[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3994 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3994

To amend the Small Business Act to provide comprehensive and structured 
  business development assistance to emerging small business concerns 
    owned by economically disadvantaged individuals to foster their 
 entrepreneurial potential and marketplace success, without relying on 
  preferential award of Government contracts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1996

Mrs. Meyers of Kansas introduced the following bill; which was referred 
                   to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To amend the Small Business Act to provide comprehensive and structured 
  business development assistance to emerging small business concerns 
    owned by economically disadvantaged individuals to foster their 
 entrepreneurial potential and marketplace success, without relying on 
  preferential award of Government contracts, 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 ``Entrepreneur Development Program Act 
of 1996''.

SEC. 2. ENTREPRENEUR DEVELOPMENT PROGRAM.

    Section 7(j) of the Small Business Act (15 U.S.C. 636(j)) is 
amended to read as follows:
    ``Sec. 7(j) Entrepreneur Development Program.--
            ``(1) Program established.--There is established within the 
        Administration an Entrepreneur Development Program (hereinafter 
        referred to as the `Program'). The Program shall provide 
        comprehensive and structured business development assistance to 
        foster the entrepreneurial potential of emerging small business 
        concerns owned and controlled by eligible individuals. The 
        Program shall be managed by an Associate Administrator under 
        the supervision of, and responsible to, the Administrator.
            ``(2) Eligibility.--
                    ``(A) In general.--The Program established by 
                paragraph (1) shall be available exclusively to 
                emerging small business concerns owned and controlled 
                by eligible individuals, whose status as such has been 
                certified by the Administration.
                    ``(B) Program participant.--The term `Program 
                Participant' means an emerging small business concern, 
                meeting the requirements of subparagraph (C), which
                            ``(i) is at least 51 percent 
                        unconditionally owned by
                                    ``(I) one or more eligible 
                                individuals,
                                    ``(II) an Indian tribe (or a wholly 
                                owned business entity of such tribe), 
                                or
                                    ``(III) a Native Hawaiian 
                                organization, or
                            ``(ii) in the case of any publicly-owned 
                        business, at least 51 percent of the stock of 
                        such concern is unconditionally owned by
                                    ``(I) one or more eligible 
                                individuals,
                                    ``(II) an Indian tribe (or a wholly 
                                owned business entity of such tribe), 
                                or
                                    ``(III) a Native Hawaiian 
                                organization.
                    ``(C) Control of daily business operations.--A 
                concern meets the requirements of this subparagraph if 
                the management and daily business operations of such 
                concern are controlled by one or more eligible 
                individuals, an Indian tribe, or a Native Hawaiian 
                organization.
                    ``(D) Emerging small business concern.--For the 
                purposes of this subsection, 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 the standard industrial 
                classification that encompasses the principal line of 
                business of such concern.
                    ``(E) Eligible individual.--For participation in 
                the program, an individual must not have a net worth in 
                excess of $250,000, excluding from such computation the 
                value of the person's investment in the emerging small 
                business concern that will participate in the Program.
            ``(3) Outreach for program participants.--The 
        Administration shall develop and implement an outreach program 
        to inform and recruit eligible concerns to apply for the 
        Program. Such outreach program shall make a sustained and 
        substantial effort to solicit Program applications from small 
        business concerns located within States having relatively few 
        Program Participants.
            ``(4) Determinations of individual eligibility.--
                    ``(A) Division of program certification and 
                eligibility established.--There is established a 
                Division of Program Certification and Eligibility 
                (hereinafter referred to as the `Division'). The 
                Division shall be headed by a Director who shall report 
                to the Associate Administrator responsible for the 
                Program.
                    ``(B) Responsibilities of the division.--The 
                responsibilities of the Division are to--
                            ``(i) receive, review, and evaluate 
                        applications for certification as a Program 
                        Participant pursuant to the eligibility 
                        criteria in paragraph (2);
                            ``(ii) advise each Program applicant within 
                        15 days after the receipt of an application as 
                        to whether such application is complete and 
                        suitable for evaluation and, if not, what 
                        matters must be rectified;
                            ``(iii) render recommendations on such 
                        applications to the Associate Administrator for 
                        the Program;
                            ``(iv) review and evaluate financial 
                        statements and other submissions from Program 
                        Participants;
                            ``(v) make requests for the initiation of 
                        termination or graduation proceedings, as 
                        appropriate, to the Associate Administrator;
                            ``(vi) make recommendations to the 
                        Associate Administrator concerning requests for 
                        reconsideration or challenges from applicants 
                        that have been denied program admission; and
                            ``(vii) decide protests regarding the 
                        current eligibility a Program Participant for 
                        continued Program participation.
                    ``(C) Deadline for action on program 
                applications.--Not later than 90 days after receipt of 
                a completed application for Program certification, the 
                Associate Administrator for the Program shall certify a 
                small business concern as a Program Participant or 
                shall deny such application.
                    ``(D) Additional limitations on program 
                eligibility.--
                            ``(i) Except for an Indian tribe or a 
                        Native Hawaiian organization, no individual 
                        upon whom the eligibility of a firm which 
                        graduated from the Minority Small Business and 
                        Capital Ownership Development Program before 
                        the effective date of this subsection shall be 
                        eligible to assert such status with respect to 
                        any other business concern making application 
                        for the Program certification after such 
                        effective date.
                            ``(ii) Except in the case of an Indian 
                        tribe or a Native Hawaiian organization, an 
                        individual upon whom eligibility is based 
                        pursuant to paragraph (2) shall be permitted to 
                        assert such Program eligibility for only one 
                        small business concern.
                            ``(iii) No concern shall be subsequently 
                        recertified for Program participation if its 
                        prior Program participation was concluded for 
                        any of the reasons described in paragraph (9).
            ``(5) Duration of participation.--The term of participation 
        in the Program shall be five years from the date of 
        certification as a Program Participant.
            ``(6) Business planning.--
                    ``(A) Plan required.--Each concern making 
                application to the Program and each Program Participant 
                shall submit to the Administration a business plan 
                (referred to as the `business plan'), addressing the 
                matters described in subparagraph (B).
                    ``(B) Contents of the business plan.--For the 
                purposes of subparagraph (A), a business plan shall 
                include the following:
                            ``(i) An analysis of market potential, 
                        competitive environment, and other business 
                        analyses estimating the firm's prospects for 
                        profitable operations during its Program 
                        participation term and after graduation.
                            ``(ii) An analysis of the firm's business 
                        strengths and weaknesses with particular 
                        attention to correcting any financial, 
                        managerial, technical, or personnel weaknesses 
                        which are likely to impede the business 
                        development of the firm.
                            ``(iii) Specific targets, objectives, and 
                        goals for the firms business development during 
                        the next year and each succeeding year of its 
                        Program participation term and three years 
                        after exiting the Program, utilizing the 
                        results of the analyses conducted pursuant to 
                        clauses (i) and (ii).
                            ``(iv) Continuous attention regarding the 
                        Program Participant's successful transition to 
                        sustainable business operations after exiting 
                        the Program.
                    ``(C) Maintaining a current business plan.--Each 
                Program Participant shall annually review its currently 
                approved plan with its Business Opportunity Specialist 
                and modify such plan as may be appropriate. Any 
                modified plan shall be submitted to the Administration 
                for approval. The currently approved plan shall be 
                considered valid until such time as a modified plan is 
                approved.
            ``(7) Forms of assistance.--
                    ``(A) In general.--The assistance provided to a 
                Program Participant may include--
                            ``(i) developing and maintaining the 
                        Program Participant's business plan;
                            ``(ii) providing access to training and 
                        assistance in general business management 
                        (including, but not limited to, organizational 
                        management, financial management, personnel 
                        management, marketing, and proposal 
                        development);
                            ``(iii) facilitating access to debt 
                        financing through guaranteed loans made 
                        pursuant to section 7(a) and other means;
                            ``(iv) facilitating access to equity 
                        financing through the Small Business Investment 
                        Company Program and other means; and
                            ``(v) facilitating access to adequate 
                        surety bonding through the surety bond 
                        guarantee programs authorized by part B of 
                        title IV of the Small Business Investment Act 
                        of 1958.
                    ``(B) Use of private sector partners.--
                            ``(i) The Administration may provide 
                        financial assistance to public or private 
                        organizations to undertake the activities 
                        described in paragraph (A).
                            ``(ii) Such financial assistance may be 
                        provided through contract, grant or cooperative 
                        agreement, as may be appropriate.
                            ``(iii) The Administration is authorized to 
                        make payments under contracts, grants, or 
                        cooperative agreements entered into under this 
                        paragraph in lump sum or installments, in 
                        advance or by way of reimbursement, making any 
                        necessary adjustments for overpayments or 
                        underpayments.
            ``(8) verification of individual eligibility.--
                    ``(A) Annual certification of ownership and 
                control.--Each Program Participant shall certify, on an 
                annual basis, that it meets the requirements of 
                paragraph (2)(C) regarding ownership and control.
                    ``(B) Annual financial statement.--Each Program 
                Participant shall annually submit to the Administration 
                such information as may be necessary for the 
                Administration to make a determination of continued 
                eligibility for Program participation, including a 
                personal financial statement from each owner.
                    ``(C) Prompt notification of change of ownership 
                required.--A Program Participant shall notify the 
                Administrator 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.
                    ``(D) Special rule for transfers to small business 
                investment companies.--For the purposes of determining 
                ownership and control of a Program Participant, 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 Program 
                eligibility is based.
                    ``(E) Status review.--
                            ``(i) Whenever the Administration has 
                        reason to believe, based upon specific and 
                        credible information, that a Program 
                        Participant no longer meets the requirements 
                        for the Program, the Administration shall 
                        conduct a review, and if appropriate, take 
                        remedial action.
                            ``(ii) If the Administration determines, 
                        pursuant to such review, that a Program 
                        Participant (other than an Indian tribe or a 
                        Native Hawaiian Organization) or its owners are 
                        no longer eligible, a termination proceeding 
                        shall be commenced.
            ``(9) Termination of participation.--
                    ``(A) In general.--A Program Participant shall 
                cease to be a Program Participant, if such firm--
                            ``(i) voluntarily elects not to continue 
                        Program participation;
