1.Short title; table of
contents
(a)This Act may be cited
as the Subcontracting Transparency and
Reliability Act of 2012
.
(b)
Sec. 1. Short title; table of
contents.
Title I—Limitations on
subcontracting
Sec. 101. Limitations on
subcontracting.
Sec. 102. Penalties.
Sec. 103. Conforming amendments.
Sec. 104. Guidance.
Title II—Subcontracting plans
Sec. 201. Subcontracting plans.
Sec. 202. Notices of subcontracting
opportunities.
Title III—Insourcing
Sec. 301. Definitions relating to procurement
protest system.
Sec. 302. Insourcing.
<enum>I</enum><header>Limitations on
subcontracting</header>
<section id="H53F1A74A467C47D3AD1C68C7EED9781E"><enum>101.</enum><header>Limitations on
subcontracting</header><text display-inline="no-display-inline">The Small
Business Act (15 U.S.C. 631 et seq.) is amended—</text>
<paragraph id="HE6E134904E4440749844CDB808B970E0"><enum>(1)</enum><text>by redesignating section
45 as section 47; and</text>
</paragraph><paragraph id="H7B9B27FDDB174D048E20875246C7FCF4"><enum>(2)</enum><text>by inserting after
section 44 the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H81FDBA2C06C54618BCA9F4E772B0F89F" reported-display-style="italic" style="OLC">
<section id="H1691F84ACA034ACAB37374B1C0B30878"><enum>45.</enum><header>Limitations on
subcontracting</header>
<subsection id="HB81646C100534311976CE88F791A976C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">If awarded a contract
under section 8(a), 8(m), 15(a), 31, or 36, a covered small business
concern—</text>
<paragraph id="H158014D6ED2F425EA745F2819FA90DE4"><enum>(1)</enum><text>in the case of a contract
for services, may not expend on subcontractors more than 50 percent of the
amount paid to the concern under the contract;</text>
</paragraph><paragraph id="H1F5276538CDC466FAF72D6D4470B12E3"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a contract for supplies
(other than from a regular dealer in such supplies), may not expend on
subcontractors more than 50 percent of the amount, less the cost of materials,
paid to the concern under the contract;</text>
</paragraph><paragraph id="H57126936634941DBBAA85DE07C573E30"><enum>(3)</enum><text display-inline="yes-display-inline">in the case of a contract described in more
than 1 of paragraphs (1) through (4)—</text>
<subparagraph id="H16BA602A127146BB888826ADA97C86B3"><enum>(A)</enum><text>shall determine for which
category of services or supplies, described in 1 of paragraphs (1) through (4),
the greatest percentage of the contract amount is awarded;</text>
</subparagraph><subparagraph id="HA73D1A5A04FC4ACD876321C83500DBCC"><enum>(B)</enum><text>shall determine the
amount awarded under the contract for that category of services or supplies;
and</text>
</subparagraph><subparagraph id="H42A121377A7F45B68B881256CE157704"><enum>(C)</enum><text>may not expend on
subcontractors, with respect to the amount determined under subparagraph (B),
more than—</text>
<clause id="HC32D7D61A56A40C796E930F9AE2C76EC"><enum>(i)</enum><text display-inline="yes-display-inline">50 percent of that amount, if the category
of services or supplies applicable under subparagraph (A) is described in
paragraph (1); and</text>
</clause><clause id="HF24029C14C704FC9B6EF556716D0C692"><enum>(ii)</enum><text display-inline="yes-display-inline">50 percent of that amount, if the category
of services or supplies applicable under subparagraph (A) is described in
paragraph (2); and</text>
</clause></subparagraph></paragraph><paragraph id="H1C213EA4CA95486DA6C0F68507021759"><enum>(4)</enum><text display-inline="yes-display-inline">in the case of a contract for supplies from
a regular dealer in such supplies, shall supply the product of a domestic small
business manufacturer or processor, unless a waiver of such requirement is
granted—</text>
<subparagraph id="HE15689CD507F4076B17E13058D6CEED6"><enum>(A)</enum><text>by the Administrator,
after reviewing a determination by the applicable contracting officer that no
small business manufacturer or processor can reasonably be expected to offer a
