[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1712 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1712

To amend the Small Business Act to establish a development program for 
   small business concerns owned and controlled by qualified service-
disabled veterans, to reauthorize the programs of the National Veterans 
   Business Development Corporation, to establish a Government-wide 
 procurement goal for small business concerns owned and controlled by 
                   veterans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2003

  Mr. Evans (for himself, Mr. Filner, Mr. Michaud, and Ms. Hooley of 
   Oregon) introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To amend the Small Business Act to establish a development program for 
   small business concerns owned and controlled by qualified service-
disabled veterans, to reauthorize the programs of the National Veterans 
   Business Development Corporation, to establish a Government-wide 
 procurement goal for small business concerns owned and controlled by 
                   veterans, 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 ``Veterans Federal Procurement 
Opportunity Act of 2003''.

SEC. 2. DEVELOPMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND 
              CONTROLLED BY QUALIFIED SERVICE-DISABLED VETERANS.

    (a) Establishment of Program.--The Small Business Act (15 U.S.C. 
631 et seq.) is amended by redesignating section 36 as section 37 and 
by inserting after section 35 the following new section:

``SEC. 36. DEVELOPMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND 
              CONTROLLED BY QUALIFIED SERVICE-DISABLED VETERANS.

    ``(a) In General.--In accordance with this section, the 
Administrator shall establish a development program for small business 
concerns owned and controlled by qualified service-disabled veterans. 
The program established under this section shall be similar to the 
program described in sections 7(j) and 8(a).
    ``(b) Assistance and Services; Rules.--The program established 
under this section shall provide assistance and services, and be 
governed by rules, similar to the assistance and services provided 
under, and rules described in, subsections (a)(20) and (j) of section 7 
and section 8(a).
    ``(c) Definitions.--For purposes of this section:
            ``(1) Qualified service-disabled veteran.--The term 
        `qualified service-disabled veteran' means a service-disabled 
        veteran who is economically disadvantaged within the meaning of 
        section 8(a)(6), except that, solely for purposes of 
        determining personal income under this section, no amount 
        received by such veteran by reason of such veteran's service-
        connected disability or service as a member of the Armed Forces 
        shall be taken into account in determining whether such veteran 
        is economically disadvantaged.
            ``(2) Small business concern owned and controlled by 
        qualified service-disabled veterans.--The term `small business 
        concern owned and controlled by qualified service-disabled 
        veterans' has the meaning given the term `small business 
        concern owned and controlled by service-disabled veterans' in 
        section 3(q)(2), except that `qualified service-disabled 
        veteran' shall be substituted for `service-disabled 
        veteran'.''.
    (b) Conforming Amendment.--Section 16(d)(1)(B) of the Small 
Business Act (15 U.S.C. 645(d)(1)(B)) is amended by inserting ``or 36'' 
after ``section 8(a)''.

SEC. 3. REAUTHORIZATION OF PROGRAMS OF THE NATIONAL VETERANS BUSINESS 
              DEVELOPMENT CORPORATION AND THE ADVISORY COMMITTEE ON 
              VETERANS AFFAIRS.

