[Congressional Record Volume 153, Number 168 (Thursday, November 1, 2007)]
[Senate]
[Pages S13702-S13711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself and Ms. Snowe):
  S. 2300. A bill to improve the Small Business Act, and for other 
purposes; to the Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, I am pleased today to be introducing 
legislation, the Small Business Contracting Revitalization Act of 2007, 
designed to protect the interests of small businesses in the Federal 
marketplace.
  As the Chairman of the Senate Committee on Small Business and 
Entrepreneurship, I have focused a considerable amount of energy 
promoting the interests of small businesses in the Federal marketplace. 
The legislation that we are introducing today marks a critical step 
forward in this process.
  It is no secret that the Committee on Small Business and 
Entrepreneurship places a great deal of importance on moving 
legislation forward in a bipartisan manner, the members of my Committee 
understand we represent the interests of all of our Nation's small 
businesses, the most important and dynamic segment of our economy. And 
nowhere is the bipartisan consensus stronger than in the area of 
Federal procurement and ensuring that our Nation's small businesses 
receive their fair share of procurement opportunities. I am pleased to 
once again be introducing bipartisan legislation with the Committee's 
ranking member, Senator Olympia Snowe. Regardless of who has chaired 
the Committee during our tenure together, we have both worked hard to 
improve small business Federal procurement opportunities.
  The legislation we are introducing today has one ultimate purpose, to 
expand opportunities for small businesses to contract with the Federal 
government. And the reality is that small businesses need all the help 
they can get with respect to accessing the Federal marketplace. In 
fiscal year 2006 according to Eagle Eye Publishing, the Federal 
Government missed its 23 percent contracting goal by 3 percent. That 3 
percent represents more than $12 billion in lost contracting dollars 
for small businesses. Service-disabled veterans fared the worst when it 
came to Federal contracting with only 0.87 percent of Federal dollars 
going to their firms. Women-owned firms only took in 2.57 percent of 
Federal dollars while they make up more than 30 percent of all 
privately held firms. Minority-owned firms continue to face barriers to 
Federal contracting. The SDB and 8(a) program only accounted for 6.75 
percent of Federal contracting. These numbers tell the stark story of 
why this legislation is so important. If small business is the engine 
that drives our economy when it comes to Federal procurement that 
engine needs an overhaul. Our bill looks to make that overhaul as we 
look at making improvements in five key areas.
  The first area we attempt to make improvements in is the area of 
contract bundling. Although contracting bundling may have started out 
as a good idea it has now become the prime example of the old saying 
that too much of a good thing can be very, very bad. The proliferation 
of bundled contracts coupled with a decimation of contracting 
professionals within the Government threatens to kill small businesses' 
ability to compete for Federal contracts. In our hearing on July 18, 
2007, on contracting, we heard testimony about the damage to 
opportunities for small businesses because of the lack of oversight and 
contract bundling.
  Our bill looks to address those issues by ensuring: accountability of 
senior agency management for all incidents of bundling; timely and 
accurate reporting of contract bundling information by all Federal 
agencies; and improved oversight of bundling regulation compliance by 
the Small Business Administration.
  The bill also ensures that contract consolidation decisions made by a 
department or agency, other than the Defense Department and its 
agencies, provide small businesses with appropriate opportunities to 
participate as prime contractors and subcontractors.
  The second area that this bill attempts to address is subcontracting. 
The Committee heard in the July 18 hearing and in a May 22, 2007, 
hearing on minority business about the challenges that many small 
business subcontractors face when dealing with

[[Page S13703]]