                            ``(ii) completes its term of Program 
                        participation;
                            ``(iii) is terminated from Program 
                        participation pursuant to a termination 
                        proceeding; or
                            ``(iv) is graduated pursuant to a 
                        graduation proceeding.
                    ``(B) Termination.--
                            ``(i) Definition.--For the purposes of this 
                        subsection, the term `termination' (or 
                        `terminated') means the total denial or 
                        suspension of Program participation prior to 
                        the Program Participant exiting the Program due 
                        to graduation or the expiration of its Program 
                        Participation term.
                            ``(ii) Grounds for termination.--An action 
                        for termination shall be based upon good cause 
                        as specified in implementing regulation, and 
                        shall include--
                                    ``(I) failure of the Program 
                                Participant to maintain its eligibility 
                                for Program participation;
                                    ``(II) a demonstrated pattern of 
                                failing to make required submissions or 
                                responses to the Administration in a 
                                timely manner; or
                                    ``(III) willful violation of any 
                                rule or regulation of the 
                                Administration pertaining to material 
                                issues relating to Program 
                                participation.
                            ``(iii) Termination proceeding.--Whenever 
                        the Administration determines to initiate a 
                        termination proceeding, within 15 days after 
                        making such a determination, the Program 
                        Participant shall be provided a written notice 
                        of intent to terminate, specifying the reasons 
                        for such action. No Program Participant shall 
                        be terminated without first being afforded an 
                        opportunity for a hearing on the record, 
in accordance with chapter 5 of title 5, United States Code.
                    ``(C) Graduation.--
                            ``(i) Definition.--For the purposes of this 
                        subsection, the term `graduation' (or 
                        `graduated') means that the Program Participant 
                        is recognized as successfully completing the 
                        Program by substantially achieving the targets, 
                        objectives, and goals contained in its business 
                        plan, or otherwise demonstrating its ability to 
                        compete in the marketplace.
                            ``(ii) Graduation proceeding.--Whenever the 
                        Administration determines to initiate a 
                        graduation proceeding with which the Program 
                        Participant does not concur, within 15 days 
                        after making such determination, the Program 
                        Participant shall be provided a written notice 
                        of the Administration's intent to involuntarily 
                        graduate the concern, specifying the reasons 
                        for such determination. No Program Participant 
                        shall be involuntarily graduated without first 
                        being offered an opportunity for a hearing on 
                        the record, in accordance with chapter 5 of 
                        title 5, United States Code.
            ``(10) Program management.--
                    ``(A) Management information system.--The 
                Administrator shall develop and implement a process for 
                the systematic collection of data on the operations of 
                the Program, monitoring regularly the effectiveness of 
                the assistance being provided to each Program 
                Participant.
                    ``(B) Annual report to congress.--
                            ``(i) Report required.--Not later than 
                        April 30 of each year, the Administrator shall 
                        submit a report to the Congress on the Program 
                        regarding the effectiveness of the Program in 
                        fostering the entrepreneurial development of 
                        Program Participants.
                            ``(ii) Contents of the report.--In addition 
                        to such performance measures as the 
                        Administrator deems appropriate, the report 
                        shall include the following--
                                    ``(I) The average personal net 
                                worth of individuals who own and 
                                control concerns that were initially 
                                certified for participation in the 
                                Program during the immediately 
                                preceding fiscal year.
                                    ``(II) A compilation and evaluation 
                                of those business concerns that have 
                                exited the Program during the 
                                immediately preceding three fiscal 
                                years. Such compilation and evaluation 
                                shall detail the number of concerns 
                                actively engaged in business 
                                operations, those that have ceased or 
                                substantially curtailed such operations 
                                (including the reasons for such 
                                actions), and those concerns that have 
                                been acquired by other business 
                                concerns or entities.
                                    ``(III) A listing of all 
                                participants in the Program during the 
                                preceding fiscal year identifying, by 
                                State and by Region, for each firm: the 
                                name of the concern, the race or 
                                ethnicity, and gender of the owners, 
                                gross receipts, number of employees, 
                                the dollar value of all contracts 
                                received in the preceding year, the 
                                dollar amount of advance payments 
                                received by each concern, and a 
                                description including (if appropriate) 
                                an estimate of the dollar value of all 
                                other assistance furnished under the 
                                Program during such year.
                    ``(C) The first report required by subparagraph (B) 
                shall pertain to fiscal year 1997.
            ``(11) Perserving program integrity.--
                    ``(A) In general.--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 
                decisionmaking responsibilities relating to such 
                Program Participant or with respect to the 
                administration of any assistance provided to Program 
                Participants generally under this subsection.
                    ``(B) Prohibited actions.--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.
                    ``(D) Penalties.--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 percent 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).''

