Congressional Record, Volume 153 Issue 76 (Wednesday, May 9, 2007)

[Congressional Record Volume 153, Number 76 (Wednesday, May 9, 2007)]
[House]
[Pages H4720-H4734]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

SMALL BUSINESS FAIRNESS IN CONTRACTING ACT

The SPEAKER pro tempore. Pursuant to House Resolution 383 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the consideration of the bill, H.R. 1873.

{time} 1852

In the Committee of the Whole

Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the consideration of the bill
(H.R. 1873) to reauthorize the programs and activities of the Small
Business Administration relating to procurement, and for other
purposes, with Mr. Lincoln Davis of Tennessee in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered read the
first time.
The gentlewoman from New York (Ms. Velazquez) and the gentleman from
Ohio (Mr. Chabot) each will control 30 minutes.
The Chair recognizes the gentlewoman from New York.
Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, there is no question that the Federal marketplace
continues to grow at record rates. Just last year, the Federal
Government spent $417 billion on goods and services. While the
government's buying power is increasing, small businesses'
opportunities and access to this market is decreasing. With unfair
competition and the combining of government projects, entrepreneurs are
being shut out of the Federal market. Currently, the state of
procurement for small businesses is one that does more to create
barriers than it does to encourage participation.
What we have heard time and time again is that access to government
projects is out of the reach of small firms. The barriers in the way of
accessing this work is clear, among them, the bundling of contracts,
the lack of a strongly enforced small business contracting goal and
large firms receiving contracts intended for small firms.
For the past 6 years, the government has failed to meet its 23
percent small business contracting goal, costing entrepreneurs last
year alone as much as $4.5 billion in lost contracting opportunities.
With small businesses creating three out of every four new jobs in this
country, they deserve to compete on a level playing field for
government work. Small firms do not deserve to be left out of the
Federal marketplace but, instead, to be given every tool needed to
continue to spur economic growth.
The number one reason the small business contracting goal is not
being met is because of the bundling of contracts. Individual contracts
being combined works to exclude small firms from bidding on them and
often results in higher costs to taxpayers and decreased value for the
government. For every $1,800 awarded in a bundled contract, there is a
$33 decrease to small businesses. When contracts are bundled together
creating ``super-contracts,'' they become too large for entrepreneurs
to compete.
In 2002, the President pledged during the administration's
announcement of their small business agenda that, ``We're going to
insist we break down large Federal contracts so that small business
owners have got a fair shot at Federal contracting.'' This legislation
finally puts his words into action.
To create the illusion that the goal is being met, agencies are using
contracts awarded to large companies and including them toward their
small business contracting goal. In 2005, approximately $12 billion in
contracts were falsely counted. This gives the impression that agencies
are doing more work with small firms than they actually are.
Access to the Federal marketplace is an important mechanism for
growth for small businesses. If competition for government projects is
not fair, there is no way we can expect entrepreneurs to grow and
expand their ventures. This not only benefits entrepreneurs, but also
puts taxpayers' dollars to good use. For every dollar in contracts, $7
in revenue is generated for the Federal Government.
Clearly, large businesses have more resources than small firms.
Oftentimes they have access to more capital, can hire more staff and
have fewer barriers in the way of marketing and expanding their
companies. The last thing they need to be doing is taking contracts
intended for small businesses.
H.R. 1873 is a bipartisan effort introduced by Mr. Braley. I want to
commend Mr. Braley for his work on addressing small business
procurement issues and bringing this bill up for consideration.
This legislation will help open the marketplace for small business
contracts. It ensures that fair competition is enforced and that small
firms are given the opportunities they deserve to work with the Federal
Government.
With the government being the largest buyer of services and goods and
small businesses being the largest job creators, increased partnership
between these two is the best value for the taxpayer dollar, and not
only benefits entrepreneurs, but communities all across the country.
I strongly urge my colleagues to vote for the Small Business Fairness
in Contracting Act.
Mr. Chairman, I reserve the balance of my time.
Mr. CHABOT. Mr. Chairman, I yield myself such time as I may consume.
(Mr. CHABOT asked and was given permission to revise and extend his
remarks.)
Mr. CHABOT. Mr. Chairman, tonight I rise in support of H.R. 1873, the
Small Business Fairness in Contracting Act. As an original cosponsor of
this legislation, we worked closely with Chairwoman Velazquez and
Representative Braley to draft a good, bipartisan bill that passed the
Small Business Committee by voice vote and was cosponsored by nearly
all the members of the committee.
Our legislation was intended to reform the contracting process,
increase competition and provide a better value to the taxpayer. The
legislation also takes steps to provide greater opportunities to small
businesses and addresses problems with the Federal procurement
database.
Promoting competition and increasing suppliers depends on the active
participation of small businesses, the fastest growing segment of the
American economy.

{time} 1900

Without small business's participation, the government is forced to
rely on fewer and fewer businesses to satisfy its need for goods and
services. This concentration is bad for the government and worse for
the tax-paying public. For that reason, utilization of small businesses
to fulfill government contracts has been a long-standing policy, a
policy that is neither Republican nor Democrat.
Unfortunately, the bill we are considering today, while making many
important reforms, is watered down from the original version we
introduced.
I commend Chairman Velazquez and her staff for working tirelessly to
try and protect the sound work done by the Committee on Small Business.
I also want to thank the Rules Committee, and especially Chairwoman
Slaughter and Ranking Member Dreier, for allowing me to offer three
important amendments, along with three of my Democratic colleagues, to
restore significant provisions of the original bill.
One amendment that I proposed with Mr. Sestak, however, was not ruled
in order. This amendment would have restored a provision of our
original Small Business Committee bill related to contract bundling.
Contract bundling is a procurement strategy that represents a potential
obstacle to small business participation in the Federal marketplace.
Contract bundling allows Federal procurement officials to manage the
procurement process using fewer contracts. At times, contract bundling
may be appropriate. At other times, it may reduce competition by
combining multiple contracts for goods or services that could be
provided separately into a single contract that small businesses are
incapable of performing.
Nothing in our original bill as reported by the Committee on Small
Business would have completely prevented the Federal Government from
bundling contracts, nor is there anything in the bill that we are
debating

[[Page H4721]]

today that prevents contracts from being bundled. Instead, we take the
view that bundling can be beneficial if the government gets
substantial, measurable benefits in terms of better prices or higher
quality or critical delivery terms.
However, our original bill would have required that Federal
contracting officers examine their contracting strategies to ensure
that the government was receiving real benefits through bundled
contracts and also consider the potential loss of competition from
small businesses being excluded. Or as President Reagan might have put
it, trust but verify.
The bill we are debating now reduces the amount of contracts subject
to the trust but verify standard as compared to our original bill. It
does, however, represent an increase from current law in the number of
contracts that will be scrutinized. With that in mind and with the
amendments made in order, including a separate amendment by Mr. Sestak,
the bill moves us modestly in the right direction.
I would hope that as we proceed, and especially in conference, we
continue to strengthen the trust but verify standards relative to
bundled contracts.
While this may create more work for Federal contracting officers, it
also ensures that the Federal procurement process protects competition
in the long run while ensuring that the government benefits in the
short run from necessary bundled contracts.
As we work through the legislative process with the Senate, it is
important that a sensible mechanism exist for an independent arbiter to
resolve disputes between the SBA and the agency issuing a bundled
contract. It seems unfair that the SBA's only avenue of appeal is to
the agency that is doing the procurement. Would anybody be surprised to
learn that the administrator has never won an appeal on an agency head
on a disputed bundled contract? Not once.
Nor should the legislation as it works its way to final passage
substitute an appeals process by affected small businesses for that of
the Small Business Administrator. Requiring a small business to
challenge an agency's decision pits a David against a Goliath. But,
unlike the biblical account, Goliath usually win these battles.
In addition to the provisions on bundling, the bill we are
considering today increases the goals for prime Federal contracts to
small businesses. But in my estimation and why I offered amendments is
that the increase in the bill does not recognize the 10 percent growth
in the number of small businesses since 1997, the last time the goals
were raised. Nor does the modest increase from 23 to 25 percent
recognize substantial technological changes and the capacity of small
businesses to perform contracts overseas. Amendments we will be
considering will raise those standards to appropriate levels and
recognize the capacity of small businesses to perform work overseas.
In addition, I would ask the chairwoman that we work together to
remove a provision included in the bill by the Committee on Oversight
and Government Reform that treads on the sole jurisdiction of the
Committee on Small Business. I believe that sets a bad precedent for
future legislation in the House.
I also find that the provisions in title III of the bill are worthy
of support. I congratulate the Committee on Oversight and Government
Reform as well as members of the Committee on Small Business on working
to eradicate errors in critical Federal procurement databases. These
changes, although seemingly arcane, will ensure that contracting
officers award contracts intended to small businesses to actual small
businesses.
While this bill is not as strong as the version adopted by the Small
Business Committee, it nevertheless represents an improvement over
existing law. I will continue to work to further strengthen this bill
and to ensure that small businesses have their fair opportunity to
participate in the Federal procurement process
Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield to the gentleman from California
(Mr. Waxman), chairman of the Committee on Oversight and Government
Reform, such time as he may consume; and I want to take this
opportunity to thank him for his work on this legislation.
Mr. WAXMAN. Mr. Chairman, H.R. 1873, the Small Business Fairness in
Contracting Act, would make a number of improvements to the preferences
given small businesses in Federal contracts.
The bill is the product of much hard work by both the Small Business
Committee and the Oversight Committee and reflects our consensus view
on many important issues, and I would like to thank Chairwoman
Velazquez and the Small Business Committee for working with us to
address their legitimate concerns and to reach the correct balance in
this bill.
I would also like to commend Congressman Braley, a member of both the
Small Business and Oversight Committees, for his leadership on this
issue. I also thank the ranking member of the Oversight Committee,
Congressman Tom Davis.
The bill represents a delicate balance between appropriate assistance
for small businesses through the Federal acquisition system and the
overriding purpose of the system, which must always be to ensure that
taxpayers get the best value for their money.
The bill also starts us on the path of addressing the current
contracting preference enjoyed by Alaska Native Corporations. These
groups can be awarded Federal contracts of any size without
competition.
To address these concerns about ANC contracts and promote competition
in contracting, the bill includes a provision which would give Congress
until the end of the year to adopt legislation addressing sole-source
contracting by Alaska Native Corporations and economically
disadvantaged Indian tribes. If we fail to act during this
``placeholder'' period, the bill would then require the administration
to consult with Alaska Natives and Indian tribes to establish an
appropriate limit on the size of the sole-source awards to these
groups.
In crafting this provision, I have worked closely with the gentleman
from Michigan (Mr. Kildee), who is Democratic Chair of the
Congressional Native American Caucus; and at this time I yield to the
gentleman from Michigan (Mr. Kildee) for the purpose of engaging in a
colloquy.
Mr. KILDEE. I want to thank my chairman for yielding to engage in a
colloquy on a matter of great importance to Native Americans.
Congress has long been concerned about addressing the social ills
that plague our Native American communities which stem from the
policies of the United States that were designed to terminate tribal
nations and their culture.
While we cannot erase the deplorable history of Indian policy in the
United States, Congress has sought to honor the political status of
tribal governments by enacting a wide range of laws designed to promote
Indian self-determination and economic self-sufficiency. The entirety
of title 25 of the United States Code is a compilation of all Federal
laws relating to Indians that seek to achieve those goals.
Congress has established the Native 8(a) program in furtherance of
those Federal policies to foster strong economies in Native
communities. The program is an important tool which has significant
benefits to Native communities.
I understand that the authorizing committees have concerns relating
to the Native 8(a) program, and I thank Chairman Waxman for agreeing to
placeholder language at section 211 so we may continue our dialogue
with the participants of that program to find a permanent solution to
the committee's concern.
In addressing the committee's concerns, however, it is my strong
desire that we balance the interest of all parties and that any change
to that program take into account our trust relationship with tribal
nations and the communities they serve.
I thank the gentleman for yielding.
Mr. WAXMAN. I think the gentleman makes a number of excellent points
about the sorry history of Indian policy in the United States. I agree
with him that the intent of this provision is to start a dialogue which
can recognize the legitimate concerns of Alaska Natives and American
Indians, while at the same time preserving the integrity of the Federal
contracting process.