prime contractors. Witnesses related that the way subcontracting 
compliance is calculated creates opportunity for abuse. They also 
related that many small businesses will spend time, money and effort 
preparing bid proposals to be a part of a bid team and that once the 
contract is won they never hear from the prime contractor again. Many 
also complain about lack of timely payments after they have completed 
work.
  This bill attempts to deal with some of these issues by including 
provisions designed to prevent misrepresentations in subcontracting by 
prime contractors. To accomplish this, the bill: provides guidelines 
and procedures for reviewing and evaluating subcontractor participation 
in prime contracts; authorizes agency pilot programs that will grant 
contractual incentives to prime contractors who exceed their small 
business goals; and requires prime contractors who fail to comply with 
subcontracting plans to fund mentor-protege assistance programs for 
small businesses.
  The third area that our legislation attempts to address is the 
updating of the socioeconomic programs administered by the SBA. In our 
first hearing of the year on January 31, 2007, we heard veterans with 
service connected disabilities speak about the difficulty that they are 
having accessing the Federal marketplace. It is clear that the 
Government is not doing enough. In fiscal year 2006, service-disabled 
veteran-owned businesses only got 0.87 percent of all Federal 
procurement--well short of the 3 percent statutory goal.
  Our bill will assist service-disabled veteran-owned small businesses 
in obtaining Government contract and subcontract opportunities by 
expanding the authority for sole-source awards to SDV firms. In 
addition, the bill will allow: the surviving spouse of a service-
disabled veteran to retain the business's SDV designation for up to 10 
years following the veteran's death; the SBA to accept SDV firm 
certifications from the Department of Veterans Affairs; and the 
establishment of an SDV mentor-protege program by the SBA. Our veterans 
are returning from Iraq and Afghanistan, and we owe it to them to give 
them every opportunity at fulfilling the dream of entrepreneurship.
  We heard from women business owners in our September 20, 2007, 
hearing, on women's entrepreneurship that the time has come to 
implement the women's procurement program. The administration has 
continually postponed implementing a women's procurement program that 
became law 7 years ago. This bill tells SBA to get it done within 90 
days.
  Another program sorely needing our attention is the 8(a) program. 
This program was created to assist socially and economically 
disadvantaged small businesses, but, as we heard during the May 22, 
2007, hearing, the financial threshold for inclusion in the program is 
out-dated and too restrictive. The net-worth thresholds have not been 
updated since 1989. This bill allows for an inflationary adjustment to 
be made to the threshold and it excludes qualified retirement accounts 
from consideration while calculating the threshold so that businesses 
that belong in this program won't be shut out.
  This bill also makes a number of changes to the HUBZone program. The 
bill would expand HUBZones to areas adjacent to military installations 
affected by BRAC. It will also make other changes that will expand the 
HUBZone program to subcontracting as well as creating a mentor protege 
program. I understand the stated goal of this program is to develop 
areas of poverty through government contracting. And while I agree that 
this is a laudable goal I also remember the controversy that surrounded 
the creation of this program in 1996. I am keenly aware that the 
HUBZone program was created to supplant race-conscious programs like 
8(a) and the small disadvantaged business program. I fought hard to 
preserve those programs then and I will continue to preserve and 
strengthen those programs in the future. In the interests of moving 
this bill forward and improving all of the programs I have agreed to 
include these priorities for Ranking Member Snowe. I look forward to 
working with her to move the priorities that are important to all of 
the socio-economic groups in this legislation.
  The fourth area that we intend to update is the acquisition process. 
This bill aims to increase the number of small business contracting 
opportunities by including additional provisions to reduce bundled 
contracts and by reserving more contracts for small business concerns. 
The bill accomplishes this by: authorizing small business set-asides in 
multiple-award, multi-agency contracting vehicles; and requiring that 
agencies include advance plans on small business spending in their 
budgets and submit a report describing the impact of each bundled 
contract awarded by an agency. The bill also directs the SBA to 
annually report to Congress on small business participation in overseas 
Government contracts.
  The last area that we tackle in this legislation is small business 
size and status integrity. The Committee has heard from a number of 
small businesses about large businesses parading as small businesses. 
During our July hearing we looked at the list of the top 25 small 
businesses doing Federal contracting. On that list at least six clearly 
recognizable multi-billion dollar corporations were among the top 25 
small businesses listed including SAIC at number two. I have been 
adamant that small business contracts must go to small businesses. 
Small businesses are losing billions of dollars in opportunities 
because of these size standard loopholes.
  This bill attempts to address these issues by adding a new section, 
Sec. 38, to the Small Business Act that is designed to strengthen the 
Government's ability to enforce the size and status standards for small 
business certification. To achieve this, the new section establishes 
procedures for protests, through the SBA, of small business set-aside 
awards made to large businesses; requires the development of training 
programs for small business size standards; requires a government-wide 
policy on prosecutions of size and status fraud; and requires a 
detailed review of the size standards for small businesses by the SBA 
within 1 year.
  In closing, I want to reiterate that this has been a truly bi-
partisan effort and we look forward to working with the rest of the 
Senate as we move this legislation forward. It is well past time to 
provide greater opportunities for the thousands of small business 
owners who wish to do business with the Federal government. I believe 
that this legislation is a good step toward opening those doors of 
opportunity.
  I hope all of my colleagues will join us in supporting this bill Mr. 
President, ask unanimous consent that the text of the bill be printed 
in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2300

       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 Contracting Revitalization Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

                       TITLE I--CONTRACT BUNDLING

Sec. 101. Leadership and oversight.
Sec. 102. Removal of impediments to contract bundling database 
              implementation.
Sec. 103. Contract consolidation.
Sec. 104. Small business teams.

