110 HR 3867 : Small Business Contracting
U.S. House of Representatives
2007-11-01
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 Contracting
Program Improvements Act
.
(b)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.
<enum>I</enum><header>Ensuring
government contract opportunities for small business concerns owned and
controlled by service-disabled veterans</header>
<section id="H58D85986469F4E078075286951C1D18C"><enum>101.</enum><header>Expanding
procurement opportunities</header>
<subsection id="HBE10F3A7FA794DC49399900453564EA2"><enum>(a)</enum><header>Service-disabled
veterans</header><text display-inline="yes-display-inline">Section 36(a) of the
Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657f">15 U.S.C. 657f(a)</external-xref>) is
amended—</text>
<paragraph id="HDB19E98C471841FBAD7EEAA2415957D7"><enum>(1)</enum><text>in the matter
preceding paragraph (1), by striking <quote>may</quote> and inserting
<quote>shall</quote>; and</text>
</paragraph><paragraph id="H8EBA4179C89344FC9F005DAD5EC57388"><enum>(2)</enum><text>in paragraph (1),
by striking <quote>and the contracting officer</quote> and all that follows
through <quote>contracting opportunity</quote>.</text>
</paragraph></subsection><subsection id="H009BDA37D9974450BDFC633B2D57064B"><enum>(b)</enum><header>HUBZone</header><text>Section
31(b)(2)(B) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(b)(2)(B)</external-xref>) is amended
by striking <quote>shall</quote> and inserting <quote>may</quote>.</text>
</subsection></section><section id="HBF13F44204284830827C7005F73684C2"><enum>102.</enum><header>Penalties for
misrepresentation</header><text display-inline="no-display-inline">Section
16(d)(1) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/645">15 U.S.C. 645(d)(1)</external-xref>) is amended by
inserting <quote>a <quote>small business concern owned and controlled by
service-disabled veterans</quote>,</quote> before <quote>or a <quote>small
business concern owned and controlled by women</quote></quote>.</text>
</section><section id="HA17230F0555D4AA5BC914920FD00042E"><enum>103.</enum><header>Implementation
of Executive Order No. 13360</header><text display-inline="no-display-inline">Section 36 of the Small Business Act (15
U.S.C. 657f) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF433CDF9BA8D4D1EB4F0E52F00D17656" style="OLC">
<subsection id="H6D022A9BED2847CE9323FC91E3ACF416"><enum>(f)</enum><header>Implementation
of Executive Order No. 13360</header><text>The Administrator shall—</text>
<paragraph id="H825E73DFE6924604A5E71486AA5D00F6"><enum>(1)</enum><text display-inline="yes-display-inline">provide small business concerns owned and
controlled by service-disabled veterans with information and assistance
concerning participation in Federal contracting;</text>
</paragraph><paragraph id="H14DB35C97BF243F1002B087E4FFA6372"><enum>(2)</enum><text>advise and assist
other agencies in their strategies to expand procurement opportunities for such
concerns; and</text>
</paragraph><paragraph id="H0CDC8FB2E2184C33B977B47B8715692E"><enum>(3)</enum><text>make training
assistance on Federal contract law, procedures, and practices available to such
concerns.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9FCDA1EEEE7B4ABBB53DCFAAADE14108"><enum>104.</enum><header>Priority for
severely disabled veterans</header><text display-inline="no-display-inline">In
developing regulations to implement section 101, the Administrator shall give a
priority to those certified service-disabled veterans that are severely
disabled.</text>
</section><enum>II</enum><header>Protecting
taxpayers and ensuring program consistency</header>
<section id="HD6CDECD831FF465DBC1DA523B570C6D"><enum>201.</enum><header>Requiring
business integrity of small business concerns</header><text display-inline="no-display-inline">Section 8 of the Small Business Act (15
U.S.C. 637) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE1C9891F7538463100DA605E46BC540" style="OLC">
<subsection id="H8F532666BC004A77A4C560304EC1C4BB"><enum>(o)</enum><header>Requirement of
business integrity</header><text display-inline="yes-display-inline">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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9F5C9283A1E44E9491FD700684C4A794"><enum>202.</enum><header>Establishment
of goals</header>
<subsection id="HFD843ACC80F94FE695E400712E3CC844"><enum>(a)</enum><header>Establishment of
Government-wide goals</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 the first sentence and inserting <quote>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.</quote>.</text>
</subsection><subsection id="H4F53099113CF462EA46E00E4D6A0E9D2"><enum>(b)</enum><header>Technical
corrections</header><text>Section 15 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644</external-xref>) is
amended—</text>
<paragraph id="HDAEF6F5031364488A3B02735CF756226"><enum>(1)</enum><text>in subsection (g)
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC58FF780D1BE4039BF04116289A72167" style="OLC">
<paragraph id="H0F5CA27ABC6E4A5E9FB978235FF95D86" indent="up1"><enum>(3)</enum><text>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).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE2E9692F018E4943B48D177D7EF0F85E"><enum>(2)</enum><text>in subsection (h)
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0997A1DC553242C9B170AEBCBB4714A6" style="OLC">
<paragraph id="H6675FCAE1C6D44779277A5FE18E7009F" indent="up1"><enum>(4)</enum><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HFC318C0C27A5419EAA794439432952F"><enum>203.</enum><header>Small business
concern subcontracting policy</header><text display-inline="no-display-inline">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 <quote>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.</quote>.</text>
</section><section id="H8864B8AA6183464E8F34857F2FE94F85"><enum>204.</enum><header>Increased size
of available contracts</header>
<subsection id="HBC72CA1949F2453CAC7440DC2DBA6D6"><enum>(a)</enum><header>Section
8<enum-in-header>(a)</enum-in-header> program</header><text display-inline="yes-display-inline">Section 8(a)(1)(D)(i)(II) of the Small
Business Act (15
U.S.C. 637(a)(1)(D)(i)(II)) is amended—</text>
<paragraph id="H2CBD181E29944CD882E0AF42C1C24EAC"><enum>(1)</enum><text>by striking
<quote>$5,000,000</quote> and inserting <quote>$5,500,000</quote>; and</text>
</paragraph><paragraph id="H7A63BAD70FF342D7B53313A9A563846F"><enum>(2)</enum><text>by striking
<quote>$3,000,000</quote> and inserting <quote>$5,100,000</quote>.</text>
</paragraph></subsection><subsection id="H87FC61358EAA441B892115494196477E"><enum>(b)</enum><header>HUBZone
program</header><text>Section 31(b)(2)(A)(ii) of such Act (15 U.S.C.
657a(b)(2)(A)(ii)) is amended—</text>
<paragraph id="HB7F2AC46D9BE4AA6BC30EAEC83D67B46"><enum>(1)</enum><text>by striking
<quote>$5,000,000</quote> and inserting <quote>$5,500,000</quote>; and</text>
</paragraph><paragraph id="H840163BDDB1D49B1B1847209267FA632"><enum>(2)</enum><text>by striking
<quote>$3,000,000</quote> and inserting <quote>$5,100,000</quote>.</text>
</paragraph></subsection><subsection id="H55F6767BED0F42D8A87FB556B7E01DAD"><enum>(c)</enum><header>Service-disabled
veteran program</header><text>Section 36(a)(2) of such Act (15 U.S.C.
657f(a)(2)) is amended—</text>
<paragraph id="HE201D78575894F278D19AF139D3C7FD"><enum>(1)</enum><text>by
striking <quote>$5,000,000</quote> and inserting <quote>$5,500,000</quote>;
and</text>
</paragraph><paragraph id="H3F006417EAF94A9396B487AAFF05775B"><enum>(2)</enum><text>by striking
<quote>$3,000,000</quote> and inserting <quote>$5,100,000</quote>.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H14BF36C4419F4EEDA7FA59AA53BFC149" section-type="subsequent-section"><enum>205.</enum><header>Expanding protest
authorization</header><text display-inline="no-display-inline">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>) is amended by
adding at the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H94DE6A06A6DC4E0DB3FCA5ECA67C475" style="OLC">
<paragraph id="HB5FCCF03BCEA4E0295D19C6B3F9552B5"><enum>(22)</enum><text display-inline="yes-display-inline">Rules similar to the rules of paragraphs
(5) and (6) of subsection (m) shall apply for purposes of this
subsection.</text>
</paragraph><paragraph id="H85F9F778EB004C7A8EC9E15640A5AE74"><enum>(23)</enum><text display-inline="yes-display-inline">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 <quote>interested
party</quote> shall include any small business
concern.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H09BB466B2918401985DD068CF5494EFA"><enum>206.</enum><header>Prohibition on
contract awards to contractors in violation of immigration laws</header><text display-inline="no-display-inline">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.</text>
</section><enum>III</enum><header>Expanding
opportunities for women entrepreneurs</header>
<section id="HFC04E555143F48EDB1F608BFCE00B7E0"><enum>301.</enum><header>Implement the
women’s procurement program</header><text display-inline="no-display-inline">Subsection (m) of section 8 of the Small
Business Act (15
U.S.C. 637(m)) is amended—</text>
<paragraph id="H4453A3EF61034EF4BD6800300544CF6E"><enum>(1)</enum><text>by striking
paragraphs (1) through (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA5BEDBE604704A56B975125134263C6F" style="OLC">
<paragraph id="HA6AED1A1EFB7472BAA55544192FE8CD"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <term>small business concern owned and controlled by
women</term> has the meaning given such term in section 3(n), except that
ownership shall be determined without regard to any community property
law.</text>
</paragraph><paragraph id="H7D50B8AC5A364FF8B1EE2200DF49907B"><enum>(2)</enum><header>Authority to
restrict competition</header>
<subparagraph id="HCA60B78440BB4DF5B872FB96F1CDE055"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H31B346D96E3A4EC486F519ADF05729F3"><enum>(i)</enum><text>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);</text>
</clause><clause id="H732D9C8D66C244D88EB2CAC5F79E31E"><enum>(ii)</enum><text>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;</text>
</clause><clause id="H08D05EB712F84018AD4CB0B0E839C17B"><enum>(iii)</enum><text>the contract is
for the procurement of goods or services with respect to an industry identified
pursuant to paragraph (4);</text>
</clause><clause id="H6E5F6A59749E4A8886A3FF63ACA1DA1"><enum>(iv)</enum><text>in
the estimation of the contracting officer, the contract award can be made at a
fair and reasonable price; and</text>
</clause><clause id="H2233AD8C2C06400CB341D097BEBF4145"><enum>(v)</enum><text>each concern is
certified in a manner described in subparagraph (B).</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H8392B16B0A3C4802BD71EDF45500D0D7"><enum>(B)</enum><header>Acceptance of
certification</header><text display-inline="yes-display-inline">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—</text>
<clause id="HE9E545EFEE2F49DD8426976F8937EABA"><enum>(i)</enum><text display-inline="yes-display-inline">a Federal agency or a State or local
government;</text>
</clause><clause id="HA0CB56852E644147946EAC4285B58692"><enum>(ii)</enum><text>a
national certifying entity approved by the Administrator; or</text>
</clause><clause id="HC54850019E9E444CAC15DD46888347D8"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="HE0643D3807E04258B3AF8EC2542DC57"><enum>(3)</enum><header>Waiver</header><text>With
respect to a small business concern owned and controlled by women, the
Administrator may waive paragraph (2)(A)(i) if—</text>
<subparagraph id="H6AEA64AE5AD240858E400364E73373B"><enum>(A)</enum><text>such concern is in
an industry identified pursuant to paragraph (4); and</text>
</subparagraph><subparagraph id="H23E979B903B942FE994DF6B978EC47A"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H552CA12BA7FA4BD9987F7B4CFE110016"><enum>(4)</enum><header>Identification
of industries</header>
<subparagraph id="H1091A68C63D44814A0A7988060E6E4E6"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<clause id="H0E059EFCCAFF468A91BC195FB385867B"><enum>(i)</enum><text display-inline="yes-display-inline">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.</text>
</clause><clause id="HEE5D5A59B1FE4C15BEB4005EF41BFECE"><enum>(ii)</enum><text display-inline="yes-display-inline">The study shall measure utilization and
availability by—</text>
<subclause id="H2EBBAADD6B4B4B3697B1C4C03637F5BD"><enum>(I)</enum><text>using the two best
available data sources;</text>
</subclause><subclause id="H0158AF1A8B5341F3BCEF3179DF506B63"><enum>(II)</enum><text>including only
business concerns that have at least one employee; and</text>
</subclause><subclause id="H31E1C0303F8D47BD9D26EBB91C724D31"><enum>(III)</enum><text>measuring only
Federal contracts awarded for amounts over $25,000.</text>
</subclause></clause><clause id="HA1AF68874E414A00943E90CF28F1ABC8"><enum>(iii)</enum><text>The study shall
include four sets of disparity measurement tables to compute disparity ratios.
