[Congressional Record Volume 143, Number 118 (Tuesday, September 9, 1997)]
[Senate]
[Pages S9023-S9025]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE SMALL BUSINESS REAUTHORIZATION ACT OF 1997

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                  BOND (AND KERRY) AMENDMENT NO. 1124

  Mr. BOND (for himself and Mr. Kerry) proposed an amendment to the 
bill (S. 1139) to reauthorize the programs of the Small Business 
Administration, and for other purposes, as follows:

       At the end of Section 201, insert the following:
       ``(d) Technical Assistance Grants.--Section 7(m)(4)(E) of 
     the Small Business Act (15 U.S.C. 636(m)(4)(E)) is amended--
       ``(1) by inserting `(i)' before `Each intermediary'.
       ``(2) by striking `15' and inserting `25',
       ``(3) by adding at the end of the paragraph, `(ii) The 
     intermediary may expend up to 25% of the funds received under 
     paragraph (1)(B)(ii) to enter third party contracts for the 
     provision of technical assistance.' ''
       At the end of Section 504, insert the following new 
     section:
       ``Sec. 505. Asset Sales.--in connection with the 
     Administration's implementation of a program to sell to the 
     private sector loans and other assets held by the 
     Administration, the Administration shall provide to the 
     Committees on Small Business in the Senate and House of 
     Representatives a copy of the draft and final plans 
     describing the sale and the anticipated benefits resulting 
     from such sale.''
       On page 76, line 1, strike ``Administration'' and add the 
     following: ``the technical and environmental compliance 
     assistance programs established in each state under section 
     507 of the Clean Air Act Amendments of 1970, or state 
     pollution prevention programs.''.
       On page 76, line 16, strike ``regulations.'' and insert the 
     following paragraph: ``regulation including cooperating with 
     the technical and environmental compliance assistance 
     programs established in each state under section 507 of the 
     Clean Air Act Amendments of 1970 or state pollution 
     prevention programs in the provision of counseling and 
     technology development to help small businesses find 
     solutions for complying with environmental regulations.''.
       On page 16, line 8, after ``used'' add the following ``to 
     provide intensive management, marketing and technical 
     assistance as well as''.
       At the appropriate place in the bill, add the following new 
     section:

     SEC. 506. SMALL BUSINESS EXPORT PROMOTION.

       (a) In General.--Section 21(c)(3) of the Small Business Act 
     (15 U.S.C. 648(c)(3)) is amended--
       (1) in subparagraph (Q), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (R) the following:
       ``(S) providing small business owners with access to a wide 
     variety of export-related information by establishing on-line 
     computer linkages between small business development centers 
     and an international trade data information network with ties 
     to the Export Assistance Center program.''.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out section 21(c)(3)(S) of the 
     Small Business Act (15 U.S.C. 648(c)(3)(S)), as added by this 
     section, $1,500,000 for each fiscal years 1998 and 1999.
       On page 28, line 2, add the following new subsection:
       ``(E) Collateral requirements.--Adequacy of collateral 
     provided by the small business shall be one factor evaluated 
     in the credit determination. Collateral provided by the small 
     business concern generally will include a subordinate lien 
     position on the property being financed, and additional 
     collateral may be required in a case-by-case basis, as 
     determined by the Administration.''
       Strike out sections 411 through 418 and insert in lieu 
     thereof the following:

     SEC. 411. CONTRACT BUNDLING.

       Section 2 of the Small Business Act (15 U.S.C. 631) is 
     amended by adding at the end the following:
       ``(j) In complying with the statement of congressional 
     policy expressed in subsection (a), relating to fostering the 
     participation of small business concerns in the contracting 
     opportunities of the Government, each Federal agency, to the 
     maximum extent practicable, shall--
       ``(1) comply with congressional intent to foster the 
     participation of small business concerns as prime 
     contractors, subcontractors, and suppliers;
       ``(2) structure its contracting requirements to facilitate 
     competition by and among small business concerns, taking all 
     reasonable steps to eliminate obstacles to their 
     participation; and
       ``(3) avoid unnecessary and unjustified bundling of 
     contract requirements that precludes small business 
     participation in procurements as prime contractors.''.

     SEC. 412. DEFINITION OF CONTRACT BUNDLING.