[[Page H4722]]

I congratulate the chairwoman of the Small Business Committee and
thank her for her willingness to work with us
Mr. CHABOT. Mr. Chairman, I continue to reserve the balance of my
time.
Ms. VELAZQUEZ. Mr. Chairman, I yield such time as he may consume to
the gentleman from Iowa (Mr. Braley), the sponsor of the bill and the
chairman of the Contracting and Technology Subcommittee of the Small
Business Committee.
Mr. BRALEY of Iowa. I thank the gentlewoman for yielding me this
time.
Last month, I introduced H.R. 1873, the Small Business Fairness in
Contracting Act. Today, I rise as a voice for small business owners
everywhere who want a fighting chance to compete for Federal contracts.
I would like to take a moment to thank Chairwoman Nydia Velazquez and
Ranking Member Steve Chabot. I am pleased H.R. 1873 has such strong
bipartisan support and is co-sponsored by nearly the entire Small
Business Committee.
Additionally, I would like to thank Oversight and Government Reform
Chairman Henry Waxman and Ranking Member Tom Davis for their prompt
consideration of this bill.
Finally, I would like to thank Rules Committee Chairwoman Louise
Slaughter and Ranking Member David Dreier for acting on this bill. It
is clear to me that members of all these committees understand the
important role small businesses play in our communities.
Over the past 5 years, government agencies have greatly increased the
practice known as contract bundling, oftentimes combining work that
small businesses could perform into giant packages that exceed small
firms' ability to compete for this work. During this same time, total
government contracting has increased by 60 percent, while the number of
small business contracts has decreased by 55 percent.
This is unacceptable; and that is why it is so important that today
we are considering the Small Business Fairness in Contracting Act,
sending a message to small businesses that this Congress is serious
about leveling the playing field for them by improving their
opportunities to compete for Federal contracts.
H.R. 1873 also increases competition in the contracting process,
which can lead to lower prices for the government.
As we know, small businesses are the number one job creators in this
country, and we must ensure that this engine remains not only healthy
but also has the support it needs to grow. It is essential to remove
the barriers blocking small businesses from entering the nearly $400
billion per year Federal marketplace.
Public support for this bill is broad and bipartisan. The Small
Business Fairness in Contracting Act was co-sponsored by 29
Representatives, 17 Democrats and 12 Republicans. H.R. 1873 has been
endorsed by the National Federation of Independent Business, the
Associated General Contractors, the National Small Business
Association, Women in Public Policy, the U.S. Women's Chamber of
Commerce, and the U.S. Hispanic Chamber of Commerce.
My State of Iowa ranks near the bottom in terms of government
contracting dollars awarded to small businesses. Even though 477 small
businesses in my district are registered with the Small Business
Administration, the dollar value of contracts awarded to those
businesses is a tiny fraction of the Federal contract pie. Everyone in
this House understands the important role that small businesses play in
each of our districts. Allowing them a fair opportunity to bid on
Federal contracts will bring economic vitality to our towns and cities.
I thank all of my colleagues who join me today in standing up for the
interests of small businesses in this country.
Mr. CHABOT. Mr. Chairman, we have no further speakers, and I yield
back the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I would like to close by saying that it
has been over a decade since a small business contracting bill has come
to the floor. Clearly, addressing the concerns of entrepreneurs in
regards to procurement is long overdue and much needed.
I just want to take this opportunity to thank Ranking Member Chabot
for all of his hard work and his collaboration in working on this
legislation. I also want to thank Mr. Braley and to take this
opportunity to thank the staff that worked on this bill.

{time} 1915

From the minority staff, Barry Pineles; from Mr. Braley's staff, Tom
Wolf and Mike Goodman; from Mr. Waxman's staff, Mark Stevens and Phil
Barnett; and from the majority staff, LeAnn Delaney and Melody Reis and
Russ Orban.
I strongly urge my colleagues to vote for the Small Business Fairness
in Contracting Act
Mr. HOLT. Mr. Chairman, I rise today in support of H.R. 1873, the
Small Business Fairness in Contracting Act.
Small businesses are a big part of the U.S. economy. In fact, small
businesses employ more than half of all private sector employees and
pay 45 percent of the total U.S. private payroll. New jobs come
disproportionately from small businesses, which generated 60 to 80
percent of new jobs in the past 10 years.
Although federal government contracting practices are required by law
to be supportive of small businesses, the bundling of contracts has
prevented many small businesses from being able to compete fairly. This
is a significant loss to small businesses, as federal contracts pay a
total of $400 billion annually to contractors. H.R. 1873 gives small
businesses a fair chance at competing for these contracts by preventing
the contract bundling that has excluded them from being considered. In
doing this, the Act also insures that taxpayer money is spent more
efficiently, as more competition for government contracts will
necessarily result in better use of public funds.
The Act further improves small business contracting practices by
creating a system by which small businesses and opportunities for small
businesses can be better catalogued and tracked. If a business has
grown and should no longer be considered small, we will know, and well
give priority to true small businesses. If a large business has not
subcontracted enough to small businesses, we will know, and we will
assist small businesses in finding these subcontracting opportunities.
When small businesses can compete fairly and are made aware of the
opportunities provided them, jobs are created, entrepreneurship
thrives, and the overall economy prospers. I therefore encourage my
colleagues to support this resolution.
Ms. HIRONO. Mr. Chairman, I rise in support of H.R. 1873, the Small
Business Fairness in Contracting Act.
This bill creates a competitive bid process in the federal
marketplace by restricting the ability of federal agencies to generate
contracts that are too large for small businesses to compete
effectively. Within the last 7 years, larger firms have benefited from
the bundling of contracts while the total number of contracts received
by small businesses has declined nationwide by 55 percent. H.R. 1873
increases the goal for small-business participation in federal
contracts to at least 25 percent and requires the Small Business
Administration to work with government agencies each fiscal year to
establish and meet contracting goals that benefit small businesses.
Small businesses represent the overwhelming majority of businesses in
Hawaii and play a vital role in economic growth for the state. H.R.
1873 will provide increased opportunities for Hawaii's small business
community to compete for federal contracts that formerly were bundled
and ended up going to larger out-of-state corporations.
Of course, this bill will help small businesses throughout the
country compete for their fair share of federally funded projects.
I urge my colleagues to support this measure.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise in strong support of
H.R. 1873, the Small Business Fairness in Contracting Act. From the
bodegas of the Bronx to your favorite family owned restaurant scattered
across the plains of small town America, small businesses are the
backbone of the American economy. These entities epitomize the spirit
of the American dream, and they speak to everything that is wonderful
about our society. Small businesses represent an opportunity for those
individuals who dare to dream, who take a chance, and who wish to
fulfill that entrepreneurial spirit that built this mighty Nation. I
find it interesting that we are giving this bill consideration in the
midst of a heated immigration debate, because one will find that a
significant number of immigrants start small businesses as a means to
realizing the American dream. They enrich the local community while
bringing in much needed tax revenue, the same revenue that helped build
New York City, Chicago, and Boston back at the turn of the 20th
century. Turning our focus back to H.R. 1873, the Small Business
Fairness in Contracting

[[Page H4723]]

Act, I rise in strong support of this legislation as it ensures that
the federal government maintains a strong commitment to small
businesses, as they try to remain competitive in a growing global
economy.
This legislation increases the government-wide goal for participation
by small-business concerns in all contracts awarded in a fiscal year to
no less than 25 percent, from the current 23 percent. This legislation
also increases the government-wide goal for procurement for small
disadvantaged and women-owned businesses to 8 percent from 5 percent.
The bill also requires each federal agency to submit to the SBA and
Congress a detailed plan outlining how the agency plans to meet its
small-business goals each fiscal year.
As a body, we the members of this 110th Congress have a duty to
protect the needs of the average American. By passing this legislation
we ensure the owners of small businesses across the country that the
110th Congress eagerly performed their duties.
Mr. LARSON of Connecticut. Mr. Chairman, I regret that I could not be
present today because of a family medical situation and I would like to
submit this statement for the record in support of H.R. 1873, the Small
Business Fairness in Contracting Act.
All too often mega contracts are too large for small business to
compete for in the federal marketplace. Last year, the federal
government spent more than $417 billion on goods and services in over 8
million contracts in 2006, of which small businesses won about $80
billion (22 percent). Of the $80 billion for small business contracts,
$12 billion was actually awarded to large businesses, not small
businesses.
For the past six years, the federal government has failed to meet its
23 percent small business contracting goal. The bill before the House
today would create a fair and open federal contracting system, that
would ensure all small businesses have an equal opportunity to secure
government contracts. This bill would increase the government-wide goal
for small-business participation in federal contracts, limit the
ability of federal agencies to bundle small projects into large
contracts, and require the Small Business Administration to take steps
to reduce erroneous entries in the government's contractor registry.
The Small Businesses Fairness in Contracting Act would require no less
than 25 percent, an increase from 23 percent, of all contracts be
awarded to small-business in a fiscal year. It would also increase the
government-wide goal for procurement for small disadvantaged and women-
owned businesses to 8 percent from 5 percent.
This bill is a vital step for America's 26 million small businesses,
including Connecticut's 341,000 small businesses. It is an investment
in our nation's small businesses. For every $1 invested, small
businesses will contribute $7 to the economy. I call upon my colleagues
to join me in supporting a bill that supports a vital national
interest--America's small businesses and economy.
Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of our time.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the amendment in the nature of a substitute
recommended by the Committee on Oversight and Government Reform,
printed in the bill, is considered as an original bill for the purpose
of amendment and is considered read.
The text of the committee amendment in the nature of a substitute is
as follows:

H.R. 1873

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Small
Business Fairness in Contracting Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Regulations.

TITLE I--CONTRACT BUNDLING

Sec. 101. Definitions of bundling of contract requirements and related
terms.
Sec. 102. Justification.
Sec. 103. Appeals.
Sec. 104. Third-party review.

TITLE II--INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND
SUBCONTRACTS

Sec. 201. Small business goal.
Sec. 202. Include overseas contracts in small business goal.
Sec. 203. Annual goal negotiation.
Sec. 204. Goal reasonableness.
Sec. 205. Usage of small companies in goal achievement.
Sec. 206. Annual plan for each agency explaining how agency will meet
small business goals.
Sec. 207. Making small businesses the first choice.
Sec. 208. Uniform metric for subcontracting achievements.
Sec. 209. Subcontracting database.
Sec. 210. National database.
Sec. 211. Review of subcontracting plans.
Sec. 212. Agency obligation for fulfilling contracting goals.

TITLE III--PROTECTION OF TAXPAYERS FROM FRAUD

Sec. 301. Small business size protest notification.
Sec. 302. Review of national registry.
Sec. 303. Recertification of compliance with size standards and
registration with Central Contractor Registry.

TITLE IV--AUTHORIZATION OF APPROPRIATIONS

Sec. 401. Authorization of appropriations.

SEC. 2. REGULATIONS.

(a) In General.--Not later than 180 days after the date of
the enactment of this Act--
(1) the Administrator of the Small Business Administration
shall promulgate regulations to implement this Act and the
amendments made by this Act; and
(2) the Federal Acquisition Regulation shall be revised to
implement this Act and the amendments made by this Act.
(b) Notice and Comment.--The regulations required by
subsection (a) shall be promulgated after opportunity for
notice and comment as required by section 553(b) of title 5,
United States Code.

TITLE I--CONTRACT BUNDLING

SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS
AND RELATED TERMS.

