[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3701 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3701

To amend the Small Business Act to provide a penalty for the failure by 
a Federal contractor to subcontract with small businesses as described 
          in its subcontracting plan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 1998

   Mr. Wynn introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To amend the Small Business Act to provide a penalty for the failure by 
a Federal contractor to subcontract with small businesses as described 
          in its subcontracting plan, 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 ``Subcontractor Protection Act''.

SEC. 2. IMPLEMENTATION OF SUBCONTRACTING PLANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended by adding at the end the following new paragraphs:
    ``(12) In the case of any contract containing a subcontracting plan 
included pursuant to paragraph (4) or (5), the following provisions 
apply:
            ``(A) The executive agency awarding the contract shall 
        include in the contract a clause providing for the withholding 
        of not less than (i) $5,000 in the case of a contract in the 
        amount of $100,000 or less, (ii) 3 percent of the contract 
        amount in the case of a contract in an amount of more than 
        $100,000 and less than $5,000,000, and (iii) 5 percent of the 
        contract amount in the case of a contract in an amount of 
        $5,000,000 or more, if the contractor does not achieve the 
        percentage goal for the utilization of small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals as set forth in the subcontracting plan.
            ``(B) The executive agency awarding the contract shall 
        require the contractor to provide written justification to the 
        agency whenever the contractor, in performing the contract, 
        does not enter into a subcontract with, or substitutes another 
        subcontractor for, a specific small business identified in the 
        subcontracting plan.
    ``(13) The Administration shall establish a telephone line or other 
electronic means of communication through which any small business 
identified in a subcontracting plan by an offeror or bidder may 
communicate to the Administration any concerns regarding major 
deviations by prime contractors from the use of small businesses as 
subcontractors under the prime contract as described in subcontracting 
plans.''.

SEC. 3. REQUIREMENT TO CONSIDER USE OF SMALL BUSINESS CONCERNS OWNED 
              AND CONTROLLED BY SOCIALLY AND ECONOMICALLY DISADVANTAGED 
              INDIVIDUALS WHEN CONSIDERING PAST COMPLIANCE WITH 
              SUBCONTRACTING PLANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended in the second sentence of paragraphs (4)(C) and (5)(B) by 
inserting after ``other such subcontracting plans'' each place it 
appears the following: ``, especially compliance with the goal set 
forth in such plans for the utilization of small business concerns 
owned and controlled by socially and economically disadvantaged 
individuals,''.
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