    (a) Reauthorization of Programs of National Veterans Business 
Development Corporation.--Subsection (k) of section 33 of the Small 
Business Act (15 U.S.C. 657c(k)) is amended by striking paragraphs (1) 
and (2) and inserting the following new paragraphs:
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to the Corporation to carry out 
        this section--
                    ``(A) $2,000,000 for each of fiscal years 2003 and 
                2004; and
                    ``(B) $1,000,000 for each of fiscal years 2005 and 
                2006.
            ``(2) Matching requirement.--The amount made available to 
        the Corporation for any fiscal year may not exceed the amount 
        that the Corporation certifies that it will provide for that 
        fiscal year from sources other than the Federal Government.''.
    (b) National Veterans Business Development Corporation Reports.--
Subsection (g) of section 33 of the Small Business Act (15 U.S.C. 
657c(g)) is amended to read as follows:
    ``(g)  Reports.--
            ``(1) Annual report.--On or before October 1 of each year, 
        the Board of Directors shall transmit to the President, the 
        Committees on Veterans Affairs of the House of Representatives 
and of the Senate, the Committee on Small Business of the House of 
Representatives, and the Committee on Small Business and 
Entrepreneurship of the Senate a report describing the activities and 
accomplishments of the Corporation for the preceding year. Such report 
shall include--
                    ``(A) the Corporation's findings regarding the 
                efforts of Federal, State, and private organizations to 
                assist veterans in the formation and expansion of small 
                business concerns;
                    ``(B) a description of the progress made by the 
                Corporation during such year in achieving its specified 
                annual performance goals and objectives; and
                    ``(C) any revisions to annual performance goals or 
                indicators required to achieve specified strategic 
                goals and objectives.
            ``(2) 5-year strategic plan.--On or before October 1, 2003, 
        and every 5 years thereafter, the Board of Directors shall 
        transmit to the President, the Committees on Veterans Affairs 
        of the House of Representatives and of the Senate, the 
        Committee on Small Business of the House of Representatives, 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate a report describing the strategic objectives of the 
        Corporation for the 5-year period beginning on such date. Such 
        report shall include--
                    ``(A) a comprehensive mission statement covering 
                the major functions and operations of the Corporation;
                    ``(B) the general outcome related strategic goals 
                and objectives for each of the major functions and 
                operations of the Corporation;
                    ``(C) a description of the means and strategies, 
                addressing both financial and non-financial resources, 
                to be employed by the Corporation to achieve those 
                specified strategic goals and objectives;
                    ``(D) a description of the annual output and 
                outcome related performance strategies, with associated 
                performance goals and indicators, to be employed by the 
                Corporation to help achieve the general goals and 
                objectives contained in the strategic plan;
                    ``(E) an identification of key factors that could 
                affect the achievement of the Corporations general 
                goals and objectives; and
                    ``(F) a description of the program evaluations and 
                performance indicators to be used by the Corporation to 
                assess its achievement of strategic and annual 
                performance goals and objectives.
            ``(3) 5-year business plan.--On or before October 1, 2003, 
        and every 5 years thereafter, the Board of Directors shall 
        transmit to the President, the Committees on Veterans Affairs 
        of the House of Representatives and of the Senate, the 
        Committee on Small Business of the House of Representatives, 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate a report describing the financial objectives of the 
        Corporation for the 5-year period beginning on such date. Such 
        report shall include a description of the specific plans to be 
        implemented to achieve such objectives and the requirements of 
        paragraphs (2) and (3) of subsection (k) and to provide for the 
        long-term financial viability of the Corporation.
            ``(4) Audited financial statements.--On or before October 
        1, 2003, and every 2 years thereafter, the Board of Directors 
        shall transmit to the President, the Committees on Veterans 
        Affairs of the House of Representatives and of the Senate, the 
        Committee on Small Business of the House of Representatives, 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate an audited financial statement of the Corporation. Such 
        statement shall be prepared by an independent external auditor 
        and shall be conducted in accordance with generally accepted 
        government auditing standards.''.
    (c) Advisory Committee on Veterans Business Affairs.--Subsection 
(h) of section 203 of the Veterans Entrepreneurship and Small Business 
Development Act of 1999 is amended by striking ``2004'' and inserting 
``2009''.

SEC. 4. ESTABLISHMENT OF GOVERNMENT-WIDE PROCUREMENT GOAL FOR SMALL 
              BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS; 
              AUTHORIZATION OF RESTRICTED COMPETITION TO ACHIEVE GOALS; 
              ETC.

