H.R. 5178House115th Congress (2017-2019)In Committee

Puerto Rico Small Business Contracting Assistance Act of 2018

Introduced March 6, 2018

AI-Generated Summary

Updated April 15, 2026 at 8:38 PM UTC

The Puerto Rico Small Business Contracting Assistance Act of 2018 changes the Small Business Act to give Puerto Rico‑based small businesses special help when dealing with federal contracts. It defines a “Puerto Rico business,” doubles the contract value of any award to such a business for meeting agency contracting goals, and adds reporting and incentive rules. The changes affect small businesses in Puerto Rico and the federal agencies that award them contracts or surplus property.

Key Provisions

  • Creates a definition of “Puerto Rico business” as a small business whose main office is in Puerto Rico.
  • If a federal agency awards a prime contract to a Puerto Rico business, the contract’s value counts double toward the agency’s small‑business procurement goals for a four‑year period.
  • Agencies must report annually on the number and dollar amount of these doubled‑value contracts and make the data public on the existing scorecard.
  • Allows the Small Business Administration to transfer surplus federal property or technology to Puerto Rico businesses during the period the Puerto Rico Oversight Board is active, without requiring the business to be a program participant.
  • Provides incentives for mentors who subcontract to Puerto Rico‑based protégés, such as positive past‑performance credit, counting training costs toward subcontracting plans, and other incentives the Administrator may set.
  • Defines “covered mentor” (a mentor in a mentor‑protege agreement) and “covered protege” (a Puerto Rico business protégée).
  • Permits up to two mentor‑protege relationships involving covered protégés to be exempt from certain existing restrictions.

Legislative Activity

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5 earlier actions
HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 481.

April 10, 2018

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HouseIntro Referral

Introduced in House

March 6, 2018

HouseIntro Referral

Referred to the House Committee on Small Business.

March 6, 2018

HouseCommittee

Committee Consideration and Mark-up Session Held.

March 14, 2018

HouseCommittee

Ordered to be Reported by Voice Vote.

March 14, 2018

HouseCommittee

Reported by the Committee on Small Business. H. Rept. 115-628.

April 10, 2018

HouseCalendars

Placed on the Union Calendar, Calendar No. 481.

April 10, 2018

Bill Text

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Reported in HouseIssued April 10, 2018

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Union Calendar No. 481

115th CONGRESS

2d Session

H. R. 5178

[Report No. 115–628]

IN THE HOUSE OF REPRESENTATIVES

March 6, 2018

Ms. Velázquez introduced the following bill; which was referred to the Committee on Small Business

April 10, 2018

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed


A BILL

To amend the Small Business Act to provide for small business concerns located in Puerto Rico, and for other purposes.


1.

Short title

This Act may be cited as the Puerto Rico Small Business Contracting Assistance Act of 2018.

2.

Definition of Puerto Rico business

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

(ee)

Puerto Rico business

In this Act, the term Puerto Rico business means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.

.

3.

Small business credit for Puerto Rico businesses

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

(w)

Small business credit for Puerto Rico businesses

(1)

Credit for meeting contracting goals

If an agency awards a prime contract to Puerto Rico business during the period beginning on the date of enactment of this subsection and ending on the date that is 4 years after such date of enactment, the value of the contract shall be doubled for purposes of determining compliance with the goals for procurement contracts under subsection (g)(1)(A)(i) during such period.

(2)

Report

Along with the report required under subsection (h)(1), the head of each Federal agency shall submit to the Administrator, and make publicly available on the scorecard described in section 868(b) of the National Defense Authorization Act for Fiscal Year 2016 (15 U.S.C. 644 note), an analysis of the number and dollar amount of prime contracts awarded pursuant to paragraph (1) for each fiscal year of the period described in such paragraph.

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4.

Priority for surplus property transfers

Section 7(j)(13)(F) of the Small Business Act (15 U.S.C. 636(j)(13)(F)) is amended by adding at the end the following new clause:

(iii)
(I)

In this clause, the term covered period means the period beginning on the date of enactment of this clause and ending on the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates.

(II)

The Administrator may transfer technology or surplus property under clause (i) to a Puerto Rico business if the Puerto Rico business meets the requirements for such a transfer, without regard to whether the Puerto Rico business is a Program Participant.

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5.

Contracting incentives for protege firms that are Puerto Rico businesses

(a)

In general

Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is amended by adding at the end the following new paragraph:

(3)

Puerto Rico businesses

During the period beginning on the date of enactment of this paragraph and ending on the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates, the Administrator shall identify potential incentives to a covered mentor that awards a subcontract to its covered protege, including—

(A)

positive consideration in any past performance evaluation of the covered mentor;

(B)

the application of costs incurred for providing training to such covered protege to the subcontracting plan (as required under paragraph (4) or (5) of section 8(d)) of the covered mentor; and

(C)

such other incentives as the Administrator determines appropriate.

.

(b)

Definitions

Section 45(d) of the Small Business Act (15 U.S.C. 657r(d)) is amended by adding at the end the following new paragraphs:

(4)

Covered mentor

The term covered mentor means a mentor that enters into an agreement under this Act, or under any mentor-protege program approved under subsection (b)(1), with a covered protege.

(5)

Covered protege

The term covered protege means a protege of a covered mentor that is a Puerto Rico business.

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6.

Additional mentor-protege relationships for protege firms that are Puerto Rico businesses

Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by inserting , except that such restrictions shall not apply to up to 2 mentor-protege relationships if such relationships are between a covered protege and covered mentor after each participant.

April 10, 2018

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed