[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1481 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1481

   To amend the Small Business Act to strengthen the small business 
                industrial base, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2015

  Mr. Chabot introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
   To amend the Small Business Act to strengthen the small business 
                industrial base, 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 Contractors 
Improve Competition Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--GOALING FOR SMALL BUSINESS CONCERNS

Sec. 101. Amendment to Governmentwide goal for small business 
                            participation in procurement contracts.
Sec. 102. Including subcontracting goals in agency responsibilities.
Sec. 103. Scorecard program for evaluating Federal agency compliance 
                            with small business contracting goals.
 TITLE II--BUNDLING AND CONSOLIDATION OF CONTRACTING REQUIREMENTS FOR 
                        SMALL BUSINESS CONCERNS

Sec. 201. Data quality improvement.
Sec. 202. Notice and justification requirements for bundling or 
                            consolidation of contract requirements.
  TITLE III--ENHANCING COMPETITION IN CONTRACTING FOR SMALL BUSINESS 
                                CONCERNS

Sec. 301. Joint venturing and teaming.
Sec. 302. Limitations on reverse auctions.
Sec. 303. Revision to the nonmanufacturer rule.
           TITLE IV--SMALL BUSINESS ACT PERSONNEL AMENDMENTS

Sec. 401. Establishment of an Office of Hearings and Appeals in the 
                            Small Business Administration.
Sec. 402. Training requirements for Procurement Center Representatives.
Sec. 403. Training requirements for Business Opportunity Specialists.
          TITLE V--SIZE STANDARDS FOR SMALL BUSINESS CONCERNS

Sec. 501. Petitions for reconsideration of size standards for small 
                            business concerns.

              TITLE I--GOALING FOR SMALL BUSINESS CONCERNS

SEC. 101. AMENDMENT TO GOVERNMENTWIDE GOAL FOR SMALL BUSINESS 
              PARTICIPATION IN PROCUREMENT CONTRACTS.

    Section 15(g)(1)(A)(i) of the Small Business Act (15 U.S.C. 
644(g)(1)(A)(i) is amended by adding at the end the following: ``In 
meeting this goal, the Government shall ensure the participation of 
small business concerns from a wide variety of industries and from a 
broad spectrum of small business concerns within each industry.''

SEC. 102. INCLUDING SUBCONTRACTING GOALS IN AGENCY RESPONSIBILITIES.

    Section 1633(b) of the National Defense Authorization Act for 
Fiscal Year 2013 (Public Law 112-239; 126 Stat. 2076; 15 U.S.C. 631 
note) is amended by striking ``assume responsibility for of the 
agency's success in achieving small business contracting goals and 
percentages'' and inserting ``assume responsibility for the agency's 
success in achieving each of the small business prime contracting and 
subcontracting goals and percentages''.

SEC. 103. SCORECARD PROGRAM FOR EVALUATING FEDERAL AGENCY COMPLIANCE 
              WITH SMALL BUSINESS CONTRACTING GOALS.

