[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2478 Referred in House (RFH)]

103d CONGRESS
  2d Session
                                 S. 2478


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 1994

              Referred to the Committee on Small Business

_______________________________________________________________________

                                 AN ACT


 
  To amend the Small Business Act to enhance the business development 
   opportunities of small business concerns owned and controlled by 
  socially and economically disadvantaged individuals, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Business Development Opportunity Act 
of 1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
    TITLE I--AMENDMENTS TO THE MINORITY SMALL BUSINESS AND CAPITAL 
                     OWNERSHIP DEVELOPMENT PROGRAM

        Part A--Program Organization and Participation Standards

Sec. 101. Minority Enterprise Development Program.
Sec. 102. Consolidation of eligibility review function.
Sec. 103. Clarification of various eligibility criteria.
Sec. 104. Clarification of certain additional eligibility criteria 
                            imposed by regulation.
Sec. 105. Enhancing due process in eligibility determinations.
Sec. 106. Improving geographic distribution of program participants.
                Part B--Business Development Assistance

Sec. 111. Developmental assistance authorized for program participants.
Sec. 112. Expanding the eligible uses for loans under existing loan 
                            programs for program participants.
Sec. 113. Test program for the use of surety bond waivers.
Sec. 114. Targeting section 7(j) business management assistance to 
                            program participants.
Sec. 115. Other enhancements to the section 7(j) management assistance 
                            program.
Sec. 116. Developmental teaming.
        Part C--Improving Access to Equity for Program Graduates

Sec. 121. Continued contract performance.
Sec. 122. Continued program participation.
             Part D--Contract Award and Eligibility Matters

Sec. 131. Contract award procedures.
Sec. 132. Timely determination of eligibility for contract award.
Sec. 133. Competition requirements.
Sec. 134. Standard industrial classification codes.
Sec. 135. Use of contract support levels.
Sec. 136. Business mix requirements.
Sec. 137. Encouraging self-marketing.
Sec. 138. Bundling of contractor capabilities.
                  Part E--Tribally Owned Corporations

Sec. 141. Management and control of business operations.
Sec. 142. Joint ventures.
Sec. 143. Rule of construction regarding the Buy Indian Act.
                Part F--Contract Administration Matters

Sec. 151. Accelerated payment.
Sec. 152. Expedited resolution of contract administration matters.
Sec. 153. Availability of alternative dispute resolution.
                     Part G--Program Administration

Sec. 161. Simplification of annual report to Congress.
Sec. 162. Reduction in reporting by program participants.
   TITLE II--CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS

                   Part A--Civilian Agencies Program

Sec. 201. Procurement procedures.
Sec. 202. Implementation through the Federal Acquisition Regulation.
Sec. 203. Sunset.
          Part B--Eligibility Determinations Regarding Status

Sec. 211. Improved status protest system.
Sec. 212. Conforming amendment.
           TITLE III--EXPANDING SUBCONTRACTING OPPORTUNITIES

Sec. 301. Evaluating subcontract participation in awarding contracts.
Sec. 302. Subcontracting goals for certain small business concerns.
Sec. 303. Small business participation goals.
Sec. 304. Improved notice of subcontracting opportunities.
               TITLE IV--REPEALS AND TECHNICAL AMENDMENTS

                            Part A--Repeals

Sec. 401. Loan program superseded by section 7(a) loan program.
Sec. 402. Superseded loan program relating to energy.
Sec. 403. Employee training program of limited scope.
Sec. 404. Expired provision.
Sec. 405. Expired direction to the Administration.
                      Part B--Technical Amendments

Sec. 411. Technical amendments.
                          TITLE V--DEFINITIONS

Sec. 501. Historically underutilized businesses.
Sec. 502. Emerging small business concern.
        TITLE VI--REGULATORY IMPLEMENTATION AND EFFECTIVE DATES

           Part A--Assuring Timely Regulatory Implementation

Sec. 601. Deadlines for issuance of regulations.
Sec. 602. Regulatory implementation of prior legislation.
                        Part B--Effective Dates

Sec. 611. Effective dates.

    TITLE I--AMENDMENTS TO THE MINORITY SMALL BUSINESS AND CAPITAL 
                     OWNERSHIP DEVELOPMENT PROGRAM

        PART A--PROGRAM ORGANIZATION AND PARTICIPATION STANDARDS

SEC. 101. MINORITY ENTERPRISE DEVELOPMENT PROGRAM.

    (a) Program Established.--Section 7(j)(10) of the Small Business 
Act (15 U.S.C. 636(j)(10)) is amended--
            (1) by striking the subsection designation and the first 2 
        sentences and inserting the following:
            ``(10) Minority enterprise development program.--
                    ``(A) Establishment.--There is established within 
                the Administration a Minority Enterprise Development 
                Program (hereafter in this paragraph referred to as the 
                `Program'), which shall be administered by an Associate 
                Administrator in accordance with this paragraph and 
                section 8(a).'';
            (2) by striking subparagraph (B);
            (3) by striking ``(A) The Program shall--'' and inserting 
        the following:
                    ``(B) Program goals.--The Program shall--''; and
            (4) in subparagraph (C)(i), by striking ``participating in 
        any program or activity conducted under the authority of this 
        paragraph or''.
    (b) Program Phases.--Section 7(j)(12) of the Small Business Act (15 
U.S.C. 636(j)(12)) is amended to read as follows:
            ``(12) Segmenting of minority enterprise development 
        program.--
                    ``(A) In general.--In addition to such other 
                segments as the Administrator deems appropriate, the 
                Minority Enterprise Development Program established in 
                paragraph (10) shall consist of the following 3 phases:
                            ``(i) The Business Creation Phase.
                            ``(ii) The Business Development Phase.
                            ``(iii) The Business Development 
                        (Preferential Contracting) Phase.
                    ``(B) Eligibility for preferential contracting.--
                Only a firm participating in the Business Development 
                (Preferential Contracting) Phase shall be eligible for 
                award of Federal contracts pursuant to section 8(a) 
                (and shall be referred to as a `Program Participant' 
                for the purposes of this section and section 8(a)).
                    ``(C) Participation by firms.--Except as provided 
                in section 10(c), a firm may participate in the 
                Business Development (Preferential Contracting) Phase 
                described in subparagraph (A)(iii) for a total period 
                of not more than 9 years, which period shall be divided 
                into the following 2 stages:
                            ``(i) A developmental stage (of not more 
                        than the first 5 years).
                            ``(ii) A transitional stage.''.
    (c) Conforming Amendments.--The Small Business Act (15 U.S.C. 601 
et seq.) is amended--
            (1) by striking ``Minority Small Business and Capital 
        Ownership Development'' each place it appears and inserting 
        ``Minority Enterprise Development'';
            (2) by striking ``Capital Ownership Development'' each 
        place it appears and inserting ``Minority Enterprise 
        Development'';
            (3) by striking ``capital ownership development'' each 
        place it appears and inserting ``minority enterprise 
        development'';
            (4) by striking ``Business Opportunity Specialist'' each 
        place it appears and inserting ``Business Development 
        Specialist''; and
            (5) by striking section 7(j)(15) and inserting the 
        following:
            ``(15) [Reserved].''.

SEC. 102. CONSOLIDATION OF ELIGIBILITY REVIEW FUNCTION.

    Section 7(j)(11)(E) of the Small Business Act (15 U.S.C. 
636(j)(11)(E)) is amended by striking the third sentence.

SEC. 103. CLARIFICATION OF VARIOUS ELIGIBILITY CRITERIA.

    (a) Tribally Owned Corporations.--Sections 7(j) and 8(a) of the 
Small Business Act (15 U.S.C. 636(j), 637(a)) are each amended by 
striking ``an economically disadvantaged Indian tribe'' each place it 
appears and inserting ``an Indian tribe''.
    (b) Native Hawaiian Organizations.--Section 8(a)(4)(A) of the Small 
Business Act (15 U.S.C. 637(a)(4)(A)) is amended by striking ``an 
economically disadvantaged Native Hawaiian organization'' each place it 
appears and inserting ``a Native Hawaiian organization''.
    (c) Presumption of Economic Disadvantage.--Section 8(a)(6)(A) of 
the Small Business Act (15 U.S.C. 637(a)(6)(A)) is amended by striking 
the last sentence.

SEC. 104. CLARIFICATION OF CERTAIN ADDITIONAL ELIGIBILITY CRITERIA 
              IMPOSED BY REGULATION.

