[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3850 Reported in House (RH)]

                                                 Union Calendar No. 523
112th CONGRESS
  2d Session
                                H. R. 3850

                      [Report No. 112-720, Part I]

 To amend the Small Business Act with respect to goals for procurement 
 contracts awarded to small business concerns, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 31, 2012

  Mr. Graves of Missouri (for himself, Mr. Owens, and Mr. Schilling) 
 introduced the following bill; which was referred to the Committee on 
   Small Business, and in addition to the Committee on Oversight and 
 Government Reform, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

                           December 21, 2012

Additional sponsors: Mr. Chabot, Mrs. Ellmers, Mr. Mulvaney, Mr. Walsh 
 of Illinois, Mr. West, Mr. Hanna, Mr. Tipton, and Ms. Herrera Beutler

                           December 21, 2012

    Reported from the Committee on Small Business with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]


                           December 21, 2012

The Committee on Oversight and Government Reform discharged; committed 
   to the Committee of the Whole House on the State of the Union and 
                         ordered to be printed
[For text of introduced bill, see copy of bill as introduced on January 
                               31, 2012]

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act with respect to goals for procurement 
 contracts awarded to small business concerns, and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Efficiency through Small 
Business Contracting Act of 2012''.

SEC. 2. GOALS FOR PROCUREMENT CONTRACTS AWARDED TO SMALL BUSINESS 
              CONCERNS.

    (a) In General.--Section 15(g) of the Small Business Act (15 U.S.C. 
644(g)) is amended by striking the subsection enumerator and inserting 
the following:
    ``(g) Goals for Procurement Contracts Awarded to Small Business 
Concerns.--''.
    (b) Governmentwide Goals.--Paragraph (1) of section 15(g) of such 
Act (15 U.S.C. 644(g)) is amended to read as follows:
            ``(1) Governmentwide goals.--The President shall annually 
        establish Governmentwide 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, and small business concerns owned and controlled 
        by women in accordance with the following:
                    ``(A) The Governmentwide goal for participation by 
                small business concerns shall be established at not 
                less than 25 percent of the total value of all prime 
                contract awards for each fiscal year and 40 percent of 
                the total value of all subcontract awards for each 
                fiscal year.
                    ``(B) The Governmentwide goal for participation by 
                small business concerns owned and controlled by 
                service-disabled veterans shall be established at not 
                less than 3 percent of the total value of all prime 
                contract and at not less than 3 percent of the total 
                value of all subcontract awards for each fiscal year.
                    ``(C) The Governmentwide goal for participation by 
                qualified HUBZone small business concerns shall be 
                established at not less than 3 percent of the total 
                value of all prime contract and at not less than 3 
                percent of the total value of all subcontract awards 
                for each fiscal year.
                    ``(D) The Governmentwide goal for participation by 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals 
                shall be established at not less than 5 percent of the 
                total value of all prime contract and at not less than 
                5 percent of the total value of all subcontract awards 
                for each fiscal year.
                    ``(E) The Governmentwide goal for participation by 
                small business concerns owned and controlled by women 
                shall be established at not less than 5 percent of the 
                total value of all prime contract and at not less than 
                5 percent of the total value of all subcontract awards 
                for each fiscal year.''.
    (c) Agency Goals.--Paragraph (2) of section 15(g) of such Act (15 
U.S.C. 644(g)) is amended to read as follows:
            ``(2) Agency goals.--
                    ``(A) Establishment.--The head of each Federal 
                agency shall annually establish, for the agency that 
                individual heads, 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, 
                and small business concerns owned and controlled by 
                women.
                    ``(B) Relationship to governmentwide goals.--
                            ``(i) Scope.--The goals established by the 
                        head of a Federal agency under subparagraph (A) 
                        shall be in the same format as the goals 
                        established by the President under paragraph 
                        (1) and shall address both prime contract and 
                        subcontract awards.
