HR 4670 — Small Business Contracting Transparency Act of 2023

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 SMALL BUSINESS ACT

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 Sec. 8. (a)(1) It shall be the duty of the Administration 
and it is hereby empowered, whenever it determines such action 
is necessary or appropriate--
 (A) to enter into contracts with the United States 
 Government and any department, agency, or officer 
 thereof having procurement powers obligating the 
 Administration to furnish articles, equipment, 
 supplies, services, or materials to the Government or 
 to perform construction work for the Government. In any 
 case in which the Administration certifies to any 
 officer of the Government having procurement powers 
 that the Administration is competent and responsible to 
 perform any specific Government procurement contract to 
 be let by any such officer, such officer shall be 
 authorized in his discretion to let such procurement 
 contract to the Administration upon such terms and 
 conditions as may be agreed upon between the 
 Administration and the procurement officer. Whenever 
 the Administration and such procurement officer fail to 
 agree, the matter shall be submitted for determination 
 to the Secretary or the head of the appropriate 
 department or agency by the Administrator. Not later 
 than 5 days from the date the Administration is 
 notified of a procurement officer's adverse decision, 
 the Administration may notify the contracting officer 
 of the intent to appeal such adverse decision, and 
 within 15 days of such date the Administrator shall 
 file a written request for a reconsideration of the 
 adverse decision with the Secretary of the department 
 or agency head. For the purposes of this subparagraph, 
 a procurement officer's adverse decision includes a 
 decision not to make available for award pursuant to 
 this subsection a particular procurement requirement or 
 the failure to agree on the terms and conditions of a 
 contract to be awarded noncompetitively under the 
 authority of this subsection. Upon receipt of the 
 notice of intent to appeal, the Secretary of the 
 department or the agency head shall suspend further 
 action regarding the procurement until a written 
 decision on the Administrator's request for 
 reconsideration has been issued by such Secretary or 
 agency head, unless such officer makes a written 
 determination that urgent and compelling circumstances 
 which significantly affect interests of the United 
 States will not permit waiting for a reconsideration of 
 the adverse decision. If the Administrator's request 
 for reconsideration is denied, the Secretary of the 
 department or agency head shall specify the reasons why 
 the selected firm was determined to be incapable to 
 perform the procurement requirement, and the findings 
 supporting such determination, which shall be made a 
 part of the contract file for the requirement. A 
 contract may not be awarded under this subsection if 
 the award of the contract would result in a cost to the 
 awarding agency which exceeds a fair market price;
 (B) to arrange for the performance of such 
 procurement contracts by negotiating or otherwise 
 letting subcontracts to socially and economically 
 disadvantaged small business concerns for construction 
 work, services, or the manufacture, supply, assembly of 
 such articles, equipment, supplies, materials, or parts 
 thereof, or servicing or processing in connection 
 therewith, or such management services as may be 
 necessary to enable the Administration to perform such 
 contracts;
 (C) to make an award to a small business 
 concern owned and controlled by socially and 
 economically disadvantaged individuals which 
 has completed its period of Program 
 Participation as prescribed by section 
 7(j)(15), if--
 (i) the contract will be awarded as 
 a result of an offer (including price) 
 submitted in response to a published 
 solicitation relating to a competition 
 conducted pursuant to subparagraph (D); 
 and
 (ii) the prospective contract 
 awardee was a Program Participant 
 eligible for award of the contract on 
 the date specified for receipt of 
 offers contained in the contract 
 solicitation; and
 (D)(i) A contract opportunity offered for award 
 pursuant to this subsection shall be awarded on the 
 basis of competition restricted to eligible Program 
 Participants if--
 (I) there is a reasonable expectation that 
 at least two eligible Program Participants will 
 submit offers and that award can be made at a 
 fair market price, and
 (II) the anticipated award price of the 
 contract (including options) will exceed 
 $7,000,000 in the case of a contract 
 opportunity assigned a standard industrial 
 classification code for manufacturing and 
 $3,000,000 (including options) in the case of 
 all other contract opportunities.
 (ii) The Associate Administrator for Minority Small 
 Business and Capital Ownership Development, on a 
 nondelegable basis, is authorized to approve a request 
 from an agency to award a contract opportunity under 
 this subsection on the basis of a competition 
 restricted to eligible Program Participants even if the 
 anticipated award price is not expected to exceed the 
 dollar amounts specified in clause (i)(II). Such 
 approvals shall be granted only on a limited basis.
 (2) Notwithstanding subsections (a) and (c) of the first 
section of the Act entitled ``An Act requiring contracts for 
the construction, alteration, and repair of any public building 
or public work of the United States to be accompanied by a 
performance bond protecting the United States and by additional 
bond for the protection of persons furnishing material and 
labor for the construction, alteration, or repair of said 
public buildings or public work,'' approved August 24, 1935 (49 
Stat. 793), no small business concern shall be required to 
provide any amount of any bond as a condition or receiving any 
subcontract under this subsection if the Administrator 
determines that such amount is inappropriate for such concern 
in performing such contract: Provided, That the Administrator 
shall exercise the authority granted by the paragraph only if--
 (A) the Administration takes such measures as it 
 deems appropriate for the protection of persons 
 furnishing materials and labor to a small business 
 receiving any benefit pursuant to this paragraph;
 (B) the Administration assists, insofar as 
 practicable, a small business receiving the benefits of 
 this paragraph to develop, within a reasonable period 
 of time, such financial and other capability as may be 
 needed to obtain such bonds as the Administration may 
 subsequently require for the successful completion of 
 any program conducted under the authority of this 
 subsection;
 (C) the Administration finds that such small 
 business is unable to obtain the requisite bond or 
 bonds from a surety and that no surety is willing to 
 issue such bond or bonds subject to the guarantee 
 provisions of Title IV of the Small Business Investment 
 Act of 1958; and
 (D) that small business is determined to be a 
 start-up concern and such concern has not been 
 participating in any program conducted under the 
 authority of this subsection for a period exceeding one 
 year.
The authority to waive bonds provided in this paragraph (2) may 
not be exercised after September 30, 1988.
 (3)(A) Any Program Participant selected by the 
Administration to perform a contract to be let noncompetitively 
pursuant to this subsection shall, when practicable, 
participate in any negotiation of the terms and conditions of 
such contract.
 (B)(i) For purposes of paragraph (1) a ``fair market 
price'' shall be determined by the agency offering the 
procurement requirement to the Administration, in accordance 
with clauses (ii) and (iii).
 (ii) The estimate of a current fair market price for a new 
procurement requirement, or a requirement that does not have a 
satisfactory procurement history, shall be derived from a price 
or cost analysis. Such analysis may take into account 
prevailing market conditions, commercial prices for similar 
products or services, or data obtained from any other agency. 
Such analysis shall consider such cost or pricing data as may 
be timely submitted by the Administration.
 (iii) The estimate of a current fair market price for a 
procurement requirement that has a satisfactory procurement 
history shall be based on recent award prices adjusted to 
insure comparability. Such adjustments shall take into account 
differences in quantities, performance times, plans, 
specifications, transportation costs, packaging and packing 
costs, labor and materials costs, overhead costs, and any other 
additional costs which may be deemed appropriate.
 (C) An agency offering a procurement requirement for 
potential award pursuant to this subsection shall, upon the 
request of the Administration, promptly submit to the 
Administration a written statement detailing the method used by 
the agency to estimate the current fair market price for such 
contract, identifying the information, studies, analyses, and 
other data used by such agency. The agency's estimate of the 
current fair market price (and any supporting data furnished to 
the Administration) shall not be disclosed to any potential 
offeror (other than the Administration).
 (D) A small business concern selected by the Administration 
to perform or negotiate a contract to be let pursuant to this 
subsection may request the Administration to protest the 
agency's estimate of the fair market price for such contract 
pursuant to paragraph (1)(A).
 (4)(A) For purposes of this section, the term ``socially 
and economically disadvantaged small business concern'' means 
any small business concern which meets the requirements of 
subparagraph (B) and--
 (i) which is at least 51 per centum unconditionally 
 owned by--
 (I) one or more socially and economically 
 disadvantaged individuals,
 (II) an economically disadvantaged Indian 
 tribe (or a wholly owned business entity of 
 such tribe), or
 (III) an economically disadvantaged Native 
 Hawaiian organization, or
 (ii) in the case of any publicly owned business, at 
 least 51 per centum of the stock of which is 
 unconditionally owned by--
 (I) one or more socially and economically 
 disadvantaged individuals,
 (II) an economically disadvantaged Indian 
 tribe (or a wholly owned business entity of 
 such tribe), or
 (III) an economically disadvantaged Native 
 Hawaiian organization.
 (B) A small business concern meets the requirements of this 
subparagraph if the management and daily business operations of 
such small business concern are controlled by one or more--
 (i) socially and economically disadvantaged 
 individuals described in subparagraph (A)(i)(I) or 
 subparagraph (A)(ii)(I),
 (ii) members of an economically disadvantaged 
 Indian tribe described in subparagraph (A)(i)(II) or 
 subparagraph (A)(ii)(II), or
 (iii) Native Hawaiian organizations described in 
 subparagraph (A)(i)(III) or subparagraph (A)(ii)(III).
 (C) Each Program Participant shall certify, on an annual 
basis, that it meets the requirements of this paragraph 
regarding ownership and control.
 (5) Socially disadvantaged individuals are those who have 
been subjected to racial or ethnic prejudice or cultural bias 
because of their identity as a member of a group without regard 
to their individual qualities.
 (6)(A) Economically disadvantaged individuals are those 
socially disadvantaged individuals whose ability to compete in 
the free enterprise system has been impaired due to diminished 
capital and credit opportunities as compared to others in the 
same business area who are not socially disadvantaged. In 
determining the degree of diminished credit and capital 
opportunities the Administration shall consider, but not be 
limited to, the assets and net worth of such socially 
disadvantaged individual. In determining the economic 
disadvantage of an Indian tribe, the Administration shall 
consider, where available, information such as the following: 
the per capita income of members of the tribe excluding 
judgment awards, the percentage of the local Indian population 
below the poverty level, and the tribe's access to capital 
markets.
 (B) Each Program Participant shall annually submit to the 
Administration--
 (i) a personal financial statement for each 
 disadvantaged owner;
 (ii) a record of all payments made by the Program 
 Participant to each of its disadvantaged owners or to 
 any person or entity affiliated with such owners; and
 (iii) such other information as the Administration 
 may deem necessary to make the determinations required 
 by this paragraph.
 (C)(i) Whenever, on the basis of information provided by a 
Program Participant pursuant to subparagraph (B) or otherwise, 
the Administration has reason to believe that the standards to 
establish economic disadvantage pursuant to subparagraph (A) 
have not been met, the Administration shall conduct a review to 
determine whether such Program Participant and its 
disadvantaged owners continue to be impaired in their ability 
to compete in the free enterprise system due to diminished 
capital and credit opportunities when compared to other 
concerns in the same business area, which are not socially 
disadvantaged.
 (ii) If the Administration determines, pursuant to such 
review, that a Program Participant and its disadvantaged owners 
are no longer economically disadvantaged for the purpose of 
receiving assistance under this subsection, the Program 
Participant shall be graduated pursuant to section 7(j)(10)(G) 
subject to the right to a hearing as provided for under 
paragraph (9).
 (D)(i) Whenever, on the basis of information provided by a 
Program Participant pursuant to subparagraph (B) or otherwise, 
the Administration has reason to believe that the amount of 
funds or other assets withdrawn from a Program Participant for 
the personal benefit of its disadvantaged owners or any person 
or entity affiliated with such owners may have been unduly 
excessive, the Administration shall conduct a review to 
determine whether such withdrawal of funds or other assets was 
detrimental to the achievement of the targets, objectives, and 
goals contained in such Program Participant's business plan.
 (ii) If the Administration determines, pursuant to such 
review, that funds or other assets have been withdrawn to the 
detriment of the Program Participant's business, the 
Administration shall--
 (I) initiate a proceeding to terminate the Program 
 Participant pursuant to section 7(j)(10)(F), subject to 
 the right to a hearing under paragraph (9); or
 (II) require an appropriate reinvestment of funds 
 or other assets and such other steps as the 
 Administration may deem necessary to ensure the 
 protection of the concern.
 (E) Whenever the Administration computes personal net worth 
for any purpose under this paragraph, it shall exclude from 
such computation--
 (i) the value of investments that disadvantaged 
 owners have in their concerns, except that such value 
 shall be taken into account under this paragraph when 
 comparing such concerns to other concerns in the same 
 business area that are owned by other than socially 
 disadvantaged persons;
 (ii) the equity that disadvantaged owners have in 
 their primary personal residences, except that any 
 portion of such equity that is attributable to unduly 
 excessive withdrawals from a Program Participant or a 
 concern applying for program participation shall be 
 taken into account.
 (7)(A) No small business concern shall be deemed eligible 
for any assistance pursuant to this subsection unless the 
Administration determines that with contract, financial, 
technical, and management support the small business concern 
will be able to perform contracts which may be awarded to such 
concern under paragraph (1)(C) and has reasonable prospects for 
success in competing in the private sector.
 (B) Limitations established by the Administration in its 
regulations and procedures restricting the award of contracts 
pursuant to this subsection to a limited number of standard 
industrial classification codes in an approved business plan 
shall not be applied in a manner that inhibits the logical 
business progression by a participating small business concern 
into areas of industrial endeavor where such concern has the 
potential for success.
 (8) All determinations made pursuant to paragraph (5) with 
respect to whether a group has been subjected to prejudice or 
bias shall be made by the Administrator after consultation with 
the Associate Administrator for Minority Small Business and 
Capital Ownership Development. All other determinations made 
pursuant to paragraphs (4), (5), (6), and (7) shall be made by 
the Associate Administrator for Minority Small Business and 
Capital Ownership Development under the supervision of, and 
responsible to, the Administrator.
 (9)(A) Subject to the provisions of subparagraph (E), the 
Administration, prior to taking any action described in 
subparagraph (B), shall provide the small business concern that 
is the subject of such action, an opportunity for a hearing on 
the record, in accordance with chapter 5 of title 5, United 
States Code.
 (B) The actions referred to in subparagraph (A) are--
 (i) denial of program admission based upon a 
 negative determination pursuant to paragraph (4), (5), 
 or (6);
 (ii) a termination pursuant to section 7(j)(10)(F);
 (iii) a graduation pursuant to section 7(j)(10)(G); 
 and
 (iv) the denial of a request to issue a waiver 
 pursuant to paragraph (21)(B).
 (C) The Administration's proposed action, in any proceeding 
conducted under the authority of this paragraph, shall be 
sustained unless it is found to be arbitrary, capricious, or 
contrary to law.