    (a) Establishment.--
            (1) In general.--Not later than September 30, 2016, the 
        Administrator of the Small Business Administration, in 
        consultation with the Federal agencies, shall--
                    (A) develop a methodology for calculating a score 
                to be used to evaluate the compliance of each Federal 
                agency with meeting the goals established pursuant to 
                section 15(g)(1)(B) of the Small Business Act (15 
                U.S.C. 644(g)(1)(B)); and
                    (B) develop a scorecard based on such methodology.
            (2) Agency annual goal.--In developing the methodology for 
        calculating a score described in paragraph (1)(A), the 
        Administrator shall consider each annual goal established by 
        each Federal agency pursuant to section 15(g)(1)(B) of the 
        Small Business Act (15 U.S.C. 644(g)(1)(B)).
            (3) Use of scorecard.--Beginning in fiscal year 2017, the 
        Administrator shall establish and carry out a program to use 
        the scorecard developed under paragraph (1) to evaluate whether 
        each Federal agency is creating the maximum practicable 
        opportunities for the award of prime contracts and subcontracts 
        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, by assigning a score to each Federal agency. If the 
        Administrator fails to establish and carry out this program 
        before the end of fiscal year 2017, the Administrator may not 
        exercise the authority under section 7(a)(25)(A) until such 
        time as the program is implemented.
            (4) Contents of scorecard.--The scorecard developed under 
        paragraph (1) shall include, for each Federal agency, the 
        following information:
                    (A) A determination of whether the Federal agency 
                met the each of the prime contract goals established 
                pursuant to section 15(g)(1)(B) of the Small Business 
                Act (15 U.S.C. 644(g)(1)(B)) with respect 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) A determination of whether the Federal agency 
                met the each of the subcontract goals established 
                pursuant to section 15(g)(1)(B) of the Small Business 
                Act (15 U.S.C. 644(g)(1)(B)) with respect 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.
                    (C) The number of 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 awarded prime contracts in each North American 
                Industrial Classification System code during the fiscal 
                year and a comparison to the number awarded contracts 
                during the prior fiscal year, if available.
                    (D) The number of 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 awarded subcontracts in each North American 
                Industrial Classification System code during the fiscal 
                year and a comparison to the number awarded contracts 
                during the prior fiscal year, if available.
                    (E) Any other factors that the Administrator deems 
                important to achieve the maximum practicable 
                utilization of 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.
            (5) Weighted factors.--In using the scorecard to evaluate 
        and assign a score to a Federal agency, the Administrator shall 
        base--
                    (A) Fifty percent of the score on the dollar value 
                of prime contracts described in paragraph (4)(A); and
                    (B) Fifty percent of the score on the information 
                provided in subparagraphs (B) through (E) of paragraph 
                (4), weighted in a manner determined by the 
                Administrator to encourage the maximum practicable 
                opportunity for the award of prime contracts and 
                subcontracts 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.
            (6) Publication.--The scorecard used by the Administrator 
        under this section shall be submitted to the President and 
        Congress along with the report submitted under section 15(h)(2) 
        of the Small Business Act (15 U.S.C. 644(h)(2)).
            (7) Report.--After the Administrator submits the scorecard 
        for fiscal year 2018, but not later than March 31, 2019, the 
        Administrator shall report to the Committee on Small Business 
        of the House of Representatives and the Committee on Small 
        Business and Entrepreneurship of the Senate. Such report shall 
        include the following:
                    (A) Any increase in the dollar amount of prime 
                contracts and subcontracts 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) Any increase in the dollar amount of prime 
                contracts and subcontracts 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 each North American Industrial 
                Classification System code.
                    (C) Any increase to the number of 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 receiving contracts in each North 
                American Industrial Classification System code.
                    (D) The recommendation of the Administrator on 
                continuing, modifying, expanding, or terminating the 
                program established under this section.
            (8) GAO report on scorecard methodology.--Not later than 
        September 30, 2018, the Comptroller General of the United 
        States shall submit to the Committee on Small Business of the 
        House of Representatives and the Committee on Small Business 
        and Entrepreneurship of the Senate a report that--
                    (A) evaluates whether the methodology used to 
                calculate a score under this section accurately and 
                effectively--
                            (i) measures the compliance of each Federal 
                        agency with meeting the goals established 
                        pursuant to section 15(g)(1)(B) of the Small 
                        Business Act (15 U.S.C. 644(g)(1)(B)); and
                            (ii) encourages Federal agencies to expand 
                        opportunities for 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 to compete for and win Federal 
                        procurement contracts across North American 
                        Industrial Classification System Codes; and
                    (B) if warranted, makes recommendations on how to 
                improve such methodology to improve its accuracy and 
                effectiveness.
            (9) Definitions.--In this subsection:
                    (A) Administrator.--The term ``Administrator'' 
                means the Administrator of the Small Business 
                Administration.
                    (B) Federal agency.--The term ``Federal agency'' 
                has the meaning given the term ``agency'' by section 
                551(1) of title 5, United States Code, but does not 
                include the United States Postal Service or the 
                Government Accountability Office.
                    (C) Scorecard.--The term ``scorecard'' shall mean 
                any summary using a rating system to evaluate a Federal 
                agency's efforts to meet goals established under 
                section 15(g)(1)(B) of the Small Business Act (15 
                U.S.C. 644(g)(1)(B)) that--
                            (i) includes the measures described in 
                        paragraph (4); and
                            (ii) assigns a score to each Federal agency 
                        evaluated.
                    (D) Small business act definitions.--
                            (i) In general.--The terms ``small business 
                        concern'', ``small business concern owned and 
                        controlled by service-disabled veterans'', 
                        ``qualified HUBZone small business concern'', 
                        and ``small business concern owned and 
                        controlled by women'' shall have the meanings 
                        given such terms under section 3 of the Small 
                        Business Act (15 U.S.C. 632).
                            (ii) Small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals.--The term ``small 
                        business concern owned and controlled by 
                        socially and economically disadvantaged 
                        individuals'' has the meaning given that term 
                        under section 8(d)(3)(C) of the Small Business 
                        Act (15 U.S.C. 637(d)(3)(C)).