product meeting the specifications (including period for performance) required
by the contract; or</text>
</subparagraph><subparagraph id="H6A942975E7CD4B24B21818F9BF700EC7"><enum>(B)</enum><text>by the Administrator for
a product (or class of products), after determining that no small business
manufacturer or processor is available to participate in the Federal
procurement market.</text>
</subparagraph></paragraph></subsection><subsection id="H44F1855EF6904FD0B7D59B0E26186822"><enum>(b)</enum><header>Similarly situated
entities</header><text>Contract amounts expended by a covered small business
concern on a subcontractor that is a similarly situated entity shall not be
considered subcontracted for purposes of determining whether the covered small
business concern has violated a requirement established under subsection (a) or
(d).</text>
</subsection><subsection id="HC1FCDE1CA8924895AF686E589847A3BE"><enum>(c)</enum><header>Modifications of
percentages</header>
<paragraph id="HFA8D842294F14A2CB5D17CF2956DD0AC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Administrator may
change, by rule (after providing notice and an opportunity for public comment),
a percentage specified in paragraphs (1) through (4) of subsection (a) if the
Administrator determines that such change is necessary to reflect conventional
industry practices among business concerns that are below the numerical size
standard for businesses in that industry category.</text>
</paragraph><paragraph id="H09683E24151140E8BAAE1833BD2FE0D5"><enum>(2)</enum><header>Uniformity</header><text>A
change to a percentage under paragraph (1) shall apply to all covered small
business concerns.</text>
</paragraph></subsection><subsection id="H4CF5CF020BB341EBB13DD20C5DD22521"><enum>(d)</enum><header>Other
contracts</header>
<paragraph id="H542C69E522CD4D0BA5FF55570958FE27"><enum>(1)</enum><header>In
general</header><text>With respect to a category of contracts to which a
requirement under subsection (a) does not apply, the Administrator is
authorized to establish, by rule (after providing notice and an opportunity for
public comment), a requirement that a covered small business concern may not
expend on subcontractors more than a specified percentage of the amount paid to
the concern under a contract in that category.</text>
</paragraph><paragraph id="HBF5547C2F6CB45FE92933E028A422716"><enum>(2)</enum><header>Uniformity</header><text>A
requirement established under paragraph (1) shall apply to all covered small
business concerns.</text>
</paragraph><paragraph id="HA5A174FA3E7F4AC9A8EA2C025D8967D9"><enum>(3)</enum><header>Construction
projects</header><text display-inline="yes-display-inline">The Administrator
shall establish, through public rulemaking, requirements similar to those
specified in paragraph (1) to be applicable to contracts for general and
specialty construction and to contracts for any other industry category not
otherwise subject to the requirements of such paragraph. The percentage
applicable to any such requirement shall be determined in accordance with
paragraph (2).</text>
</paragraph></subsection><subsection id="HCB6120ED0695457DBC60A3E284FFF06F"><enum>(e)</enum><header>Definitions</header><text>In
this section, the following definitions apply:</text>
<paragraph id="HE7724F3446B54707A04D84A5D19CAD8C"><enum>(1)</enum><header>Covered small business
concern</header><text>The term <term>covered small business concern</term>
means a business concern that—</text>
<subparagraph id="HD9E368A74CD8451C81F99183BC7EB005"><enum>(A)</enum><text>with respect to a
contract awarded under section 8(a), is a small business concern eligible to
receive contracts under that section;</text>
</subparagraph><subparagraph id="HFD94DD7628234AF9B47CFF12E558387C"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to a contract awarded under
section 8(m)—</text>
<clause id="H247366C2B6964622A043634A5C688C28"><enum>(i)</enum><text>is a small business
concern owned and controlled by women (as defined in that section); or</text>
