[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 227 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 227
To amend the Small Business Act to specify what credit is given for
certain subcontractors and to provide a dispute process for non-payment
to subcontractors, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2019
Ms. Velazquez (for herself and Mr. Kelly of Mississippi) introduced the
following bill; which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to specify what credit is given for
certain subcontractors and to provide a dispute process for non-payment
to subcontractors, 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 ``Incentivizing Fairness in
Subcontracting Act''.
SEC. 2. SMALL BUSINESS LOWER-TIER SUBCONTRACTING.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is
amended--
(1) by amending paragraph (16) to read as follows:
``(16) Credit for certain small business concern
subcontractors.--
``(A) In general.--For purposes of determining
whether or not a prime contractor has attained the
percentage goals specified in paragraph (6)--
``(i) if the subcontracting goals pertain
only to a single contract with the Federal
agency, the prime contractor may elect to
receive credit for small business concerns
performing as first tier subcontractors or
subcontractors at any tier pursuant to the
subcontracting plans required under paragraph
(6)(D) in an amount equal to the total dollar
value of any subcontracts awarded to such small
business concerns; and
``(ii) if the subcontracting goals pertain
to more than one contract with one or more
Federal agencies, or to one contract with more
than one Federal agency, the prime contractor
may only receive credit for first tier
subcontractors that are small business
concerns.
``(B) Collection and review of data on
subcontracting plans.--The head of each contracting
agency shall ensure that--
``(i) the agency collects and reports data
on the extent to which contractors of the
agency meet the goals and objectives set forth
in subcontracting plans submitted pursuant to
this subsection; and
``(ii) the agency periodically reviews data
collected and reported pursuant to subparagraph
(A) for the purpose of ensuring that such
contractors comply in good faith with the
requirements of this subsection and
subcontracting plans submitted by the
contractors pursuant to this subsection.
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to allow a Federal agency
to establish a goaling requirement for lower-tier
subcontractors of a prime contractor that is eligible
to receive lower-tier subcontracting credit under this
paragraph''; and
(2) by adding at the end the following:
``(18) Dispute process for non-payment to subcontractors.--
``(A) Notice to agency.--With respect to a contract
with a Federal agency, a subcontractor of a prime
contractor on such contract may, if the subcontractor
has not received payment for performance on such
contract within 30 days of the completion of such
performance, notify the Office of Small and
Disadvantaged Business Utilization (`OSDBU') of the
Federal agency and the prime contractor of such lack of
payment, if such notice is provided to the agency
within the 15-day period following the end of such 30
days.
``(B) Agency determination.--
``(i) In general.--Upon receipt of a notice
described under subparagraph (A), the OSDBU
shall verify whether such lack of payment has
occurred and determine whether such lack of
payment is due to an undue restriction placed
on the prime contractor by an action of the
Federal agency.
``(ii) Response during determination.--
During the period in which the OSDBU is making
the determination under clause (i), the prime
contractor may respond to both the
subcontractor and the OSDBU with relevant
verifying documentation to either prove payment
or allowable status of nonpayment.
``(C) Cure period.--If the OSDBU verifies the lack
of payment under subparagraph (B) and determines that
such lack of payment is not due to an action of the
Federal agency, the OSDBU shall notify the prime
contractor and provide the prime contractor with a 15-
day period in which the prime contractor may make the
payment owed to the subcontractor.
``(D) Result of nonpayment.--If, after notifying
the prime contractor under subparagraph (C), the OSDBU
determines that the prime contractor has not fully paid
the amount owed within the 15-day cure period described
under subparagraph (C), the OSDBU shall ensure that
such failure to pay is reflected in the Contractor
Performance Assessment Reporting system (or any
successor system).''.
SEC. 3. MAINTENANCE OF RECORDS WITH RESPECT TO CREDIT UNDER A
SUBCONTRACTING PLAN.
Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is
amended--
(1) by redesignating subparagraphs (G) and (H) as
subparagraphs (H) and (I), respectively (and conforming the
margins accordingly); and
(2) by inserting after subparagraph (F) the following:
``(G) a recitation of the types of records the successful
offeror or bidder will maintain to demonstrate that procedures
have been adopted to substantiate the credit the successful
offeror or bidder will elect to receive under paragraph
(16)(A)(i);''.
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