    Section 7(j)(11)(G) of the Small Business Act (15 U.S.C. 
636(j)(11)(G)) is amended to read as follows:
    ``(G) An applicant shall not be denied admission into the Minority 
Enterprise Development Program established in paragraph (10) based 
solely on a determination by the Division that--
            ``(i) specific contract opportunities are unavailable to 
        assist in the development of such concern, unless--
                    ``(I) the Government has not previously procured 
                and is unlikely to procure the types of products or 
                services offered by the concern; and
                    ``(II) the purchases of such products or services 
                by the Federal Government will not be in quantities 
                sufficient to support the developmental needs of the 
                applicant and other Program Participants providing the 
                same or similar items or services;
            ``(ii) the prospective Program Participant firm has not 
        been in operation for a period of time specified by the 
        Administration prior to making application to the Program, if 
        the prospective Program Participant firm can demonstrate that--
                    ``(I) the individual or individuals upon whom 
                eligibility is to be based have substantial and 
                demonstrated business management experience;
                    ``(II) the prospective Program Participant has 
                demonstrated technical expertise necessary to carry out 
                its business plan with a substantial likelihood of 
                success;
                    ``(III) the prospective Program Participant has, or 
                can demonstrate its ability to timely obtain, adequate 
                capital to carry out its business plan;
                    ``(IV) the prospective Program Participant can 
                demonstrate the competitive award and performance 
                (either ongoing or completed) of contracts from 
                governmental or nongovernmental sources in the primary 
                industry category reflected in its business plan; and
                    ``(V) the prospective Program Participant has, or 
                can demonstrate its ability to timely obtain, the 
                personnel, facilities, equipment, and any other 
                requirements needed to perform contracts of the type 
                likely to be awarded to the firm pursuant to section 
                8(a);
            ``(iii) the individual or individuals upon whom eligibility 
        is to be based have not been working full time at managing the 
        prospective Program Participant firm for a period specified by 
        the Administration prior to making application to the Program;
            ``(iv) the prospective Program Participant is a tribally 
        owned corporation whose chief executive officer (or chief 
        operating officer) is other than a Native American, if the 
        governing body of the Indian tribe certifies to the 
        Administration that it was unable to hire a qualified Native 
        American after conducting a national recruitment for such 
        individual; or
            ``(v) the prospective Program Participant lacks reasonable 
        prospects for future success despite access to one or more of 
        the types of developmental assistance provided for in paragraph 
        (13), unless such determination is supported by specific 
        findings.''.

SEC. 105. ENHANCING DUE PROCESS IN ELIGIBILITY DETERMINATIONS.

    Section 7(j)(11)(H) of the Small Business Act (15 U.S.C. 
636(j)(11)(H)) is amended--
            (1) by striking ``(H)'' and inserting ``(H)(i)''; and
            (2) by adding at the end the following new clauses:
    ``(ii) The Associate Administrator for Minority Enterprise 
Development shall--
            ``(I) notify an applicant, in writing, of the denial of an 
        application under clause (i), stating the specific 
        determinations supported by specific findings in support of the 
        denial; and
            ``(II) provide the applicant an opportunity to respond (or 
        to modify the business organization of the applicant in 
        response) to matters raised in the notice of denial and to seek 
        a reconsideration of the application.
    ``(iii) If the application is denied upon reconsideration pursuant 
to clause (ii) and the denial is based upon determinations or findings 
not previously cited as a basis for the initial denial of the 
application, the Associate Administrator for Minority Enterprise 
Development shall provide the applicant an opportunity to respond to 
the determinations or findings not previously raised, or to modify the 
business organization of the applicant in response to such 
determinations or findings.''.

SEC. 106. IMPROVING GEOGRAPHIC DISTRIBUTION OF PROGRAM PARTICIPANTS.

    (a) Action Plan Required.--The Administrator of the Small Business 
Administration shall develop an action plan for improving participation 
in the Minority Enterprise Development Program established by section 
101 by firms across the Nation.
    (b) Contents of the Action Plan.--In addition to such other matters 
as the Administrator deems appropriate, the action plan developed under 
subsection (a) shall address--
            (1) an outreach program directed at small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals eligible for program participation in those States 
        with historically low rates of participation in the Minority 
        Enterprise Development Program (and its predecessor program, 
        the Minority Small Business and Capital Ownership Development 
        Program); and
            (2) improved implementation of section 8(a)(16)(B) of the 
        Small Business Act (relating to geographic distribution of 
        contracts awarded noncompetitively pursuant to section 8(a)(1) 
        of such Act).
    (c) Public Participation.--In carrying out this section, the 
Administrator shall seek public comment on the proposals to be included 
in the action plan.
    (d) Submission.--Not later than June 30, 1995, the action plan 
developed under subsection (a) shall be submitted to the Committees on 
Small Business of the Senate and House of Representatives.

                PART B--BUSINESS DEVELOPMENT ASSISTANCE

SEC. 111. DEVELOPMENTAL ASSISTANCE AUTHORIZED FOR PROGRAM PARTICIPANTS.

    Section 7(j) of the Small Business Act (15 U.S.C. 636(j)) is 
amended--
            (1) in paragraph (13), in the matter preceding subparagraph 
        (A), by striking ``the stages of program participation 
        specified in paragraph 12'' and inserting ``its Program 
        participation''; and
            (2) by striking paragraph (14) and inserting the following:
            ``(14) [Reserved].''.

SEC. 112. EXPANDING THE ELIGIBLE USES FOR LOANS UNDER EXISTING LOAN 
              PROGRAMS FOR PROGRAM PARTICIPANTS.

    Section 7(a)(20)(A)(iii) of the Small Business Act (15 U.S.C. 
636(a)(20)(A)(iii)) is amended by striking ``to be used'' and all that 
follows before the semicolon.

SEC. 113. TEST PROGRAM FOR THE USE OF SURETY BOND WAIVERS.

    Section 7(j)(13)(D) of the Small Business Act (15 U.S.C. 
636(j)(13)(D)) is amended--
            (1) by striking clauses (i) through (iii);
            (2) by striking ``A maximum'' and inserting ``(i) A 
        maximum'';
            (3) by striking ``, except that, such exemptions may be 
        granted under this subparagraph only
        if--'' and inserting a period; and
            (4) by adding at the end the following new clauses:
                    ``(ii) The agency with contracting authority may, 
                upon the request of the Program Participant, grant an 
                exemption pursuant to clause (i), if--
                            ``(I) the Program Participant provides 
                        certification, in the form prescribed by the 
                        Administration, that the firm was unable to 
                        obtain the requisite bonding from corporate 
                        surety bonding firms even with a guarantee 
                        issued by the Administration pursuant to title 
                        IV of the Small Business Investment Act of 
                        1958;
                            ``(II) the Program Participant has provided 
                        for the protection of persons furnishing 
                        materials or labor under the contract by 
                        arranging for--
                                    ``(aa) the direct disbursement of 
                                funds owed to such persons by the 
                                procuring agency or through an escrow 
                                account provided by any bank the 
                                deposits of which are insured by the 
                                United States Government; or
                                    ``(bb) irrevocable letters of 
                                credit (or other alternatives to surety 
                                bonding acceptable to the procuring 
                                agency); and
                            ``(III) the award value of the contract for 
                        which the exemption is being sought does not 
                        exceed $1,000,000.
                    ``(iii) The authority to grant an exemption under 
                clause (ii) shall cease to be effective on September 
                30, 1997.''.

SEC. 114. TARGETING SECTION 7(j) BUSINESS MANAGEMENT ASSISTANCE TO 
              PROGRAM PARTICIPANTS.

    Section 7(j)(1) of the Small Business Act (15 U.S.C. 636(j)(1)) is 
amended by striking ``individuals or enterprises eligible for 
assistance under sections 7(i), 7(j)(10), and 8(a) of this Act'' and 
inserting ``participants in the Minority Enterprise Development Program 
established in paragraph (10)''.

SEC. 115. OTHER ENHANCEMENTS TO THE SECTION 7(j) MANAGEMENT ASSISTANCE 
              PROGRAM.

    (a) Focus on Business Management Assistance.--Section 7(j)(2)(E) of 
the Small Business Act (15 U.S.C. 636(j)(2)(E)) is amended to read as 
follows:
            ``(E) the furnishing of business development services and 
        related professional services, especially accounting and legal 
        services, with special emphasis on marketing, bid and proposal 
        preparation, financial management, strategic business planning, 
        and transition management planning for participants in the 
        Minority Enterprise Development Program, that will foster the 
        continued business development of the Program Participants 
        after program graduation.''.
    (b) Two-Year Authorization.--Section 7(j)(5) of the Small Business 
Act (15 U.S.C. 636(j)(5)) is amended to read as follows:
    ``(5)(A) Financial assistance authorized in paragraph (1) may be 
provided through grants, cooperative agreements, or contracts.
    ``(B) Funds appropriated to carry out paragraph (1) shall remain 
available for obligation by the Administration during the fiscal year 
succeeding the fiscal year for which the funds were appropriated.
    ``(C) Recipients of financial assistance awarded pursuant to 
paragraph (1) may expend such funds prior to the expiration date of the 
grant, cooperative agreement, or contract under which the funds were 
awarded.''.
    (c) Eligibility for Certain Educational Institutions.--Section 7(j) 
of the Small Business Act (15 U.S.C. 636(j)) is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) through (E) 
                as subparagraphs (B) through (F), respectively; and
                    (B) by inserting before subparagraph (B), as 
                redesignated, the following new subparagraph:
            ``(A) business executive education programs conducted by 
        institutions of graduate business education for owners or 
        managers of small business concerns owned and controlled by 
        socially and economically disadvantaged individuals (as defined 
        in section 8(d)(3)(C));''; and
            (2) by striking paragraph (4) and inserting the following:
    ``(4) In making awards pursuant to paragraph (1) to institutions of 
graduate business education eligible under paragraph (2)(A), the 
Administration shall give preference to institutions that have 
previously provided such programs, with the greatest preference being 
accorded to institutions that have provided such programs for a period 
of not less than 10 consecutive years.''.

