act of 2010, legislation designed to protect the interests of small businesses and boost their…

Jeanne Shaheen
Sen. Jeanne ShaheenD-NH · Mar 17, 2010

Mr. President, I ask unanimous consent to speak as in morning business. Mr. President, I am so pleased to join Chairman Landrieu and my colleague, Senator Ben Cardin. Hopefully, he will be able to…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Feb 4, 2010

Mr. President, today I rise to introduce the Shaken Baby Syndrome Prevention Act of 2010, important legislation that promotes awareness and prevention of Shaken Baby Syndrome/Abusive Head Trauma, a…

Mark Udall
Sen. Mark UdallD-CO · Feb 4, 2010

Mr. President, today I am introducing a bill to improve the management our public lands by increasing the fines and penalties associated with violations of law--and regulation--governing the use of…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Feb 4, 2010

Mr. President, as ranking Member of the Senate Committee on Small Business and Entrepreneurship, I rise today, along with Senator Landrieu, to introduce the Small Business Contracting Revitalization…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Feb 4, 2010

Mr. President, as ranking Member of the Senate Committee on Small Business and Entrepreneurship, I rise today, along with Senator Landrieu, to introduce the Small Business Contracting Revitalization…

Show 11 more
Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · May 27, 2010

Mr. President, I am introducing today the proposed Post-9/ 11 Veterans Educational Assistance Improvements Act of 2010. This measure is designed to make a number of modifications to the new program…

Jack Reed
Sen. Jack ReedD-RI · Feb 4, 2010

Mr. President, today I introduce the National Institute of Finance Act of 2010, which would create an Institute to provide our financial regulators with the data and analytic tools needed to prevent…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · May 27, 2010

Mr. President, as Ranking Member of the Senate Committee on Small Business and Entrepreneurship, I rise today, during National Small business Week, along with my colleague Senator Cardin, to…

John McCain
Sen. John McCainR-AZ · Feb 4, 2010

Mr. President, today I am pleased to introduce the Dietary Supplement Safety Act of 2010 with my colleague Senator Dorgan. This bill would strengthen the Food and Drug Administration's, FDA,…

Sherrod Brown
Sen. Sherrod BrownD-OH · Feb 4, 2010

Mr. President, last month, the Supreme Court ruled that corporations, U.S. or multinational, are equivalent to people and should be able to spend an unlimited amount of company money on political…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · May 27, 2010

Mr. President, I rise today to introduce legislation designed to improve educational opportunities for struggling students. The All Students Achieving Through Reform Act, or All-STAR Act, would…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Feb 4, 2010

Mr. President, today Senator Carper and I have joined with Senators Klobuchar, Collins, Gregg, Kaufman, Graham, Feinstein, Shaheen, Schumer, Lieberman, and Snowe to introduce the Clean Air Act…

Harry Reid
Sen. Harry ReidD-NV · May 27, 2010

Mr. President, in 1935, President Franklin Delano Roosevelt signed the Rural Electrification Act to bring electricity to the sparsely-populated rural areas of our vast Nation. Today, with advances in…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · May 27, 2010

Mr. President, it is time to take mining companies' safety records out of the darkness and bring some much-needed transparency and accountability to the industry. Today, I am introducing legislation…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Feb 4, 2010

Mr. President, I rise today to express my support for the International Violence Against Women Act, introduced today by Senators Kerry, Boxer, Snowe, and Collins. I am proud to be an original…

John McCain
Sen. John McCainR-AZ · Mar 17, 2010

Mr. President, I ask unanimous consent to address the Senate as in morning business. Mr. President, before I get into the main topic, I obviously appreciate the passion of the Senator from Louisiana.…

Bill Text

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Reported to SenateIssued September 29, 2010

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.

1.

Short title

This Act may be cited as the Small Business Contracting Revitalization Act of 2010.

2.

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.

3.

Definitions

In this Act—

(1)

the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and

(2)

the term small business concern has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632).

I

Contract bundling

101.

Leadership and oversight

(a)

In general

Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following:

(q)

Bundling Accountability Measures

(1)

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.

(2)

Agency Policies on Reduction of Contract Bundling

The head of each Federal agency shall—

(A)

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

(B)

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.