</clause><clause id="HE67F804796CA40A08C004D3D5F057D4E"><enum>(ii)</enum><text>is a small business
concern owned and controlled by women (as defined in that section) that is not
less than 51 percent owned by 1 or more women who are economically
disadvantaged (and such ownership is determined without regard to any community
property law);</text>
</clause></subparagraph><subparagraph id="HD5E6F9CF16D34C33B74FD3E9B5FB3733"><enum>(C)</enum><text>with respect to a
contract awarded under section 15(a), is a small business concern;</text>
</subparagraph><subparagraph id="HD96A207F438542D0B94F60BB39798E09"><enum>(D)</enum><text>with respect to a
contract awarded under section 31, is a qualified HUBZone small business
concern; or</text>
</subparagraph><subparagraph id="HF6A3A1D4EA9843D28756EDEE0F0401A0"><enum>(E)</enum><text>with respect to a
contract awarded under section 36, is a small business concern owned and
controlled by service-disabled veterans.</text>
</subparagraph></paragraph><paragraph id="H8E8FFAD4D2E7448AA952A403A6BCF4F1"><enum>(2)</enum><header>Similarly situated
entity</header><text display-inline="yes-display-inline">The term
<term>similarly situated entity</term> means a subcontractor that—</text>
<subparagraph id="H834DFFD6E967449682D0961C088973F7"><enum>(A)</enum><text display-inline="yes-display-inline">if a subcontractor for a small business
concern, is a small business concern;</text>
</subparagraph><subparagraph id="HC82A58CC4AAE4FBDA1ACEEF7E7F3BC4F"><enum>(B)</enum><text display-inline="yes-display-inline">if a subcontractor for a small business
concern eligible to receive contracts under section 8(a), is such a
concern;</text>
</subparagraph><subparagraph id="HB06B7183F8734276B1B201D74535AA8F"><enum>(C)</enum><text display-inline="yes-display-inline">if a subcontractor for a small business
concern owned and controlled by women (as defined in section 8(m)), is such a
concern;</text>
</subparagraph><subparagraph id="H2C63789D5C7A4374A6B3B656374B8875"><enum>(D)</enum><text display-inline="yes-display-inline">if a subcontractor for a small business
concern owned and controlled by women (as defined in section 8(m)) that is not
less than 51 percent owned by 1 or more women who are economically
disadvantaged (and such ownership is determined without regard to any community
property law), is such a concern;</text>
</subparagraph><subparagraph id="H70C33480FF9D482CB094C738FAA04520"><enum>(E)</enum><text display-inline="yes-display-inline">if a subcontractor for a qualified HUBZone
small business concern, is such a concern; or</text>
</subparagraph><subparagraph id="HEB99EA22E5FD40E8824C06AC6B68222E"><enum>(F)</enum><text display-inline="yes-display-inline">if a subcontractor for a small business
concern owned and controlled by service-disabled veterans, is such a
concern.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HD3D412053E6847CE8927A447E5B40888"><enum>102.</enum><header>Penalties</header><text display-inline="no-display-inline">Section 16 of the Small Business Act (15
U.S.C. 645) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="HEB51A57F98AB4C94B4124320260CBB3F" reported-display-style="italic" style="OLC">
<subsection id="H4FEE225D519544359FC7AF5E44A83EBA"><enum>(g)</enum><header>Subcontracting
limitations</header>
<paragraph id="HDE23DE9214DB440A97B638B771DFF2CC"><enum>(1)</enum><header>In
general</header><text>Whoever violates a requirement established under section
45 shall be subject to the penalties prescribed in subsection (d), except that,
for an entity that exceeded a limitation on subcontracting under such section,
the fine described in subsection (d)(2)(A) shall be treated as the greater
of—</text>
<subparagraph commented="no" id="H94324FD92D3343CD8ECAF8DA86188CF8"><enum>(A)</enum><text>$500,000; or</text>
</subparagraph><subparagraph commented="no" id="H76618933B591440DB3CDE95B9FFE3BAE"><enum>(B)</enum><text>the dollar amount
expended, in excess of permitted levels, by the entity on
subcontractors.</text>
</subparagraph></paragraph><paragraph id="HE6BE3688DA7E4A0AB3AE0975FF0B7D5B"><enum>(2)</enum><header>Monitoring</header><text>Not
