[Congressional Record Volume 140, Number 148 (Wednesday, November 30, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: November 30, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 MINORITY SMALL BUSINESS OPPORTUNITIES

  The text of the bill (S. 2478) to amend the Small Business Act to 
enhance the business development opportunities of small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and for other purposes, as passed by the 
Senate on October 7, 1994, is as follows:

                                S. 2478

       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 ``Business Development 
     Opportunity Act of 1994''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

    TITLE I--AMENDMENTS TO THE MINORITY SMALL BUSINESS AND CAPITAL 
                     OWNERSHIP DEVELOPMENT PROGRAM

        Part A--Program Organization and Participation Standards

Sec. 101. Minority Enterprise Development Program.
Sec. 102. Consolidation of eligibility review function.
Sec. 103. Clarification of various eligibility criteria.
Sec. 104. Clarification of certain additional eligibility criteria 
              imposed by regulation.
Sec. 105. Enhancing due process in eligibility determinations.
Sec. 106. Improving geographic distribution of program participants.

                Part B--Business Development Assistance

Sec. 111. Developmental assistance authorized for program participants.
Sec. 112. Expanding the eligible uses for loans under existing loan 
              programs for program participants.
Sec. 113. Test program for the use of surety bond waivers.
Sec. 114. Targeting section 7(j) business management assistance to 
              program participants.
Sec. 115. Other enhancements to the section 7(j) management assistance 
              program.
Sec. 116. Developmental teaming.

        Part C--Improving Access to Equity for Program Graduates

Sec. 121. Continued contract performance.
Sec. 122. Continued program participation.

             Part D--Contract Award and Eligibility Matters

Sec. 131. Contract award procedures.
Sec. 132. Timely determination of eligibility for contract award.
Sec. 133. Competition requirements.
Sec. 134. Standard industrial classification codes.
Sec. 135. Use of contract support levels.
Sec. 136. Business mix requirements.
Sec. 137. Encouraging self-marketing.
Sec. 138. Bundling of contractor capabilities.

                  Part E--Tribally Owned Corporations

Sec. 141. Management and control of business operations.
Sec. 142. Joint ventures.
Sec. 143. Rule of construction regarding the Buy Indian Act.

                Part F--Contract Administration Matters

Sec. 151. Accelerated payment.
Sec. 152. Expedited resolution of contract administration matters.
Sec. 153. Availability of alternative dispute resolution.

                     Part G--Program Administration

Sec. 161. Simplification of annual report to Congress.
Sec. 162. Reduction in reporting by program participants.

   TITLE II--CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS

                   Part A--Civilian Agencies Program

Sec. 201. Procurement procedures.
Sec. 202. Implementation through the Federal Acquisition Regulation.
Sec. 203. Sunset.

          Part B--Eligibility Determinations Regarding Status

Sec. 211. Improved status protest system.
Sec. 212. Conforming amendment.

           TITLE III--EXPANDING SUBCONTRACTING OPPORTUNITIES

Sec. 301. Evaluating subcontract participation in awarding contracts.
Sec. 302. Subcontracting goals for certain small business concerns.
Sec. 303. Small business participation goals.
Sec. 304. Improved notice of subcontracting opportunities.

               TITLE IV--REPEALS AND TECHNICAL AMENDMENTS

                            Part A--Repeals

Sec. 401. Loan program superseded by section 7(a) loan program.
Sec. 402. Superseded loan program relating to energy.
Sec. 403. Employee training program of limited scope.
Sec. 404. Expired provision.
Sec. 405. Expired direction to the Administration.

                      Part B--Technical Amendments

Sec. 411. Technical amendments.

                          TITLE V--DEFINITIONS

Sec. 501. Historically underutilized businesses.
Sec. 502. Emerging small business concern.

        TITLE VI--REGULATORY IMPLEMENTATION AND EFFECTIVE DATES

           Part A--Assuring Timely Regulatory Implementation

Sec. 601. Deadlines for issuance of regulations.
Sec. 602. Regulatory implementation of prior legislation.

                        Part B--Effective Dates

Sec. 611. Effective dates.
    TITLE I--AMENDMENTS TO THE MINORITY SMALL BUSINESS AND CAPITAL 
                     OWNERSHIP DEVELOPMENT PROGRAM

        PART A--PROGRAM ORGANIZATION AND PARTICIPATION STANDARDS

     SEC. 101. MINORITY ENTERPRISE DEVELOPMENT PROGRAM.

       (a) Program Established.--Section 7(j)(10) of the Small 
     Business Act (15 U.S.C. 636(j)(10)) is amended--
       (1) by striking the subsection designation and the first 2 
     sentences and inserting the following:
       ``(10) Minority enterprise development program.--
       ``(A) Establishment.--There is established within the 
     Administration a Minority Enterprise Development Program 
     (hereafter in this paragraph referred to as the `Program'), 
     which shall be administered by an Associate Administrator in 
     accordance with this paragraph and section 8(a).'';
       (2) by striking subparagraph (B);
       (3) by striking ``(A) The Program shall--'' and inserting 
     the following:
       ``(B) Program goals.--The Program shall--''; and
       (4) in subparagraph (C)(i), by striking ``participating in 
     any program or activity conducted under the authority of this 
     paragraph or''.
       (b) Program Phases.--Section 7(j)(12) of the Small Business 
     Act (15 U.S.C. 636(j)(12)) is amended to read as follows:
       ``(12) Segmenting of minority enterprise development 
     program.--
       ``(A) In general.--In addition to such other segments as 
     the Administrator deems appropriate, the Minority Enterprise 
     Development Program established in paragraph (10) shall 
     consist of the following 3 phases:
       ``(i) The Business Creation Phase.
       ``(ii) The Business Development Phase.
       ``(iii) The Business Development (Preferential Contracting) 
     Phase.
       ``(B) Eligibility for preferential contracting.--Only a 
     firm participating in the Business Development (Preferential 
     Contracting) Phase shall be eligible for award of Federal 
     contracts pursuant to section 8(a) (and shall be referred to 
     as a `Program Participant' for the purposes of this section 
     and section 8(a)).
       ``(C) Participation by firms.--Except as provided in 
     section 10(c), a firm may participate in the Business 
     Development (Preferential Contracting) Phase described in 
     subparagraph (A)(iii) for a total period of not more than 9 
     years, which period shall be divided into the following 2 
     stages:
       ``(i) A developmental stage (of not more than the first 5 
     years).
       ``(ii) A transitional stage.''.
       (c) Conforming Amendments.--The Small Business Act (15 
     U.S.C. 601 et seq.) is amended--
       (1) by striking ``Minority Small Business and Capital 
     Ownership Development'' each place it appears and inserting 
     ``Minority Enterprise Development'';
       (2) by striking ``Capital Ownership Development'' each 
     place it appears and inserting ``Minority Enterprise 
     Development'';
       (3) by striking ``capital ownership development'' each 
     place it appears and inserting ``minority enterprise 
     development'';
       (4) by striking ``Business Opportunity Specialist'' each 
     place it appears and inserting ``Business Development 
     Specialist''; and
       (5) by striking section 7(j)(15) and inserting the 
     following:
       ``(15) [Reserved].''.

     SEC. 102. CONSOLIDATION OF ELIGIBILITY REVIEW FUNCTION.

       Section 7(j)(11)(E) of the Small Business Act (15 U.S.C. 
     636(j)(11)(E)) is amended by striking the third sentence.

     SEC. 103. CLARIFICATION OF VARIOUS ELIGIBILITY CRITERIA.

       (a) Tribally Owned Corporations.--Sections 7(j) and 8(a) of 
     the Small Business Act (15 U.S.C. 636(j), 637(a)) are each 
     amended by striking ``an economically disadvantaged Indian 
     tribe'' each place it appears and inserting ``an Indian 
     tribe''.
       (b) Native Hawaiian Organizations.--Section 8(a)(4)(A) of 
     the Small Business Act (15 U.S.C. 637(a)(4)(A)) is amended by 
     striking ``an economically disadvantaged Native Hawaiian 
     organization'' each place it appears and inserting ``a Native 
     Hawaiian organization''.
       (c) Presumption of Economic Disadvantage.--Section 
     8(a)(6)(A) of the Small Business Act (15 U.S.C. 637(a)(6)(A)) 
     is amended by striking the last sentence.

     SEC. 104. CLARIFICATION OF CERTAIN ADDITIONAL ELIGIBILITY 
                   CRITERIA IMPOSED BY REGULATION.