                   TITLE II--SUBCONTRACTING INTEGRITY

Sec. 201. GAO recommendations on subcontracting misrepresentations.
Sec. 202. Small business subcontracting improvements.
Sec. 203. Evaluating subcontracting participation.
Sec. 204. Pilot program.

       TITLE III--SMALL BUSINESS PROCUREMENT PROGRAMS IMPROVEMENT

   Subtitle A--Service-Disabled Veteran-Owned Small Business Program

Sec. 321. Certification.
Sec. 322. Transition period for surviving spouses or permanent care 
              givers.
Sec. 323. Mentor-protege program.
Sec. 324. Improving opportunities for service disabled veterans.

             Subtitle B--Women-Owned Small Business Program

Sec. 341. Implementation deadline.
Sec. 342. Certification.

            Subtitle C--Small Disadvantaged Business Program

Sec. 361. Certification.
Sec. 362. Net worth threshold.

[[Page S13704]]

Sec. 363. Extension of socially and economically disadvantaged business 
              program.

     Subtitle D--Historically Underutilized Business Zones Programs

Sec. 381. HUBZone small business concerns.
Sec. 382. Military base closings.

                    Subtitle E--BusinessLINC Program

Sec. 391. BusinessLINC Program.

                     TITLE IV--ACQUISITION PROCESS

Sec. 401. Procurement improvements.
Sec. 402. Reservation of prime contract awards for small businesses.
Sec. 403. GAO study of reporting systems.
Sec. 404. Micropurchase guidelines.
Sec. 405. Reporting on overseas contracts.
Sec. 406. Agency accountability.

           TITLE V--SMALL BUSINESS SIZE AND STATUS INTEGRITY

Sec. 501. Policy and presumptions.
Sec. 502. Annual certification.
Sec. 503. Meaningful protests of small business size and status.
Sec. 504. Training for contracting and enforcement personnel.
Sec. 505. Updated size standards.
Sec. 506. Small business size and status for purpose of multiple award 
              contracts.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the terms ``service-disabled veteran'', ``small 
     business concern'', and ``small business concern owned and 
     controlled by service-disabled veterans'' have the same 
     meanings as in section 3 of the Small Business Act (15 U.S.C. 
     632); and
       (3) the terms ``small business concern owned and controlled 
     by socially and economically disadvantaged individuals'' and 
     ``small business concern owned and controlled by women'' have 
     the same meanings as in section 8(d) of the Small Business 
     Act (15 U.S.C. 637(d)).