later than 1 year after the date of enactment of this subsection, the
Administrator shall take such actions as are necessary to ensure that an
existing Federal subcontracting reporting system is modified to notify the
Administrator, the appropriate Director of the Office of Small and
Disadvantaged Business Utilization, and the appropriate contracting officer if
a requirement established under section 45 is
violated.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H280379203DC541B5A7A8D2FBCD5D1037"><enum>103.</enum><header>Conforming
amendments</header>
<subsection id="H629D5FC204E54002865B583F364ECDF0"><enum>(a)</enum><header>HUBZones</header><text display-inline="yes-display-inline">Section 3(p)(5) of the Small Business Act
(15 U.S.C. 632(p)(5)) is amended—</text>
<paragraph id="HDDCA9C4A814C4991BBD783AA454D83C4"><enum>(1)</enum><text>in subparagraph (A)(i) by
striking subclause (III) and inserting the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="HB81F443DC84F4B30928654E2CBDB521D" reported-display-style="italic" style="OLC">
<subclause id="H2D4C8E4CA99247078C44FEEA8A480734"><enum>(III)</enum><text display-inline="yes-display-inline">with respect to any subcontract entered
into by the small business concern pursuant to a contract awarded to the small
business concern under section 31, the small business concern will ensure that
the requirements of section 45 are satisfied;
and</text>
</subclause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE89A552EE4824B0297130D4000A563D4"><enum>(2)</enum><text>by striking subparagraphs
(B) and (C); and</text>
</paragraph><paragraph id="HE75B24B8A28D45208E77CDDC12A1730D"><enum>(3)</enum><text>by redesignating
subparagraph (D) as subparagraph (B).</text>
</paragraph></subsection><subsection id="H4F9D177D04D74348BF6ACC7280348216"><enum>(b)</enum><header>Entities eligible for
contracts under section
<enum-in-header>8(a)</enum-in-header></header><text>Section 8(a) of such Act
(15 U.S.C. 637(a)) is amended by striking paragraph (14) and inserting the
following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H4A0A1B1979564545921B43FE0FB0733E" reported-display-style="italic" style="OLC">
<paragraph id="H5262B1877AF641C885A31F943E575FD5"><enum>(14)</enum><header>Limitations on
subcontracting</header><text display-inline="yes-display-inline">A concern may
not be awarded a contract under this subsection as a small business concern
unless the concern agrees to satisfy the requirements of section
45.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF4C363AA530E452B9735FDF36456A6DD"><enum>(c)</enum><header>Small business
concerns</header><text>Section 15 of such Act (15 U.S.C. 644) is amended by
striking subsection (o) and inserting the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H80C90D4A0D34477BBF3A2B56207B08B5" reported-display-style="italic" style="OLC">
<subsection id="H00CE1E3D455C492D9F23B230B156DFCD"><enum>(o)</enum><header>Limitations on
subcontracting</header><text display-inline="yes-display-inline">A concern may
not be awarded a contract under subsection (a) as a small business concern
unless the concern agrees to satisfy the requirements of section
45.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HD9BFAB3334A24A2287F736BC2BCC5E31"><enum>104.</enum><header>Regulations</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Administrator of the Small Business Administration
shall issue guidance with respect to compliance with the changes made to the
Small Business Act by the amendments in this Act, with opportunities for notice
and comment.</text>
</section><enum>II</enum><header>Subcontracting
plans</header>
<section id="H9355EA5681734C86814A4E069B01D2BD"><enum>201.</enum><header>Subcontracting
plans</header>
<subsection id="H9C1C1A4F39E244ADAFDA8B05AA42477E"><enum>(a)</enum><header>Subcontracting
reporting requirements</header>
<paragraph id="H787485F2B6EE428981A2BDB2872BD3A4"><enum>(1)</enum><header>In
general</header><text>Section 8(d)(6) of the Small Business Act (15 U.S.C.