SEC. 116. DEVELOPMENTAL TEAMING.

    (a) Program Established.--There is established a Developmental 
Teaming Program (hereafter in this section referred to as the 
``Program'') within the Minority Enterprise Development Program 
established under section 101.
    (b) Purpose.--The purpose of the Program shall be to foster the 
business development and long-term business success of firms 
participating in the Minority Enterprise Development Program by 
encouraging the formation of teaming arrangements and long-term 
strategic business alliances between such firms and firms that have 
graduated from the Minority Enterprise Development Program (and its 
predecessor program, the Minority Small Business and Capital Ownership 
Development Program).
    (c) Program Participants.--
            (1) Assistance recipients.--Small business concerns owned 
        and controlled by socially and economically disadvantaged 
        individuals that are participants in the Business Development 
        (Preferential Contracting) Phase of the Minority Enterprise 
        Development Program shall be eligible to participate in the 
        Program (and shall be referred to as ``Program Participants'' 
        for purposes of this section).
            (2) Assistance providers.--A small business concern owned 
        and controlled by socially and economically disadvantaged 
        individuals that is a graduate (or a current Program 
        Participant in the Transitional Stage) of the Business 
        Development (Preferential Contracting Phase) of the Minority 
        Enterprise Development Program (and its predecessor program, 
        the Minority Small Business and Capital Ownership Development 
        Program) shall be eligible to participate in the Program and to 
        furnish developmental assistance to Program Participants 
        through a developmental teaming agreement, approved pursuant to 
        subsection (d). (For purposes of this section, firms having, or 
        seeking to establish, a developmental teaming agreement shall 
        be referred to as ``Developmental Teaming Partners'').
    (d) Teaming Agreements.--
            (1) Assistance authorized.--A Developmental Teaming Partner 
        may provide to a Program Participant one or more of the 
        following forms of developmental assistance and training:
                    (A) General business management (including 
                financial management, organizational management and 
                personnel management).
                    (B) Business development, marketing, and proposal 
                preparation.
                    (C) Process engineering (including production, 
                inventory control, and quality assurance).
                    (D) Award of subcontracts on a noncompetitive 
                basis.
                    (E) Technology transfer.
                    (F) Financial assistance (including loans, loan 
                guarantees, surety bonding, advance payments, and 
                accelerated progress payments).
                    (G) Such other forms of assistance designed to 
                foster the development of the Program Participant, 
                contained in a developmental teaming agreement approved 
                pursuant to paragraph (3).
            (2) Content of agreements.--In addition to such other 
        matters as the parties may deem appropriate, each developmental 
        teaming agreement shall include the matters described in 
        subsection (e).
            (3) Approval required.--Each developmental teaming 
        agreement shall be approved by the Administration before--
                    (A) the furnishing of any type of developmental 
                assistance to a Program Participant pursuant to such 
                agreement; or
                    (B) the Developmental Teaming Partner becomes 
                eligible for any of the incentives authorized by 
                subsection (f).
            (4) Action by the administration.--Each proposed 
        developmental teaming agreement shall be reviewed and approved 
        (or denied approval) not later than 45 days after the receipt 
        of such agreement by the Administration. A denial of approval 
        shall state specific reasons for the denial and shall afford 
        the applicant an opportunity for reconsideration. Every 
        reasonable effort shall be made by the Administration to act 
        upon matters relating to the administration of an approved 
        developmental teaming agreement not later than 30 days after 
        the receipt of such agreement by the Administration.
    (e) Content of the Agreement.--
            (1) Forms of assistance.--Each developmental teaming 
        agreement shall specify forms of business development 
        assistance to be furnished by the Developmental Teaming Partner 
        and indicate how these forms of assistance are designed to 
        advance the approved business plan of the Program Participant.
            (2) Measures of success.--Each developmental teaming 
        agreement shall include specific milestones or benchmarks which 
        will permit objective measurement of whether the agreement has 
        advanced the business development of the Program Participant.
            (3) Duration of agreement.--Each developmental teaming 
        agreement between a Program Participant and a Developmental 
        Assistance Provider may be for a term not to exceed 3 years, 
        with the option of the parties to renew the agreement upon its 
        expiration for an additional term of not to exceed 2 years.
            (4) Termination of agreement.--The developmental teaming 
        agreement shall include provisions regarding the termination of 
        the agreement that meet the standards of subsection (h).
    (f) Participation as Subcontractor.--A Developmental Teaming 
Partner may be awarded a subcontract under a contract awarded pursuant 
to section 8(a)(1) of the Small Business Act, without regard to the 
subcontracting limitations of section 8(a)(14) of such Act, if--
            (1) the contract was awarded to a Program Participant with 
        which such firm has an approved developmental teaming 
        agreement; and
            (2) the subcontract award was approved as part of the 
        developmental teaming agreement (or subsequently approved by 
        the Administration).
    (g) Affiliation or Control.--For the purposes of the Small Business 
Act, no determination of affiliation or control (either direct or 
indirect) shall be found on the basis that a Program Participant is 
being furnished (or has entered into agreement to be furnished) 
developmental assistance pursuant to a developmental teaming agreement, 
approved pursuant to subsection (d).
    (h) Termination of Agreements.--
            (1) By a program participant.--A Program Participant may 
        voluntarily terminate a developmental teaming agreement after 
        giving not less than 30 days advance notice to its 
        Developmental Teaming Partner.
            (2) By a developmental assistance provider.--
                    (A) Withdrawal from program.--A Developmental 
                Teaming Partner may terminate its developmental teaming 
                agreement with a Program Participant by withdrawing 
                from the Program after giving not less than 30 days 
                advance notice to the Administration and to each of the 
                Program Participants for which the firm was a 
                Developmental Teaming Partner.
                    (B) Terminating an agreement for cause.--
                            (i) In general.--A Developmental Teaming 
                        Partner may terminate its developmental teaming 
                        agreement with a Program Participant for cause 
                        in accordance with the procedures in clause 
                        (ii).
                            (ii) Notice.--In terminating an agreement 
                        under clause (i), the following procedures 
                        shall apply:
                                    (I) In general.--The Program 
                                Participant shall be furnished a 
                                written notice of the proposed 
                                termination under clause (i), not less 
                                than 30 days prior to the effective 
                                date of such proposed termination, that 
                                states the specific reasons for the 
                                proposed termination.
                                    (II) Response.--The Program 
                                Participant shall have not more than 30 
                                days to respond to such notice of 
                                proposed termination, rebutting any 
                                findings believed to be erroneous and 
                                offering a remedial program.
                                    (III) Final action.--After giving 
                                the Program Participant's response 
                                prompt consideration, the Developmental 
                                Teaming Partner shall either withdraw 
                                the notice of proposed termination or 
                                issue a notice of termination.
                            (iii) Nonreviewability.--The decision of 
                        the Developmental Teaming Partner regarding a 
                        termination for cause, conforming to the 
                        procedures of clause (ii), shall be final and 
                        shall not be subject to review by the 
                        Administration.
            (3) By the small business administration.--
                    (A) In general.--The Administration may terminate 
                the participation of a Developmental Teaming Partner or 
                a Program Participant for cause in accordance with 
                subparagraph (B).
                    (B) Procedures.--In terminating an agreement under 
                subparagraph (A), the following procedures shall apply:
                            (i) Notice.--The firm proposed for 
                        termination from the Program shall be furnished 
                        a written notice of the proposed termination, 
                        not less than 30 days prior to the effective 
                        date of such proposed termination, that states 
                        the specific reasons for the proposed 
                        termination.
                            (ii) Response.--The notice of proposed 
                        termination shall provide 30 days for the firm 
                        proposed for termination to respond to such 
                        notice.
                            (iii) Final action.--After giving prompt 
                        consideration to the response of the firm 
                        proposed for termination, the Administration 
                        shall either withdraw the notice of proposed 
                        termination or issue a notice of termination.
                    (C) Reviewability.--A decision by the 
                Administration to terminate for cause the participation 
                of a firm in the Program shall be final, but may be 
                appealed pursuant to section 8(a)(9) of the Small 
                Business Act.
    (i) Duration of the Program.--
            (1) In general.--Business concerns eligible to participate 
        in the Program may enter into developmental teaming agreements 
        during the period commencing on the effective date of the 
        regulations required by subsection (j) and ending on September 
        30, 1997.
            (2) Termination.--The Program shall terminate on September 
        30, 2002.
    (j) Regulations.--The Administrator of the Small Business 
Administration shall prescribe regulations to carry out the 
Developmental Teaming Program. Proposed regulations shall be published 
not later than 90 days after the date of enactment of this Act. Final 
regulations shall be promulgated not later than 180 days after the date 
of enactment of this Act.
    (k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Small business concerns.--The term ``small business 
        concern'' means a business concern that meets the requirements 
        of section 3(a) of the Small Business Act and the regulations 
        promulgated pursuant to such section.
            (2) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--The term ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the same meaning 
        as in section 8(d)(3)(C) of the Small Business Act.
            (3) Minority enterprise development program.--The term 
        ``Minority Enterprise Development Program'' means the program 
        authorized by section 7(j)(10)(A) of the Small Business Act (as 
        amended by section 101).
            (4) Graduated.--The term ``graduated'' has the same meaning 
        as in section 7(j)(10)(H) of the Small Business Act.

