[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2300 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2300

       To improve the Small Business Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 1, 2007

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

_______________________________________________________________________

                                 A BILL


 
       To improve the Small Business Act, 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 Revitalization Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                       TITLE I--CONTRACT BUNDLING

Sec. 101. Leadership and oversight.
Sec. 102. Removal of impediments to contract bundling database 
                            implementation.
Sec. 103. Contract consolidation.
Sec. 104. Small business teams.
                   TITLE II--SUBCONTRACTING INTEGRITY

Sec. 201. GAO recommendations on subcontracting misrepresentations.
Sec. 202. Small business subcontracting improvements.
Sec. 203. Evaluating subcontracting participation.
Sec. 204. Pilot program.
       TITLE III--SMALL BUSINESS PROCUREMENT PROGRAMS IMPROVEMENT

   Subtitle A--Service-Disabled Veteran-Owned Small Business Program

Sec. 321. Certification.
Sec. 322. Transition period for surviving spouses or permanent care 
                            givers.
Sec. 323. Mentor-protege program.
Sec. 324. Improving opportunities for service disabled veterans.
             Subtitle B--Women-Owned Small Business Program

Sec. 341. Implementation deadline.
Sec. 342. Certification.
            Subtitle C--Small Disadvantaged Business Program

Sec. 361. Certification.
Sec. 362. Net worth threshold.
Sec. 363. Extension of socially and economically disadvantaged business 
                            program.
     Subtitle D--Historically Underutilized Business Zones Programs

Sec. 381. HUBZone small business concerns.
Sec. 382. Military base closings.
                    Subtitle E--BusinessLINC Program

Sec. 391. BusinessLINC Program.
                     TITLE IV--ACQUISITION PROCESS

Sec. 401. Procurement improvements.
Sec. 402. Reservation of prime contract awards for small businesses.
Sec. 403. GAO study of reporting systems.
Sec. 404. Micropurchase guidelines.
Sec. 405. Reporting on overseas contracts.
Sec. 406. Agency accountability.
           TITLE V--SMALL BUSINESS SIZE AND STATUS INTEGRITY

Sec. 501. Policy and presumptions.
Sec. 502. Annual certification.
Sec. 503. Meaningful protests of small business size and status.
Sec. 504. Training for contracting and enforcement personnel.
Sec. 505. Updated size standards.
Sec. 506. Small business size and status for purpose of multiple award 
                            contracts.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the terms ``service-disabled veteran'', ``small 
        business concern'', and ``small business concern owned and 
        controlled by service-disabled veterans'' have the same 
        meanings as in section 3 of the Small Business Act (15 U.S.C. 
        632); and
            (3) the terms ``small business concern owned and controlled 
        by socially and economically disadvantaged individuals'' and 
        ``small business concern owned and controlled by women'' have 
        the same meanings as in section 8(d) of the Small Business Act 
        (15 U.S.C. 637(d)).

                       TITLE I--CONTRACT BUNDLING

SEC. 101. LEADERSHIP AND OVERSIGHT.