                            ``(ii) Requirement to meet or exceed 
                        governmentwide goals.--With respect to each 
                        goal for a fiscal year established under 
                        subparagraph (A) for a category of small 
                        business concern, the participation percentage 
                        applicable to such goal may not be less than 
                        the participation percentage applicable to the 
                        Governmentwide goal for such fiscal year 
                        established under paragraph (1) for such 
                        category.
                    ``(C) Consultation required.--
                            ``(i) In general.--In establishing goals 
                        under subparagraph (A), the head of each 
                        Federal agency shall consult with the 
                        Administrator.
                            ``(ii) Disagreements.--If the Administrator 
                        and the head of a Federal agency fail to agree 
                        on a goal established under subparagraph (A), 
                        the disagreement shall be submitted to the 
                        Administrator for Federal Procurement Policy 
                        for final determination.
                    ``(D) Plan for achieving goals.--After establishing 
                goals under subparagraph (A) for a fiscal year, the 
                head of each Federal agency shall develop a plan for 
                achieving such goals, which shall apportion 
                responsibilities among the employees of such agency 
                having procurement powers.
                    ``(E) Expanded participation.--In establishing 
                goals under subparagraph (A), the head of each Federal 
                agency shall make a consistent effort to annually 
                expand participation by small business concerns from 
                each industry category in procurement contracts of such 
                agency, including participation by 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, 
                and small business concerns owned and controlled by 
                women.
                    ``(F) Consideration.--The head of each Federal 
                agency, in attempting to attain expanded participation 
                under subparagraph (E), shall consider--
                            ``(i) contracts awarded as the result of 
                        unrestricted competition; and
                            ``(ii) contracts awarded after competition 
                        restricted to eligible small business concerns 
                        under this section and under the program 
                        established under section 8(a).
                    ``(G) Communication regarding goals.--
                            ``(i) Importance of achieving goals.--Each 
                        procurement employee or program manager 
                        described in clause (ii) shall communicate to 
                        the subordinates of the procurement employee or 
                        program manager the importance of achieving 
                        goals established under subparagraph (A).
                            ``(ii) Procurement employees or program 
                        managers described.--A procurement employee or 
                        program manager described in this clause is a 
                        senior procurement executive, senior program 
                        manager, or Director of Small and Disadvantaged 
                        Business Utilization of a Federal agency having 
                        contracting authority.''.
    (d) Enforcement; Determinations of the Total Value of Contract 
Awards.--Section 15(g) of the Small Business Act (15 U.S.C. 644(g)), as 
amended by this Act, is further amended by adding at the end the 
following:
            ``(3) Enforcement.--If the Administrator does not issue the 
        report required in subsection (h)(2) on or before the date that 
        is 120 days after the end of the prior fiscal year, the 
        Administrator may not carry out or establish any pilot program 
        until the date on which the Administrator issues the report.
            ``(4) Determinations of the total value of contract 
        awards.--For purposes of the goals established under paragraphs 
        (1) and (2), the total value of contract awards for a fiscal 
        year may not be determined in a manner that excludes the value 
        of a contract based on--
                    ``(A) where the contract is awarded;
                    ``(B) where the contract is performed;
                    ``(C) whether the contract is mandated by Federal 
                law to be performed by an entity other than a small 
                business concern;
                    ``(D) whether funding for the contract is made 
                available in an appropriations Act, if the contract is 
                subject to the Competition in Contracting Act of 1984; 
                or
                    ``(E) whether the contract is subject to the 
                Federal Acquisition Regulation.''.