    (a) In General.--Section 15(g) of the Small Business Act (15 U.S.C. 
644(g)) is amended to read as follows:
    ``(g) Government-Wide and Agency Small Business Procurement 
Goals.--
            ``(1) Establishment by president of government-wide 
        goals.--The President shall annually establish Government-wide 
        goals for procurement contracts awarded to each specified 
        category of small business concerns.
            ``(2) Small business concerns.--The Government-wide goal 
        for participation by small business concerns in prime contracts 
        or applicable subcontracts shall be established at not less 
        than 28 percent of the total value of all prime contract awards 
        for each fiscal year.
            ``(3) Small business concerns owned and controlled by 
        veterans.--The Government-wide goal for participation by small 
        business concerns owned and controlled by veterans in prime 
        contracts or applicable subcontracts shall be established at 
        not less than 3 percent of the total value of all prime 
        contract awards for each fiscal year.
            ``(4) Small business concerns owned and controlled by 
        service-disabled veterans.--The Government-wide goal for 
        participation by small business concerns owned and controlled 
        by service-disabled veterans in prime contracts or applicable 
        subcontracts shall be established at not less than 3 percent of 
        the total value of all prime contract awards for each fiscal 
        year.
            ``(5) Qualified hubzone small business concerns.--The 
        Government-wide goal for participation by qualified HUBZone 
        small business concerns in prime contracts or applicable 
        subcontracts shall be established at not less than 3 percent of 
        the total value of all prime contract awards for each fiscal 
        year.
            ``(6) Small business concerns owned and controlled by 
        socially and economically disadvantaged individuals.--The 
        Government-wide goal for participation by small business 
        concerns owned and controlled by socially and economically 
        disadvantaged individuals in prime contracts or applicable 
        subcontracts shall be established at not less than 5 percent of 
        the total value of all prime contract awards for each fiscal 
        year.
            ``(7) Small business concerns owned and controlled by 
        women.--The Government-wide goal for participation by small 
        business concerns owned and controlled by women in prime 
        contracts or applicable subcontracts shall be established at 
        not less than 5 percent of the total value of all prime 
        contract awards for each fiscal year.
            ``(8) Agency goals.--
                    ``(A) In general.--Each Federal agency shall have 
                annual goals that present, for that agency, the maximum 
                practicable opportunity for each specified category of 
                small business concerns to perform prime contracts let 
                by such agency and subcontracts under such prime 
                contracts.
                    ``(B) Not less than government-wide goals.--No 
                Federal agency may have an agency goal under 
                subparagraph (A) which is less than the corresponding 
                Government-wide goal established by the President under 
                paragraph (1).
                    ``(C) Procedure for establishment.--Each year, the 
                Administration and the head of each Federal agency 
                shall jointly establish the goals described in 
                subparagraph (A) for such agency. Whenever the 
                Administration and the head of any Federal agency fail 
                to agree on established goals, the disagreement shall 
                be submitted to the Administrator of the Office of 
                Federal Procurement Policy for final determination.
                    ``(D) Expansion of participation.--For the purpose 
                of establishing goals under this paragraph, the head of 
                each Federal agency shall make consistent efforts to 
                annually expand participation by small business 
                concerns from each industry category in procurement 
                contracts of the agency, including participation by 
                each specified category of small business concerns. The 
                head of each Federal agency, in attempting to attain 
                such participation, shall consider--
                            ``(i) contracts awarded as the result of 
                        unrestricted competition;
                            ``(ii) contracts awarded as the result of 
                        restricted competition under this section and 
                        under the programs established under sections 
                        8(a), 31, and 36; and
                            ``(iii) subcontracts awarded pursuant to 
                        subcontracting plans required under paragraphs 
                        (4) or (5) of section 8(d).
            ``(9) Double counting prohibited.--In the case of a small 
        business concern that is part of more than 1 specified 
        subcategory of small business concerns, with respect to any 
        prime contract or subcontract awarded to such concern, a 
        Federal agency shall treat such concern as part of only 1 such 
        specified subcategory for purposes of this subsection.
            ``(10) Restriction on use of funds in case of failure to 
        achieve goals.--
                    ``(A) In general.--In the case of fiscal year 2004 
                and each fiscal year thereafter, if an agency fails to 
                meet the Government-wide goal established under this 
                subsection for such fiscal year with respect to any 
                specified subcategory of small business concerns, the 
                applicable amount of any amounts appropriated or 
                otherwise made available to such agency for the 
                following fiscal year shall be used only for--
                            ``(i) procurements under any prime contract 
                        awarded to such specified subcategory of small 
                        business concerns, and
                            ``(ii) that portion of procurements under 
                        any prime contract (with respect to which a 
                        subcontracting plan is required under paragraph 
                        (4) or (5)) which is attributable to the goal 
                        for the utilization as subcontractors of such 
                        specified subcategory of small business 
                        concerns under such plan.
                    ``(B) Applicable amount.--For purposes of this 
                paragraph, the term `applicable amount' means, with 
                respect to any agency that fails to meet a Government-
                wide goal for a fiscal year with respect to any 
                specified subcategory of small business concerns, the 
                applicable percentage for such fiscal year of the total 
                value of all prime contract awards made by such agency 
                for such fiscal year.
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph:
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `applicable percentage' 
                        means, with respect to any specified 
                        subcategory of small business concerns, the 
                        Government-wide percentage goal for 
                        participation by such specified subcategory of 
                        small business concerns for the fiscal year.
                            ``(ii) Transition rules.--In the case of 
                        fiscal years 2004 through 2008:
                                    ``(I) 3 percent goals.--With 
                                respect to small business concerns 
                                owned and controlled by veterans, small 
                                business concerns owned and controlled 
by service-disabled veterans, and qualified HUBZone small business 
concerns, the applicable percentage shall be determined in accordance 
with the following table:

