[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5766 Introduced in House (IH)]

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107th CONGRESS
  2d Session
                                H. R. 5766

 To create Federal advertising procurement opportunities for minority 
               business concerns, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 22, 2002

Ms. Kilpatrick introduced the following bill; which was referred to the 
  Committee on Government Reform, and in addition to the Committee on 
   Small Business, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To create Federal advertising procurement opportunities for minority 
               business concerns, 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. FINDINGS.

    The Congress finds the following:
            (1) Minority business concerns are of vital importance to 
        job growth and the economic strength of the United States but 
        have faced historic exclusion and underutilization in Federal 
        advertising procurement.
            (2) All departments and agencies within the executive 
        branch with procurement authority should take all necessary 
        steps, as permitted by law, to increase contracting for Federal 
        advertising between the Federal Government and minority 
        business concerns.

SEC. 2. RESPONSIBILITIES OF EXECUTIVE DEPARTMENTS AND AGENCIES WITH 
              PROCUREMENT AUTHORITY RELATING TO FEDERAL ADVERTISING 
              PROCUREMENT.

    (a) In General.--Each executive department and agency with 
procurement authority shall--
            (1) ensure substantial participation in Federal advertising 
        procurements by minority business concerns;
            (2) ensure that the creation, placement, and transmission 
        of Federal advertising by the department or agency is fully 
        reflective of the diversity of the United States, including 
        ensuring placement with respect to publications and television 
        and radio stations that reach specific ethnic and racial 
        audiences;
            (3) ensure that payment for Federal advertising is 
        commensurate with fair market rates in the relevant market;
            (4) structure Federal advertising contracts as commercial 
        acquisitions consistent with part 12 of the Federal Acquisition 
        Regulation to enhance participation by minority business 
        concerns;
            (5) aggressively seek to ensure that minority business 
        concerns are aware of Federal advertising procurement 
        opportunities through the wide dissemination of contract 
        announcements using the forms of communication which will be 
        most effective in reaching such concerns, including the 
        Internet, speciality press, and trade press;
            (6) work with the Small Business Administration to ensure 
        that eligible small business concerns receive information 
        regarding sole source Federal advertising contracts awarded 
        under section 8(a) of the Small Business Act (15 U.S.C. 
        637(a));
            (7) ensure that the price evaluation preference programs 
        authorized by section 7102 of the Federal Acquisition 
        Streamlining Act of 1994 (15 U.S.C. 644 note) are used to the 
        maximum extent permitted by law when granting Federal 
        advertising contracts to minority business concerns;
            (8) aggressively use small business concerns engaged in the 
        advertising industry and certified by the Small Business 
        Administration as eligible to receive benefits under section 
        8(a) of the Small Business Act (15 U.S.C. 637(a)), particularly 
        those concerns in the developmental stage of the program, so 
        that such concerns have an opportunity to overcome artificial 
        barriers to Federal advertising procurement;
            (9) take all reasonable steps to ensure that prime 
        contractors meet, or exceed Federal advertising subcontracting 
        goals and enforce Federal advertising subcontracting 
        commitments as required by section 8(d) of the Small Business 
        Act (15 U.S.C. 637(d)) and other related laws, including 
        ensuring that prime contractors actively solicit bids for 
        Federal advertising subcontracting opportunities from minority 
        business concerns and fulfill their subcontracting obligations 
        to such concerns;
            (10) ensure that--
                    (A) contracts which involve commitments to 
                subcontract with minority business concerns include 
                clauses providing for the assessment of liquidated 
                damages when such commitments are not met; and
                    (B) such clauses are enforced;
            (11) encourage the establishment of mentoring and teaming 
        relationships to foster the development of minority business 
        concerns which are engaged in the advertising industry and to 
        facilitate long-term business relationships among such 
        concerns;
            (12) offer information, training, and technical assistance 
        programs for minority business concerns which are engaged in 
        the advertising industry, including, where appropriate, 
        Government acquisition forecasts in order to assist such 
        concerns in developing their products, skills, business 
        planning practices, and marketing techniques;
            (13) train procurement officials regarding the policy of 
        including minority business concerns in Federal advertising 
        procurement, including structuring procurements to facilitate 
        participation by such concerns;
            (14) provide the information required by the Department of 
        Commerce when it requests data to develop the benchmarks used 
        in the price evaluation preference programs authorized by 
        section 7102 of the Federal Acquisition Streamlining Act of 
        1994 (15 U.S.C. 644 note); and
            (15) ensure that Directors of Offices of Small and 
        Disadvantaged Business Utilization carry out their 
        responsibilities to maximize the participation of minority 
        business concerns in Federal advertising procurement and, in 
        particular, ensure that the Directors report directly to the 
        head of each department or agency as required by law.
    (b) Comprehensive Plan.--Each department and agency with 
procurement authority shall--
            (1) not later than 90 days after the date of the enactment 
        of this Act, develop a long-term comprehensive plan to 
        implement the requirements of subsection (a) and submit such 
        plan to the Director of the Office of Management and Budget, 
        who shall review such plan and report to the President on its 
        sufficiency; and
            (2) not later than April 30 of each year--
                    (A) assess its efforts and the results of those 
                efforts to increase utilization of minority business 
                concerns which are engaged in the advertising industry 
                as prime contractors and subcontractors; and
                    (B) submit a report regarding those efforts to the 
                President through the Director of the Office of 
                Management and Budget, who shall review the report.