    (a) In General.--Section 15 of the Small Business Act (15 U.S.C. 
644) is amended by adding at the end the following:
    ``(q) Bundling Accountability Measures.--
            ``(1) Governmentwide accountability on bundling.--
                    ``(A) Reinstatement of reporting requirements.--In 
                addition to submitting such annual reports on all 
                incidents of bundling to the Administrator as may be 
                required under Federal law, the head of each Federal 
                agency shall submit an annual report on all incidents 
                of bundling to the Administrator for Federal 
                Procurement Policy.
                    ``(B) Report to congress.--The Administrator shall 
                promptly review and annually report to Congress 
                information on any discrepancies between the reports on 
                bundled contracts from Federal agencies to the 
                Administration, the Office of Federal Procurement 
                Policy, and the Federal procurement data system 
                described in subsection (c)(5).
            ``(2) Teaming requirements.--Each Federal agency shall 
        include in each solicitation for any contract award above the 
        substantial bundling threshold of such agency a provision 
        soliciting small business teams and joint ventures.
            ``(3) Implementation of comptroller general's 
        recommendations.--Not later than 270 days after the date of 
        enactment of this subsection, the Administrator, with the 
        concurrence of the Administrator for Federal Procurement 
        Policy, shall ensure that, in response to the recommendations 
        of the Comptroller General of the United States contained in 
        Report No. GAO-04-454, titled `Contract Management: Impact of 
        Strategy to Mitigate Effects of Contract Bundling Is 
        Uncertain'--
                    ``(A) modifications are made to the Federal 
                procurement data system described in subsection (c)(5) 
                to capture information concerning the impact of 
                bundling on small business concerns;
                    ``(B) the Administrator receives from each Federal 
                agency an annual report containing information 
                concerning--
                            ``(i) the number and dollar value of 
                        bundled contract actions and contracts;
                            ``(ii) benefit analyses (including the 
                        total dollars saved) to justify why contracts 
                        are bundled;
                            ``(iii) the number of small business 
                        concerns losing Federal contracts because of 
                        bundling;
                            ``(iv) how contractors awarded bundled 
                        contracts complied with the agencies 
                        subcontracting plans; and
                            ``(v) how mitigating actions, such as 
                        teaming arrangements, provided increased 
                        contracting opportunities to small business 
                        concerns.
            ``(4) Governmentwide review of bundling interpretations.--
                    ``(A) In general.--The Administrator, with the 
                concurrence of the Chief Counsel for Advocacy and the 
                Inspector General, shall conduct a governmentwide 
                review of the Federal agencies legal interpretations of 
                antibundling statutory and regulatory requirements.
                    ``(B) Report.--Not later than 1 year after the date 
                of enactment of this subsection, the Administrator 
                shall submit to Congress a report containing the 
                findings of the review conducted under subparagraph 
                (A).
            ``(5) Agency policies on reduction of contract bundling.--
        Not later than 180 days after the date of enactment of this 
        subsection, the head of each Federal agency shall, with 
        concurrence of the Administrator, issue a policy on the 
        reduction of contract bundling.
            ``(6) Best practices on contract bundling reduction and 
        mitigation.--Not later than 60 days after the date of the 
        enactment of this subsection, the Administrator shall publish a 
        guide on best practices to reduce contract bundling, as 
        directed by the Strategy and Report on Contract Bundling issued 
        by the Office of Management and Budget on October 29, 2002.
            ``(7) Contract bundling mitigation through 
        subcontracting.--
                    ``(A) In general.--The Administrator shall ensure 
                that each State is assigned a commercial market 
                representative to provide services for that State.
                    ``(B) Assignment.--A commercial market 
                representative may not be assigned by the Administrator 
                to provide services for more than 2 States.
            ``(8) Contract bundling oversight.--
                    ``(A) Policy.--It is the policy of Congress that 
                the Administrator shall take appropriate actions to 
                remedy contract bundling oversight problems identified 
                by the Inspector General of the Administration in 
                Report No. 5-14, titled `Audit of the Contract Bundling 
                Program'.
                    ``(B) Corrective action.--
                            ``(i) Assignment of procurement center 
                        representatives.--
                                    ``(I) In general.--The 
                                Administrator shall assign not fewer 
                                than 1 procurement center 
                                representative to each major 
                                procurement center, as designated by 
                                the Administrator under section 
                                8(l)(6).
                                    ``(II) Reporting.--The 
                                Administrator shall annually submit to 
                                Congress a report--
                                            ``(aa) containing a list of 
                                        designations of major 
                                        procurement centers in effect 
                                        during the relevant fiscal 
                                        year;
                                            ``(bb) detailing the 
                                        criteria for designations; and
                                            ``(cc) including a trend 
                                        analysis concerning the impact 
                                        of reviews and placements of 
                                        procurement center 
                                        representatives and breakout 
                                        procurement center 
                                        representatives.
                            ``(ii) Timely review of bundled 
                        contracts.--Not later than 30 days after 
                        receiving a submission from a Federal agency, 
                        the Administrator shall review any potential 
                        bundled contract submitted to the Administrator 
                        for review by any Federal agency.''.
    (b) Technical Correction.--Section 15(g) of the Small Business Act 
(15 U.S.C. 644(g)) is amended by striking ``Administrator of the Office 
of Federal Procurement Policy'' each place such term appears and 
inserting ``Administrator for Federal Procurement Policy''.
    (c) Procurement Center Representatives.--Section 15(l) of the Small 
Business Act (15 U.S.C. 644(l)) is amended--
            (1) by striking paragraph (1) and inserting the following:
    ``(1)(A) A procurement center representative shall carry out the 
activities described in paragraph (2), and shall be an advocate for the 
maximum practicable utilization of small business concerns, whenever 
appropriate.
    ``(B) A procurement center representative is authorized to assist 
contracting officers in the performance of market research in order to 
locate small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged individuals, 
small business concerns owned and controlled by women, small business 
concerns owned and controlled by service-disabled veterans, small 
business concerns owned and controlled by veterans, and HUBZone small 
business concerns capable of satisfying agency needs.
    ``(C) Any procurement center representative assigned under this 
paragraph shall be in addition to the representative referred to in 
subsection (k).'';
            (2) in paragraph (2)--
                    (A) by striking ``breakout'' each place that term 
                appears;
                    (B) in subparagraph (F), by striking ``and'' at the 
                end;
                    (C) in subparagraph (G), by striking the period at 
                the end and inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(H)(i) identify and review solicitations that involve 
        contract consolidations for potential bundling of contract 
        requirements; and
            ``(ii) recommend small business concern participation as 
        contractors, including small business concern teams, whenever 
        appropriate, prior to the issuance of a solicitation described 
        in clause (i);
            ``(I) manage the activities of the breakout procurement 
        center representative, commercial marketing representative, and 
        technical assistant; and
            ``(J) submit an annual report to the Administrator 
        containing--
                    ``(i) the number of proposed solicitations 
                reviewed;
                    ``(ii) the contract recommendations made on behalf 
                of small business concerns;
                    ``(iii) the number and total amount of contracts 
                broken out from bundled or consolidated contracts for 
                full and open competition or small business concern 
                set-aside; and
                    ``(iv) the number and total amount of contract 
                dollars awarded to small business concerns as a result 
                of actions taken by the procurement center office.'';
            (3) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
            (4) by striking paragraph (3) and inserting the following:
    ``(3)(A) The Administrator may assign a breakout procurement center 
representative, which shall be in addition to any representative 
assigned under paragraph (1).
    ``(B) A breakout procurement center representative--
            ``(i) shall be an advocate for the breakout of items for 
        procurement through full and open competition or small business 
        concern set-aside, whenever appropriate, from new, existing, 
        bundled, or consolidated contracts; and
            ``(ii) is authorized--
                    ``(I) to recommend small business concern 
                participation in existing contracts that were 
                previously not reviewed for small business concern 
                participation;
                    ``(II) to perform the duties described in paragraph 
                (2), as necessary to perform the due diligence required 
                for a breakout recommendation; and
                    ``(III) to appeal the failure to act favorably on 
                any recommendation made under subclause (I).
            ``(C) Any appeal under subparagraph (B)(ii)(III) shall be 
        filed and processed in the same manner and subject to the same 
        conditions and limitations as an appeal filed by the 
        Administrator under subsection (a).
    ``(4)(A) The Administrator may assign a commercial marketing 
representative to identify and market small business concerns to large 
prime contractors and assist small business concerns in identifying and 
obtaining subcontracts.
    ``(B) A commercial marketing representative assigned under this 
paragraph shall--
            ``(i) conduct compliance reviews of prime contractors;
            ``(ii) counsel small business concerns on how to obtain 
        subcontracts;
            ``(iii) conduct matchmaking activities to facilitate 
        subcontracting to small business concerns;
            ``(iv) work in coordination with local small business 
        development centers, technical assistance centers, and other 
        regional economic development entities to identify small 
        business concerns capable of competing for Federal contracts; 
        and
            ``(v) provide orientation and training on the 
        subcontracting assistance program under section 8(d)(4)(E) for 
        both large and small business concerns.
    ``(C) Any commercial marketing representative assigned under this 
paragraph shall be in addition to any procurement center representative 
assigned under paragraph (1) or (3).'';
            (5) in paragraph (5), as so designated by this section--
                    (A) in the second sentence, by inserting ``the 
                procurement center representative and'' before ``the 
                breakout procurement''; and
                    (B) in the third sentence, by striking ``(6)'';
            (6) in paragraph (6), as so designated by this section--
                    (A) in subparagraph (A), by striking ``The breakout 
                procurement center representative'' and inserting the 
                following: ``The procurement center representative, 
                breakout procurement center representative, commercial 
                marketing representative,'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (7) in paragraph (7), as so designated by this section, by 
        striking ``other than commercial items'' and all that follows 
        through the end of the paragraph and inserting the following: 
        ``commercial items for authorized resale, or other than 
        commercial items, and which has the potential to incur 
        significant savings or create significant procurement 
        opportunities for small business concerns as the result of the 
        placement of a breakout procurement center representative.''; 
        and
            (8) in paragraph (8), as so designated by this section--
                    (A) by striking ``breakout'' each place the term 
                appears; and
                    (B) by adding at the end the following:
    ``(C) The procurement center representative shall conduct training 
sessions to inform procurement staff at Federal agencies about the 
reporting requirements for bundled contracts and potentially bundled 
contracts, and how to work effectively with the procurement center 
representative assigned to such agencies to locate capable small 
business concerns to meet the needs of the agencies.''.

SEC. 102. REMOVAL OF IMPEDIMENTS TO CONTRACT BUNDLING DATABASE 
              IMPLEMENTATION.

    Section 15(p)(5)(B) of the Small Business Act (15 U.S.C. 
644(p)(5)(B) is amended by striking ``procurement information'' and all 
that follows through the end of the subparagraph and inserting the 
following: ``any relevant procurement information as may be required to 
implement this section, and shall perform, at the request of the 
Administrator, any other action necessary to enable completion of the 
contract bundling database authorized by this section by not later than 
270 days after the date of enactment of the Small Business Contracting 
Revitalization Act of 2007.''.

SEC. 103. CONTRACT CONSOLIDATION.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 37 as section 39; and
            (2) by inserting after section 36 the following:

``SEC. 37. CONTRACT CONSOLIDATION.

