[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3867 Referred in Senate (RFS)]

  1st Session
                                H. R. 3867


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 1, 2007

 Received; read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 AN ACT


 
  To update and expand the procurement programs of the Small Business 
                Administration, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Contracting Program Improvements Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--ENSURING GOVERNMENT CONTRACT OPPORTUNITIES FOR SMALL BUSINESS 
       CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS

Sec. 101. Expanding procurement opportunities.
Sec. 102. Penalties for misrepresentation.
Sec. 103. Implementation of Executive Order No. 13360.
Sec. 104. Priority for severely disabled veterans.
    TITLE II--PROTECTING TAXPAYERS AND ENSURING PROGRAM CONSISTENCY

Sec. 201. Requiring business integrity of small business concerns.
Sec. 202. Establishment of goals.
Sec. 203. Small business concern subcontracting policy.
Sec. 204. Increased size of available contracts.
Sec. 205. Expanding protest authorization.
Sec. 206. Prohibition on contract awards to contractors in violation of 
                            immigration laws.
       TITLE III--EXPANDING OPPORTUNITIES FOR WOMEN ENTREPRENEURS

Sec. 301. Implement the women's procurement program.
             TITLE IV--STRENGTHENING COMMUNITY DEVELOPMENT

Sec. 401. On-site verification.
Sec. 402. Limitation on construction contracts.
Sec. 403. Study on effectiveness of HUBZone program in reaching rural 
                            areas.
                 TITLE V--MODERNIZING THE 8(a) PROGRAM

Sec. 501. Modernizing the section 8(a) program net worth limitations.
Sec. 502. Extension of the section 8(a) program term.
Sec. 503. Report on implementation.
Sec. 504. Assistance study.
Sec. 505. Examination of list of groups the members of which are 
                            presumed to be socially disadvantaged for 
                            purposes of small disadvantaged business 
                            program.
                        TITLE VI--OTHER MATTERS

Sec. 601. Affiliation for certain franchises.
Sec. 602. Sense of the House of Representatives on acquisitions 
                            conducted under the General Services 
                            Administration's Federal Supply Schedule.
Sec. 603. Study on frivolous protests.
Sec. 604. Small Business Administration Liaison.
Sec. 605. Prohibition on business-class or first-class airline travel.

TITLE I--ENSURING GOVERNMENT CONTRACT OPPORTUNITIES FOR SMALL BUSINESS 
       CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS

SEC. 101. EXPANDING PROCUREMENT OPPORTUNITIES.

    (a) Service-Disabled Veterans.--Section 36(a) of the Small Business 
Act (15 U.S.C. 657f(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``may'' and inserting ``shall''; and
            (2) in paragraph (1), by striking ``and the contracting 
        officer'' and all that follows through ``contracting 
        opportunity''.
    (b) HUBZone.--Section 31(b)(2)(B) of such Act (15 U.S.C. 
657a(b)(2)(B)) is amended by striking ``shall'' and inserting ``may''.

SEC. 102. PENALTIES FOR MISREPRESENTATION.

    Section 16(d)(1) of the Small Business Act (15 U.S.C. 645(d)(1)) is 
amended by inserting ``a `small business concern owned and controlled 
by service-disabled veterans','' before ``or a `small business concern 
owned and controlled by women'''.

SEC. 103. IMPLEMENTATION OF EXECUTIVE ORDER NO. 13360.

    Section 36 of the Small Business Act (15 U.S.C. 657f) is amended by 
adding at the end the following new subsection:
    ``(f) Implementation of Executive Order No. 13360.--The 
Administrator shall--
            ``(1) provide small business concerns owned and controlled 
        by service-disabled veterans with information and assistance 
        concerning participation in Federal contracting;
            ``(2) advise and assist other agencies in their strategies 
        to expand procurement opportunities for such concerns; and
            ``(3) make training assistance on Federal contract law, 
        procedures, and practices available to such concerns.''.

SEC. 104. PRIORITY FOR SEVERELY DISABLED VETERANS.

    In developing regulations to implement section 101, the 
Administrator shall give a priority to those certified service-disabled 
veterans that are severely disabled.