       Section 7(j)(11)(G) of the Small Business Act (15 U.S.C. 
     636(j)(11)(G)) is amended to read as follows:
       ``(G) An applicant shall not be denied admission into the 
     Minority Enterprise Development Program established in 
     paragraph (10) based solely on a determination by the 
     Division that--
       ``(i) specific contract opportunities are unavailable to 
     assist in the development of such concern, unless--
       ``(I) the Government has not previously procured and is 
     unlikely to procure the types of products or services offered 
     by the concern; and
       ``(II) the purchases of such products or services by the 
     Federal Government will not be in quantities sufficient to 
     support the developmental needs of the applicant and other 
     Program Participants providing the same or similar items or 
     services;
       ``(ii) the prospective Program Participant firm has not 
     been in operation for a period of time specified by the 
     Administration prior to making application to the Program, if 
     the prospective Program Participant firm can demonstrate 
     that--
       ``(I) the individual or individuals upon whom eligibility 
     is to be based have substantial and demonstrated business 
     management experience;
       ``(II) the prospective Program Participant has demonstrated 
     technical expertise necessary to carry out its business plan 
     with a substantial likelihood of success;
       ``(III) the prospective Program Participant has, or can 
     demonstrate its ability to timely obtain, adequate capital to 
     carry out its business plan;
       ``(IV) the prospective Program Participant can demonstrate 
     the competitive award and performance (either ongoing or 
     completed) of contracts from governmental or nongovernmental 
     sources in the primary industry category reflected in its 
     business plan; and
       ``(V) the prospective Program Participant has, or can 
     demonstrate its ability to timely obtain, the personnel, 
     facilities, equipment, and any other requirements needed to 
     perform contracts of the type likely to be awarded to the 
     firm pursuant to section 8(a);
       ``(iii) the individual or individuals upon whom eligibility 
     is to be based have not been working full time at managing 
     the prospective Program Participant firm for a period 
     specified by the Administration prior to making application 
     to the Program;
       ``(iv) the prospective Program Participant is a tribally 
     owned corporation whose chief executive officer (or chief 
     operating officer) is other than a Native American, if the 
     governing body of the Indian tribe certifies to the 
     Administration that it was unable to hire a qualified Native 
     American after conducting a national recruitment for such 
     individual; or
       ``(v) the prospective Program Participant lacks reasonable 
     prospects for future success despite access to one or more of 
     the types of developmental assistance provided for in 
     paragraph (13), unless such determination is supported by 
     specific findings.''.

     SEC. 105. ENHANCING DUE PROCESS IN ELIGIBILITY 
                   DETERMINATIONS.

       Section 7(j)(11)(H) of the Small Business Act (15 U.S.C. 
     636(j)(11)(H)) is amended--
       (1) by striking ``(H)'' and inserting ``(H)(i)''; and
       (2) by adding at the end the following new clauses:
       ``(ii) The Associate Administrator for Minority Enterprise 
     Development shall--
       ``(I) notify an applicant, in writing, of the denial of an 
     application under clause (i), stating the specific 
     determinations supported by specific findings in support of 
     the denial; and
       ``(II) provide the applicant an opportunity to respond (or 
     to modify the business organization of the applicant in 
     response) to matters raised in the notice of denial and to 
     seek a reconsideration of the application.
       ``(iii) If the application is denied upon reconsideration 
     pursuant to clause (ii) and the denial is based upon 
     determinations or findings not previously cited as a basis 
     for the initial denial of the application, the Associate 
     Administrator for Minority Enterprise Development shall 
     provide the applicant an opportunity to respond to the 
     determinations or findings not previously raised, or to 
     modify the business organization of the applicant in response 
     to such determinations or findings.''.

     SEC. 106. IMPROVING GEOGRAPHIC DISTRIBUTION OF PROGRAM 
                   PARTICIPANTS.

       (a) Action Plan Required.--The Administrator of the Small 
     Business Administration shall develop an action plan for 
     improving participation in the Minority Enterprise 
     Development Program established by section 101 by firms 
     across the Nation.
       (b) Contents of the Action Plan.--In addition to such other 
     matters as the Administrator deems appropriate, the action 
     plan developed under subsection (a) shall address--
       (1) an outreach program directed at small business concerns 
     owned and controlled by socially and economically 
     disadvantaged individuals eligible for program participation 
     in those States with historically low rates of participation 
     in the Minority Enterprise Development Program (and its 
     predecessor program, the Minority Small Business and Capital 
     Ownership Development Program); and
       (2) improved implementation of section 8(a)(16)(B) of the 
     Small Business Act (relating to geographic distribution of 
     contracts awarded noncompetitively pursuant to section 
     8(a)(1) of such Act).
       (c) Public Participation.--In carrying out this section, 
     the Administrator shall seek public comment on the proposals 
     to be included in the action plan.
       (d) Submission.--Not later than June 30, 1995, the action 
     plan developed under subsection (a) shall be submitted to the 
     Committees on Small Business of the Senate and House of 
     Representatives.

                PART B--BUSINESS DEVELOPMENT ASSISTANCE

     SEC. 111. DEVELOPMENTAL ASSISTANCE AUTHORIZED FOR PROGRAM 
                   PARTICIPANTS.

       Section 7(j) of the Small Business Act (15 U.S.C. 636(j)) 
     is amended--
       (1) in paragraph (13), in the matter preceding subparagraph 
     (A), by striking ``the stages of program participation 
     specified in paragraph 12'' and inserting ``its Program 
     participation''; and
       (2) by striking paragraph (14) and inserting the following:
       ``(14) [Reserved].''.

     SEC. 112. EXPANDING THE ELIGIBLE USES FOR LOANS UNDER 
                   EXISTING LOAN PROGRAMS FOR PROGRAM 
                   PARTICIPANTS.

       Section 7(a)(20)(A)(iii) of the Small Business Act (15 
     U.S.C. 636(a)(20)(A)(iii)) is amended by striking ``to be 
     used'' and all that follows before the semicolon.

     SEC. 113. TEST PROGRAM FOR THE USE OF SURETY BOND WAIVERS.

       Section 7(j)(13)(D) of the Small Business Act (15 U.S.C. 
     636(j)(13)(D)) is amended--
       (1) by striking clauses (i) through (iii);
       (2) by striking ``A maximum'' and inserting ``(i) A 
     maximum'';
       (3) by striking ``, except that, such exemptions may be 
     granted under this subparagraph only
     if--'' and inserting a period; and
       (4) by adding at the end the following new clauses:
       ``(ii) The agency with contracting authority may, upon the 
     request of the Program Participant, grant an exemption 
     pursuant to clause (i), if--
       ``(I) the Program Participant provides certification, in 
     the form prescribed by the Administration, that the firm was 
     unable to obtain the requisite bonding from corporate surety 
     bonding firms even with a guarantee issued by the 
     Administration pursuant to title IV of the Small Business 
     Investment Act of 1958;
       ``(II) the Program Participant has provided for the 
     protection of persons furnishing materials or labor under the 
     contract by arranging for--

       ``(aa) the direct disbursement of funds owed to such 
     persons by the procuring agency or through an escrow account 
     provided by any bank the deposits of which are insured by the 
     United States Government; or
       ``(bb) irrevocable letters of credit (or other alternatives 
     to surety bonding acceptable to the procuring agency); and

       ``(III) the award value of the contract for which the 
     exemption is being sought does not exceed $1,000,000.
       ``(iii) The authority to grant an exemption under clause 
     (ii) shall cease to be effective on September 30, 1997.''.

     SEC. 114. TARGETING SECTION 7(j) BUSINESS MANAGEMENT 
                   ASSISTANCE TO PROGRAM PARTICIPANTS.

       Section 7(j)(1) of the Small Business Act (15 U.S.C. 
     636(j)(1)) is amended by striking ``individuals or 
     enterprises eligible for assistance under sections 7(i), 
     7(j)(10), and 8(a) of this Act'' and inserting ``participants 
     in the Minority Enterprise Development Program established in 
     paragraph (10)''.

     SEC. 115. OTHER ENHANCEMENTS TO THE SECTION 7(j) MANAGEMENT 
                   ASSISTANCE PROGRAM.

       (a) Focus on Business Management Assistance.--Section 
     7(j)(2)(E) of the Small Business Act (15 U.S.C. 636(j)(2)(E)) 
     is amended to read as follows:
       ``(E) the furnishing of business development services and 
     related professional services, especially accounting and 
     legal services, with special emphasis on marketing, bid and 
     proposal preparation, financial management, strategic 
     business planning, and transition management planning for 
     participants in the Minority Enterprise Development Program, 
     that will foster the continued business development of the 
     Program Participants after program graduation.''.
       (b) Two-Year Authorization.--Section 7(j)(5) of the Small 
     Business Act (15 U.S.C. 636(j)(5)) is amended to read as 
     follows:
       ``(5)(A) Financial assistance authorized in paragraph (1) 
     may be provided through grants, cooperative agreements, or 
     contracts.
       ``(B) Funds appropriated to carry out paragraph (1) shall 
     remain available for obligation by the Administration during 
     the fiscal year succeeding the fiscal year for which the 
     funds were appropriated.
       ``(C) Recipients of financial assistance awarded pursuant 
     to paragraph (1) may expend such funds prior to the 
     expiration date of the grant, cooperative agreement, or 
     contract under which the funds were awarded.''.
       (c) Eligibility for Certain Educational Institutions.--
     Section 7(j) of the Small Business Act (15 U.S.C. 636(j)) is 
     amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (A) through (E) as 
     subparagraphs (B) through (F), respectively; and
       (B) by inserting before subparagraph (B), as redesignated, 
     the following new subparagraph:
       ``(A) business executive education programs conducted by 
     institutions of graduate business education for owners or 
     managers of small business concerns owned and controlled by 
     socially and economically disadvantaged individuals (as 
     defined in section 8(d)(3)(C));''; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) In making awards pursuant to paragraph (1) to 
     institutions of graduate business education eligible under 
     paragraph (2)(A), the Administration shall give preference to 
     institutions that have previously provided such programs, 
     with the greatest preference being accorded to institutions 
     that have provided such programs for a period of not less 
     than 10 consecutive years.''.