Section 3 of the Small Business Act (15 U.S.C. 632) is
amended by amending subsection (o) to read as follows:
``(o) Definitions of Bundling of Contract Requirements and
Related Terms.--For purposes of this Act:
``(1) Bundled contract.--
``(A) In general.--The term `bundled contract' means a
contract or order that is entered into to meet procurement
requirements that are consolidated in a bundling of contract
requirements, without regard to its designation by the
procuring agency or whether a study of the effects of the
solicitation on civilian or military personnel has been made.
``(B) Exceptions.--The term does not include--
``(i) a contract or order with an aggregate dollar value
below the dollar threshold specified in paragraph (4); or
``(ii) a contract or order that is entered into to meet
procurement requirements, all of which are exempted
requirements under paragraph (5).
``(2) Bundling of contract requirements.--
``(A) In general.--The term `bundling of contract
requirements' means the use of any bundling methodology to
satisfy 2 or more procurement requirements for new or
existing goods or services, including any construction
services, that is likely to be unsuitable for award to a
small business concern due to--
``(i) the diversity, size, or specialized nature of the
elements of the performance specified;
``(ii) the aggregate dollar value of the anticipated award;
``(iii) the geographical dispersion of the contract or
order performance sites; or
``(iv) any combination of the factors described in clauses
(i), (ii), and (iii).
``(B) Exceptions.--The term does not include--
``(i) the use of a bundling methodology for an anticipated
award with an aggregate dollar value below the dollar
threshold specified in paragraph (4); or
``(ii) the use of a bundling methodology to meet
procurement requirements, all of which are exempted
requirements under paragraph (5).
``(3) Bundling methodology.--The term `bundling
methodology' means--
``(A) a solicitation to obtain offers for a single contract
or order, or a multiple award contract or order;
``(B) a solicitation of offers for the issuance of a task
or a delivery order under an existing single or multiple
award contract or order; or
``(C) the creation of any new procurement requirement that
permits a consolidation of contract or order requirements.
``(4) Dollar threshold.--The term `dollar threshold'
means--
``(A) $65,000,000, if solely for construction services; and
``(B) $1,500,000, in all other cases.
``(5) Exempted requirements.--The term `exempted
requirement' means one or more of the following:
``(A) A procurement requirement solely for items that are
not commercial items (as the term `commercial item' is
defined in section 4(12) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12))).
``(B) A procurement requirement with respect to which a
determination that it is unsuitable for award to a small
business concern has previously been made by the agency.
However, the Administrator shall have authority to review and
reverse such a determination for purposes of this paragraph
and, if the Administrator does reverse that determination,
the term `exempted requirement' shall not apply to that
procurement requirement.
``(6) Procurement requirement.--The term `procurement
requirement' means a determination by an agency that a
specified good or service is needed to satisfy the mission of
the agency.''.

SEC. 102. JUSTIFICATION.

Section 15(a) of the Small Business Act (15 U.S.C. 644(a))
is amended--
(1) by striking ``is in a quantity or estimated dollar
value the magnitude of which renders small business prime
contract participation unlikely'' and inserting ``would now
be combined with other requirements for goods and services'';
(2) by striking ``(2) why delivery schedules'' and
inserting ``(2) the names, addresses and size

[[Page H4724]]

of the incumbent contract holders; (3) a description of the
industries that might be interested in bidding on the
contract requirements; (4) the number of small businesses
listed in the industry categories that could be excluded from
future bidding if the contract is combined or packaged; (5)
why delivery schedules'';
(3) by striking ``(3) why the proposed acquisition'' and
inserting ``(6) why the proposed acquisition'';
(4) by striking ``(4) why construction'' and inserting
``(7) why construction'';
(5) by striking ``(5) why the agency'' and inserting ``(8)
why the agency'';
(6) by striking ``justified.'' and inserting ``justified.
The statement shall also set forth the proposed procurement
strategy required by subsection (e) and, if applicable, the
specifications required by subsection (e)(3). Concurrently,
the statement shall be made available to the public,
including through dissemination in the Federal contracting
opportunities database.''; and
(7) by inserting after ``prime contracting opportunities.''
the following: ``If no notification of the procurement and
accompanying statement is received, but the Administrator
determines that there is cause to believe the contract
combines requirements or a contract (single or multiple
award) or task or delivery order for construction services or
includes unjustified bundling, then the Administrator can
demand that such a statement of work goods or services be
completed by the procurement activity and sent to the
Procurement Center Representative and the solicitation
process postponed for at least 10 days to allow the
Administrator to review the statement and make
recommendations as described in this section before the
procurement is continued.''.

SEC. 103. APPEALS.

Section 15(a) of the Small Business Act (15 U.S.C. 644(a))
is amended--
(1) by striking ``If a proposed procurement includes in its
statement'' and inserting ``If a proposed procurement would
negatively affect one or more small business concerns, or if
a proposed procurement includes in its statement''; and
(2) by inserting before ``Whenever the Administration and
the contracting procurement agency fail to agree,'' the
following: ``If a small business concern would be adversely
affected, directly or indirectly, by the procurement as
proposed, and that small business concern or a trade
association on behalf of that small business concern so
requests, the Administrator may, in the Administrator's
discretion, take action to further the interests of that
small business concern.''.

SEC. 104. THIRD-PARTY REVIEW.

Section 15(a) of the Small Business Act (15 U.S.C. 644(a))
is amended by striking the sentence beginning ``Whenever the
Administration and the contracting procurement agency fail to
agree,'' and inserting the following: ``Whenever the
Administrator and the contracting procurement agency fail to
agree, the Administrator shall submit the matter to the
Administrator of the Office of Federal Procurement Policy
within the Office of Management and Budget, who shall render
his decision regarding the matter not later than 10 days
after receiving the matter.''.

TITLE II--INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND
SUBCONTRACTS

SEC. 201. SMALL BUSINESS GOAL.

Section 15(g)(1) of the Small Business Act (15 U.S.C.
644(g)(1)) is amended by striking ``23 percent'' and
inserting ``30 percent''.

SEC. 202. INCLUDE OVERSEAS CONTRACTS IN SMALL BUSINESS GOAL.

Section 15(g) of the Small Business Act (15 U.S.C. 644(g))
is amended by adding at the end the following:
``(3) The procurement goals required by this subsection
apply to all procurement contracts, without regard to whether
the contract is for work within or outside the United
States.''.

SEC. 203. ANNUAL GOAL NEGOTIATION.

Section 15(g)(1) of the Small Business Act (15 U.S.C.
644(g)(1)) is amended by striking ``The President shall
annually establish Government-wide goals for procurement
contracts'' and inserting ``The President shall before the
close of each fiscal year establish new Government-wide
procurement goals for the following fiscal year for
procurement contracts''.

SEC. 204. GOAL REASONABLENESS.

Section 15(g)(1) of the Small Business Act (15 U.S.C.
644(g)(1)) is amended by striking ``Notwithstanding the
Government-wide goal, each agency shall have an annual goal''
and inserting ``Each agency shall have an annual goal, not
lower than the Government-wide goal,''.

SEC. 205. USAGE OF SMALL COMPANIES IN GOAL ACHIEVEMENT.

Section 15(g) of the Small Business Act (15 U.S.C. 644(g))
is amended by adding at the end the following:
``(4) For purposes of this subsection and subsection (h), a
small business concern shall be counted toward one additional
category goal only, even if that small business concern
otherwise qualifies under more than one category goal. In
this paragraph, the term `category goal' means a goal
described in paragraph (2).''.

SEC. 206. ANNUAL PLAN FOR EACH AGENCY EXPLAINING HOW AGENCY
WILL MEET SMALL BUSINESS GOALS.

Section 15(g) of the Small Business Act (15 U.S.C. 644(g))
is amended by adding at the end the following:
``(5) Before the beginning of each fiscal year, the head of
each Federal agency shall submit to the Administrator of the
Small Business Administration and to Congress a detailed plan
explaining how the agency intends to meet the small business
goals under this subsection that apply to that agency for
that fiscal year.''.

SEC. 207. MAKING SMALL BUSINESSES THE FIRST CHOICE.

Section 15(j) of the Small Business Act (15 U.S.C. 644(j))
is amended--
(1) in paragraph (1)--
(A) by inserting ``or order'' after ``Each contract''; and
(B) by striking ``$100,000'' and insert ``the Simplified
Acquisition Threshold''; and
(2) in paragraph (3), by striking ``subsection (a) of
section 8'' and inserting ``section 8, 31, or 36''.

SEC. 208. UNIFORM METRIC FOR SUBCONTRACTING ACHIEVEMENTS.

Section 8(d) of the Small Business Act (15 U.S.C. 637(d))
is amended by adding at the end the following:.
``(12) In carrying out this subsection, the Administrator
shall require each prime contractor to report small business
subcontract usage at all tiers based on the percentage of the
total dollar amount of the contract award.''.

SEC. 209. SUBCONTRACTING DATABASE.

Section 8(d) of the Small Business Act (15 U.S.C. 637(d))
is amended by adding at the end the following:
``(13) In carrying out this subsection, the Administrator
shall develop and maintain a password-protected database that
will enable the Administration to assist small businesses in
marketing to large corporations that have not achieved their
small business goals.''.

SEC. 210. NATIONAL DATABASE.

The Administrator of the Small Business Administration
shall ensure that whenever a small business enters its
information in the Central Contractor Registry, or any
successor to that registry, the Administrator contacts that
business within 30 days regarding the likelihood of Federal
contracting opportunities. The Administrator shall ensure
that each small business that so registers is, for each
industry code entered by that small business, provided with
the total dollar value of government contract awards to small
businesses for that industry.

SEC. 211. REVIEW OF SUBCONTRACTING PLANS.

Not later than 120 days after the date of the enactment of
this section, the Administrator of the Small Business
Administration shall, after an opportunity for notice and
comment, prescribe regulations to govern the Administrator's
review of subcontracting plans, including standards for
determining good faith effort in compliance with the
subcontracting plans.

SEC. 212. AGENCY OBLIGATION FOR FULFILLING CONTRACTING GOALS.

Section 15(h) of the Small Business Act (15 U.S.C. 644(h))
is amended by adding at the end the following:
``(4) At the conclusion of each fiscal year, the head of
each Federal agency shall submit to Congress a report
specifying the percentage of contracts awarded by that agency
for that fiscal year that were awarded to small business
concerns. If the percentage is less than 30 percent, the head
of the agency shall, in the report, explain why the
percentage is less than 30 percent and what will be done to
ensure that the percentage for the following fiscal year will
not be less than 30 percent.''.

TITLE III--PROTECTION OF TAXPAYERS FROM FRAUD

SEC. 301. SMALL BUSINESS SIZE PROTEST NOTIFICATION.

(a) In General.--The Administrator of the Small Business
Administration shall work with appropriate Federal agencies
to ensure that whenever a business concern is awarded a
contract on the basis that it qualifies as small and then is
determined not to qualify as small, a notification of those
facts (that an award was made on such a basis, and that such
a determination was made) shall be placed adjacent to that
concern's listing in the Central Contractor Registry (or any
successor to that registry).
(b) Comptroller General Certification.--The Administrator
shall, in making any report of small business goal
accomplishments, qualify the accomplishments as
``estimated'', until the Administrator obtains from the
Comptroller General the Comptroller General's certification
that there are no data integrity issues with respect to the
national repository of contract award information known as
Federal Procurement Data System-Next Generation (FPDS-NG), or
any successor to that repository.
(c) Awards to Large Businesses.--For each Federal agency,
the Inspector General of that agency shall, on an annual
basis, submit to Congress a report on the number and dollar
value of contract awards that were coded as awards to small
business concerns but in fact were made to businesses that
did not qualify as small business concerns.

SEC. 302. REVIEW OF NATIONAL REGISTRY.

The Administrator of the Small Business Administration
shall ensure, on a biannual basis, that an independent audit
is performed of the Central Contractor Registry, or any
successor to that registry, and that the Dynamic Small
Business Search portion of the registry, or any successor to
that portion of the registry, is purged of any businesses
that are not in fact small businesses. If a business that has
been so purged attempts, while not in fact a small business,
to re-register, that business is subject to debarment as a
Federal contractor and is further subject to penalties
outlined in section 16 of the Small Business Act (15 U.S.C.
645).

SEC. 303. RECERTIFICATION OF COMPLIANCE WITH SIZE STANDARDS
AND REGISTRATION WITH CENTRAL CONTRACTOR
REGISTRY.

[[Page H4725]]

concern, and the business concern is close to exceeding that
standard at the time the award is made, then the business
concern must, annually after the date of the award, recertify
to the agency awarding the contract whether it meets that
standard.
``(B) `Close to exceeding'.--For purposes of subparagraph
(A), a business concern is close to exceeding--
``(i) a number-of-employees standard if the number of
employees of the business concern is 95 percent or more of
the maximum number of employees allowed under the standard;
and
``(ii) a dollar-volume-of-business standard if the dollar
volume of business is 80 percent or more of the maximum
dollar volume allowed under the standard.
``(6) Registry.--For a business concern to be awarded a
contract because of a standard by which it is determined to
be a small business concern, the business concern must,
annually after the end of the fiscal year used by the
business concern, update its listing in the Central
Contractor Registry.''.

