[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9642 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 9642

To establish a pilot program for transitioning small businesses in the 
    construction or engineering industries, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 21, 2022

 Mr. Barr (for himself, Mr. Crow, and Mr. Luetkemeyer) introduced the 
 following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To establish a pilot program for transitioning small businesses in the 
    construction or engineering industries, 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 ``Solving the Unnecessary Contracting 
Cliff for Enterprises to Scale Successfully Act'' or the ``SUCCESS 
Act''.

SEC. 2. PILOT PROGRAM FOR TRANSITIONING SMALL BUSINESSES IN THE 
              CONSTRUCTION OR ENGINEERING INDUSTRIES.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 32 the following:

``SEC. 33. PILOT PROGRAM FOR TRANSITIONING SMALL BUSINESSES IN THE 
              CONSTRUCTION OR ENGINEERING INDUSTRIES.

    ``(a) Definitions.--In this section:
            ``(1) Eligible concern.--The term `eligible concern' means 
        a concern that has grown to exceed the size standard applicable 
        to the North American Industry Classification System code 
        corresponding to--
                    ``(A) commercial and institutional building 
                construction; or
                    ``(B) engineering services.
            ``(2) Participant.--The term `Participant' means an 
        eligible concern that--
                    ``(A) meets the criteria described in subsection 
                (d); and
                    ``(B) participates in the Program.
            ``(3) Program.--The term `Program' means the pilot program 
        for transitioning small businesses established under paragraph 
        (b).
    ``(b) Establishment.--Not later than 1 year after the date of 
enactment of this section, the Administrator shall promulgate 
regulations establishing a pilot program to foster the continued 
success of eligible concerns by permitting those concerns to qualify as 
small for certain contracts during a transitional period.
    ``(c) Purpose.--The purpose of the Program is to assist eligible 
concerns in their transition from small business concerns to other-
than-small and thereby increase competition in the unrestricted Federal 
marketplace.
    ``(d) Criteria for Participation.--
            ``(1) Election.--An eligible concern may make a one-time 
        election, which shall not be changed, to participate, with 
        respect to the primary activity of the eligible concern, 
        under--
                    ``(A) the North American Industry Classification 
                System Code corresponding to commercial and 
                institutional building construction; or
                    ``(B) the North American Industry Classification 
                System Code corresponding to engineering services.
            ``(2) Registration.--An eligible concern shall--
                    ``(A) register as a Participant with the System for 
                Award Management (or any successor system) on the date 
                on which the eligible concern makes the election under 
                paragraph (1) in the registry described in subsection 
                (h); and
                    ``(B) ensure that the registration of the eligible 
                concern is current and accurate.
            ``(3) Term of the transitional period.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the transitional period, during which 
                an eligible concern may be eligible to participate in 
                the Program, shall--
                            ``(i) begin on the date which the eligible 
                        concern first exceeds the size standard 
                        applicable to the North American Industry 
                        Classification System code corresponding to the 
                        industry elected by the concern pursuant to 
                        paragraph (1); and
                            ``(ii) not exceed 7 consecutive years.
                    ``(B) Exception.--An eligible concern first 
                exceeding the size standard described in subparagraph 
                (A)(i) within the 7-year period immediately preceding 
                the effective date of regulations issued under 
                subsection (b) shall be eligible to participate in the 
                Program for the remainder of the 7-year period 
                beginning on the date which the concern first exceeded 
                the size standard.
            ``(4) Activity targets.--The regulations described in 
        subsection (b) shall establish non-small business set aside 
        business activity targets that--
                    ``(A) are applicable to Participants during the 
                third year and each succeeding year of Program 
                participation; and
                    ``(B) during the period of time described in 
                subparagraph (A), shall reflect a reasonably consistent 
                increase in sales other than obtained through contracts 
                set aside for small business concerns, expressed as a 
                percentage of total sales.
            ``(5) Cap on average annual receipts.--Each Participant 
        shall be subject to a cap on average annual receipts that is 5 
        times the size standard applicable to the North American 
        Industry Classification System code corresponding to the 
        industry elected by the concern, calculated consistent with the 
        method in 121.104 of title 13, Code of Federal Regulations, or 
        any successor regulation.
            ``(6) Certification.--
                    ``(A) In general.--Each Participant shall be 
                required to annually certify in the System for Award 
                Management (or any successor system) as to whether or 
                not the Participant has--
                            ``(i) met the activity target established 
                        under paragraph (4) for the preceding year; and
                            ``(ii) complied with the restrictions 
                        described in subsection (e).
                    ``(B) Noncompliance.--If a Participant certifies 