 TITLE II--BUNDLING AND CONSOLIDATION OF CONTRACTING REQUIREMENTS FOR 
                        SMALL BUSINESS CONCERNS

SEC. 201. DATA QUALITY IMPROVEMENT.

    (a) In General.--Section 15(s) of the Small Business Act (15. 
U.S.C. 644(s)) is amended--
            (1) by redesignating paragraph (4) as paragraph (6); and
            (2) by inserting after paragraph (3) the following new 
        paragraphs:
            ``(4) Implementation.--Not later than the first day of 
        fiscal year 2017, the Administrator of the Small Business 
        Administration shall implement the plan described in this 
        subsection. If the Administrator fails to implement the plan by 
        such date, the Administrator may not exercise the authority 
        under section 7(a)(25)(A) until the plan is implemented.
            ``(5) Certification.--The Administrator shall annually 
        provide to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate certification of the accuracy 
        and completeness of data reported on bundled and consolidated 
        contracts.''.
    (b) GAO Study.--
            (1) Study.--Not later than the first day of fiscal year 
        2018, the Comptroller General of the United States shall 
        initiate a study on the effectiveness of the plan described in 
        section 15(s) of the Small Business Act (15 U.S.C. 644(s)) that 
        shall assess whether contracts were accurately labeled as 
        bundled or consolidated.
            (2) Contracts evaluated.--For the purposes of conducting 
        the study described in paragraph (1), the Comptroller General 
        of the United States--
                    (A) shall evaluate, for work in each of sectors 23, 
                33, 54, and 56 (as defined by the North American 
                Industry Classification System), not fewer than 100 
                contracts in each sector;
                    (B) shall evaluate only those contracts--
                            (i) awarded by an agency listed in section 
                        901(b) of title 31, United States Code; and
                            (ii) that have a Base and Exercised Options 
                        Value, an Action Obligation, or a Base and All 
                        Options Value (as such terms are defined in the 
                        Federal procurement data system described in 
                        section 1222(a)(4)(A) of title 41, United 
                        States Code, or any successor system); and
                    (C) shall not evaluate contracts that have used any 
                set aside authority.
            (3) Report.--Not later than 12 months after initiating the 
        study required by paragraph (1), the Comptroller General of the 
        United States shall report to the Committee on Small Business 
        of the House of Representatives and the Committee on Small 
        Business and Entrepreneurship of the Senate on the results from 
        such study and, if warranted, any recommendations on how to 
        improve the quality of data reported on bundled and 
        consolidated contracts.

SEC. 202. NOTICE AND JUSTIFICATION REQUIREMENTS FOR BUNDLING OR 
              CONSOLIDATION OF CONTRACT REQUIREMENTS.