       Section 3 of the Small Business Act (15 U.S.C. 632) is 
     amended by adding at the end the following:
       ``(o) Definitions of Bundling of Contract Requirements and 
     Related Terms.--In this Act--
       ``(1) The term `bundling of contract requirements' means 
     consolidating two or more procurement requirements for goods 
     or services previously provided or performed under separate 
     smaller contracts into a solicitation of offers for a single 
     contract that is likely to be unsuitable for award to a 
     small-business concern due to--
       ``(A) the diversity, size, or specialized nature of the 
     elements of the performance specified;

[[Page S9024]]

       ``(B) the aggregate dollar value of the anticipated award;
       ``(C) the geographical dispersion of the contract 
     performance sites; or
       ``(D) any combination of the factors described in 
     subparagraphs (A), (B), and (C).
       ``(2) The term `separate smaller contract', with respect to 
     a bundling of contract requirements, means a contract that 
     has been performed by one or more small business concerns or 
     was suitable for award to one or more small business 
     concerns.
       ``(3) The term `bundled contract' means a contract that is 
     entered into to meet requirements that are consolidated in a 
     bundling of contract requirements.''.

     SEC. 413. ASSESSING PROPOSED CONTRACT BUNDLING.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by inserting after subsection (d) the 
     following new subsection (e):
       ``(e) Procurement Strategies; Contract Bundling.--
       ``(1) In general.--To the maximum extent practicable, 
     procurement strategies used by the various agencies having 
     contracting authority shall facilitate the maximum 
     participation of small business concerns as prime 
     contractors, subcontractors, and suppliers.
       ``(2) Market research.--
       ``(A) In general.--Before proceeding with an acquisition 
     strategy that could lead to a contract containing 
     consolidated procurement requirements, the head of an agency 
     shall conduct market research to determine whether 
     consolidation of the requirements is necessary and justified.
       ``(B) Factors.--For purposes of subparagraph (A), 
     consolidation of the requirements may be determined as being 
     necessary and justified if, as compared to the benefits that 
     would be derived from contracting to meet those requirements 
     if not consolidated, the Federal Government would derive from 
     the consolidation measurably substantial benefits, including 
     any combination of benefits that, in combination, are 
     measurably substantial. Benefits described in the preceding 
     sentence may include the following:
       ``(i) Cost savings.
       ``(ii) Quality improvements.
       ``(iii) Reduction in acquisition cycle times.
       ``(iv) Better terms and conditions.
       ``(v) Any other benefits.
       ``(C) Reduction of costs not determinative.--The reduction 
     of administrative or personnel costs alone shall not be a 
     justification for bundling of contract requirements unless 
     the cost savings are expected to be substantial in relation 
     to the dollar value of the procurement requirements to be 
     consolidated.
       ``(3) Strategy specifications.--If the head of a 
     contracting agency determines that a proposed procurement 
     strategy for a procurement involves a substantial bundling of 
     contract requirements, the proposed procurement strategy 
     shall--
       ``(A) identify specifically the benefits anticipated to be 
     derived from the bundling of contract requirements;
       ``(B) set forth an assessment of the specific impediments 
     to participation by small business concerns as prime 
     contractors that result from the bundling of contract 
     requirements and specify actions designed to maximize small 
     business participation as subcontractors (including 
     suppliers) at various tiers under the contract or contracts 
     that are awarded to meet the requirements; and
       ``(C) include a specific determination that the anticipated 
     benefits of the proposed bundled contract justify its use.
       ``(4) Contract teaming.--In the case of a solicitation of 
     offers for a bundled contract that is issued by the head of 
     an agency, a small-business concern may submit an offer that 
     provides for use of a particular team of subcontractors for 
     the performance of the contract. The head of the agency shall 
     evaluate the offer in the same manner as other offers, with 
     due consideration to the capabilities of all of the proposed 
     subcontractors. When a small business concern teams under 
     this paragraph, it shall not affect its status as a small 
     business concern for any other purpose.''.
       (b) Administration Review.--The third sentence of 
     subsection (a) of such section is amended--
       (1) by inserting after ``discrete construction projects,'' 
     the following: ``or the solicitation involves an unnecessary 
     or unjustified bundling of contract requirements, as 
     determined by the Administration,'';
       (2) by striking out ``or (4)'' and inserting in lieu 
     thereof ``(4)''; and
       (3) by inserting before the period at the end the 
     following: ``, or (5) why the agency has determined that the 
     bundled contract (as defined in section 3(o)) is necessary 
     and justified''.
       (c) Responsibilities of Agency Small Business Advocates.--
     Subsection (k) of such section is amended--
       (1) by redesignating paragraphs (5) through (9) as 
     paragraphs (6) through (10), respectively; and
       (2) by inserting after paragraph (4) the following:
       ``(5) identify proposed solicitations that involve 
     significant bundling of contract requirements, and work with 
     the agency acquisition officials and the Administration to 
     revise the procurement strategies for such proposed 
     solicitations where appropriate to increase the probability 
     of participation by small businesses as prime contractors, or 
     to facilitate small business participation as subcontractors 
     and suppliers, if a solicitation for a bundled contract is to 
     be issued;''.