        PART C--IMPROVING ACCESS TO EQUITY FOR PROGRAM GRADUATES

SEC. 121. CONTINUED CONTRACT PERFORMANCE.

    Section 8(a)(21) of the Small Business Act (15 U.S.C. 637(a)(21) is 
amended--
            (1) in subparagraph (B), by striking ``The Administrator 
        may, on a nondelegable basis, waive the requirements of 
        subparagraph (A) only if 1 of the following conditions exist:'' 
        and inserting ``The requirements of subparagraph (A) may be 
        waived, under any of the following circumstances:''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
    ``(C)(i) Except as provided in clause (ii), a request for a waiver 
pursuant to subparagraph (B) shall be submitted prior to the actual 
relinquishment of ownership or control.
    ``(ii) Under the circumstances described in subparagraph (B)(iii), 
the waiver request shall be made as soon as practicable after the 
incapacity or death occurs.''.

SEC. 122. CONTINUED PROGRAM PARTICIPATION.

    Section 7(j)(11)(D) of the Small Business Act (15 U.S.C. 
636(j)(11)(D)) is amended to read as follows:
    ``(D)(i) A Program Participant shall remain eligible for 
participation in the Program after a transfer of an ownership interest 
in the firm if ownership and control (as required by section 8(a)(4)) 
is--
            ``(I) retained by the socially and economically 
        disadvantaged individuals upon whom Program eligibility is 
        based; or
            ``(II) acquired by a small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals who have graduated from the Program or otherwise 
        exited the Program through a means other than a termination 
        proceeding.
    ``(ii) A Program Participant shall remain eligible for 
participation in the Program after transfer of ownership and control 
(as required by section 8(a)(4)) to individuals who are determined to 
be socially and economically disadvantaged pursuant to section 8(a). 
Unless graduated or terminated, the Program Participant shall be 
eligible for a period of continued Program Participation not to exceed 
the period described in paragraph (15).
    ``(iii) A Program Participant that is a tribally owned corporation 
may remain eligible for participation in the Program with other than a 
Native American as the firm's chief executive officer (or chief 
operating officer), if the governing body of the Indian tribe certifies 
to the Administration that it was unable to hire a qualified Native 
American after conducting a national recruitment for such an 
individual.''.

             PART D--CONTRACT AWARD AND ELIGIBILITY MATTERS

SEC. 131. CONTRACT AWARD PROCEDURES.

    Section 8(a)(1) of the Small Business Act (15 U.S.C. 637(a)(1)) is 
amended--
            (1) by striking subparagraphs (A), (B), and (C); and
            (2) by striking ``(a)(1)'' and inserting the following:
    ``(a)(1)(A) The Administration shall ensure that contracts 
sufficient to satisfy the contract support levels identified by 
participants in the Minority Enterprise Development Program established 
in section 7(j)(10) are designated by the various Federal agencies for 
award pursuant to this subsection.
    ``(B) Except as provided in subparagraph (D), the award of 
contracts under this section shall be made on a noncompetitive basis by 
the agency offering the contracting opportunity to the Program 
Participant selected for the award, and determined to be responsible by 
such agency. The award shall be made at a fair market price.
    ``(C)(i) The Administration shall determine the eligibility of the 
Program Participant to receive the award in accordance with the 
eligibility criteria listed in paragraph (16).
    ``(ii) With respect to an individual contracting opportunity, the 
Administration may provide, upon a request by the Program Participant, 
assistance with respect to--
            ``(I) the negotiation of the terms and conditions of the 
        award; and
            ``(II) the resolution of controversies arising from the 
        performance of the contract prior to such contract performance 
        controversies becoming formal contract disputes within the 
        meaning of the Contract Disputes Act of 1978;
    ``(iii) In the event of an adverse decision by an agency regarding 
a contracting opportunity, the Administrator may--
            ``(I) not later than 5 days after receiving notice of such 
        adverse decision, file a notice of intent to appeal with the 
        head of the agency; and
            ``(II) not later than 15 days after receiving such notice, 
        file an appeal with the head of the agency, requesting 
        reconsideration of the adverse decision.
    ``(iv) Upon receipt of the notice of intent to file an appeal under 
clause (iii)(I), further action regarding award of the contract shall 
be suspended, unless the head of the agency makes a written 
determination, supported by specific findings, that urgent and 
compelling circumstances that significantly affect the interests of the 
United States will not permit reconsideration of the adverse decision.
    ``(v) If the head of the agency sustains the adverse decision upon 
reconsideration, the decision by the head of the agency shall be in 
writing and shall be supported by specific findings.
    ``(vi) An adverse decision regarding the responsibility of a 
Program Participant shall be decided pursuant to subsection (b)(7).
    ``(vii) For the purposes of this subparagraph, an adverse decision 
includes a decision by the contracting officer responsible for the 
contracting opportunity--
            ``(I) failing to respond to a request from the 
        Administration to make a specific contracting opportunity 
        available for award pursuant to this subsection;
            ``(II) declining to make available for award under this 
        subsection a contracting opportunity (or class of contracting 
        opportunities) or failing to support such a determination with 
        specific findings;
            ``(III) finding a Program Participant to be ineligible for 
        award of a contracting opportunity on the basis of a 
        determination of nonresponsibility; or
            ``(IV) failing to reach agreement with the Program 
        Participant with respect to the terms and conditions of a 
        contract selected for award under this subsection.''.

SEC. 132. TIMELY DETERMINATION OF ELIGIBILITY FOR CONTRACT AWARD.

    (a) In General.--Section 8(a)(16) of the Small Business Act (15 
U.S.C. 637(a)(16)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (E);
            (2) by striking subparagraph (A) and inserting the 
        following:
    ``(A) Upon receiving notification that a Federal agency intends to 
consider a Program Participant for award of a contract pursuant to this 
subsection (on a competitive or noncompetitive basis), the 
Administration shall promptly notify the agency regarding the 
eligibility of the Program Participant for award of the contract, and 
shall identify all matters that could reasonably be expected to render 
the Program Participant ineligible at the time of the contract 
award.''; and
            (3) by inserting after subparagraph (A) (as added by 
        paragraph (2)) the following new subparagraphs:
    ``(B) A Program Participant may be found to be ineligible for award 
of the contract pursuant to this subsection, if--
            ``(i) the award of the contract would result in the Program 
        Participant failing to attain its business activity targets 
        established pursuant to section 7(j)(10)(I); or
            ``(ii) the Program Participant has failed to make the 
        submissions required under paragraph (6)(B).
    ``(C) A small business concern owned and controlled by socially and 
economically disadvantaged individuals that has completed its Program 
Participation term pursuant to section 7(j)(15) shall be eligible for 
award if--
            ``(i) in the case of a contract to be competitively 
        awarded, the prospective contract recipient was a Program 
        Participant eligible for award of the contract on the date 
        specified for receipt of offers, and such firm had timely 
        submitted an offer (including price); or
            ``(ii) in the case of a contract to be noncompetitively 
        awarded, the prospective contract recipient was a Program 
        Participant eligible for award of the contract on the date 
        specified by the agency contracting officer for the submission 
        of an offer (including price).
    ``(D) If the Administration determines that a Program Participant 
is ineligible for consideration for award of a contract under 
subparagraph (B) or (C), the determination shall be supported by 
specific findings. The determination (and supporting findings) shall be 
furnished to the Program Participant and to the contracting officer for 
the agency providing the contracting opportunity.''.
    (b) Conforming Amendments.--Section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)) is amended--
            (1) in paragraph (3)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
    ``(A) [Reserved].''; and
                    (B) by striking subparagraph (D) and inserting the 
                following:
    ``(D) Subsequent to the award of a contract under this subsection, 
if requested by the recipient of the contract, the Administration shall 
not publicly disclose the agency's estimate of the fair market 
price.'';
            (2) in paragraph (7), by striking subparagraph (A) and 
        inserting the following:
    ``(A) [Reserved].'';
            (3) in paragraph (12)(A), by striking ``eligible to receive 
        subcontracts'' and inserting ``eligible for contract awards''; 
        and
            (4) in paragraph (9)(B)--
                    (A) in clause (iii), by striking ``and'';
                    (B) by redesignating clause (iv) as clause (v); and
                    (C) by inserting after clause (iii) the following 
                new clause:
            ``(iv) a determination of ineligibility for award of 
        contract pursuant to paragraph (16)(B); and''.