 (D) A decision rendered pursuant to this paragraph shall be 
the final decision of the Administration and shall be binding 
upon the Administration and those within its employ.
 (E) The adjudicator selected to preside over a proceeding 
conducted under the authority of this paragraph shall decline 
to accept jurisdiction over any matter that--
 (i) does not, on its face, allege facts that, if 
 proven to be true, would warrant reversal or 
 modification of the Administration's position;
 (ii) is untimely filed;
 (iii) is not filed in accordance with the rules of 
 procedure governing such proceedings; or
 (iv) has been decided by or is the subject of an 
 adjudication before a court of competent jurisdiction 
 over such matters.
 (F) Proceedings conducted pursuant to the authority of this 
paragraph shall be completed and a decision rendered, insofar 
as practicable, within ninety days after a petition for a 
hearing is filed with the adjudicating office.
 (10) The Administration shall develop and implement an 
outreach program to inform and recruit small business concerns 
to apply for eligibility for assistance under this subsection. 
Such program shall make a sustained and substantial effort to 
solicit applications for certification from small business 
concerns located in areas of concentrated unemployment or 
underemployment or within labor surplus areas and within States 
having relatively few Program Participants and from small 
disadvantaged business concerns in industry categories that 
have not substantially participated in the award of contracts 
let under the authority of this subsection.
 (11) To the maximum extent practicable, construction 
subcontracts awarded by the Administration pursuant to this 
subsection shall be awarded within the county or State where 
the work is to be performed.
 (12)(A) The Administration shall require each concern 
eligible to receive subcontracts pursuant to this subsection to 
annually prepare and submit to the Administration a capability 
statement. Such statement shall briefly describe such concern's 
various contract performance capabilities and shall contain the 
name and telephone number of the Business Opportunity 
Specialist assigned such concern. The Administration shall 
separate such statements by those primarily dependent upon 
local contract support and those primarily requiring a national 
marketing effort. Statements primarily dependent upon local 
contract support shall be disseminated to appropriate buying 
activities in the marketing area of the concern. The remaining 
statements shall be disseminated to the Directors of Small and 
Disadvantaged Business Utilization for the appropriate agencies 
who shall further distribute such statements to buying 
activities with such agencies that may purchase the types of 
items or services described on the capability statements.
 (B) Contracting activities receiving capability statements 
shall, within 60 days after receipt, contact the relevant 
Business Opportunity Specialist to indicate the number, type, 
and approximate dollar value of contract opportunities that 
such activities may be awarding over the succeeding 12-month 
period and which may be appropriate to consider for award to 
those concerns for which it has received capability statements.
 (C) Each executive agency reporting to the Federal 
Procurement Data System contract actions with an aggregate 
value in excess of $50,000,000 in fiscal year 1988, or in any 
succeeding fiscal year, shall prepare a forecast of expected 
contract opportunities or classes of contract opportunities for 
the next and succeeding fiscal years that small business 
concerns, including those owned and controlled by socially and 
economically disadvantaged individuals, are capable of 
performing. Such forecast shall be periodically revised during 
such year. To the extent such information is available, the 
agency forecasts shall specify:
 (i) The approximate number of individual contract 
 opportunities (and the number of opportunities within a 
 class).
 (ii) The approximate dollar value, or range of 
 dollar values, for each contract opportunity or class 
 of contract opportunities.
 (iii) The anticipated time (by fiscal year quarter) 
 for the issuance of a procurement request.
 (iv) The activity responsible for the award and 
 administration of the contract.
 (D) The head of each executive agency subject to the 
provisions of subparagraph (C) shall within 10 days of 
completion furnish such forecasts to--
 (i) the Director of the Office of Small and 
 Disadvantaged Business Utilization established pursuant 
 to section 15(k) for such agency; and
 (ii) the Administrator.
 (E) The information reported pursuant to subparagraph (D) 
may be limited to classes of items and services for which there 
are substantial annual purchases.
 (F) Such forecasts shall be available to small business 
concerns.
 (13) For purposes of this subsection, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other 
organized group or community of Indians, including any Alaska 
Native village or regional or village corporation (within the 
meaning of the Alaska Native Claims Settlement Act) which--
 (A) is recognized as eligible for the special 
 programs and services provided by the United States to 
 Indians because of their status as Indians, or
 (B) is recognized as such by the State in which 
 such tribe, band, nation, group, or community resides.
 (14) Limitations on subcontracting.--A concern may 
 not be awarded a contract under this subsection as a 
 small business concern unless the concern agrees to 
 satisfy the requirements of section 46.
 (15) For purposes of this subsection, the term ``Native 
Hawaiian Organization'' means any community service 
organization serving Native Hawaiians in the State of Hawaii 
which--
 (A) is a nonprofit corporation that has filed 
 articles of incorporation with the director (or the 
 designee thereof) of the Hawaii Department of Commerce 
 and Consumer Affairs, or any successor agency,
 (B) is controlled by Native Hawaiians, and
 (C) whose business activities will principally 
 benefit such Native Hawaiians.
 (16)(A) The Administration shall award sole source 
contracts under this section to any small business concern 
recommended by the procuring agency offering the contract 
opportunity if--
 (i) the Program Participant is determined to be a 
 responsible contractor with respect to performance of 
 such contract opportunity;
 (ii) the award of such contract would be consistent 
 with the Program Participant's business plan; and
 (iii) the award of the contract would not result in 
 the Program Participant exceeding the requirements 
 established by section 7(j)(10)(I).
 (B) To the maximum extent practicable, the Administration 
shall promote the equitable geographic distribution of sole 
source contracts awarded pursuant to this subsection.
 (17)(A) An otherwise responsible business concern that is 
in compliance with the requirements of subparagraph (B) shall 
not be denied the opportunity to submit and have considered its 
offer for any procurement contract, which contract has as its 
principal purpose the supply of a product to be let pursuant to 
this subsection, subsection (m), section 15(a), section 31, or 
section 36, solely because such concern is other than the 
actual manufacturer or processor of the product to be supplied 
under the contract.
 (B) To be in compliance with the requirements referred to 
in subparagraph (A), such a business concern shall--
 (i) be primarily engaged in the wholesale or retail 
 trade;
 (ii) be a small business concern under the 
 numerical size standard for the Standard Industrial 
 Classification Code assigned to the contract 
 solicitation on which the offer is being made;
 (iii) be a regular dealer, as defined pursuant to 
 section 35(a) of title 41, United States Code 
 (popularly referred to as the Walsh-Healey Public 
 Contracts Act), in the product to be offered the 
 Government or be specifically exempted from such 
 section by section 7(j)(13)(C); and
 (iv) represent that it will supply the product of a 
 domestic small business manufacturer or processor, 
 unless a waiver of such requirement is granted--
 (I) by the Administrator, after reviewing a 
 determination by the contracting officer that 
 no small business manufacturer or processor can 
 reasonably be expected to offer a product 
 meeting the specifications (including period 
 for performance) required of an offeror by the 
 solicitation; or
 (II) by the Administrator for a product (or 
 class of products), after determining that no 
 small business manufacturer or processor is 
 available to participate in the Federal 
 procurement market.
 (C) Limitation.--This paragraph shall not apply to 
 a contract that has as its principal purpose the 
 acquisition of services or construction.
 (18)(A) No person within the employ of the Administration 
shall, during the term of such employment and for a period of 
two years after such employment has been terminated, engage in 
any activity or transaction specified in subparagraph (B) with 
respect to any Program Participant during such person's term of 
employment, if such person participated personally (either 
directly or indirectly) in decision-making responsibilities 
relating to such Program Participant or with respect to the 
administration of any assistance provided to Program 
Participants generally under this subsection, section 7(j)(10), 
or section 7(a)(20).
 (B) The activities and transactions prohibited by 
subparagraph (A) include--
 (i) the buying, selling, or receiving (except by 
 inheritance) of any legal or beneficial ownership of 
 stock or any other ownership interest or the right to 
 acquire any such interest;
 (ii) the entering into or execution of any written 
 or oral agreement (whether or not legally enforceable) 
 to purchase or otherwise obtain any right or interest 
 described in clause (i); or
 (iii) the receipt of any other benefit or right 
 that may be an incident of ownership.
 (C)(i) The employees designated in clause (ii) shall 
annually submit a written certification to the Administration 
regarding compliance with the requirements of this paragraph.
 (ii) The employees referred to in clause (i) are--
 (I) regional administrators;
 (II) district directors;
 (III) the Associate Administrator for Minority 
 Small Business and Capital Ownership Development;
 (IV) employees whose principal duties relate to the 
 award of contracts or the provision of other assistance 
 pursuant to this subsection or section 7(j)(10); and
 (V) such other employees as the Administrator may 
 deem appropriate.
 (iii) Any present or former employee of the Administration 
who violates this paragraph shall be subject to a civil 
penalty, assessed by the Attorney General, that shall not 
exceed 300 per centum of the maximum amount of gain such 
employee realized or could have realized as a result of 
engaging in those activities and transactions prescribed by 
subparagraph (B).
 (iv) In addition to any other remedy or sanction provided 
for under law or regulation, any person who falsely certifies 
pursuant to clause (i) shall be subject to a civil penalty 
under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 
3801-3812).
 (19)(A) Any employee of the Administration who has 
authority to take, direct others to take, recommend, or approve 
any action with respect to any program or activity conducted 
pursuant to this subsection or section 7(j), shall not, with 
respect to any such action, exercise or threaten to exercise 
such authority on the basis of the political activity or 
affiliation of any party. Employees of the Administration shall 
expeditiously report to the Inspector General of the 
Administration any such action for which such employee's 
participation has been solicitated or directed.
 (B) Any employee who willfully and knowingly violates 
subparagraph (A) shall be subject to disciplinary action, which 
may consist of separation from service, reduction in grade, 
suspension, or reprimand.
 (C) Subparagraph (A) shall not apply to any action taken as 
a penalty or other enforcement of a violation of any law, rule, 
or regulation prohibiting or restricting political activity.
 (D) The prohibitions of subparagraph (A), and remedial 
measures provided for under subparagraphs (B) and (C) with 
regard to such prohibitions, shall be in addition to, and not 
in lieu of, any other prohibitions, measures or liabilities 
that may arise under any other provision of law.
 (20)(A) Small business concerns participating in the 
Program under section 7(j)(10) and eligible to receive 
contracts pursuant to this section shall semiannually report to 
their assigned Business Opportunity Specialist the following:
 (i) A listing of any agents, representatives, 
 attorneys, accountants, consultants, and other parties 
 (other than employees) receiving compensation to assist 
 in obtaining a Federal contract for such Program 
 Participant.
 (ii) The amount of compensation received by any 
 person listed under clause (i) during the relevant 
 reporting period and a description of the activities 
 performed in return for such compensation.
 (B) The Business Opportunity Specialist shall promptly 
review and forward such report to the Associate Administrator 
for Minority Small Business and Capital Ownership Development. 
Any report that raises a suspicion of improper activity shall 
be reported immediately to the Inspector General of the 
Administration.
 (C) The failure to submit a report pursuant to the 
requirements of this subsection and applicable regulations 
shall be considered ``good cause'' for the initiation of a 
termination proceeding pursuant to section 7(j)(10)(F).
 (21)(A) Subject to the provisions of subparagraph (B), a 
contract (including options) awarded pursuant to this 
subsection shall be performed by the concern that initially 
received such contract. Notwithstanding the provisions of the 
preceding sentence, if the owner or owners upon whom 
eligibility was based relinquish ownership or control of such 
concern, or enter into any agreement to relinquish such 
ownership or control, such contract or option shall be 
terminated for the convenience of the Government, except that 
no repurchase costs or other damages may be assessed against 
such concerns due solely to the provisions of this 
subparagraph.
 (B) The Administrator may, on a nondelegable basis, waive 
the requirements of subparagraph (A) only if one of the 
following conditions exist:
 (i) When it is necessary for the owners of the 
 concern to surrender partial control of such concern on 
 a temporary basis in order to obtain equity financing.
 (ii) The head of the contracting agency for which 
 the contract is being performed certifies that 
 termination of the contract would severely impair 
 attainment of the agency's program objectives or 
 missions;
 (iii) Ownership and control of the concern that is 
 performing the contract will pass to another small 
 business concern that is a program participant, but 
 only if the acquiring firm would otherwise be eligible 
 to receive the award directly pursuant to subsection 
 (a);
 (iv) The individuals upon whom eligibility was 
 based are no longer able to exercise control of the 
 concern due to incapacity or death; or
 (v) When, in order to raise equity capital, it is 
 necessary for the disadvantaged owners of the concern 
 to relinquish ownership of a majority of the voting 
 stock of such concern, but only if--
 (I) such concern has exited the Capital 
 Ownership Development Program;
 (II) the disadvantaged owners will maintain 
 ownership of the largest single outstanding 
 block of voting stock (including stock held by 
 affiliated parties); and
 (III) the disadvantaged owners will 
 maintain control of daily business operations.
 (C) The Administrator may waive the requirements of 
 subparagraph (A) if--
 (i) in the case of subparagraph (B) (i), 
 (ii) and (iv), he is requested to do so prior 
 to the actual relinquishment of ownership or 
 control; and
 (ii) in the case of subparagraph (B)(iii), 
 he is requested to do so as soon as possible 
 after the incapacity or death occurs.
 (D) Concerns performing contracts awarded pursuant to this 
subsection shall be required to notify the Administration 
immediately upon entering an agreement (either oral or in 
writing) to transfer all or part of its stock or other 
ownership interest to any other party.
 (E) Notwithstanding any other provision of law, for the 
purposes of determining ownership and control of a concern 
under this section, any potential ownership interests held by 
investment companies licensed under the Small Business 
Investment Act of 1958 shall be treated in the same manner as 
interests held by the individuals upon whom eligibility is 
based.
