[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1994 Introduced in Senate (IS)]

  2d Session
                                S. 1994

    To establish a priority preference among certain small business 
  concerns for purposes of Federal contracts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 6, 2002

  Mr. Kerry (for himself and Mr. Bond) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
    To establish a priority preference among certain small business 
  concerns for purposes of Federal 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 ``Combined 8(a) and HUBZone Priority 
Preference Act''.

SEC. 2. DEFINITIONS.

    In this Act the following definitions shall apply:
            (1) Contracting officer.--The term ``contracting officer'' 
        has the same meaning as in section 27(f)(5) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 423(f)(5)).
            (2) 8(a) hubzone small business concern.--The term ``8(a) 
        HUBZone small business concern'' means a qualified HUBZone 
        small business concern that is also a section 8(a) small 
        business concern.
            (3) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the same 
        meaning as in section 3(p)(5) of the Small Business Act (15 
        U.S.C. 632(p)(5)).
            (4) Section 8(a) small business concern.--The term 
        ``section 8(a) small business concern'' means a small business 
        concern that is 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)).
            (5) Small business concern.--The term ``small business 
        concern'' has the same meaning as in section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a)).
            (6) 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(a)(4)(A) of the Small Business Act (15 U.S.C. 
        637(a)(4)(A)).

SEC. 3. ESTABLISHMENT OF PRIORITY PREFERENCE.

    (a) Effect of Priority Preference on Restricted Competition 
Contracts.--
            (1) Section 8(a) contracts.--In determining the successful 
        offeror for a restricted competition contract under section 
        8(a)(1)(D) of the Small Business Act (15 U.S.C. 637(a)(1)(D)), 
        the contracting officer shall select an offer from an 8(a) 
        HUBZone small business concern over a comparable offer from a 
        section 8(a) small business concern that is not a qualified 
        HUBZone small business concern.
            (2) HUBZone contracts.--In determining the successful 
        offeror for a restricted competition contract under section 
        31(b)(2)(B) of the Small Business Act (15 U.S.C. 
        657a(b)(2)(B)), the contracting officer shall select an offer 
        from an 8(a) HUBZone small business concern over a comparable 
        offer from a qualified HUBZone small business concern that is 
        not a section 8(a) small business concern.
    (b) Effect of Priority Preference on Price Evaluation Preference.--
            (1) In general.--Subject to paragraphs (2) and (3), in any 
        case in which a Federal procurement contract is to be awarded 
        on the basis of full and open competition in accordance with 
        section 303 of the Federal Property and Administrative Services 
        Act of 1949 (41 U.S.C. 253), the price offered by an 8(a) 
        HUBZone small business concern shall be deemed as being lower 
        than the price offered by another offeror, if the price offered 
        by the 8(a) HUBZone small business concern is not more than 20 
        percent higher than the price offered by the otherwise lowest 
        and responsive offeror.
            (2) Other small business concern.--If the competing offeror 
        under paragraph (1) is a small business concern, the price 
        evaluation preference given to the 8(a) HUBZone small business 
        concern shall be 10 percent.
            (3) Responsive offer.--An 8(a) HUBZone small business 
        concern shall not receive a price evaluation preference under 
        this section if it does not make a responsive offer.
    (c) Exclusion.--This section does not provide any priority 
preference to a small business concern owned and controlled by socially 
and economically disadvantaged individuals that is also a qualified 
HUBZone small business concern, unless such business has been 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)).

SEC. 4. MODIFICATION OF SOLE SOURCE THRESHOLDS.

    (a) Section 8(a) Small Business Concern.--Section 8(a)(1)(D)(i)(II) 
of the Small Business Act (15 U.S.C. 637(a)(1)(D)(i)(II)) is amended--
            (1) by striking ``$5,000,000'' and inserting 
        ``$6,000,000''; and
            (2) by striking ``$3,000,000'' and inserting 
        ``$4,000,000''.
    (b) Qualified HUBZone Small Business Concern.--Section 
31(b)(2)(A)(ii) of the Small Business Act (15 U.S.C. 657a(b)(2)(A)(ii)) 
is amended--
            (1) in subclause (I), by striking ``$5,000,000'' and 
        inserting ``$6,000,000''; and
            (2) in subclause (II), by striking ``$3,000,000'' and 
        inserting ``$4,000,000''.
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