        ``In the case of
                                                         The applicable
          fiscal year:
                                                         percentage is:
                2004.................................             0.5% 
                2005.................................               1% 
                2006.................................             1.5% 
                2007.................................               2% 
                2008.................................             2.5%.
                                    ``(II) 5 percent goals.--With 
                                respect to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals 
                                and small business concerns owned and 
                                controlled by women, the applicable 
                                percentage shall be determined in 
                                accordance with the following table:

        ``In the case of
                                                         The applicable
          fiscal year:
                                                         percentage is:
                2004.................................               1% 
                2005.................................               2% 
                2006.................................               3% 
                2007.................................               4% 
                2008.................................               5%.
            ``(11) Restricted competition to achieve goals.--
                    ``(A) In general.--In accordance with this 
                paragraph, a contracting officer may restrict 
                competition for any contract for the procurement of 
                goods or services by the Federal Government to any 
                specified category of small business concerns, if--
                            ``(i) the contracting officer has a 
                        reasonable expectation that two or more small 
                        business concerns of such category will submit 
                        offers for the contract;
                            ``(ii) the anticipated award price of the 
                        contract (including options) does not exceed 
                        the simplified acquisition threshold;
                            ``(iii) in the estimation of the 
                        contracting officer, the contract award can be 
                        made at a fair and reasonable price;
                            ``(iv) the award of such contract to a 
                        small business concern of such category will 
                        not result in the agency exceeding the greater 
                        of the Government-wide goal or the agency goal 
                        under this subsection with respect to such 
                        category; and
                            ``(v) each of the concerns--
                                    ``(I) is certified by the 
                                Administrator or any person or entity 
                                approved by the Administrator as a 
                                small business concern of such 
                                category; or
                                    ``(II) certifies to the contracting 
                                officer that it is a small business 
                                concern of such category and provides 
                                adequate documentation, in accordance 
                                with standards established by the 
                                Administration, to support such 
                                certification.
                    ``(B) Relationship to other contracting 
                preferences.--A procurement shall not be made from a 
                source on the basis of a preference provided in 
                subparagraph (A), if the procurement would otherwise be 
                made from a different source under section 4124 or 4125 
                of title 18, United States Code, or the Javits-Wagner-
                O'Day Act (41 U.S.C. 46 et seq.).
                    ``(C) Verification of eligibility.--In carrying out 
                this paragraph, the Administrator shall establish 
                procedures relating to--
                            ``(i) the filing, investigation, and 
                        disposition by the Administration of any 
                        challenge to the eligibility of a small 
                        business concern to receive assistance under 
                        this paragraph (including a challenge, filed by 
                        an interested party, relating to the veracity 
                        of a certification referred to in subparagraph 
                        (A)(v)); and
                            ``(ii) verification by the Administrator of 
                        the accuracy of any certification made or 
                        information provided under subparagraph (A)(v).
                    ``(D) Examinations.--The procedures established 