 (b) It shall also be the duty of the Administration and it 
is hereby empowered, whenever it determines such action is 
necessary--
 (1)(A) to provide--
 (i) technical, managerial, and 
 informational aids to small business concerns--
 (I) by advising and counseling on 
 matters in connection with Government 
 procurement and policies, principles, 
 and practices of good management;
 (II) by cooperating and advising 
 with--
 (aa) voluntary business, 
 professional, educational, and 
 other nonprofit organizations, 
 associations, and institutions 
 (except that the Administration 
 shall take such actions as it 
 determines necessary to ensure 
 that such cooperation does not 
 constitute or imply an 
 endorsement by the 
 Administration of the 
 organization or its products or 
 services, and shall ensure that 
 it receives appropriate 
 recognition in all printed 
 materials); and
 (bb) other Federal and 
 State agencies;
 (III) by maintaining a 
 clearinghouse for information on 
 managing, financing, and operating 
 small business enterprises; and
 (IV) by disseminating such 
 information, including through 
 recognition events, and by other 
 activities that the Administration 
 determines to be appropriate; and
 (ii) through cooperation with a profit-
 making concern (referred to in this paragraph 
 as a ``cosponsor''), training, information, and 
 education to small business concerns, except 
 that the Administration shall--
 (I) take such actions as it 
 determines to be appropriate to ensure 
 that--
 (aa) the Administration 
 receives appropriate 
 recognition and publicity;
 (bb) the cooperation does 
 not constitute or imply an 
 endorsement by the 
 Administration of any product 
 or service of the cosponsor;
 (cc) unnecessary promotion 
 of the products or services of 
 the cosponsor is avoided; and
 (dd) utilization of any one 
 cosponsor in a marketing area 
 is minimized; and
 (II) develop an agreement, executed 
 on behalf of the Administration by an 
 employee of the Administration in 
 Washington, the District of Columbia, 
 that provides, at a minimum, that--
 (aa) any printed material 
 to announce the cosponsorship 
 or to be distributed at the 
 cosponsored activity, shall be 
 approved in advance by the 
 Administration;
 (bb) the terms and 
 conditions of the cooperation 
 shall be specified;
 (cc) only minimal charges 
 may be imposed on any small 
 business concern to cover the 
 direct costs of providing the 
 assistance;
 (dd) the Administration may 
 provide to the cosponsorship 
 mailing labels, but not lists 
 of names and addresses of small 
 business concerns compiled by 
 the Administration;
 (ee) all printed materials 
 containing the names of both 
 the Administration and the 
 cosponsor shall include a 
 prominent disclaimer that the 
 cooperation does not constitute 
 or imply an endorsement by the 
 Administration of any product 
 or service of the cosponsor; 
 and
 (ff) the Administration 
 shall ensure that it receives 
 appropriate recognition in all 
 cosponsorship printed 
 materials.
 (B) To establish, conduct, and publicize, and to 
 recruit, select, and train volunteers for (and to enter 
 into contracts, grants, or cooperative agreements 
 therefor), volunteer programs, including a Service 
 Corps of Retired Executives (SCORE) and an Active Corps 
 of Executive (ACE) for the purposes of section 
 8(b)(1)(A) of this Act. To facilitate the 
 implementation of such volunteer programs the 
 Administration shall maintain at its headquarters and 
 pay the salaries, benefits, and expenses of a volunteer 
 and professional staff to manage and oversee the 
 program. Any such payments made pursuant to this 
 subparagraph shall be effective only to such extent or 
 in such amounts as are provided in advance in 
 appropriation Acts. Notwithstanding any other provision 
 of law, SCORE may solicit cash and in-kind 
 contributions from the private sector to be used to 
 carry out its functions under this Act, and may use 
 payments made by the Administration pursuant to this 
 subparagraph for such solicitation and the management 
 of the contributions received.
 (C) To allow any individual or group of persons 
 participating with it in furtherance of the purposes of 
 subparagraphs (A) and (B) to use the Administration's 
 office facilities and related material and services as 
 the Administration deems appropriate, including 
 clerical and stenographic service:
 (i) such volunteers, while carrying out 
 activities under section 8(b)(1) of this Act 
 shall be deemed Federal employees for the 
 purposes of the Federal tort claims provisions 
 in title 28, United States Code; and for the 
 purposes of subchapter I of chapter 81 of title 
 5, United States Code (relative to compensation 
 to Federal employees for work injuries) shall 
 be deemed civil employees of the United States 
 within the meaning of the term ``employee'' as 
 defined in section 8101 of title 5, United 
 States Code, and the provisions of that 
 subchapter shall apply except that in computing 
 compensation benefits for disability or death, 
 the monthly pay of a volunteer shall be deemed 
 that received under the entrance salary for a 
 grade GS-11 employee:
 (ii) the Administrator is authorized to 
 reimburse such volunteers for all necessary 
 out-of-pocket expenses incident to their 
 provision of services under this Act, or in 
 connection with attendance at meetings 
 sponsored by the Administration, or for the 
 cost of malpractice insurance, as the 
 Administrator shall determine, in accordance 
 with regulations which he or she shall 
 prescribe, and, while they are carrying out 
 such activities away from their homes or 
 regular places of business, for travel expenses 
 (including per diem in lieu of subsistence) as 
 authorized by section 5703 of title 5, United 
 States Code, for individuals serving without 
 pay; and
 (iii) such volunteers shall in no way 
 provide services to a client of such 
 Administration with a delinquent loan 
 outstanding, except upon a specific request 
 signed by such client for assistance in 
 connection with such matter.
 (D) Notwithstanding any other provision of law, no 
 payment for supportive services or reimbursement of 
 out-of-pocket expenses made to persons serving pursuant 
 to section 8(b)(1) of this Act shall be subject to any 
 tax or charge or be treated as wages or compensation 
 for the purposes of unemployment, disability, 
 retirement, public assistance, or similar benefit 
 payments, or minimum wage laws.
 (E) In carrying out its functions under 
 subparagraph (A), to make grants (including contracts 
 and cooperative agreements) to any public or private 
 institution of higher education for the establishment 
 and operation of a small business institute, which 
 shall be used to provide business counseling and 
 assistance to small business concerns through the 
 activities of students enrolled at the institution, 
 which students shall be entitled to receive educational 
 credits for their activities.
 (F) Notwithstanding any other provision of law and 
 pursuant to regulations which the Administrator shall 
 provide, counsel may be employed and counsel fees, 
 court costs, bail, and other expenses incidental to the 
 defense of volunteers may be paid in judicial or 
 Administrative proceedings arising directly out of the 
 performance of activities pursuant to section 8(b)(1) 
 of this Act, as amended (15 U.S.C. 637(b)(1)) to which 
 volunteers have been made parties.
 (G) In carrying out its functions under this Act 
 and to carry out the activities authorized by title IV 
 of the Women's Business Ownership Act of 1988, the 
 Administration is authorized to accept, in the name of 
 the Administration, and employ or dispose of in 
 furtherance of the purposes of this Act, any money or 
 property, real, personal, or mixed, tangible, or 
 intangible, received by gift, devise, bequest, or 
 otherwise; and, further, to accept gratuitous services 
 and facilities.
 (2) to make a complete inventory of all productive 
 facilities of small-business concerns or to arrange for 
 such inventory to be made by any other governmental 
 agency which has the facilities. In making any such 
 inventory, the appropriate agencies in the several 
 States may be requested to furnish an inventory of the 
 productive facilities of small-business concerns in 
 each respective State if such an inventory is available 
 or in prospect;
 (3) to coordinate and to ascertain the means by 
 which the productive capacity of small-business 
 concerns can be most effectively utilized;
 (4) to consult and cooperative with officers of the 
 Government having procurement or property disposal 
 powers, in order to utilize the potential productive 
 capacity of plants operated by small-business concerns;
 (5) to obtain information as to methods and 
 practices which Government prime contractors utilize in 
 letting subcontracts and to take action to encourage 
 the letting of subcontracts by prime contractors to 
 small-business concerns at prices and on conditions and 
 terms which are fair and equitable;
 (6) to determine within any industry the concerns, 
 firms, persons, corporations, partnerships, 
 cooperatives, or other business enterprises which are 
 to be designated ``small-business concerns'' for the 
 purpose of effectuating the provisions of this Act. To 
 carry out this purpose the Administrator, when 
 requested to do so, shall issue in response to each 
 such request an appropriate certificate certifying an 
 individual concern as a ``small-business concern'' in 
 accordance with the criteria expressed in this Act. Any 
 such certificate shall be subject to revocation when 
 the concern covered thereby ceases to be a ``small-
 business concern.'' Offices of the Government having 
 procurement or lending powers, or engaging in the 
 disposal of Federal property or allocating materials or 
 supplies, or promulgating regulations affecting the 
 distribution of materials or supplies, shall accept as 
 conclusive the Administration's determination as to 
 which enterprises are to be designated ``small-business 
 concerns'', as authorized and directed under this 
 paragraph;
 (7)(A) to certify to Government procurement 
 officers, and officers engaged in the sale and disposal 
 of Federal property, with respect to all elements of 
 responsibility, including, but not limited to, 
 capability, competency, capacity, credit, integrity, 
 perseverance, and tenacity, of any small business 
 concern or group of such concerns to receive and 
 perform a specific Government contract. A Government 
 procurement officer or an officer engaged in the sale 
 and disposal of Federal property may not, for any 
 reason specified in the preceding sentence, preclude 
 any small business concern or group of such concerns 
 from being awarded such contract without referring the 
 matter for a final disposition to the Administration.
 (B) if a Government procurement officer finds that 
 an otherwise qualified small business concern may be 
 ineligible due to the provisions of section 35(a) of 
 title 41, United States Code (the Walsh-Healey Public 
 Contracts Act), he shall notify the Administration in 
 writing of such finding. The Administration shall 
 review such finding and shall either dismiss it and 
 certify the small business concern to be an eligible 
 Government contractor for a specific Government 
 contract or if it concurs in the finding, forward the 
 matter to the Secretary of Labor for final disposition, 
 in which case the Administration may certify the small 
 business concern only if the Secretary of Labor finds 
 the small business concern not to be in violation.
 (C) in any case in which a small business concern 
 or group of such concerns has been certified by the 
 Administration pursuant to (A) or (B) to be a 
 responsible or eligible Government contractor as to a 
 specific Government contract, the officers of the 
 Government having procurement or property disposal 
 powers are directed to accept such certification as 
 conclusive, and shall let such Government contract to 
 such concern or group of concerns without requiring it 
 to meet any other requirement of responsibility or 
 eligibility. Notwithstanding the first sentence of this 
 subparagraph, the Administration may not establish an 
 exemption from referral or notification or refuse to 
 accept a referral or notification from a Government 
 procurement officer made pursuant to subparagraph (A) 
 or (B) of this paragraph, but nothing in this paragraph 
 shall require the processing of an application for 
 certification if the small business concern to which 
 the referral pertains declines to have the application 
 processed.
 (8) to obtain from any Federal department, 
 establishment, or agency engaged in procurement or in 
 the financing of procurement or production such reports 
 concerning the letting of contracts and subcontracts 
 and the making of loans to business concerns as it may 
 deem pertinent in carrying out its functions under this 
 Act;
 (9) to obtain from any Federal department, 
 establishment, or agency engaged in the disposal of 
 Federal property such reports concerning the 
 solicitation of bids, time of sale, or otherwise as it 
 may deem pertinent in carrying out its functions under 
 this Act;
 (10) to obtain from suppliers of materials 
 information pertaining to the method of filling orders 
 and the bases for allocating their supply, whenever it 
 appears that any small business is unable to obtain 
 materials from its normal sources;
 (11) to make studies and recommendations to the 
 appropriate Federal agencies to insure that a fair 
 proportion of the total purchases and contracts for 
 property and services for the Government be placed with 
 small-business enterprises, to insure that a fair 
 proportion of Government contacts for research and 
 development be placed with small-business concerns, to 
 insure that a fair proportion of the total sales of 
 Government property be made to small-business concerns, 
 and to insure a fair and equitable share of materials, 
 supplies, and equipment to small-business concerns;
 (12) to consult and cooperate with all Government 
 agencies for the purpose of insuring that small-
 business concerns shall receive fair and reasonable 
 treatment from such agencies;
 (13) to establish such advisory boards and 
 committees as may be necessary to achieve the purposes 
 of this Act and of the Small Business Investment Act of 
 1958; to call meetings of such boards and committees 
 from time to time; to pay the transportation expenses 
 and a per diem allowance in accordance with section 
 5703 of title 5, United States Code, to the members of 
 such boards and committees for travel and subsistence 
 expenses incurred at the request of the Administration 
 in connection with travel to points more than fifty 
 miles distant from the homes of such members in 
 attending the meetings of such boards and committees; 
 and to rent temporarily, within the District of 
 Columbia or elsewhere, such hotel or other 
 accommodations as are needed to facilitate the conduct 
 of such meetings;
 (14) to provide at the earliest practicable time 
 such information and assistance as may be appropriate, 
 including information concerning eligibility for loans 
 under section 7(b)(3), to local public agencies (as 
 defined in section 110(h) of the Housing Act of 1949) 
 and to small-business concerns to be displaced by 
 federally aided urban renewal projects in order to 
 assist such small-business concerns in reestablishing 
 their operations;
 (15) to disseminate, without regard to the 
 provisions of section 3204 of title 39, United States 
 Code, data and information, in such form as it shall 
 deem appropriate, to public agencies, private 
 organizations, and the general public;
 (16) to make studies of matters materially 
 affecting the competitive strength of small business, 
 and of the effect on small business of Federal laws, 
 programs, and regulations, and to make recommendations 
 to the appropriate Federal agency or agencies for the 
 adjustment of such programs and regulations to the 
 needs of small business; and
 (17) to make grants to, and enter into contracts 
 and cooperative agreements with, educational 
 institutions, private businesses, veterans' nonprofit 
 community-based organizations, and Federal, State, and 
 local departments and agencies for the establishment 
 and implementation of outreach programs for disabled 
 veterans (as defined in section 4211(3) of title 38, 
 United States Code), veterans, and members of a reserve 
 component of the Armed Forces.
 (c) [Reserved.]
 (d)(1) It is the policy of the United States that small 
business concerns, small business concerns owned and controlled 
by veterans, small business concerns owned and controlled by 
service-disabled veterans, qualified HUBZone small business 
concerns, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, and small 
business concerns owned and controlled by women, shall have the 
maximum practicable opportunity to participate in the 
performance of contracts let by any Federal agency, including 
contracts and subcontracts for subsystems, assemblies, 
components, and related services for major systems. It is 
further the policy of the United States that its prime 
contractors establish procedures to ensure the timely payment 
of amounts due pursuant to the terms of their subcontracts with 
small business concerns, small business concerns owned and 
controlled by veterans, small business concerns owned and 
controlled by service-disabled veterans, qualified HUBZone 
small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and controlled 
by women.
 (2) The clause stated in paragraph (3) shall be included in 
all contracts let by any Federal agency except any contract 
which--
 (A) does not exceed the simplified acquisition 
 threshold;
 (B) including all subcontracts under such contracts 
 will be performed entirely outside of any State, 
 territory, or possession of the United States, the 
 District of Columbia, or the Commonwealth of Puerto 
 Rico; or
 (C) is for services which are personal in nature.