The four sets are—</text>
<subclause id="HC97D22412FD143B795157CDE9DFBA55"><enum>(I)</enum><text display-inline="yes-display-inline">all business concerns in the United States
relative to the number of Federal contracts awarded to small business concerns
owned and controlled by women;</text>
</subclause><subclause id="HFE7D04463B314B61809DFB2FA5DEF582"><enum>(II)</enum><text display-inline="yes-display-inline">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;</text>
</subclause><subclause id="H86C30F6378CC41E19EFD75A1D2BB3956"><enum>(III)</enum><text display-inline="yes-display-inline">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</text>
</subclause><subclause id="H881D5B151A8A46C98F73C796F5BC3C8"><enum>(IV)</enum><text display-inline="yes-display-inline">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.</text>
</subclause></clause></subparagraph><subparagraph display-inline="no-display-inline" id="HAB1E3B9D07084AE886586EA7E3BBCF51"><enum>(B)</enum><header>Underrepresented
industries</header><text display-inline="yes-display-inline">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).</text>
</subparagraph><subparagraph id="HF0172024F81242AA823BFB44A8037D03"><enum>(C)</enum><header>Deadline</header><text>Not
later than 90 days after the date of the enactment of this subparagraph, the
Administrator shall—</text>
<clause id="H0C06807ECBB643B4A7E84BB64B0096BC"><enum>(i)</enum><text>ensure the
completion of the first study required by subparagraph (A);</text>
</clause><clause id="HF05D701A68244A8AAF061E7FC002722C"><enum>(ii)</enum><text>approve national
certifying entities for the purposes of paragraph (2)(B)(ii);</text>
</clause><clause id="H5C5594DA3911483E972827C83FD259EE"><enum>(iii)</enum><text>establish
procedures required by paragraph (5)(A); and</text>
</clause><clause id="H10DA34C6332B489EBE397B29EB02593C"><enum>(iv)</enum><text>establish
standards described in paragraph
(2)(B)(iii).</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8FCEFE425F764133952CB0F800E99617"><enum>(2)</enum><text>in paragraph (5),
by striking <quote>(2)(F)</quote> in each place it appears and inserting
<quote>(2)(B)</quote>; and</text>
</paragraph><paragraph id="HD655A1BFADAA438D82541F44AA042968"><enum>(3)</enum><text>in paragraph (5),
by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H940D6FB59E2848F09EA4D7506C5CE29" style="OLC">
<subparagraph id="HEC8FE2080F9846F5B4A7AD66FE007B53"><enum>(D)</enum><header>Protests by
small business concerns</header><text display-inline="yes-display-inline">For
purposes of this paragraph, the term <term>interested party</term> shall
include any small business
concern.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>IV</enum><header>Strengthening
Community Development</header>
<section id="HA88827610ABB40CF89F89BEB638CDCD8"><enum>401.</enum><header>On-site
verification</header><text display-inline="no-display-inline">Section 31(b) of
the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(b)</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1116117DA8EC4FD9A2F4AE6E9D00DB" style="OLC">
<paragraph id="H2492829384BE4BB0B344002919B000E9"><enum>(5)</enum><header>On-site
verification of status</header>
<subparagraph id="H187828BD01974CBA873E6C00C3DC8190"><enum>(A)</enum><header>Verification</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H39ADBDA222F44F74B6D2ADAA419D027D"><enum>(B)</enum><header>Notification by
small business concern</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA9F13CB906004FDAA2E5F449A9A3CCA8"><enum>402.</enum><header>Limitation on
construction contracts</header><text display-inline="no-display-inline">Section
31(b) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657a">15 U.S.C. 657a(b)</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5259D8FF0C1841B5B266CCB501C720A1" style="OLC">
<paragraph id="H5E0E5505FD4E4EF0B4603E92005FD3D8"><enum>(6)</enum><header>Limit HUBZone
program construction contracts in or near a HUBZone</header><text>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 <term>near</term> 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 <term>near</term> that
HUBZone.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB80EBDA31AC74139A1DEDE14E071DC36"><enum>403.</enum><header>Study on