                       TITLE I--CONTRACT BUNDLING

     SEC. 101. LEADERSHIP AND OVERSIGHT.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by adding at the end the following:
       ``(q) Bundling Accountability Measures.--
       ``(1) Governmentwide accountability on bundling.--
       ``(A) Reinstatement of reporting requirements.--In addition 
     to submitting such annual reports on all incidents of 
     bundling to the Administrator as may be required under 
     Federal law, the head of each Federal agency shall submit an 
     annual report on all incidents of bundling to the 
     Administrator for Federal Procurement Policy.
       ``(B) Report to congress.--The Administrator shall promptly 
     review and annually report to Congress information on any 
     discrepancies between the reports on bundled contracts from 
     Federal agencies to the Administration, the Office of Federal 
     Procurement Policy, and the Federal procurement data system 
     described in subsection (c)(5).
       ``(2) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any contract award above the 
     substantial bundling threshold of such agency a provision 
     soliciting small business teams and joint ventures.
       ``(3) Implementation of comptroller general's 
     recommendations.--Not later than 270 days after the date of 
     enactment of this subsection, the Administrator, with the 
     concurrence of the Administrator for Federal Procurement 
     Policy, shall ensure that, in response to the recommendations 
     of the Comptroller General of the United States contained in 
     Report No. GAO-04-454, titled `Contract Management: Impact of 
     Strategy to Mitigate Effects of Contract Bundling Is 
     Uncertain'--
       ``(A) modifications are made to the Federal procurement 
     data system described in subsection (c)(5) to capture 
     information concerning the impact of bundling on small 
     business concerns;
       ``(B) the Administrator receives from each Federal agency 
     an annual report containing information concerning--
       ``(i) the number and dollar value of bundled contract 
     actions and contracts;
       ``(ii) benefit analyses (including the total dollars saved) 
     to justify why contracts are bundled;
       ``(iii) the number of small business concerns losing 
     Federal contracts because of bundling;
       ``(iv) how contractors awarded bundled contracts complied 
     with the agencies subcontracting plans; and
       ``(v) how mitigating actions, such as teaming arrangements, 
     provided increased contracting opportunities to small 
     business concerns.
       ``(4) Governmentwide review of bundling interpretations.--
       ``(A) In general.--The Administrator, with the concurrence 
     of the Chief Counsel for Advocacy and the Inspector General, 
     shall conduct a governmentwide review of the Federal agencies 
     legal interpretations of antibundling statutory and 
     regulatory requirements.
       ``(B) Report.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator shall submit 
     to Congress a report containing the findings of the review 
     conducted under subparagraph (A).
       ``(5) Agency policies on reduction of contract bundling.--
     Not later than 180 days after the date of enactment of this 
     subsection, the head of each Federal agency shall, with 
     concurrence of the Administrator, issue a policy on the 
     reduction of contract bundling.
       ``(6) Best practices on contract bundling reduction and 
     mitigation.--Not later than 60 days after the date of the 
     enactment of this subsection, the Administrator shall publish 
     a guide on best practices to reduce contract bundling, as 
     directed by the Strategy and Report on Contract Bundling 
     issued by the Office of Management and Budget on October 29, 
     2002.
       ``(7) Contract bundling mitigation through 
     subcontracting.--
       ``(A) In general.--The Administrator shall ensure that each 
     State is assigned a commercial market representative to 
     provide services for that State.
       ``(B) Assignment.--A commercial market representative may 
     not be assigned by the Administrator to provide services for 
     more than 2 States.
       ``(8) Contract bundling oversight.--
       ``(A) Policy.--It is the policy of Congress that the 
     Administrator shall take appropriate actions to remedy 
     contract bundling oversight problems identified by the 
     Inspector General of the Administration in Report No. 5-14, 
     titled `Audit of the Contract Bundling Program'.
       ``(B) Corrective action.--
       ``(i) Assignment of procurement center representatives.--

       ``(I) In general.--The Administrator shall assign not fewer 
     than 1 procurement center representative to each major 
     procurement center, as designated by the Administrator under 
     section 8(l)(6).
       ``(II) Reporting.--The Administrator shall annually submit 
     to Congress a report--

       ``(aa) containing a list of designations of major 
     procurement centers in effect during the relevant fiscal 
     year;
       ``(bb) detailing the criteria for designations; and
       ``(cc) including a trend analysis concerning the impact of 
     reviews and placements of procurement center representatives 
     and breakout procurement center representatives.
       ``(ii) Timely review of bundled contracts.--Not later than 
     30 days after receiving a submission from a Federal agency, 
     the Administrator shall review any potential bundled contract 
     submitted to the Administrator for review by any Federal 
     agency.''.
       (b) Technical Correction.--Section 15(g) of the Small 
     Business Act (15 U.S.C. 644(g)) is amended by striking 
     ``Administrator of the Office of Federal Procurement Policy'' 
     each place such term appears and inserting ``Administrator 
     for Federal Procurement Policy''.
       (c) Procurement Center Representatives.--Section 15(l) of 
     the Small Business Act (15 U.S.C. 644(l)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1)(A) A procurement center representative shall carry 
     out the activities described in paragraph (2), and shall be 
     an advocate for the maximum practicable utilization of small 
     business concerns, whenever appropriate.
       ``(B) A procurement center representative is authorized to 
     assist contracting officers in the performance of market 
     research in order to locate small business concerns, small 
     business concerns owned and controlled by socially and 
     economically disadvantaged individuals, small business 
     concerns owned and controlled by women, small business 
     concerns owned and controlled by service-disabled veterans, 
     small business concerns owned and controlled by veterans, and 
     HUBZone small business concerns capable of satisfying agency 
     needs.
       ``(C) Any procurement center representative assigned under 
     this paragraph shall be in addition to the representative 
     referred to in subsection (k).'';
       (2) in paragraph (2)--
       (A) by striking ``breakout'' each place that term appears;
       (B) in subparagraph (F), by striking ``and'' at the end;
       (C) in subparagraph (G), by striking the period at the end 
     and inserting a semicolon; and
       (D) by adding at the end the following:
       ``(H)(i) identify and review solicitations that involve 
     contract consolidations for potential bundling of contract 
     requirements; and
       ``(ii) recommend small business concern participation as 
     contractors, including small business concern teams, whenever 
     appropriate, prior to the issuance of a solicitation 
     described in clause (i);
       ``(I) manage the activities of the breakout procurement 
     center representative, commercial marketing representative, 
     and technical assistant; and
       ``(J) submit an annual report to the Administrator 
     containing--
       ``(i) the number of proposed solicitations reviewed;
       ``(ii) the contract recommendations made on behalf of small 
     business concerns;
       ``(iii) the number and total amount of contracts broken out 
     from bundled or consolidated contracts for full and open 
     competition or small business concern set-aside; and
       ``(iv) the number and total amount of contract dollars 
     awarded to small business concerns as a result of actions 
     taken by the procurement center office.'';
       (3) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively;