 (3) The clause required by paragraph (2) shall be as 
follows:
 (A) It is the policy of the United States that 
 small business concerns, small business concerns owned 
 and controlled by veterans, small business concerns 
 owned and controlled by service-disabled veterans, 
 qualified HUBZone small business concerns, small 
 business concerns owned and controlled by socially and 
 economically disadvantaged individuals, and small 
 business concerns owned and controlled by women shall 
 have the maximum practicable opportunity to participate 
 in the performance of contracts let by any Federal 
 agency, including contracts and subcontracts for 
 subsystems, assemblies, components, and related 
 services for major systems. It is further the policy of 
 the United States that its prime contractors establish 
 procedures to ensure the timely payment of amounts due 
 pursuant to the terms of their subcontracts with small 
 business concerns, small business concerns owned and 
 controlled by veterans, small business concerns owned 
 and controlled by service-disabled veterans, qualified 
 HUBZone small business concerns, small business 
 concerns owned and controlled by socially and 
 economically disadvantaged individuals, and small 
 business concerns owned and controlled by women.
 (B) The contractor hereby agrees to carry out this 
 policy in the awarding of subcontracts to the fullest 
 extent consistent with the efficient performance of 
 this contract. The contractor further agrees to 
 cooperate in any studies or surveys as may be conducted 
 by the United States Small Business Administration or 
 the awarding agency of the United States as may be 
 necessary to determine the extent of the contractor's 
 compliance with this clause.
 (C) As used in this contract, the term ``small 
 business concern'' shall mean a small business as 
 defined pursuant to section 3 of the Small Business Act 
 and relevant regulations promulgated pursuant thereto. 
 The term ``small business concern owned and controlled 
 by socially and economically disadvantaged 
 individuals'' shall mean a small business concern--
 (i) which is at least 51 per centum owned 
 by one or more socially and economically 
 disadvantaged individuals; or, in the case of 
 any publicly owned business, at least 51 per 
 centum of the stock of which is owned by one or 
 more socially and economically disadvantaged 
 individuals; and
 (ii) whose management and daily business 
 operations are controlled by one or more of 
 such individuals.
 The contractor shall presume that socially and 
 economically disadvantaged individuals include Black 
 Americans, Hispanic Americans, Native Americans, Asian 
 Pacific Americans, and other minorities, or any other 
 individual found to be disadvantaged by the 
 Administration pursuant to section 8(a) of the Small 
 Business Act.
 (D) The term ``small business concern owned and 
 controlled by women'' shall mean a small business 
 concern--
 (i) which is at least 51 per centum owned 
 by one or more women; or, in the case of any 
 publicly owned business, at least 51 per centum 
 of the stock of which is owned by one or more 
 women; and
 (ii) whose management and daily business 
 operations are controlled by one or more women.
 (E) The term ``small business concern owned and 
 controlled by veterans'' shall mean a small business 
 concern--
 (i) which is at least 51 per centum owned 
 by one or more eligible veterans; or, in the 
 case of any publicly owned business, at least 
 51 per centum of the stock of which is owned by 
 one or more veterans; and
 (ii) whose management and daily business 
 operations are controlled by such veterans. The 
 contractor shall treat as veterans all 
 individuals who are veterans within the meaning 
 of the term under section 3(q) of the Small 
 Business Act.
 (F) Contractors acting in good faith may rely on 
 written representations by their subcontractors 
 regarding their status as either a small business 
 concern, small business concern owned and controlled by 
 veterans, small business concern owned and controlled 
 by service-disabled veterans, a small business concern 
 owned and controlled by socially and economically 
 disadvantaged individuals, or a small business concern 
 owned and controlled by women.
 (G) In this contract, the term ``qualified HUBZone 
 small business concern'' has the meaning given that 
 term in section 31(b).
 (H) In this contract, the term ``small business 
 concern owned and controlled by service-disabled 
 veterans'' has the meaning given that term in section 
 3(q).
 (4)(A) Each solicitation of an offer for a contract to be 
let by a Federal agency which is to be awarded pursuant to the 
negotiated method of procurement and which may exceed 
$1,000,000, in the case of a contract for the construction of 
any public facility, or $500,000, in the case of all other 
contracts, shall contain a clause notifying potential offering 
companies of the provisions of this subsection relating to 
contracts awarded pursuant to the negotiated method of 
procurement.
 (B) Before the award of any contract to be let, or any 
amendment or modification to any contract let, by any Federal 
agency which--
 (i) is to be awarded, or was let, pursuant to the 
 negotiated method of procurement,
 (ii) is required to include the clause stated in 
 paragraph (3),
 (iii) may exceed $1,000,000 in the case of a 
 contract for the construction of any public facility, 
 or $500,000 in the case of all other contracts, and
 (iv) which offers subcontracting possibilities,
the apparent successful offeror shall negotiate with the 
procurement authority a subcontracting plan which incorporates 
the information prescribed in paragraph (6). The subcontracting 
plan shall be included in and made a material part of the 
contract.
 (C) If, within the time limit prescribed in regulations of 
the Federal agency concerned, the apparent successful offeror 
fails to negotiate the subcontracting plan required by this 
paragraph, such offeror shall become ineligible to be awarded 
the contract. Prior compliance of the offeror with other such 
subcontracting plans shall be considered by the Federal agency 
in determining the responsibility of that offeror for the award 
of the contract.
 (D) No contract shall be awarded to any offeror unless the 
procurement authority determines that the plan to be negotiated 
by the offeror pursuant to this paragraph provides the maximum 
practicable opportunity for small business concerns, qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by veterans, small business concerns owned and 
controlled by service-disabled veterans, small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and small business concerns owned 
and controlled by women to participate in the performance of 
the contract.
 (E) Notwithstanding any other provisions of law, every 
Federal agency, in order to encourage subcontracting 
opportunities for small business concerns, small business 
concerns owned and controlled by veterans, small business 
concerns owned and controlled by service-disabled veterans, 
qualified HUBZone small business concerns, and small business 
concerns owned and controlled by the socially and economically 
disadvantaged individuals as defined in paragraph (3) of this 
subsection and for small business concerns owned and controlled 
by women, is hereby authorized to provide such incentives as 
such Federal agency may deem appropriate in order to encourage 
such subcontracting opportunities as may be commensurate with 
the efficient and economical performance of the contact: 
Provided, That, this subparagraph shall apply only to contracts 
let pursuant to the negotiated method of procurement.
 (F)(i) Each contract subject to the requirements of this 
paragraph or paragraph (5) shall contain a clause for the 
payment of liquidated damages upon a finding that a prime 
contractor has failed to make a good faith effort to comply 
with the requirements imposed on such contractor by this 
subsection.
 (ii) The contractor shall be afforded an opportunity to 
demonstrate a good faith effort regarding compliance prior to 
the contracting officer's final decision regarding the 
impositon of damages and the amount thereof. The final decision 
of a contracting officer regarding the contractor's obligation 
to pay such damages, or the amounts thereof, shall be subject 
to the Contract Disputes Act of 1978 (41 U.S.C. 601-613).
 (iii) Each agency shall ensure that the goals offered by 
the apparent successful bidder or offeror are attainable in 
relation to--
 (I) the subcontracting opportunities available to 
 the contractor, commensurate with the efficient and 
 economical performance of the contract;
 (II) the pool of eligible subcontractors available 
 to fulfill the subcontracting opportunities; and
 (III) the actual performance of such contractor in 
 fulfilling the subcontracting goals specified in prior 
 plans.
 (G) The following factors shall be designated by 
 the Federal agency as significant factors for purposes 
 of evaluating offers for a bundled contract where the 
 head of the agency determines that the contract offers 
 a significant opportunity for subcontracting:
 (i) A factor that is based on the rate 
 provided under the subcontracting plan for 
 small business participation in the performance 
 of the contract.
 (ii) For the evaluation of past performance 
 of an offeror, a factor that is based on the 
 extent to which the offeror attained applicable 
 goals for small business participation in the 
 performance of contracts.
 (5)(A) Each solicitation of a bid for any contract to be 
let, or any amendment or modification to any contract let, by 
any Federal agency which--
 (i) is to be awarded pursuant to the formal 
 advertising method of procurement,
 (ii) is required to contain the clause stated in 
 paragraph (3) of this subsection,
 (iii) may exceed $1,000,000 in the case of a 
 contract for the construction of any public facility, 
 or $500,000, in the case of all other contracts, and
 (iv) offers subcontracting possibilities,
shall contain a clause requiring any bidder who is selected to 
be awarded a contract to submit to the Federal agency concerned 
a subcontracting plan which incorporates the information 
prescribed in paragraph (6).
 (B) If, within the time limit prescribed in regulations of 
the Federal agency concerned, the bidder selected to be awarded 
the contract fails to submit the subcontracting plan required 
by this paragraph, such bidder shall become ineligible to be 
awarded the contract. Prior compliance of the bidder with other 
such subcontracting plans shall be considered by the Federal 
agency in determining the responsibility of such bidder for the 
award of the contract. The subcontracting plan of the bidder 
awarded the contract shall be included in and made a material 
part of the contract.
 (6) Each subcontracting plan required under paragraph (4) 
or (5) shall include--
 (A) percentage goals for the utilization as 
 subcontractors of small business concerns, small 
 business concerns owned and controlled by veterans, 
 small business concerns owned and controlled by 
 service-disabled veterans, qualified HUBZone small 
 business concerns, small business concerns owned and 
 controlled by socially and economically disadvantaged 
 individuals, and small business concerns owned and 
 controlled by women;
 (B) the name of an individual within the employ of 
 the offeror or bidder who will administer the 
 subcontracting program of the offeror or bidder and a 
 description of the duties of such individual;
 (C) a description of the efforts the offeror or 
 bidder will take to assure that small business 
 concerns, small business concerns owned and controlled 
 by veterans, small business concerns owned and 
 controlled by service-disabled veterans, qualified 
 HUBZone small business concerns, small business 
 concerns owned and controlled by socially and 
 economically disadvantaged individuals, and small 
 business concerns owned and controlled by women will 
 have an equitable opportunity to compete for 
 subcontracts;
 (D) assurances that the offeror or bidder will 
 include the clause required by paragraph (2) of this 
 subsection in all subcontracts which offer further 
 subcontracting opportunities, and that the offeror or 
 bidder will require all subcontractors (except small 
 business concerns) who receive subcontracts in excess 
 of $1,000,000 in the case of a contract for the 
 construction of any public facility, or in excess of 
 $500,000 in the case of all other contracts, to adopt a 
 plan similar to the plan required under paragraph (4) 
 or (5), and assurances at a minimum that the offeror or 
 bidder, and all subcontractors required to maintain 
 subcontracting plans pursuant to this paragraph, will--
 (i) review and approve subcontracting plans 
 submitted by their subcontractors;
 (ii) monitor subcontractor compliance with 
 their approved subcontracting plans;
 (iii) ensure that subcontracting reports 
 are submitted by their subcontractors when 
 required;
 (iv) acknowledge receipt of their 
 subcontractors' reports;
 (v) compare the performance of their 
 subcontractors to subcontracting plans and 
 goals; and
 (vi) discuss performance with 
 subcontractors when necessary to ensure their 
 subcontractors make a good faith effort to 
 comply with their subcontracting plans;
 (E) assurances that the offeror or bidder will 
 submit such periodic reports and cooperate in any 
 studies or surveys as may be required by the Federal 
 agency or the Administration in order to determine the 
 extent of compliance by the offeror or bidder with the 
 subcontracting plan;
 (F) a recitation of the types of records the 
 successful offeror or bidder will maintain to 
 demonstrate procedures which have been adopted to 
 comply with the requirements and goals set forth in 
 this plan, including the establishment of source lists 
 of small business concerns, small business concerns 
 owned and controlled by veterans, small business 
 concerns owned and controlled by service-disabled 
 veterans, qualified HUBZone small business concerns, 
 small business concerns owned and controlled by 
 socially and economically disadvantaged individuals, 
 and small business concerns owned and controlled by 
 women; and efforts to identify and award subcontracts 
 to such small business concerns;
 (G) a recitation of the types of records the 
 successful offeror or bidder will maintain to 
 demonstrate that procedures have been adopted to 
 substantiate the credit the successful offeror or 
 bidder will elect to receive under paragraph (16)(A);
 (H) a recitation of the types of records the 
 successful offeror or bidder will maintain to 
 demonstrate procedures which have been adopted to 
 ensure subcontractors at all tiers comply with the 
 requirements and goals set forth in the plan 
 established in accordance with subparagraph (D) of this 
 paragraph, including--
 (i) the establishment of source lists of 
 small business concerns, small business 
 concerns owned and controlled by veterans, 
 small business concerns owned and controlled by 
 service-disabled veterans, qualified HUBZone 
 small business concerns, small business 
 concerns owned and controlled by socially and 
 economically disadvantaged individuals, and 
 small business concerns owned and controlled by 
 women; and
 (ii) efforts to identify and award 
 subcontracts to such small business concerns; 
 and
 (I) a representation that the offeror or bidder 
 will--
 (i) make a good faith effort to 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; and
 (ii) provide to the contracting officer a 
 written explanation if the offeror or bidder 
 fails to acquire articles, equipment, supplies, 
 services, or materials or obtain the 
 performance of construction work as described 
 in clause (i).
 (7) The head of the contracting agency shall ensure 
 that--
 (A) the agency collects and reports data on 
 the extent to which contractors of the agency 
 meet the goals and objectives set forth in 
 subcontracting plans submitted pursuant to this 
 subsection; and
 (B) the agency periodically reviews data 
 collected and reported pursuant to subparagraph 
 (A) for the purpose of ensuring that such 
 contractors comply in good faith with the 
 requirements of this subsection and 
 subcontracting plans submitted by the 
 contractors pursuant to this subsection.
 (8) The provisions of paragraphs (4), (5), and (6) shall 
not apply to offerors or bidders who are small business 
concerns.
 (9) Material breach.--The failure of any contractor 
 or subcontractor to comply in good faith with--
 (A) the clause contained in paragraph (3) 
 of this subsection,
 (B) any plan required of such contractor 
 pursuant to the authority of this subsection to 
 be included in its contract or subcontract, or
 (C) assurances provided under paragraph 
 (6)(E),
 shall be a material breach of such contract or 
 subcontract and may be considered in any past 
 performance evaluation of the contractor.
 (10) Nothing contained in this subsection shall be 
construed to supersede the requirements of Defense Manpower 
Policy Number 4A (32A CFR Chap. 1) or any successor policy.
 (11) In the case of contracts within the provisions of 
paragraphs (4), (5), and (6), the Administration is authorized 
to--
 (A) assist Federal agencies and businesses in 
 complying with their responsibilities under the 
 provisions of this subsection, including the 
 formulation of subcontracting plans pursuant to 
 paragraph (4);
 (B) review any solicitation for any contract to be 
 let pursuant to paragraphs (4) and (5) to determine the 
 maximum practicable opportunity for small business 
 concerns, small business concerns owned and controlled 
 by veterans, small business concerns owned and 
 controlled by service-disabled veterans, qualified 
 HUBZone small business concerns, small business 
 concerns owned and controlled by socially and 
 economically disadvantaged individuals, and small 
 business concerns owned and controlled by women to 
 participate as subcontractors in the performance of any 
 contract resulting from any solicitation, and to submit 
 its findings, which shall be advisory in nature, to the 
 appropriate Federal agency; and
 (C) evaluate compliance with subcontracting plans 
 as a supplement to evaluations performed by the 
 contracting agency, either on a contract-by-contract 
 basis or, in the case of contractors having multiple 
 contracts, on an aggregate basis.