SEC. 3. GOVERNMENT-WIDE GOALS FOR FEDERAL ADVERTISING PROCUREMENT 
              CONTRACTS TO SMALL BUSINESS CONCERNS.

    Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) is 
amended by adding at the end the following new paragraph:
            ``(3) Application to federal advertising.--
                    ``(A) In general.--With respect to contracts for 
                Federal advertising, each goal and requirement 
                described in this subsection and subsection (h) which 
                relates to small business concerns, small business 
                concerns owned and controlled by service-disabled 
                veterans, small business concerns owned and controlled 
                by veterans, qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals, or 
                small business concerns owned and controlled by women 
                shall be applied separately with respect to such 
                concerns which are engaged in the advertising industry.
                    ``(B) Federal advertising.--For purposes of this 
                paragraph, the term `Federal advertising' means any 
                product or service which involves the use of media, 
                regardless of the medium employed, to recruit personnel 
                for the Federal Government or to promote any Federal 
                program or the sale or use of any Federal product or 
                service, including any public service announcement and 
                any request for proposal.''.

SEC. 4. GENERAL SERVICES ADMINISTRATION SCHEDULES.

    (a) Increased Participation by Certain Concerns.--The Administrator 
of the Small Business Administration and the Administrator of General 
Services shall act promptly to expand inclusion on General Service 
Administration schedules of small business concerns owned and 
controlled by socially and economically disadvantaged individuals and 
other minority business concerns, which are engaged in the advertising 
industry, and provide greater opportunities for such concerns to 
participate in orders under such schedules. The Administrator of 
General Services shall ensure that procurement and program officials at 
all levels that use such schedules aggressively seek to utilize the 
schedule contracts of such concerns.
    (b) Applicability Toward Procurement Goals.--The Administrator of 
General Services shall allow all executive departments and agencies 
ordering under the Multiple Award Schedule from small business concerns 
owned and controlled by socially and economically disadvantaged 
individuals that are engaged in the advertising industry to count those 
orders toward their procurement goals with respect to such concerns.

SEC. 5. REVIEW OF BUNDLING CONTRACTS.

    (a) In General.--The head of each executive department and agency 
shall submit to the Administrator of the Small Business Administration 
for review any proposed bundling of contract requirements which 
includes one or more Federal advertising requirements. The 
determination of the Administrator with regard to the appropriateness 
of bundling in each instance must be carefully reviewed by the 
department or agency head, or his or her designee, and must be given 
due consideration. If there is an unresolvable conflict, the 
Administrator or the department or agency may seek assistance from the 
Director of the Office of Management and Budget.
    (b) Bundling of Contract Requirements.--For purposes of this 
section, the term ``bundling of contract requirements'' has the meaning 
given such term in section 3(o)(2) of the Small Business Act (15 U.S.C. 
632(o)(2)).

SEC. 6. AWARDS PROGRAM.

    The Secretary of Commerce and the Administrator of the Small 
Business Administration shall jointly carry out a feasibility study to 
determine the appropriateness of establishing an awards program for 
executive departments and agencies that best exemplify the letter and 
intent of this Act in increasing opportunities for small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals and other minority business concerns in 
Federal advertising procurement. Such study shall be submitted to the 
President and to Congress on the date that is 90 days after the date of 
the enactment of this Act.

SEC. 7. DEFINITIONS.

    For purposes of this Act:
            (1) Federal advertising.--The term ``Federal advertising'' 
        means any product or service which involves the use of media, 
        regardless of the medium employed, to recruit personnel for the 
        Federal Government or to promote any Federal program or the 
        sale or use of any Federal product or service, including any 
        public service announcement and any request for proposal.
            (2) Minority business concern.--The term ``minority 
        business concern'' means any business concern which would, but 
        for any applicable size standards, be a small business concern 
        owned and controlled by socially and economically disadvantaged 
        individuals.
            (3) 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 meaning given 
        such term in section 8(d)(3)(C) of the Small Business Act (15 
        U.S.C. 637(d)(3)(C)).
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