HR 7128 — The WOSB Integrity Act of 2024

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

 * * * * * * *
 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 30 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--
 (i) 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; and
 (ii) may enter or modify past performance 
 information of the prime contractor in 
 connection with the unjustified failure to make 
 a full or timely payment to a subcontractor 
 subject to this paragraph before or after 
 close-out of the covered contract.
 (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 (F).
 (E) Cooperation.--
 (i) In general.--Once a contracting officer 
 determines, with respect to the past 
 performance of a prime contractor, that there 
 was an unjustified failure by the prime 
 contractor on a covered contract to make a full 
 or timely payment to a subcontractor covered by 
 subparagraph (B) or (C), the prime contractor 
 is required to cooperate with the contracting 
 officer, who shall consult with the Director of 
 Small Business Programs or the Director of 
 Small and Disadvantaged Business Utilization 
 acting pursuant to section 15(k)(6) and other 
 representatives of the Government, regarding 
 correcting and mitigating the unjustified 
 failure to make a full or timely payment to a 
 subcontractor.
 (ii) Duration.--The duty of cooperation under 
 this subparagraph for a prime contractor 
 described in clause (i) continues until the 
 subcontractor is made whole or the 
 determination of the contracting officer 
 determination is no longer effective, and 
 regardless of performance or close-out status 
 of the covered contract.
 (F) 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, 
 including that each such concern does not 
 exceed the applicable size standard established 
 under section 3(a).
 (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.
 (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.

 * * * * * * *

 XVIII. MINORITY VIEWS

 SBA's Women-Owned Small Business (WOSB) Program is designed 
to help level the playing field for women-owned small 
businesses and economically disadvantaged women-owned small 
businesses (EDWOSBs) in the federal marketplace. The federal 
government attempts to expand contracting opportunities for 
WOSBs in two main ways: (a) setting an overall goal of sending 
5% of federal contracting dollars to women-owned firms and (b) 
using certain authorities to make it easier to contract with 
women-owned firms. These authorities allow contracting officers 
to set-aside a contract exclusively for WOSBs competition and 
allow contracting officers to sole source contracts to a WOSB 
firm, when certain conditions are met.
 The federal government topline goal of 5% of federal 
spending for WOSBs has only been met twice and federal agencies 
routinely miss their individual WOSB goals.
 To participate in the WOSB program, the firm must be: (a) a 
small business; (b) owned and controlled by one or more women 
who are U.S. citizens; (c) have women manage day-to-day 
operations and make long-term decisions; and (d) be certified 
by the SBA, or a national certifying entity approved by the 
SBA.
 The IG has stated that SBA is required to verify that WOSB 
program applicants meet the program criteria, including that 
the firm meets the small business size requirements. The 
Inspector General further believes that SBA's implementation 
``is inconsistent with the statutory requirement for SBA to 
certify the business meets program requirements.''\1\
---------------------------------------------------------------------------
 \1\``SBA Inspector General Audit Report: SBA'S Implementation of 
the Women-owned Small Business Certification Program.'' Report Number 
22-20, September 29, 2022: https://www.sba.gov/sites/sbagov/files/2022-
09/SBA%20OIG%20Report%2022-20.pdf.
---------------------------------------------------------------------------
 The language and the intent of this legislation are to 
align the SBA's implementation of the WOSB program with the 
IG's recommendation that ``program officials should establish 
procedures similar to the third-party certifiers, HUBZone, and 
8(a) programs to ensure analysts consistently verify that WOSB 
applicants are small businesses.''
 The authors of this legislation deliberately and 
specifically included the rule of construction in subsection 
(c) to ensure that implementation is aligned with the IG's 
comments: ``OIG acknowledges that a size determination is a 
specific process and is not recommending SBA perform size 
determinations for each applicant.'' The committee does not 
intend for SBA to conduct a size determination for WOSB program 
applicants.
 Sincerely,
 Nydia M. Velazquez,
 Ranking Member.