(3)

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—

(A)

identify each area for which the Federal agency has assigned a procurement center representative or a commercial market representative;

(B)

explain why the Federal agency selected the areas identified under subparagraph (A); and

(C)

describe the activities performed by procurement center representatives and commercial market representatives.

.

(b)

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.

(c)

Report

(1)

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.

(2)

Contents

The report submitted under paragraph (1) shall—

(A)

address ways to improve the effectiveness of the procurement center representative program in helping small business concerns obtain Federal contracts;

(B)

evaluate the effectiveness of procurement center representatives and commercial marketing representatives; and

(C)

include recommendations, if any, on how to improve the procurement center representative program.

(d)

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.

102.

Consolidation of contract requirements

The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1)

by redesignating section 44 as section 45; and

(2)

by inserting after section 43 the following:

44.

Consolidation of contract requirements

(a)

Definitions

In this section—

(1)

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));

(2)

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;

(3)

the term Federal agency does not include the Department of Defense or any agency of the Department of Defense;

(4)

the term multiple award contract means—

(A)

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

(B)

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

(5)

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.

(b)

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.

(c)

Limitation on use of acquisition strategies involving consolidation

(1)

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—

(A)

conducts market research;

(B)

identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements; and

(C)

determines that the consolidation of contract requirements is necessary and justified.

(2)

Determination that consolidation is necessary and justified

(A)

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).

(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.

(3)

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—

(A)

quality;

(B)

acquisition cycle;

(C)

terms and conditions; and

(D)

any other benefit.

.

103.

Small business teams pilot program

(a)

Definitions

In this section—

(1)

the term Center means the Center for Small Business Teaming established under subsection (b); and

(2)

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—

(A)

customer relations and outreach;

(B)

submitting bids and proposals;

(C)

team relations and outreach; and

(D)

performance measurement and quality assurance.

(b)

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.

(c)

Grants

The Center may make grants to eligible organizations to assemble teams of small business concerns to compete for larger procurement contracts.

(d)

Contracting opportunities

(1)

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.

(2)

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.

(e)

Termination

The authorities under this section shall terminate 5 years after the date of enactment of this Act.

(f)

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.

II

Subcontracting integrity

201.

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:

(o)

Prevention of misrepresentations in subcontracting; implementation of recommendations of Comptroller General

(1)

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.

(2)

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.

(3)

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.

.

202.

Small business subcontracting improvements

Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is amended—

(1)

in subparagraph (E), by striking and at the end;

(2)

in subparagraph (F), by striking the period at the end and inserting ; and; and

(3)

by adding at the end, the following:

(G)

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.

.

III

Acquisition process

301.

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:

(r)

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—

(1)

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);

(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

(3)

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).

.

302.

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.

303.

Agency accountability

Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is amended—

(1)

by inserting (A) after (2);

(2)

by striking “Goals established” and inserting the following:

(B)

Goals established

;

(3)

by striking Whenever and inserting the following:

(C)

Whenever

;

(4)

by striking For the purpose of and inserting the following:

(D)

For the purpose of

;

(5)

by striking The head of each Federal agency, in attempting to attain such participation and inserting the following:

(E)

The head of each Federal agency, in attempting to attain the participation described in subparagraph (D)

.

(6)

in subparagraph (E), as so designated—

(A)

by striking (A) contracts and inserting (i) contracts; and

(B)

by striking (B) contracts and inserting (ii) contracts; and

(7)

by adding at the end the following:

(F)
(i)

Each procurement employee or program manager described in clause (ii)—

(I)

shall communicate to the subordinates of the procurement employee or program manager the importance of achieving small business goals; and

(II)

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.

(ii)

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.

.

304.

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:

(11)

Payment of subcontractors

(A)

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).

(B)

Notice

(i)

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—

(I)

the Federal agency has paid the prime contractor; or

(II)

the prime contractor has submitted a request for payment to the Federal agency.

(ii)

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).

(iii)

Public availability

The head of each Federal agency shall, after redacting information identifying any subcontractor, make publicly available any notice made under clause (i).

(C)

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.

(D)

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.

.

305.

Repeal of Small Business Competitiveness Demonstration Program

(a)

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).

(b)

Effective date and applicability

The amendment made by this section—

(1)

shall take effect on the date of enactment of this Act; and

(2)

apply to the first full fiscal year after the date of enactment of this Act.

IV

Small business size and status integrity

401.

Policy and presumptions

Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:

(t)

Presumption

(1)

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.