     SEC. 414. REPORTING OF BUNDLED CONTRACT OPPORTUNITIES.

       (a) Data Collection Required.--The Federal Procurement Data 
     System described in section 6(d)(4)(A) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall 
     be modified to collect data regarding bundling of contract 
     requirements when the contracting officer anticipates that 
     the resulting contract price, including all options, is 
     expected to exceed $5,000,000. The data shall reflect a 
     determination made by the contracting officer regarding 
     whether a particular solicitation constitutes a contract 
     bundling.
       (b) Definitions.--In this section, the term ``bundling of 
     contract requirements'' has the meaning given that term in 
     section 3(o) of the Small Business Act (15 U.S.C. 632(o)) (as 
     added by section 412 of this title).

     SEC. 415. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING 
                   CONTRACTS.

       Section 8(d)(4) of the Small Business Act (15 U.S.C. 
     637(d)(4)) is amended by adding at the end the following:
       ``(G) The following factors shall be designated by the 
     Federal agency as significant factors for purposes of 
     evaluating offers for a bundled contract where the head of 
     the agency determines that the contract offers a significant 
     opportunity for subcontracting:
       ``(i) A factor that is based on the rate provided under the 
     subcontracting plan for small business participation in the 
     performance of the contract.
       ``(ii) For the evaluation of past performance of an 
     offeror, a factor that is based on the extent to which the 
     offeror attained applicable goals for small business 
     participation in the performance of contracts.''.

     SEC. 416. 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:
       ``(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 such contractor having a 
     subcontracting opportunity in excess of $10,000.
       ``(2) Content 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 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 that term appears and inserting 
     ``$100,000''.

     SEC. 417. DEADLINES FOR ISSUANCE OF REGULATIONS.

       (a) Proposed Regulations.--Proposed amendments to the 
     Federal Acquisition Regulation or proposed Small Business 
     Administration regulations under this subtitle and the 
     amendments made by this subtitle 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 section 22 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     418b), 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 not later than 270 days after the date of enactment 
     of this Act. The effective date for such final regulations 
     shall be not less than 30 days after the date of publication.
       At an appropriate place, insert the following:

     SEC. ____. DEFENSE LOAN AND TECHNICAL ASSISTANCE PROGRAM.

       (a) DELTA Program Authorized.--
       (1) In general.--The Administrator of the Small Business 
     Administration may administer the Defense Loan and Technical 
     Assistance program in accordance with the authority and 
     requirements of this section.
       (2) Expiration of authority.--The authority of the 
     Administrator to carry out the DELTA program under paragraph 
     (1) shall terminate when the funds referred to in subsection 
     (g)(1) have been expended.
       (3) DELTA program defined.--In this section, the terms 
     ``Defense Loan and Technical Assistance program'' and ``DELTA 
     program'' mean the Defense Loan and Technical Assistance 
     program that has been established by a memorandum of 
     understanding entered into by the Administrator and the 
     Secretary of Defense on June 26, 1995.
       (b) Assistance.--
       (1) Authority.--Under the DELTA program, the Administrator 
     may assist small business concerns that are economically 
     dependent on defense expenditures to acquire dual-use 
     capabilities.
       (2) Forms of assistance.--Forms of assistance authorized 
     under paragraph (1) are as follows:
       (A) Loan guarantees.--Loan guarantees under the terms and 
     conditions specified under this section and other applicable 
     law.

[[Page S9025]]

