110 HR 1873 : Small Business Fairness in
U.S. House of Representatives
2007-05-11
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited
as the Small Business Fairness in
Contracting Act
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title;
table of contents.
Sec. 2. Regulations.
Title I—Contract
Bundling
Sec. 101. Definitions
of bundling of contract requirements and related terms.
Sec. 102. Justification.
Sec. 103. Appeals.
Sec. 104. Review.
Title II—Increasing the
Number of Small Business Contracts and Subcontracts
Sec. 201. Small
business goal.
Sec. 202. Include
overseas contracts in small business goal.
Sec. 203. Annual goal
negotiation.
Sec. 204. Usage of
small companies in goal achievement.
Sec. 205. Annual plan
for each agency explaining how agency will meet small business
goals.
Sec. 206. Making
small businesses the first choice.
Sec. 207. Uniform
metric for subcontracting achievements.
Sec. 208. Subcontracting database.
Sec. 209. National
database.
Sec. 210. Review of
subcontracting plans.
Sec. 211. Agency
obligation for fulfilling contracting goals.
Sec. 212. Appropriate
limits on value of sole source contracts.
Sec. 213. Small
business goals for green small business concerns.
Sec. 214. Study on
providing financial incentives to contractors that meet minority and
disadvantaged business enterprise goals.
Title III—Protection of
Taxpayers from Fraud
Sec. 301. Small
business size protest notification.
Sec. 302. Review of
national registry.
Sec.
303. Recertification of compliance with size standards and registration with
Central Contractor Registry.
Title IV—Authorization
of Appropriations
Sec. 401. Authorization of appropriations.
2.
(a)Not later than 180
days after the date of the enactment of this Act—
(1)the Administrator
of the Small Business Administration shall promulgate regulations to implement
this Act and the amendments made by this Act; and
(2)the Federal
Acquisition Regulation shall be revised to implement this Act and the
amendments made by this Act.
(b)The regulations required by subsection (a) shall be
promulgated after opportunity for notice and comment as required by section
553(b) of title 5, United States Code.
<enum>I</enum><header>Contract
Bundling</header>
<section id="HC2F7105EBF744033A583963929395F9F"><enum>101.</enum><header>Definitions of
bundling of contract requirements and related terms</header><text display-inline="no-display-inline">Section 3 of the Small Business Act (15
U.S.C. 632) is amended by amending subsection (o) to read as follows:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="H18B45F10A5BB44479C28E9009262ACAB" style="OLC">
<subsection id="H9A8104CF7EC94C319D4F46FC15E5C86D"><enum>(o)</enum><header>Definitions of
bundling of contract requirements and related terms</header><text>For purposes
of this Act:</text>
<paragraph id="HBF051EF10B7E481B9C29A551A851905F"><enum>(1)</enum><header>Bundled
contract</header>
<subparagraph id="HAF9D044FA902461FB9189CABA652173B"><enum>(A)</enum><header>In
general</header><text>The term <term>bundled contract</term> means a contract
or order that is entered into to meet procurement requirements that are
consolidated in a bundling of contract requirements, without regard to its
designation by the procuring agency or whether a study of the effects of the
solicitation on civilian or military personnel has been made.</text>
</subparagraph><subparagraph id="H6F8F9BD917044852A2F4DF9813EF3700"><enum>(B)</enum><header>Exceptions</header><text>The
term does not include—</text>
<clause id="H538BE70C8AF34385A600D3D237B3618D"><enum>(i)</enum><text>a contract or
order with an aggregate dollar value below the dollar threshold specified in
paragraph (4); or</text>
</clause><clause id="H1A3ADB84315A4EB79BA800E9541FDE29"><enum>(ii)</enum><text>a contract or
order that is entered into to meet procurement requirements, all of which are
exempted requirements under paragraph (5).</text>
</clause></subparagraph></paragraph><paragraph id="HAAE00C4FC12C4FDB8456A87EE8D03FDC"><enum>(2)</enum><header>Bundling of
contract requirements</header>
<subparagraph id="HFC4A555749DB4838BE448F5BB031B12B"><enum>(A)</enum><header>In
general</header><text>The term <term>bundling of contract requirements</term>
means the use of any bundling methodology to satisfy 2 or more procurement
requirements for goods or services previously supplied or performed under
separate smaller contracts or orders, or to satisfy 2 or more procurement
requirements for construction services of a type historically performed under
separate smaller contracts or orders, that is likely to be unsuitable for award
to a small business concern due to—</text>