TITLE IV--AUTHORIZATION OF APPROPRIATIONS

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be
necessary to carry out this Act and the amendments made by
this Act.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Small
Business Fairness in Contracting Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Regulations.

TITLE I--CONTRACT BUNDLING

Sec. 101. Definitions of bundling of contract requirements and related
terms.
Sec. 102. Justification.
Sec. 103. Appeals.
Sec. 104. Review.

TITLE II--INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND
SUBCONTRACTS

Sec. 201. Small business goal.
Sec. 202. Annual goal negotiation.
Sec. 203. Usage of small companies in goal achievement.
Sec. 204. Annual plan for each agency explaining how agency will meet
small business goals.
Sec. 205. Making small businesses the first choice.
Sec. 206. Uniform metric for subcontracting achievements.
Sec. 207. Subcontracting database.
Sec. 208. National database.
Sec. 209. Review of subcontracting plans.
Sec. 210. Agency obligation for fulfilling contracting goals.
Sec. 211. Appropriate limits on value of sole source contracts.

TITLE III--PROTECTION OF TAXPAYERS FROM FRAUD

TITLE IV--AUTHORIZATION OF APPROPRIATIONS

Sec. 401. Authorization of appropriations.

SEC. 2. REGULATIONS.

TITLE I--CONTRACT BUNDLING

SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS
AND RELATED TERMS.

Section 3 of the Small Business Act (15 U.S.C. 632) is
amended by amending subsection (o) to read as follows:
``(o) Definitions of Bundling of Contract Requirements and
Related Terms.--For purposes of this Act:
``(1) Bundled contract.--
``(A) In general.--The term `bundled contract' means a
contract or order that is entered into to meet procurement
requirements that are consolidated in a bundling of contract
requirements, without regard to its designation by the
procuring agency or whether a study of the effects of the
solicitation on civilian or military personnel has been made.
``(B) Exceptions.--The term does not include--
``(i) a contract or order with an aggregate dollar value
below the dollar threshold specified in paragraph (4); or
``(ii) a contract or order that is entered into to meet
procurement requirements, all of which are exempted
requirements under paragraph (5).
``(2) Bundling of contract requirements.--
``(A) In general.--The term `bundling of contract
requirements' means the use of any bundling methodology to
satisfy 2 or more procurement requirements for goods or
services, including any construction services, previously
supplied or performed under separate smaller contracts or
orders that is likely to be unsuitable for award to a small
business concern due to--
``(i) the diversity, size, or specialized nature of the
elements of the performance specified;
``(ii) the aggregate dollar value of the anticipated award;
``(iii) the geographical dispersion of the contract or
order performance sites; or
``(iv) any combination of the factors described in clauses
(i), (ii), and (iii).
``(B) Inclusion of new features or functions.--A
combination of contract requirements that would meet the
definition of a bundling of contract requirements but for the
addition of a procurement requirement with at least one new
good or service shall be considered to be a bundling of
contract requirements unless the new features or functions
substantially transform the goods or services previously
performed.
``(C) Exceptions.--The term does not include--
``(i) the use of a bundling methodology for an anticipated
award with an aggregate dollar value below the dollar
threshold specified in paragraph (5); or
``(ii) the use of a bundling methodology to meet
procurement requirements, all of which are exempted
requirements under paragraph (6).
``(3) Bundling methodology.--The term `bundling
methodology' means--
``(A) a solicitation to obtain offers for a single contract
or order, or a multiple award contract or order; or
``(B) a solicitation of offers for the issuance of a task
or a delivery order under an existing single or multiple
award contract or order.
``(4) Separate smaller contract.--The term `separate
smaller contract', with respect to bundling of contract
requirements, means a contract or order that has been
performed by 1 or more small business concerns or was
suitable for award to 1 or more small business concerns.
``(5) Dollar threshold.--The term `dollar threshold'
means--
``(A) $65,000,000, if solely for construction services; and
``(B) $5,000,000, in all other cases.
``(6) Exempted requirements.--The term `exempted
requirement' means a procurement requirement solely for items
that are not commercial items (as the term `commercial item'
is defined in section 4(12) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(12)).
``(7) Procurement requirement.--The term `procurement
requirement' means a determination by an agency that a
specified good or service is needed to satisfy the mission of
the agency.''.

SEC. 102. JUSTIFICATION.

Section 15(a) of the Small Business Act (15 U.S.C. 644(a))
is amended--
(1) by striking ``(2) why delivery schedules'' and
inserting ``(2) the names, addresses and size of the
incumbent contract holders; (3) a description of the
industries that might be interested in bidding on the
contract requirements; (4) the number of small businesses
listed in the industry categories that could be excluded from
future bidding if the contract is combined or packaged; (5)
why delivery schedules'';
(2) by striking ``(3) why the proposed acquisition'' and
inserting ``(6) why the proposed acquisition'';
(3) by striking ``(4) why construction'' and inserting
``(7) why construction'';
(4) by striking ``(5) why the agency'' and inserting ``(8)
why the agency'';
(5) by striking ``justified.'' and inserting ``justified.
The statement shall also set forth the proposed procurement
strategy required by subsection (e) and, if applicable, the
specifications required by subsection (e)(3). The statement
shall be made available to the public, including through
dissemination in the Federal contracting opportunities
database, concurrently with the issuance of the
solicitation.''; and
(6) by inserting after ``prime contracting opportunities.''
the following: ``If no notification of the procurement and
accompanying statement is received, but the Administrator
determines that there is cause to believe the contract
combines requirements or a contract (single or multiple
award) or task or delivery order for construction services or
includes unjustified bundling, then the Administrator may
request that such a statement of work goods or services be
completed by the procurement activity and sent to the
Procurement Center Representative and the solicitation
process postponed for 10 days to allow the Administrator to
review the statement and make recommendations as described in
this section before the procurement is continued.''.

SEC. 103. APPEALS.

Section 15(a) of the Small Business Act (15 U.S.C. 644(a))
is amended by inserting before ``Whenever the Administration
and the contracting procurement agency fail to agree,'' the
following: ``If a small business concern would be adversely
affected, directly or indirectly, by the procurement as
proposed, and that small business concern or a trade
association on behalf of that small business concern so
requests, the Administrator may, in the Administrator's
discretion, take action to further the interests of that
small business concern.''.

[[Page H4726]]

SEC. 104. REVIEW.

Section 15(a) of the Small Business Act (15 U.S.C. 644(a))
is amended by striking the sentence beginning ``Whenever the
Administration and the contracting procurement agency fail to
agree,'' and inserting the following: ``Whenever the
Administration and the contracting procurement agency fail to
agree, the Administrator shall submit the matter to the head
of the agency for a determination. The head of the agency
shall provide a written response to the Administrator. A copy
of such response shall also be provided to the Committees on
Small Business of the House of Representatives and Senate,
the Committee on Oversight and Government Reform of the House
of Representatives, and the Committee on Homeland Security
and Governmental Affairs of the Senate.''.

TITLE II--INCREASING THE NUMBER OF SMALL BUSINESS CONTRACTS AND
SUBCONTRACTS

SEC. 201. SMALL BUSINESS GOAL.

(a) Government-Wide Goal.--Section 15(g)(1) of the Small
Business Act (15 U.S.C. 644(g)(1)) is amended by striking
``23 percent'' and inserting ``25 percent''.
(b) Goals for Small Disadvantaged Businesses and Women-
Owned Businesses.--Section 15(g)(1) of such Act is further
amended by striking ``5 percent'' both places it appears and
inserting ``8 percent''.

SEC. 202. ANNUAL GOAL NEGOTIATION.

SEC. 203. USAGE OF SMALL COMPANIES IN GOAL ACHIEVEMENT.

SEC. 204. ANNUAL PLAN FOR EACH AGENCY EXPLAINING HOW AGENCY
WILL MEET SMALL BUSINESS GOALS.

SEC. 205. MAKING SMALL BUSINESSES THE FIRST CHOICE.

Section 15(j) of the Small Business Act (15 U.S.C. 644(j))
is amended--
(1) in paragraph (1), by striking ``$100,000'' and
inserting ``the Simplified Acquisition Threshold''; and
(2) in paragraph (3), by striking ``subsection (a) of
section 8'' and inserting ``section 8, 31, or 36''.

SEC. 206. UNIFORM METRIC FOR SUBCONTRACTING ACHIEVEMENTS.

Section 8(d) of the Small Business Act (15 U.S.C. 637(d))
is amended by adding at the end the following:
``(12) In carrying out this subsection, the Administrator
shall require each prime contractor to report small business
subcontract usage at all tiers based on the percentage of the
total dollar amount of the contract award.''.

SEC. 207. SUBCONTRACTING DATABASE.

SEC. 208. NATIONAL DATABASE.

SEC. 209. REVIEW OF SUBCONTRACTING PLANS.

SEC. 210. AGENCY OBLIGATION FOR FULFILLING CONTRACTING GOALS.

Section 15(h) of the Small Business Act (15 U.S.C. 644(h))
is amended by adding at the end the following:
``(4) At the conclusion of each fiscal year, the head of
each Federal agency shall submit to Congress a report
specifying the percentage of contracts awarded by that agency
for that fiscal year that were awarded to small business
concerns. If the percentage is less than 25 percent, the head
of the agency shall, in the report, explain why the
percentage is less than 25 percent and what will be done to
ensure that the percentage for the following fiscal year will
not be less than 25 percent.''.

SEC. 211. APPROPRIATE LIMITS ON VALUE OF SOLE SOURCE
CONTRACTS.

(a) Appropriate Limits.--If a law is not enacted by
December 31, 2007, revising the limits referred to in this
subsection, the Administrator for Federal Procurement Policy,
in consultation with the Administrator for Small Business,
shall establish appropriate limits on the value of contracts
awarded without the use of competitive procedures to
participants in the program established by section 8(a) of
the Small Business Act (15 USC 637(a)) that are not subject
to the limits on the value of such contracts established by
paragraph (1)(D) of section 8(a) of such Act.
(b) Consultation.--In establishing any limit described in
subsection (a). the Administrator for Federal Procurement
Policy shall consult with representatives of the affected
program participants. The Administrator shall also take into
account--
(1) any special circumstances and needs of the affected
program participants; and
(2) the advantages of promoting competition in Federal
contracting.

TITLE III--PROTECTION OF TAXPAYERS FROM FRAUD

SEC. 301. SMALL BUSINESS SIZE PROTEST NOTIFICATION.

SEC. 302. REVIEW OF NATIONAL REGISTRY.

SEC. 303. RECERTIFICATION OF COMPLIANCE WITH SIZE STANDARDS
AND REGISTRATION WITH CENTRAL CONTRACTOR
REGISTRY.

Section 3(a) of the Small Business Act (15 U.S.C. 632(a))
is amended by adding at the end the following:
``(5) Recertification.--
``(A) In general.--If a business concern is awarded a
contract because of a standard by which it is determined to
be a small business concern, and the business concern is
close to exceeding that standard at the time the award is
made, then the business concern must, annually after the date
of the award, recertify to the agency awarding the contract
whether it meets that standard.
``(B) `Close to exceeding'.--For purposes of subparagraph
(A), a business concern is close to exceeding--
``(i) a number-of-employees standard if the number of
employees of the business concern is 95 percent or more of
the maximum number of employees allowed under the standard;
and
``(ii) a dollar-volume-of-business standard if the dollar
volume of business is 80 percent or more of the maximum
dollar volume allowed under the standard.
``(6) Registry.--For a business concern to be awarded a
contract because of a standard by which it is determined to
be a small business concern, the business concern must,
annually after the end of the fiscal year used by the
business concern, update its listing in the Central
Contractor Registry.''.

TITLE IV--AUTHORIZATION OF APPROPRIATIONS

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be
necessary to carry out

[[Page H4727]]

this Act and the amendments made by this Act.