                that the Participant has not met the applicable 
                activity targets established under paragraph (4) for 2 
                consecutive years, or certifies that the Participant 
                has not complied with the restrictions described in 
                subsection (e), the Participant shall no longer be 
                eligible to participate in the Program.
            ``(7) Participant report.--The regulations issued under 
        subsection (b) shall establish--
                    ``(A) requirements for annual reporting by 
                Participants to the Administrator during Program 
                participation, to include reporting on compliance with 
                activity targets established under paragraph (4), the 
                number and dollar value of contracts awarded based on 
                eligibility under subsection (f)(1), and information 
                required for the registry under subsection (h); and
                    ``(B) reporting requirements applicable for a 
                period of not less than 5 years after exiting the 
                Program.
            ``(8) No reinstatement.--Upon the expiration of the 
        transitional period, or once a Participant otherwise becomes 
        ineligible for the Program, the concern shall not be eligible 
        for reinstatement in the Program.
    ``(e) Restrictions.--
            ``(1) Mentor-protege.--
                    ``(A) In general.--A Participant may not apply to 
                be a protege under a mentor-protege program established 
                under this Act.
                    ``(B) Existing proteges.--A Participant that is 
                already a protege prior to registration under the 
                Program under subsection (d)(2) may, in years 1 and 2 
                of the transitional period of the Program, continue to 
                submit proposals in a mentor-protege program 
                established under this Act.
            ``(2) Additional restrictions.--In addition to the 
        restrictions described in paragraph (1), the Administrator may 
        include additional restrictions for Participants consistent 
        with the purposes of this Act.
    ``(f) Purposes for Which Participants May Qualify as Small.--
Subject to the restrictions in paragraph (e), a Participant may 
otherwise qualify as small for purposes of the following:
            ``(1) Contracts that are set aside for small business 
        concerns and assigned a North American Industry Classification 
        System code corresponding to the industry elected by the 
        Participant under subsection (d)(1) and--
                    ``(A) the Government of the United States expects 
                to be equal to or exceed--
                            ``(i) for commercial and institutional 
                        building construction, $5,000,000; and
                            ``(ii) for engineering services, 
                        $1,000,000; and
                    ``(B) any orders under such contracts irrespective 
                of the value of the order.
            ``(2) Goals established pursuant to section 15(g) for 
        participation by 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.
    ``(g) Termination.--
            ``(1) In general.--The Program shall terminate on the date 
        that is 10 years after the date of enactment of this section.
            ``(2) Continuation of participation.--Notwithstanding 
        paragraph (1), any Participant in the program as of the date on 
        which the Program terminates under paragraph (1) may continue 
        to participate until the expiration of the term of the 
        Participant under subsection (d)(3).
    ``(h) Publication of Registry Required.--The Administrator shall 
establish and maintain in the System for Award Management (or any 
successor system) a registry of eligible Participants, which registry 
shall, to the extent practicable--
            ``(1) include the name, address, transitional period entry 
        and exit dates, and elected North American Industry 
        Classification System code with respect to each Participant; 
        and
            ``(2) be updated by the Administrator not less than 
        annually.
    ``(i) Additional Information To Be Maintained.--The Administrator 
shall maintain data regarding--
            ``(1) the number of Participants in the Program;
            ``(2) the number of former Participants that have exited 
        the Program;
            ``(3) the number of former Participants that have 
        successfully transitioned to other-than-small, under such 
        criteria as the Administrator may establish;
            ``(4) the number of former Participants that have returned 
        to being small under North American Industry Classification 
        System code elected by the Participant under subsection (d)(1); 
        and
            ``(5) the total dollar value of small business awards made 
        each fiscal year to Participants by each Federal agency.
    ``(j) GAO Study and Report.--
            ``(1) Study.--Not later than 2 years after the date of 
        enactment of this section, the Comptroller General of the 
        United States shall begin conducting a study to evaluate the 
        implementation of the Program.
            ``(2) Report.--Not later than 8 years after the date of 
        enactment of this section, the Comptroller General of the 
        United States shall submit to Congress a report on the results 
        of the study required under paragraph (1), which shall 
        include--
                    ``(A) an assessment of the feasibility and 
                advisability of broadening the Program to include 
                additional industries, as defined under the North 
                American Industry Classification System;
                    ``(B) the effects of the Program, if any, on 
                Participants and on the industrial base;
                    ``(C) any recommendations for improving the 
                Program, including whether the Program should be made 
                permanent; and
                    ``(D) any additional findings and recommendations 
                as the Comptroller General of the United States 
                considers appropriate.''.
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