<clause id="HDE3F51F48266483489E71F5F243F5967"><enum>(i)</enum><text>the diversity,
size, or specialized nature of the elements of the performance
specified;</text>
</clause><clause id="HD128190646124C45B700F1C992E2E722"><enum>(ii)</enum><text>the aggregate
dollar value of the anticipated award;</text>
</clause><clause id="H2E5C6C0B0F944990B1D1AF4FDB8D35B3"><enum>(iii)</enum><text>the geographical
dispersion of the contract or order performance sites; or</text>
</clause><clause id="H98F1A58417B9499DAD6EF2BF51B062C"><enum>(iv)</enum><text>any combination of
the factors described in clauses (i), (ii), and (iii).</text>
</clause></subparagraph><subparagraph commented="no" id="H9135709DA4BE48898FAFBBB0CEA94DBD"><enum>(B)</enum><header>Inclusion of new
features or functions</header><text display-inline="yes-display-inline">A
combination of contract requirements that would meet the definition of a
bundling of contract requirements but for the addition of a procurement
requirement with at least one new good or service shall be considered to be a
bundling of contract requirements unless the new features or functions
substantially transform the goods or services and will provide measurably
substantial benefits to the government in terms of quality, performance, or
price.</text>
</subparagraph><subparagraph id="H177B83E4B41D4253920371758BC784BB"><enum>(C)</enum><header>Exceptions</header><text>The
term does not include—</text>
<clause id="HDF459A97A36E434D95EA7D8AEAC85A0"><enum>(i)</enum><text>the use of a
bundling methodology for an anticipated award with an aggregate dollar value
below the dollar threshold specified in paragraph (5); or</text>
</clause><clause id="H0394C1C380D446CFA9CE986872511ED8"><enum>(ii)</enum><text>the use of a
bundling methodology to meet procurement requirements, all of which are
exempted requirements under paragraph (6).</text>
</clause></subparagraph></paragraph><paragraph id="H9652540B72FD4B15AC45311EB55F4DCD"><enum>(3)</enum><header>Bundling
methodology</header><text>The term <term>bundling methodology</term>
means—</text>
<subparagraph id="H9812CEB5824E467988FAB61203D71C73"><enum>(A)</enum><text display-inline="yes-display-inline">a solicitation to obtain offers for a
single contract or order, or a multiple award contract or order; or</text>
</subparagraph><subparagraph id="H36A0678665FF4387A4545B5F2B7856EE"><enum>(B)</enum><text>a solicitation of
offers for the issuance of a task or a delivery order under an existing single
or multiple award contract or order.</text>
</subparagraph></paragraph><paragraph id="H74FEF38EFBEC45FE8E4E1CE39D8FC265"><enum>(4)</enum><header>Separate smaller
contract</header><text>The term <quote>separate smaller contract</quote>, with
respect to bundling of contract requirements, means a contract or order that
has been performed by 1 or more small business concerns or was suitable for
award to 1 or more small business concerns.</text>
</paragraph><paragraph id="H3A2B549392FD451D961CF56EA0043C2B"><enum>(5)</enum><header>Dollar
threshold</header><text>The term <quote>dollar threshold</quote> means
$65,000,000, if solely for construction services.</text>
</paragraph><paragraph commented="no" id="H5E435C0AA0374A388627B1D1B5574D6B"><enum>(6)</enum><header>Exempted
requirements</header><text>The term <quote>exempted requirement</quote> means a
procurement requirement solely for items that are not commercial items (as the
term <quote>commercial item</quote> is defined in section 4(12) of the Office
of Federal Procurement Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/41/403">41 U.S.C. 403(12)</external-xref>).</text>
</paragraph><paragraph id="H6EF1096836BD472DAFE633930095B549"><enum>(7)</enum><header>Procurement
requirement</header><text display-inline="yes-display-inline">The term
<quote>procurement requirement</quote> means a determination by an agency that
a specified good or service is needed to satisfy the mission of the
agency.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H595732A14BB04892B4A47C08849FEBE"><enum>102.</enum><header>Justification</header><text display-inline="no-display-inline">Section 15(a) of the Small Business Act (15
U.S.C. 644(a)) is amended—</text>
<paragraph id="HAC96ABD8DA0F4274B2522800009BB9BF"><enum>(1)</enum><text>by striking
<quote>(2) why delivery schedules</quote> and inserting <quote>(2) the names,
addresses and size of the incumbent contract holders; (3) a description of the
industries that might be interested in bidding on the contract requirements;
(4) the number of small businesses listed in the industry categories that could