SEC. 3. ELIMINATION OF 8(a) CONTRACTING AUTHORITY.

    (a) Repeal of Section 8(A).--Section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)) is amended to read as follows:
    ``Sec. 8(a). [RESERVED].''
    (b) Authority To Perform Existing 8(a) Contracts.--Subject to the 
provisions of Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
as in effect on the day before the date of enactment of this Act, a 
contract (including options) awarded pursuant to that subsection may be 
performed by the concern awarded such contract.
    (c) Definitions.--Section 3 of the Small Business Act (15 U.S.C. 
632) is amended by adding the following new subsections:
    ``(o) For the purposes of this Act, the term `Indian tribe' means 
any band, nation, or other organized group or community of Indians, 
including any Alaska Native village or a regional or village 
corporation (within the meaning of the Alaska Native Claims Settlement 
Act) which is recognized as--
            ``(1) eligible for the special programs and services 
        provided by the United States to Indians because of their 
        status as Indians, or
            ``(2) an Indian tribe by the State in which such band, 
        nation, group, or community resides.
    ``(p) For the purposes of this Act, the term `Native Hawaiian 
Organization' means any community service organization serving Native 
Hawaiians in the State of Hawaii, which--
            ``(1) is a not-for-profit organization chartered by the 
        State of Hawaii,
            ``(2) is controlled by Native Hawaiians, and
            ``(3) whose business activities will principally benefit 
        Native Hawaiians.''.
    (d) Status Protest System.--Section 8(d) of the Small Business Act 
(15 U.S.C. 637(d)) is amended by adding at the end thereof a new 
paragraph (11), as follows:
            ``(11)(A) A protest may be brought regarding a 
        representation by a business concern regarding its status as 
        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 
                representation 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 represented its 
                status as a small business concern owned and controlled 
                by socially and economically disadvantaged individuals;
                    ``(iii) a contracting officer receiving a 
                representation regarding an actual or prospective 
                contractor's status, which such officer believes to be 
                false; or
                    ``(iv) the Administrator (or a designee of such 
                officer).
            ``(B) 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 the purposes of any program or activity 
        conducted pursuant to this subject or any other Federal law 
        that refers to this subsection for a description of program 
        eligibility.
            ``(C) A decision issued pursuant to subparagraph (B) 
        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.
            ``(D) A decision issued pursuant to subparagraph (B) shall 
        be considered a final agency action, and shall be subject to 
        judicial review under section 553 of title 5, United States 
        Code.
            ``(E) If a firm engages in a pattern of misrepresentations 
        regarding the firm's status in violation of section 16(d)(1), 
        the Administration or the executive agency receiving such 
        misrepresentations of status shall initiate an action to impose 
        an appropriate sanction under section 16(d)(2).''.
            (4) Size determinations regarding tribally-owned 
        corporations.--Section 3(a) of the Small Business Act (15 
        U.S.C. 632(a)) is amended by adding at the end the following 
        new paragraph:
            ``(4) In determining the size of a business concern owned 
        by an Indian tribe (or a wholly-owned business entity of such 
        tribe), each firm's size shall be independently determined 
        without regard to its affiliation with the tribe, any entity of 
        the tribal government, or any other business enterprise owned 
        by the tribe, unless the Administrator determines that one or 
        more such tribally-owned business concerns have obtained (or 
        are likely to obtain) a substantial unfair competitive 
        advantage within an industry category.''.
            (5) Politically motivated actions prohibited.--Section 4 of 
        the Small Business Act (15 U.S.C. 633) is amended by adding at 
        the end the following new subsection:
    ``(g) Politically Motivated Actions Prohibited.--
            ``(1) In general.--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 Act, 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 
        solicited or directed.
            ``(2) Penalties authorized.--Any employee who willfully and 
        knowingly violates paragraph (1) shall be subject to 
        disciplinary action, which may consist of separation from 
service, reduction in grade, suspension, or reprimand.
            ``(3) Rule of construction.--Paragraph (1) shall not apply 
        to any action taken as a penalty or other enforcement of a 
        violation of any law, or regulation prohibiting or restricting 
        political activity.
            ``(4) Savings Provision.--The prohibitions of paragraph 
        (1), and remedial measures provided for under paragraphs (2) 
        and (3) 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.''.