 (12) For purposes of determining the attainment of a 
subcontract utilization goal under any subcontracting plan 
entered into with any executive agency pursuant to this 
subsection, a mentor firm providing development assistance to a 
protege firm under the Mentor-Protege Program established under 
section 4902 of title 10, United States Code, shall be granted 
credit for such assistance in accordance with subsection (f) of 
such section.
 (13) 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 the Federal agency has paid the prime 
 contractor.
 (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).
 (C) Performance.--A contracting officer for a 
 covered contract shall consider the unjustified 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.--If the contracting officer 
 for a covered contract determines that a prime 
 contractor has a history of unjustified, untimely 
 payments to contractors, the contracting officer shall 
 record the identity of the contractor in accordance 
 with the regulations promulgated under subparagraph 
 (E).
 (E) Regulations.--Not later than 1 year after the 
 date of enactment of this paragraph, the Federal 
 Acquisition Regulatory Council established under 
 section 25(a) of the Office of Federal Procurement 
 Policy Act (41 U.S.C. 421(a)) shall amend the Federal 
 Acquisition Regulation issued under section 25 of such 
 Act to--
 (i) describe the circumstances under which 
 a contractor may be determined to have a 
 history of unjustified, untimely payments to 
 subcontractors;
 (ii) establish a process for contracting 
 officers to record the identity of a contractor 
 described in clause (i); and
 (iii) require the identity of a contractor 
 described in clause (i) to be incorporated in, 
 and made publicly available through, the 
 Federal Awardee Performance and Integrity 
 Information System, or any successor thereto.
 (14) An offeror for a covered contract that intends 
 to identify a small business concern as a potential 
 subcontractor in a bid or proposal for the contract, or 
 in a plan submitted pursuant to this subsection in 
 connection with the contract, shall notify the small 
 business concern prior to making such identification.
 (15) The Administrator shall establish a reporting 
 mechanism that allows a subcontractor or potential 
 subcontractor to report fraudulent activity or bad 
 faith by a contractor with respect to a subcontracting 
 plan submitted pursuant to this subsection.
 (16) Credit for certain small business concern 
 subcontractors.--
 (A) In general.--For purposes of 
 determining whether or not a prime contractor 
 has attained the percentage goals specified in 
 paragraph (6)--
 (i) if the subcontracting goals 
 pertain only to a single contract with 
 a Federal agency, the prime contractor 
 may elect to receive credit for small 
 business concerns performing as first 
 tier subcontractors or subcontractors 
 at any tier pursuant to the 
 subcontracting plans required under 
 paragraph (6)(D) in an amount equal to 
 the total dollar value of any 
 subcontracts awarded to such small 
 business concerns; and
 (ii) if the subcontracting goals 
 pertain to more than one contract with 
 one or more Federal agencies, or to one 
 contract with more than one Federal 
 agency, the prime contractor may only 
 receive credit for first tier 
 subcontractors that are small business 
 concerns.
 (B) Collection and review of data on 
 subcontracting plans.--The head of each 
 contracting agency shall ensure that the 
 agency--
 (i) collects and reports data on 
 the extent to which prime contractors 
 of the agency meet the goals and 
 objectives set forth in subcontracting 
 plans submitted pursuant to this 
 subsection; and
 (ii) periodically reviews data 
 collected and reported pursuant to 
 clause (i) for the purpose of ensuring 
 that such contractors comply in good 
 faith with the requirements of this 
 subsection.
 (C) Rule of construction.--Nothing in this 
 paragraph shall be construed to allow a Federal 
 agency to establish a goal for an number of 
 subcontracts with a subcontractor at any tier 
 for a prime contractor otherwise eligible to 
 receive credit under this paragraph.
 (17) Past performance ratings for certain small 
 business subcontractors.--Upon request by a small 
 business concern that performed as a first tier 
 subcontractor on a covered contract (as defined in 
 paragraph (13)(A)), the prime contractor for such 
 covered contract shall submit to such small business 
 concern a record of past performance for such small 
 business concern with respect to such covered contract. 
 If a small business concern elects to use such record 
 of past performance, a contracting officer shall 
 consider such record of past performance when 
 evaluating an offer for a prime contract made by such 
 small business concern.
 (e)(1) Except as provided in subsection (g)--
 (A) an executive agency intending to--
 (i) solicit bids or proposals for a 
 contract for property or services for a price 
 expected to exceed $25,000; or
 (ii) place an order, expected to exceed 
 $25,000, under a basic agreement, basis 
 ordering agreement, or similar arrangement,
 shall publish a notice described in subsection (f);
 (B) an executive agency intending to solicit bids 
 or proposals for a contract for property or services 
 shall post, for a period of not less than ten days, in 
 a public place at the contracting office issuing the 
 solicitation a notice of solicitation described in 
 subsection (f)--
 (i) in the case of an executive agency 
 other than the Department of Defense, if the 
 contract is for a price expected to exceed 
 $10,000, but not to exceed $25,000; and
 (ii) in the case of the Department of 
 Defense, if the contract is for a price 
 expected to exceed $5,000, but not to exceed 
 $25,000; and
 (C) an executive agency awarding a contract for 
 property or services for a price exceeding $100,000, or 
 placing an order referred to in clause (A)(ii) 
 exceeding $100,000, shall furnish for publication by 
 the Secretary of Commerce a notice announcing the award 
 or order if there is likely to be any subcontract under 
 such contract or order.
 (2)(A) A notice of solicitation required to be published 
under paragraph (1) may be published--
 (i) by electronic means that meet the accessibility 
 requirements under section 18(a)(7) of the Office of 
 Federal Procurement Policy Act (41 U.S.C. 416(a)(7)); 
 or
 (ii) by the Secretary of Commerce in the Commerce 
 Business Daily.
 (B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received 
under this subsection for publication by that means.
 (3) Whenever an executive agency is required by paragraph 
(1)(A) to publish a notice of solicitation, such executive 
agency may not--
 (A) issue the solicitation earlier than 15 days 
 after the date on which the notice is published; or
 (B) in the case of a contract or order estimated to 
 be greater than the simplified acquisition threshold, 
 establish a deadline for the submission of all bids or 
 proposals in response to the notice required by 
 paragraph (1)(A) that--
 (i) in the case of an order under a basic 
 agreement, basic ordering agreement, or similar 
 arrangement, is earlier than the date 30 days 
 after the date the notice required by paragraph 
 (1)(A)(ii) is published;
 (ii) in the case of a solicitation for 
 research and development, is earlier than the 
 date 45 days after the date the notice required 
 by paragraph (1)(A)(i) is published; or
 (iii) in any other case, is earlier than 
 the date 30 days after the date the 
 solicitation is issued.
 (f) Each notice of solicitation required by subparagraph 
(A) or (B) of subsection (e)(1) shall include--
 (1) an accurate description of the property or 
 services to be contracted for, which description (A) 
 shall not be unnecessarily restrictive of competition, 
 and (B) shall include, as appropriate, the agency 
 nomenclature, National Stock Number or other part 
 number, and a brief description of the item's form, 
 fit, or function, physical dimensions, predominant 
 material of manufacture, or similar information that 
 will assist a prospective contractor to make an 
 informed business judgment as to whether a copy of the 
 solicitation should be requested;
 (2) provisions that--
 (A) state whether the technical data 
 required to respond to the solicitation will 
 not be furnished as part of such solicitation, 
 and identify the source in the Government, if 
 any, from which the technical data may be 
 obtained; and
 (B) state whether an offeror, its product, 
 or service must meet a qualification 
 requirement in order to be eligible for award, 
 and, if so, identify the office from which a 
 qualification requirement may be obtained;
 (3) the name, business address, and telephone 
 number of the contracting officer;
 (4) a statement that all responsible sources may 
 submit a bid, proposal, or quotation (as appropriate) 
 which shall be considered by the agency;
 (5) in the case of a procurement using procedures 
 other than competitive procedures, a statement of the 
 reason justifying the use of such procedures and the 
 identity of the intended source; and
 (6) in the case of a contract in an amount 
 estimated to be greater than $25,000 but not greater 
 than the simplified acquisition threshold--
 (A) a description of the procedures to be 
 used in awarding the contract; and
 (B) a statement specifying the periods for 
 prospective offerors and the contracting 
 officer to take the necessary preaward and 
 award actions.
 (g)(1) A notice is not required under subsection (e)(1) 
if--
 (A) the proposed procurement is for an amount not 
 greater than the simplified acquisition threshold and 
 is to be conducted by--
 (i) using widespread electronic public 
 notice of the solicitation in a form that 
 allows convenient and universal user access 
 through a single, Government-wide point of 
 entry; and
 (ii) permitting the public to respond to 
 the solicitation electronically.
 (B) the notice would disclose the executive 
 agency's needs and the disclosure of such needs would 
 compromise the national security;
 (C) the proposed procurement would result from 
 acceptance of--
 (i) any unsolicited proposal that 
 demonstrates a unique and innovative research 
 concept and the publication of any notice of 
 such unsolicited research proposal would 
 disclose the originality of thought or 
 innovativeness of the proposal or would 
 disclose proprietary information associated 
 with the proposal; or
 (ii) a proposal submitted under section 9 
 of this Act;
 (D) the procurement is made against an order placed 
 under a requirements contract;
 (E) the procurement is made for perishable 
 subsistence supplies;
 (F) the procurement is for utility services, other 
 than telecommunication services, and only one source is 
 available; or
 (G) the procurement is for the services of an 
 expert for use in any litigation or dispute (including 
 preparation for any foreseeable litigation or dispute) 
 that involves or could involve the Federal Government 
 in any trial, hearing, or proceeding before any court, 
 administrative tribunal, or agency, or in any part of 
 an alternative dispute resolution process, whether or 
 not the expert is expected to testify.
 (2) The requirements of subsection (a)(1)(A) do not apply 
to any procurement under conditions described in paragraph (2), 
(3), (4), (5), or (7) of section 303(c) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253(c)) or 
paragraph (2), (3), (4), (5), and (7) of section 3204(a) of 
title 10, United States Code.
 (3) The requirements of subsection (a)(1)(A) shall not 
apply in the case of any procurement for which the head of the 
executive agency makes a determination in writing, after 
consultation with the Administrator for Federal Procurement 
Policy and the Administrator of the Small Business 
Administration, that it is not appropriate or reasonable to 
publish a notice before issuing a solicitation.
 (h)(1) An executive agency may not award a contract using 
procedures other than competitive procedures unless--
 (A) except as provided in paragraph (2), a written 
 justification for the use of such procedures has been 
 approved--
 (i) in the case of a contract for an amount 
 exceeding $100,000 (but equal to or less than 
 $1,000,000), by the advocate for competition 
 for the procuring activity (without further 
 delegation);
 (ii) in the case of a contract for an 
 amount exceeding $1,000,000 (but equal to or 
 less than $10,000,000), by the head of the 
 procuring activity or a delegate who, if a 
 member of the Armed Forces, is a general or 
 flag officer, or, if a civilian, is serving in 
 a position in grade GS-16 or above under the 
 General Schedule (or in a comparable or higher 
 position under another schedule); or
 (iii) in the case of a contract for an 
 amount exceeding $10,000,000, by the senior 
 procurement executive of the agency designated 
 pursuant to section 16(3) of the Office of 
 Federal Procurement Policy Act (41 U.S.C. 
 414(3)) (without further delegation); and
 (B) all other requirements applicable to the use of 
 such procedures under title III of the Federal Property 
 and Administrative Services Act of 1949 (41 U.S.C. 251 
 et sq.) or sections 3201 through 3205 of title 10, 
 United States Code, as appropriate, have been 
 satisfied.
 (2) The same exceptions as are provided in section 
303(f)(2) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(f)(2)) or paragraphs (3) and (4) of 
section 3204(e) of title 10, United States Code, shall apply 
with respect to the requirements of paragraph (1)(A) of this 
subsection in the same manner as such exceptions apply to the 
requirements of section 303(f)(1) of such Act or paragraphs (3) 
and (4) of section 3204(e) of such title, as appropriate.
 (i) An executive agency shall make available to any 
business concern, or the authorized representative of such 
concern, the complete solicitation package for any on-going 
procurement announced pursuant to a notice under subsection 
(e). An executive agency may require the payment of a fee, not 
exceeding the actual cost of duplication, for a copy of such 
package.
 (j) For purposes of this section, the term ``executive 
agency'' has the meaning provided such term in section 4(1) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
403(1)).
 (k) Notices of Subcontracting Opportunities.--
 (1) In general.--Notices of subcontracting 
 opportunities may be submitted for publication on the 
 appropriate Federal Web site (as determined by the 
 Administrator) by--
 (A) a business concern awarded a contract 
 by an executive agency subject to subsection 
 (e)(1)(C); and
 (B) a business concern that is a 
 subcontractor or supplier (at any tier) to such 
 contractor having a subcontracting opportunity 
 in excess of $10,000.
 (2) Content of notice.--The notice of a 
 subcontracting opportunity shall include--
 (A) a description of the business 
 opportunity that is comparable to the 
 description specified in paragraphs (1), (2), 
 (3), and (4) of subsection (f); and
 (B) the due date for receipt of offers.
 (l) Management Assistance for Small Businesses Affected by 
Military Operations.--
 (1) In general.--The Administration shall utilize, 
 as appropriate, its entrepreneurial development and 
 management assistance programs, including programs 
 involving State or private sector partners, to provide 
 business counseling and training to any small business 
 concern adversely affected by the deployment of units 
 of the Armed Forces of the United States in support of 
 a period of military conflict.
 (2) Definition of period of military conflict.--In 
 this subsection, the term ``period of military 
 conflict'' means--
 (A) a period of war declared by the 
 Congress;
 (B) a period of national emergency declared 
 by the Congress or by the President; or
 (C) a period of a contingency operation, as 
 defined in section 101(a) of title 10, United 
 States Code.
 (m) Procurement Program for Women-owned Small Business 
Concerns.--
 (1) Definitions.--In this subsection, the following 
 definitions apply:
 (A) Contracting officer.--The term 
 ``contracting officer'' has the meaning given 
 such term in section 27(f)(5) of the Office of 
 Federal Procurement Policy Act (41 U.S.C. 
 423(f)(5)).