be excluded from future bidding if the contract is combined or packaged; (5)
why delivery schedules</quote>;</text>
</paragraph><paragraph id="H5D8D3B90544A4E83B1D7577E3FCD0272"><enum>(2)</enum><text>by striking
<quote>(3) why the proposed acquisition</quote> and inserting <quote>(6) why
the proposed acquisition</quote>;</text>
</paragraph><paragraph id="HD26D84AEDFAE472B87F3E68E20860F5"><enum>(3)</enum><text>by striking
<quote>(4) why construction</quote> and inserting <quote>(7) why
construction</quote>;</text>
</paragraph><paragraph id="HB4D559CD7B3B422B834301017EB62B00"><enum>(4)</enum><text>by striking
<quote>(5) why the agency</quote> and inserting <quote>(8) why the
agency</quote>;</text>
</paragraph><paragraph id="H65AF79DE3DDC41799C2BE30049156ECE"><enum>(5)</enum><text>by striking
<quote>justified.</quote> and inserting <quote>justified. The statement shall
also set forth the proposed procurement strategy required by subsection (e)
and, if applicable, the specifications required by subsection (e)(3). The
statement shall be made available to the public, including through
dissemination in the Federal contracting opportunities database, concurrently
with the issuance of the solicitation.</quote>; and</text>
</paragraph><paragraph id="H32824107CD664A55B900B58266DA9CF4"><enum>(6)</enum><text>by inserting after
<quote>prime contracting opportunities.</quote> the following: <quote>If no
notification of the procurement and accompanying statement is received, but the
Administrator determines that there is cause to believe the contract combines
requirements or a contract (single or multiple award) or task or delivery order
for construction services or includes unjustified bundling, then the
Administrator may request that such a statement of work goods or services be
completed by the procurement activity and sent to the Procurement Center
Representative and the solicitation process postponed for 10 days to allow the
Administrator to review the statement and make recommendations as described in
this section before the procurement is continued.</quote>.</text>
</paragraph></section><section commented="no" id="HB34AB8BFDE9E4E68BCACB8CD257498B9"><enum>103.</enum><header>Appeals</header><text display-inline="no-display-inline">Section 15(a) of the Small Business Act (15
U.S.C. 644(a)) is amended by inserting before <quote>Whenever the
Administration and the contracting procurement agency fail to agree,</quote>
the following: <quote>If a small business concern would be adversely affected,
directly or indirectly, by the procurement as proposed, and that small business
concern or a trade association on behalf of that small business concern so
requests, the Administrator may, in the Administrator’s discretion, take action
to further the interests of that small business concern, and shall make
available to the public on the website of the Administration the action taken
and the result achieved.</quote>.</text>
</section><section id="H2843FA8BADA144AE85B35F523D8DE853"><enum>104.</enum><header>Review</header><text display-inline="no-display-inline">Section 15(a) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(a)</external-xref>)
is amended by striking the sentence beginning <quote>Whenever the
Administration and the contracting procurement agency fail to agree,</quote>
and inserting the following: <quote>Whenever the Administration and the
contracting procurement agency fail to agree, the Administrator shall submit
the matter to the head of the agency for a determination. The head of the
agency shall provide a written response to the Administrator. A copy of such
response shall also be provided to the Committees on Small Business of the
House of Representatives and Senate, the Committee on Oversight and Government
Reform of the House of Representatives, and the Committee on Homeland Security
and Governmental Affairs of the Senate, and any other committee of the House
and Senate that has jurisdiction over the agency concerned.</quote>.</text>
</section><enum>II</enum><header>Increasing the
Number of Small Business Contracts and Subcontracts</header>
<section id="H2094B426A4A74A39A2BFCB3FFBEC13C"><enum>201.</enum><header>Small business
goal</header>
<subsection id="H6FE60D5C323242A6987F7FBCF6E4D74C"><enum>(a)</enum><header>Government-Wide
Goal</header><text display-inline="yes-display-inline">Section 15(g)(1) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(g)(1)</external-xref>) is amended by striking <quote>23
percent</quote> and inserting <quote>30 percent</quote>.</text>
</subsection><subsection id="HB68766501E654590BF7B878CF2C4DB39"><enum>(b)</enum><header>Goals for small