SEC. 133. COMPETITION REQUIREMENTS.

    (a) Indefinite Quantity and Delivery Contracts.--Section 8(a)(1)(D) 
of the Small Business Act (15 U.S.C. 637(a)(1)(D)) is amended--
            (1) by redesignating clause (ii) as clause (iv); and
            (2) by inserting after clause (i) the following new clause:
    ``(ii) Whenever a requirements-type contract (including a task 
order contract, indefinite quantity contract, or indefinite delivery 
contract) is to be awarded, the thresholds for competition required 
under clause (i)(II) shall be calculated on the basis of the estimated 
total value of the contract.''.
    (b) Authorization for Additional Noncompetitive Contract Awards.--
Section 8(a)(1)(D) of the Small Business Act (15 U.S.C. 637(a)(1)(D)) 
is amended by inserting after clause (ii) (as added by subsection (a)) 
the following new clause:
            ``(iii) The Associate Administrator for Minority Enterprise 
        Development, on a nondelegable basis, may authorize the 
        noncompetitive award of contracts in excess of the amounts 
        specified in clause (i)(II) to a Program Participant, if--
                    ``(I) such Program Participant is an emerging small 
                business concern;
                    ``(II) the award of such contracts would contribute 
                substantially to the development of the Program 
                Participant in accordance with its business plan, 
                including attainment of the business activity targets 
                established pursuant to section 7(j)(10)(I), by the 
                time such firm enters the transitional stage;
                    ``(III) the award value of the contract does not 
                exceed twice the amounts specified in clause (i)(II); 
                and
                    ``(IV) the aggregate dollar value of awards 
                pursuant to this clause does not exceed $20,000,000.''.

SEC. 134. STANDARD INDUSTRIAL CLASSIFICATION CODES.

    (a) Approval of Codes.--As part of the process of developing and 
maintaining a business plan pursuant to section 7(j)(10)(D) of the 
Small Business Act, a Program Participant may designate its 
capabilities to perform contracting opportunities under one or more 
standard industrial classification codes.
    (b) Determinations by Procuring Agency Regarding Applicable 
Standard Industrial Classification Code.--The standard industrial 
classification code assigned to a contracting opportunity by the 
responsible contracting officer shall apply, unless modified by the 
contracting officer after considering additional information furnished 
by the Administration or from other sources.
    (c) Effect of Responsibility Determinations.--The Administration 
shall be bound by a determination of responsibility by the agency 
contracting officer with respect to a Program Participant being 
considered for award of a contract pursuant to section 8(a) of the 
Small Business Act.
    (d) Conforming Amendment.--Section 8(a)(7) of the Small Business 
Act (15 U.S.C. 637(a)(7)) (as amended by section 132(b)(2)) is amended 
to read as follows:
    ``(7) [Reserved].''.

SEC. 135. USE OF CONTRACT SUPPORT LEVELS.

    Section 7(j)(10)(D) of the Small Business Act (15 U.S.C. 
636(j)(10)(D)) is amended by adding at the end the following new 
clause:
    ``(v) The forecasts of overall business activity contained in the 
business plan of a Program Participant or the estimate contained in the 
section 8(a) contract support level of such firm shall not be used by 
the Administration to make a determination that such firm is ineligible 
for the award of a contract to be awarded pursuant to section 8(a).''.

SEC. 136. BUSINESS MIX REQUIREMENTS.

    Section 7(j)(10) of the Small Business Act (15 U.S.C. 636(j)(10)) 
is amended--
            (1) in subparagraph (D)--
                    (A) in clause (iii), by striking ``contracts 
                awarded'' and inserting ``contracts awarded 
                noncompetitively''; and
                    (B) in clause (iv)(I), by striking ``contracts 
                awarded'' and inserting ``contracts awarded 
                noncompetitively''; and
            (2) in subparagraph (I)--
                    (A) in clause (i)--
                            (i) by striking ``for contracts awarded 
                        other than pursuant to section 8(a)'' and 
                        inserting ``through contracts other than 
                        contracts awarded noncompetitively pursuant to 
                        section 8(a)''; and
                            (ii) by striking ``will engage a'' and 
                        inserting ``will engage in a'';
                    (B) in clause (iii)--
                            (i) by redesignating subclauses (II) 
                        through (V) as subclauses (III) through (VI), 
                        respectively;
                            (ii) by striking subclause (I) and 
                        inserting the following:
                    ``(I) establish business activity targets 
                applicable to Program Participants during each year of 
                Program participation, which reflect a consistent 
                increase in new contracts awarded other than pursuant 
                to section 8(a), so that not more than 20 percent of 
                the dollar value of the Program Participant's business 
                base (as a percentage of total sales) at the beginning 
                of the ninth year of Program participation is derived 
                from contracts awarded pursuant to section 8(a);
                    ``(II) provide that the business activity targets 
                established pursuant to subclause (I) reflect that not 
                more than 50 percent of the dollar value of the new 
                contracts awarded during the fifth and succeeding years 
                of Program Participation be awarded pursuant to section 
                8(a) on a noncompetitive basis;'';
                            (iii) by striking subclause (IV), as 
                        redesignated, and inserting the following:
                    ``(IV) require that a Program Participant in the 
                transitional stage of Program participation certify 
                compliance with its business activity targets (or with 
                any program of remedial measures that may have been 
                imposed pursuant to subclause (VI) for failing to 
                attain such targets) to eligible for award of a 
                contract pursuant to section 8(a);'';
                            (iv) in subclause (V), as redesignated, by 
                        striking ``and'' at the end;
                            (v) by striking subclause (VI), as 
                        redesignated, and inserting the following:
                    ``(VI) authorize the Administration to require a 
                Program Participant that has failed to attain a 
                business activity target to undertake a program of 
                remedial measures designed to assist the firm to reduce 
                its dependence on contracts awarded pursuant to section 
                8(a); and''; and
                            (vi) by adding at the end the following new 
                        subclause:
                    ``(VII) authorize the Administration to limit the 
                dollar volume of contracts awarded to the Program 
                Participant pursuant to section 8(a), especially those 
                awarded noncompetitively, if the firm has not made 
                substantial progress toward attaining its business 
                activity targets.''; and
                    (C) by adding at the end the following new clause:
            ``(iv) Actions by the Administration relating to enforcing 
        compliance with business activity targets shall not be 
        reviewable pursuant to section 8(a)(19), unless such action is 
        a termination from further Program participation.''.

SEC. 137. ENCOURAGING SELF-MARKETING.

    (a) Elimination of Regulatory Limitations.--In accordance with the 
schedule for the issuance of revised regulations contained in section 
601(a), the Administration shall promulgate such regulations as may be 
necessary to eliminate regulatory limitations on self-marketing by 
Program Participants, including limitations relating to so-called 
``National Buys'' and ``Local Buys''.
    (b) Conforming Amendment.--Section 8(a)(11) of the Small Business 
Act (15 U.S.C. 637(a)(11)) is amended to read as follows:
            ``(11) [Reserved].''.

SEC. 138. BUNDLING OF CONTRACTOR CAPABILITIES.

    (a) In General.--Section 8(a)(14) of the Small Business Act (15 
U.S.C. 637(a)(14)) is amended to read as follows:
            ``(14)(A) Except as provided in subparagraph (B), a 
        contract shall not be awarded pursuant to this subsection 
        unless the small business concern complies with the 
        requirements of section 15(o).
            ``(B)(i) Whenever the Administration determines that a 
        proposed contract opportunity represents a bundling of contract 
        requirements as defined by section 3(n), a Program Participant 
        may propose a team of subcontractors meeting the requirements 
        of clause (ii) without regard to the requirements of section 
        15(o) or regulations of the Administration regarding findings 
        of affiliation or control, either direct or indirect.
            ``(ii) The subcontracting team proposed by a Program 
        Participant may include--
                    ``(I) other Program Participants;
                    ``(II) other small business concerns;
                    ``(III) business concerns other than small business 
                concerns, whose aggregate participation may not 
                represent more than 25 percent of the anticipated total 
                value of the contract; and
                    ``(IV) historically black colleges and universities 
                and other minority institutions.''.
    (b) Definition.--Section 3 of the Small Business Act (15 U.S.C. 
632) is amended by adding at the end the following new subsection:
    ``(n) Contract Bundling.--For purposes of contracting opportunities 
subject to sections 8(a) and 15, the terms `contract bundling' and 
`bundling of contract requirements' mean the practice of consolidating 
two or more procurement requirements of the type that were previously 
solicited and awarded as separate smaller contracts into a single large 
contract solicitation likely to be unsuitable for award to a small 
business concern due to--
            ``(1) the diversity and size of the elements of performance 
        specified;
            ``(2) the aggregate dollar value of the anticipated award;
            ``(3) the geographical dispersion of the contract 
        performance sites; or
            ``(4) any combination of the factors described in 
        paragraphs (1), (2), and (3).''.
    (c) Conforming Amendment.--Section 15(a) of the Small Business Act 
(15 U.S.C. 644(a)) is amended by striking ``If a proposed procurement'' 
and all that follows through ``prime contract participation unlikely,'' 
and inserting the following: ``If a proposed procurement represents a 
bundling of contract requirements, as defined in section 3(n),''.