    (a) Notice of Contract Consolidation for Acquisition Strategies.--
Section 44(c)(2) of the Small Business Act (15 U.S.C. 657q(c)(2)) is 
amended by adding at the end the following:
                    ``(C) Notice.--Not later than 7 days after making a 
                determination that an acquisition strategy involving a 
                consolidation of contract requirements is necessary and 
                justified under subparagraph (A), the senior 
                procurement executive or Chief Acquisition Officer 
                shall publish a notice on a public website that such 
                determination has been made. Any solicitation for a 
                procurement related to the acquisition strategy may not 
                be published earlier than 7 days after such notice is 
                published. Along with the publication of the 
                solicitation, the senior procurement executive or Chief 
                Acquisition Officer shall publish a justification for 
                the determination, which shall include the information 
                in subparagraphs (A) through (E) of paragraph (1).''.
    (b) Notice of Contract Consolidation for Procurement Strategies.--
Section 15(e)(3) of such Act (15 U.S.C. 644(e)(3)) is amended to read 
as follows:
            ``(3) Strategy specifications.--If the head of a 
        contracting agency determines that an acquisition plan for a 
        procurement involves a substantial bundling of contract 
        requirements, the head of a contracting agency shall publish a 
        notice on a public website that such determination has been 
        made not later than 7 days after making such determination. Any 
        solicitation for a procurement related to the acquisition plan 
        may not be published earlier than 7 days after such notice is 
        published. Along with the publication of the solicitation, the 
        head of a contracting agency shall publish a justification for 
        the determination, which shall include the following 
        information:
                    ``(A) The specific benefits anticipated to be 
                derived from the bundling of contract requirements and 
                a determination that such benefits justify the 
                bundling.
                    ``(B) An identification of any alternative 
                contracting approaches that would involve a lesser 
                degree of bundling of contract requirements.
                    ``(C) An assessment of--
                            ``(i) the specific impediments to 
                        participation by small business concerns as 
                        prime contractors that result from the bundling 
                        of contract requirements; and
                            ``(ii) the specific actions designed to 
                        maximize small business participation as 
                        subcontractors (including suppliers) at various 
                        tiers under the contract or contracts that are 
                        awarded to meet the requirements.''.
    (c) Technical Amendment.--Section 44(c)(1) of such Act (15 U.S.C. 
657q(c)(1)) is amended by striking ``Subject to paragraph (4), the 
head'' and inserting ``The head''.

  TITLE III--ENHANCING COMPETITION IN CONTRACTING FOR SMALL BUSINESS 
                                CONCERNS

SEC. 301. JOINT VENTURING AND TEAMING.