    ``(a) Policy.--Except for the Department of Defense and any agency 
of that department, the head of each Federal department or agency shall 
ensure that the decisions made by that department or agency regarding 
consolidation of contract requirements of that department or agency are 
made with a view to providing small business concerns with appropriate 
opportunities to participate in the procurements of that department or 
agency as prime contractors and appropriate opportunities to 
participate in such procurements as subcontractors.
    ``(b) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--
            ``(1) In general.--Except for the Department of Defense and 
        any agency of that department, the head of a Federal department 
        or agency may not execute an acquisition strategy that includes 
        a consolidation of contract requirements of that department or 
        agency with a total value in excess of $2,000,000, unless the 
        senior procurement executive concerned first--
                    ``(A) conducts market research;
                    ``(B) identifies any alternative contracting 
                approaches that would involve a lesser degree of 
                consolidation of contract requirements; and
                    ``(C) determines that the consolidation is 
                necessary and justified.
            ``(2) Determination that consolidation is necessary and 
        justified.--A senior procurement executive may determine that 
        an acquisition strategy involving a consolidation of contract 
        requirements is necessary and justified for the purposes of 
        paragraph (1) if the benefits of the acquisition strategy 
        substantially exceed the benefits of each of the possible 
        alternative contracting approaches identified under 
        subparagraph (B) of that paragraph. However, savings in 
        administrative or personnel costs alone do not constitute, for 
        such purposes, a sufficient justification for a consolidation 
        of contract requirements in a procurement unless the total 
        amount of the cost savings is expected to be substantial in 
        relation to the total cost of the procurement.
            ``(3) Benefits to be considered.--Benefits considered for 
        the purposes of paragraphs (1) and (2) may include cost and, 
        regardless of whether quantifiable in dollar amounts--
                    ``(A) quality;
                    ``(B) acquisition cycle;
                    ``(C) terms and conditions; and
                    ``(D) any other benefit.
    ``(c) Definitions.--In this section--
            ``(1) the terms `consolidation of contract requirements' 
        and `consolidation', with respect to contract requirements of a 
        Federal department or agency, mean a use of a solicitation to 
        obtain offers for a single contract or a multiple award 
        contract to satisfy 2 or more requirements of that department 
        or agency for goods or services that have previously been 
        provided to, or performed for, that department or agency under 
        2 or more separate contracts smaller in cost than the total 
        cost of the contract for which the offers are solicited;
            ``(2) the term `multiple award contract' means--
                    ``(A) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 303H through 303K of the Federal 
                Property and Administrative Services Act of 1949 (41 
                U.S.C. 253h through 253k); and
                    ``(B) any other indeterminate delivery, 
                indeterminate quantity contract that is entered into by 
                the head of a Federal department or agency with 2 or 
                more sources pursuant to the same solicitation; and
            ``(3) the term `senior procurement executive concerned' 
        means, with respect to a Federal department or agency, the 
        official designated under section 16(c) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 414(c)) as the senior 
        procurement executive for that department or agency.''.

SEC. 104. SMALL BUSINESS TEAMS.

    If more than 1 business concern that is a small business concern 
based on the size standards established under section 3(a) of the Small 
Business Act (15 U.S.C. 632(a)) is participating in a contract that is 
subject to section 125.6 of title 13, Code of Federal Regulations (or 
any successor thereto), the portion of that contract performed by each 
such small business concern may be aggregated in determining whether 
the performance of that contract is in compliance with that section 
if--
            (1) the head of the Federal department or agency concerned 
        makes a determination in the solicitation that such aggregation 
        will improve contracting opportunities for such small business 
        concerns; and
            (2) the Administrator does not object to such aggregation.

                   TITLE II--SUBCONTRACTING INTEGRITY

SEC. 201. GAO RECOMMENDATIONS ON SUBCONTRACTING MISREPRESENTATIONS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(o) Prevention of Misrepresentations in Subcontracting; 
Implementation of Comptroller General's Recommendations.--
            ``(1) Statement of policy.--It is the policy of Congress 
        that the recommendations of the Comptroller General of the 
        United States in Report No. 05-459, concerning oversight 
        improvements necessary to ensure maximum practicable 
        participation by small business concerns in subcontracting, 
        shall be implemented governmentwide, to the maximum extent 
        possible.
            ``(2) Contractor compliance.--Compliance of Federal prime 
        contractors with small business subcontracting plans shall be 
        evaluated as a percentage of obligated prime contract dollars, 
        as well as a percentage of subcontracts awarded.
            ``(3) Issuance of agency policies.--Not later than 180 days 
        after the date of enactment of this subsection, the head of 
        each Federal agency shall issue a policy on small business 
        subcontracting compliance, including assignment of compliance 
        responsibilities between contracting, small business, and 
        program offices and periodic oversight and review 
        activities.''.

SEC. 202. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

    (a) Certifications Required.--Section 8(d)(6) of the Small Business 
Act (15 U.S.C. 637(d)(6)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end, the following:
                    ``(G) certification that the offeror or bidder will 
                acquire articles, equipment, supplies, services, or 
                materials, or obtain the performance of construction 
                work from small business concerns in the amount and 
                quality used in preparing and submitting to the 
                contracting agency the bid or proposal, unless such 
                small business concerns are no longer in business or 
                can no longer meet the quality, quantity, or delivery 
                date.''.
    (b) Penalties for False Certifications.--Section 16(f) of the Small 
Business Act (15 U.S.C. 645(f)) is amended by striking ``of this Act'' 
and inserting ``or the reporting requirements of section 8(d)(11)''.

SEC. 203. EVALUATING SUBCONTRACTING PARTICIPATION.

    (a) Significant Factors.--Section 8(d)(4)(G) of the Small Business 
Act (15 U.S.C. 637(d)(4)(G)) is amended by striking ``a bundled'' and 
inserting ``any''.
    (b) Evaluation Reports.--Section 8(d)(10) of the Small Business Act 
(15 U.S.C. 637(d)(10)) is amended--
            (1) by striking ``is authorized to'' and inserting 
        ``shall'';
            (2) in subparagraph (B), by striking ``and'' at the end;
            (3) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(D) report the results of each evaluation under 
                subparagraph (C) to the appropriate contracting 
                officers.''.
    (c) Centralized Database; Payments Pending Reports.--Section 8(d) 
of the Small Business Act (15 U.S.C. 637(d)) is amended--
            (1) by redesignating paragraph (11) as paragraph (14); and
            (2) by inserting after paragraph (10) the following:
            ``(11) Certification.--A report submitted by the prime 
        contractor under paragraph (6)(E) to determine the attainment 
        of a subcontract utilization goal under any subcontracting plan 
        entered into with a Federal agency under this subsection shall 
        contain the name and signature of the president or chief 
        executive officer of the contractor, certifying that the 
        subcontracting data provided in the report are accurate and 
        complete.
            ``(12) Centralized database.--The results of an evaluation 
        under paragraph (10)(C) shall be included in a national 
        centralized governmentwide database.
            ``(13) Payments pending reports.--Each Federal agency 
        having contracting authority shall ensure that the terms of 
        each contract for goods and services includes a provision 
        allowing the contracting officer of an agency to withhold an 
        appropriate amount of payment with respect to a contract 
        (depending on the size of the contract) until the date of 
        receipt of complete, accurate, and timely subcontracting 
        reports in accordance with paragraph (11).''.

SEC. 204. PILOT PROGRAM.

    Section 8 of the Small Business Act (15 U.S.C. 637), as amended by 
this Act, is amended by adding at the end the following:
    ``(p) Subcontracting Incentives and Remedial Assistance.--
            ``(1) Pilot program on incentives and mentor-protege 
        remedial assistance.--
                    ``(A) In general.--Each Federal agency is 
                authorized to operate a pilot program to provide 
                contractual incentives to prime contractors that exceed 
                their small business subcontracting goals and to direct 
                prime contractors that fail to comply with their small 
                business subcontracting plans to fund mentor-protege 
                assistance for small business concerns (in this 
                subsection referred to as the `program').
                    ``(B) Termination.--The authority under this 
                paragraph shall terminate on September 30, 2010.
            ``(2) Assessment of mentor-protege assistance funding.--The 
        mentor-protege assistance funding assessed by an agency under 
        the terms of the program shall be determined in relation to the 
        dollar amount by which the prime contractor failed its small 
        business subcontracting goals.
            ``(3) Expenditure of mentor-protege assistance funding.--
        The prime contractor shall expend the mentor-protege assistance 
        funding assessed by the agency under the terms of the program 
        on mentor-protege assistance to small business concerns, as 
        provided by a mentor-protege agreement approved by the relevant 
        Federal agency.
            ``(4) Annual report required.--Each Federal agency 
        described in paragraph (1) shall submit an annual report to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives containing a detailed description of the pilot 
        program, as carried out by that agency, including the number of 
        participating companies, any incentives provided to prime 
        contractors, as appropriate, and the amounts and types of 
        mentor-protege assistance provided to small business 
        concerns.''.

