I 112th CONGRESS 2d Session H. R. 6078 IN THE HOUSE OF REPRESENTATIVES June 29, 2012 Mr. Peters (for himself, Ms. Hahn, Mr. Schrader, Mr. Cicilline, and Mr. Owens) introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to provide for higher goals for procurement contracts awarded to small business concerns, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Contracting Opportunities Expansion Act of 2012.

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)

Government-Wide goals

Paragraph (1) of section 15(g) of such Act (15 U.S.C. 644(g)) is amended to read as follows: (1)

Government-wide goals

The President shall annually establish Government-wide goals for procurement contracts awarded to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUB­Zone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women in accordance with the following: (A)The Government-wide goal for participation by small business concerns shall be established at not less than 26 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 Government-wide 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 Government-wide 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 Government-wide goal for participation by small business concerns owned and controlled by socially and economically disadvantaged individuals shall be established at not less than 6 percent of the total value of all prime contract and at not less than 6 percent of the total value of all subcontract awards for each fiscal year. (E)The Government-wide 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

(i)

In general

The head of each Federal agency shall annually establish, for the agency that individual heads, a goal for procurement contracts awarded to— (I)small business concerns; (II)small business concerns owned and controlled by service-disabled veterans; (III)qualified HUBZone small business concerns; (IV)small business concerns owned and controlled by socially and economically disadvantaged individuals; and (V)small business concerns owned and controlled by women. (ii)

Certain goals derived from prior fiscal year participation rates

For each fiscal year— (I)each goal established under clause (i)(II) shall be not less than the average of the percentage of participation by small business concerns owned and controlled by service-disabled veterans in each of the 3 preceding fiscal years; (II)each goal established under clause (i)(III) shall be not less than the average of the percentage of participation by qualified HUBZone small business concerns in each of the 3 preceding fiscal years; (III)each goal established under clause (i)(IV) shall be not less than the average of the percentage of participation by small business concerns owned and controlled by socially and economically disadvantaged individuals in each of the 3 preceding fiscal years; and (IV)each goal established under clause (i)(V) shall be not less than the average of the percentage of participation by small business concerns owned and controlled by women in each of the 3 preceding fiscal years. (B)

Relationship to Government-wide 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 Government-wide 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 Government-wide 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 paragraph (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 competition in the Contract Act; or (E)whether the contract is subject to the Federal Acquisition Regulation. .

3.

Studies on How to Improve Participation in Federal Contracting by Targeted Groups

(a)

Internal agency processes

Not later than December 31, 2013, the Comptroller General of the United States, in consultation with the Administrator of the Small Business Administration and the Administrator of General Services, shall complete a study and submit a report to Congress on improving internal processes of agencies engaged in contracting or procurement and increasing outreach to those groups that are the subject of contracting goals under section 15(g)(1) of the Small Business Act. (b)

Recommended legislative action

Not later than December 31, 2013, the Comptroller General of the United States, in consultation with the Administrator of the Small Business Administration and the Administrator of General Services, shall complete a study and submit a report to Congress on legislative actions Congress can take to improve participation in contracting by those groups that are the subject of contracting goals under section 15(g)(1) of the Small Business Act. (c)

New Government-Wide goals for certain small businesses

Not later than December 31, 2013, the Comptroller General of the United States, in consultation with the Administrator of the Small Business Administration, the Secretary of Veterans Affairs, and the Administrator of General Services, shall complete a study and submit a report to Congress on the feasibility of the creation of a Government-wide goal for contracting with small business concerns owned and controlled by veterans.

4.

Increase in Government-Wide Goal for all Targeted Groups in 2018

(a)

In general

Section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)), as amended by this Act, is further amended— (1)in subparagraph (A), by striking 26 percent and inserting 27 percent; (2)in subparagraph (C), by striking 3 percent each place it appears and inserting 4 percent; (3)in subparagraph (D), by striking 6 percent each place it appears and inserting 7.5 percent; and (4)in subparagraph (E), by striking 5 percent each place it appears and inserting 6 percent. (b)

Effective date

The amendment made by this section shall take effect beginning on fiscal year 2017.