                under subparagraph (C) may provide for program 
                examinations (including random program examinations) by 
                the Administrator of any small business concern 
                certified under subparagraph (A)(v).
                    ``(E) Provision of data.--Upon the request of the 
                Administrator, the head of any Federal agency shall 
                promptly provide to the Administrator such information 
                as the Administrator determines to be necessary to 
                carry out this paragraph.
                    ``(F) Penalties.--In addition to the penalties 
                described in section 16(d), any small business concern 
                that is determined by the Administrator to have 
                misrepresented the status of that concern as part of a 
                specified category of small business concerns for 
                purposes of this paragraph shall be subject to--
                            ``(i) section 1001 of title 18, United 
                        States Code; and
                            ``(ii) sections 3729 through 3733 of title 
                        31, United States Code.
                    ``(G) Contracting officer.--For purposes of this 
                paragraph, the term `contracting officer' has the 
                meaning given such term in section 27(f)(5) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                423(f)(5)).
            ``(12) Applicable subcontracts.--For purposes of this 
        subsection, the term `applicable subcontract' means any 
        subcontract under a contract that is subject to the 
        requirements of paragraph (4) or (5) of section 8(d).''.
    (b) Conforming Amendments.--Section 15(h)(2) of the Small Business 
Act (15 U.S.C. 644(h)(2)) is amended by striking subparagraphs (D), 
(E), and (F), and inserting the following new subparagraphs:
            ``(D) The total number and dollar value of prime contracts 
        awarded to each specified category of small business concerns 
        through--
                    ``(i) noncompetitive negotiation;
                    ``(ii) competition restricted to such specified 
                category; and
                    ``(iii) unrestricted competition.
            ``(E) The total number and dollar value of applicable 
        subcontracts (as defined in subsection (g)(12)) awarded to each 
        specified category of small business concerns.
            ``(F) The information described in subparagraphs (D) and 
        (E) stated separately with respect to each agency.''.

SEC. 5. REQUIREMENTS RELATED TO SUBCONTRACTING PLANS.

    (a) Factors for Evaluating Offers.--Subparagraph (G) of section 
8(d)(4) of the Small Business Act (15 U.S.C. 637(d)(4)) is amended to 
read as follows:
    ``(G) In the case of any contract that is awarded pursuant to the 
negotiated method of procurement, the following shall be treated as 
significant factors for purposes of evaluating offers for any such 
contract:
            ``(i) A factor that is based on the extent to which the 
        subcontracting plan for small business participation in the 
        performance of the contract exceeds the requirement described 
        in paragraph (6)(A).
            ``(ii) A factor that is based on the extent to which the 
        subcontracting plan provides for the use of small business 
        concerns with respect to which the contractor is serving as a 
        mentor under a mentoring program established by the agency.
            ``(iii) A factor that is based on the extent to which the 
        offeror attained applicable goals for small business 
        participation in the performance of past and current 
        contracts.''.
    (b) Minimum Goal.--Subparagraph (A) of section 8(d)(6) of the Small 
Business Act (15 U.S.C. 637(d)(6)) is amended to read as follows:
            ``(A) percentage goals for the utilization as 
        subcontractors of each specified category of small business 
        concerns (determined in accordance with the requirement of 
        section 15(g)(9)), which goal for the utilization of small 
        business concerns shall be not less than the percentage goal 
        established under section 15(g)(2);''.
    (c) Required Penalty for Material Breach.--Paragraph (8) of section 
8(d) of the Small Business Act (15 U.S.C. 637(d)(8)) is amended by 
adding at the end the following: ``If a contracting officer finds the 
prime contractor or any subcontractor to be in material breach under 
this paragraph, such prime contractor shall pay a penalty in an amount 
determined by such officer, except that such penalty shall not be less 
than 10 percent of the total dollar value of the contract under which 
the prime contractor or subcontractor is in material breach. Rules 
similar to the rules of paragraph (4)(F)(ii) shall apply for purposes 
of the preceding sentence. Notwithstanding any other provision of law, 
the amount of any penalty collected under this paragraph shall be paid 
over to the agency that let the contract and may be retained and used 
by such agency for any operating expense of the agency.''.