effectiveness of HUBZone program in reaching rural areas</header><text display-inline="no-display-inline">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.</text>
</section><enum>V</enum><header>Modernizing the
8<enum-in-header>(a) </enum-in-header>program</header>
<section display-inline="no-display-inline" id="HFB1654DB02E1457DAC6DC66245E979F" section-type="subsequent-section"><enum>501.</enum><header>Modernizing the
section 8<enum-in-header>(a)</enum-in-header> program net worth
limitations</header>
<subsection id="HD1721DC468634A5EB896607677440080"><enum>(a)</enum><header>Modifications to
8<enum-in-header>(a)</enum-in-header> program</header><text display-inline="yes-display-inline">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:</text>
<paragraph display-inline="no-display-inline" id="H951EFA9F0FF4407F80F4D760724941F"><enum>(1)</enum><header>Determination for
term of program</header><text>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.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HDB5D5EAA67EF4007A1862D2C983E0004"><enum>(2)</enum><header>Matters
excluded</header><text>In determining personal net worth, the Administrator
shall exclude from such determination the following:</text>
<subparagraph id="H2A2FDD01026446F9A3A41F5C79A056EB"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="HF5C7827D15544C329300C1A39796EE06"><enum>(B)</enum><text>The equity of an
economically disadvantaged owner in a primary personal residence.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8DD95D7A1A354087AD6871BC0E94675"><enum>(3)</enum><header>Maximum net
worth</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H3D8DA5FBA50E4C5AB9DCABC5990340EE"><enum>(b)</enum><header>Effective date
for modifications to the 8<enum-in-header>(a)</enum-in-header>
program</header><text display-inline="yes-display-inline">This section shall
apply with respect to small business concerns that apply to the program under
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>) after the date of
the enactment of this Act.</text>
</subsection></section><section id="HDE1AD9247F47402700A59BEE842B87E3"><enum>502.</enum><header>Extension of
the section 8<enum-in-header>(a)</enum-in-header> program term</header>
<subsection id="H66E07549328E47DFAC8C78C0E8CD5E80"><enum>(a)</enum><header>Program
term</header><text>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.</text>
</subsection><subsection display-inline="no-display-inline" id="HC3BAA5E87CF6430AB79F007F16A80036"><enum>(b)</enum><header>Effective date
for modifications to the 8<enum-in-header>(a)</enum-in-header> program</header>
<paragraph id="HA330ED271D0B4192A2658897A4F06919"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HE1C9C2FF64B44869BBF079743C34DF1"><enum>(2)</enum><header>Transitional
rule</header><text>A small business concern participating in the program under
section 8(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)</external-xref>) may participate
for not more than 10 years.</text>
</paragraph></subsection></section><section id="H053EE96842834BEF8931D43E622F868"><enum>503.</enum><header>Report on
implementation</header><text display-inline="no-display-inline">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: <quote>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.</quote>.</text>
</section><section id="H0F743167B8DD484789457CC7003CA1C4"><enum>504.</enum><header>Assistance
study</header>
<subsection id="HD05A965E8B00410E84215FABE51136B7"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H03F2D4B8E54E4867B62202EA456926F4"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section display-inline="no-display-inline" id="H50693B6C026C4757BEE7CADC84E40057" section-type="subsequent-section"><enum>505.</enum><header>Examination of list
of groups the members of which are presumed to be socially disadvantaged for
purposes of small disadvantaged business program</header><text display-inline="no-display-inline">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.</text>
</section><enum>VI</enum><header>Other
matters</header>
<section id="HE4BF97764E8A4AA98224747F65252C4B"><enum>601.</enum><header>Affiliation for
certain franchises</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 new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H1ECE5FDFE6724C7CAEA3050076B3DDAB" style="OLC">
<paragraph id="HE0398F2AF78E4E6C9CD32FDC122C2C70"><enum>(5)</enum><header>Special rule