                  PART E--TRIBALLY OWNED CORPORATIONS

SEC. 141. MANAGEMENT AND CONTROL OF BUSINESS OPERATIONS.

    Section 8(a)(4)(B)(ii) of the Small Business Act (15 U.S.C. 
637(a)(4)(B)(ii)) is amended to read as follows:
            ``(ii) in the case of a tribally owned corporation, an 
        individual designated by the Indian tribe (or the board of 
        directors of a wholly owned entity of such tribe), who shall be 
        a Native American if such individual is available; or''.

SEC. 142. JOINT VENTURES.

    (a) In General.--Section 8(a)(15) of the Small Business Act (15 
U.S.C. 637(a)(15)) is amended to read as follows:
    ``(15)(A) Except as provided in subparagraph (B), a contract may be 
awarded pursuant to this subsection to a joint venture owned and 
controlled by a Program Participant, notwithstanding the size status of 
such joint venture, if the Program Participant--
            ``(i) is owned and controlled by an Indian tribe;
            ``(ii) owns at least 51 percent of the joint venture;
            ``(iii) is located and performs most of its activities on 
        the reservation of such Indian tribe; and
            ``(iv) employs members of such tribe for at least 50 
        percent of the work force of such joint venture.
    ``(B) A contract may not be awarded to a joint venture pursuant to 
subparagraph (A) if an Indian tribe owns and controls one or more 
Program Participants who are currently joint venturers on more than 5 
contracts awarded pursuant to subparagraph (A).''.
    (b) Definitions.--
            (1) Indian tribe.--Section 3 of the Small Business Act (15 
        U.S.C. 632) (as amended by section 139(b)) is amended by adding 
        at the end the following new subsection:
    ``(o) Indian Tribe.--For purposes of this Act, the term `Indian 
tribe' means an Indian tribe, band, nation, or other organized group or 
community of Indians, including any Alaska Native village or regional 
or village corporation (as defined in section 3 of the Alaska Native 
Claims Settlement Act that--
            ``(1) is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians; or
            ``(2) is recognized as such by the State in which such 
        tribe, band, nation, group, or community resides.''.
            (2) Native hawaiian organization.--Section 3 of the Small 
        Business Act (15 U.S.C. 632) (as amended by paragraph (1)) is 
        amended by adding at the end the following new subsection:
    ``(p) Native Hawaiian Organization.--For purposes of this Act, the 
term `Native Hawaiian organization' means a community service 
organization serving Native Hawaiians in the State of Hawaii that is--
            ``(1) a not-for-profit organization chartered by the State 
        of Hawaii;
            ``(2) controlled by Native Hawaiians; and
            ``(3) engaged in business activities that will principally 
        benefit such Native Hawaiians.''.
            (3) Conforming amendment.--Section 8(a)(13) of the Small 
        Business Act (15 U.S.C. 637(a)(13)) is amended to read as 
        follows:
    ``(13) [Reserved].''.

SEC. 143. RULE OF CONSTRUCTION REGARDING THE BUY INDIAN ACT.

    A contract awarded pursuant to section 8(a) of the Small Business 
Act to a small business concern owned and controlled by members of an 
Indian tribe (or a wholly owned business entity of such tribe) shall be 
considered to be in compliance with section 23 of the Act of June 25, 
1910 (25 U.S.C. 47).

                PART F--CONTRACT ADMINISTRATION MATTERS

SEC. 151. ACCELERATED PAYMENT.

    Section 8(a)(1) of the Small Business Act (15 U.S.C. 637(a)(1)) is 
amended by adding at the end the following new subparagraph:
    ``(E)(i) Any contract awarded pursuant to subparagraph (B) to a 
Program Participant in the developmental stage of the Program shall 
include a payment term requiring payment of any invoice, progress 
payment request, or other authorized request for payment, not later 
than 20 days after receipt of a proper invoice or other form of payment 
request.''.

SEC. 152. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION MATTERS.

    Section 8(a)(1)(E) of the Small Business Act (15 U.S.C. 
637(a)(1)(E)) (as added by section 151) is amended by adding at the end 
the following new clause:
    ``(ii)(I) A Federal agency awarding a contract under this 
subsection shall make every reasonable effort to respond in writing to 
any written request made to a contracting officer with respect to a 
matter relating to the administration of such contract, not later than 
15 days such request.
    ``(II) If the contracting officer is unable to reply before the 
expiration of the 15-day period described in subclause (I), the 
contracting officer shall transmit to the contractor within such period 
a written notification of a specific date by which the contracting 
officer expects to respond.
    ``(III) The provisions of this subparagraph do not apply to a 
request for a contracting officer's decision under the Contract 
Disputes Act of 1978 nor create any new rights pursuant to such Act.''.

SEC. 153. AVAILABILITY OF ALTERNATIVE DISPUTE RESOLUTION.

    Section 8(a)(1)(E) of the Small Business Act (15 U.S.C. 
637(a)(1)(E)) (as amended by sections 151 and 152) is amended by adding 
at the end the following new clause:
    ``(iii)(I) Except as provided in subclause (II), an agency awarding 
a contract pursuant to subparagraph (B) shall make available, upon the 
request of a Program Participant, an alternative means of dispute 
resolution pursuant to subchapter IV of chapter 5, of title 5, United 
States Code.
    ``(II) In carrying out this clause, the agency need not provide an 
alternative dispute resolution procedure if the agency makes a written 
determination, supported by specific findings, citing one or more of 
the conditions in section 572(b) of title 5, United States Code, or 
such other specific reasons, that alternative dispute resolution 
procedures are inappropriate for the resolution of the dispute for 
which such procedures were sought under the contract.''.

                     PART G--PROGRAM ADMINISTRATION

SEC. 161. SIMPLIFICATION OF ANNUAL REPORT TO CONGRESS.

    Section 7(j)(16)(B)(v) of the Small Business Act (15 U.S.C. 
636(j)(16)(B)(v)) is amended to read as follows:
    ``(v) The total dollar value of receipts received during the most 
recently completed program year from contracts awarded pursuant to 
section 8(a), and such amount expressed as a percentage of the total 
sales of--
            ``(I) all firms participating in the Program during the 
        preceding fiscal year; and
            ``(II) firms in each of the 9 years of Program 
        participation.''.

SEC. 162. REDUCTION IN REPORTING BY PROGRAM PARTICIPANTS.

    Section 8(a)(20)(A) of the Small Business Act (15 U.S.C. 
637(a)(20)(A)) is amended by striking ``semiannually report'' and 
inserting ``report, not less often than annually,''.

   TITLE II--CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS

                   PART A--CIVILIAN AGENCIES PROGRAM

SEC. 201. PROCUREMENT PROCEDURES.

    Section 8(c) of the Small Business Act (15 U.S.C. 637(c)) is 
amended to read as follows:
    ``(c) Procurement Procedures.--
            ``(1) In general.--For the purpose of attaining an agency's 
        goal for the participation of small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals pursuant to section 15(g)(1), the head of a 
        participating executive agency may enter into contracts using--
                    ``(A) less than full and open competition, by 
                restricting the competition for such awards to small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals as defined in 
                subsection (d)(3)(C); and
                    ``(B) a price evaluation preference, of not to 
                exceed 10 percent, when evaluating an offer received 
                from such a small business concern as the result of an 
                unrestricted solicitation.
            ``(2) Definition.--For the purposes of this subsection, the 
        term `participating executive agency' means a Federal agency, 
        as defined in section 3(b), in the executive branch of the 
        Federal Government, other than the Department of Defense.''.

SEC. 202. IMPLEMENTATION THROUGH THE FEDERAL ACQUISITION REGULATION.