    (a) Joint Venture Offers for Bundled or Consolidated Contracts.--
Section 15(e)(4) of the Small Business Act (15 U.S.C. 644(e)(4)) is 
amended to read as follows:
            ``(4) Contract teaming.--
                    ``(A) In general.--In the case of a solicitation of 
                offers for a bundled or consolidated contract that is 
                issued by the head of an agency, a small business 
                concern may submit an offer that provides for use of a 
                particular team of subcontractors or a joint venture of 
                small business concerns for the performance of the 
                contract.
                    ``(B) Evaluation of offers.--The head of the agency 
                shall evaluate the offer of a team or a joint venture 
                of small business concerns in the same manner as other 
                offers, with due consideration to the capabilities of 
                all of the proposed subcontractors or members of the 
                joint venture as follows:
                            ``(i) Teams.--When evaluating an offer of a 
                        small business prime contractor whose offer 
                        includes a proposed team of small business 
                        subcontractors, the head of the agency shall 
                        consider the capabilities and past performance 
                        of each first tier subcontractor that is part 
                        of the team as the capabilities and past 
                        performance of the team.
                            ``(ii) Joint ventures.--When evaluating an 
                        offer of a joint venture of small business 
                        concerns, if the joint venture does not have 
                        sufficient capabilities or past performance to 
                        be considered for award of a contract 
                        opportunity, the head of the agency shall 
                        consider the capabilities and past performance 
                        of each member of the joint venture as the 
                        capabilities past performance of the joint 
                        venture.
                    ``(C) Status as a small business concern.--
                Participation of a small business concern in a team or 
                a joint venture under this paragraph shall not affect 
                the status of that concern as a small business concern 
                for any other purpose.''.
    (b) Team and Joint Ventures Offers for Multiple Award Contracts.--
Section 15(q)(1) of such Act (15 U.S.C. 644(q)(1)) is amended--
            (1) in the heading, by inserting ``and joint venture'' 
        before ``requirements'';
            (2) by striking ``Each Federal agency'' and inserting the 
        following:
                    ``(A) In general.--Each Federal agency''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Teams.--When evaluating an offer of a small 
                business prime contractor whose offer includes a 
                proposed team of small business subcontractors for any 
                multiple award contract above the substantial bundling 
                threshold of the Federal agency, the head of the agency 
                shall consider the capabilities and past performance of 
                each first tier subcontractor that is part of the team 
                as the capabilities and past performance of the 
                offeror.
                    ``(C) Joint ventures.--When evaluating an offer of 
                a joint venture of small business concerns for any 
                multiple award contract above the substantial bundling 
                threshold of the Federal agency, if the joint venture 
                does not have sufficient capabilities or past 
                performance to be considered for award of a contract 
                opportunity, the head of the agency shall consider the 
                capabilities and past performance of each member of the 
                joint venture as the capabilities and past performance 
                of the joint venture.''.
    (c) Rulemaking.--Not later than 1 year after the date of enactment 
of this section, the Administrator of the Small Business Administration 
shall issue any regulations necessary to carry out the amendments made 
by this section.

SEC. 302. LIMITATIONS ON REVERSE AUCTIONS.

    (a) Sense of Congress.--It is the sense of Congress that, when used 
appropriately, reverse auctions may improve the Federal Government's 
procurement of commercially available commodities by increasing 
competition, reducing prices, and improving opportunities for small 
businesses.
    (b) Limitations on Reverse Auctions.--The Small Business Act (15 
U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 47 (15 U.S.C. 631 note) as 
        section 48; and
            (2) by inserting after section 46 the following new 
        section:

``SEC. 47. LIMITATIONS ON REVERSE AUCTIONS.