     SEC. 116. DEVELOPMENTAL TEAMING.

       (a) Program Established.--There is established a 
     Developmental Teaming Program (hereafter in this section 
     referred to as the ``Program'') within the Minority 
     Enterprise Development Program established under section 101.
       (b) Purpose.--The purpose of the Program shall be to foster 
     the business development and long-term business success of 
     firms participating in the Minority Enterprise Development 
     Program by encouraging the formation of teaming arrangements 
     and long-term strategic business alliances between such firms 
     and firms that have graduated from the Minority Enterprise 
     Development Program (and its predecessor program, the 
     Minority Small Business and Capital Ownership Development 
     Program).
       (c) Program Participants.--
       (1) Assistance recipients.--Small business concerns owned 
     and controlled by socially and economically disadvantaged 
     individuals that are participants in the Business Development 
     (Preferential Contracting) Phase of the Minority Enterprise 
     Development Program shall be eligible to participate in the 
     Program (and shall be referred to as ``Program Participants'' 
     for purposes of this section).
       (2) Assistance providers.--A small business concern owned 
     and controlled by socially and economically disadvantaged 
     individuals that is a graduate (or a current Program 
     Participant in the Transitional Stage) of the Business 
     Development (Preferential Contracting Phase) of the Minority 
     Enterprise Development Program (and its predecessor program, 
     the Minority Small Business and Capital Ownership Development 
     Program) shall be eligible to participate in the Program and 
     to furnish developmental assistance to Program Participants 
     through a developmental teaming agreement, approved pursuant 
     to subsection (d). (For purposes of this section, firms 
     having, or seeking to establish, a developmental teaming 
     agreement shall be referred to as ``Developmental Teaming 
     Partners'').
       (d) Teaming Agreements.--
       (1) Assistance authorized.--A Developmental Teaming Partner 
     may provide to a Program Participant one or more of the 
     following forms of developmental assistance and training:
       (A) General business management (including financial 
     management, organizational management and personnel 
     management).
       (B) Business development, marketing, and proposal 
     preparation.
       (C) Process engineering (including production, inventory 
     control, and quality assurance).
       (D) Award of subcontracts on a noncompetitive basis.
       (E) Technology transfer.
       (F) Financial assistance (including loans, loan guarantees, 
     surety bonding, advance payments, and accelerated progress 
     payments).
       (G) Such other forms of assistance designed to foster the 
     development of the Program Participant, contained in a 
     developmental teaming agreement approved pursuant to 
     paragraph (3).
       (2) Content of agreements.--In addition to such other 
     matters as the parties may deem appropriate, each 
     developmental teaming agreement shall include the matters 
     described in subsection (e).
       (3) Approval required.--Each developmental teaming 
     agreement shall be approved by the Administration before--
       (A) the furnishing of any type of developmental assistance 
     to a Program Participant pursuant to such agreement; or
       (B) the Developmental Teaming Partner becomes eligible for 
     any of the incentives authorized by subsection (f).
       (4) Action by the administration.--Each proposed 
     developmental teaming agreement shall be reviewed and 
     approved (or denied approval) not later than 45 days after 
     the receipt of such agreement by the Administration. A denial 
     of approval shall state specific reasons for the denial and 
     shall afford the applicant an opportunity for 
     reconsideration. Every reasonable effort shall be made by the 
     Administration to act upon matters relating to the 
     administration of an approved developmental teaming agreement 
     not later than 30 days after the receipt of such agreement by 
     the Administration.
       (e) Content of the Agreement.--
       (1) Forms of assistance.--Each developmental teaming 
     agreement shall specify forms of business development 
     assistance to be furnished by the Developmental Teaming 
     Partner and indicate how these forms of assistance are 
     designed to advance the approved business plan of the Program 
     Participant.
       (2) Measures of success.--Each developmental teaming 
     agreement shall include specific milestones or benchmarks 
     which will permit objective measurement of whether the 
     agreement has advanced the business development of the 
     Program Participant.
       (3) Duration of agreement.--Each developmental teaming 
     agreement between a Program Participant and a Developmental 
     Assistance Provider may be for a term not to exceed 3 years, 
     with the option of the parties to renew the agreement upon 
     its expiration for an additional term of not to exceed 2 
     years.
       (4) Termination of agreement.--The developmental teaming 
     agreement shall include provisions regarding the termination 
     of the agreement that meet the standards of subsection (h).
       (f) Participation as Subcontractor.--A Developmental 
     Teaming Partner may be awarded a subcontract under a contract 
     awarded pursuant to section 8(a)(1) of the Small Business 
     Act, without regard to the subcontracting limitations of 
     section 8(a)(14) of such Act, if--
       (1) the contract was awarded to a Program Participant with 
     which such firm has an approved developmental teaming 
     agreement; and
       (2) the subcontract award was approved as part of the 
     developmental teaming agreement (or subsequently approved by 
     the Administration).
       (g) Affiliation or Control.--For the purposes of the Small 
     Business Act, no determination of affiliation or control 
     (either direct or indirect) shall be found on the basis that 
     a Program Participant is being furnished (or has entered into 
     agreement to be furnished) developmental assistance pursuant 
     to a developmental teaming agreement, approved pursuant to 
     subsection (d).
       (h) Termination of Agreements.--
       (1) By a program participant.--A Program Participant may 
     voluntarily terminate a developmental teaming agreement after 
     giving not less than 30 days advance notice to its 
     Developmental Teaming Partner.
       (2) By a developmental assistance provider.--
       (A) Withdrawal from program.--A Developmental Teaming 
     Partner may terminate its developmental teaming agreement 
     with a Program Participant by withdrawing from the Program 
     after giving not less than 30 days advance notice to the 
     Administration and to each of the Program Participants for 
     which the firm was a Developmental Teaming Partner.
       (B) Terminating an agreement for cause.--
       (i) In general.--A Developmental Teaming Partner may 
     terminate its developmental teaming agreement with a Program 
     Participant for cause in accordance with the procedures in 
     clause (ii).
       (ii) Notice.--In terminating an agreement under clause (i), 
     the following procedures shall apply:

       (I) In general.--The Program Participant shall be furnished 
     a written notice of the proposed termination under clause 
     (i), not less than 30 days prior to the effective date of 
     such proposed termination, that states the specific reasons 
     for the proposed termination.
       (II) Response.--The Program Participant shall have not more 
     than 30 days to respond to such notice of proposed 
     termination, rebutting any findings believed to be erroneous 
     and offering a remedial program.
       (III) Final action.--After giving the Program Participant's 
     response prompt consideration, the Developmental Teaming 
     Partner shall either withdraw the notice of proposed 
     termination or issue a notice of termination.

       (iii) Nonreviewability.--The decision of the Developmental 
     Teaming Partner regarding a termination for cause, conforming 
     to the procedures of clause (ii), shall be final and shall 
     not be subject to review by the Administration.
       (3) By the small business administration.--
       (A) In general.--The Administration may terminate the 
     participation of a Developmental Teaming Partner or a Program 
     Participant for cause in accordance with subparagraph (B).
       (B) Procedures.--In terminating an agreement under 
     subparagraph (A), the following procedures shall apply:
       (i) Notice.--The firm proposed for termination from the 
     Program shall be furnished a written notice of the proposed 
     termination, not less than 30 days prior to the effective 
     date of such proposed termination, that states the specific 
     reasons for the proposed termination.
       (ii) Response.--The notice of proposed termination shall 
     provide 30 days for the firm proposed for termination to 
     respond to such notice.
       (iii) Final action.--After giving prompt consideration to 
     the response of the firm proposed for termination, the 
     Administration shall either withdraw the notice of proposed 
     termination or issue a notice of termination.
       (C) Reviewability.--A decision by the Administration to 
     terminate for cause the participation of a firm in the 
     Program shall be final, but may be appealed pursuant to 
     section 8(a)(9) of the Small Business Act.
       (i) Duration of the Program.--
       (1) In general.--Business concerns eligible to participate 
     in the Program may enter into developmental teaming 
     agreements during the period commencing on the effective date 
     of the regulations required by subsection (j) and ending on 
     September 30, 1997.
       (2) Termination.--The Program shall terminate on September 
     30, 2002.
       (j) Regulations.--The Administrator of the Small Business 
     Administration shall prescribe regulations to carry out the 
     Developmental Teaming Program. Proposed regulations shall be 
     published not later than 90 days after the date of enactment 
     of this Act. Final regulations shall be promulgated not later 
     than 180 days after the date of enactment of this Act.
       (k) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Small business concerns.--The term ``small business 
     concern'' means a business concern that meets the 
     requirements of section 3(a) of the Small Business Act and 
     the regulations promulgated pursuant to such section.
       (2) Small business concern 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 same meaning 
     as in section 8(d)(3)(C) of the Small Business Act.
       (3) Minority enterprise development program.--The term 
     ``Minority Enterprise Development Program'' means the program 
     authorized by section 7(j)(10)(A) of the Small Business Act 
     (as amended by section 101).
       (4) Graduated.--The term ``graduated'' has the same meaning 
     as in section 7(j)(10)(H) of the Small Business Act.