       TITLE III--SMALL BUSINESS PROCUREMENT PROGRAMS IMPROVEMENT

   Subtitle A--Service-Disabled Veteran-Owned Small Business Program

SEC. 321. CERTIFICATION.

    (a) Congressional Intent.--It is the intent of Congress that the 
Administrator should accept certifications by the Department of 
Veterans Affairs, under such criteria as the Administrator may 
prescribe, by regulation or order, in certifying small business 
concerns owned and controlled by service-disabled veterans
    (b) Regulations.--Before implementing subsection (a), the 
Administrator shall promulgate regulations or orders ensuring 
appropriate certification safeguards to be implemented by the 
Administration and the Department of Veterans Affairs.
    (c) Registration Portal.--The Administrator and the Secretary of 
Veterans Affairs shall ensure that small business concerns owned and 
controlled by service-disabled veterans may apply to participate in all 
programs for such small business concerns of the Administrator or the 
Secretary through a single process.

SEC. 322. TRANSITION PERIOD FOR SURVIVING SPOUSES OR PERMANENT CARE 
              GIVERS.

    Section 3(q)(2) of the Small Business Act (15 U.S.C. 632(q)(2)) is 
amended by striking subparagraph (B) and inserting the following:
                    ``(B) the management and daily business operations 
                of which are controlled--
                            ``(i) by 1 or more service-disabled 
                        veterans or, in the case of a veteran with 
                        permanent and severe disability, the spouse or 
                        permanent care giver of such veteran; or
                            ``(ii) for a period of not longer than 10 
                        years after the death of a service-disabled 
                        veteran, by a surviving spouse or permanent 
                        caregiver thereof.''.

SEC. 323. MENTOR-PROTEGE PROGRAM.

    The Administrator may establish a mentor-protege for small business 
concerns owned and controlled by service-disabled veterans, modeled on 
the mentor-protege program of the Administration for small businesses 
participating in programs under section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)).

SEC. 324. IMPROVING OPPORTUNITIES FOR 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''.

             Subtitle B--Women-Owned Small Business Program

SEC. 341. IMPLEMENTATION DEADLINE.

    Not later than 90 days after the date of enactment of this Act, the 
Administrator shall implement the procurement program for small 
business concerns owned and controlled by women under section 8(m) of 
the Small Business Act (15 U.S.C. 637(m)).

SEC. 342. CERTIFICATION.

    (a) Congressional Intent.--It is the intent of Congress that the 
Administrator should accept certifications by other Federal agencies 
and State and local governments and certifications from responsible 
national certifying entities, under such criteria as the Administrator 
may prescribe, by regulation or order, in certifying small business 
concerns owned and controlled by women for purposes of the program 
under section 8(m) of the Small Business Act (15 U.S.C. 637(m)).
    (b) Regulations.--Prior to implementing subsection (a), the 
Administrator shall promulgate regulations ensuring appropriate 
certification safeguards to be implemented by the Administration and 
the agencies and entities described in subsection (a).

            Subtitle C--Small Disadvantaged Business Program

SEC. 361. CERTIFICATION.

    (a) Congressional Intent.--It is the intent of Congress that the 
Administrator should accept certifications by other Federal agencies 
and State and local governments and certifications from responsible 
national certifying entities, under such criteria as the Administrator 
may prescribe, by regulation or order, in certifying small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals.
    (b) Regulations.--Prior to implementing subsection (a), the 
Administrator shall promulgate regulations or orders ensuring 
appropriate certification safeguards to be implemented by the 
Administration and the agencies and entities described in subsection 
(a).

SEC. 362. NET WORTH THRESHOLD.

    Section 8(a)(6)(A) of the Small Business Act (15 U.S.C. 
637(a)(6)(A)) is amended--
            (1) by inserting ``(i)'' after ``(6)(A)'';
            (2) by striking ``In determining the degree of diminished 
        credit'' and inserting the following:
    ``(ii)(I) In determining the degree of diminished credit'';
            (3) by striking ``In determining the economic 
        disadvantage'' and inserting the following:
    ``(iii) In determining the economic disadvantage''; and
            (4) by inserting after clause (ii)(I), as so designated by 
        this section, the following:
    ``(II) In determining the assets and net worth of a socially 
disadvantaged individual under this subparagraph, the Administrator 
shall not consider any assets of such individual in a qualified 
retirement plan, as that term is defined in section 4974(c) of the 
Internal Revenue Code of 1986.
    ``(III) The Administrator shall establish procedures that--
            ``(aa) account for inflationary adjustments to, and include 
        a reasonable assumption of, the average income and net worth of 
        market dominant competitors; and
            ``(bb) require an annual inflationary adjustment to the 
        average income and net worth requirements under this 
        subsection.''.

SEC. 363. EXTENSION OF SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESS 
              PROGRAM.

    (a) In General.--Section 7102(c) of the Federal Acquisition 
Streamlining Act of 1994 (15 U.S.C. 644 note) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2012''.
    (b) Effective Date.--The amendment made by this section shall take 
effect 30 days after the date of enactment of this Act.

     Subtitle D--Historically Underutilized Business Zones Programs

SEC. 381. HUBZONE SMALL BUSINESS CONCERNS.

    Section 3(p)(3) of the Small Business Act (15 U.S.C. 632(p)(3) is 
amended--
            (1) in subparagraph (D), by striking ``or'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(F) a small business concern owned and controlled 
                by an organization described in section 8(a)(15).''.

SEC. 382. MILITARY BASE CLOSINGS.

    (a) HUBZone Status.--
            (1) In general.--Section 3(p)(4)(D) of the Small Business 
        Act (15 U.S.C. 632(p)(4)(D)) is amended--
                    (A) by redesignating clauses (i), (ii), (iii), and 
                (iv) as subclauses (I), (II), (III), and (IV), 
                respectively, and adjusting the margin accordingly;
                    (B) by striking ``means lands'' and inserting the 
                following ``means--
                            ``(i) lands''; and
                    (C) by striking the period at the end and inserting 
                the following: ``; and
                            ``(ii) during the 5-year period beginning 
                        on the date that a military installation is 
                        closed or leased space is vacated under an 
                        authority described in clause (i), areas 
                        adjacent to or within a reasonable commuting 
                        distance of lands described in clause (i) 
                        (which shall not include any area that is more 
                        than 15 miles from the exterior boundary of 
                        that military installation) that are 
                        detrimentally, substantially, and directly 
                        economically affected by the closing of that 
                        military installation, as determined by the 
                        Secretary of Housing and Urban Development.''.
            (2) Feasibility study.--Not later than 6 months after the 
        date of enactment of this Act, the Secretary of Housing and 
        Urban Development shall conduct a study of the feasibility of, 
        and 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 regarding, 
        designating as a HUBZone (as that term is defined in section 3 
        of the Small Business Act (15 U.S.C. 632), as amended by this 
        Act) any area that does not qualify as a HUBZone solely because 
        that area is located within a county located within a 
        metropolitan statistical area (as defined by the Office of 
        Management and Budget). The report submitted under this 
        paragraph shall include any legislative recommendations 
        relating to the findings of the feasibility study conducted 
        under this paragraph.
    (b) Subcontracting Goal.--Section 15(g)(1) of the Small Business 
Act (15 U.S.C. 644(g)(1)) is amended by inserting ``and subcontract'' 
after ``not less than 3 percent of the total value of all prime 
contract''.
    (c) Mentor-Protege Program.--The Administrator may establish a 
mentor-protege program for HUBZone small business concerns (as that 
term is defined in section 3 of the Small Business Act (15 U.S.C. 632)) 
and small business concerns owned and controlled by women, modeled on 
the mentor-protege program of the Administration for small business 
concerns participating in programs under section 8(a) of the Small 
Business Act (15 U.S.C. 637(a)).