[[Page S13705]]

       (4) by striking paragraph (3) and inserting the following:
       ``(3)(A) The Administrator may assign a breakout 
     procurement center representative, which shall be in addition 
     to any representative assigned under paragraph (1).
       ``(B) A breakout procurement center representative--
       ``(i) shall be an advocate for the breakout of items for 
     procurement through full and open competition or small 
     business concern set-aside, whenever appropriate, from new, 
     existing, bundled, or consolidated contracts; and
       ``(ii) is authorized--
       ``(I) to recommend small business concern participation in 
     existing contracts that were previously not reviewed for 
     small business concern participation;
       ``(II) to perform the duties described in paragraph (2), as 
     necessary to perform the due diligence required for a 
     breakout recommendation; and
       ``(III) to appeal the failure to act favorably on any 
     recommendation made under subclause (I).
       ``(C) Any appeal under subparagraph (B)(ii)(III) shall be 
     filed and processed in the same manner and subject to the 
     same conditions and limitations as an appeal filed by the 
     Administrator under subsection (a).
       ``(4)(A) The Administrator may assign a commercial 
     marketing representative to identify and market small 
     business concerns to large prime contractors and assist small 
     business concerns in identifying and obtaining subcontracts.
       ``(B) A commercial marketing representative assigned under 
     this paragraph shall--
       ``(i) conduct compliance reviews of prime contractors;
       ``(ii) counsel small business concerns on how to obtain 
     subcontracts;
       ``(iii) conduct matchmaking activities to facilitate 
     subcontracting to small business concerns;
       ``(iv) work in coordination with local small business 
     development centers, technical assistance centers, and other 
     regional economic development entities to identify small 
     business concerns capable of competing for Federal contracts; 
     and
       ``(v) provide orientation and training on the 
     subcontracting assistance program under section 8(d)(4)(E) 
     for both large and small business concerns.
       ``(C) Any commercial marketing representative assigned 
     under this paragraph shall be in addition to any procurement 
     center representative assigned under paragraph (1) or (3).'';
       (5) in paragraph (5), as so designated by this section--
       (A) in the second sentence, by inserting ``the procurement 
     center representative and'' before ``the breakout 
     procurement''; and
       (B) in the third sentence, by striking ``(6)'';
       (6) in paragraph (6), as so designated by this section--
       (A) in subparagraph (A), by striking ``The breakout 
     procurement center representative'' and inserting the 
     following: ``The procurement center representative, breakout 
     procurement center representative, commercial marketing 
     representative,'';
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B);
       (7) in paragraph (7), as so designated by this section, by 
     striking ``other than commercial items'' and all that follows 
     through the end of the paragraph and inserting the following: 
     ``commercial items for authorized resale, or other than 
     commercial items, and which has the potential to incur 
     significant savings or create significant procurement 
     opportunities for small business concerns as the result of 
     the placement of a breakout procurement center 
     representative.''; and
       (8) in paragraph (8), as so designated by this section--
       (A) by striking ``breakout'' each place the term appears; 
     and
       (B) by adding at the end the following:
       ``(C) The procurement center representative shall conduct 
     training sessions to inform procurement staff at Federal 
     agencies about the reporting requirements for bundled 
     contracts and potentially bundled contracts, and how to work 
     effectively with the procurement center representative 
     assigned to such agencies to locate capable small business 
     concerns to meet the needs of the agencies.''.

     SEC. 102. REMOVAL OF IMPEDIMENTS TO CONTRACT BUNDLING 
                   DATABASE IMPLEMENTATION.