 (B) Small business concern owned and 
 controlled by women.--The term ``small business 
 concern owned and controlled by women'' has the 
 meaning given such term in section 3(n), except 
 that ownership shall be determined without 
 regard to any community property law.
 (2) Authority to restrict competition.--In 
 accordance with this subsection, a contracting officer 
 may restrict competition for any contract for the 
 procurement of goods or services by the Federal 
 Government to small business concerns owned and 
 controlled by women, if--
 (A) each of the concerns is not less than 
 51 percent owned by one or more women who are 
 economically disadvantaged (and such ownership 
 is determined without regard to any community 
 property law);
 (B) the contracting officer has a 
 reasonable expectation that two or more small 
 business concerns owned and controlled by women 
 will submit offers for the contract;
 (C) the contract is for the procurement of 
 goods or services with respect to an industry 
 identified by the Administrator pursuant to 
 [paragraph (3)] paragraph (4);
 (D) in the estimation of the contracting 
 officer, the contract award can be made at a 
 fair and reasonable price; and
 (E) each of the concerns is certified by a 
 Federal agency, a State government, the 
 Administrator, or a national certifying entity 
 approved by the Administrator as a small 
 business concern owned and controlled by women.
 (3) Waiver.--With respect to a small business 
 concern owned and controlled by women, the 
 Administrator may waive subparagraph (2)(A) if the 
 Administrator determines that the concern is in an 
 industry in which small business concerns owned and 
 controlled by women are substantially underrepresented.
 (4) Identification of industries.--The 
 Administrator shall conduct a study to identify 
 industries in which small business concerns owned and 
 controlled by women are underrepresented with respect 
 to Federal procurement contracting.
 (5) Enforcement; penalties.--
 (A) Verification of eligibility.--In 
 carrying out this subsection, the Administrator 
 shall establish procedures relating to--
 (i) the filing, investigation, and 
 disposition by the Administration of 
 any challenge to the eligibility of a 
 small business concern to receive 
 assistance under this subsection 
 (including a challenge, filed by an 
 interested party, relating to the 
 veracity of a certification made or 
 information provided to the 
 Administration by a small business 
 concern under paragraph (2)(E)); and
 (ii) verification by the 
 Administrator of the accuracy of any 
 certification made or information 
 provided to the Administration by a 
 small business concern under paragraph 
 (2)(E).
 (B) Examinations.--The procedures 
 established under subparagraph (A) may provide 
 for program examinations (including random 
 program examinations) by the Administrator of 
 any small business concern making a 
 certification or providing information to the 
 Administrator under paragraph (2)(E).
 (C) Penalties.--In addition to the 
 penalties described in section 16(d), any small 
 business concern that is determined by the 
 Administrator to have misrepresented the status 
 of that concern as a small business concern 
 owned and controlled by women for purposes of 
 this subsection, shall be subject to--
 (i) section 1001 of title 18, 
 United States Code; and
 (ii) sections 3729 through 3733 of 
 title 31, United States Code.
 (6) Provision of data.--Upon the request of the 
 Administrator, the head of any Federal department or 
 agency shall promptly provide to the Administrator such 
 information as the Administrator determines to be 
 necessary to carry out this subsection.
 (7) Authority for sole source contracts for 
 economically disadvantaged small business concerns 
 owned and controlled by women.--A contracting officer 
 may award a sole source contract under this subsection 
 to any small business concern owned and controlled by 
 women described in paragraph (2)(A) and certified under 
 paragraph (2)(E) if--
 (A) such concern is determined to be a 
 responsible contractor with respect to 
 performance of the contract opportunity and the 
 contracting officer does not have a reasonable 
 expectation that 2 or more businesses described 
 in paragraph (2)(A) will submit offers;
 (B) the anticipated award price of the 
 contract (including options) will not exceed--
 (i) $7,000,000, in the case of a 
 contract opportunity assigned a 
 standard industrial classification code 
 for manufacturing; or
 (ii) $4,000,000, in the case of any 
 other contract opportunity; and
 (C) in the estimation of the contracting 
 officer, the contract award can be made at a 
 fair and reasonable price.
 (8) Authority for sole source contracts for small 
 business concerns owned and controlled by women in 
 substantially underrepresented industries.--A 
 contracting officer may award a sole source contract 
 under this subsection to any small business concern 
 owned and controlled by women certified under paragraph 
 (2)(E) that is in an industry in which small business 
 concerns owned and controlled by women are 
 substantially underrepresented (as determined by the 
 Administrator under paragraph (3)) if--
 (A) such concern is determined to be a 
 responsible contractor with respect to 
 performance of the contract opportunity and the 
 contracting officer does not have a reasonable 
 expectation that 2 or more businesses in an 
 industry that has received a waiver under 
 paragraph (3) will submit offers;
 (B) the anticipated award price of the 
 contract (including options) will not exceed--
 (i) $7,000,000, in the case of a 
 contract opportunity assigned a 
 standard industrial classification code 
 for manufacturing; or
 (ii) $4,000,000, in the case of any 
 other contract opportunity; and
 (C) in the estimation of the contracting 
 officer, the contract award can be made at a 
 fair and reasonable price.
 (9) Report.--Not later than May 1, 2024, and 
 annually thereafter, the Administrator shall submit to 
 the Committee on Small Business of the House of 
 Representatives and the Committee on Small Business and 
 Entrepreneurship of the Senate a report on small 
 business concerns owned and controlled by women. Such 
 report shall include, for the fiscal year preceding the 
 date of the report, the following:
 (A) The number of applications for 
 certification as a small business concern owned 
 and controlled by women that have sufficient 
 information for the Administrator to make a 
 certification determination, disaggregated by--
 (i) the number of applications 
 certified;
 (ii) the number of applications 
 denied; and
 (iii) the number of applications 
 for which a determination has not been 
 made.
 (B) The number of concerns certified as 
 small business concerns owned and controlled by 
 women by a national certifying entity approved 
 by the Administrator.
 (C) The amount of fees, if any, charged by 
 each national certifying entity for such 
 certification.
 (D) The total dollar amount and total 
 percentage of prime contracts awarded to small 
 business concerns owned and controlled by women 
 pursuant to paragraph (2) or pursuant to a 
 waiver granted under paragraph (3).
 (E) The total dollar amount and total 
 percentage of prime contracts awarded to small 
 business concerns owned and controlled by women 
 pursuant to paragraphs (7) and (8).
 (F) With respect to a contract incorrectly 
 awarded pursuant to this subsection because it 
 was awarded based on an industry in which small 
 business concerns owned and controlled by women 
 are not underrepresented--
 (i) the number of such contracts;
 (ii) the Federal agencies that 
 issued such contracts; and
 (iii) any steps taken by 
 Administrator to train the personnel of 
 such Federal agency on the use of the 
 authority provided under this 
 subsection.
 (G) With respect to an examination 
 described in paragraph (5)(B)--
 (i) the number of examinations due 
 because of recertification requirements 
 and the actual number of such 
 examinations conducted; and
 (ii) the number of examinations 
 conducted for any other reason.
 (H) The number of small business concerns 
 owned and controlled by women that were found 
 to be ineligible to be awarded a contract under 
 this subsection as a result of an examination 
 conducted pursuant to paragraph (5)(B) or 
 failure to request an examination pursuant to 
 section 127.400 of title 13, Code of Federal 
 Regulations (or a successor rule).
 (I) The number of small business concerns 
 owned and controlled by women that were 
 decertified.
 (J) The total number of small business 
 concerns owned and controlled by women.
 (K) Any other information the Administrator 
 determines necessary.
 (n) Business Grants and Cooperative Agreements.--
 (1) In general.--In accordance with this 
 subsection, the Administrator may make grants to and 
 enter into cooperative agreements with any coalition of 
 private entities, public entities, or any combination 
 of private and public entities--
 (A) to expand business-to-business 
 relationships between large and small 
 businesses; and
 (B) to provide businesses, directly or 
 indirectly, with online information and a 
 database of companies that are interested in 
 mentor-protege programs or community-based, 
 statewide, or local business development 
 programs.
 (2) Matching requirement.--Subject to subparagraph 
 (B), the Administrator may make a grant to a coalition 
 under paragraph (1) only if the coalition provides for 
 activities described in paragraph (1)(A) or (1)(B) an 
 amount, either in kind or in cash, equal to the grant 
 amount.
 (3) Authorization of appropriations.--There is 
 authorized to be appropriated to carry out this 
 subsection $6,600,000, to remain available until 
 expended, for each of fiscal years 2001 through 2006.

 * * * * * * *

SEC. 31. HUBZONE PROGRAM.

 (a) In General.--There is established within the 
Administration a program (to be known as the HUBZone program) 
to be carried out by the Administrator to provide for Federal 
contracting assistance, including promoting economic 
development in economically distressed areas (as defined in 
section 7(m)(11)), to qualified HUBZone small business concerns 
in accordance with this section.
 (b) Definitions Relating to HUBZones.--In this section:
 (1) Historically underutilized business zone.--The 
 terms ``historically underutilized business zone'' or 
 ``HUBZone'' mean any area located within 1 or more--
 (A) qualified census tracts;
 (B) qualified nonmetropolitan counties;
 (C) lands within the external boundaries of 
 an Indian reservation;
 (D) redesignated areas;
 (E) base closure areas;
 (F) qualified disaster areas; or
 (G) a Governor-designated covered area.
 (2) Hubzone small business concern.--The term 
 ``HUBZone small business concern'' means--
 (A) a small business concern that is at 
 least 51 percent owned and controlled by United 
 States citizens;
 (B) a small business concern that is--
 (i) an Alaska Native Corporation 
 owned and controlled by Natives (as 
 determined pursuant to section 29(e)(1) 
 of the Alaska Native Claims Settlement 
 Act (43 U.S.C. 1626(e)(1))); or
 (ii) a direct or indirect 
 subsidiary corporation, joint venture, 
 or partnership of an Alaska Native 
 Corporation qualifying pursuant to 
 section 29(e)(1) of the Alaska Native 
 Claims Settlement Act (43 U.S.C. 
 1626(e)(1)), if that subsidiary, joint 
 venture, or partnership is owned and 
 controlled by Natives (as determined 
 pursuant to section 29(e)(2)) of the 
 Alaska Native Claims Settlement Act (43 
 U.S.C. 1626(e)(2)));
 (C) a small business concern--
 (i) that is wholly owned by one or 
 more Indian tribal governments, or by a 
 corporation that is wholly owned by one 
 or more Indian tribal governments; or
 (ii) that is owned in part by one 
 or more Indian tribal governments, or 
 by a corporation that is wholly owned 
 by one or more Indian tribal 
 governments, if all other owners are 
 either United States citizens or small 
 business concerns;
 (D) a small business concern--
 (i) that is wholly owned by one or 
 more Native Hawaiian Organizations (as 
 defined in section 8(a)(15)), or by a 
 corporation that is wholly owned by one 
 or more Native Hawaiian Organizations; 
 or
 (ii) that is owned in part by one 
 or more Native Hawaiian Organizations, 
 or by a corporation that is wholly 
 owned by one or more Native Hawaiian 
 Organizations, if all other owners are 
 either United States citizens or small 
 business concerns;
 (E) a small business concern that is--
 (i) wholly owned by a community 
 development corporation that has 
 received financial assistance under 
 part 1 of subchapter A of the Community 
 Economic Development Act of 1981 (42 
 U.S.C. 9805 et seq.); or
 (ii) owned in part by one or more 
 community development corporations, if 
 all other owners are either United 
 States citizens or small business 
 concerns; or
 (F) a small business concern that is--
 (i) a small agricultural 
 cooperative organized or incorporated 
 in the United States;
 (ii) wholly owned by 1 or more 
 small agricultural cooperatives 
 organized or incorporated in the United 
 States; or
 (iii) owned in part by 1 or more 
 small agricultural cooperatives 
 organized or incorporated in the United 
 States, if all owners are small 
 business concerns or United States 
 citizens.
 (3) Qualified areas.--
 (A) Qualified census tract.--
 (i) In general.--The term 
 ``qualified census tract'' means a 
 census tract that is covered by the 
 definition of ``qualified census 
 tract'' in section 42(d)(5)(B)(ii) of 
 the Internal Revenue Code of 1986 and 
 that is reflected in an online tool 
 prepared by the Administrator described 
 under subsection (d)(7).
 (ii) Exception.--For any 
 metropolitan statistical area in the 
 Commonwealth of Puerto Rico, the term 
 ``qualified census tract'' has the 
 meaning given that term in section 
 42(d)(5)(B)(ii) of the Internal Revenue 
 Code of 1986 as applied without regard 
 to subclause (II) of such section and 
 that is reflected in the online tool 
 described under clause (i), except that 
 this clause shall only apply--
 (I) 10 years after the date 
 that the Administrator 
 implements this clause, or
 (II) the date on which the 
 Financial Oversight and 
 Management Board for the 
 Commonwealth of Puerto Rico 
 created by the Puerto Rico 
 Oversight, Management, and 
 Economic Stability Act ceases 
 to exist,
 whichever event occurs first.
 (B) Qualified nonmetropolitan county.--The 
 term ``qualified nonmetropolitan county'' means 
 any county that is reflected in the online tool 
 described under subparagraph (A)(i) and--
 (i) that was not located in a 
 metropolitan statistical area (as 
 defined in section 143(k)(2)(B) of the 
 Internal Revenue Code of 1986) at the 
 time of the most recent census taken 
 for purposes of selecting qualified 
 census tracts under section 
 42(d)(5)(B)(ii) of the Internal Revenue 
 Code of 1986; and
 (ii) in which--
 (I) the median household 
 income is less than 80 percent 
 of the State median household 
 income, based on a 5-year 
 average of the available data 
 from the Bureau of the Census 
 of the Department of Commerce;
 (II) the unemployment rate 
 is not less than 140 percent of 
 the average unemployment rate 
 for the United States or for 
 the State in which such county 
 is located, whichever is less, 
 based on a 5-year average of 
 the available data from the 
 Secretary of Labor; or
 (III) there is located a 
 difficult development area, as 
 designated by the Secretary of 
 Housing and Urban Development 
 in accordance with section 
 42(d)(5)(B)(iii) of the 
 Internal Revenue Code of 1986, 
 within Alaska, Hawaii, or any 
 territory or possession of the 
 United States outside the 48 
 contiguous States.
 (C) Redesignated area.--The term 
 ``redesignated area'' means any census tract 
 that ceases to be qualified under subparagraph 
 (A) and any nonmetropolitan county that ceases 
 to be qualified under subparagraph (B) for a 
 period of 3 years after the date on which the 
 census tract or nonmetropolitan county ceased 
 to be so qualified.