                    Subtitle E--BusinessLINC Program

SEC. 391. BUSINESSLINC PROGRAM.

    Section 8(n) of the Small Business Act (15 U.S.C. 637(n)) is 
amended to read as follows:
    ``(n) Business Grants and Cooperative Agreements.--
            ``(1) In general.--In accordance with this subsection, the 
        Administrator shall make grants available to enter into 
        cooperative agreements with any coalition of private entities, 
        not-for-profit entities, public entities, or any combination of 
        private, not-for-profit, and public entities--
                    ``(A) to expand business-to-business relationships 
                between large and small business concerns; and
                    ``(B) to provide, directly or indirectly, with 
                online information and a database of companies that are 
                interested in mentor-protege programs or community-
                based, statewide, or local business development 
                programs.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $3,000,000 for 
        each of fiscal years 2008 through 2010, to remain available 
        until expended.
            ``(3) Reports to congress.--
                    ``(A) In general.--Not later than April 30, 2009, 
                and annually thereafter, the Associate Administrator of 
                Business Development of the Administration shall 
                collect data on the BusinessLINC Program and 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 on the effectiveness 
                of the BusinessLINC Program.
                    ``(B) Contents.--Each report submitted under 
                subparagraph (A) shall include, for the year covered by 
                the report--
                            ``(i) the number of programs administered 
                        in each State under the BusinessLINC Program;
                            ``(ii) the number of grant awards under 
                        each program described in clause (i) and the 
                        date of each such award;
                            ``(iii) the number of participating large 
                        businesses and participating small business 
                        concerns;
                            ``(iv) the number and dollar amount of the 
                        contracts in effect in each State as a result 
                        of the programs run by each grant recipient 
                        under the BusinessLINC Program; and
                            ``(v) the number of mentor-protege, teaming 
                        relationships, or partnerships created as a 
                        result of the BusinessLINC Program.
            ``(4) Definition.--In this subsection, the term 
        `BusinessLINC Program' means the grant program authorized under 
        paragraph (1).''.

                     TITLE IV--ACQUISITION PROCESS

SEC. 401. PROCUREMENT IMPROVEMENTS.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(r) Bundling Data Fields.--For each contract (including task or 
delivery orders against governmentwide or other multiple award 
contracts, indefinite quantity or indefinite delivery contracts, and 
blanket purchase agreements) that is bundled or consolidated, an agency 
shall report publicly, not later than 7 days after the date of the 
award, by means of the Federal governmentwide procurement data system 
described in subsection (c)(5)--
            ``(1) the number of contracts involving small business 
        concerns that were displaced by the bundled or consolidated 
        action;
            ``(2) the number of small business concerns that the 
        contracting officer identified as able to bid on all or part of 
        requirements; and
            ``(3) the projected cost savings anticipated as a result of 
        bundling or consolidating the requirements.
    ``(s) Governmentwide Small Business Training.--The Administrator, 
in conjunction with the head of any other appropriate Federal agency, 
shall coordinate the development of governmentwide training courses on 
small business contracting and subcontracting with small business 
concerns, with special focus on the role of the small business 
specialist as a vital part of the acquisition team.''.

SEC. 402. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL BUSINESSES.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(t) Multiple Award Contracts.--Not later than 180 days after the 
date of enactment of this subsection, the head of each Federal agency, 
with the concurrence of the Administrator, shall, by regulation, 
establish criteria for such agency--
            ``(1) setting aside part or parts of a multiple award 
        contract for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);
            ``(2) setting aside multiple award contracts for small 
        business concerns, including the subcategories of small 
        business concerns identified in subsection (g)(2); and
            ``(3) reserving 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small business 
        concerns identified in subsection (g)(2).''.

SEC. 403. GAO STUDY OF REPORTING SYSTEMS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study of--
            (1) the accuracy and timeliness of data collected under the 
        Small Business Act (15 U.S.C. 631 et seq.) in the CCR database 
        of the Administration, or any successor database, the Federal 
        procurement data system described in section 15(c)(5) of the 
        Small Business Act (15 U.S.C. 644(c)(5)), and the 
        Subcontracting Reporting System; and
            (2) the availability of small business information in these 
        computer-based systems to Congress, Federal agencies, and the 
        public.
    (b) Matters Covered.--The study conducted under subsection (a) 
shall include--
            (1) an assessment of the accuracy and timeliness of the 
        information provided by the data collection systems described 
        in subsection (a)(1) and recommendations as to how any 
        deficiencies in such systems can be eliminated;
            (2) a review of the system manuals for such systems and a 
        determination of the adequacy of such manuals in assisting 
        proper operation and administration of the systems;
            (3) a review of the user manuals for such systems and a 
        determination of the clarity and ease of use of such manuals in 
        assisting those reporting into such systems and those obtaining 
        information from such systems;
            (4) the adequacy of the training given to individuals 
        responsible for reporting into such systems and recommendations 
        for any necessary improvements;
            (5) an assessment of the adequacy of any safeguards in such 
        systems against the reporting of inaccurate and untimely data 
        and the need for any additional safeguards; and
            (6) the system architecture, Internet access, user-friendly 
        characteristics, flexibility to add new data fields, ability to 
        provide structured and unstructured reports, range of 
        information necessary to meet user needs, and adequacy of 
        system and user manuals and instructions of such systems.
    (c) Report.--Not later than November 30, 2008, the Comptroller 
General 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 containing the results of the 
study under this section.

SEC. 404. MICROPURCHASE GUIDELINES.

    Not later than 180 days after the date of enactment of this Act, 
the Director of the Office of Federal Procurement Policy shall issue 
guidelines regarding the analysis of purchase card expenditures to 
identify opportunities for achieving and accurately measuring fair 
participation of small business concerns in micropurchases, consistent 
with the national policy on small business participation in Federal 
procurements set forth in sections 2(a) and 15(g) of the Small Business 
Act (15 U.S.C. 631(a) and 644(g)), and dissemination of best practices 
for participation of small business concerns in micropurchases.

SEC. 405. REPORTING ON OVERSEAS CONTRACTS.

    Not later than 180 days after the end of each fiscal year, the 
Administrator shall submit to Congress a report identifying what 
portion of contracts and subcontracts awarded for performance outside 
of the United States were awarded to small business concerns.

SEC. 406. AGENCY ACCOUNTABILITY.