    (a) In General.--The Federal Acquisition Regulation shall be 
amended to provide uniform implementation by each executive agency 
choosing to participate in the program authorized in section 8(c) of 
the Small Business Act (as amended by section 201).
    (b) Matters To Be Addressed.--The provisions of the Federal 
Acquisition Regulation prescribed pursuant to subsection (a) shall 
include--
            (1) conditions for the use of advance payments;
            (2) provisions for contract payment terms that provide 
        for--
                    (A) accelerated payment for work performed during 
                the period for contract performance; and
                    (B) full payment for work performed;
            (3) guidance on how contracting officers may use, in 
        solicitations for various classes of products or services, a 
        price evaluation preference pursuant to section 8(c)(1)(B) of 
        the Small Business Act (as amended by section 201) to provide a 
        reasonable advantage to small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals without effectively eliminating any participation 
        of other small business concerns; and
            (4)(A) procedures for a person to request the head of a 
        Federal agency to determine whether the use of competitions 
        restricted to small business concerns owned and controlled by 
        socially and economically disadvantaged individuals at a 
        contracting activity of such agency has caused a particular 
        industry category to bear a disproportionate share of the 
        contracts awarded to attain the goal established for that 
        contracting activity; and
            (B) guidance for limiting the use of such restricted 
        competitions in the case of any contracting activity and class 
        of contracts determined in accordance with such procedures to 
        have caused a particular industry category to bear a 
        disproportionate share of the contracts awarded to attain the 
        goal established for that contracting activity.

SEC. 203. SUNSET.

    The amendments made by section 201 shall cease to be effective on 
October 1, 2000.

          PART B--ELIGIBILITY DETERMINATIONS REGARDING STATUS

SEC. 211. IMPROVED STATUS PROTEST SYSTEM.

    Section 7(j)(10)(J) of the Small Business Act (15 U.S.C. 
636(j)(10)(J)) is amended by striking clause (ii) and inserting the 
following new clauses:
    ``(ii) A protest may be brought regarding a self-certification by a 
business concern regarding its status as a small business concern owned 
and controlled by socially and economically disadvantaged individuals 
by--
            ``(I) another person with a direct economic interest in the 
        award of the contract or subcontract under which such business 
        has allegedly made the false certification regarding its status 
        as a small business concern owned and controlled by socially 
        and economically disadvantaged individuals;
            ``(II) a prime contractor receiving specific and credible 
        information that an actual or prospective subcontractor or 
        supplier has falsely certified its status as a small business 
        concern owned and controlled by socially and economically 
        disadvantaged individuals;
            ``(III) a contracting officer receiving a self-
        certification regarding an actual or prospective contractor's 
        status, which such officer reasonably believes to be false; or
            ``(IV) the Associate Deputy Administrator for Minority 
        Enterprise Development and Government Contracting of the Small 
        Business Administration (or any successor position).
    ``(iii) The Office of Hearings and Appeals shall hear appeals 
regarding the status of a concern as a small business concern owned and 
controlled by socially and economically disadvantaged individuals for 
purposes of any program or activity conducted under section 8(d) or any 
other Federal law that refers to such section for a definition of 
program eligibility.
    ``(iv) A decision issued pursuant to clause (iii) shall--
            ``(I) be made available to all parties to the proceeding;
            ``(II) be published in full text; and
            ``(III) include findings of fact and conclusions of law, 
        with specific reasons supporting such findings and conclusions, 
        on each material issue of fact and law of decisional 
        significance regarding the disposition of the protest.
    ``(v) A decision issued pursuant to clause (iii) shall be 
considered a final agency action, and shall be subject to judicial 
review under section 553 of title 5, United States Code.
    ``(vi) If a firm engages in a pattern of misrepresentations 
regarding the status of the firm in violation of section 16(d)(1), the 
Administration or the aggrieved executive agency shall initiate an 
action to impose an appropriate penalty under section 16(d)(2).''.

SEC. 212. CONFORMING AMENDMENT.

    Section 7(j)(11)(F) of the Small Business Act (15 U.S.C. 
636(j)(11)(F)) is amended by--
            (1) striking clause (vii); and
            (2) redesignating clause (viii) as clause (vii).

           TITLE III--EXPANDING SUBCONTRACTING OPPORTUNITIES

SEC. 301. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING CONTRACTS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended--
            (1) in paragraph (4), by striking subparagraphs (A) through 
        (D) and inserting the following:
    ``(4)(A) Each solicitation for the award of a contract (or 
subcontract) with an anticipated value of $1,000,000, in the case of a 
contract for construction (including repair, alteration, or demolition 
of existing construction) or $500,000, in the case of a contract for 
all other types of services or supplies, that can reasonably be 
expected to offer opportunities for subcontracting, shall--
            ``(i) in the case of a Federal contract to be competitively 
        awarded, include solicitation provisions described in 
        subparagraph (B);
            ``(ii) in the case of a Federal contract to be 
        noncompetitively awarded, require submission and acceptance of 
        a subcontracting plan pursuant to subparagraph (C); and
            ``(iii) in the case of a subcontract award, require 
        submission and acceptance of a subcontracting plan pursuant to 
        subparagraph (D).
    ``(B) With respect to subcontract participation by small business 
concerns and small business concerns owned and controlled by socially 
and economically disadvantaged individuals, the solicitation shall--
            ``(i) specify minimum percentages for subcontract 
        participation for an offer to be considered responsive whenever 
        practicable;
            ``(ii) assign a weight of not less than the numerical 
        equivalent of 5 percent of the total of all evaluation factors 
        to a contract award evaluation factor that recognizes 
        incrementally higher subcontract participation rates in excess 
        of the minimum percentages;
            ``(iii) require the successful offeror to submit a 
        subcontracting plan that incorporates the information described 
        in paragraph (6); and
            ``(iv) assign a significant weight in any evaluation of 
        past performance by the offerors in attaining subcontract 
        participation goals.
    ``(C)(i) Each small business concern apparent successful offeror 
shall negotiate--
            ``(I) a goal for the participation of small business 
        concerns and for the participation of small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals; and
            ``(II) a plan for the attainment of the goals that 
        incorporates the information prescribed in paragraph (6).
    ``(ii) The goals and plan shall reflect the maximum practicable 
opportunity for participation of small business concerns in the 
performance of the contract, considering the matters described in 
subparagraph (F)(iii). If, within the time limits prescribed in the 
Federal acquisition regulations, the apparent successful offeror fails 
to negotiate such a subcontracting plan, such offeror shall be 
ineligible for contract award.
    ``(D) An apparent subcontract awardee shall negotiate with the 
prime contractor (or higher-tier subcontractor) a goal for the 
participation of small business concerns and for the participation of 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals, and a plan for the attainment 
of those goals which incorporates the information prescribed in 
paragraph (6). Such goals and plan shall reflect the maximum 
practicable opportunity for participation of such small business 
concerns in the performance of the contract, considering the matters 
described in subparagraph (F)(iii).'';
            (2) by striking paragraph (5) and inserting the following:
    ``(5) [Reserved].''; and
            (3) in paragraph (6)--
                    (A) by redesignating subparagraphs (B) through (F) 
                as subparagraphs (C) through (G), respectively; and
                    (B) by inserting the following new subparagraph 
                (B):
            ``(B)(i) a listing of the small business subcontractors 
        (including suppliers) who have actual or contingent awards for 
        participation in the performance of the contract, identifying 
        the work to be performed and the anticipated award value of the 
        subcontracts; and
            ``(ii) assurances that the listing of small business 
        subcontractors described in clause (i) will be regularly 
        revised to identify firms that have been removed from or 
        substituted for previously listed firms, and annotated to 
        reflect the reasons for any removal or substitution;''.

SEC. 302. SUBCONTRACTING GOALS FOR CERTAIN SMALL BUSINESS CONCERNS.

    Section 8(d)(7) of the Small Business Act (15 U.S.C. 637(d)(7)) is 
amended to read as follows:
    ``(7)(A) Except as provided in subparagraph (B), paragraphs (4), 
(5), and (6) shall not apply to offerors who are small business 
concerns.
    ``(B) A small business concern owned and controlled by socially and 
economically disadvantaged individuals shall be required to negotiate a 
subcontracting plan for the use of emerging small business concerns 
owned and controlled by socially and economically disadvantaged 
individuals, if--
            ``(i) the prime contract was awarded pursuant to--
                    ``(I) subsection (a) or (c) of section 8;
                    ``(II) section 2323 of title 10, United States 
                Code; or
                    ``(III) any law that authorizes the award of a 
                Federal contract as the result of a competition 
                restricted to small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals as defined in section 8(d)(3)(C);
            ``(ii) the anticipated total value of the contract exceeds 
        $20,000,000; and
            ``(iii) subcontracting opportunities are expected.''.

SEC. 303. SMALL BUSINESS PARTICIPATION GOALS.

    Section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)) is 
amended by striking ``20 percent'' and inserting ``25 percent''.

SEC. 304. IMPROVED NOTICE OF SUBCONTRACTING OPPORTUNITIES.