SEC. 4. PROCUREMENT FORECASTS.

    Section 15(d) of the Small Business Act (15 U.S.C. 644(d)) is 
amended to read as follows:
    ``(d)(1) 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 1995, 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 women 
or socially and economically disadvantaged individuals, are capable of 
performing. Such forecast shall be periodically revised during such 
year.
    ``(2) To the extent such information is available, the agency 
forecasts required by paragraph (1) shall specify--
            ``(A) The approximate number of individual contract 
        opportunities (and the number of opportunities within a class).
            ``(B) The approximate dollar value, or range of dollar 
        values, for each contract opportunity or class of contract 
        opportunities.
            ``(C) The anticipated time (by fiscal year quarter) for the 
        issuance of a procurement request.
            ``(D) The activity responsible for the award and 
        administration of the contract.
    ``(3) The head of such executive agency subject to the provisions 
of paragraph (1) shall, within 10 days of its completion, furnish such 
forecast (and any modification) to--
            ``(A) the Director of the Office of Small and Disadvantaged 
        Business Utilization established pursuant to section 15(k) for 
        such agency; and
            ``(B) the Administrator.
    ``(4) The information reported pursuant to paragraph (1) may be 
limited to classes of items and services for which there are 
substantial annual purchases.
    ``(5) Such forecasts shall be made available to any small business 
concerns upon request.''.

SEC. 5. NON-MANUFACTURER RULE.

    Section 15(f) of the Small Business Act (15 U.S.C. 644(f)) is 
amended to read as follows:
    ``(f)(1) An otherwise responsible small business concern that is in 
compliance with the requirements of paragraph (2) shall not be denied 
the opportunity to submit and have considered its offer for any 
procurement contract for the supply of a product to be let pursuant to 
subsection (a) solely because such concern is other than the actual 
manufacturer or processor of the product to be supplied under the 
contract.
    ``(2) To be in compliance with the requirements referred to in 
paragraph (1), such a business concern shall--
            ``(A) be primarily engaged in the wholesale or retail 
        trade;
            ``(B) 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;
            ``(C) 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; and
            ``(D) 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.''.

SEC. 6. REFERENCES TO ADMINISTRATOR.

    In this Act, the term Administrator means Administrator of the 
Small Business Administration.
                                 <all>