    (a) In General.--Section 15(g)(2) of the Small Business Act (15 
U.S.C. 644(g)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) in the first sentence, by striking ``shall, after 
        consultation'' and inserting the following: ``shall--
            ``(i) after consultation'';
            (3) by striking ``agency. Goals established'' and inserting 
        the following: ``agency;
            ``(ii) identify a percentage of the procurement budget of 
        the agency to be awarded to small business concerns, in 
        consultation with the Office of Small and Disadvantaged 
        Business Utilization of the agency, which information shall be 
        included in the strategic plan required under section 306 of 
        title 5, United States Code, and the annual budget submission 
        to Congress by that agency, and, upon request, in any testimony 
        provided by that agency before Congress in connection with the 
        budget process; and
            ``(iii) report, as part of its annual performance plan, the 
        extent to which the agency achieved the goals referred to in 
        clause (ii), and appropriate justification for any failure to 
        do so.
    ``(B) Goals established'';
            (4) by striking ``Whenever'' and inserting the following:
    ``(C) Whenever'';
            (5) by striking ``For the purpose of'' and inserting the 
        following:
    ``(D) For the purpose of'';
            (6) in the last sentence--
                    (A) by striking ``(A) contracts'' and inserting 
                ``(i) contracts''; and
                    (B) by striking ``(B) contracts'' and inserting 
                ``(ii) contracts''; and
            (7) by adding at the end the following:
    ``(E)(i) Each procurement employee described in clause (ii)--
            ``(I) shall communicate to their subordinates the 
        importance of achieving small business goals; and
            ``(II) shall have as a significant factor in the annual 
        performance evaluation of that procurement employee, where 
        appropriate, the success of that procurement employee in small 
        business utilization, in accordance with the goals established 
        under this subsection.
    ``(ii) A procurement employee described in this clause is a senior 
procurement executive, senior program manager, or small and 
disadvantaged business utilization manager of a Federal agency having 
contracting authority.''.
    (b) Annual Reports.--Section 10(d) of the Small Business Act (15 
U.S.C. 639(d)) is amended--
            (1) by inserting ``and each agency that is a member of the 
        President's Management Council (or any successor thereto)'' 
        after ``Department of Defense'' the first place that term 
        appears; and
            (2) by inserting ``or that agency'' after ``Department of 
        Defense'' the second place that term appears.

           TITLE V--SMALL BUSINESS SIZE AND STATUS INTEGRITY

SEC. 501. POLICY AND PRESUMPTIONS.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended by 
adding at the end the following:
    ``(s) Presumption.--
            ``(1) In general.--In every contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant which is set aside, reserved, or otherwise 
        classified as intended for award to small business concerns, 
        there shall be a presumption of loss to the United States based 
        on the total dollars expended on such contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant whenever it is established that a business 
        concern other than a small business concern willfully sought 
        and received the award by misrepresentation.
            ``(2) Deemed certifications.--The following actions shall 
        be deemed affirmative, willful, and intentional certifications 
        of small business size and status:
                    ``(A) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement 
                reserved, set aside, or otherwise classified as 
                intended for award to small business concerns.
                    ``(B) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement which in 
                any way encourages a Federal agency to classify such 
                bid or proposal, if awarded, as an award to a small 
                business concern.
                    ``(C) Registration on any Federal electronic 
                database for the purpose of being considered for award 
                of a Federal grant, contract, subcontract, cooperative 
                agreement, or cooperative research agreement, as a 
                small business concern.
            ``(3) Paper-based certification by signature of responsible 
        official.--
                    ``(A) In general.--Each solicitation, bid, or 
                application for a Federal contract, subcontract, or 
                grant shall contain a certification concerning the 
                small business size and status of a business concern 
                seeking such Federal contract, subcontract, or grant.
                    ``(B) Content of certifications.--A certification 
                that a business concern qualifies as a small business 
                concern of the exact size and status claimed by such 
                business concern for purposes of bidding on a Federal 
                contract or subcontract, or applying for a Federal 
                grant, shall contain the signature of a director, 
                officer, or counsel on the same page on which the 
                certification is contained.
            ``(4) Regulations.--The Administrator shall promulgate 
        regulations to provide adequate protections to individuals and 
        business concerns from liability under this subsection in cases 
        of unintentional errors, technical malfunctions, and other 
        similar situations.''.

SEC. 502. ANNUAL CERTIFICATION.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
this Act, is amended by adding at the end the following:
    ``(t) Annual Certification.--
            ``(1) In general.--Each business certified as a small 
        business concern under this Act shall annually certify its 
        small business size and, if appropriate, its small business 
        status, by means of a confirming entry on the CCR database of 
        the Administration, or any successor thereto.
            ``(2) Regulations.--Not later than 120 days after the date 
        of enactment of this subsection, the Administrator, in 
        consultation with the Inspector General and the Chief Counsel 
        for Advocacy of the Administration, shall promulgate 
        regulations to ensure that--
                    ``(A) no business concern continues to be certified 
                as a small business concern on the CCR database of the 
                Administration, or any successor thereto, without 
                fulfilling the requirements for annual certification 
                under this subsection; and
                    ``(B) the requirements of this subsection are 
                implemented in a manner presenting the least possible 
                regulatory burden on small business concerns.
            ``(3) Determination of size status.--Small business size or 
        status for purposes of this Act shall be determined at the time 
        of the award of a Federal--
                    ``(A) contract, provided that, in the case of 
                interagency multiple award contracts, small business 
                size, or status shall be determined annually, except 
                for purposes of the award of each task or delivery 
                order set aside or reserved for small business 
                concerns;
                    ``(B) subcontract;
                    ``(C) grant;
                    ``(D) cooperative agreement; or
                    ``(E) cooperative research and development 
                agreement.''.

SEC. 503. MEANINGFUL PROTESTS OF SMALL BUSINESS SIZE AND STATUS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 37, as added by this Act, the following:

``SEC. 38. SMALL BUSINESS SIZE AND STATUS PROTEST SYSTEM.