disadvantaged businesses and women-owned businesses</header><text>Section
15(g)(1) of such Act is further amended by striking <quote>5 percent</quote>
both places it appears and inserting <quote>8 percent</quote>.</text>
</subsection></section><section id="H25AE1036496945B29E7E84AE755C7EF2"><enum>202.</enum><header>Include
overseas contracts in small business goal</header><text display-inline="no-display-inline">Section 15(g) of the Small Business Act (15
U.S.C. 644(g)) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="HAD38857FE964486385AFC4B578435F2E" style="OLC">
<paragraph id="H96D5279AAE8A476DA4A9B744804B0015" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The procurement goals required by this
subsection apply to all procurement contracts, without regard to whether the
contract is for work within or outside the United States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEA938F2FDFE44A0FA3EC3115E5D4CA99"><enum>203.</enum><header>Annual goal
negotiation</header><text display-inline="no-display-inline">Section 15(g)(1)
of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(g)(1)</external-xref>) is amended by striking
<quote>The President shall annually establish Government-wide goals for
procurement contracts</quote> and inserting <quote>The President shall before
the close of each fiscal year establish new Government-wide procurement goals
for the following fiscal year for procurement contracts</quote>.</text>
</section><section id="H544E65849DAD4C358580D9E700985736"><enum>204.</enum><header>Usage of small
companies in goal achievement</header><text display-inline="no-display-inline">Section 15(g) of the Small Business Act (15
U.S.C. 644(g)) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="H31DC525D7086442D9BC180ABCECD4C2B" style="OLC">
<paragraph id="H13E2B03214984DC98545AABB3EC074E8" indent="up1"><enum>(4)</enum><text>For purposes of this subsection and
subsection (h), a small business concern shall be counted toward one additional
category goal only, even if that small business concern otherwise qualifies
under more than one category goal. In this paragraph, the term <term>category
goal</term> means a goal described in paragraph
(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H0FB54180EB014C30B6550465A4446B43"><enum>205.</enum><header>Annual plan for
each agency explaining how agency will meet small business goals</header><text display-inline="no-display-inline">Section 15(g) of the Small Business Act (15
U.S.C. 644(g)) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="HE15C02078817456DA3C716B59F52ED68" style="OLC">
<paragraph id="H6095488E9DFF4B7FA4551B08E6CCF12" indent="up1"><enum>(5)</enum><text>Before the beginning of each fiscal
year, the head of each Federal agency shall submit to the Administrator of the
Small Business Administration and to Congress a detailed plan explaining how
the agency intends to meet the small business goals under this subsection that
apply to that agency for that fiscal
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H96FAD4C8F5D4483BB7C71B7E8951E8BB"><enum>206.</enum><header>Making small
businesses the first choice</header><text display-inline="no-display-inline">Section 15(j) of the
<act-name parsable-cite="SBA">Small Business Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(j)</external-xref>)
is amended—</text>
<paragraph id="HC9BA95C890A644FCA0A6A6D9976C3493"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>$100,000</quote> and inserting <quote>the Simplified
Acquisition Threshold</quote>; and</text>
</paragraph><paragraph id="H0BD20A2848A548B9009EB462468EA72E"><enum>(2)</enum><text>in paragraph (3),
by striking <quote>subsection (a) of section 8</quote> and inserting
<quote>section 8, 31, or 36</quote>.</text>
</paragraph></section><section commented="no" id="HAB4AF5D1B28D4EC2BBB259B0C393C00"><enum>207.</enum><header>Uniform metric
for subcontracting achievements</header><text display-inline="no-display-inline">Section 8(d) of the Small Business Act (15
U.S.C. 637(d)) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="HAB7B39277A934F0381D963F1EF2EBDC" style="OLC">
<paragraph id="H135D0B4FFE79453EB8DE7254D442B14D" indent="up1"><enum>(12)</enum><text display-inline="yes-display-inline">In carrying out this subsection, the
Administrator shall require each prime contractor to report small business
subcontract usage at all tiers based on the percentage of the total dollar
amount of the contract
award.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H2551265789454A3EADCB7B5446B4B42F"><enum>208.</enum><header>Subcontracting