The CHAIRMAN. No amendment to the committee amendment is in order
except those printed in House Report 110-137. Each amendment may be
offered only in the order printed in the report, by a Member designated
in the report, shall be considered read, shall be debatable for the
time specified in the report, equally divided and controlled by the
proponent and an opponent of the amendment, shall not be subject to
amendment, and shall not be subject to a demand for division of the
question.
Pursuant to the order of the House of today, amendment No. 4 may be
offered out of order.

Amendment No. 4 Offered by Mr. Sestak

Mr. SESTAK. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 4 offered by Mr. Sestak
Strike section 101 and insert the following:

SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS
AND RELATED TERMS.

Section 3 of the Small Business Act (15 U.S.C. 632) is
amended by amending subsection (o) to read as follows:
``(o) Definitions of Bundling of Contract Requirements and
Related Terms.--For purposes of this Act:
``(1) Bundled contract.--
``(A) In general.--The term `bundled contract' means a
contract or order that is entered into to meet procurement
requirements that are consolidated in a bundling of contract
requirements, without regard to its designation by the
procuring agency or whether a study of the effects of the
solicitation on civilian or military personnel has been made.
``(B) Exceptions.--The term does not include--
``(i) a contract or order with an aggregate dollar value
below the dollar threshold specified in paragraph (4); or
``(ii) a contract or order that is entered into to meet
procurement requirements, all of which are exempted
requirements under paragraph (5).
``(2) Bundling of contract requirements.--
``(A) In general.--The term `bundling of contract
requirements' means the use of any bundling methodology to
satisfy 2 or more procurement requirements for goods or
services previously supplied or performed under separate
smaller contracts or orders, or to satisfy 2 or more
procurement requirements for construction services of a type
historically performed under separate smaller contracts or
orders, that is likely to be unsuitable for award to a small
business concern due to--
``(i) the diversity, size, or specialized nature of the
elements of the performance specified;
``(ii) the aggregate dollar value of the anticipated award;
``(iii) the geographical dispersion of the contract or
order performance sites; or
``(iv) any combination of the factors described in clauses
(i), (ii), and (iii).
``(B) Inclusion of new features or functions.--A
combination of contract requirements that would meet the
definition of a bundling of contract requirements but for the
addition of a procurement requirement with at least one new
good or service shall be considered to be a bundling of
contract requirements unless the new features or functions
substantially transform the goods or services and for which
measurably substantial benefits to the government in terms of
quality or price are identified.
``(C) Exceptions.--The term does not include--
``(i) the use of a bundling methodology for an anticipated
award with an aggregate dollar value below the dollar
threshold specified in paragraph (5); or
``(ii) the use of a bundling methodology to meet
procurement requirements, all of which are exempted
requirements under paragraph (6).
``(3) Bundling methodology.--The term `bundling
methodology' means--
``(A) a solicitation to obtain offers for a single contract
or order, or a multiple award contract or order; or
``(B) a solicitation of offers for the issuance of a task
or a delivery order under an existing single or multiple
award contract or order.
``(4) Separate smaller contract.--The term `separate
smaller contract', with respect to bundling of contract
requirements, means a contract or order that has been
performed by 1 or more small business concerns or was
suitable for award to 1 or more small business concerns.
``(5) Dollar threshold.--The term `dollar threshold' means
$65,000,000, if solely for construction services.
``(6) Exempted requirements.--The term `exempted
requirement' means a procurement requirement solely for items
that are not commercial items (as the term `commercial item'
is defined in section 4(12) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(12)).
``(7) Procurement requirement.--The term `procurement
requirement' means a determination by an agency that a
specified good or service is needed to satisfy the mission of
the agency.''.

Modification to Amendment No. 4 Offered by Mr. Sestak

Mr. SESTAK. Mr. Chairman, I ask unanimous consent that the amendment
be modified by the form I have placed at the desk.
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:

Modification to amendment No. 4 offered by Mr. Sestak
Strike section 101 and insert the following:

SEC. 101. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS
AND RELATED TERMS.

Section 3 of the Small Business Act (15 U.S.C. 632) is
amended by amending subsection (o) to read as follows:
``(o) Definitions of Bundling of Contract Requirements and
Related Terms.--For purposes of this Act:
``(1) Bundled contract.--
``(A) In general.--The term `bundled contract' means a
contract or order that is entered into to meet procurement
requirements that are consolidated in a bundling of contract
requirements, without regard to its designation by the
procuring agency or whether a study of the effects of the
solicitation on civilian or military personnel has been made.
``(B) Exceptions.--The term does not include--
``(i) a contract or order with an aggregate dollar value
below the dollar threshold specified in paragraph (4); or
``(ii) a contract or order that is entered into to meet
procurement requirements, all of which are exempted
requirements under paragraph (5).
``(2) Bundling of contract requirements.--
``(A) In general.--The term `bundling of contract
requirements' means the use of any bundling methodology to
satisfy 2 or more procurement requirements for goods or
services previously supplied or performed under separate
smaller contracts or orders, or to satisfy 2 or more
procurement requirements for construction services of a type
historically performed under separate smaller contracts or
orders, that is likely to be unsuitable for award to a small
business concern due to--
``(i) the diversity, size, or specialized nature of the
elements of the performance specified;
``(ii) the aggregate dollar value of the anticipated award;
``(iii) the geographical dispersion of the contract or
order performance sites; or
``(iv) any combination of the factors described in clauses
(i), (ii), and (iii).
``(B) Inclusion of new features or functions.--A
combination of contract requirements that would meet the
definition of a bundling of contract requirements but for the
addition of a procurement requirement with at least one new
good or service shall be considered to be a bundling of
contract requirements unless the new features or functions
substantially transform the goods or services and will
provide measurably substantial benefits to the government in
terms of quality, performance, or price.
``(C) Exceptions.--The term does not include--
``(i) the use of a bundling methodology for an anticipated
award with an aggregate dollar value below the dollar
threshold specified in paragraph (5); or
``(ii) the use of a bundling methodology to meet
procurement requirements, all of which are exempted
requirements under paragraph (6).
``(3) Bundling methodology.--The term `bundling
methodology' means--
``(A) a solicitation to obtain offers for a single contract
or order, or a multiple award contract or order; or
``(B) a solicitation of offers for the issuance of a task
or a delivery order under an existing single or multiple
award contract or order.
``(4) Separate smaller contract.--The term `separate
smaller contract', with respect to bundling of contract
requirements, means a contract or order that has been
performed by 1 or more small business concerns or was
suitable for award to 1 or more small business concerns.
``(5) Dollar threshold.--The term `dollar threshold' means
$65,000,000, if solely for construction services.
``(6) Exempted requirements.--The term `exempted
requirement' means a procurement requirement solely for items
that are not commercial items (as the term `commercial item'
is defined in section 4(12) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(12)).
``(7) Procurement requirement.--The term `procurement
requirement' means a determination by an agency that a
specified good or service is needed to satisfy the mission of
the agency.''.

Mr. SESTAK (during the reading). Mr. Chairman, I ask unanimous
consent that the modification be considered as read and printed in the
Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
Pennsylvania?
There was no objection.

[[Page H4728]]

The CHAIRMAN. Without objection, the amendment is modified.
There was no objection.
The CHAIRMAN. Pursuant to House Resolution 383, the gentleman from
Pennsylvania (Mr. Sestak) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Pennsylvania.
Mr. SESTAK. Mr. Chairman, I yield myself such time as I may consume.
(Mr. SESTAK asked and was given permission to revise and extend his
remarks.)
Mr. SESTAK. Mr. Chairman, I rise to speak in support of this
amendment to increase the number of Federal contracts granted to small
businesses by addressing a practice known as contract bundling, which
has allowed Federal agencies to award mega-contracts, contracts so
large they cannot possibly be performed by a small business. This
amendment will ensure that more large contracts will be reviewed as to
their appropriateness to be bundled and potentially broken into smaller
pieces more suitable for small business.
The goal: enhancing taxpayer savings by a more efficient and
effective use of our resources by helping the Federal Government meet
its statutory goal of small business contracts, which it presently does
not.
Presently, the bill's current definition would prevent too many large
contracts to be exempted from a bundling analysis as to their
appropriateness for access to small business. This amendment will help
reduce these exemptions by eliminating the monetary threshold for
nonconstruction Federal contracts to be reviewed. Additionally, bundled
contracts that ``substantially transform a good or service,'' referring
to contracts that use a new, innovative contract process, are currently
exempted from bundling analysis.
This amendment would mandate that in such cases measurable,
substantial benefits must be demonstrated to the government in terms of
quality, performance or price. If that cannot be shown, a bundling
analysis must be completed.
This amendment, by also explicitly requiring that a bundling analysis
be performed for new work and construction contracts, as opposed to
just previously performed work, will also close the loophole that has
been used by agencies to avoid unbundling contracts.
Let me give you an example of why addressing contract bundling is
important to not just small businesses but also to efficient and
effective use of our Nation's resources, particularly in new or
transformational requirements that our Federal agencies increasingly
contract for.
Gestalt, a small business located in my district, recently competed
in an Army contract, which they competed for against a very large
defense corporation, to fix the Defense Readiness Reporting System.
Right now, we have in the military a fairly arcane system, where
obtaining detailed, up-to-date, instantaneous information on the
readiness of our military and its units is challenging at best. What
was required was a much more dynamic system that could present in real-
time the readiness of our forces, in this case, the 5,000-plus Army
units we have, which can greatly impact a commander's decision in what
has become a fast-paced, battle space environment where speed of
decision is so highly valued.
The large defense corporation said it would take 3 years to complete
the project, while the smaller firm then did it in only 7 months. From
my time as a vice admiral responsible for executing the Navy's annual
$67 billion worth of warfare requirements and programs, I know there is
a tendency, because of ease of execution, to want to go to a large
corporation and have them subcontract their bundled program to other
vendors.
The result, unfortunately, is particularly worrisome at a moment when
we need to transform not just our military but many of our other
federally funded efforts. The speed and agility that more
entrepreneurial small businesses often can provide in a fast-paced,
globalized and continuously changing world are key to rapidly meeting
new, evolving requirements of our Nation, particularly in such
transformational areas as software and information technology.
It is, therefore, inefficient and ineffective to our competitive edge
to deny entrepreneurial small businesses direct access to the real
requirements of the customer, the U.S. government, and it is also
harmful to our interests to have large corporations bundle certain
contracts so that only derived requirements are available to the
subcontractors, these derived requirements having to be interpreted by
sub-vendors or be interpreted to them by the large corporation, a
middleman, adding complexity, time and misinterpretation, rather than
streamlining, to the Federal contracting process.
In short, undue bundling of contracts cost the taxpayers money. More,
this inefficiency leads to less effectiveness. By unbundling work
requirements, this amendment will create new opportunities for small
firms, expanding the government's access to more qualified contractors.
Increased competition because of more fair access will lead to lower
prices and to the improvement of the quality of goods and services
procured by the Federal Government.
I urge all my colleagues to support this critical amendment, not only
for the Nation's entrepreneurial small businesses but for a more
efficient and effective application of our Nation's resources
Mr. Chairman, I reserve the balance of my time.
Mr. CHABOT. Mr. Chairman, I claim the 5 minutes in opposition to the
amendment, although I do not oppose the amendment. I am in favor of it.
The CHAIRMAN. The gentleman is recognized for 5 minutes.
Mr. CHABOT. Mr. Chairman, I yield such time as she might consume to
the gentlewoman from New York (Ms. Velazquez), if she would like to
speak at this time.
Ms. VELAZQUEZ. Mr. Chairman, contract bundling has been a major issue
for years, and it is increasing. When contracts are combined together
into mega-contracts, small businesses are unable to compete. In fact,
some contracts are so large that only a handful of companies would be
able to perform them. This can create a virtual monopoly, which is
problematic for taxpayers concerned with getting the best value for
their money.
This amendment would save taxpayers money and benefit the economy. It
will increase competition, providing the government with more options
to purchase goods and services from. This will ultimately lower prices
for Federal agencies. Unbundling contracts will create new
opportunities for entrepreneurs, leading to new jobs and more local tax
revenue.
The amendment closes a loophole in current law. This amendment adds
new work and construction, which previously were not subject to
bundling analyses. Current law only required contracts that have been
previously performed to be reviewed for bundling. This amendment closes
this gap and gives Federal agencies the tools it needs to save the
taxpayers money.
The expanded bundling definition will not be overly burdensome.
Contracts that are not suitable for small businesses will not require a
bundling analysis. Bundled construction contracts under $65 million
will not require an analysis. By creating more competition in the
Federal marketplace, this amendment will save taxpayers money.
Expanding the definition of bundling will require more contracts to
be reviewed, and possibly unbundled, than the current statute permits.
This will create more opportunities for small firms, give the
government more options and lower costs and increase quality for
taxpayers.
I thank both the gentleman from Pennsylvania for his work on this
issue and Mr. Chabot for all the work that he has done on the
underlying bill and on this amendment.
Mr. CHABOT. Mr. Chairman, I yield myself as much time as I may
consume. I will be brief.
The amendment offered by Mr. Sestak will increase the protections
against inappropriate contract bundling. It represents a compromise
between the Small Business Committee's version and the Committee on
Government Reform's version of H.R. 1873. I believe it represents an
adequate resolution of the issue and pledge to work to make the
protections in the Sestak amendment even stronger as we work through
the legislative process.
Mr. Chairman, I reserve the balance of my time.