    ``(a) Definitions.--In this section:
            ``(1) Protest.--The term `protest' means a written 
        objection by an interested party to a violation of any small 
        business size or status requirement established under any 
        provision of law, including section 3, in connection with--
                    ``(A) a solicitation or other request by a Federal 
                agency for offers for a contract for the procurement of 
                property or services;
                    ``(B) the cancellation of such a solicitation or 
                other request;
                    ``(C) an award or proposed award of such a 
                contract; or
                    ``(D) a termination or cancellation of an award of 
                such a contract, if the written objection contains an 
                allegation that the termination or cancellation is 
                based in whole or in part on improprieties concerning 
                the award of the contract.
            ``(2) Interested party.--
                    ``(A) In general.--The term `interested party', 
                with respect to a contract or a solicitation or other 
                request for offers described in paragraph (1), means an 
                actual or prospective bidder or offeror whose direct 
                economic interest would be affected by the award of the 
                contract or by failure to award the contract.
                    ``(B) Inclusions.--The term `interested party' 
                includes the official responsible for submitting the 
                Federal agency tender in a public-private competition 
                conducted under Office of Management and Budget 
                Circular A-76 (or any successor thereto) regarding an 
                activity or function of a Federal agency performed by 
                more than 65 full-time equivalent employees of the 
                Federal agency.
            ``(3) Federal agency.--The term `Federal agency' has the 
        same meaning as in section 102 of title 40, United States Code.
    ``(b) Review of Protests; Effect on Contracts Pending Decision.--
            ``(1) In general.--Under procedures established under 
        subsection (d), the Administrator shall decide a protest 
        submitted to the Administrator by an interested party.
            ``(2) Receipts of protests.--
                    ``(A) In general.--Not later than 1 day after the 
                receipt of a protest, the Administrator shall notify 
                the Federal agency involved of the protest.
                    ``(B) Agencies.--Except as provided in subparagraph 
                (C), a Federal agency receiving a notice of a protested 
                procurement under subparagraph (A) shall submit to the 
                Administrator a complete report (including all relevant 
                documents) on the small business size or status aspects 
                of the protested procurement--
                            ``(i) not later than 30 days after the date 
                        of the receipt of that notice by the agency;
                            ``(ii) if the Administrator, upon a showing 
                        by the Federal agency, determines (and states 
                        the reasons in writing) that the specific 
                        circumstances of the protest require a longer 
                        period, within the longer period determined by 
                        the Administrator; or
                            ``(iii) in a case determined by the 
                        Administrator to be suitable for the express 
                        option under subsection (c)(1)(B), not later 
                        than 20 days after the date of the receipt of 
                        that determination by the agency.
                    ``(C) Exceptions.--A Federal agency need not submit 
                a report to the Administrator under subparagraph (B) if 
                the agency is notified by the Administrator before the 
                date on which such report is to be submitted that the 
                protest concerned has been dismissed under subsection 
                (c)(1)(D).
            ``(3) Award of contracts.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a contract may not be awarded in any 
                procurement after the Federal agency has received 
                notice of a protest with respect to such procurement 
                from the Administrator and while the protest is 
                pending.
                    ``(B) Exceptions.--The head of the procuring 
                activity responsible for award of a contract may 
                authorize the award of the contract (notwithstanding a 
                protest of which the Federal agency has notice under 
                this section)--
                            ``(i) upon a written finding that urgent 
                        and compelling circumstances which 
                        significantly affect interests of the United 
                        States will not permit waiting for the decision 
                        of the Administrator under this section; and
                            ``(ii) after the Administrator is advised 
                        of that finding.
                    ``(C) Urgent and compelling circumstances.--A 
                finding may not be made under subparagraph (B)(i), 
                unless the award of the contract is otherwise likely to 
                occur within 30 days after the making of such finding.
            ``(4) Performance.--
                    ``(A) In general.--A contractor awarded a Federal 
                agency contract may, during the period described in 
                subparagraph (D), begin performance of the contract and 
                engage in any related activities that result in 
                obligations being incurred by the United States under 
                the contract, unless the contracting officer 
                responsible for the award of the contract withholds 
                authorization to proceed with performance of the 
                contract.
                    ``(B) Authorization withheld.--The contracting 
                officer may withhold an authorization to proceed with 
                performance of the contract during the period described 
                in subparagraph (D) if the contracting officer 
                determines in writing that--
                            ``(i) a protest is likely to be filed with 
                        the Administrator alleging a violation of a 
                        small business size or status requirement; and
                            ``(ii) the immediate performance of the 
                        contract is not in the best interests of the 
                        United States.
                    ``(C) Notice of protest.--
                            ``(i) In general.--If the Federal agency 
                        awarding the contract receives notice of a 
                        protest in accordance with this subsection 
                        during the period described in subparagraph 
                        (D)--
                                    ``(I) the contracting officer may 
                                not authorize performance of the 
                                contract to begin while the protest is 
                                pending; or
                                    ``(II) if authorization for 
                                contract performance to proceed was not 
                                withheld in accordance with 
                                subparagraph (B) before receipt of the 
                                notice, the contracting officer shall 
                                immediately direct the contractor to 
                                cease performance under the contract 
                                and to suspend any related activities 
                                that may result in additional 
                                obligations being incurred by the 
                                United States under that contract.
                            ``(ii) Performance.--Performance and 
                        related activities suspended under clause 
                        (i)(II) by reason of a protest may not be 
                        resumed while the protest is pending.
                            ``(iii) Exceptions.--The head of the 
                        procuring activity may authorize the 
                        performance of the contract (notwithstanding a 
                        protest of which the Federal agency has notice 
                        under this section)--
                                    ``(I) upon a written finding that--
                                            ``(aa) performance of the 
                                        contract is in the best 
                                        interests of the United States; 
                                        or
                                            ``(bb) urgent and 
                                        compelling circumstances that 
                                        significantly affect interests 
                                        of the United States will not 
                                        permit waiting for the decision 
                                        of the Administrator concerning 
                                        the protest; and
                                    ``(II) after the Administrator is 
                                notified of that finding.
                    ``(D) Time period.--The period described in this 
                subparagraph, with respect to a contract, is the period 
                beginning on the date of the contract award and ending 
                on the later of--
                            ``(i) the date that is 10 days after the 
                        date of the contract award; or
                            ``(ii) the date that is 5 days after the 
                        debriefing date offered to an unsuccessful 
                        offeror for any debriefing that is requested 
                        and, when requested, is required.
            ``(5) Nondelegation.--The authority of the head of the 
        procuring activity to make findings and to authorize the award 
        and performance of contracts under paragraphs (3) and (4) may 
        not be delegated.
            ``(6) Provision of documents.--
                    ``(A) In general.--Within such deadlines as the 
                Administrator prescribes, and upon request, each 
                Federal agency shall provide to an interested party any 
                document relevant to a protested procurement action 
                (including the report required by paragraph (2)(B)) 
                that would not give that party a competitive advantage 
                and that the party is otherwise authorized by law to 
                receive.
                    ``(B) Protective orders.--
                            ``(i) In general.--The Administrator may 
                        issue protective orders which establish terms, 
                        conditions, and restrictions for the provision 
                        of any document to a party under subparagraph 
                        (A), that prohibit or restrict the disclosure 
                        by the party of information described in clause 
                        (ii) that is contained in such a document.
                            ``(ii) Types of information.--Information 
                        referred to in clause (i) is procurement 
                        sensitive information, trade secrets, or other 
                        proprietary or confidential research, 
                        development, or commercial information.
                            ``(iii) Information to the federal 
                        government.--A protective order under this 
                        subparagraph shall not be considered to 
                        authorize the withholding of any document or 
                        information from Congress or an executive 
                        agency.
            ``(7) Interested parties.--If an interested party files a 
        protest in connection with a public-private competition 
        described in subsection (a)(2)(B), a person representing a 
        majority of the employees of the Federal agency who are engaged 
        in the performance of the activity or function subject to the 
        public-private competition may intervene in protest.
    ``(c) Decisions on Protests.--
            ``(1) In general.--
                    ``(A) Inexpensive and expeditious resolution.--To 
                the maximum extent practicable, the Administrator shall 
                provide for the inexpensive and expeditious resolution 
                of protests under this section. Except as provided 
                under subparagraph (B), the Administrator shall issue a 
                final decision concerning a protest not later than 100 
                days after the date on which the protest is submitted 
                to the Administration.
                    ``(B) Express option.--The Administrator shall, by 
                regulation established under subsection (d), establish 
                an express option for deciding those protests which the 
                Administrator determines suitable for resolution, not 
                later than 65 days after the date on which the protest 
                is submitted.
                    ``(C) Amendments.--An amendment to a protest that 
                adds a new ground of protest, if timely made, should be 
                resolved, to the maximum extent practicable, within the 
                time limit established under subparagraph (A) for final 
                decision of the initial protest. If an amended protest 
                cannot be resolved within such time limit, the 
                Administrator may resolve the amended protest through 
                the express option under subparagraph (B).
                    ``(D) Frivolous protests.--The Administrator may 
                dismiss a protest that the Administrator determines is 
                frivolous or which, on its face, does not state a valid 
                basis for protest.
            ``(2) Compliance with law.--
                    ``(A) In general.--With respect to a solicitation 
                for a contract, or a proposed award or the award of a 
                contract, protested under this section, the 
                Administrator may determine whether the solicitation, 
                proposed award, or award complies with statutes and 
                regulations regarding small business size or status. If 
                the Administrator determines that the solicitation, 
                proposed award, or award does not comply with a statute 
                or regulation, the Administrator shall recommend that 
                the Federal agency--
                            ``(i) refrain from exercising any of its 
                        options under the contract;
                            ``(ii) recompete the contract immediately;
                            ``(iii) issue a new solicitation;
                            ``(iv) terminate the contract;
                            ``(v) award a contract consistent with the 
                        requirements of such statutes and regulations; 
                        or
                            ``(vi) implement such other recommendations 
                        as the Administrator determines to be necessary 
                        in order to promote compliance with procurement 
                        statutes and regulations.
                    ``(B) Best interests of united states.--If the head 
                of the procuring activity responsible for a contract 
                makes a finding described in subsection 
                (b)(4)(C)(iii)(I)(aa), the Administrator shall make 
                recommendations under this paragraph without regard to 
                any cost or disruption from terminating, recompeting, 
                or reawarding the contract.
                    ``(C) Implementation.--If the Federal agency fails 
                to implement fully the recommendations of the 
                Administrator under this paragraph with respect to a 
                solicitation for a contract or an award or proposed 
                award of a contract by the date that is 60 days after 
                the date on which the agency received the 
                recommendations, the head of the procuring activity 
                responsible for that contract shall report such failure 
                to the Administrator not later than 5 days after the 
                end of such 60-day period.
            ``(3) Payment of costs.--
                    ``(A) In general.--If the Administrator determines 
                that a solicitation for a contract or a proposed award 
                or the award of a contract does not comply with a 
                statute or regulation, the Administrator may recommend 
                that the Federal agency conducting the procurement pay 
                to an appropriate interested party the costs of--
                            ``(i) filing and pursuing the protest, 
                        including reasonable attorney's fees and 
                        consultant and expert witness fees; and
                            ``(ii) bid and proposal preparation.
                    ``(B) Costs not included.--No party (other than a 
                small business concern) may be paid, under a 
                recommendation made under the authority of subparagraph 
                (A)--
                            ``(i) costs for consultant and expert 
                        witness fees that exceed the highest rate of 
                        compensation for expert witnesses paid by the 
                        Federal Government; or
                            ``(ii) costs for attorney's fees that 
                        exceed $300 per hour, unless the agency 
                        determines, based on the recommendation of the 
                        Administrator on a case by case basis, that an 
                        increase in the cost of living or a special 
                        factor, such as the limited availability of 
                        qualified attorneys for the proceedings 
                        involved, justifies a higher fee.
                    ``(C) Recommendation to pay costs.--If the 
                Administrator recommends under subparagraph (A) that a 
                Federal agency pay costs to an interested party, the 
                Federal agency shall--
                            ``(i) pay the costs promptly; or
                            ``(ii) if the Federal agency does not make 
                        such payment, promptly report to the 
                        Administrator the reasons for the failure to 
                        follow the Administrator's recommendation.
                    ``(D) Agreement on amount.--If the Administrator 
                recommends under subparagraph (A) that a Federal agency 
                pay costs to an interested party, the Federal agency 
                and the interested party shall attempt to reach an 
                agreement on the amount of the costs to be paid. If the 
                Federal agency and the interested party are unable to 
                agree on the amount to be paid, the Administrator may, 
                upon the request of the interested party, recommend to 
                the Federal agency the amount of the costs that the 
                Federal agency should pay.
            ``(4) Decisions.--Each decision of the Administrator under 
        this section shall be signed by the Administrator or a designee 
        for that purpose. A copy of the decision shall be made 
        available to the interested parties, the head of the procuring 
        activity responsible for the solicitation, proposed award, or 
        award of the contract, and the senior procurement executive of 
        the Federal agency involved.
            ``(5) Reports.--
                    ``(A) Failure to implement recommendations.--
                            ``(i) In general.--The Administrator shall 
                        report promptly to the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        to the Committee on Small Business of the House 
                        of Representatives any case in which a Federal 
                        agency fails to implement fully a 
                        recommendation of the Administrator under 
                        paragraph (2) or (3).
                            ``(ii) Contents.--Each report under clause 
                        (i) shall include--
                                    ``(I) a comprehensive review of the 
                                pertinent procurement, including the 
                                circumstances of the failure of the 
                                Federal agency to implement a 
                                recommendation of the Administrator; 
                                and
                                    ``(II) a recommendation regarding 
                                whether, in order to correct an 
                                inequity or to preserve the integrity 
                                of the procurement process, Congress 
                                should consider--
                                            ``(aa) private relief 
                                        legislation;
                                            ``(bb) legislative 
                                        rescission or cancellation of 
                                        funds;
                                            ``(cc) further 
                                        investigation by Congress; or
                                            ``(dd) other action.
                    ``(B) Annual reports.--Not later than January 31 of 
                each year, the Administrator shall transmit to Congress 
                a report containing a summary of each instance in which 
                a Federal agency did not fully implement a 
                recommendation of the Administrator under subsection 
                (b) or this subsection during the preceding year. The 
                report shall also describe each instance in which a 
                final decision in a protest was not rendered within 100 
                days after the date on which the protest was submitted 
                to the Administrator.
    ``(d) Regulations; Authority of Administrator To Verify 
Assertions.--
            ``(1) In general.--The Administrator shall establish such 
        procedures as may be necessary for the expeditious decision of 
        protests under this section, including procedures for 
        accelerated resolution of protests under the express option 
        authorized by subsection (c)(1)(B). Such procedures shall 
        provide that the protest process may not be delayed by the 
        failure of a party to make a filing within the time provided 
        for the filing.
            ``(2) Computation of time.--The procedures established 
        under paragraph (1) shall provide that, in the computation of 
        any period described in this section--
                    ``(A) the day of the act, event, or default from 
                which the designated period of time begins to run not 
                be included; and
                    ``(B) the last day after such act, event, or 
                default be included, unless--
                            ``(i) such last day is a Saturday, a 
                        Sunday, or a legal holiday; or
                            ``(ii) in the case of a filing of a paper 
                        at the Administration or another Federal 
                        agency, such last day is a day on which weather 
                        or other conditions cause the closing of the 
                        Administration or other Federal agency, in 
                        which event the next day that is not a 
                        Saturday, Sunday, or legal holiday shall be 
                        included.
            ``(3) Electronic filing.--The Administrator may prescribe 
        procedures for the electronic filing and dissemination of 
        documents and information required under this section. In 
        prescribing such procedures, the Administrator shall consider 
        the ability of all parties to achieve electronic access to such 
        documents and records.
    ``(e) Enforcement.--The Administrator may use any authority 
available under this Act or any other provision of law to verify 
assertions made by parties in protests under this section.
    ``(f) Regulations.--The Administrator may issue regulations 
regarding the use of the protest authority to consider small business 
size or status challenges under this section in matters involving any 
other program for small business concerns.''.