        PART C--IMPROVING ACCESS TO EQUITY FOR PROGRAM GRADUATES

     SEC. 121. CONTINUED CONTRACT PERFORMANCE.

       Section 8(a)(21) of the Small Business Act (15 U.S.C. 
     637(a)(21) is amended--
       (1) in subparagraph (B), by striking ``The Administrator 
     may, on a nondelegable basis, waive the requirements of 
     subparagraph (A) only if 1 of the following conditions 
     exist:'' and inserting ``The requirements of subparagraph (A) 
     may be waived, under any of the following circumstances:''; 
     and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C)(i) Except as provided in clause (ii), a request for a 
     waiver pursuant to subparagraph (B) shall be submitted prior 
     to the actual relinquishment of ownership or control.
       ``(ii) Under the circumstances described in subparagraph 
     (B)(iii), the waiver request shall be made as soon as 
     practicable after the incapacity or death occurs.''.

     SEC. 122. CONTINUED PROGRAM PARTICIPATION.

       Section 7(j)(11)(D) of the Small Business Act (15 U.S.C. 
     636(j)(11)(D)) is amended to read as follows:
       ``(D)(i) A Program Participant shall remain eligible for 
     participation in the Program after a transfer of an ownership 
     interest in the firm if ownership and control (as required by 
     section 8(a)(4)) is--
       ``(I) retained by the socially and economically 
     disadvantaged individuals upon whom Program eligibility is 
     based; or
       ``(II) acquired by a small business concern owned and 
     controlled by socially and economically disadvantaged 
     individuals who have graduated from the Program or otherwise 
     exited the Program through a means other than a termination 
     proceeding.
       ``(ii) A Program Participant shall remain eligible for 
     participation in the Program after transfer of ownership and 
     control (as required by section 8(a)(4)) to individuals who 
     are determined to be socially and economically disadvantaged 
     pursuant to section 8(a). Unless graduated or terminated, the 
     Program Participant shall be eligible for a period of 
     continued Program Participation not to exceed the period 
     described in paragraph (15).
       ``(iii) A Program Participant that is a tribally owned 
     corporation may remain eligible for participation in the 
     Program with other than a Native American as the firm's chief 
     executive officer (or chief operating officer), if the 
     governing body of the Indian tribe certifies to the 
     Administration that it was unable to hire a qualified Native 
     American after conducting a national recruitment for such an 
     individual.''.

             PART D--CONTRACT AWARD AND ELIGIBILITY MATTERS

     SEC. 131. CONTRACT AWARD PROCEDURES.

       Section 8(a)(1) of the Small Business Act (15 U.S.C. 
     637(a)(1)) is amended--
       (1) by striking subparagraphs (A), (B), and (C); and
       (2) by striking ``(a)(1)'' and inserting the following:
       ``(a)(1)(A) The Administration shall ensure that contracts 
     sufficient to satisfy the contract support levels identified 
     by participants in the Minority Enterprise Development 
     Program established in section 7(j)(10) are designated by the 
     various Federal agencies for award pursuant to this 
     subsection.
       ``(B) Except as provided in subparagraph (D), the award of 
     contracts under this section shall be made on a 
     noncompetitive basis by the agency offering the contracting 
     opportunity to the Program Participant selected for the 
     award, and determined to be responsible by such agency. The 
     award shall be made at a fair market price.
       ``(C)(i) The Administration shall determine the eligibility 
     of the Program Participant to receive the award in accordance 
     with the eligibility criteria listed in paragraph (16).
       ``(ii) With respect to an individual contracting 
     opportunity, the Administration may provide, upon a request 
     by the Program Participant, assistance with respect to--
       ``(I) the negotiation of the terms and conditions of the 
     award; and
       ``(II) the resolution of controversies arising from the 
     performance of the contract prior to such contract 
     performance controversies becoming formal contract disputes 
     within the meaning of the Contract Disputes Act of 1978;
       ``(iii) In the event of an adverse decision by an agency 
     regarding a contracting opportunity, the Administrator may--
       ``(I) not later than 5 days after receiving notice of such 
     adverse decision, file a notice of intent to appeal with the 
     head of the agency; and
       ``(II) not later than 15 days after receiving such notice, 
     file an appeal with the head of the agency, requesting 
     reconsideration of the adverse decision.
       ``(iv) Upon receipt of the notice of intent to file an 
     appeal under clause (iii)(I), further action regarding award 
     of the contract shall be suspended, unless the head of the 
     agency makes a written determination, supported by specific 
     findings, that urgent and compelling circumstances that 
     significantly affect the interests of the United States will 
     not permit reconsideration of the adverse decision.
       ``(v) If the head of the agency sustains the adverse 
     decision upon reconsideration, the decision by the head of 
     the agency shall be in writing and shall be supported by 
     specific findings.
       ``(vi) An adverse decision regarding the responsibility of 
     a Program Participant shall be decided pursuant to subsection 
     (b)(7).
       ``(vii) For the purposes of this subparagraph, an adverse 
     decision includes a decision by the contracting officer 
     responsible for the contracting opportunity--
       ``(I) failing to respond to a request from the 
     Administration to make a specific contracting opportunity 
     available for award pursuant to this subsection;
       ``(II) declining to make available for award under this 
     subsection a contracting opportunity (or class of contracting 
     opportunities) or failing to support such a determination 
     with specific findings;
       ``(III) finding a Program Participant to be ineligible for 
     award of a contracting opportunity on the basis of a 
     determination of nonresponsibility; or
       ``(IV) failing to reach agreement with the Program 
     Participant with respect to the terms and conditions of a 
     contract selected for award under this subsection.''.

     SEC. 132. TIMELY DETERMINATION OF ELIGIBILITY FOR CONTRACT 
                   AWARD.

       (a) In General.--Section 8(a)(16) of the Small Business Act 
     (15 U.S.C. 637(a)(16)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (E);
       (2) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Upon receiving notification that a Federal agency 
     intends to consider a Program Participant for award of a 
     contract pursuant to this subsection (on a competitive or 
     noncompetitive basis), the Administration shall promptly 
     notify the agency regarding the eligibility of the Program 
     Participant for award of the contract, and shall identify all 
     matters that could reasonably be expected to render the 
     Program Participant ineligible at the time of the contract 
     award.''; and
       (3) by inserting after subparagraph (A) (as added by 
     paragraph (2)) the following new subparagraphs:
       ``(B) A Program Participant may be found to be ineligible 
     for award of the contract pursuant to this subsection, if--
       ``(i) the award of the contract would result in the Program 
     Participant failing to attain its business activity targets 
     established pursuant to section 7(j)(10)(I); or
       ``(ii) the Program Participant has failed to make the 
     submissions required under paragraph (6)(B).
       ``(C) A small business concern owned and controlled by 
     socially and economically disadvantaged individuals that has 
     completed its Program Participation term pursuant to section 
     7(j)(15) shall be eligible for award if--
       ``(i) in the case of a contract to be competitively 
     awarded, the prospective contract recipient was a Program 
     Participant eligible for award of the contract on the date 
     specified for receipt of offers, and such firm had timely 
     submitted an offer (including price); or
       ``(ii) in the case of a contract to be noncompetitively 
     awarded, the prospective contract recipient was a Program 
     Participant eligible for award of the contract on the date 
     specified by the agency contracting officer for the 
     submission of an offer (including price).
       ``(D) If the Administration determines that a Program 
     Participant is ineligible for consideration for award of a 
     contract under subparagraph (B) or (C), the determination 
     shall be supported by specific findings. The determination 
     (and supporting findings) shall be furnished to the Program 
     Participant and to the contracting officer for the agency 
     providing the contracting opportunity.''.
       (b) Conforming Amendments.--Section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)) is amended--
       (1) in paragraph (3)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) [Reserved].''; and
       (B) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Subsequent to the award of a contract under this 
     subsection, if requested by the recipient of the contract, 
     the Administration shall not publicly disclose the agency's 
     estimate of the fair market price.'';
       (2) in paragraph (7), by striking subparagraph (A) and 
     inserting the following:
       ``(A) [Reserved].'';
       (3) in paragraph (12)(A), by striking ``eligible to receive 
     subcontracts'' and inserting ``eligible for contract 
     awards''; and
       (4) in paragraph (9)(B)--
       (A) in clause (iii), by striking ``and'';
       (B) by redesignating clause (iv) as clause (v); and
       (C) by inserting after clause (iii) the following new 
     clause:
       ``(iv) a determination of ineligibility for award of 
     contract pursuant to paragraph (16)(B); and''.

     SEC. 133. COMPETITION REQUIREMENTS.