relating to franchises in the temporary employee services
industry</header><text display-inline="yes-display-inline">In determining
whether a franchisee is affiliated with a franchisor in the temporary employee
services industry, the Administrator shall—</text>
<subparagraph id="HF5555C4182BC4338AAFD4E3B36004DD2"><enum>(A)</enum><text>disregard—</text>
<clause id="HC95FBA8AB39B4A649CB34B47A045082D"><enum>(i)</enum><text display-inline="yes-display-inline">whether the franchisor finances the payroll
of the temporary staffing personnel (including billing, collecting, and
remitting client fees); and</text>
</clause><clause id="HAE4F216643AF48F68514802BBFF9198"><enum>(ii)</enum><text>whether the
temporary staffing personnel are treated as employees or independent
contractors of the franchisor for tax or other purposes; and</text>
</clause></subparagraph><subparagraph id="HF11D3FF7BF4549F5BCFCEBDBDE3211D"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H4C302096EA9A420A88FEF3943032EE89"><enum>602.</enum><header>Sense of the
House of Representatives on acquisitions conducted under the General Services
Administration’s Federal Supply Schedule</header>
<subsection id="H33BFED5A01EE42718008FAA8A897D150"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph id="H3A6DD10E43734FA190A51D7815C85FD"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H5C14D97E47CD48949D9B223F64CAAD40"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H9A033984D78745F3B18794EB80002CFD"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="H822633B0541F4485AB6EFD37ABD73D9"><enum>(b)</enum><header>Sense of the
House</header><text>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.</text>
</subsection></section><section display-inline="no-display-inline" id="H120B368E4975446691C72618AE72FDBC" section-type="subsequent-section"><enum>603.</enum><header>Study on frivolous
protests</header>
<subsection id="H27F30AC5969344FFAB6E75FD502FB3E1"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HDAC93D3A00154CF7AC97A01DF1459C8F"><enum>(b)</enum><header>Contents</header><text>In
conducting the study, the Administrator shall—</text>
<paragraph id="H28171CE72A3448C29CC631A40900C924"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H33AF1CBE0E744DF3AAEF4032501629D7"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="H6445EF9408A14EEEA181B82B03B95BD9"><enum>(3)</enum><text>identify the
incumbent Federal contractors that file the most unsuccessful protests on small
business contracts; and</text>
</paragraph><paragraph id="H009B79B4EC554A90A6C997F00649E86"><enum>(4)</enum><text>develop
recommendations—</text>
<subparagraph id="H0442E421F4AD49E4AC8599532C06C8C5"><enum>(A)</enum><text>to ease any
financial burden on small businesses during the protest of small business
contracts; and</text>
</subparagraph><subparagraph id="H2BF26D398A9E4A21A7852090A6F2C57F"><enum>(B)</enum><text>to discourage
frivolous protests by incumbent Federal contractors on small business
contracts.</text>
</subparagraph></paragraph></subsection><subsection id="HE7E991D327AF45C4BDD67DF1D4EA079"><enum>(c)</enum><header>Consultation</header><text>In
conducting the study, the Administrator shall consult with the Government
Accountability Office, any necessary Federal agencies, and the Office of
Federal Procurement Policy.</text>
</subsection><subsection id="H4AD28522959A45EF8FE88E29726C8C10"><enum>(d)</enum><header>Report</header><text>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).</text>
</subsection></section><section display-inline="no-display-inline" id="H0E46620F706B4791ADD5C3FA23929D4" section-type="subsequent-section"><enum>604.</enum><header>Small Business
Administration Liaison</header>
<subsection id="H56018A25E79A43EFA86C0315222F9EC5"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HAC5E5A129C8C4FB0848112A5E6D2CD4"><enum>(b)</enum><header>Functions</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section display-inline="no-display-inline" id="H09DF38E4DC4244E89D2021D5955D64F1" section-type="subsequent-section"><enum>605.</enum><header>Prohibition on
business-class or first-class airline travel</header><text display-inline="no-display-inline">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.</text>
</section>
Passed the House of
Representatives October 30, 2007.
Lorraine C. Miller,
Clerk