 (D) Base closure area.--
 (i) In general.--Subject to clause 
 (ii), the term ``base closure area'' 
 means--
 (I) lands within the 
 external boundaries of a 
 military installation that were 
 closed through a privatization 
 process under the authority 
 of--
 (aa) the Defense 
 Base Closure and 
 Realignment Act of 1990 
 (part A of title XXIX 
 of division B of Public 
 Law 101-510; 10 U.S.C. 
 2687 note);
 (bb) title II of 
 the Defense 
 Authorization 
 Amendments and Base 
 Closure and Realignment 
 Act (Public Law 100-
 526; 10 U.S.C. 2687 
 note);
 (cc) section 2687 
 of title 10, United 
 States Code; or
 (dd) any other 
 provision of law 
 authorizing or 
 directing the Secretary 
 of Defense or the 
 Secretary of a military 
 department to dispose 
 of real property at the 
 military installation 
 for purposes relating 
 to base closures of 
 redevelopment, while 
 retaining the authority 
 to enter into a 
 leaseback of all or a 
 portion of the property 
 for military use;
 (II) the census tract or 
 nonmetropolitan county in which 
 the lands described in 
 subclause (I) are wholly 
 contained;
 (III) a census tract or 
 nonmetropolitan county the 
 boundaries of which intersect 
 the area described in subclause 
 (I); and
 (IV) a census tract or 
 nonmetropolitan county the 
 boundaries of which are 
 contiguous to the area 
 described in subclause (II) or 
 subclause (III).
 (ii) Limitation.--A census tract or 
 nonmetropolitan county described in 
 clause (i) shall be considered to be a 
 base closure area for a period 
 beginning on the date on which the 
 Administrator designates such census 
 tract or nonmetropolitan county as a 
 base closure area and ending on the 
 date on which the base closure area 
 ceases to be a qualified census tract 
 under subparagraph (A) or a qualified 
 nonmetropolitan county under 
 subparagraph (B) in accordance with the 
 online tool prepared by the 
 Administrator described under 
 subsection (d)(7), except that such 
 period may not be less than 8 years.
 (iii) Definitions.--In this 
 subparagraph:
 (I) Census tract.--The term 
 ``census tract'' means a census 
 tract delineated by the United 
 States Bureau of the Census in 
 the most recent decennial 
 census that is not located in a 
 nonmetropolitan county and does 
 not otherwise qualify as a 
 qualified census tract.
 (II) Nonmetropolitan 
 county.--The term 
 ``nonmetropolitan county'' 
 means a county that was not 
 located in a metropolitan 
 statistical area (as defined in 
 section 143(k)(2)(B) of the 
 Internal Revenue Code of 1986) 
 at the time of the most recent 
 census taken for purposes of 
 selecting qualified census 
 tracts and does not otherwise 
 qualify as a qualified 
 nonmetropolitan county.
 (E) Qualified disaster area.--
 (i) In general.--Subject to clause 
 (ii), the term ``qualified disaster 
 area'' means any census tract or 
 nonmetropolitan county located in an 
 area where a major disaster has 
 occurred or an area in which a 
 catastrophic incident has occurred if 
 such census tract or nonmetropolitan 
 county ceased to be qualified under 
 subparagraph (A) or (B), as applicable, 
 during the period beginning 5 years 
 before the date on which the President 
 declared the major disaster or the 
 catastrophic incident occurred.
 (ii) Duration.--A census tract or 
 nonmetropolitan county shall be 
 considered to be a qualified disaster 
 area under clause (i) only for the 
 period of time ending on the date the 
 area ceases to be a qualified census 
 tract under subparagraph (A) or a 
 qualified nonmetropolitan county under 
 subparagraph (B), in accordance with 
 the online tool prepared by the 
 Administrator described under 
 subsection (d)(7) and beginning--
 (I) in the case of a major 
 disaster, on the date on which 
 the President declared the 
 major disaster for the area in 
 which the census tract or 
 nonmetropolitan county, as 
 applicable, is located; or
 (II) in the case of a 
 catastrophic incident, on the 
 date on which the catastrophic 
 incident occurred in the area 
 in which the census tract or 
 nonmetropolitan county, as 
 applicable, is located.
 (iii) Definitions.--In this 
 subparagraph:
 (I) Major disaster.--The 
 term ``major disaster'' means a 
 major disaster declared by the 
 President under section 401 of 
 the Robert T. Stafford Disaster 
 Relief and Emergency Assistance 
 Act (42 U.S.C. 5170).
 (II) Other definitions.--
 The terms ``census tract'' and 
 ``nonmetropolitan county'' have 
 the meanings given such terms 
 in subparagraph (D)(iii).
 (F) Governor-designated covered area.--
 (i) In general.--A ``Governor-
 designated covered area'' means a 
 covered area that the Administrator has 
 designated by approving a petition 
 described under clause (ii).
 (ii) Petition.--For a covered area 
 to receive a designation as a Governor-
 designated covered area, the Governor 
 of the State in which the covered area 
 is wholly contained shall include such 
 covered area in a petition to the 
 Administrator requesting such a 
 designation. In reviewing a request for 
 designation included in such a 
 petition, the Administrator may 
 consider--
 (I) the potential for job 
 creation and investment in the 
 covered area;
 (II) the demonstrated 
 interest of small business 
 concerns in the covered area to 
 be designated as a Governor-
 designated covered area;
 (III) how State and local 
 government officials have 
 incorporated the covered area 
 into an economic development 
 strategy; and
 (IV) if the covered area 
 was a HUBZone before becoming 
 the subject of the petition, 
 the impact on the covered area 
 if the Administrator did not 
 approve the petition.
 (iii) Limitations.--Each calendar 
 year, a Governor may submit not more 
 than 1 petition described under clause 
 (ii). Such petition shall include all 
 covered areas in a State for which the 
 Governor seeks designation as a 
 Governor-designated covered area, 
 except that the total number of covered 
 areas included in such petition may not 
 exceed 10 percent of the total number 
 of covered areas in the State.
 (iv) Certification.--If the 
 Administrator grants a petition 
 described under clause (ii), the 
 Governor of the Governor-designated 
 covered area shall, not less frequently 
 than annually, submit data to the 
 Administrator certifying that each 
 Governor-designated covered area 
 continues to meet the requirements of 
 clause (v)(I).
 (v) Definitions.--In this 
 subparagraph:
 (I) Covered area.--The term 
 ``covered area'' means an area 
 in a State--
 (aa) that is 
 located outside of an 
 urbanized area, as 
 determined by the 
 Bureau of the Census;
 (bb) with a 
 population of not more 
 than 50,000; and
 (cc) for which the 
 average unemployment 
 rate is not less than 
 120 percent of the 
 average unemployment 
 rate of the United 
 States or of the State 
 in which the covered 
 area is located, 
 whichever is less, 
 based on the most 
 recent data available 
 from the American 
 Community Survey 
 conducted by the Bureau 
 of the Census.
 (II) Governor.--The term 
 ``Governor'' means the chief 
 executive of a State.
 (III) State.--The term 
 ``State'' means each of the 
 several States, the District of 
 Columbia, the Commonwealth of 
 Puerto Rico, the United States 
 Virgin Islands, Guam, the 
 Commonwealth of the Northern 
 Mariana Islands, and American 
 Samoa.
 (4) Qualified HUBZone small business concern.--The 
 term ``qualified HUBZone small business concern'' means 
 a HUBZone small business concern that has been 
 certified by the Administrator in accordance with the 
 procedures described in this section.
 (5) Native american small business concerns.--
 (A) Alaska native corporation.--The term 
 ``Alaska Native Corporation'' has the same 
 meaning as the term ``Native Corporation'' in 
 section 3 of the Alaska Native Claims 
 Settlement Act (43 U.S.C. 1602).
 (B) Alaska native village.--The term 
 ``Alaska Native Village'' has the same meaning 
 as the term ``Native village'' in section 3 of 
 the Alaska Native Claims Settlement Act (43 
 U.S.C. 1602).
 (C) Indian reservation.--The term ``Indian 
 reservation''--
 (i) has the same meaning as the 
 term ``Indian country'' in section 1151 
 of title 18, United States Code, except 
 that such term does not include--
 (I) any lands that are 
 located within a State in which 
 a tribe did not exercise 
 governmental jurisdiction on 
 the date of the enactment of 
 this paragraph, unless that 
 tribe is recognized after that 
 date of the enactment by either 
 an Act of Congress or pursuant 
 to regulations of the Secretary 
 of the Interior for the 
 administrative recognition that 
 an Indian group exists as an 
 Indian tribe (part 83 of title 
 25, Code of Federal 
 Regulations); and
 (II) lands taken into trust 
 or acquired by an Indian tribe 
 after the date of the enactment 
 of this paragraph if such lands 
 are not located within the 
 external boundaries of an 
 Indian reservation or former 
 reservation or are not 
 contiguous to the lands held in 
 trust or restricted status on 
 that date of the enactment; and
 (ii) in the State of Oklahoma, 
 means lands that--
 (I) are within the 
 jurisdictional areas of an 
 Oklahoma Indian tribe (as 
 determined by the Secretary of 
 the Interior); and
 (II) are recognized by the 
 Secretary of the Interior as 
 eligible for trust land status 
 under part 151 of title 25, 
 Code of Federal Regulations (as 
 in effect on the date of the 
 enactment of this paragraph).
 (6) Agricultural commodity.--The term 
 ``agricultural commodity'' has the same meaning as in 
 section 102 of the Agricultural Trade Act of 1978 (7 
 U.S.C. 5602).
 (c) Eligible Contracts.--
 (1) Definitions.--In this subsection--
 (A) the term ``contracting officer'' has 
 the meaning given that term in section 27(f)(5) 
 of the Office of Federal Procurement Policy Act 
 (41 U.S.C. 423(f)(5)); and
 (B) the term ``full and open competition'' 
 has the meaning given that term in section 4 of 
 the Office of Federal Procurement Policy Act 
 (41 U.S.C. 403).
 (2) Authority of contracting officer.--
 (A) Sole source contracts.--A contracting 
 officer may award sole source contracts under 
 this section to any qualified HUBZone small 
 business concern, if--
 (i) the qualified HUBZone small 
 business concern is determined to be a 
 responsible contractor with respect to 
 performance of such contract 
 opportunity, and the contracting 
 officer does not have a reasonable 
 expectation that 2 or more qualified 
 HUBZone small business concerns will 
 submit offers for the contracting 
 opportunity;
 (ii) the anticipated award price of 
 the contract (including options) will 
 not exceed--
 (I) $7,000,000, in the case 
 of a contract opportunity 
 assigned a standard industrial 
 classification code for 
 manufacturing; or
 (II) $3,000,000, in the 
 case of all other contract 
 opportunities; and
 (iii) in the estimation of the 
 contracting officer, the contract award 
 can be made at a fair and reasonable 
 price.
 (B) Restricted competition.--A contract 
 opportunity may be awarded pursuant to this 
 section on the basis of competition restricted 
 to qualified HUBZone small business concerns if 
 the contracting officer has a reasonable 
 expectation that not less than 2 qualified 
 HUBZone small business concerns will submit 
 offers and that the award can be made at a fair 
 market price.
 (C) Appeals.--Not later than 5 days from 
 the date the Administration is notified of a 
 procurement officer's decision not to award a 
 contract opportunity under this section to a 
 qualified HUBZone small business concern, the 
 Administrator may notify the contracting 
 officer of the intent to appeal the contracting 
 officer's decision, and within 15 days of such 
 date the Administrator may file a written 
 request for reconsideration of the contracting 
 officer's decision with the Secretary of the 
 department or agency head.
 (3) Price evaluation preference in full and open 
 competitions.--
 (A) In general.--Subject to subparagraph 
 (B), in any case in which a contract is to be 
 awarded on the basis of full and open 
 competition, the price offered by a qualified 
 HUBZone small business concern shall be deemed 
 as being lower than the price offered by 
 another offeror (other than another small 
 business concern), if the price offered by the 
 qualified HUBZone small business concern is not 
 more than 10 percent higher than the price 
 offered by the otherwise lowest, responsive, 
 and responsible offeror.
 (B) Procurement of commodities.--For 
 purchases by the Secretary of Agriculture of 
 agricultural commodities, the price evaluation 
 preference shall be--
 (i) 10 percent, for the portion of 
 a contract to be awarded that is not 
 greater than 25 percent of the total 
 volume being procured for each 
 commodity in a single invitation;
 (ii) 5 percent, for the portion of 
 a contract to be awarded that is 
 greater than 25 percent, but not 
 greater than 40 percent, of the total 
 volume being procured for each 
 commodity in a single invitation; and
 (iii) zero, for the portion of a 
 contract to be awarded that is greater 
 than 40 percent of the total volume 
 being procured for each commodity in a 
 single invitation.
 (C) Procurement of commodities for 
 international food aid export operations.--The 
 price evaluation preference for purchases of 
 agricultural commodities by the Secretary of 
 Agriculture for export operations through 
 international food aid programs administered by 
 the Farm Service Agency shall be 5 percent on 
 the first portion of a contract to be awarded 
 that is not greater than 20 percent of the 
 total volume of each commodity being procured 
 in a single invitation.
 (D) Treatment of preference.--A contract 
 awarded to a HUBZone small business concern 
 under a preference described in subparagraph 
 (B) shall not be counted toward the fulfillment 
 of any requirement partially set aside for 
 competition restricted to small business 
 concerns.
 (4) Relationship to other contracting 
 preferences.--A procurement may not be made from a 
 source on the basis of a preference provided in 
 paragraph (2) or (3), if the procurement would 
 otherwise be made from a different source under section 
 4124 or 4125 of title 18, United States Code, or the 
 Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
 (d) Eligibility Requirements; Enforcement.--
 (1) Certification.--In order to be eligible for 
 certification by the Administrator as a qualified 
 HUBZone small business concern, a HUBZone small 
 business concern shall submit documentation to the 
 Administrator stating that--
 (A) at the time of certification and at 
 each examination conducted pursuant to 
 paragraph (4), the principal office of the 
 concern is located in a HUBZone and not fewer 
 than 35 percent of its employees reside in a 
 HUBZone;
 (B) the concern will attempt to maintain 
 the applicable employment percentage under 
 subparagraph (A) during the performance of any 
 contract awarded to such concern on the basis 
 of a preference provided under subsection (c); 
 and
 (C) the concern will ensure that the 
 requirements of section 46 are satisfied with 
 respect to any subcontract entered into by such 
 concern pursuant to a contract awarded under 
 this section.
 (2) Verification.--In carrying out this section, 
 the Administrator shall establish procedures relating 
 to--
 (A) the filing, investigation, and 
 disposition by the Administration of any 
 challenge to the eligibility of a HUBZone small 
 business concern to receive assistance under 
 this section (including a challenge, filed by 
 an interested party, relating to the veracity 
 of documentation provided to the Administration 
 by such a concern under paragraph (1)); and
 (B) verification by the Administrator of 
 the accuracy of any documentation provided by a 
 HUBZone small business concern under paragraph 
 (1).