database</header><text display-inline="no-display-inline">Section 8(d) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(d)</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="H4B7BF1EF1C9E4C3190AF1D615017EDA5" style="OLC">
<paragraph id="H1DE6963C24D04FD09B7F00673326CDA4" indent="up1"><enum>(13)</enum><text display-inline="yes-display-inline">In carrying out this subsection, the
Administrator shall develop and maintain a password-protected database that
will enable the Administration to assist small businesses in marketing to large
corporations that have not achieved their small business
goals.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="HA521D488DBEC4561863EBFEA3DB1230"><enum>209.</enum><header>National
database</header><text display-inline="no-display-inline">The Administrator of
the Small Business Administration shall ensure that whenever a small business
enters its information in the Central Contractor Registry, or any successor to
that registry, the Administrator contacts that business within 30 days
regarding the likelihood of Federal contracting opportunities. The
Administrator shall ensure that each small business that so registers is, for
each industry code entered by that small business, provided with the total
dollar value of government contract awards to small businesses for that
industry.</text>
</section><section id="H734A211F6988432A8D06967C70AEAC24"><enum>210.</enum><header>Review of
subcontracting plans</header>
<subsection id="HEA02E662D93246A6A93883F16C025427"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the General Services Administration shall, after an opportunity
for notice and comment, begin to make modifications, if necessary, to the
Electronic Subcontracting Reporting System (ESRS) for the purpose of tracking
companies’ compliance with small business subcontracting plans included in
successful contract bids. ESRS shall be further developed, if necessary, in
such a way that it allows agencies to track whether or not the prime contractor
actually subcontracted work out to the subcontracting firms described in the
Small Business Subcontracting Plan. Further, ESRS shall be modified, if
necessary, so that it facilitates review of a company’s record of compliance
with small business subcontracting plans.</text>
</subsection><subsection id="H8B9066C1D372460FB02BDDFD68069B5E"><enum>(b)</enum><header>Periodic
reports</header><text>Prime contractors shall be required to submit Small
Business Subcontracting Plans to ESRS and submit subsequent periodic reports to
ESRS describing the extent to which the prime contractor complied with small
business subcontracting plans submitted as part of the company’s successful
contract proposal. Each such report shall include a specific accounting of
compliance with subcontracting goals described in the prime contractor’s Small
Business Subcontracting Plans related to Small Disadvantaged Businesses
Concerns, Women-Owned Small Business Concerns, Historically Black Colleges and
Universities and Minority Institutions, Service-Disabled Veteran-Owned Small
Business Concerns, and HUBZone Small Business Concerns. Each such accounting of
compliance shall also be included in ESRS.</text>
</subsection><subsection id="HED31D78701B94E2B96ACDFD87703B2DB"><enum>(c)</enum><header>Inclusion in
ESRS</header><text>The <quote>percentage of the total dollar amount of the
contract award</quote> that is paid to small business, as referred to in
paragraph (12) of section 8(d) of the Small Business Act (as added by section
206 of this Act) shall also be included in ESRS.</text>
</subsection><subsection id="H230ADAC0CB12409E844C8B7590AD4872"><enum>(d)</enum><header>Availability of
ESRS</header><text>ESRS and the information therein shall be made available to
agency officials and Source Selection Evaluation Boards (as referred to in
Federal Acquisition Regulations 3.104–1) that are charged with evaluating
contract proposals, and, when evaluating contract proposals, agencies shall
take into consideration the compliance with small business subcontracting plans
of companies competing for Federal contracts, and within one year after the
date of the enactment of this Act such consideration shall be reflected in the
Federal Acquisition Regulations.</text>
</subsection><subsection id="H2955DA5FC6C14AD9A088B1DB552DDED7"><enum>(e)</enum><header>Further
modifications required</header><text>ESRS shall be modified in such a way that
it can generate comparable reports on individual companies’ compliance records
to be used in the contract proposal evaluation processes of agencies.</text>
</subsection></section><section id="H936FC95E2532438ABE2BC8D053D00B5"><enum>211.</enum><header>Agency