[[Page H4729]]

Mr. SESTAK. Mr. Chairman, I yield back the balance of my time.
Mr. CHABOT. I yield back the balance of our time.
The CHAIRMAN. The question is on the amendment, as modified, offered
by the gentleman from Pennsylvania (Mr. Sestak).
The question was taken; and the Chairman announced that the ayes
appeared to have it.
Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings
on the amendment offered by the gentleman from Pennsylvania will be
postponed.

Amendment No. 1 Offered by Mr. Reyes

The CHAIRMAN. It is now in order to consider amendment No. 1 printed
in House Report 110-137.
Mr. REYES. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 1 offered by Mr. Reyes

SEC. 209. REVIEW OF SUBCONTRACTING PLANS.

(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the General Services
Administration shall, after an opportunity for notice and
comment, begin to make modifications, if necessary, to the
Electronic Subcontracting Reporting System (ESRS) for the
purpose of tracking companies' compliance with small business
subcontracting plans included in successful contract bids.
ESRS shall be further developed, if necessary, in such a way
that it allows agencies to track whether or not the prime
contractor actually subcontracted work out to the
subcontracting firms described in the Small Business
Subcontracting Plan. Further, ESRS shall be modified, if
necessary, so that it facilitates review of a company's
record of compliance with small business subcontracting
plans.
(b) Periodic Reports.--Prime contractors shall be required
to submit Small Business Subcontracting Plans to ESRS and
submit subsequent periodic reports to ESRS describing the
extent to which the prime contractor complied with small
business subcontracting plans submitted as part of the
company's successful contract proposal. Each such report
shall include a specific accounting of compliance with
subcontracting goals described in the prime contractor's
Small Business Subcontracting Plans related to Small
Disadvantaged Businesses Concerns, Women-Owned Small Business
Concerns, Historically Black Colleges and Universities and
Minority Institutions, Service-Disabled Veteran-Owned Small
Business Concerns, and HUBZone Small Business Concerns. Each
such accounting of compliance shall also be included in ESRS.
(c) Inclusion in ESRS.--The ``percentage of the total
dollar amount of the contract award'' that is paid to small
business, as referred to in paragraph (12) of section 8(d) of
the Small Business Act (as added by section 206 of this Act)
shall also be included in ESRS.
(d) Availability of ESRS.--ESRS and the information therein
shall be made available to agency officials and Source
Selection Evaluation Boards (as referred to in Federal
Acquisition Regulations 3.104-1) that are charged with
evaluating contract proposals, and, when evaluating contract
proposals, agencies shall take into consideration the
compliance with small business subcontracting plans of
companies competing for Federal contracts, and within one
year after the date of the enactment of this Act such
consideration shall be reflected in the Federal Acquisition
Regulations.
(e) Further Modifications Required.--ESRS shall be modified
in such a way that it can generate comparable reports on
individual companies' compliance records to be used in the
contract proposal evaluation processes of agencies.

The CHAIRMAN. Pursuant to House Resolution 383, the gentleman from
Texas (Mr. Reyes) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Texas.
Mr. REYES. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, my amendment is simple. It uses existing procedures and
an existing resource to promote fairness in subcontracting. It makes a
great bill, the Small Business Fairness in Contracting Act of 2007, I
believe even better. Let me describe the problem as it currently
exists.
For large government contracts, applicants are required to submit
small business subcontracting plans during the bidding process
detailing their intentions to include small businesses in the work.
However, too often prime contractors disregard small business
subcontracting plans submitted as part of winning government bids.
This is simply, in our eyes, not fair. Small business gets left
behind, and prime contractors who keep their word, who are doing the
right thing, end up at a competitive disadvantage with the bad actors.
This unfortunate practice has particularly adverse effects on the
small businesses that are included in small business subcontracting
plans but do not actually receive the contract work. When small
businesses are included in the small business plans of prime
contractors, the small businesses will often make investments on the
front end to prepare themselves to do the subcontract work. If the
prime does not ultimately subcontract the work to the small business in
question, however, that small business will often find itself
overextended. Often, the operating margins of small businesses are very
small, and unmet subcontract obligations in small business
subcontracting plans can force these small firms out of business.
Prime contractors receive bids based on their commitment to include
small business in the contract, in part, and it is only fair that the
primes fulfill their end of the deal.
My amendment provides much-needed accountability over small business
subcontracting plans by doing two things. One, this amendment takes
advantage of an existing online tool, the Electronic Subcontracting
Reporting System, and existing procedures for reporting on contracts to
accumulate and organize information about prime contractors' compliance
records with small business subcontracting plans. ESRS will be
developed to prepare easily comparable reports for tracking prime
contractors and their compliance through their records.
We are not reinventing the wheel. This is a commonsense, efficient
way to allow information to be organized in such a way as to provide
the necessary accountability over these small business plans.
Second, this amendment brings fairness to subcontracting by requiring
that agencies, even when evaluating subcontract or contract proposals,
take into consideration compliance with small business subcontracting
plans of companies competing for Federal contracts, and requiring that
within 1 year after the date of the enactment such consideration be
reflected in the Federal acquisition regulations.

{time} 1930

This is simply a matter of making sure that prime contractors are
playing by the rules. This is an issue for us and, for small
businesses, an issue of fairness. The amendment is fair to small
businesses who are included in small business subcontracting plans and
who have, in essence, helped prime contractors receive contract awards.
The amendment is fair to prime contractors who do play by the rules by
making sure that their records of helping small businesses are taken
into account.
My amendment has the support of the U.S. Hispanic Chamber of Commerce
and the National Black Chamber of Commerce. With that, I urge my
colleagues to support it as well.
Mr. Chairman, I reserve the balance of my time.
Mr. CHABOT. Mr. Chairman, we accept the amendment. We have no
objection.
Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I
ask unanimous consent to claim the time in opposition.
The CHAIRMAN. Without objection, the gentlewoman from New York is
recognized for 5 minutes.
There was no objection.
Ms. VELAZQUEZ. Mr. Chairman, we are prepared to accept this
amendment.
One of the areas in which small businesses could participate much
more than they currently are is in the area of subcontracting.
Subcontracting provides a great entry point to the Federal marketplace
for small businesses.
The gentleman's amendment would expand the amount of information
collected on subcontracting in the government-wide database. It also
reinforces the notion that when prime contractors don't achieve their
small business goals these should be reflected in their evaluation for
subsequent contracts.
I am pleased to support the gentleman's amendment, and I thank the
gentleman from Texas for his work on this legislation.
I ask adoption of this amendment.

[[Page H4730]]

Mr. Chairman, I yield back the balance of my time
The CHAIRMAN. The gentleman from Texas has 1 minute remaining.
Mr. REYES. Mr. Chairman, I want to thank the chairwoman for her
tireless work on behalf of small business and her support of small
business, as well as my good friend, the ranking member. Thank you.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Texas (Mr. Reyes).
The amendment was agreed to.

Amendment No. 2 Offered by Mr. Shuler

The CHAIRMAN. It is now in order to consider amendment No. 2 printed
in House Report 110-137.
Mr. SHULER. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 2 offered by Mr. Shuler:
After section 201 insert the following (and redesignate
succeeding sections accordingly):

SEC. 202. INCLUDE OVERSEAS CONTRACTS IN SMALL BUSINESS GOAL.

The CHAIRMAN. Pursuant to House Resolution 383, the gentleman from
North Carolina (Mr. Shuler) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from North Carolina.
Mr. SHULER. Mr. Chairman, I yield myself as much time as I may
consume.
Mr. Chairman, American small businesses supply goods and services
throughout the world. These businesses have led the way in providing
innovative solutions to private and public sector challenges.
When Federal agencies spend taxpayers' funds, they should look to
American small businesses first before outsourcing to foreign
companies. In this age of high-speed communication and global
transportation, American workers can contribute to American projects
anywhere on earth.
This amendment does not require Federal agencies to use American
small businesses for every project. It simply sets expectations that
these agencies look first to American small businesses to meet their
needs.
I urge passage of this amendment.
Mr. Chairman, I yield to the cosponsor of this amendment, Mr. Chabot.
Mr. CHABOT. I want to thank the gentleman for his hard work on this
particular amendment. I think it's a good amendment. I would urge its
passage.
The amendment expands the pool of contracts included in the Federal
governmentwide goal for participation of small business concerns and
procurement contracts to include United States small business concern
contracts performed overseas. Current law and regulations apply the
small business concern Federal governmentwide goal only to contracts
performed in the United States.
The bill as currently written would continue to apply the small
business concern Federal governmentwide goal to contracts performed
only in the United States. This methodology clearly does not address
small business concerns involvement in today's global economy. When
small business policy was first developed in the 1940 to 1950
timeframe, small business concern participation in the overseas markets
was fairly limited.
In today's global economy, adding contracts where United States small
business concerns perform overseas work is reasonable because the
availability of the Internet and advances in technology allows
contracting officers to acquire information on such activities.
Therefore, United States small business concerns global activity
should be recognized and, thus, included as a part of the overall
Federal governmentwide small business concern goal.
Again, I want to thank the chairwoman and I want to thank Mr. Shuler
for their work on this particular amendment
Mr. SHULER. Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I
ask unanimous consent to claim the time in opposition.
The CHAIRMAN. Without objection, the gentlewoman from New York is
recognized for 5 minutes.
There was no objection.
Ms. VELAZQUEZ. Mr. Chairman, it is important that the small business
goals apply to contracts performed overseas. For too long there has
been an exclusive club of contractors for overseas work. This needs to
change. Extending the small business goals to apply to these contracts
will expand the pool of contractors available to the government. This
amendment will help bring overseas opportunity to small businesses.
A recent study of $6 billion in overseas contracts showed only $122
million was awarded to small businesses, just 2 percent. This amendment
gives agencies an incentive to award overseas contracts to small
businesses. Agencies that do use small businesses for overseas
contracts will now be able to get credit.
The Federal Government should be looking to small businesses for
overseas work. Ninety-seven percent of all exporters are small
businesses; 30 percent of all goods made for export are made by small
businesses. Technological improvements give small businesses much
greater access to worldwide markets than in the past.
It is important to help small businesses gain access to overseas
contracting opportunities they have been locked out of. This amendment
will accomplish this by helping encourage agencies to look to American
small businesses for this work.
I thank both gentlemen, Mr. Shuler and Mr. Chabot, for their work on
this legislation. I urge adoption of this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. SHULER. Mr. Chairman, I want to commend Ranking Member Chabot and
Chairwoman Velazquez for her hard work and dedication on this
amendment, along with this bill, an outstanding job.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from North Carolina (Mr. Shuler).
The question was taken; and the Chairman announced that the ayes
appeared to have it.
Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings
on the amendment offered by the gentleman from North Carolina will be
postponed.

Amendment No. 3 Offered by Ms. Bean

The CHAIRMAN. It is now in order to consider amendment No. 3 printed
in House Report 110-137.
Ms. BEAN. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 3 offered by Ms. Bean:
Section 201(a), strike ``25 percent'' and insert ``30
percent''.