    (a) Use of the Commerce Business Daily Authorized.--Section 8 of 
the Small Business Act (15 U.S.C. 637) is amended by adding at the end 
the following new subsection:
    ``(k) Notices of Subcontracting Opportunities.--
            ``(1) In general.--Notices of subcontracting opportunities 
        may be submitted for publication in the Commerce Business Daily 
        by--
                    ``(A) a business concern awarded a contract by an 
                executive agency subject to subsection (e)(1)(C); and
                    ``(B) a business concern which is a subcontractor 
                or supplier (at any tier) to a contractor required to 
                have a subcontracting plan pursuant to subsection (d) 
                having a subcontracting opportunity in excess of 
                $100,000.
            ``(2) Contents 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 the receipt of offers.''.
    (b) Regulations Required.--The Federal Acquisition Regulation shall 
be amended to provide uniform implementation of the amendments made by 
this section.
    (c) Conforming Amendment.--Section 8(e)(1)(C) of the Small Business 
Act (15 U.S.C. 637(e)(1)(C)) is amended by striking ``$25,000'' each 
place it appears and inserting ``$100,000''.

               TITLE IV--REPEALS AND TECHNICAL AMENDMENTS

                            PART A--REPEALS

SEC. 401. LOAN PROGRAM SUPERSEDED BY SECTION 7(a) LOAN PROGRAM.

    (a) In General.--Section 7(i) of the Small Business Act (15 U.S.C. 
636(i)) is amended to read as follows:
    ``(i) [Reserved].''.
    (b) Conforming Amendments.--The Small Business Act (15 U.S.C. 601 
et seq.) is amended--
            (1) in section 2(d)(1), by striking ``sections 7(i) and 
        7(j)'' and inserting ``section 7(j)'';
            (2) in section 4(c)(2), by striking ``7(i),'';
            (3) in section 5(e)(3), by striking ``sections 7(a)(4)(C) 
        and 7(i)(1)'' and inserting ``section 7(a)(4)(C)'';
            (4) in section 7(j), by striking ``sections 7(i), 7(j)(10), 
        and 8(a)'' each place it appears and inserting ``paragraph (10) 
        and section 8(a)''; and
            (5) in section 7(k), by striking ``sections 7(i), 7(j)(10), 
        and 8(a)'' and inserting ``subsection (j)(10) and section 
        8(a)''.

SEC. 402. SUPERSEDED LOAN PROGRAM RELATING TO ENERGY.

    (a) In General.--Section 7(l) of the Small Business Act (15 U.S.C. 
636(l)) is amended to read as follows:
    ``(l) [Reserved].''.
    (b) Conforming Amendments.--Section 4(c)(2) of the Small Business 
Act (15 U.S.C. 601 et seq.) is amended by striking ``7(l),''.

SEC. 403. EMPLOYEE TRAINING PROGRAM OF LIMITED SCOPE.

    Section 15(j)(13)(E) of the Small Business Act (15 U.S.C. 
644(j)(13)(E)) is amended to read as follows:
            ``(E) [Reserved].''.

SEC. 404. EXPIRED PROVISION.

    Section 8(a)(2) of the Small Business Act (15 U.S.C. 637(a)(2)) is 
amended to read as follows:
    ``(2) [Reserved].''.

SEC. 405. EXPIRED DIRECTION TO THE ADMINISTRATION.

    Section 303(f) of the Business Opportunity Development Reform Act 
of 1988 (15 U.S.C. 637 note) is repealed.

                      PART B--TECHNICAL AMENDMENTS

SEC. 411. TECHNICAL AMENDMENTS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 8(d)(10)(C) (15 U.S.C. 637(d)(10)(C)), by 
        striking ``in the case contractors'' and inserting ``in the 
        case of contractors'';
            (2) in section 10--
                    (A) in subsection (a), by striking ``the Senate 
                Select Committee on Small Business''; and
                    (B) in subsection (b), by striking ``to the Senate 
                Select Committee on Small Business, and to the 
                Committee on Small Business of the House of 
                Representatives'' and inserting ``to the Committees on 
                Small Business of the Senate and House of 
                Representatives''; and
            (3) in section 15(g)(1)--
                    (A) in the first sentence, by striking ``The 
                President'' and inserting ``(A) The President'';
                    (B) by striking the second and third sentences and 
                inserting the following:
    ``(B) The Governmentwide goals established pursuant to subparagraph 
(A) shall be--
            ``(i) for small business concerns, 20 percent of the total 
        prime contracts for the fiscal year; and
            ``(ii) for small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, 8 percent 
        of the total value of all prime contracts and subcontracts for 
        the fiscal year.'';
                    (C) in the fourth sentence, by striking 
                ``Notwithstanding the Government-wide goal'' and 
                inserting the following:
    ``(C) Notwithstanding the Governmentwide goal'';
                and
                    (D) in the fifth sentence, by striking ``The 
                Administration'' and inserting the following:
    ``(D) The Administration''.

                          TITLE V--DEFINITIONS

SEC. 501. HISTORICALLY UNDERUTILIZED BUSINESSES.

    (a) Definition.--Section 8(a)(4)(A) of the Small Business Act (15 
U.S.C. 637(a)(4)(A)) is amended by striking ``socially and economically 
disadvantaged small business concern'' and inserting ``historically 
underutilized business''.
    (b) Technical Amendment.--Section 9(j)(2)(F) of the Small Business 
Act (15 U.S.C. 638(j)(2)(F)) is amended by striking ``socially and 
economically disadvantaged small business concerns, as defined in 
section 8(a)(A)'' and inserting ``small business concerns owned and 
controlled by socially and economically disadvantaged individuals''.

SEC. 502. EMERGING SMALL BUSINESS CONCERN.

    (a) In General.--Section 3 of the Small Business Act (15 U.S.C. 
631) is amended by adding at the end the following new subsection:
    ``(q) Emerging Small Business Concern.--For purposes of sections 8 
and 15, the term `emerging small business concern' means a small 
business concern the size of which is less than or equal to 25 percent 
of the numerical size standard for--
            ``(1) in the case of a contracting opportunity being 
        awarded by the Government, the standard industrial 
        classification code assigned by a contracting officer; or
            ``(2) in all other cases, the standard industrial 
        classification that encompasses the principal line of business 
        of the business concern.''.
    (b) Delayed Applicability to the Small Business Competitiveness 
Demonstration Program.--For the purposes of the Small Business 
Competitiveness Demonstration Program, the amendment made by subsection 
(a) shall not supersede the definition of ``emerging small business 
concern'' provided in section 718(b) of the Small Business 
Competitiveness Demonstration Program Act of 1988.

        TITLE VI--REGULATORY IMPLEMENTATION AND EFFECTIVE DATES

           PART A--ASSURING TIMELY REGULATORY IMPLEMENTATION

SEC. 601. DEADLINES FOR ISSUANCE OF REGULATIONS.

    (a) Proposed Regulations.--Proposed amendments to the Federal 
Acquisition Regulation or proposed Small Business Administration 
regulations shall be published not later than 120 days after the date 
of enactment of this Act for the purpose of obtaining public comment 
pursuant to either section 22 of the Office of Federal Procurement 
Policy Act or chapter 5 of title 5, United States Code, as appropriate. 
The public shall be afforded not less than 60 days to submit comments.
    (b) Final Regulations.--Final regulations shall be published and 
become effective not later than 270 days after the date of enactment of 
this Act.

SEC. 602. REGULATORY IMPLEMENTATION OF PRIOR LEGISLATION.

    (a) Proposed Regulations.--Proposed amendments to the Federal 
Acquisition Regulation or the Small Business Administration regulations 
pertaining to the statutory provisions listed in subsection (c) shall 
be published not later than 30 days after the date of enactment of this 
Act for the purpose of obtaining public comment pursuant to either 
section 22 of the Office of Federal Procurement Policy Act or chapter 5 
of title 5, United States Code, as appropriate. The public shall be 
afforded not less than 60 days to submit comments.
    (b) Final Regulations.--Final regulations implementing the 
amendments made by this Act shall be published and shall take effect 
not later than 120 days after the date of enactment of this Act.
    (c) Delayed Regulations.--
            (1) Section 203 of the Small Business Administration 
        Reauthorization and Amendments Act of 1990 (15 U.S.C. 637 note; 
        104 Stat. 2818).
            (2) Section 221 of the Small Business Credit and Business 
        Opportunity Enhancement Act of 1992 (15 U.S.C. 636 note; 106 
        Stat. 999).
            (3) Section 222 of the Small Business Credit and Business 
        Opportunity Enhancement Act of 1992 (15 U.S.C. 632 note; 106 
        Stat. 999).

                        PART B--EFFECTIVE DATES

SEC. 611. EFFECTIVE DATES.

    (a) Effective Date of Act.--Except as provided in subsection (b), 
this Act shall take effect on the date of the enactment of this Act.
    (b) Amendments Requiring Implementing Regulations.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this Act which require the issuance of 
        regulations shall take effect on the date on which final 
        implementing regulations are prescribed in accordance with 
        section 601.
            (2) Exceptions.--The amendments made by sections 101, 102, 
        111, 112, 114, 115, 122, 133, 134, 135, 136, 138, 141, 142, 
        143, 161, 162, and 211 shall take effect on the date of 
        enactment of this Act.

            Passed the Senate October 7 (legislative day, September 
      12), 1994.

            Attest:MARTHA S. POPE,

                                                             Secretary.