       Section 15(p)(5)(B) of the Small Business Act (15 U.S.C. 
     644(p)(5)(B) is amended by striking ``procurement 
     information'' and all that follows through the end of the 
     subparagraph and inserting the following: ``any relevant 
     procurement information as may be required to implement this 
     section, and shall perform, at the request of the 
     Administrator, any other action necessary to enable 
     completion of the contract bundling database authorized by 
     this section by not later than 270 days after the date of 
     enactment of the Small Business Contracting Revitalization 
     Act of 2007.''.

     SEC. 103. CONTRACT CONSOLIDATION.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 37 as section 39; and
       (2) by inserting after section 36 the following:

     ``SEC. 37. CONTRACT CONSOLIDATION.

       ``(a) Policy.--Except for the Department of Defense and any 
     agency of that department, the head of each Federal 
     department or agency shall ensure that the decisions made by 
     that department or agency regarding consolidation of contract 
     requirements of that department or agency are made with a 
     view to providing small business concerns with appropriate 
     opportunities to participate in the procurements of that 
     department or agency as prime contractors and appropriate 
     opportunities to participate in such procurements as 
     subcontractors.
       ``(b) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--
       ``(1) In general.--Except for the Department of Defense and 
     any agency of that department, the head of a Federal 
     department or agency may not execute an acquisition strategy 
     that includes a consolidation of contract requirements of 
     that department or agency with a total value in excess of 
     $2,000,000, unless the senior procurement executive concerned 
     first--
       ``(A) conducts market research;
       ``(B) identifies any alternative contracting approaches 
     that would involve a lesser degree of consolidation of 
     contract requirements; and
       ``(C) determines that the consolidation is necessary and 
     justified.
       ``(2) Determination that consolidation is necessary and 
     justified.--A senior procurement executive may determine that 
     an acquisition strategy involving a consolidation of contract 
     requirements is necessary and justified for the purposes of 
     paragraph (1) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under 
     subparagraph (B) of that paragraph. However, savings in 
     administrative or personnel costs alone do not constitute, 
     for such purposes, a sufficient justification for a 
     consolidation of contract requirements in a procurement 
     unless the total amount of the cost savings is expected to be 
     substantial in relation to the total cost of the procurement.
       ``(3) Benefits to be considered.--Benefits considered for 
     the purposes of paragraphs (1) and (2) may include cost and, 
     regardless of whether quantifiable in dollar amounts--
       ``(A) quality;
       ``(B) acquisition cycle;
       ``(C) terms and conditions; and
       ``(D) any other benefit.
       ``(c) Definitions.--In this section--
       ``(1) the terms `consolidation of contract requirements' 
     and `consolidation', with respect to contract requirements of 
     a Federal department or agency, mean a use of a solicitation 
     to obtain offers for a single contract or a multiple award 
     contract to satisfy 2 or more requirements of that department 
     or agency for goods or services that have previously been 
     provided to, or performed for, that department or agency 
     under 2 or more separate contracts smaller in cost than the 
     total cost of the contract for which the offers are 
     solicited;
       ``(2) the term `multiple award contract' means--
       ``(A) a multiple award task order contract or delivery 
     order contract that is entered into under the authority of 
     sections 303H through 303K of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253h through 
     253k); and
       ``(B) any other indeterminate delivery, indeterminate 
     quantity contract that is entered into by the head of a 
     Federal department or agency with 2 or more sources pursuant 
     to the same solicitation; and
       ``(3) the term `senior procurement executive concerned' 
     means, with respect to a Federal department or agency, the 
     official designated under section 16(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(c)) as the 
     senior procurement executive for that department or 
     agency.''.

     SEC. 104. SMALL BUSINESS TEAMS.

       If more than 1 business concern that is a small business 
     concern based on the size standards established under section 
     3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
     participating in a contract that is subject to section 125.6 
     of title 13, Code of Federal Regulations (or any successor 
     thereto), the portion of that contract performed by each such 
     small business concern may be aggregated in determining 
     whether the performance of that contract is in compliance 
     with that section if--
       (1) the head of the Federal department or agency concerned 
     makes a determination in the solicitation that such 
     aggregation will improve contracting opportunities for such 
     small business concerns; and
       (2) the Administrator does not object to such aggregation.

                   TITLE II--SUBCONTRACTING INTEGRITY

     SEC. 201. GAO RECOMMENDATIONS ON SUBCONTRACTING 
                   MISREPRESENTATIONS.