SEC. 3. REPORTING ON GOALS FOR PROCUREMENT CONTRACTS AWARDED TO SMALL 
              BUSINESS CONCERNS.

    Subsection (h) of section 15 of the Small Business Act (15 U.S.C. 
644) is amended to read as follows:
    ``(h) Reporting on Goals for Procurement Contracts Awarded to Small 
Business Concerns.--
            ``(1) Agency reports.--At the conclusion of each fiscal 
        year, the head of each Federal agency shall submit to the 
        Administrator a report describing--
                    ``(A) the extent of the participation by small 
                business concerns, small business concerns owned and 
                controlled by veterans (including service-disabled 
                veterans), qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals, 
                and small business concerns owned and controlled by 
                women in the procurement contracts of such agency 
                during such fiscal year;
                    ``(B) whether the agency achieved the goals 
                established for the agency under subsection (g)(2)(A) 
                with respect to such fiscal year; and
                    ``(C) any justifications for a failure to achieve 
                such goals.
            ``(2) Reports by administrator.--Not later than 60 days 
        after receiving a report from each Federal agency under 
        paragraph (1) with respect to a fiscal year, the Administrator 
        shall submit to the President and Congress, and to make 
        available on a public website, a report that includes--
                    ``(A) a copy of each report submitted to the 
                Administrator under paragraph (1);
                    ``(B) a determination of whether each goal 
                established by the President under subsection (g)(1) 
                for such fiscal year was achieved;
                    ``(C) a determination of whether each goal 
                established by the head of a Federal agency under 
                subsection (g)(2)(A) for such fiscal year was achieved;
                    ``(D) the reasons for any failure to achieve a goal 
                established under paragraph (1) or (2)(A) of subsection 
                (g) for such fiscal year and a description of actions 
                planned by the applicable agency to address such 
                failure, except that the Administrator must concur with 
                each remediation plan;
                    ``(E) for the Federal Government and each Federal 
                agency, an analysis of the number and dollar amount of 
                prime contracts awarded during such fiscal year to--
                            ``(i) small business concerns--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns; 
                                and
                                    ``(IV) through unrestricted 
                                competition;
                            ``(ii) small business concerns owned and 
                        controlled by service-disabled veterans--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to small business concerns 
                                owned and controlled by service-
                                disabled veterans; and
                                    ``(V) through unrestricted 
                                competition;
                            ``(iii) qualified HUBZone small business 
                        concerns--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to qualified HUBZone small 
                                business concerns;
                                    ``(V) through unrestricted 
                                competition where a price evaluation 
                                preference was used; and
                                    ``(VI) through unrestricted 
                                competition where a price evaluation 
                                preference was not used;
                            ``(iv) small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals;
                                    ``(V) through unrestricted 
                                competition; and
                                    ``(VI) by reason of that concern's 
                                certification as a small business owned 
                                and controlled by socially and 
                                economically disadvantaged individuals;
                            ``(v) small business concerns owned by an 
                        Alaska Native Corporation--
                                    ``(I) in the aggregate;
                                    ``(II) through sole source 
                                contracts;
                                    ``(III) through competitions 
                                restricted to small business concerns;
                                    ``(IV) through competitions 
                                restricted to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals; 
                                and
                                    ``(V) through unrestricted 
                                competition; and
                            ``(vi) small business concerns owned and 
                        controlled by women--
                                    ``(I) in the aggregate;
                                    ``(II) through competitions 
                                restricted to small business concerns;
                                    ``(III) through competitions 
                                restricted using the authority under 
                                section 8(m)(2);
                                    ``(IV) through competitions 
                                restricted using the authority under 
                                section 8(m)(2) and in which the waiver 
                                authority under section 8(m)(3) was 
                                used; and
                                    ``(V) through unrestricted 
                                competition; and
                    ``(F) for the Federal Government and each Federal 
                agency, the number, dollar amount, and distribution 
                with respect to the North American Industry 
                Classification System of subcontracts awarded during 
                such fiscal year 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, 
                and small business concerns owned and controlled by 
                women.''.

SEC. 4. SENIOR EXECUTIVES.

    (a) Training.--Programs established for the development of senior 
executives under section 3396(a) of title 5, United States Code, shall 
include training with respect to Federal procurement requirements, 
including contracting requirements under the Small Business Act (15 
U.S.C. 631 et seq.).
    (b) Sabbaticals.--If a Federal agency does not achieve, with 
respect to a fiscal year, a goal established by the head of such agency 
under section 15(g)(2)(A) of the Small Business Act (15 U.S.C. 
644(g)(2)(A)), a senior executive within that agency may not be 
granted, during the succeeding fiscal year, a sabbatical under section 
3396(c) of title 5, United States Code.
    (c) Incentive Awards.--If a Federal agency does not achieve, with 
respect to a fiscal year, a goal established by the head of such agency 
under section 15(g)(2)(A) of the Small Business Act (15 U.S.C. 
644(g)(2)(A)), a senior executive within that agency may not receive, 
during the succeeding fiscal year, any incentive award under subchapter 
I of chapter 45 of title 5, United States Code.
    (d) Senior Executive Defined.--In this section, the term ``senior 
executive'' has the meaning given that term in section 3132(a) of title 
5, United States Code.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that the contracting provisions of the 
Small Business Act shall apply to the leasing of buildings and office 
space by the United States, and shall not apply to any leasing 
transaction between private parties.
                                                 Union Calendar No. 523

112th CONGRESS

  2d Session

                               H. R. 3850

                      [Report No. 112-720, Part I]

_______________________________________________________________________

                                 A BILL

 To amend the Small Business Act with respect to goals for procurement 
 contracts awarded to small business concerns, and for other purposes.

_______________________________________________________________________

                           December 21, 2012

    Reported from the Committee on Small Business with an amendment

                           December 21, 2012

The Committee on Oversight and Government Reform discharged; committed 
   to the Committee of the Whole House on the State of the Union and 
                         ordered to be printed