SEC. 6. DEFINITIONS.

    (a) Service-Disabled Veteran.--
            (1) In general.--Paragraph (1) of section 3(q) of the Small 
        Business Act (15 U.S.C. 632(q)(1)) is amended to read as 
        follows:
            ``(1) Service-disabled veteran.--The term `service-disabled 
        veteran' means any veteran with a disability that is--
                    ``(A) service-connected (as defined in section 
                101(16) of title 38, United States Code); and
                    ``(B) rated at 10 percent or more disabling by the 
                Secretary of Veterans Affairs or, in the case of a 
                disability not rated by the Secretary of Veterans 
                Affairs, by the Secretary concerned (as defined in 
                section 101(25) of title 38, United States Code).''.
            (2) Transition rule.--A small business concern that is 
        receiving assistance under this Act (or if fully approved to 
        receive such assistance) on the date of the enactment of this 
        Act shall not cease to qualify for such assistance solely 
        because of the amendment made by paragraph (1). The preceding 
        sentence shall not make such concern eligible for any other 
        assistance.
    (b) Specified Categories and Subcategories of Small Business 
Concerns.--Section 3 of the Small Business Act (15 U.S.C. 632) is 
amended by adding at the end the following new subsections:
    ``(r) Specified Category of Small Business Concerns.--For purposes 
of this Act, each of following is a specified category of small 
business concerns:
            ``(1) Small business concerns owned and controlled by 
        veterans.
            ``(2) Small business concerns owned and controlled by 
        service-disabled veterans.
            ``(3) Qualified HUBZone small business concerns.
            ``(4) Small business concerns owned and controlled by 
        socially and economically disadvantaged individuals.
            ``(5) Small business concerns owned and controlled by 
        women.
            ``(6) Small business concerns.
    ``(s) Specified Subcategories of Small Business Concerns.--For 
purposes of this Act, each specified category of small business 
concerns described in paragraphs (1) through (5) of subsection (r) is a 
specified subcategory of small business concerns.''.

SEC. 7. UNIFORM APPLICATION OF DEFINITIONS OF SPECIFIED CATEGORIES AND 
              SUBCATEGORIES OF SMALL BUSINESS CONCERNS.