    TITLE II--PROTECTING TAXPAYERS AND ENSURING PROGRAM CONSISTENCY

SEC. 201. REQUIRING BUSINESS INTEGRITY OF SMALL BUSINESS CONCERNS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following new subsection:
    ``(o) Requirement of Business Integrity.--No small business concern 
may receive any benefit under section 8(a), 8(m), 31(b)(2)(A), 
31(b)(2)(B), 36(a), or 36(b) unless the Administrator first performs a 
background check on the owners and officers of such small business 
concern and determines that the owners and officers do not lack 
business integrity. For purposes of such a determination, previous 
criminal convictions will create a presumption of a lack of business 
integrity.''.

SEC. 202. ESTABLISHMENT OF GOALS.

    (a) Establishment of Government-Wide Goals.--Section 15(g)(1) of 
the Small Business Act (15 U.S.C. 644(g)(1)) is amended by striking the 
first sentence and inserting ``The President shall annually establish 
Government-wide goals for procurement contracts awarded to small 
business concerns, small business concerns owned and controlled by 
service-disabled veterans, qualified HUBZone small business concerns, 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals, small business concerns 
participating in the program established by section 8(a), and small 
business concerns owned and controlled by women.''.
    (b) Technical Corrections.--Section 15 of the Small Business Act 
(15 U.S.C. 644) is amended--
            (1) in subsection (g) by adding at the end the following:
    ``(3) Each agency shall, in consultation with the Administrator, 
establish goals for the usage, as prime contractors, of small business 
concerns that participate in the program under section 8(a).''; and
            (2) in subsection (h) by adding at the end the following:
    ``(4) Each prime contractor shall, in consultation with the 
Administrator, establish goals for the usage, as subcontractors, of 
small business concerns that participate in the program under section 
8(a).''.

SEC. 203. SMALL BUSINESS CONCERN SUBCONTRACTING POLICY.

    Section 8(d)(1) of the Small Business Act (15 U.S.C. 637(d)(1)) is 
amended by striking the first sentence and inserting ``It is the policy 
of the Unites States that small business concerns, small business 
concerns owned and controlled by veterans, small business concerns 
owned and controlled by service-disabled veterans, qualifying HUBZone 
small business concerns, small business concerns owned and controlled 
by socially and economically disadvantaged individuals, small business 
concerns participating in the program established by section 8(a), and 
small business concerns owned and controlled by women, shall have the 
maximum practicable opportunity to participate in the performance 
contracts let by any Federal agency, including contracts and 
subcontracts for subsystems, assemblies, components, and related 
services for major systems.''.

SEC. 204. INCREASED SIZE OF AVAILABLE CONTRACTS.

    (a) Section 8(a) Program.--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 
        ``$5,500,000''; and
            (2) by striking ``$3,000,000'' and inserting 
        ``$5,100,000''.
    (b) HUBZone Program.--Section 31(b)(2)(A)(ii) of such Act (15 
U.S.C. 657a(b)(2)(A)(ii)) is amended--
            (1) by striking ``$5,000,000'' and inserting 
        ``$5,500,000''; and
            (2) by striking ``$3,000,000'' and inserting 
        ``$5,100,000''.
    (c) Service-Disabled Veteran Program.--Section 36(a)(2) of such Act 
(15 U.S.C. 657f(a)(2)) is amended--
            (1) by striking ``$5,000,000'' and inserting 
        ``$5,500,000''; and
            (2) by striking ``$3,000,000'' and inserting 
        ``$5,100,000''.

SEC. 205. EXPANDING PROTEST AUTHORIZATION.

    Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is 
amended by adding at the end the following new paragraphs:
            ``(22) Rules similar to the rules of paragraphs (5) and (6) 
        of subsection (m) shall apply for purposes of this subsection.
            ``(23) For the purposes of challenging the eligibility of a 
        small business concern to receive an award under section 8(a), 
        8(m), 31(b)(2)(A), 31(b)(2)(B), 36(a), or 36(b), the term 
        `interested party' shall include any small business concern.''.

SEC. 206. PROHIBITION ON CONTRACT AWARDS TO CONTRACTORS IN VIOLATION OF 
              IMMIGRATION LAWS.

    Any employer found, based on a determination by the Secretary of 
Homeland Security or the Attorney General to have engaged in a pattern 
or practice of hiring, recruiting or referring for a fee, for 
employment in the United States an alien knowing the person is an 
unauthorized alien shall be subject to debarment from the receipt of 
future Federal contracts under this Act.