obligation for fulfilling contracting goals</header><text display-inline="no-display-inline">Section 15(h) of the Small Business Act (15
U.S.C. 644(h)) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="HE3A807262C974AFC8F12E37C23782BE3" style="OLC">
<paragraph id="HF79CB853817149C58E3F6D946062D823" indent="up1"><enum>(4)</enum><text>At the conclusion of each fiscal
year, the head of each Federal agency shall submit to Congress a report
specifying the percentage of contracts awarded by that agency for that fiscal
year that were awarded to small business concerns. If the percentage is less
than 25 percent, the head of the agency shall, in the report, explain why the
percentage is less than 25 percent and what will be done to ensure that the
percentage for the following fiscal year will not be less than 25
percent.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H49A1436F0ACA4B62859E00409B43D27E"><enum>212.</enum><header>Appropriate
limits on value of sole source contracts</header>
<subsection id="H9537F23B01004A4485FD4BAAB0742687"><enum>(a)</enum><header>Appropriate
limits</header><text display-inline="yes-display-inline">If a law is not
enacted by December 31, 2007, revising the limits referred to in this
subsection, the Administrator for Federal Procurement Policy, in consultation
with the Administrator for Small Business, shall establish appropriate limits
on the value of contracts awarded without the use of competitive procedures to
participants in the program established by section 8(a) of the Small Business
Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)</external-xref>) that are not subject to the limits on the value of such
contracts established by paragraph (1)(D) of section 8(a) of such Act.</text>
</subsection><subsection id="H425632055A684C0AA1E99FB537BEDAE9"><enum>(b)</enum><header>Consultation</header><text>In
establishing any limit described in subsection (a). the Administrator for
Federal Procurement Policy shall consult with representatives of the affected
program participants. The Administrator shall also take into account—</text>
<paragraph id="H114DEE84DA794EDC8EC35A2DA6FF5C3"><enum>(1)</enum><text>any special
circumstances and needs of the affected program participants; and</text>
</paragraph><paragraph id="HA85B37F9ABD4410F8145A6D6F0A1391"><enum>(2)</enum><text>the advantages of
promoting competition in Federal contracting.</text>
</paragraph></subsection></section><section id="HC030B5D980B24F6CAC30C9D8F6C36672"><enum>213.</enum><header>Small business
goals for green small business concerns</header>
<subsection id="HD1DD619E0D594ACC9EE4A03100296763"><enum>(a)</enum><header>In
general</header><text>Section 15(g) of the Small Business Act (15 U.S.C.
644(g)) is amended—</text>
<paragraph id="H79D9751BB5D941AF995527B48E00E87D"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HBD3664846B024EAD943010394F4535DB"><enum>(A)</enum><text>by striking
<quote>and small business concerns owned and controlled by women</quote> both
places such term appears and inserting <quote>small business concerns owned and
controlled by women, and green small business concerns</quote>; and</text>
</subparagraph><subparagraph id="H0FCB1FC416AD4B91BC6F86656917CFED"><enum>(B)</enum><text>by inserting
before <quote>Notwithstanding the Government-wide goal</quote> the following:
<quote>The Government-wide goal for participation by green small business
concerns shall be established at not less than 5 percent of the total value of
all prime contract and subcontract awards for each fiscal year.</quote>; and</text>
</subparagraph></paragraph><paragraph id="HAB0ACFF089134002BC5DD9EF38C6100"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subparagraph id="HC861300634EF45A0B43DAF268788FC72"><enum>(A)</enum><text>by striking
<quote>and by small business concerns owned and controlled by women</quote>
both places such term appears and inserting <quote>by small business concerns
owned and controlled by women, and by green small business concerns</quote>;
and</text>
</subparagraph><subparagraph id="H02A271AD31FA4718B75D11B0936E5279"><enum>(B)</enum><text>by striking
<quote>and small business concerns owned and controlled by women</quote> and
inserting <quote>small business concerns owned and controlled by women, and
green small business concerns</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H7C8303F30B1248618C6FD11D3B11934D"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H7CA0F77DEC69459F951F00F9698E1BD2"><enum>(1)</enum><header>Definition</header><text>Section
3 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="HF0030FCC7B31402EA49670B2E26D9264" style="OLC">