    ``(a) Prohibition on Using Reverse Auctions for Covered 
Contracts.--In the case of a covered contract described in subsection 
(c), reverse auction methods may not be used if the award of the 
contract is to be made under--
            ``(1) section 8(a);
            ``(2) section 8(m);
            ``(3) section 15(a);
            ``(4) section 15(j);
            ``(5) section 31; or
            ``(6) section 36.
    ``(b) Limitations on Using Reverse Auctions.--In the case of the 
award of a contract made under paragraphs (1) through (6) of subsection 
(a) that is not a covered contract, reverse auction methods may be used 
pursuant to the following:
            ``(1) Decisions regarding use of a reverse auction.--The 
        following decisions are the responsibility of the contracting 
        officer and may not be delegated to any person except for 
        another contracting officer who meets the training requirements 
        of paragraph (2):
                    ``(A) A decision to use reverse auction methods as 
                part of the competition for award of a contract.
                    ``(B) Any decision made after the decision 
                described in subsection (A) regarding the appropriate 
                evaluation criteria, the inclusion of vendors, the 
                acceptability of vendor submissions (including 
                decisions regarding timeliness), and the selection of 
                the winner.
            ``(2) Training required.--Only a contracting officer who 
        has received training on the appropriate use and supervision of 
        reverse auction methods of contracting may supervise or use 
        such methods in a procurement for a contract. The training 
        shall be provided by, or similar to the training provided by, 
        the Defense Acquisition University as described in section 824 
        of the Carl Levin and Howard P. `Buck' McKeon National Defense 
        Authorization Act for Fiscal Year 2015 (Public Law 113-291).
            ``(3) Number of offers; revisions to bids.--A Federal 
        agency may not award a contract using a reverse auction method 
        if only one offer is received or if offerors do not have the 
        ability to submit revised bids with lower prices throughout the 
        course of the auction.
            ``(4) Technically acceptable offers.--A Federal agency 
        awarding a contract using a reverse auction method shall 
        evaluate the technical acceptability of offers only as 
        technically acceptable or unacceptable.
            ``(5) Use of price rankings.--A Federal agency may not 
        award a contract using a reverse auction method if at any time 
        during the award process the Federal agency misinforms an 
        offeror about the price ranking of the offeror's last offer 
        submitted in relation to offers submitted by other offerors.
            ``(6) Use of third-party agents.--If a Federal agency uses 
        a third party agent to assist with the award of contracts using 
        a reverse auction method, the Federal agency shall ensure 
        that--
                    ``(A) inherently governmental functions (as such 
                term is used in section 2303 of title 41, United States 
                Code) are not performed by private contractors, 
                including by the third party agent;
                    ``(B) information on the past contract performance 
                of offerors created by the third party agent and shared 
                with the Federal agency is collected, maintained, and 
                shared in compliance with section 1126 of title 41, 
                United States Code;
                    ``(C) information on whether an offeror is a 
                responsible source (as defined in section 113 of title 
                41, United States Code) that is created by the third 
                party agent and shared with the Federal agency is 
                shared with the offeror and complies with section 
                8(b)(7) of this Act; and
                    ``(D) disputes between the third party agent and an 
                offeror may not be used to justify a determination that 
                an offeror is not a responsible source (as defined in 
                section 113 of title 41, United States Code) or to 
                otherwise restrict the ability of an offeror to compete 
                for the award of a contract or task or delivery order.
    ``(c) Definitions.--In this section:
            ``(1) Contracting officer.--The term `contracting officer' 
        has the meaning given that term in section 2101(1) of title 41, 
        United States Code.
            ``(2) Covered contract.--The term `covered contract' means 
        a contract--
                    ``(A) for design and construction services;
                    ``(B) for goods purchased to protect Federal 
                employees, members of the Armed Forces, or civilians 
                from bodily harm; or
                    ``(C) for goods or services other than those goods 
                or services described in subparagraph (A) or (B)--
                            ``(i) to be awarded based on factors other 
                        than price and technical responsibility; or
                            ``(ii) if awarding the contract requires 
                        the contracting officer to conduct discussions 
                        with the offerors about their offer.
            ``(3) Design and construction services.--The term `design 
        and construction services' means--
                    ``(A) site planning and landscape design;
                    ``(B) architectural and interior design;
                    ``(C) engineering system design;
                    ``(D) performance of construction work for 
                facility, infrastructure, and environmental restoration 
                projects;
                    ``(E) delivery and supply of construction materials 
                to construction sites;
                    ``(F) construction, alteration, or repair, 
                including painting and decorating, of public buildings 
                and public works; and
                    ``(G) architectural and engineering services as 
                defined in section 1102 of title 40, United States 
                Code.
            ``(4) Reverse auction.--The term `reverse auction' means, 
        with respect to procurement by an agency, an auction between a 
        group of offerors who compete against each other by submitting 
        offers for a contract or task or delivery order with the 
        ability to submit revised offers with lower prices throughout 
        the course of the auction.''.

SEC. 303. REVISION TO THE NONMANUFACTURER RULE.

    (a) Procurement Contracts.--Section 8(a)(17) of the Small Business 
Act (15 U.S.C. 637(a)(17)) is amended--
            (1) in subparagraph (A), by striking ``any procurement 
        contract'' and all that follows through ``section 15'' and 
        inserting ``any procurement contract, which contract has as its 
        principal purpose the supply of a product to be let pursuant to 
        this subsection or subsection (m), or section 15(a), 31, or 
        36,''; and
            (2) by adding at the end the following new subparagraph:
            ``(C) Limitation.--This paragraph shall not apply to a 
        contract that has as its principal purpose the acquisition of 
        services or construction.''.
    (b) Subcontractor Contracts.--Section 46(a)(4) of such Act (15 
U.S.C. 657s(a)(4)) is amended by striking ``for supplies from a regular 
dealer in such supplies'' and inserting ``which is principally for 
supplies from a regular dealer in such supplies, and which is not a 
contract principally for services or construction,''.