       (B) Nonfinancial assistance.--Other forms of assistance 
     that are not financial.
       (c) Administration of Program.--In the administration of 
     the DELTA program under this section, the Administrator 
     shall--
       (1) process applications for DELTA program loan guarantees;
       (2) guarantee repayment of the resulting loans in 
     accordance with this section; and
       (3) take such other actions as are necessary to administer 
     the program.
       (d) Selection and Eligibility Requirements for DELTA Loan 
     Guarantees.--
       (1) In general.--The selection criteria and eligibility 
     requirements set forth in this subsection shall be applied in 
     the selection of small business concerns to receive loan 
     guarantees under the DELTA program.
       (2) Selection criteria.--The criteria used for the 
     selection of a small business concern to receive a loan 
     guarantee under this section are as follows:
       (A) The selection criteria established under the memorandum 
     of understanding referred to in subsection (a)(3).
       (B) The extent to which the loans to be guaranteed would 
     support the retention of defense workers whose employment 
     would otherwise be permanently or temporarily terminated as a 
     result of reductions in expenditures by the United States for 
     defense, the termination or cancellation of a defense 
     contract, the failure to proceed with an approved major 
     weapon system, the merger or consolidation of the operations 
     of a defense contractor, or the closure or realignment of a 
     military installation.
       (C) The extent to which the loans to be guaranteed would 
     stimulate job creation and new economic activities in 
     communities most adversely affected by reductions in 
     expenditures by the United States for defense, the 
     termination or cancellation of a defense contract, the 
     failure to proceed with an approved major weapon system, the 
     merger or consolidation of the operations of a defense 
     contractor, or the closure or realignment of a military 
     installation.
       (D) The extent to which the loans to be guaranteed would be 
     used to acquire (or permit the use of other funds to acquire) 
     capital equipment to modernize or expand the facilities of 
     the borrower to enable the borrower to remain in the national 
     technology and industrial base available to the Department of 
     Defense.
       (3) Eligibility requirements.--To be eligible for a loan 
     guarantee under the DELTA program, a borrower must 
     demonstrate to the satisfaction of the Administrator that, 
     during any 1 of the 5 preceding operating years of the 
     borrower, not less than 25 percent of the value of the 
     borrower's sales were derived from--
       (A) contracts with the Department of Defense or the 
     defense-related activities of the Department of Energy; or
       (B) subcontracts in support of defense-related prime 
     contracts.
       (e) Maximum Amount of Loan Principal.--The maximum amount 
     of loan principal for which the Administrator may provide a 
     guarantee under this section during a fiscal year may not 
     exceed $1,250,000.
       (f) Loan Guaranty Rate.--The maximum allowable guarantee 
     percentage for loans guaranteed under this section may not 
     exceed 80 percent.
       (g) Funding.--
       (1) In general.--The funds that have been made available 
     for loan guarantees under the DELTA program and have been 
     transferred from the Department of Defense to the Small 
     Business Administration before the date of the enactment of 
     this Act shall be used for carrying out the DELTA program 
     under this section.
       (2) Continued availability of existing funds.--The funds 
     made available under the second proviso under the heading 
     ``Research, Development, Test and Evaluation, Defense-Wide'' 
     in Public Law 103-335 (108 Stat. 2613) shall be available 
     until expended--
       (A) to cover the costs (as defined in section 502(5) of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan 
     guarantees issued under this section; and
       (B) to cover the reasonable costs of the administration of 
     the loan guarantees.
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                SESSIONS (AND OTHERS) AMENDMENT NO. 1125

  Mr. SESSIONS (for himself, Mr. Craig, and Mr. Faircloth) proposed an 
amendment to amendment No. 1078 proposed by Mr. Durbin to the bill, S. 
1061, supra; as follows:

       At the end of the amendment, add the following:
       Sec.  . (a) General Limitation.--Notwithstanding any other 
     provision of law, if any attorneys' fees are paid (on behalf 
     of attorneys for the plaintiffs) in connection with an action 
     maintained by a State against one or more tobacco companies 
     to recover tobacco-related medicaid expenditures or for other 
     causes of action involved in the settlement agreement, such 
     fees shall--
       (1) not be paid at a rate that exceeds $250 per hour; and
       (2) be limited to a total of $5,000,000.
       (b) Fee Arrangements.--Subsection (a) shall apply to 
     attorneys' fees provided for or in connection with an action 
     of the type described in such subsection under any--
       (1) court order;
       (2) settlement agreement;
       (3) contingency fee arrangement;
       (4) arbitration procedure;
       (5) alternative dispute resolution procedure (including 
     mediation); or
       (6) other arrangement providing for the payment of 
     attorneys' fees.
       (c) Expenses.--The limitation described in subsection (a) 
     shall not apply to any amounts provided for the attorneys' 
     reasonable and customary expenses.
       (d) Requirements.--No award of attorneys' fees shall be 
     made under any national tobacco settlement until the 
     attorneys involved have--
       (1) provided to the Governor of the appropriate State, a 
     detailed time accounting with respect to the work performed 
     in relation to any legal action which is the subject of the 
     settlement or with regard to the settlement itself; and
       (2) made public disclosure of the time accounting under 
     paragraph (1) and any fee agreements entered into, or fee 
     arrangements made, with respect to any legal action that is 
     the subject of the settlement.
       (e) Provision of Funds for Children's Health Research.--Any 
     amounts provided for attorneys' fees in excess of the 
     limitation applicable under this section shall be paid into 
     the Treasury for use by the National Institutes of Health for 
     research relating to children's health.
       (f) Effective Date.--The limitation on the payment of 
     attorneys' fees contained in this section shall become 
     effective on the date of enactment of any Act providing for a 
     national tobacco settlement.

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