637(d)(6)) is amended—</text>
<subparagraph id="H75D32344B20C4C84BED8F0AE62042856"><enum>(A)</enum><text>by striking <quote>(6)
Each subcontracting plan</quote> and inserting the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H478CFA60C1534C8FA671B103C622C40A" reported-display-style="italic" style="OLC">
<paragraph id="HAA97E71F4F6246778B4B021D68F724E6"><enum>(6)</enum><header>Subcontracting plan
requirements</header><text display-inline="yes-display-inline">Each
subcontracting
plan</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H2EA45E1CEA1B4F9CB70ED605A803EB0B"><enum>(B)</enum><text>by amending subparagraph
(E) to read as follows:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="HF013A6A51E3547E89493608E436592E9" reported-display-style="italic" style="OLC">
<subparagraph id="H59A9443372794868989F3B826E1AB7B6"><enum>(E)</enum><text display-inline="yes-display-inline">assurances that the offeror or bidder
will—</text>
<clause id="HD4F032A6E28F4A9897257DE602C7E072"><enum>(i)</enum><text>submit—</text>
<subclause id="H0BA4EA03E2034E01A77396EBDDB5D2D2"><enum>(I)</enum><text>not later than 180 days
after the date on which performance under the applicable contract begins, and
every 180 days thereafter until contract performance ends, a report that
describes all subcontracting activities under the contract during the preceding
180-day period;</text>
</subclause><subclause id="H9EF0B7CE5FD1430481EC2F9D73021A54"><enum>(II)</enum><text display-inline="yes-display-inline">not later than 1 year after the date on
which performance under the applicable contract begins, and annually thereafter
until contract performance ends, a report that describes all subcontracting
activities under the contract that have occurred before the date on which the
report is submitted (except that, with respect to the Department of Defense and
the National Aeronautics and Space Administration, a report under this
subclause shall be submitted not later than 180 days after the date on which
contract performance begins and every 180 days thereafter until contract
performance ends); and</text>
</subclause><subclause id="H1F3E94A0404B4B3A992D6C800C7AC2E5"><enum>(III)</enum><text display-inline="yes-display-inline">not later than 30 days after the date on
which performance under the applicable contract ends, a report that describes
all subcontracting activities under the contract; and</text>
</subclause></clause><clause id="H8E4D6ACF19EB4F6789C7DF1EDAD5F065"><enum>(ii)</enum><text display-inline="yes-display-inline">cooperate with any study or survey required
by the applicable Federal agency or the Administration to determine the extent
of compliance by the offeror or bidder with the subcontracting
plan;</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H5638AEE71CC5467ABBF67D96862F1ED3"><enum>(C)</enum><text>by moving the margins for
subparagraphs (A), (B), (C), (D), and (F) 2 ems to the right (so that the align
with subparagraph (E), as amended by subparagraph (B) of this
paragraph).</text>
</subparagraph></paragraph><paragraph id="H9D24025DF43B424482486A748DAA2892"><enum>(2)</enum><header>Reporting system
modification</header>
<subparagraph id="HF6D62FA42239485EAC4662A35087F493"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Administrator of the Small Business Administration shall take such
actions as are necessary to ensure that the Federal subcontracting reporting
system to which covered reports are submitted is modified to notify the
Administrator, the appropriate contracting officer, and the appropriate
Director of Small and Disadvantaged Business Utilization if an entity fails to
submit a required covered report. If the Administrator does not modify the
subcontracting reporting system on or before the date that is 1 year after the
date of enactment of this Act, the Administrator may not carry out or establish
any pilot program until the date the Administrator modifies the reporting
system.</text>
</subparagraph><subparagraph id="HC1CAC360139943B3B4C6C82A2C98D7F1"><enum>(B)</enum><header>Covered report
defined</header><text display-inline="yes-display-inline">In this paragraph,
the term <term>covered report</term> means a report submitted in accordance
with assurances provided under section 8(d)(6)(E) of the Small Business Act (15
U.S.C. 637(d)(6)(E)).</text>
</subparagraph></paragraph></subsection><subsection id="H6300695E009047EAB6D57FC8555A2F4F"><enum>(b)</enum><header>Failure To submit
subcontracting reports as breach of contract</header><text>Section 8(d)(8) of
such Act (15 U.S.C. 637(d)(8)) is amended—</text>
<paragraph id="H15FC4B7B98714B58B8483850D31DD6E9"><enum>(1)</enum><text>by striking <quote>(8)
The failure</quote> and inserting the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="HF13462416E7D42CFAF9A10A8F3BA91EA" reported-display-style="italic" style="OLC">
<paragraph id="H6AC545C76AF54772A728E8FB4BAB7679"><enum>(8)</enum><header>Material
breach</header><text display-inline="yes-display-inline">The
failure</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0739696C054E48009087F63210A4A96B"><enum>(2)</enum><text>in subparagraph (A) by
striking <quote>subsection, or</quote> and inserting
<quote>subsection,</quote>;</text>
</paragraph><paragraph id="H07C0E12DDA414C6688B13F3CF19E21BA"><enum>(3)</enum><text>in subparagraph (B) by
striking <quote>subcontract,</quote> and inserting <quote>subcontract,
or</quote>;</text>
</paragraph><paragraph id="H306F9FD0DBCC4661B85DE3F373395C97"><enum>(4)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H4BD53F873F0B4CFB865D95AACC2E3203" reported-display-style="italic" style="OLC">
<subparagraph id="H4F387C3F17114287B85AD0F4D6F2B2F6"><enum>(C)</enum><text display-inline="yes-display-inline">assurances provided under paragraph
(6)(E),</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9AC46733A3754773AF1758947C80FE1E"><enum>(5)</enum><text>by moving the margins of
subparagraphs (A), (B), and the matter following subparagraph (B) 2 ems to the
right.</text>
</paragraph></subsection><subsection id="H975429B06EC440DABC02960035348DA2"><enum>(c)</enum><header>Authority of Small
Business Administration</header><text display-inline="yes-display-inline">Section 8(d)(10) of such Act (15 U.S.C.