<subsection id="H425D5EEAC1D445CCBA0634890413A2E9"><enum>(s)</enum><header>Definitions
relating to green small business concerns</header><text display-inline="yes-display-inline">In this Act, the term <quote>green small
business concern</quote> means a small business concern that carries out its
activities in an environmentally sound manner. The Administrator shall, in
consultation with the Environmental Protection Agency, the General Services
Administration, and other appropriate agencies, specify detailed definitions or
standards by which a small business concern may be determined to be a green
small business concern for the purposes of this Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC6906C2E7CA644D3966EE12630EBBFCD"><enum>(2)</enum><header>Policy</header><text>Section
8(d) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(d)</external-xref>) is amended—</text>
<subparagraph id="H8DAD834ECD7D456AA4128C399BB16284"><enum>(A)</enum><text>in paragraph (1)
(in both places such term appears), paragraph (3)(A) (in both places such term
appears), paragraph (4)(D), paragraph (6)(A), paragraph (6)(C), paragraph
(6)(F), and paragraph (10)(B) by striking <quote>and small business concerns
owned and controlled by women</quote> and inserting <quote>small business
concerns owned and controlled by women, and green small business
concerns</quote>;</text>
</subparagraph><subparagraph id="H50C81F4E1FF042F9A023DA9EA000062"><enum>(B)</enum><text>in paragraph (3)(F)
by striking <quote>or a small business concern owned and controlled by
women</quote> and inserting <quote>a small business concern owned and
controlled by women, or a green small business concern</quote>; and</text>
</subparagraph><subparagraph id="H53A00BE9243B4BE8887C00EAA3002FFD"><enum>(C)</enum><text>in paragraph
(4)(E) by striking <quote>and for small business concerns owned and controlled
by women</quote> and inserting <quote>for small business concerns owned and
controlled by women, and for green small business concerns</quote>.</text>
</subparagraph></paragraph><paragraph id="H2E9B6973B7E2498D9B0000B72396A374"><enum>(3)</enum><header>Reports on
goals</header><text>Section 15(h) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644(h)</external-xref>) is amended, in
each of paragraphs (1), (2)(A), (2)(D), and (2)(E) by striking <quote>and small
business concerns owned and controlled by women</quote> and inserting
<quote>small business concerns owned and controlled by women, and green small
business concerns</quote>.</text>
</paragraph><paragraph id="HF332B9912ADF408D8B7150C3958155B4"><enum>(4)</enum><header>Penalties</header><text>Section
16 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/645">15 U.S.C. 645</external-xref>) is amended in each of subsections (d)(1) and (e)
by striking <quote>or a <quote>small business concern owned and controlled by
women</quote></quote> and inserting <quote>a <quote>small business concern
owned and controlled by women</quote>, or a <quote>green small business
concern</quote></quote>.</text>
</paragraph></subsection></section><section id="H17F723982F404859913E0198001DE0C6"><enum>214.</enum><header>Study on
providing financial incentives to contractors that meet minority and
disadvantaged business enterprise goals</header><text display-inline="no-display-inline">The Administrator of the Small Business
Administration shall carry out a study on the feasibility and desirability of
providing financial incentives to contractors operating under contracts from a
Federal agency that achieve the percentage goals set forth in said contracts’
subcontracting plans for the utilization of small business concerns owned and
controlled by socially and economically disadvantaged individuals. The
Administrator shall submit to Congress a report on the results of the study,
together with any findings, conclusions, and recommendations that the
Administrator considers appropriate.</text>
</section><enum>III</enum><header>Protection of
Taxpayers from Fraud</header>
<section display-inline="no-display-inline" id="H8E0B69E5B7524AA9BAAC7656D7E4660"><enum>301.</enum><header>Small business
size protest notification</header>
<subsection id="H7D58AD48B4584F11BAD0D4FFBB41C0BB"><enum>(a)</enum><header>In
general</header><text>The Administrator of the Small Business Administration
shall work with appropriate Federal agencies to ensure that whenever a business
concern is awarded a contract on the basis that it qualifies as small and then
is determined not to qualify as small, a notification of those facts (that an
award was made on such a basis, and that such a determination was made) shall