SEC. 504. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.

    (a) In General.--Not later than 270 days after the date of 
enactment of this Act, the head of each appropriate Federal agency or 
entity shall, in consultation with the Administrator or the Inspector 
General of the Administration, as appropriate, develop courses 
concerning proper classification of business concerns and small 
business size and status for purposes of Federal contracts, 
subcontracts, grants, cooperative agreements, and cooperative research 
and development agreements.
    (b) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by this Act, is amended by adding at the end the following:
    ``(u) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Not later than 180 days after the date of enactment of this 
subsection, the head of each relevant Federal agency and the Inspector 
General of the Administration shall issue a Governmentwide policy on 
prosecution of small business size and status fraud.''.

SEC. 505. UPDATED SIZE STANDARDS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall--
            (1) conduct a detailed review of the size standards for 
        small business concerns established under section 3(a)(2) of 
        the Small Business Act (15 U.S.C. 632(a)(2)); and
            (2) if determined appropriate by the Administrator, 
        promulgate revised size standards under that section.
    (b) Publication.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall make publically available 
information regarding--
            (1) the factors evaluated as part of the review conducted 
        under subsection (a)(1); and
            (2) the criteria used for any revised size standards 
        promulgated under subsection (a)(2).

SEC. 506. SMALL BUSINESS SIZE AND STATUS FOR PURPOSE OF MULTIPLE AWARD 
              CONTRACTS.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
this Act, is amended by adding at the end the following:
    ``(w) Small Business Size and Status for Purpose of Multiple Award 
Contracts.--
            ``(1) In general.--A business concern that enters a 
        multiple award contract of any kind with the Federal Government 
        shall in any year in which such a contract is in effect, submit 
        an annual statement at the end of its fiscal year recertifying 
        its small business size and status to the Federal agency which 
        awarded the contract.
            ``(2) Relation to other laws.--Compliance with paragraph 
        (1) shall not affect the obligation of a business concern to 
        comply with other provisions of law concerning small business 
        size or status.''.
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