637(d)(10)) is amended—</text>
<paragraph id="HE84BE695A1EF46B38D5AFF75C90AD870"><enum>(1)</enum><text>by striking <quote>(10)
In the case of</quote> and inserting the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H3BF2E2D65169461A90616C31CBF303DD" reported-display-style="italic" style="OLC">
<paragraph id="HA39C8454D0ED45B3B10AF0D5A29AB7A6"><enum>(10)</enum><header>Authority of
Administration</header><text display-inline="yes-display-inline">In the case
of</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3D49EFA9B0D143EAA47D1222D105D68E"><enum>(2)</enum><text>in subparagraph (B) by
striking <quote>, which shall be advisory in nature,</quote>;</text>
</paragraph><paragraph id="HF24740EC8FA24FD2ADAED8ACE27FA04B"><enum>(3)</enum><text>in subparagraph (C) by
striking <quote>, either on a contract-by-contract basis, or in the case
contractors</quote> and inserting <quote>as a supplement to evaluations
performed by the contracting agency, either on a contract-by-contract basis or,
in the case of contractors</quote>; and</text>
</paragraph><paragraph id="H4C90737C88CE48B5AFA6F3F4DF39C98F"><enum>(4)</enum><text>by moving the margins of
subparagraphs (A) through (C) 2 ems to the right.</text>
</paragraph></subsection><subsection id="H7F3C9512165C4785A910B0E51806877D"><enum>(d)</enum><header>Appeals</header><text display-inline="yes-display-inline">Section 8(d) of such Act (15 U.S.C. 637(d))
is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H0155516F71A849BAA9119EA7EFDABABB" reported-display-style="italic" style="OLC">
<paragraph id="H5A86F259DB084F9E82239EEE61FC509C"><enum>(13)</enum><header>Appeals</header>
<subparagraph id="HBBC144E0113B404DBA9E9B0692B4A9CB"><enum>(A)</enum><header>In
general</header><text>If a procurement center representative or commercial
market representative determines that a subcontracting plan required under
paragraph (4) or (5) fails to provide the maximum practicable opportunity for
covered small business concerns to participate in the performance of the
contract to which the plan applies, such representative may delay acceptance of
the plan in accordance with subparagraph (B).</text>
</subparagraph><subparagraph id="HD651B6FB8EB1488F976579761C7B07E2"><enum>(B)</enum><header>Process</header><text display-inline="yes-display-inline">A procurement center representative or
commercial market representative who makes the determination under subparagraph
(A) with respect to a subcontracting plan may delay acceptance of the plan for
a 30-day period by providing written notice of such determination to
appropriate personnel of the contracting agency. Such notice shall include
recommendations for altering the plan to provide the maximum practicable
opportunity described in that subparagraph.</text>
</subparagraph><subparagraph id="H875F9B2F5CD3430F8A4E4B14F6C96A73"><enum>(C)</enum><header>Disagreements</header><text display-inline="yes-display-inline">If a procurement center representative or
commercial market representative delays the acceptance of a subcontracting plan
under subparagraph (B) for a 30-day period and, during such period, does not
reach agreement with appropriate personnel of the contracting agency to alter
the plan to provide the maximum practicable opportunity described in
subparagraph (A), the disagreement shall be submitted to the head of the
contracting agency by the Administrator for a final determination.</text>
</subparagraph><subparagraph id="HDBD67571CBB2494593116DE4B358EBBB"><enum>(D)</enum><header>Covered small business
concerns defined</header><text display-inline="yes-display-inline">In this
paragraph, the term <term>covered small business concerns</term> means small
business concerns, qualified HUBZone small business concerns, small business
concerns owned and controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, small business concerns owned and
controlled by socially and economically disadvantaged individuals, and small
business concerns owned and controlled by
women.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H1A5DF3D55B9D4FEFA878A47BF21167C9"><enum>202.</enum><header>Notices of
subcontracting opportunities</header><text display-inline="no-display-inline">Section 8(k)(1) of the Small Business Act