 (3) Timing.--The Administrator shall verify the 
 eligibility of a HUBZone small business concern using 
 the procedures described in paragraph (2) within a 
 reasonable time and not later than 60 days after the 
 date on which the Administrator receives sufficient and 
 complete documentation from a HUBZone small business 
 concern under paragraph (1).
 (4) Recertification.--Not later than 3 years after 
 the date that such HUBZone small business concern was 
 certified as a qualified HUBZone small business 
 concern, and every 3 years thereafter, the 
 Administrator shall verify the accuracy of any 
 documentation provided by a HUBZone small business 
 concern under paragraph (1) to determine if such 
 HUBZone small business concern remains a qualified 
 HUBZone small business concern.
 (5) Examinations.--The Administrator shall conduct 
 program examinations of qualified HUBZone small 
 business concerns, using a risk-based analysis to 
 select which concerns are examined, to ensure that any 
 concern examined meets the requirements of paragraph 
 (1).
 (6) Loss of certification.--A HUBZone small 
 business concern that, based on the results of an 
 examination conducted pursuant to paragraph (5) no 
 longer meets the requirements of paragraph (1), shall 
 have 30 days to submit documentation to the 
 Administrator to be eligible to be certified as a 
 qualified HUBZone small business concern. During the 
 30-day period, such concern may not compete for or be 
 awarded a contract under this section. If such concern 
 fails to meet the requirements of paragraph (1) by the 
 last day of the 30-day period, the Administrator shall 
 not certify such concern as a qualified HUBZone small 
 business concern.
 (7) Hubzone online tool.--
 (A) In general.--The Administrator shall 
 develop a publicly accessible online tool that 
 depicts HUBZones. Such online tool shall be 
 updated--
 (i) with respect to HUBZones 
 described under subparagraphs (A) and 
 (B) of subsection (b)(3), beginning on 
 January 1, 2020, and every 5 years 
 thereafter;
 (ii) with respect to a HUBZone 
 described under subsection (b)(3)(C), 
 immediately after the area becomes, or 
 ceases to be, a redesignated area; and
 (iii) with respect to HUBZones 
 described under subparagraphs (D), (E), 
 and (F) of subsection (b)(3), 
 immediately after an area is designated 
 as a base closure area, qualified 
 disaster area, or Governor-designated 
 covered area, respectively.
 (B) Data.--The online tool required under 
 subparagraph (A) shall clearly and 
 conspicuously provide access to the data used 
 by the Administrator to determine whether or 
 not an area is a HUBZone in the year in which 
 the online tool was prepared.
 (C) Notification of update.--The 
 Administrator shall include in the online tool 
 a notification of the date on which the online 
 tool, and the data used to create the online 
 tool, will be updated.
 (8) List of qualified hubzone small business 
 concerns.--The Administrator shall establish and 
 publicly maintain on the internet a list of qualified 
 HUBZone small business concerns that shall--
 (A) to the extent practicable, include the 
 name, address, and type of business with 
 respect to such concern;
 (B) be updated by the Administrator not 
 less than annually; and
 (C) be provided upon request to any Federal 
 agency or other entity.
 (9) Provision of data.--Upon the request of the 
 Administrator, the Secretary of Labor, the 
 Administrator of the Federal Emergency Management 
 Agency, the Secretary of Housing and Urban Development, 
 and the Secretary of the Interior (or the Assistant 
 Secretary for Indian Affairs), shall promptly provide 
 to the Administrator such information as the 
 Administrator determines to be necessary to carry out 
 this subsection.
 (10) Penalties.--In addition to the penalties 
 described in section 16(d), any small business concern 
 that is determined by the Administrator to have 
 misrepresented the status of that concern as a 
 ``qualified HUBZone small business concern'' for 
 purposes of this section shall be subject to liability 
 for fraud, including section 1001 of title 18, United 
 States Code, and sections 3729 through 3733 of title 
 31, United States Code.
 (e) Performance Metrics.--
 (1) In general.--Not later than 1 year after the 
 date of the enactment of this subsection, the 
 Administrator shall publish performance metrics 
 designed to measure the success of the HUBZone program 
 established under this section in meeting the program's 
 objective of promoting economic development in 
 economically distressed areas (as defined in section 
 7(m)(11)).
 (2) Collecting and managing hubzone data.--The 
 Administrator shall develop processes to incentivize 
 each regional office of the Administration to collect 
 and manage data on HUBZones within the geographic area 
 served by such regional office.
 (3) Report.--Not later than 90 days after the last 
 day of each fiscal year, the Administrator 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 analyzing the 
 data from the performance metrics established under 
 this subsection and including--
 (A) the number of HUBZone small business 
 concerns that lost certification as a qualified 
 HUBZone small business concern because of the 
 results of an examination performed under 
 subsection (d)(5); and
 (B) the number of those concerns that did 
 not submit documentation to be recertified 
 under subsection (d)(6).
 [(f)] (g) Authorization of Appropriations.--There is 
authorized to be appropriated to carry out the program 
established by this section $10,000,000 for each of fiscal 
years 2020 through 2025.
 (e) Report.--Not later than May 1, 2024, and annually 
thereafter, the Administrator shall submit to the Committee on 
Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate 
a report on HUBZone small business concerns. Such report shall 
include, for the fiscal year preceding the date of the report, 
the following:
 (1) The number of applications for certification as 
 a qualified HUBZone small business concern that have 
 sufficient information for the Administrator to make a 
 certification determination, disaggregated by--
 (A) the number of applications certified;
 (B) the number of applications denied; and
 (C) the number of applications for which a 
 determination has not been made.
 (2) The total dollar amount and total percentage of 
 prime contracts awarded to qualified HUBZone small 
 business concerns pursuant to this section.
 (3) The total dollar amount and percent of sole 
 source contracts awarded to qualified HUBZone small 
 business concerns under subsection (c)(2)(A).
 (4) With respect to an examination described in 
 subsection (d)(5)--
 (A) the number of examinations due because 
 of recertification requirements and the actual 
 number of such examinations conducted; and
 (B) the number of examinations conducted 
 for any other reason.
 (5) The number of HUBZone small business concerns 
 that were found to be ineligible to be awarded a 
 contract under this subsection as a result of an 
 examination conducted pursuant to subsection (d)(5) or 
 a verification conducted pursuant to subsection (d)(2).
 (6) The number of small business concerns that were 
 decertified as qualified HUBZone small business 
 concerns.
 (7) The number of qualified HUBZone small business 
 concerns.
 (8) Any other information the Administrator 
 determines necessary.

 * * * * * * *

SEC. 36. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND 
 CONTROLLED BY SERVICE-DISABLED VETERANS.

 (a) Contracting Officer Defined.--For purposes of this 
section, the term ``contracting officer'' has the meaning given 
such term in section 2101 of title 41, United States Code.
 (b) Certification of Small Business Concerns Owned and 
Controlled by Service-Disabled Veterans.--With respect to a 
procurement program or preference established under this Act 
that applies to prime contractors, the Administrator shall--
 (1) certify the status of a concern as a small 
 business concern owned and controlled by service-
 disabled veterans; and
 (2) require the periodic recertification of such 
 status.
 (c) Sole Source Contracts.--In accordance with this 
section, a contracting officer may award a sole source contract 
to any small business concern owned and controlled by service-
disabled veterans if--
 (1) such concern is determined to be a responsible 
 contractor with respect to performance of such contract 
 opportunity and the contracting officer does not have a 
 reasonable expectation that 2 or more small business 
 concerns owned and controlled by service-disabled 
 veterans will submit offers for the contracting 
 opportunity;
 (2) the anticipated award price of the contract 
 (including options) will not exceed--
 (A) $7,000,000, in the case of a contract 
 opportunity assigned a standard industrial 
 classification code for manufacturing; or
 (B) $3,000,000, in the case of any other 
 contract opportunity; and
 (3) in the estimation of the contracting officer, 
 the contract award can be made at a fair and reasonable 
 price.
 (d) Restricted Competition.--In accordance with this 
section, a contracting officer may award contracts on the basis 
of competition restricted to small business concerns owned and 
controlled by service-disabled veterans certified under 
subsection (b) if the contracting officer has a reasonable 
expectation that not less than 2 small business concerns owned 
and controlled by service-disabled veterans will submit offers 
and that the award can be made at a fair market price.
 (e) Relationship to Other Contracting Preferences.--A 
procurement may not be made from a source on the basis of a 
preference provided under subsection (a) or (b) if the 
procurement would otherwise be made from a different source 
under section 4124 or 4125 of title 18, United States Code, or 
the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
 (f) Database of Veteran-Owned Businesses.--(1) Subject to 
paragraphs (2) through (6), the Administrator shall maintain a 
database of small business concerns owned and controlled by 
veterans, small business concerns owned and controlled by 
service-disabled veterans, and the veteran owners of such 
business concerns.
 (2)(A) To be eligible for inclusion in the database, such a 
veteran shall submit to the Administrator such information as 
the Administrator may require with respect to the small 
business concern or the veteran. Application for inclusion in 
the database shall constitute permission under section 552a of 
title 5, United States Code, (commonly referred to as the 
Privacy Act) for the Administrator to obtain from the Secretary 
of Veterans Affairs such personal information maintained by the 
Secretary as may be necessary to verify the information 
contained in the application.
 (B) For purposes of this subsection--
 (i) the Secretary of Veterans Affairs shall--
 (I) verify an individual's status as a 
 veteran or a service-disabled veteran; and
 (II) establish a system to permit the 
 Administrator to access, but not alter, the 
 verification of such status; and
 (ii) the Administrator shall verify--
 (I) the status of a business concern as a 
 small business concern; and
 (II) the ownership and control of such 
 business concern.
 (C) The Administrator may not certify a concern under 
subsection (b) or section 36A if the Secretary of Veterans 
Affairs cannot provide the verification described under 
subparagraph (B)(i)(I).
 (3) Information maintained in the database shall be 
submitted on a voluntary basis by a veteran described in 
paragraph (1).
 (4) the Administrator shall make the database available to 
all Federal departments and agencies and shall notify each such 
department and agency of the availability of the database.
 (5) If the Administrator determines that the public 
dissemination of certain types of information maintained in the 
database is inappropriate, the Administrator shall take such 
steps as are necessary to maintain such types of information in 
a secure and confidential manner.
 (6)(A) If a small business concern is not included in the 
database because the Administrator does not certify the status 
of the concern as a small business concern owned and controlled 
by veterans (under section 36A) or a small business concern 
owned and controlled by service-disabled veterans (under 
subsection (g) of this section), the concern may appeal the 
denial of certification to the Office of Hearings and Appeals 
of the Administration (as established under section 5(i)). The 
decision of the Office of Hearings and Appeals shall be 
considered a final agency action.
 (B)(i) If an interested party challenges the inclusion in 
the database of a small business concern owned and controlled 
by veterans or a small business concern owned and controlled by 
service-disabled veterans based on the status of the concern as 
a small business concern or the ownership or control of the 
concern, the challenge shall be heard by the Office of Hearings 
and Appeals as described in subparagraph (A). The decision of 
the Office of Hearings and Appeals shall be considered final 
agency action.
 (ii) In this subparagraph, the term ``interested 
 party'' means--
 (I) the Secretary of Veterans Affairs or 
 the Administrator; or
 (II) in the case of a small business 
 concern that is awarded a contract, the 
 applicable contracting officer or another small 
 business concern that submitted an offer for 
 the contract that was awarded to the small 
 business concern that is the subject of a 
 challenge made under clause (i).
 (g) Certification Requirement.--Notwithstanding subsection 
(c), a contracting officer may only award a sole source 
contract to a small business concern owned and controlled by 
service-disabled veterans or a contract on the basis of 
competition restricted to small business concerns owned and 
controlled by service-disabled veterans if such a concern is 
certified by the Administrator as a small business concern 
owned and controlled by service-disabled veterans.
 (h) Enforcement; Penalties.--
 (1) Verification of eligibility.--In carrying out 
 this section, the Administrator shall establish 
 procedures relating to--
 (A) the filing, investigation, and 
 disposition by the Administration of any 
 challenge to the eligibility of a small 
 business concern to receive assistance under 
 this section (including a challenge, filed by 
 an interested party, relating to the veracity 
 of a certification made or information provided 
 to the Administration by a small business 
 concern under subsection (b)); and
 (B) verification by the Administrator of 
 the accuracy of any certification made or 
 information provided to the Administration by a 
 small business concern under subsection (b).
 (2) Examinations.--The procedures established under 
 paragraph (1) shall provide for a program of 
 examinations by the Administrator of any small business 
 concern making a certification or providing information 
 to the Administrator under subsection (b), to determine 
 the veracity of any statements or information provided 
 as part of such certification or otherwise provided 
 under subsection (b).
 (3) Enforcement; penalties.--Rules similar to the 
 rules of paragraphs (5) and (6) of section 8(m) shall 
 apply for purposes of this section and section 36A.
 (i) Provision of Data.--Upon the request of the 
Administrator, the head of any Federal department or agency 
shall promptly provide to the Administrator such information as 
the Administrator determines to be necessary to carry out 
subsection (b) or to be able to certify the status of the 
concern as a small business concern owned and controlled by 
veterans under section 36A.
 (j) Report.--Not later than May 1, 2024, and annually 
thereafter, the Administrator shall submit to the Committee on 
Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate 
a report on small business concerns owned and controlled by 
service-disabled veterans. Such report shall include, for the 
fiscal year preceding the date of the report, the following:
 (1) The total number of small business concerns 
 certified as small business concerns owned and 
 controlled by service-disabled veterans.
 (2) The total dollar amount and total percentage of 
 prime contracts awarded to small business concerns 
 owned and controlled by service-disabled veterans 
 pursuant to this section.
 (3) The total dollar amount and percent of sole 
 source contracts awarded to owned and controlled by 
 service-disabled veterans pursuant to subsection (c).
 (4) With respect to an examination described in 
 subsection (h)(2)--
 (A) the number of examinations due because 
 of recertification requirements and the actual 
 number of such examinations conducted; and
 (B) the number of examinations conducted 
 for any other reason.
 (5) The number of small business concerns owned and 
 controlled by service-disabled veterans that were found 
 to be ineligible to be awarded a contract under this 
 subsection as a result of an examination conducted 
 pursuant to subsection (h)(2).
 (6) The number of small business concerns 
 decertified as small business concerns owned and 
 controlled by service-disabled veterans.
 (7) The total number of small business concerns 
 owned and controlled by service-disabled veterans.
 (8) Any other information the Administrator 
 determines necessary.

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