       TITLE III--EXPANDING OPPORTUNITIES FOR WOMEN ENTREPRENEURS

SEC. 301. IMPLEMENT THE WOMEN'S PROCUREMENT PROGRAM.

    Subsection (m) of section 8 of the Small Business Act (15 U.S.C. 
637(m)) is amended--
            (1) by striking paragraphs (1) through (4) and inserting 
        the following:
            ``(1) Definition.--In this subsection, the term `small 
        business concern owned and controlled by women' has the meaning 
        given such term in section 3(n), except that ownership shall be 
        determined without regard to any community property law.
            ``(2) Authority to restrict competition.--
                    ``(A) In general.--In accordance with this 
                subsection, a contracting officer may restrict 
                competition for any contract for the procurement of 
                goods or services by the Federal Government to small 
                business concerns owned and controlled by women, if--
                            ``(i) each of the concerns is not less than 
                        51 percent owned by 1 or more women who are 
                        economically disadvantaged (and such ownership 
                        is determined without regard to any community 
                        property law);
                            ``(ii) the contracting officer has a 
                        reasonable expectation that 2 or more small 
                        business concerns owned and controlled by women 
                        will submit offers for the contract;
                            ``(iii) the contract is for the procurement 
                        of goods or services with respect to an 
                        industry identified pursuant to paragraph (4);
                            ``(iv) in the estimation of the contracting 
                        officer, the contract award can be made at a 
                        fair and reasonable price; and
                            ``(v) each concern is certified in a manner 
                        described in subparagraph (B).
                    ``(B) Acceptance of certification.--For purposes of 
                subparagraph (A)(v), a contracting officer is required 
                to accept a small business concern's certification as a 
                small business concern owned and controlled by women 
                when such certification is made by--
                            ``(i) a Federal agency or a State or local 
                        government;
                            ``(ii) a national certifying entity 
                        approved by the Administrator; or
                            ``(iii) the small business concern, when 
                        such concern certifies to the contracting 
                        officer that it is a small business concern 
                        owned and controlled by women and provides 
                        adequate documentation in accordance with 
                        standards established by the Administrator to 
                        support such certification.
            ``(3) Waiver.--With respect to a small business concern 
        owned and controlled by women, the Administrator may waive 
        paragraph (2)(A)(i) if--
                    ``(A) such concern is in an industry identified 
                pursuant to paragraph (4); and
                    ``(B) the Administrator determines that such 
                concern is in an industry in which small business 
                concerns owned and controlled by women are 
                substantially under-represented in Federal contracting.
            ``(4) Identification of industries.--
                    ``(A) In general.--Not less often than every five 
                years, the Administrator shall conduct a study to 
                identify, for purposes of paragraphs (2)(A)(iii) and 
                (3)(A), industries in which small business concerns 
                owned and controlled by women are under-represented in 
                Federal contracting. The parameters for the study shall 
                be as follows:
                            ``(i) For purposes of this paragraph, the 
                        Administrator shall identify an industry if, 
                        and only if, the share of Federal contracts 
                        awarded to small business concerns owned and 
                        controlled by women in such industry is small 
                        relative to the prevalence of business concerns 
                        owned and controlled by women in the pool of 
                        business concerns in such industry that have at 
                        least one employee.
                            ``(ii) The study shall measure utilization 
                        and availability by--
                                    ``(I) using the two best available 
                                data sources;
                                    ``(II) including only business 
                                concerns that have at least one 
                                employee; and
                                    ``(III) measuring only Federal 
                                contracts awarded for amounts over 
                                $25,000.
                            ``(iii) The study shall include four sets 
                        of disparity measurement tables to compute 
                        disparity ratios. The four sets are--
                                    ``(I) all business concerns in the 
                                United States relative to the number of 
                                Federal contracts awarded to small 
                                business concerns owned and controlled 
                                by women;
                                    ``(II) small business concerns 
                                owned and controlled by women that have 
                                demonstrated an interest in or that 
                                have secured Federal contracts relative 
                                to the number of Federal contracts 
                                awarded to small business concerns 
                                owned and controlled by women;
                                    ``(III) all business concerns in 
                                the United States relative to the 
                                dollar amounts of Federal contracts 
                                awarded to small business concerns 
                                owned and controlled by women; and
                                    ``(IV) small business concerns 
                                owned and controlled by women that have 
                                demonstrated an interest in or that 
                                have secured government contracts 
                                relative to the dollar amounts of 
                                Federal contracts awarded.
                    ``(B) Underrepresented industries.--Until such time 
                as the Administrator completes the identification of 
                industries required by subparagraph (A), the following 
                industries, as identified by their 2-Digit North 
                American Industry Classification System Code, are 
                deemed underrepresented by women in Federal 
                contracting: 11 (Forestry), 21 (Mining), 22 
                (Utilities), 23 (Construction), 31 (Manufacturing), 32 
                (Manufacturing), 33 (Manufacturing), 42 (Wholesale 
                Trade), 44 (Retail Trade), 45 (Retail Trade), 48 
                (Transportation), 49 (Transportation), 51 
                (Information), 52 (Finance and Insurance), 53 (Real 
                Estate and Rental and Leasing), 54 (Professional, 
                Scientific, and Technical Services), 56 (Administrative 
                and Support, Waste Management, and Remediation 
                Services), 61 (Education Services), 62 (Health Care and 
                Social Assistance), 71 (Arts, Entertainment, and 
                Recreation), 72 (Accommodation and Food Services), and 
                81 (Other Services).
                    ``(C) Deadline.--Not later than 90 days after the 
                date of the enactment of this subparagraph, the 
                Administrator shall--
                            ``(i) ensure the completion of the first 
                        study required by subparagraph (A);
                            ``(ii) approve national certifying entities 
                        for the purposes of paragraph (2)(B)(ii);
                            ``(iii) establish procedures required by 
                        paragraph (5)(A); and
                            ``(iv) establish standards described in 
                        paragraph (2)(B)(iii).'';
            (2) in paragraph (5), by striking ``(2)(F)'' in each place 
        it appears and inserting ``(2)(B)''; and
            (3) in paragraph (5), by adding at the end the following 
        new subparagraph:
                    ``(D) Protests by small business concerns.--For 
                purposes of this paragraph, the term `interested party' 
                shall include any small business concern.''.