       Section 8 of the Small Business Act (15 U.S.C. 637) is 
     amended by adding at the end the following:
       ``(o) Prevention of Misrepresentations in Subcontracting; 
     Implementation of Comptroller General's Recommendations.--
       ``(1) Statement of policy.--It is the policy of Congress 
     that the recommendations of the Comptroller General of the 
     United States in Report No. 05-459, concerning oversight 
     improvements necessary to ensure maximum practicable 
     participation by small business concerns in subcontracting, 
     shall be implemented governmentwide, to the maximum extent 
     possible.
       ``(2) Contractor compliance.--Compliance of Federal prime 
     contractors with small

[[Page S13706]]

     business subcontracting plans shall be evaluated as a 
     percentage of obligated prime contract dollars, as well as a 
     percentage of subcontracts awarded.
       ``(3) Issuance of agency policies.--Not later than 180 days 
     after the date of enactment of this subsection, the head of 
     each Federal agency shall issue a policy on small business 
     subcontracting compliance, including assignment of compliance 
     responsibilities between contracting, small business, and 
     program offices and periodic oversight and review 
     activities.''.

     SEC. 202. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       (a) Certifications Required.--Section 8(d)(6) of the Small 
     Business Act (15 U.S.C. 637(d)(6)) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end;
       (2) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end, the following:
       ``(G) certification that the offeror or bidder will acquire 
     articles, equipment, supplies, services, or materials, or 
     obtain the performance of construction work from small 
     business concerns in the amount and quality used in preparing 
     and submitting to the contracting agency the bid or proposal, 
     unless such small business concerns are no longer in business 
     or can no longer meet the quality, quantity, or delivery 
     date.''.
       (b) Penalties for False Certifications.--Section 16(f) of 
     the Small Business Act (15 U.S.C. 645(f)) is amended by 
     striking ``of this Act'' and inserting ``or the reporting 
     requirements of section 8(d)(11)''.

     SEC. 203. EVALUATING SUBCONTRACTING PARTICIPATION.

       (a) Significant Factors.--Section 8(d)(4)(G) of the Small 
     Business Act (15 U.S.C. 637(d)(4)(G)) is amended by striking 
     ``a bundled'' and inserting ``any''.
       (b) Evaluation Reports.--Section 8(d)(10) of the Small 
     Business Act (15 U.S.C. 637(d)(10)) is amended--
       (1) by striking ``is authorized to'' and inserting 
     ``shall'';
       (2) in subparagraph (B), by striking ``and'' at the end;
       (3) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(D) report the results of each evaluation under 
     subparagraph (C) to the appropriate contracting officers.''.
       (c) Centralized Database; Payments Pending Reports.--
     Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
     amended--
       (1) by redesignating paragraph (11) as paragraph (14); and
       (2) by inserting after paragraph (10) the following:
       ``(11) Certification.--A report submitted by the prime 
     contractor under paragraph (6)(E) to determine the attainment 
     of a subcontract utilization goal under any subcontracting 
     plan entered into with a Federal agency under this subsection 
     shall contain the name and signature of the president or 
     chief executive officer of the contractor, certifying that 
     the subcontracting data provided in the report are accurate 
     and complete.
       ``(12) Centralized database.--The results of an evaluation 
     under paragraph (10)(C) shall be included in a national 
     centralized governmentwide database.
       ``(13) Payments pending reports.--Each Federal agency 
     having contracting authority shall ensure that the terms of 
     each contract for goods and services includes a provision 
     allowing the contracting officer of an agency to withhold an 
     appropriate amount of payment with respect to a contract 
     (depending on the size of the contract) until the date of 
     receipt of complete, accurate, and timely subcontracting 
     reports in accordance with paragraph (11).''.

     SEC. 204. PILOT PROGRAM.