           TITLE IV--SMALL BUSINESS ACT PERSONNEL AMENDMENTS

SEC. 401. ESTABLISHMENT OF AN OFFICE OF HEARINGS AND APPEALS IN THE 
              SMALL BUSINESS ADMINISTRATION.

    (a) Establishment of an Office of Hearings and Appeals in the Small 
Business Administration.--Section 5 of the Small Business Act (15 
U.S.C. 634) is amended by adding at the end the following new 
subsection:
    ``(i) Office of Hearings and Appeals.--
            ``(1) Establishment.--
                    ``(A) Office.--There is established in the 
                Administration an Office of Hearings and Appeals--
                            ``(i) to impartially decide matters 
                        relating to program decisions of the 
                        Administrator--
                                    ``(I) for which Congress requires a 
                                hearing on the record; or
                                    ``(II) that the Administrator 
                                designates for hearing by regulation; 
                                and
                            ``(ii) which shall contain the office of 
                        the Administration that handles requests 
                        submitted pursuant to sections 552 of title 5, 
                        United States Code (commonly referred to as the 
                        `Freedom of Information Act') and maintains 
                        records pursuant to section 552a of title 5, 
                        United States Code (commonly referred to as the 
                        `Privacy Act of 1974').
                    ``(B) Jurisdiction.--The Office of Hearings and 
                Appeals shall only hear appeals of matters as described 
                in the this Act, the Small Business Investment Act of 
                1958 (15 U.S.C. 661 et seq.), and title 13 of the Code 
                of Federal Regulations.
                    ``(C) Associate administrator.--The head of the 
                Office of Hearings and Appeals shall be the Chief 
                Hearing Officer appointed under section 4(b)(1), who 
                shall be responsible to the Administrator.
            ``(2) Chief hearing officer duties.--
                    ``(A) In general.--The Chief Hearing Officer 
                shall--
                            ``(i) be a career appointee in the Senior 
                        Executive Service and an attorney licensed by a 
                        State, commonwealth, territory or possession of 
                        the United States, or the District of Columbia; 
                        and
                            ``(ii) be responsible for the operation and 
                        management of the Office of Hearings and 
                        Appeals.
                    ``(B) Alternative dispute resolution.--The Chief 
                Hearing Officer may assign a matter for mediation or 
                other means of alternative dispute resolution.
            ``(3) Hearing officers.--
                    ``(A) In general.--The Office of Hearings and 
                Appeals shall appoint Hearing Officers to carry out the 
                duties described in paragraph (1)(A)(i).
                    ``(B) Conditions of employment.--A Hearing Officer 
                appointed under this paragraph--
                            ``(i) shall serve in the excepted service 
                        as an employee of the Administration under 
                        section 2103 of title 5, United States Code, 
                        and under the supervision of the Chief Hearing 
                        Officer;
                            ``(ii) shall be classified at a position to 
                        which section 5376 of title 5, United States 
                        Code, applies; and
                            ``(iii) shall be compensated at a rate not 
                        exceeding the maximum rate payable under such 
                        section.
                    ``(C) Authority; powers.--Notwithstanding section 
                556(b) of title 5, United States Code, a Hearing 
                Officer--
                            ``(i) shall have the authority to hear 
                        claims arising under section 554 of such title;
                            ``(ii) shall have the powers described in 
                        section 556(c) of such title; and
                            ``(iii) shall conduct hearings and issue 
                        decisions in the manner described under 
                        sections 555, 556, and 557 of such title, as 
                        applicable.
                    ``(D) Treatment of current personnel.--An 
                individual serving as a Judge in the Office of Hearings 
                and Appeals (as that position and office are designated 
                in section 134.101 of title 13, Code of Federal 
                Regulations) on the effective date of this subsection 
                shall be considered as qualified to be and redesignated 
                as a Hearing Officer.
            ``(4) Hearing officer defined.--In this subsection, the 
        term `Hearing Officer' means an individual appointed or 
        redesignated under this subsection who is an attorney licensed 
        by a State, commonwealth, territory or possession of the United 
        States, or the District of Columbia.''.
    (b) Associate Administrator as Chief Hearing Officer.--Section 
4(b)(1) of such Act (15 U.S.C. 633(b)) is amended by adding at the end 
the following: ``One such Associate Administrator shall be the Chief 
Hearing Officer, who shall administer the Office of Hearings and 
Appeals established under section 5(i).''.
    (c) Repeal of Regulation.--Section 134.102(t) of title 13, Code of 
Federal Regulations, as in effect on January 1, 2015 (relating to types 
of hearings within the jurisdiction of the Office of Hearings and 
Appeals) shall have no force or effect.