(2)

Deemed certifications

The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:

(A)

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.

(B)

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.

(C)

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.

(3)

Certification by signature of responsible official

(A)

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.

(B)

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.

(4)

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.

.

402.

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:

(u)

Annual certification

(1)

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.

(2)

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—

(A)

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

(B)

the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.

(3)

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—

(A)

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;

(B)

subcontract;

(C)

grant;

(D)

cooperative agreement; or

(E)

cooperative research and development agreement.

.

403.

Training for contracting and enforcement personnel

(a)

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.

(b)

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:

(v)

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.

.

404.

Updated size standards

Not later than 1 year after the date of enactment of this Act, and every 5 years thereafter, the Administrator shall—

(1)

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));

(2)

make appropriate adjustments to size standards under that section to reflect market conditions; and

(3)

make publically available information regarding—

(A)

the factors evaluated as part of the review conducted under paragraph (1); and

(B)

the criteria used for any revised size standards promulgated under paragraph (2).

405.

Study and report on the mentor-protege program

(a)

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.

(b)

Matters To Be studied

The study conducted under this section shall include—

(1)

a review of a broad cross-section of industries; and

(2)

an evaluation of—

(A)

how each Federal agency carrying out a program described in subsection (a) administers and monitors the program;

(B)

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

(C)

the degree to which protege businesses become able to compete for Federal contracts without the assistance of a mentor.

(c)

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.

1.

Short title

This Act may be cited as the Small Business Contracting Revitalization Act of 2010.

2.

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.

3.

Definitions

In this Act—

(1)

the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and

(2)

the term small business concern has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632).

I

Contract bundling

101.

Leadership and oversight

(a)

In general

Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following:

(q)

Bundling Accountability Measures

(1)

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.

(2)

Agency Policies on Reduction of Contract Bundling

The head of each Federal agency shall—

(A)

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

(B)

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.

(3)

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—

(A)

identify each area for which the Administration has assigned a procurement center representative or a commercial market representative;

(B)

explain why the Administration selected the areas identified under subparagraph (A); and

(C)

describe the activities performed by procurement center representatives and commercial market representatives.

.

(b)

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.

(c)

Report

(1)

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.

(2)

Contents

The report submitted under paragraph (1) shall—

(A)

address ways to improve the effectiveness of the procurement center representative program in helping small business concerns obtain Federal contracts;

(B)

evaluate the effectiveness of procurement center representatives and commercial marketing representatives; and

(C)

include recommendations, if any, on how to improve the procurement center representative program.

(d)

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.

102.

Consolidation of contract requirements

The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1)

by redesignating section 44 as section 45; and

(2)

by inserting after section 43 the following:

44.

Consolidation of contract requirements

(a)

Definitions

In this section—

(1)

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));

(2)

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;

(3)

the term multiple award contract means—

(A)

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

(B)

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

(4)

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.

(b)

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.

(c)

Limitation on use of acquisition strategies involving consolidation

(1)

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—

(A)

conducts market research;

(B)

identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements;

(C)

makes a written determination that the consolidation of contract requirements is necessary and justified;

(D)

identifies any negative impact by the acquisition strategy on contracting with small business concerns; and

(E)

certifies that the acquisition strategy fulfills the small business contracting goals of the Federal agency.

(2)

Determination that consolidation is necessary and justified

(A)

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).

(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.

(3)

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—

(A)

quality;

(B)

acquisition cycle;

(C)

terms and conditions; and

(D)

any other benefit.

.

103.

Small business teams pilot program

(a)

Definitions

In this section—

(1)

the term Center means the Center for Small Business Teaming established under subsection (b); and

(2)

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—

(A)

customer relations and outreach;

(B)

submitting bids and proposals;

(C)

team relations and outreach; and

(D)

performance measurement and quality assurance.

(b)

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.

(c)

Grants

The Center may make grants to eligible organizations to assemble teams of small business concerns to compete for larger procurement contracts.

(d)

Contracting opportunities

(1)

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.

(2)

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.

(e)

Termination

The authorities under this section shall terminate 5 years after the date of enactment of this Act.

(f)

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.

II

Subcontracting integrity

201.

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:

(o)

Prevention of misrepresentations in subcontracting; implementation of recommendations of Comptroller General

(1)

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.

(2)

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.

(3)

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.