             TITLE IV--STRENGTHENING COMMUNITY DEVELOPMENT

SEC. 401. ON-SITE VERIFICATION.

    Section 31(b) of the Small Business Act (15 U.S.C. 657a(b)) is 
amended by adding at the end the following:
            ``(5) On-site verification of status.--
                    ``(A) Verification.--When a small business concern 
                that has previously been awarded a contract under 
                paragraph (2)(A) or (2)(B) is to be awarded a second 
                contract under paragraph (2)(A) or (2)(B), the 
                Administrator shall perform an on-site inspection to 
                determine whether such small business concern is a 
                qualified HUBZone small business concern. This 
                paragraph does not require such an inspection before 
                the award of a third or subsequent contract. This 
                paragraph does not prevent a second contract from being 
                awarded before such inspection is completed.
                    ``(B) Notification by small business concern.--The 
                Administrator shall require a small business concern to 
                notify the Administrator, prior to being awarded a 
                second contract under paragraph (2)(A) or (2)(B), of 
                such business concern's attempt to be awarded a second 
                contract under paragraph (2)(A) or (2)(B). Not later 
                than 90 days after the date of the enactment of this 
                subparagraph, the Administrator shall establish 
                procedures to implement this subparagraph.''.

SEC. 402. LIMITATION ON CONSTRUCTION CONTRACTS.

    Section 31(b) of the Small Business Act (15 U.S.C. 657a(b)) is 
amended by adding at the end the following:
            ``(6) Limit hubzone program construction contracts in or 
        near a hubzone.--A small business concern may not obtain a 
        construction contract by reason of the HUBZone program unless 
        the construction project is located in or near the HUBZone in 
        which the small business concern has its principal place of 
        business. The Administrator shall prescribe standards for 
        determining when a project is located `near' a HUBZone for 
        purposes of this paragraph, except that under no circumstances 
        can a project located more than 150 miles from a HUBZone be 
        located `near' that HUBZone.''.

SEC. 403. STUDY ON EFFECTIVENESS OF HUBZONE PROGRAM IN REACHING RURAL 
              AREAS.