SEC. 402. TRAINING REQUIREMENTS FOR PROCUREMENT CENTER REPRESENTATIVES.

    Section 15(l)(5)(A)(iii) of the Small Business Act (15 U.S.C. 
644(l)(5)(A)(iii)) is amended by striking ``except that'' and all that 
follows through the period at the end and inserting the following: 
``except that--
                                    ``(I) any person serving in such a 
                                position on or before January 3, 2013, 
                                may continue to serve in that position 
                                for a period of 5 years without the 
                                required certification; and
                                    ``(II) any person hired for such 
                                position after January 3, 2013, may 
                                have up to one calendar year from the 
                                date of employment to obtain the 
                                required certification.''.

SECTION 403. TRAINING REQUIREMENTS FOR BUSINESS OPPORTUNITY 
              SPECIALISTS.

    (a) In General.--Section 4 of the Small Business Act (15 U.S.C. 
633) is amended by adding at the end the following new subsection:
    ``(g) Certification Requirements Business Opportunity 
Specialists.--A Business Opportunity Specialist described under section 
7(j)(10)(D) shall have a Level I Federal Acquisition Certification in 
Contracting (or any successor certification) or the equivalent 
Department of Defense certification, except that--
            ``(1) a Business Opportunity Specialist who was serving on 
        or before January 3, 2013, may continue to serve as a Business 
        Opportunity Specialist for a period of 5 years beginning on 
        such date without such a certification; and
            ``(2) any person hired as a Business Opportunity Specialist 
        after January 3, 2013, may have up to one calendar year from 
        the date of employment to obtain the required certification.''.
    (b) Conforming Amendment.--Section 7(j)(10)(D)(i) of such Act (15 
U.S.C. 636(j)(10)(D)(i)) is amended by striking the second sentence.

          TITLE V--SIZE STANDARDS FOR SMALL BUSINESS CONCERNS

SEC. 501. PETITIONS FOR RECONSIDERATION OF SIZE STANDARDS FOR SMALL 
              BUSINESS CONCERNS.

    Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
amended by adding at the end the following:
            ``(9) Petitions for reconsideration of size standards.--
                    ``(A) In general.--A person may file a petition for 
                reconsideration with the Office of Hearings and Appeals 
                (as established by section 5(i)) of a size standard 
                revised, modified, or established by the Administrator 
                pursuant to this subsection.
                    ``(B) Time limit.--A person filing a petition for 
                reconsideration described in subparagraph (A) shall 
                file such petition not later than 30 days after the 
                publication in the Federal Register of the notice of 
                final rule to revise, modify, or establish size 
                standards described in paragraph (6).
                    ``(C) Process for agency review.--The Office of 
                Hearings and Appeals shall use the same process it uses 
                to decide challenges to the size of a small business 
                concern to decide a petition for review pursuant to 
                this paragraph.
                    ``(D) Judicial review.--The publication of a final 
                rule in the Federal Register described in subparagraph 
                (B) shall be considered final agency action for 
                purposes of seeking judicial review. Filing a petition 
                for reconsideration under subparagraph (A) shall not be 
                a condition precedent to judicial review of any such 
                size standard.''.
                                 <all>