The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from
Illinois (Ms. Bean) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentlewoman from Illinois.
Ms. BEAN. Mr. Chairman, I rise today to offer an amendment to the
Small Business Fairness in Contracting Act. I would like to thank
Ranking Member Chabot for cosponsoring and Chairman Velazquez for her
support. This amendment would increase the Federal Government's small
business contracting goal from 23 to 30 percent.
Small businesses are the stimulative engine to our Nation's economy
and drive our domestic job growth. They make up 97 percent of all
businesses, provide 50 percent of our gross domestic product and 50
percent of our non-farm employment. Clearly, small businesses have the
capacity to compete for Federal contracts.
The government's small business prime contract goal has not been
increased since 1997. Since that time, the Nation has added over 3
million net new small businesses. At the same

[[Page H4731]]

time, the Federal marketplace has doubled and now accounts for over
$400 billion in goods and services. My amendment reflects that new
reality that the number and capabilities of small businesses have grown
to such an extent that an adjustment to our national goal is in the
best interests of our country.
The increase would also address a discouraging development that,
after some early successes in achieving the contracting goal, Federal
agencies have become complacent in their efforts to provide
opportunities to small business. Over the last 5 years, they have begun
to use contract bundling and contract streamlining practices, which
reduced opportunities for competition. Without competition, we cannot
ensure that taxpayer dollars are being used most effectively.
In addition, Federal agencies have become careless in their reporting
of contract awards, leading them to believe they have exceeded small
business goals they were, in fact, failing to achieve. As a result,
small businesses access to prime contracts have suffered. In 2005, the
Federal marketplace rose by 7 percent, but prime small business
contracts only rose by 2 percent.
Last year alone, we found that the Federal Government fell about $12
billion below their goal level, even though the SBA originally reported
that they had exceeded their goal.
By raising our small business prime contracting goal and increasing
competitive bids, we get a greater return on our tax dollars. At the
same time, we provide economic stimulus for the small businesses in our
communities. I urge your support of this amendment.
I yield to cosponsor Chabot.
Mr. CHABOT. I thank the gentlewoman for yielding, and I thank her for
her leadership on this amendment and her hard work, as well as the
chairwoman's.
This is a simple amendment. The amendment increases the Federal
government-wide goal for participation of small business concerns in
procurement contracts from 23 percent to 30 percent. The bill, as
currently written, would increase the Federal government-wide goal from
23 percent to 25 percent, which is only a 2 percent increase, which is
really pretty miserable when one considers it. It ought to be, I think,
significantly more than that, especially when you consider that the
Federal market for goods and services has doubled in the past 10 years,
and the number of small businesses has increased by 10 percent during
that period of time.
So to maintain the congressional standard in the Small Business Act
that a fair share Federal government procurement contracts are awarded
the small business concerns, this amendment increases the goal a modest
8 percent, which is, quite frankly, long overdue.
Finally, the goal increase recognizes small business concern's role
in the economy. Small businesses employ more than 50 percent of all
employees in the United States, and this would cause increased
competition, resulting in a downward pressure on pricing, which
ultimately benefits the taxpayer. Small businesses are the main
contributors to major technological paradigm breakthroughs, as opposed
to simply advancing the current knowledge in a specific technological
field.
I think this is a very good amendment. I, again, want to thank the
gentlelady for offering it.
Ms. BEAN. Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I
ask unanimous consent to claim the time in opposition.
The CHAIRMAN. Without objection, the gentlewoman from New York is
recognized for 5 minutes.
There was no objection.
Ms. VELAZQUEZ. Mr. Chairman, since 1977, the minimum goal for small
businesses in the Federal marketplace has been 23 percent of the total
value of goods and services acquired. Each year, the administration
boasts of how it almost made its target. Unfortunately, in 2005 alone,
at least $12 billion, almost 15 percent of the small business
accomplishments, as reported by the Small Business Administration, were
actually awarded to large businesses. Agencies have become so single-
minded about achieving the minimum goal that they have lost sight of
the intent.
The goal is a measurement of commitment to small businesses; and when
the goal isn't achieved, small businesses pay the price. Because the
minimum has not been met over the past 6 years, small businesses have
lost almost $10 billion in contracting opportunities. This represents
nearly 200,000 jobs that could have been created across the country.
Many people have asked me, if the small business contracting goal
hasn't been met, why do you support increasing it? As I said, the goal
is simply a measurement. There are no penalties to an agency for not
achieving it.
It is already the policy of the United States, as set forth in the
statute, that small firms shall have the maximum practical opportunity
to participate in the performance of contracts let by any Federal
agency.

{time} 1945

It doesn't say minimum; it says maximum. This is why the Bean-Chabot
amendment is so important. It gets us away from the small business goal
as ceiling mentality. It ensures that small business participation is
maximized, not minimized.
I congratulate Ms. Bean and Mr. Chabot for this amendment. It was
included when the Committee on Small Business unanimously reported this
legislation, and I was disheartened to see that it was diluted as the
bill progressed. I am pleased to support this amendment, and I look
forward to working with my colleagues to ensure that this amendment
creates new opportunity for small businesses in the Federal
marketplace. I thank Ms. Bean and Mr. Chabot on their work on this
amendment, and I urge adoption of this amendment.
Mr. Chairman, I yield back the balance of my time.
Ms. BEAN. Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from Illinois (Mr. Bean).
The question was taken; and the Chairman announced that the ayes
appeared to have it.
Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings
on the amendment offered by the gentlewoman from Illinois will be
postponed.

Amendment No. 5 Offered by Mr. Welch of Vermont

The CHAIRMAN. It is now in order to consider amendment No. 5 printed
in House Report 110-137.
Mr. WELCH of Vermont. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 5 offered by Mr. Welch of Vermont:
At the end of title II, insert the following:

SEC. 212. SMALL BUSINESS GOALS FOR GREEN SMALL BUSINESS
CONCERNS.

(a) In General.--Section 15(g) of the Small Business Act
(15 U.S.C. 644(g)) is amended--
(1) in paragraph (1)--
(A) by striking ``and small business concerns owned and
controlled by women'' both places such term appears and
inserting ``small business concerns owned and controlled by
women, and green small business concerns''; and
(B) by inserting before ``Notwithstanding the Government-
wide goal'' the following: ``The Government-wide goal for
participation by green small business concerns shall be
established at not less than 5 percent of the total value of
all prime contract and subcontract awards for each fiscal
year.''; and
(2) in paragraph (2)--
(A) by striking ``and by small business concerns owned and
controlled by women'' both places such term appears and
inserting ``by small business concerns owned and controlled
by women, and by green small business concerns''; and
(B) by striking ``and small business concerns owned and
controlled by women'' and inserting ``small business concerns
owned and controlled by women, and green small business
concerns''.
(b) Conforming Amendments.--
(1) Definition.--Section 3 of that Act (15 U.S.C. 632) is
amended by adding at the end the following:
``(s) Definitions Relating to Green Small Business
Concerns.--In this Act, the term `green small business
concern' means a small business concern that carries out its
activities in an environmentally sound manner. The
Administrator shall, in consultation with the Environmental
Protection Agency, the General Services Administration, and
other appropriate agencies, specify detailed definitions or
standards by which a small business concern may be determined

[[Page H4732]]

to be a green small business concern for the purposes of this
Act.''.
(2) Policy.--Section 8(d) of that Act (15 U.S.C. 637(d)) is
amended--
(A) in paragraph (1) (in both places such term appears),
paragraph (3)(A) (in both places such term appears),
paragraph (4)(D), paragraph (6)(A), paragraph (6)(C),
paragraph (6)(F), and paragraph (10)(B) by striking ``and
small business concerns owned and controlled by women'' and
inserting ``small business concerns owned and controlled by
women, and green small business concerns'';
(B) in paragraph (3)(F) by striking ``or a small business
concern owned and controlled by women'' and inserting ``a
small business concern owned and controlled by women, or a
green small business concern''; and
(C) in paragraph (4)(E) by striking ``and for small
business concerns owned and controlled by women'' and
inserting ``for small business concerns owned and controlled
by women, and for green small business concerns''.
(3) Reports on goals.--Section 15(h) of that Act (15 U.S.C.
644(h)) is amended, in each of paragraphs (1), (2)(A),
(2)(D), and (2)(E) by striking ``and small business concerns
owned and controlled by women'' and inserting ``small
business concerns owned and controlled by women, and green
small business concerns''.
(4) Penalties.--Section 16 of that Act (15 U.S.C. 645) is
amended in each of subsections (d)(1) and (e) by striking
``or a `small business concern owned and controlled by women'
'' and inserting ``a `small business concern owned and
controlled by women', or a `green small business concern' ''.

The Acting CHAIRMAN. Pursuant to House Resolution 383, the gentleman
from Vermont (Mr. Welch) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Vermont.
Mr. WELCH of Vermont. Mr. Chairman, I yield myself such time as I may
consume.
I first congratulate the gentlelady from New York and the gentleman
from Ohio on the incredible hardworking committee that is producing
more legislation that is good for the American people, and I think just
about everybody else in Congress, so all of us appreciate your good
work. And it is all about the fact that they recognize, as I think we
all do, that small businesses are the backbone of our Nation's economy.
They must have the opportunity to compete for Federal contracts.
This underlying legislation establishes broad parameters and goals to
make small business opportunities available to folks in this country
who have not had access to that opportunity. The purpose of this
amendment is to establish a goal that will give an opportunity for
businesses that are green to have access to these contracts.
Small businesses in my State of Vermont create two out of every three
jobs, and it is critical that small businesses be encouraged to develop
and supply products and services in an environmentally sound way. My
amendment would take a step towards encouraging green businesses by
recognizing that those practices of companies can be considered in
Federal Government contracts. This isn't just because it is the right
thing to do for the environment, it is because there is a growing
recognition that if we take on the challenge of cleaning up our
environment, it can be pro-high-tech, pro-growth policies that will
accomplish that, and I urge favorable consideration.
Mr. Chairman, I yield to the gentleman from Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Mr. Chairman, I appreciate the gentleman's courtesy,
and it is a pleasure to work with him in cosponsoring this amendment.
Mr. Chairman, the Federal Government is the largest consumer of
energy in the world. If we harness the ability of our Federal agencies
in terms of what they do with energy, what they do with procurement, we
have an opportunity to revolutionize the business practices in this
country in a way that doesn't require a lot of new rules and
regulations and fees. It is simply leading by example.
It has been my privilege early in my career to do work dealing with
minority enterprises, with women-owned enterprises, with small
business; because, as the gentleman from Vermont mentions, these are
areas that are tremendously underserved, but there is a great deal of
energy and vitality and it has made our economy stronger. This is the
next logical addition to that portfolio of activities.
By giving a preference to procurement with small businesses that are
environmentally sound, it is going to help nurture an explosion of new
technology, of new business opportunities, and, most important, most
important, it is going to help to bring these activities to scale. It
is going to make best green practices more cost effective. It is going
to be a better value for the taxpayer. It is the cheapest way to
improve the environment. And, ultimately, it is going to strengthen our
economy, because areas in the European Union, in Canada and, dare I
say, even in Asia dealing with China and Japan, progress is being made.
This is going to help us. It is going to give a better value to the
taxpayers. It is going to jump start these.
I look in Portland at TerraClean, Ecos Consulting, Rejuvenation House
Parts, ecological small businesses. If this is enacted, they will be
able to do a better job in the future.
Mr. Chairman, I appreciate the gentleman's courtesy and leadership.
Mr. WELCH of Vermont. Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I
ask unanimous consent to claim the time in opposition.
The CHAIRMAN. Without objection, the gentlewoman from New York is
recognized for 5 minutes.
There was no objection.
Ms. VELAZQUEZ. Mr. Chairman, we accept this amendment by Mr. Welch,
which proposes a 5 percent goal for Federal contracting with green
small businesses. I look forward to working with my colleague on this
amendment, which encourages the government to reward small businesses
that meet higher environmental standards.
I thank the gentleman from Vermont for his work on this legislation,
and I urge adoption of the amendment.
Mr. Chairman, I yield to the ranking member, Mr. Chabot, for any
comments that he might have.
Mr. CHABOT. I thank the gentlelady. We have no objection and support
the amendment, and thank the gentleman for offering it.
Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
Mr. WELCH of Vermont. Mr. Chairman, I thank the gentlelady and the
gentleman, and I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Vermont (Mr. Welch).
The amendment was agreed to.