    The Administrator of the Small Business Administration shall carry 
out a study on the effectiveness of the HUBZone program in reaching 
rural areas to determine whether there are needy areas that do not 
qualify under the program and whether there are areas that currently 
qualify under the program that are inconsistent with the program's 
original intent. Not later than 6 months after the date of the 
enactment of this Act, the Administrator shall submit to Congress a 
report containing the results of the study and any recommendations that 
the Administrator considers appropriate for alternative ways to 
evaluate eligibility for HUBZones in rural areas.

                 TITLE V--MODERNIZING THE 8(a) PROGRAM

SEC. 501. MODERNIZING THE SECTION 8(A) PROGRAM NET WORTH LIMITATIONS.

    (a) Modifications to 8(a) Program.--Notwithstanding any provision 
of the Small Business Act (15 U.S.C. 631 et seq.), the Administrator 
shall administer the program under section 8(a) of such Act with the 
following modifications:
            (1) Determination for term of program.--For the purpose of 
        this section, an individual who has been determined by the 
        Administrator to be economically disadvantaged at the time of 
        program entry shall be deemed to be economically disadvantaged 
        for the term of the program.
            (2) Matters excluded.--In determining personal net worth, 
        the Administrator shall exclude from such determination the 
        following:
                    (A) The value of any investment of an economically 
                disadvantaged owner in the small business concern, 
                except that such value shall be taken into account 
                under this paragraph when comparing such concerns to 
                other concerns in the same business area that are owned 
                by other than socially disadvantaged individuals.
                    (B) The equity of an economically disadvantaged 
                owner in a primary personal residence.
            (3) Maximum net worth.--When considering an individual's 
        net worth for the purpose of determining the degree of 
        diminished credit and capital opportunities of such individual, 
        the Administrator shall consider an individual net worth of 
        $550,000 or less as tending to show diminished credit and 
        capital opportunities.
    (b) Effective Date for Modifications to the 8(a) Program.--This 
section shall apply with respect to small business concerns that apply 
to the program under section 8(a) of the Small Business Act (15 U.S.C. 
637(a)) after the date of the enactment of this Act.

SEC. 502. EXTENSION OF THE SECTION 8(A) PROGRAM TERM.

    (a) Program Term.--The program term for the program under section 
8(a) of the Small Business Act shall be 10 years. The first 6 years 
shall be the developmental phase, and the last 4 years shall be the 
transitional phase.
    (b) Effective Date for Modifications to the 8(a) Program.--
            (1) In general.--This section shall apply with respect to 
        small business concerns that apply to the program under section 
        8(a) of the Small Business Act (15 U.S.C. 637(a)) after the 
        date of the enactment of this Act.
            (2) Transitional rule.--A small business concern 
        participating in the program under section 8(a) of such Act (15 
        U.S.C. 637(a)) may participate for not more than 10 years.

SEC. 503. REPORT ON IMPLEMENTATION.

    Section 155 of the Small Business Reauthorization and Manufacturing 
Assistance Act of 2004 (15 U.S.C. 657g) is amended by adding at the end 
the following: ``Annually, concurrent with the submission of the Small 
Business Administration's budget request to the Congress, the 
Administrator shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report detailing progress the 
Administrator has made towards the implementation of this section.''.

SEC. 504. ASSISTANCE STUDY.

    (a) Study.--The Administrator of the Small Business Administration 
shall conduct a study to determine what changes would be required to 
provide greater Federal contracting assistance to participants in the 
program created by section 8(a) of the Small Business Act that have 
less equity in their business concerns than other participants in the 
program.
    (b) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Administrator shall submit to the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives a report detailing 
the results of the study described in subsection (a).

SEC. 505. EXAMINATION OF LIST OF GROUPS THE MEMBERS OF WHICH ARE 
              PRESUMED TO BE SOCIALLY DISADVANTAGED FOR PURPOSES OF 
              SMALL DISADVANTAGED BUSINESS PROGRAM.

    The Administrator of the Small Business Administration shall 
examine the list of groups the members of which are presumed to be 
socially disadvantaged for purposes of the Small Disadvantaged Business 
program under section 8(a) of the Small Business Act and shall consider 
whether the list should be updated to include additional groups. Not 
later than 6 months after the date of the enactment of this Act, the 
Administrator shall submit to Congress a report on the results of the 
examination.

                        TITLE VI--OTHER MATTERS

SEC. 601. AFFILIATION FOR CERTAIN FRANCHISES.

    Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
amended by adding at the end the following new paragraph:
            ``(5) Special rule relating to franchises in the temporary 
        employee services industry.--In determining whether a 
        franchisee is affiliated with a franchisor in the temporary 
        employee services industry, the Administrator shall--
                    ``(A) disregard--
                            ``(i) whether the franchisor finances the 
                        payroll of the temporary staffing personnel 
                        (including billing, collecting, and remitting 
                        client fees); and
                            ``(ii) whether the temporary staffing 
                        personnel are treated as employees or 
                        independent contractors of the franchisor for 
                        tax or other purposes; and
                    ``(B) consider the processing of payroll and 
                billing by a franchisor as customary and common 
                practice in the temporary employee services industry 
                that does not provide probative weight.''.

SEC. 602. SENSE OF THE HOUSE OF REPRESENTATIVES ON ACQUISITIONS 
              CONDUCTED UNDER THE GENERAL SERVICES ADMINISTRATION'S 
              FEDERAL SUPPLY SCHEDULE.

    (a) Findings.--Congress finds the following:
            (1) The Small Business Act was adopted by Congress to 
        ensure that small business concerns receive fair access to, and 
        a fair share of, Federal government contracts and subcontracts.
            (2) There is a disagreement between the General Services 
        Administration and the Small Business Administration on whether 
        the Small Business Act applies to the acquisitions under the 
        General Services Administration's Federal Supply Schedule, 
        which account for over $30,000,000,000 in procurement dollars 
        awarded each year.
            (3) As demonstrated in proceedings of the White House 
        Acquisition Advisory Panel, small businesses hold 79.6 percent 
        of contracts under the Federal Supply Schedule, but receive 
        only 37.1 percent of dollars awarded under the Federal Supply 
        Schedule, and this disparity has a significant impact on the 
        competitive viability of small business concerns in government 
        contracting.
    (b) Sense of the House.--Therefore, it is the sense of the House of 
Representatives that small business set-asides should not be excluded 
from any acquisitions under the General Services Administration's 
Federal Supply Schedule.

SEC. 603. STUDY ON FRIVOLOUS PROTESTS.

    (a) Study.--The Administrator of the Small Business Administration 
shall conduct a study to determine, with respect to small business 
contracts, whether incumbent Federal contractors submit frivolous 
protests to extend the length of current contracts before protest 
decisions are resolved.
    (b) Contents.--In conducting the study, the Administrator shall--
            (1) determine the number of Government Accountability 
        Office bid protests and Small Business Administration size 
        protests filed by incumbent Federal contractors with respect to 
        small business contracts, the number of incumbent contracts 
        extended because of the protest, the extra costs of extending 
        incumbent contracts during the protest, and the final rulings 
        of these protests;
            (2) determine the financial impact of protests filed by 
        incumbent Federal contractors on small businesses that were 
        originally awarded the protested small business contracts, 
        including costs associated with defending the protests and 
        costs incurred by Federal agencies;
            (3) identify the incumbent Federal contractors that file 
        the most unsuccessful protests on small business contracts; and
            (4) develop recommendations--
                    (A) to ease any financial burden on small 
                businesses during the protest of small business 
                contracts; and
                    (B) to discourage frivolous protests by incumbent 
                Federal contractors on small business contracts.
    (c) Consultation.--In conducting the study, the Administrator shall 
consult with the Government Accountability Office, any necessary 
Federal agencies, and the Office of Federal Procurement Policy.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Administrator shall submit to Congress a 
report on the results of the study, together with the recommendations 
developed under subsection (b)(4).

SEC. 604. SMALL BUSINESS ADMINISTRATION LIAISON.

    (a) Establishment.--The Administrator of the Small Business 
Administration shall create a liaison position whose duty it is to 
ensure that section 2(i) of the Small Business Act is carried out.
    (b) Functions.--In carrying out the duty described in subsection 
(a), the liaison shall consult with the Assistant Secretary of the 
Department of Homeland Security for United States Immigration and 
Customs Enforcement.

SEC. 605. PROHIBITION ON BUSINESS-CLASS OR FIRST-CLASS AIRLINE TRAVEL.

    In carrying out the provisions of the Small Business Contracting 
Program Improvements Act, the Small Business Administrator or any 
employee may not purchase business-class or first-class airline travel 
in contravention of sections 301-10.122 through 301-10.124 of title 41, 
Code of Federal Regulations.

            Passed the House of Representatives October 30, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.