       (a) Indefinite Quantity and Delivery Contracts.--Section 
     8(a)(1)(D) of the Small Business Act (15 U.S.C. 637(a)(1)(D)) 
     is amended--
       (1) by redesignating clause (ii) as clause (iv); and
       (2) by inserting after clause (i) the following new clause:
       ``(ii) Whenever a requirements-type contract (including a 
     task order contract, indefinite quantity contract, or 
     indefinite delivery contract) is to be awarded, the 
     thresholds for competition required under clause (i)(II) 
     shall be calculated on the basis of the estimated total value 
     of the contract.''.
       (b) Authorization for Additional Noncompetitive Contract 
     Awards.--Section 8(a)(1)(D) of the Small Business Act (15 
     U.S.C. 637(a)(1)(D)) is amended by inserting after clause 
     (ii) (as added by subsection (a)) the following new clause:
       ``(iii) The Associate Administrator for Minority Enterprise 
     Development, on a nondelegable basis, may authorize the 
     noncompetitive award of contracts in excess of the amounts 
     specified in clause (i)(II) to a Program Participant, if--
       ``(I) such Program Participant is an emerging small 
     business concern;
       ``(II) the award of such contracts would contribute 
     substantially to the development of the Program Participant 
     in accordance with its business plan, including attainment of 
     the business activity targets established pursuant to section 
     7(j)(10)(I), by the time such firm enters the transitional 
     stage;
       ``(III) the award value of the contract does not exceed 
     twice the amounts specified in clause (i)(II); and
       ``(IV) the aggregate dollar value of awards pursuant to 
     this clause does not exceed $20,000,000.''.

     SEC. 134. STANDARD INDUSTRIAL CLASSIFICATION CODES.

       (a) Approval of Codes.--As part of the process of 
     developing and maintaining a business plan pursuant to 
     section 7(j)(10)(D) of the Small Business Act, a Program 
     Participant may designate its capabilities to perform 
     contracting opportunities under one or more standard 
     industrial classification codes.
       (b) Determinations by Procuring Agency Regarding Applicable 
     Standard Industrial Classification Code.--The standard 
     industrial classification code assigned to a contracting 
     opportunity by the responsible contracting officer shall 
     apply, unless modified by the contracting officer after 
     considering additional information furnished by the 
     Administration or from other sources.
       (c) Effect of Responsibility Determinations.--The 
     Administration shall be bound by a determination of 
     responsibility by the agency contracting officer with respect 
     to a Program Participant being considered for award of a 
     contract pursuant to section 8(a) of the Small Business Act.
       (d) Conforming Amendment.--Section 8(a)(7) of the Small 
     Business Act (15 U.S.C. 637(a)(7)) (as amended by section 
     132(b)(2)) is amended to read as follows:
       ``(7) [Reserved].''.

     SEC. 135. USE OF CONTRACT SUPPORT LEVELS.

       Section 7(j)(10)(D) of the Small Business Act (15 U.S.C. 
     636(j)(10)(D)) is amended by adding at the end the following 
     new clause:
       ``(v) The forecasts of overall business activity contained 
     in the business plan of a Program Participant or the estimate 
     contained in the section 8(a) contract support level of such 
     firm shall not be used by the Administration to make a 
     determination that such firm is ineligible for the award of a 
     contract to be awarded pursuant to section 8(a).''.

     SEC. 136. BUSINESS MIX REQUIREMENTS.

       Section 7(j)(10) of the Small Business Act (15 U.S.C. 
     636(j)(10)) is amended--
       (1) in subparagraph (D)--
       (A) in clause (iii), by striking ``contracts awarded'' and 
     inserting ``contracts awarded noncompetitively''; and
       (B) in clause (iv)(I), by striking ``contracts awarded'' 
     and inserting ``contracts awarded noncompetitively''; and
       (2) in subparagraph (I)--
       (A) in clause (i)--
       (i) by striking ``for contracts awarded other than pursuant 
     to section 8(a)'' and inserting ``through contracts other 
     than contracts awarded noncompetitively pursuant to section 
     8(a)''; and
       (ii) by striking ``will engage a'' and inserting ``will 
     engage in a'';
       (B) in clause (iii)--
       (i) by redesignating subclauses (II) through (V) as 
     subclauses (III) through (VI), respectively;
       (ii) by striking subclause (I) and inserting the following:
       ``(I) establish business activity targets applicable to 
     Program Participants during each year of Program 
     participation, which reflect a consistent increase in new 
     contracts awarded other than pursuant to section 8(a), so 
     that not more than 20 percent of the dollar value of the 
     Program Participant's business base (as a percentage of total 
     sales) at the beginning of the ninth year of Program 
     participation is derived from contracts awarded pursuant to 
     section 8(a);
       ``(II) provide that the business activity targets 
     established pursuant to subclause (I) reflect that not more 
     than 50 percent of the dollar value of the new contracts 
     awarded during the fifth and succeeding years of Program 
     Participation be awarded pursuant to section 8(a) on a 
     noncompetitive basis;'';
       (iii) by striking subclause (IV), as redesignated, and 
     inserting the following:
       ``(IV) require that a Program Participant in the 
     transitional stage of Program participation certify 
     compliance with its business activity targets (or with any 
     program of remedial measures that may have been imposed 
     pursuant to subclause (VI) for failing to attain such 
     targets) to eligible for award of a contract pursuant to 
     section 8(a);'';
       (iv) in subclause (V), as redesignated, by striking ``and'' 
     at the end;
       (v) by striking subclause (VI), as redesignated, and 
     inserting the following:
       ``(VI) authorize the Administration to require a Program 
     Participant that has failed to attain a business activity 
     target to undertake a program of remedial measures designed 
     to assist the firm to reduce its dependence on contracts 
     awarded pursuant to section 8(a); and''; and
       (vi) by adding at the end the following new subclause:
       ``(VII) authorize the Administration to limit the dollar 
     volume of contracts awarded to the Program Participant 
     pursuant to section 8(a), especially those awarded 
     noncompetitively, if the firm has not made substantial 
     progress toward attaining its business activity targets.''; 
     and
       (C) by adding at the end the following new clause:
       ``(iv) Actions by the Administration relating to enforcing 
     compliance with business activity targets shall not be 
     reviewable pursuant to section 8(a)(19), unless such action 
     is a termination from further Program participation.''.

     SEC. 137. ENCOURAGING SELF-MARKETING.

       (a) Elimination of Regulatory Limitations.--In accordance 
     with the schedule for the issuance of revised regulations 
     contained in section 601(a), the Administration shall 
     promulgate such regulations as may be necessary to eliminate 
     regulatory limitations on self-marketing by Program 
     Participants, including limitations relating to so-called 
     ``National Buys'' and ``Local Buys''.
       (b) Conforming Amendment.--Section 8(a)(11) of the Small 
     Business Act (15 U.S.C. 637(a)(11)) is amended to read as 
     follows:
       ``(11) [Reserved].''.

     SEC. 138. BUNDLING OF CONTRACTOR CAPABILITIES.

       (a) In General.--Section 8(a)(14) of the Small Business Act 
     (15 U.S.C. 637(a)(14)) is amended to read as follows:
       ``(14)(A) Except as provided in subparagraph (B), a 
     contract shall not be awarded pursuant to this subsection 
     unless the small business concern complies with the 
     requirements of section 15(o).
       ``(B)(i) Whenever the Administration determines that a 
     proposed contract opportunity represents a bundling of 
     contract requirements as defined by section 3(n), a Program 
     Participant may propose a team of subcontractors meeting the 
     requirements of clause (ii) without regard to the 
     requirements of section 15(o) or regulations of the 
     Administration regarding findings of affiliation or control, 
     either direct or indirect.
       ``(ii) The subcontracting team proposed by a Program 
     Participant may include--
       ``(I) other Program Participants;
       ``(II) other small business concerns;
       ``(III) business concerns other than small business 
     concerns, whose aggregate participation may not represent 
     more than 25 percent of the anticipated total value of the 
     contract; and
       ``(IV) historically black colleges and universities and 
     other minority institutions.''.
       (b) Definition.--Section 3 of the Small Business Act (15 
     U.S.C. 632) is amended by adding at the end the following new 
     subsection:
       ``(n) Contract Bundling.--For purposes of contracting 
     opportunities subject to sections 8(a) and 15, the terms 
     `contract bundling' and `bundling of contract requirements' 
     mean the practice of consolidating two or more procurement 
     requirements of the type that were previously solicited and 
     awarded as separate smaller contracts into a single large 
     contract solicitation likely to be unsuitable for award to a 
     small business concern due to--
       ``(1) the diversity and size of the elements of performance 
     specified;
       ``(2) the aggregate dollar value of the anticipated award;
       ``(3) the geographical dispersion of the contract 
     performance sites; or
       ``(4) any combination of the factors described in 
     paragraphs (1), (2), and (3).''.
       (c) Conforming Amendment.--Section 15(a) of the Small 
     Business Act (15 U.S.C. 644(a)) is amended by striking ``If a 
     proposed procurement'' and all that follows through ``prime 
     contract participation unlikely,'' and inserting the 
     following: ``If a proposed procurement represents a bundling 
     of contract requirements, as defined in section 3(n),''.