Amendment No. 6 Offered by Mr. Wynn

The CHAIRMAN. It is now in order to consider amendment No. 6 printed
in House Report 110-137.
Mr. WYNN. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 6 offered by Mr. Wynn:
At the end of title II, add the following:

SEC. 2__. STUDY ON PROVIDING FINANCIAL INCENTIVES TO
CONTRACTORS THAT MEET MINORITY AND
DISADVANTAGED BUSINESS ENTERPRISE GOALS.

The Administrator of the Small Business Administration
shall carry out a study on the feasibility and desirability
of providing financial incentives to contractors operating
under contracts from a federal agency that achieve the
percentage goals set forth in said contracts' subcontracting
plans for the utilization of small business concerns owned
and controlled by socially and economically disadvantaged
individuals. The Administrator shall submit to Congress a
report on the results of the study, together with any
findings, conclusions, and recommendations that the
Administrator considers appropriate.

The CHAIRMAN. Pursuant to House Resolution 383, the gentleman from
Maryland (Mr. Wynn) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Maryland.
Mr. WYNN. Mr. Chairman, let me begin by thanking the gentlelady, the
chairman of the Committee on Small Business, for her leadership over
the years on this very important issue.
The amendment I am introducing this evening would require that the
Small Business Administration study the feasibility and desirability of
providing financial incentives to encourage prime contractors to meet
their goals for subcontracting with socially and economically
disadvantaged businesses.
Specifically, the amendment would commission the SBA to study
different

[[Page H4733]]

types of financial incentives that could help or encourage prime
contractors to meet their goals set forth in their subcontracting
claims for the utilization of small business companies owned and
controlled by socially and economically disadvantaged individuals.
Ironically, you heard earlier this evening about the problem of prime
contractors failing to utilize small minority and economically
disadvantaged businesses. Given the constitutional constraints that we
as legislators have in legislating mandates for achieving these goals
for minority and disadvantaged businesses, I believe that we must come
up with creative and viable alternatives that can help encourage
greater participation in the Federal contracting process by these
businesses.
One such method to encourage greater participation by small minority
and economically disadvantaged businesses would be to devise a means of
rewarding prime contractors who meet their small business contracting
goals rather than penalizing them. This is similar to the incentives
placed in contracts for meeting deadlines and staying within budget.
My amendment would simply require that SBA study and report to
Congress about different types of financial incentives that could be
implemented that would encourage prime contractors to meet their goals
for increasing opportunity for socially and economically disadvantaged
businesses. This would allow us to encourage DB participation rather
than attempting to penalize contractors who fail to meet their goals.
This is an approach that offers more carrot and less stick.
Mr. Chairman, I yield to the gentlelady, the chairwoman of the
committee.
Ms. VELAZQUEZ. Mr. Chairman, I thank the gentleman for yielding.
We are prepared to accept this amendment. Many times the proposed
solution to a problem, particularly in the Federal procurement
environment, is the assessment of penalties. Sometimes this works.
Sometimes it doesn't. I have found that when it works best, it is also
accompanied by incentives for good performance.
The gentleman from Maryland begins this process. It is a worthy
endeavor, and I am pleased to support the gentleman's amendment. I want
to thank him for the work that he is doing on this legislation, and I
urge adoption of the amendment.
Mr. CHABOT. Mr. Chairman, we accept the amendment, and we thank the
gentleman from Maryland for his leadership on this as he has shown such
great leadership on so many other issues as well.
Mr. WYNN. I thank the gentleman for his kind comments and for his
support of the amendment, and, of course, I thank the gentlelady for
supporting the amendment.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Maryland (Mr. Wynn).
The amendment was agreed to.

Amendment No. 7 Offered by Ms. Jackson-Lee of Texas

The CHAIRMAN. It is now in order to consider amendment No. 7 printed
in House Report 110-137.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 7 offered by Ms. Jackson-Lee of Texas:
Section 103, strike ``concern.'' and insert ``concern, and
shall make available to the public on the website of the
Administration the action taken and the result achieved.''.

The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from
Texas (Ms. Jackson-Lee) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from Texas.
Ms. JACKSON-LEE of Texas. Let me thank the distinguished Chair for
yielding and let me also thank the distinguished chairwoman and ranking
member for their leadership on this very important issue of small
business, and thank them for the series of bills that have come to the
floor that are like building blocks in helping small businesses across
America. I would like to thank the majority committee staff for working
with my staff. I would like to thank Mr. Tsehai for working on I think
an important issue.
Let me quickly say that this amendment comes from experience of some
of the frustration that small businesses will express coming to your
office. The Federal Government is big, and the refuge for small
businesses is the SBA. They look for incentives. They look for
instruction. They look for guidance. And so my amendment simply says
that when there is a dispute and there is a response by the FDA and an
action is taken, any action with regard to any disagreement between the
SBA and contract procurement agency, this resolve should be put on the
Web site.
This is an important part of educating small businesses about their
action and gives them an empowerment. And I say that in the backdrop of
so many businesses that were housed in Houston who fled New Orleans
after Hurricane Katrina. Many businesses were there. They were looking
to get restarted back in New Orleans. And the confusion of not being
able to access what happened in their request or what happened in a
dispute led me to believe that more information on the Web site of the
SBA would be extremely helpful.
So I ask my colleagues to support this amendment. It simply provides
an opportunity for the Small Business Administration to post on their
Web site any action taken and the result achieved with regards to any
disagreement between the SBA and any contract procurement agency.
I yield to the chairwoman of the
full committee, Congresswoman Velazquez.

{time} 2000

Ms. VELAZQUEZ. I thank the gentlelady for yielding.
We accept this amendment which will require the Administrator of SBA
to make public the actions taken on behalf of small businesses or trade
associations with regard to bundled contracts. More importantly, it
will publicize the results of their actions.
I look forward to working with my colleague on this amendment which
will add transparency to the bundling appeals process.
I, again, want to thank the gentlewoman from Texas for her work. I
urge adoption of the amendment, and I yield to Ranking Member Chabot.
Mr. CHABOT. I thank the chairwoman for yielding.
I want to thank the gentlelady from Texas for offering this very
helpful amendment. We've looked over it, and we think it's a very good
amendment. I've had the pleasure to serve on the Judiciary Committee
with the gentlelady for the past 13 years. I've agreed with some
amendments. Unfortunately, oftentimes, I've disagreed with her
amendments. But it's very nice to be able to agree with one that the
gentlelady has offered. So we thank the gentlelady for offering it.
Ms. JACKSON-LEE of Texas. Thank you very much. I thank the chairwoman
and the ranking member. And, Mr. Chairman, it's always good when light
comes into this place and we have consensus; and I'd ask my colleagues
to support this amendment.
I thank the Chairman and Ranking Member for allowing me to explain my
amendment to H.R. 1873, the ``Small Business Fairness in Contracting
Act.''
My amendment, which enjoys full support from Chairwoman Velazquez,
brings transparency, accountability and responsiveness to the process
of procuring federal contracts. By mandating that the Small Business
Administration (SBA) post on their Web site any action taken and the
result achieved, with regards to any disagreement between the SBA and
the contract procurement agency, individuals can be assured that their
government is open and honest. The purpose of this amendment is to
ensure transparency and accountability of the SBA to the small
businesses it was designed to protect and assist.
My amendment is straightforward. My amendment is vital. My amendment
is essential. And my amendment is bipartisan.
We may not realize the impact that small businesses have on our
lives, but they represent the sole diner that is open on a late night
trip, the catering service that turns a family gathering into a
lifetime of memories, or the mechanic that will not allow your first
car to die.
In conclusion, we the members of the 110th Congress are sending the
right message to the American people and small business owners that we
are committed to eliminating waste, fraud, and abuse.
Mr. Chairman, I yield back the balance of my time.

[[Page H4734]]

The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from Texas (Ms. Jackson-Lee).
The amendment was agreed to.

Amendment No. 8 Offered by Ms. Jackson-Lee of Texas

The CHAIRMAN. It is now in order to consider amendment No. 8 printed
in House Report 110-137.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 8 offered by Ms. Jackson-Lee of Texas:
Section 104, strike ``Senate.'' and insert ``Senate, and
any other committee of the House and Senate that has
jurisdiction over the agency concerned.''.

The SPEAKER pro tempore. Pursuant to House Resolution 383, the
gentlewoman from Texas (Ms. Jackson-Lee) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentlewoman from Texas.
Ms. JACKSON-LEE of Texas. I thank the distinguished chairman for his
yielding to me and appreciate his leadership in the Speaker's chair
this evening.
Let me again express my appreciation to the chairwoman of the full
Committee on Small Business and, as well, the ranking member for their
assistance in this amendment and their staff and my staff as well.
This amendment is one that reflects, again, that small businesses are
small businesses, and they need our assistance. They also work with a
number of agencies, and those agencies have contracting procurement
offices. Those, of course, are challenges for many small businesses,
one, to have a road map of how to get a procurement from a large, if
you will, government agency. Many times, there may be disputes.
This amendment simply says that any disagreement between the SBA and
the contracting procurement agency, the appropriate House and Senate
committees with jurisdiction over the matter should be informed. This
includes the Committees on Small Business and Oversight and Government
Reform. This, of course, is designed to ensure that both the SBA and
the procuring agency are accountable and forthcoming to the committees
which have jurisdiction over the procuring agency as it relates to
small businesses and meeting SBA and congressionally mandated goals. Of
course, this emphasizes the fact to make sure that we do have the
widespread of small businesses, women-owned businesses, minority-owned
businesses.
My amendment is simple; my amendment is, I think, helpful; and my
amendment is necessary and bipartisan. Small businesses are the
backbone of our society, and they represent an American dream for
numerous families and provide much-needed revenue to the local
municipalities they live in. So I therefore ask that that amendment be
accepted.
I thank the Chairman and Ranking Member for allowing me to explain my
amendment to H.R. 1873, the ``Small Business Fairness in Contracting
Act.''
My amendment has the full support of Chairwoman Velazquez and
mandates that whenever there is a disagreement between the SBA and the
contracting procurement agency, the appropriate House and Senate
committees with jurisdiction over the matter are informed. This
includes the Committees on Small Business and Oversight & Government
Reform. This amendment is designed to ensure that both the SBA and the
procuring agency are accountable and forthcoming to the committees
which have jurisdiction over the procuring agency, (as it relates to
small businesses and meeting SBA and congressionally mandated goals.)
My amendment is simple. My amendment is important. My amendment is
necessary. And my amendment is bi-partisan.
Small businesses are the backbone of our society. They represent the
American dream for numerous families, and provide much needed revenue
to the local municipalities they serve. The very nature of small
businesses tend to create a bond between customer and shop owner that
can not be duplicated within the confines of our super-malls, or on the
never ending maze we call the internet. Small business owners value the
relationship they share with their customers, and tend to go above and
beyond the normal call of duty to meet their clients' needs.
Mr. Chairman, I would yield to the distinguished gentlelady from New
York (Ms. Velazquez).
Ms. VELAZQUEZ. Mr. Chairman, I want to thank the gentlelady for
yielding.
We are prepared to accept this amendment. The gentlelady's amendment
provides a measure of enforcement. It requires agencies to send copies
of letters in which they have disagreed with the SBA's attempts to
maximize the usage of small businesses on bundled contracts to the
relevant authorizing committee.
The committees will soon become familiar with the extent to which
agencies within their jurisdiction are bundling contracts and will have
a better handle on the extent of this problem.
I urge adoption of this amendment, and I yield to the ranking member,
Mr. Chabot.
Mr. CHABOT. I thank the gentlelady for yielding, and I want to again
commend the gentlewoman for offering a helpful amendment. And we accept
this amendment as well.
Ms. JACKSON-LEE of Texas. I thank both the chairwoman and the ranking
member. I ask my colleagues to support this amendment.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from Texas (Ms. Jackson-Lee).
The amendment was agreed to.
Ms. VELAZQUEZ. Mr. Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Ms.
Sutton) having assumed the chair, Mr. Lincoln Davis of Tennessee,
Chairman of the Committee of the Whole House on the state of the Union,
reported that that Committee, having had under consideration the bill
(H.R. 1873) to reauthorize the programs and activities of the Small
Business Administration relating to procurement, and for other
purposes, had come to no resolution thereon.

____________________