    (a) In General.--
            (1) Section 8(d)(1) of the Small Business Act (15 U.S.C. 
        637(d)(1)) is amended--
                    (A) in the first sentence, by striking ``small 
                business concerns'' the first place it appears and all 
                that follows through ``women,'' and inserting ``each 
                specified category of small business concerns''; and
                    (B) in the second sentence, by striking ``small 
                business concerns'' the first place it appears and all 
                that follows through ``women'' and inserting ``each 
specified category of small business concerns''.
            (2) Paragraphs (4)(D), (4)(E), (6)(C), (6)(F), and (10)(B) 
        of section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
        are each amended by striking ``small business concerns'' the 
        first place it appears and all that follows through ``women'' 
        and inserting ``each specified category of small business 
        concerns''.
            (3) Paragraphs (1) and (2)(A) of section 15(h) of the Small 
        Business Act (15 U.S.C. 644(h)) are each amended by striking 
        ``small business concerns'' the first place it appears and all 
        that follows through ``women'' and inserting ``each specified 
        category of small business concerns''.
            (4) Section 16(d)(1) of the Small Business Act (15 U.S.C. 
        645(d)(1)) is amended by striking ``as a `small business 
        concern''' and all that follows through ``women','' and 
        inserting ``as being part of any specified category of small 
        business concerns''.
            (5) Section 16(e) of the Small Business Act (15 U.S.C. 
        645(e)) is amended by striking ``as a `small business 
        concern''' and all that follows through ``women''' and 
        inserting ``as being part of any specified category of small 
        business concerns''.
    (b) Application to Contract Clauses.--
            (1) In general.--Section 8(d)(3) of the Small Business Act 
        (15 U.S.C. 637(d)(3)) is amended--
                    (A) in the first and second sentences of 
                subparagraph (A), by striking ``small business 
                concerns'' the first place it appears in each sentence 
                and all that follows through ``women'' and inserting 
                ``each specified category of small business concerns'';
                    (B) by striking subparagraphs (C), (D), (E), (F), 
                and (G); and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraphs:
                    ``(C) As used in this contract, the term `specified 
                category of small business concerns' has the meaning 
                given such term pursuant to section 3 of the Small 
                Business Act and relevant regulations promulgated 
                thereto.
                    ``(D) The contractor shall presume that socially 
                and economically disadvantaged individuals include 
                Black Americans, Hispanic Americans, Native Americans, 
                Asian Pacific Americans, other minorities, and any 
                other individual found to be disadvantaged by the 
                Administration pursuant to section 8(a) of the Small 
                Business Act.
                    ``(E) Contractors acting in good faith may rely on 
                written representations by their subcontractors 
                regarding their status as being part of any specified 
                category of small business concerns.''.
            (2) Definition of small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals.--Section 3 of the Small Business Act (15 U.S.C. 
        632) is further amended by adding at the end the following new 
        subsection:
    ``(t) Small Business Concern Owned and Controlled by Socially and 
Economically Disadvantaged Individuals.--For purposes of this Act:
            ``(1) In general.--The term `small business concern owned 
        and controlled by socially and economically disadvantaged 
        individuals' means a small business concern--
                    ``(A) which is at least 51 percent owned by one or 
                more socially and economically disadvantaged 
                individuals; or, in the case of any publicly owned 
                business, at least 51 percent of the stock of which is 
                owned by one or more socially and economically 
                disadvantaged individuals; and
                    ``(B) whose management and daily business 
                operations are controlled by one or more of such 
                individuals.''.
            ``(2) Application of definition by persons other than the 
        administration.--Any individual or entity (other than the 
        Administration) shall presume for purposes of carrying out any 
        program that socially and economically disadvantaged 
        individuals include Black Americans, Hispanic Americans, Native 
        Americans, Asian Pacific Americans, other minorities, and any 
        other individual found to be disadvantaged by the 
        Administration pursuant to section 8(a).''.
            (3) Treatment of references to definitions.--Any reference 
        in a law, regulation, or other document of the United States to 
        the meaning or definition given to the term ``small business 
        concern owned and controlled by socially and economically 
        disadvantaged individuals'', ``small business concern owned and 
        controlled by women'', ``small business concern owned and 
        controlled by veterans'', or ``qualified HUBZone small business 
        concern'' in section 8(d)(3) of the Small Business Act (15 
        U.S.C. 637(d)(3)) (as in effect on the day before the date of 
        the enactment of this Act) shall be treated as a reference to 
        the meaning or definition given such term in section 3 of the 
        Small Business Act (as amended by this Act).
                                 <all>