                  PART E--TRIBALLY OWNED CORPORATIONS

     SEC. 141. MANAGEMENT AND CONTROL OF BUSINESS OPERATIONS.

       Section 8(a)(4)(B)(ii) of the Small Business Act (15 U.S.C. 
     637(a)(4)(B)(ii)) is amended to read as follows:
       ``(ii) in the case of a tribally owned corporation, an 
     individual designated by the Indian tribe (or the board of 
     directors of a wholly owned entity of such tribe), who shall 
     be a Native American if such individual is available; or''.

     SEC. 142. JOINT VENTURES.

       (a) In General.--Section 8(a)(15) of the Small Business Act 
     (15 U.S.C. 637(a)(15)) is amended to read as follows:
       ``(15)(A) Except as provided in subparagraph (B), a 
     contract may be awarded pursuant to this subsection to a 
     joint venture owned and controlled by a Program Participant, 
     notwithstanding the size status of such joint venture, if the 
     Program Participant--
       ``(i) is owned and controlled by an Indian tribe;
       ``(ii) owns at least 51 percent of the joint venture;
       ``(iii) is located and performs most of its activities on 
     the reservation of such Indian tribe; and
       ``(iv) employs members of such tribe for at least 50 
     percent of the work force of such joint venture.
       ``(B) A contract may not be awarded to a joint venture 
     pursuant to subparagraph (A) if an Indian tribe owns and 
     controls one or more Program Participants who are currently 
     joint venturers on more than 5 contracts awarded pursuant to 
     subparagraph (A).''.
       (b) Definitions.--
       (1) Indian tribe.--Section 3 of the Small Business Act (15 
     U.S.C. 632) (as amended by section 139(b)) is amended by 
     adding at the end the following new subsection:
       ``(o) Indian Tribe.--For purposes of this Act, the term 
     `Indian tribe' means an Indian tribe, band, nation, or other 
     organized group or community of Indians, including any Alaska 
     Native village or regional or village corporation (as defined 
     in section 3 of the Alaska Native Claims Settlement Act 
     that--
       ``(1) is recognized as eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians; or
       ``(2) is recognized as such by the State in which such 
     tribe, band, nation, group, or community resides.''.
       (2) Native hawaiian organization.--Section 3 of the Small 
     Business Act (15 U.S.C. 632) (as amended by paragraph (1)) is 
     amended by adding at the end the following new subsection:
       ``(p) Native Hawaiian Organization.--For purposes of this 
     Act, the term `Native Hawaiian organization' means a 
     community service organization serving Native Hawaiians in 
     the State of Hawaii that is--
       ``(1) a not-for-profit organization chartered by the State 
     of Hawaii;
       ``(2) controlled by Native Hawaiians; and
       ``(3) engaged in business activities that will principally 
     benefit such Native Hawaiians.''.
       (3) Conforming amendment.--Section 8(a)(13) of the Small 
     Business Act (15 U.S.C. 637(a)(13)) is amended to read as 
     follows:
       ``(13) [Reserved].''.

     SEC. 143. RULE OF CONSTRUCTION REGARDING THE BUY INDIAN ACT.

       A contract awarded pursuant to section 8(a) of the Small 
     Business Act to a small business concern owned and controlled 
     by members of an Indian tribe (or a wholly owned business 
     entity of such tribe) shall be considered to be in compliance 
     with section 23 of the Act of June 25, 1910 (25 U.S.C. 47).

                PART F--CONTRACT ADMINISTRATION MATTERS

     SEC. 151. ACCELERATED PAYMENT.

       Section 8(a)(1) of the Small Business Act (15 U.S.C. 
     637(a)(1)) is amended by adding at the end the following new 
     subparagraph:
       ``(E)(i) Any contract awarded pursuant to subparagraph (B) 
     to a Program Participant in the developmental stage of the 
     Program shall include a payment term requiring payment of any 
     invoice, progress payment request, or other authorized 
     request for payment, not later than 20 days after receipt of 
     a proper invoice or other form of payment request.''.

     SEC. 152. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION 
                   MATTERS.

       Section 8(a)(1)(E) of the Small Business Act (15 U.S.C. 
     637(a)(1)(E)) (as added by section 151) is amended by adding 
     at the end the following new clause:
       ``(ii)(I) A Federal agency awarding a contract under this 
     subsection shall make every reasonable effort to respond in 
     writing to any written request made to a contracting officer 
     with respect to a matter relating to the administration of 
     such contract, not later than 15 days such request.
       ``(II) If the contracting officer is unable to reply before 
     the expiration of the 15-day period described in subclause 
     (I), the contracting officer shall transmit to the contractor 
     within such period a written notification of a specific date 
     by which the contracting officer expects to respond.
       ``(III) The provisions of this subparagraph do not apply to 
     a request for a contracting officer's decision under the 
     Contract Disputes Act of 1978 nor create any new rights 
     pursuant to such Act.''.

     SEC. 153. AVAILABILITY OF ALTERNATIVE DISPUTE RESOLUTION.

       Section 8(a)(1)(E) of the Small Business Act (15 U.S.C. 
     637(a)(1)(E)) (as amended by sections 151 and 152) is amended 
     by adding at the end the following new clause:
       ``(iii)(I) Except as provided in subclause (II), an agency 
     awarding a contract pursuant to subparagraph (B) shall make 
     available, upon the request of a Program Participant, an 
     alternative means of dispute resolution pursuant to 
     subchapter IV of chapter 5, of title 5, United States Code.
       ``(II) In carrying out this clause, the agency need not 
     provide an alternative dispute resolution procedure if the 
     agency makes a written determination, supported by specific 
     findings, citing one or more of the conditions in section 
     572(b) of title 5, United States Code, or such other specific 
     reasons, that alternative dispute resolution procedures are 
     inappropriate for the resolution of the dispute for which 
     such procedures were sought under the contract.''.

                     PART G--PROGRAM ADMINISTRATION

     SEC. 161. SIMPLIFICATION OF ANNUAL REPORT TO CONGRESS.

       Section 7(j)(16)(B)(v) of the Small Business Act (15 U.S.C. 
     636(j)(16)(B)(v)) is amended to read as follows:
       ``(v) The total dollar value of receipts received during 
     the most recently completed program year from contracts 
     awarded pursuant to section 8(a), and such amount expressed 
     as a percentage of the total sales of--
       ``(I) all firms participating in the Program during the 
     preceding fiscal year; and
       ``(II) firms in each of the 9 years of Program 
     participation.''.

     SEC. 162. REDUCTION IN REPORTING BY PROGRAM PARTICIPANTS.

       Section 8(a)(20)(A) of the Small Business Act (15 U.S.C. 
     637(a)(20)(A)) is amended by striking ``semiannually report'' 
     and inserting ``report, not less often than annually,''.
   TITLE II--CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS

                   PART A--CIVILIAN AGENCIES PROGRAM

     SEC. 201. PROCUREMENT PROCEDURES.

       Section 8(c) of the Small Business Act (15 U.S.C. 637(c)) 
     is amended to read as follows:
       ``(c) Procurement Procedures.--
       ``(1) In general.--For the purpose of attaining an agency's 
     goal for the participation of small business concerns owned 
     and controlled by socially and economically disadvantaged 
     individuals pursuant to section 15(g)(1), the head of a 
     participating executive agency may enter into contracts 
     using--
       ``(A) less than full and open competition, by restricting 
     the competition for such awards to small business concerns 
     owned and controlled by socially and economically 
     disadvantaged individuals as defined in subsection (d)(3)(C); 
     and
       ``(B) a price evaluation preference, of not to exceed 10 
     percent, when evaluating an offer received from such a small 
     business concern as the result of an unrestricted 
     solicitation.
       ``(2) Definition.--For the purposes of this subsection, the 
     term `participating executive agency' means a Federal agency, 
     as defined in section 3(b), in the executive branch of the 
     Federal Government, other than the Department of Defense.''.

     SEC. 202. IMPLEMENTATION THROUGH THE FEDERAL ACQUISITION 
                   REGULATION.

       (a) In General.--The Federal Acquisition Regulation shall 
     be amended to provide uniform implementation by each 
     executive agency choosing to participate in the program 
     authorized in section 8(c) of the Small Business Act (as 
     amended by section 201).
       (b) Matters To Be Addressed.--The provisions of the Federal 
     Acquisition Regulation prescribed pursuant to subsection (a) 
     shall include--
       (1) conditions for the use of advance payments;
       (2) provisions for contract payment terms that provide 
     for--
       (A) accelerated payment for work performed during the 
     period for contract performance; and
       (B) full payment for work performed;
       (3) guidance on how contracting officers may use, in 
     solicitations for various classes of products or services, a 
     price evaluation preference pursuant to section 8(c)(1)(B) of 
     the Small Business Act (as amended by section 201) to provide 
     a reasonable advantage to small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals without effectively eliminating any participation 
     of other small business concerns; and
       (4)(A) procedures for a person to request the head of a 
     Federal agency to determine whether the use of competitions 
     restricted to small business concerns owned and controlled by 
     socially and economically disadvantaged individuals at a 
     contracting activity of such agency has caused a particular 
     industry category to bear a disproportionate share of the 
     contracts awarded to attain the goal established for that 
     contracting activity; and
       (B) guidance for limiting the use of such restricted 
     competitions in the case of any contracting activity and 
     class of contracts determined in accordance with such 
     procedures to have caused a particular industry category to 
     bear a disproportionate share of the contracts awarded to 
     attain the goal established for that contracting activity.