be placed adjacent to that concern’s listing in the Central Contractor Registry
(or any successor to that registry).</text>
</subsection><subsection id="H830099B9AEC045179C99A3742B15B883"><enum>(b)</enum><header>Comptroller
general certification</header><text display-inline="yes-display-inline">The
Administrator shall, in making any report of small business goal
accomplishments, qualify the accomplishments as <quote>estimated</quote>, until
the Administrator obtains from the Comptroller General the Comptroller
General’s certification that there are no data integrity issues with respect to
the national repository of contract award information known as Federal
Procurement Data System-Next Generation (FPDS–NG), or any successor to that
repository.</text>
</subsection><subsection id="H657D4E779DBF4E3C00F3CC9E715EFB7"><enum>(c)</enum><header>Awards to large
businesses</header><text>For each Federal agency, the Inspector General of that
agency shall, on an annual basis, submit to Congress a report on the number and
dollar value of contract awards that were coded as awards to small business
concerns but in fact were made to businesses that did not qualify as small
business concerns.</text>
</subsection></section><section id="H1AEFA2AF907345F8A04D213CBF36E7A6"><enum>302.</enum><header>Review of
national registry</header><text display-inline="no-display-inline">The
Administrator of the Small Business Administration shall ensure, on a biannual
basis, that an independent audit is performed of the Central Contractor
Registry, or any successor to that registry, and that the Dynamic Small
Business Search portion of the registry, or any successor to that portion of
the registry, is purged of any businesses that are not in fact small
businesses. If a business that has been so purged attempts, while not in fact a
small business, to re-register, that business is subject to debarment as a
Federal contractor and is further subject to penalties outlined in section 16
of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/645">15 U.S.C. 645</external-xref>).</text>
</section><section id="H7375E7CFECEC4241AC4C87AA2CD631E5"><enum>303.</enum><header>Recertification
of compliance with size standards and registration with Central Contractor
Registry</header><text display-inline="no-display-inline">Section 3(a) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632(a)</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="HGO00" display-inline="no-display-inline" id="H63C61FAB6149495F9C1BF3007E6DD8A3" style="OLC">
<paragraph id="H8B84CA9E050D45589B87A18C86204232" indent="up1"><enum>(5)</enum><header>Recertification</header>
<subparagraph id="HDC8EEBA7CC12414189BDFF11854BF98"><enum>(A)</enum><header>In general</header><text>If a
business concern is awarded a contract because of a standard by which it is
determined to be a small business concern, and the business concern is close to
exceeding that standard at the time the award is made, then the business
concern must, annually after the date of the award, recertify to the agency
awarding the contract whether it meets that standard.</text>
</subparagraph><subparagraph id="H98C57048AA374F2097CB8062B5F35BEF"><enum>(B)</enum><header><quote>Close to
exceeding</quote></header><text>For purposes of subparagraph (A), a business
concern is close to exceeding—</text>
<clause id="HA52E0E1F6CEB460FB749ACB932BAEBFB"><enum>(i)</enum><text>a number-of-employees standard if
the number of employees of the business concern is 95 percent or more of the
maximum number of employees allowed under the standard; and</text>
</clause><clause id="H45AE4004300343189799B048BA4C90EA"><enum>(ii)</enum><text>a dollar-volume-of-business
standard if the dollar volume of business is 80 percent or more of the maximum
dollar volume allowed under the standard.</text>
</clause></subparagraph></paragraph><paragraph id="H3E9903C86E8C496C9806B224F5E3719F" indent="up1"><enum>(6)</enum><header>Registry</header><text>For a
business concern to be awarded a contract because of a standard by which it is
determined to be a small business concern, the business concern must, annually
after the end of the fiscal year used by the business concern, update its
listing in the Central Contractor
Registry.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>IV</enum><header>Authorization of
Appropriations</header>
<section id="H47C1E965C6B34BDC81A2B21983BF004E"><enum>401.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated such sums as may be necessary to carry out this
Act and the amendments made by this Act.</text>
</section>
Passed the House of
Representatives May 10, 2007.
Lorraine C. Miller,
Clerk.