(15 U.S.C. 637(k)(1)) is amended by striking <quote>in the Commerce Business
Daily</quote> and inserting <quote>on the appropriate Federal Web site (as
determined by the Administrator)</quote>.</text>
</section><section id="H1179F240EB4C4014A47BDC1BC735CA51"><enum>203.</enum><header>Regulations</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Administrator of the Small Business Administration
shall issue guidance with respect to the changes made to the Small Business
Act, with opportunity for notice and comment.</text>
</section><enum>III</enum><header>Insourcing</header>
<section id="HC2F8548418A941CB8AA1DF5072D6C91C"><enum>301.</enum><header>Definitions relating
to procurement protest system</header>
<subsection id="H59EDEBDF25CB42A89A944A19D136BDC2"><enum>(a)</enum><header>Protest</header><text display-inline="yes-display-inline">Section 3551(1) of title 31, United States
Code, is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="HD069557165CE41E698ECDC56763C8F4B" reported-display-style="italic" style="USC">
<subparagraph id="HF8EC6665D21A4560854C3E945107AC76"><enum>(F)</enum><text display-inline="yes-display-inline">Conversion of a function that is being
performed by a small business concern to performance by a Federal
employee.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5E47D0E64B394BF19B6B816DA39AAEF0"><enum>(b)</enum><header>Interested
party</header><text>Section 3551(2) of such title is amended—</text>
<paragraph id="HFCEB87E5AF124F6886D86C50A82B4E3B"><enum>(1)</enum><text>in subparagraph (A) by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H00469B8EC8D34647B91F311F64A330C0"><enum>(2)</enum><text>in subparagraph (B) by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="HBA9B46C404F348D7813C259ECF79D0BA"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H3E0CD36CC5B5426A930E5BC008DBFEAF" reported-display-style="italic" style="USC">
<subparagraph id="HBA13EDA834624C40956703C0FFF5AF43"><enum>(C)</enum><text display-inline="yes-display-inline">with respect to a conversion described in
paragraph (1)(F), means a small business concern (as that term is defined in
section 3(a) of the Small Business Act) whose economic interest would be
affected by the
conversion.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H21CE89DC1C7043DFAF7D52A4E02ACA61"><enum>302.</enum><header>Insourcing</header><text display-inline="no-display-inline">The Small Business Act (15 U.S.C. 631 et
seq.), as amended by this Act, is further amended by inserting after section 45
the following:</text>
<quoted-block changed="added" committee-id="HSM00" display-inline="no-display-inline" id="H481BC5003D30483A96CE1837C6009F74" reported-display-style="italic" style="OLC">
<section id="HC3D9DD451FBC46A993D4D6FC64B386B7"><enum>46.</enum><header>Insourcing</header><text display-inline="no-display-inline">A Federal agency may only convert a function
that is being performed by a small business concern to performance by a Federal
employee if—</text>
<paragraph id="HBCB6193EB4E2466EA6B10C95A4B075DA"><enum>(1)</enum><text display-inline="yes-display-inline">the agency has made publicly available,
after providing notice and an opportunity for public comment, the procedures of
the agency with respect to decisions to convert a function being performed by a
small business concern to performance by a Federal employee; and</text>
</paragraph><paragraph id="HC07139C8D5DE453782DEF571534CD0B2"><enum>(2)</enum><text display-inline="yes-display-inline">the procedures described in paragraph (1)
include that all decisions described in such paragraph are reviewed by any
appropriate—</text>
<subparagraph id="H5A6C7E52E5C94300859AB7BBCF953A82"><enum>(A)</enum><text>Office of Small and
Disadvantaged Business Utilization; and</text>
</subparagraph><subparagraph id="HFED5FA44D20C4D2F90E304CC7ADEC3B1"><enum>(B)</enum><text>procurement center
representative.</text>
</subparagraph></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section>
December 27, 2012
Reported from the
Committee on Small
Business with an amendment
December 27, 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