     SEC. 203. SUNSET.

       The amendments made by section 201 shall cease to be 
     effective on October 1, 2000.

          PART B--ELIGIBILITY DETERMINATIONS REGARDING STATUS

     SEC. 211. IMPROVED STATUS PROTEST SYSTEM.

       Section 7(j)(10)(J) of the Small Business Act (15 U.S.C. 
     636(j)(10)(J)) is amended by striking clause (ii) and 
     inserting the following new clauses:
       ``(ii) A protest may be brought regarding a self-
     certification by a business concern regarding its status as a 
     small business concern owned and controlled by socially and 
     economically disadvantaged individuals by--
       ``(I) another person with a direct economic interest in the 
     award of the contract or subcontract under which such 
     business has allegedly made the false certification regarding 
     its status as a small business concern owned and controlled 
     by socially and economically disadvantaged individuals;
       ``(II) a prime contractor receiving specific and credible 
     information that an actual or prospective subcontractor or 
     supplier has falsely certified its status as a small business 
     concern owned and controlled by socially and economically 
     disadvantaged individuals;
       ``(III) a contracting officer receiving a self-
     certification regarding an actual or prospective contractor's 
     status, which such officer reasonably believes to be false; 
     or
       ``(IV) the Associate Deputy Administrator for Minority 
     Enterprise Development and Government Contracting of the 
     Small Business Administration (or any successor position).
       ``(iii) The Office of Hearings and Appeals shall hear 
     appeals regarding the status of a concern as a small business 
     concern owned and controlled by socially and economically 
     disadvantaged individuals for purposes of any program or 
     activity conducted under section 8(d) or any other Federal 
     law that refers to such section for a definition of program 
     eligibility.
       ``(iv) A decision issued pursuant to clause (iii) shall--
       ``(I) be made available to all parties to the proceeding;
       ``(II) be published in full text; and
       ``(III) include findings of fact and conclusions of law, 
     with specific reasons supporting such findings and 
     conclusions, on each material issue of fact and law of 
     decisional significance regarding the disposition of the 
     protest.
       ``(v) A decision issued pursuant to clause (iii) shall be 
     considered a final agency action, and shall be subject to 
     judicial review under section 553 of title 5, United States 
     Code.
       ``(vi) If a firm engages in a pattern of misrepresentations 
     regarding the status of the firm in violation of section 
     16(d)(1), the Administration or the aggrieved executive 
     agency shall initiate an action to impose an appropriate 
     penalty under section 16(d)(2).''.

     SEC. 212. CONFORMING AMENDMENT.

       Section 7(j)(11)(F) of the Small Business Act (15 U.S.C. 
     636(j)(11)(F)) is amended by--
       (1) striking clause (vii); and
       (2) redesignating clause (viii) as clause (vii).
           TITLE III--EXPANDING SUBCONTRACTING OPPORTUNITIES

     SEC. 301. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING 
                   CONTRACTS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended--
       (1) in paragraph (4), by striking subparagraphs (A) through 
     (D) and inserting the following:
       ``(4)(A) Each solicitation for the award of a contract (or 
     subcontract) with an anticipated value of $1,000,000, in the 
     case of a contract for construction (including repair, 
     alteration, or demolition of existing construction) or 
     $500,000, in the case of a contract for all other types of 
     services or supplies, that can reasonably be expected to 
     offer opportunities for subcontracting, shall--
       ``(i) in the case of a Federal contract to be competitively 
     awarded, include solicitation provisions described in 
     subparagraph (B);
       ``(ii) in the case of a Federal contract to be 
     noncompetitively awarded, require submission and acceptance 
     of a subcontracting plan pursuant to subparagraph (C); and
       ``(iii) in the case of a subcontract award, require 
     submission and acceptance of a subcontracting plan pursuant 
     to subparagraph (D).
       ``(B) With respect to subcontract participation by small 
     business concerns and small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals, the solicitation shall--
       ``(i) specify minimum percentages for subcontract 
     participation for an offer to be considered responsive 
     whenever practicable;
       ``(ii) assign a weight of not less than the numerical 
     equivalent of 5 percent of the total of all evaluation 
     factors to a contract award evaluation factor that recognizes 
     incrementally higher subcontract participation rates in 
     excess of the minimum percentages;
       ``(iii) require the successful offeror to submit a 
     subcontracting plan that incorporates the information 
     described in paragraph (6); and
       ``(iv) assign a significant weight in any evaluation of 
     past performance by the offerors in attaining subcontract 
     participation goals.
       ``(C)(i) Each small business concern apparent successful 
     offeror shall negotiate--
       ``(I) a goal for the participation of small business 
     concerns and for the participation of small business concerns 
     owned and controlled by socially and economically 
     disadvantaged individuals; and
       ``(II) a plan for the attainment of the goals that 
     incorporates the information prescribed in paragraph (6).
       ``(ii) The goals and plan shall reflect the maximum 
     practicable opportunity for participation of small business 
     concerns in the performance of the contract, considering the 
     matters described in subparagraph (F)(iii). If, within the 
     time limits prescribed in the Federal acquisition 
     regulations, the apparent successful offeror fails to 
     negotiate such a subcontracting plan, such offeror shall be 
     ineligible for contract award.
       ``(D) An apparent subcontract awardee shall negotiate with 
     the prime contractor (or higher-tier subcontractor) a goal 
     for the participation of small business concerns and for the 
     participation of small business concerns owned and controlled 
     by socially and economically disadvantaged individuals, and a 
     plan for the attainment of those goals which incorporates the 
     information prescribed in paragraph (6). Such goals and plan 
     shall reflect the maximum practicable opportunity for 
     participation of such small business concerns in the 
     performance of the contract, considering the matters 
     described in subparagraph (F)(iii).'';
       (2) by striking paragraph (5) and inserting the following:
       ``(5) [Reserved].''; and
       (3) in paragraph (6)--
       (A) by redesignating subparagraphs (B) through (F) as 
     subparagraphs (C) through (G), respectively; and
       (B) by inserting the following new subparagraph (B):
       ``(B)(i) a listing of the small business subcontractors 
     (including suppliers) who have actual or contingent awards 
     for participation in the performance of the contract, 
     identifying the work to be performed and the anticipated 
     award value of the subcontracts; and
       ``(ii) assurances that the listing of small business 
     subcontractors described in clause (i) will be regularly 
     revised to identify firms that have been removed from or 
     substituted for previously listed firms, and annotated to 
     reflect the reasons for any removal or substitution;''.

     SEC. 302. SUBCONTRACTING GOALS FOR CERTAIN SMALL BUSINESS 
                   CONCERNS.

       Section 8(d)(7) of the Small Business Act (15 U.S.C. 
     637(d)(7)) is amended to read as follows:
       ``(7)(A) Except as provided in subparagraph (B), paragraphs 
     (4), (5), and (6) shall not apply to offerors who are small 
     business concerns.
       ``(B) A small business concern owned and controlled by 
     socially and economically disadvantaged individuals shall be 
     required to negotiate a subcontracting plan for the use of 
     emerging small business concerns owned and controlled by 
     socially and economically disadvantaged individuals, if--
       ``(i) the prime contract was awarded pursuant to--
       ``(I) subsection (a) or (c) of section 8;
       ``(II) section 2323 of title 10, United States Code; or
       ``(III) any law that authorizes the award of a Federal 
     contract as the result of a competition restricted to small 
     business concerns owned and controlled by socially and 
     economically disadvantaged individuals as defined in section 
     8(d)(3)(C);
       ``(ii) the anticipated total value of the contract exceeds 
     $20,000,000; and
       ``(iii) subcontracting opportunities are expected.''.

     SEC. 303. SMALL BUSINESS PARTICIPATION GOALS.

       Section 15(g)(1) of the Small Business Act (15 U.S.C. 
     644(g)(1)) is amended by striking ``20 percent'' and 
     inserting ``25 percent''.

     SEC. 304. IMPROVED NOTICE OF SUBCONTRACTING OPPORTUNITIES.