.

202.

Small business subcontracting improvements

Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is amended—

(1)

in subparagraph (E), by striking and at the end;

(2)

in subparagraph (F), by striking the period at the end and inserting ; and; and

(3)

by adding at the end, the following:

(G)

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.

.

III

Acquisition process

301.

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:

(r)

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—

(1)

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);

(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

(3)

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).

(s)

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—

(1)

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

(2)

the Federal agency awarded the contract through full and open competition for the purposes of a follow-on contract.

.

302.

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.

303.

Agency accountability

Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is amended—

(1)

by inserting (A) after (2);

(2)

by striking “Goals established” and inserting the following:

(B)

Goals established

;

(3)

by striking Whenever and inserting the following:

(C)

Whenever

;

(4)

by striking For the purpose of and inserting the following:

(D)

For the purpose of

;

(5)

by striking The head of each Federal agency, in attempting to attain such participation and inserting the following:

(E)

The head of each Federal agency, in attempting to attain the participation described in subparagraph (D)

.

(6)

in subparagraph (E), as so designated—

(A)

by striking (A) contracts and inserting (i) contracts; and

(B)

by striking (B) contracts and inserting (ii) contracts; and

(7)

by adding at the end the following:

(F)
(i)

Each procurement employee or program manager described in clause (ii)—

(I)

shall communicate to the subordinates of the procurement employee or program manager the importance of achieving small business goals; and

(II)

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.

(ii)

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.

.

304.

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:

(11)

Payment of subcontractors

(A)

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).

(B)

Notice

(i)

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—

(I)

the Federal agency has paid the prime contractor; or

(II)

the prime contractor has submitted a request for payment to the Federal agency.

(ii)

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).

(iii)

Public availability

The head of each Federal agency shall, after redacting information identifying any subcontractor, make publicly available any notice made under clause (i).

(C)

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.

(D)

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.

.

305.

Repeal of Small Business Competitiveness Demonstration Program

(a)

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).

(b)

Effective date and applicability

The amendment made by this section—

(1)

shall take effect on the date of enactment of this Act; and

(2)

apply to the first full fiscal year after the date of enactment of this Act.

IV

Small business size and status integrity

401.

Policy and presumptions

Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:

(t)

Presumption

(1)

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.

(2)

Deemed certifications

The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:

(A)

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.

(B)

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.

(C)

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.

(3)

Certification by signature of responsible official

(A)

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.

(B)

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.

(4)

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.

.

402.

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:

(u)

Annual certification

(1)

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.

(2)

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—

(A)

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

(B)

the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.

(3)

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—

(A)

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;

(B)

subcontract;

(C)

grant;

(D)

cooperative agreement; or

(E)

cooperative research and development agreement.

.

403.

Training for contracting and enforcement personnel

(a)

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.

(b)

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:

(v)

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.

.

404.

Updated size standards

(a)

In general

The Administrator shall—

(1)

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));

(2)

after each review under paragraph (1) make appropriate adjustments to size standards under that section to reflect market conditions; and

(3)

make publically available information regarding—

(A)

the factors evaluated as part of each review conducted under paragraph (1); and

(B)

the criteria used for any revised size standards promulgated under paragraph (2).

(b)

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).

405.

Study and report on the mentor-protege program

(a)

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.

(b)

Matters To Be studied

The study conducted under this section shall include—

(1)

a review of a broad cross-section of industries; and

(2)

an evaluation of—

(A)

how each Federal agency carrying out a program described in subsection (a) administers and monitors the program;

(B)

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

(C)

the degree to which protege businesses become able to compete for Federal contracts without the assistance of a mentor.

(c)

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.

406.

Policy on support of competitive enterprise system

(a)

Finding

Congress finds that the competitive enterprise system, including small business concerns, is—

(1)

characterized by individual freedom and initiative; and

(2)

the primary source of economic strength of the United States.

(b)

Policy

Section 2 of the Small Business Act (15 U.S.C. 631) is amended by adding at the end the following:

(k)

Policy on support of competitive enterprise system

It is the declared policy of Congress that the Federal Government—

(1)

should support the competitive enterprise system of the United States, including small business concerns;

(2)

should not compete with the citizens of the United States;

(3)

should rely on commercial sources to supply the products and services required by the Federal Government; and

(4)

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.

.

407.

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:.

408.

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