       (a) Use of the Commerce Business Daily Authorized.--Section 
     8 of the Small Business Act (15 U.S.C. 637) is amended by 
     adding at the end the following new subsection:
       ``(k) Notices of Subcontracting Opportunities.--
       ``(1) In general.--Notices of subcontracting opportunities 
     may be submitted for publication in the Commerce Business 
     Daily by--
       ``(A) a business concern awarded a contract by an executive 
     agency subject to subsection (e)(1)(C); and
       ``(B) a business concern which is a subcontractor or 
     supplier (at any tier) to a contractor required to have a 
     subcontracting plan pursuant to subsection (d) having a 
     subcontracting opportunity in excess of $100,000.
       ``(2) Contents of notice.--The notice of a subcontracting 
     opportunity shall include--
       ``(A) a description of the business opportunity that is 
     comparable to the description specified in paragraphs (1), 
     (2), (3), and (4) of subsection (f); and
       ``(B) the due date for the receipt of offers.''.
       (b) Regulations Required.--The Federal Acquisition 
     Regulation shall be amended to provide uniform implementation 
     of the amendments made by this section.
       (c) Conforming Amendment.--Section 8(e)(1)(C) of the Small 
     Business Act (15 U.S.C. 637(e)(1)(C)) is amended by striking 
     ``$25,000'' each place it appears and inserting ``$100,000''.
               TITLE IV--REPEALS AND TECHNICAL AMENDMENTS

                            PART A--REPEALS

     SEC. 401. LOAN PROGRAM SUPERSEDED BY SECTION 7(a) LOAN 
                   PROGRAM.

       (a) In General.--Section 7(i) of the Small Business Act (15 
     U.S.C. 636(i)) is amended to read as follows:
       ``(i) [Reserved].''.
       (b) Conforming Amendments.--The Small Business Act (15 
     U.S.C. 601 et seq.) is amended--
       (1) in section 2(d)(1), by striking ``sections 7(i) and 
     7(j)'' and inserting ``section 7(j)'';
       (2) in section 4(c)(2), by striking ``7(i),'';
       (3) in section 5(e)(3), by striking ``sections 7(a)(4)(C) 
     and 7(i)(1)'' and inserting ``section 7(a)(4)(C)'';
       (4) in section 7(j), by striking ``sections 7(i), 7(j)(10), 
     and 8(a)'' each place it appears and inserting ``paragraph 
     (10) and section 8(a)''; and
       (5) in section 7(k), by striking ``sections 7(i), 7(j)(10), 
     and 8(a)'' and inserting ``subsection (j)(10) and section 
     8(a)''.

     SEC. 402. SUPERSEDED LOAN PROGRAM RELATING TO ENERGY.

       (a) In General.--Section 7(l) of the Small Business Act (15 
     U.S.C. 636(l)) is amended to read as follows:
       ``(l) [Reserved].''.
       (b) Conforming Amendments.--Section 4(c)(2) of the Small 
     Business Act (15 U.S.C. 601 et seq.) is amended by striking 
     ``7(l),''.

     SEC. 403. EMPLOYEE TRAINING PROGRAM OF LIMITED SCOPE.

       Section 15(j)(13)(E) of the Small Business Act (15 U.S.C. 
     644(j)(13)(E)) is amended to read as follows:
       ``(E) [Reserved].''.

     SEC. 404. EXPIRED PROVISION.

       Section 8(a)(2) of the Small Business Act (15 U.S.C. 
     637(a)(2)) is amended to read as follows:
       ``(2) [Reserved].''.

     SEC. 405. EXPIRED DIRECTION TO THE ADMINISTRATION.

       Section 303(f) of the Business Opportunity Development 
     Reform Act of 1988 (15 U.S.C. 637 note) is repealed.

                      PART B--TECHNICAL AMENDMENTS

     SEC. 411. TECHNICAL AMENDMENTS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 8(d)(10)(C) (15 U.S.C. 637(d)(10)(C)), by 
     striking ``in the case contractors'' and inserting ``in the 
     case of contractors'';
       (2) in section 10--
       (A) in subsection (a), by striking ``the Senate Select 
     Committee on Small Business''; and
       (B) in subsection (b), by striking ``to the Senate Select 
     Committee on Small Business, and to the Committee on Small 
     Business of the House of Representatives'' and inserting ``to 
     the Committees on Small Business of the Senate and House of 
     Representatives''; and
       (3) in section 15(g)(1)--
       (A) in the first sentence, by striking ``The President'' 
     and inserting ``(A) The President'';
       (B) by striking the second and third sentences and 
     inserting the following:
       ``(B) The Governmentwide goals established pursuant to 
     subparagraph (A) shall be--
       ``(i) for small business concerns, 20 percent of the total 
     prime contracts for the fiscal year; and
       ``(ii) for small business concerns owned and controlled by 
     socially and economically disadvantaged individuals, 8 
     percent of the total value of all prime contracts and 
     subcontracts for the fiscal year.'';
       (C) in the fourth sentence, by striking ``Notwithstanding 
     the Government-wide goal'' and inserting the following:
       ``(C) Notwithstanding the Governmentwide goal'';
     and
       (D) in the fifth sentence, by striking ``The 
     Administration'' and inserting the following:
       ``(D) The Administration''.
                          TITLE V--DEFINITIONS

     SEC. 501. HISTORICALLY UNDERUTILIZED BUSINESSES.

       (a) Definition.--Section 8(a)(4)(A) of the Small Business 
     Act (15 U.S.C. 637(a)(4)(A)) is amended by striking 
     ``socially and economically disadvantaged small business 
     concern'' and inserting ``historically underutilized 
     business''.
       (b) Technical Amendment.--Section 9(j)(2)(F) of the Small 
     Business Act (15 U.S.C. 638(j)(2)(F)) is amended by striking 
     ``socially and economically disadvantaged small business 
     concerns, as defined in section 8(a)(A)'' and inserting 
     ``small business concerns owned and controlled by socially 
     and economically disadvantaged individuals''.

     SEC. 502. EMERGING SMALL BUSINESS CONCERN.

       (a) In General.--Section 3 of the Small Business Act (15 
     U.S.C. 631) is amended by adding at the end the following new 
     subsection:
       ``(q) Emerging Small Business Concern.--For purposes of 
     sections 8 and 15, the term `emerging small business concern' 
     means a small business concern the size of which is less than 
     or equal to 25 percent of the numerical size standard for--
       ``(1) in the case of a contracting opportunity being 
     awarded by the Government, the standard industrial 
     classification code assigned by a contracting officer; or
       ``(2) in all other cases, the standard industrial 
     classification that encompasses the principal line of 
     business of the business concern.''.
       (b) Delayed Applicability to the Small Business 
     Competitiveness Demonstration Program.--For the purposes of 
     the Small Business Competitiveness Demonstration Program, the 
     amendment made by subsection (a) shall not supersede the 
     definition of ``emerging small business concern'' provided in 
     section 718(b) of the Small Business Competitiveness 
     Demonstration Program Act of 1988.
        TITLE VI--REGULATORY IMPLEMENTATION AND EFFECTIVE DATES

           PART A--ASSURING TIMELY REGULATORY IMPLEMENTATION

     SEC. 601. DEADLINES FOR ISSUANCE OF REGULATIONS.

       (a) Proposed Regulations.--Proposed amendments to the 
     Federal Acquisition Regulation or proposed Small Business 
     Administration regulations shall be published not later than 
     120 days after the date of enactment of this Act for the 
     purpose of obtaining public comment pursuant to either 
     section 22 of the Office of Federal Procurement Policy Act or 
     chapter 5 of title 5, United States Code, as appropriate. The 
     public shall be afforded not less than 60 days to submit 
     comments.
       (b) Final Regulations.--Final regulations shall be 
     published and become effective not later than 270 days after 
     the date of enactment of this Act.

     SEC. 602. REGULATORY IMPLEMENTATION OF PRIOR LEGISLATION.

       (a) Proposed Regulations.--Proposed amendments to the 
     Federal Acquisition Regulation or the Small Business 
     Administration regulations pertaining to the statutory 
     provisions listed in subsection (c) shall be published not 
     later than 30 days after the date of enactment of this Act 
     for the purpose of obtaining public comment pursuant to 
     either section 22 of the Office of Federal Procurement Policy 
     Act or chapter 5 of title 5, United States Code, as 
     appropriate. The public shall be afforded not less than 60 
     days to submit comments.
       (b) Final Regulations.--Final regulations implementing the 
     amendments made by this Act shall be published and shall take 
     effect not later than 120 days after the date of enactment of 
     this Act.
       (c) Delayed Regulations.--
       (1) Section 203 of the Small Business Administration 
     Reauthorization and Amendments Act of 1990 (15 U.S.C. 637 
     note; 104 Stat. 2818).
       (2) Section 221 of the Small Business Credit and Business 
     Opportunity Enhancement Act of 1992 (15 U.S.C. 636 note; 106 
     Stat. 999).
       (3) Section 222 of the Small Business Credit and Business 
     Opportunity Enhancement Act of 1992 (15 U.S.C. 632 note; 106 
     Stat. 999).

                        PART B--EFFECTIVE DATES

     SEC. 611. EFFECTIVE DATES.

       (a) Effective Date of Act.--Except as provided in 
     subsection (b), this Act shall take effect on the date of the 
     enactment of this Act.
       (b) Amendments Requiring Implementing Regulations.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this Act which require the issuance of 
     regulations shall take effect on the date on which final 
     implementing regulations are prescribed in accordance with 
     section 601.
       (2) Exceptions.--The amendments made by sections 101, 102, 
     111, 112, 114, 115, 122, 133, 134, 135, 136, 138, 141, 142, 
     143, 161, 162, and 211 shall take effect on the date of 
     enactment of this Act.

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