       Section 8 of the Small Business Act (15 U.S.C. 637), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(p) Subcontracting Incentives and Remedial Assistance.--
       ``(1) Pilot program on incentives and mentor-protege 
     remedial assistance.--
       ``(A) In general.--Each Federal agency is authorized to 
     operate a pilot program to provide contractual incentives to 
     prime contractors that exceed their small business 
     subcontracting goals and to direct prime contractors that 
     fail to comply with their small business subcontracting plans 
     to fund mentor-protege assistance for small business concerns 
     (in this subsection referred to as the `program').
       ``(B) Termination.--The authority under this paragraph 
     shall terminate on September 30, 2010.
       ``(2) Assessment of mentor-protege assistance funding.--The 
     mentor-protege assistance funding assessed by an agency under 
     the terms of the program shall be determined in relation to 
     the dollar amount by which the prime contractor failed its 
     small business subcontracting goals.
       ``(3) Expenditure of mentor-protege assistance funding.--
     The prime contractor shall expend the mentor-protege 
     assistance funding assessed by the agency under the terms of 
     the program on mentor-protege assistance to small business 
     concerns, as provided by a mentor-protege agreement approved 
     by the relevant Federal agency.
       ``(4) Annual report required.--Each Federal agency 
     described in paragraph (1) shall submit an annual report to 
     the Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives containing a detailed description of the 
     pilot program, as carried out by that agency, including the 
     number of participating companies, any incentives provided to 
     prime contractors, as appropriate, and the amounts and types 
     of mentor-protege assistance provided to small business 
     concerns.''.

       TITLE III--SMALL BUSINESS PROCUREMENT PROGRAMS IMPROVEMENT

   Subtitle A--Service-Disabled Veteran-Owned Small Business Program

     SEC. 321. CERTIFICATION.

       (a) Congressional Intent.--It is the intent of Congress 
     that the Administrator should accept certifications by the 
     Department of Veterans Affairs, under such criteria as the 
     Administrator may prescribe, by regulation or order, in 
     certifying small business concerns owned and controlled by 
     service-disabled veterans
       (b) Regulations.--Before implementing subsection (a), the 
     Administrator shall promulgate regulations or orders ensuring 
     appropriate certification safeguards to be implemented by the 
     Administration and the Department of Veterans Affairs.
       (c) Registration Portal.--The Administrator and the 
     Secretary of Veterans Affairs shall ensure that small 
     business concerns owned and controlled by service-disabled 
     veterans may apply to participate in all programs for such 
     small business concerns of the Administrator or the Secretary 
     through a single process.

     SEC. 322. TRANSITION PERIOD FOR SURVIVING SPOUSES OR 
                   PERMANENT CARE GIVERS.

       Section 3(q)(2) of the Small Business Act (15 U.S.C. 
     632(q)(2)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) the management and daily business operations of which 
     are controlled--
       ``(i) by 1 or more service-disabled veterans or, in the 
     case of a veteran with permanent and severe disability, the 
     spouse or permanent care giver of such veteran; or
       ``(ii) for a period of not longer than 10 years after the 
     death of a service-disabled veteran, by a surviving spouse or 
     permanent caregiver thereof.''.

     SEC. 323. MENTOR-PROTEGE PROGRAM.

       The Administrator may establish a mentor-protege program 
     for small business concerns owned and controlled by service-
     disabled veterans, modeled on the mentor-protege program of 
     the Administration for small businesses participating in 
     programs under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)).

     SEC. 324. IMPROVING OPPORTUNITIES FOR SERVICE DISABLED 
                   VETERANS.

       Section 36(a) of the Small Business Act (15 U.S.C. 657f(a)) 
     is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``may'' and inserting ``shall''; and
       (2) in paragraph (1), by striking ``and the contracting 
     officer'' and all that follows through ``contracting 
     opportunity''.

             Subtitle B--Women-Owned Small Business Program

     SEC. 341. IMPLEMENTATION DEADLINE.

       Not later than 90 days after the date of enactment of this 
     Act, the Administrator shall implement the procurement 
     program for small business concerns owned and controlled by 
     women under section 8(m) of the Small Business Act (15 U.S.C. 
     637(m)).

     SEC. 342. CERTIFICATION.

       (a) Congressional Intent.--It is the intent of Congress 
     that the Administrator should accept certifications by other 
     Federal agencies and State and local governments and 
     certifications from responsible national certifying entities, 
     under such criteria as the Administrator may prescribe, by 
     regulation or order, in certifying small business concerns 
     owned and controlled by women for purposes of the program 
     under section 8(m) of the Small Business Act (15 U.S.C. 
     637(m)).
       (b) Regulations.--Prior to implementing subsection (a), the 
     Administrator shall promulgate regulations ensuring 
     appropriate certification safeguards to be implemented by the 
     Administration and the agencies and entities described in 
     subsection (a).

            Subtitle C--Small Disadvantaged Business Program

     SEC. 361. CERTIFICATION.

       (a) Congressional Intent.--It is the intent of Congress 
     that the Administrator should accept certifications by other 
     Federal agencies and State and local governments and 
     certifications from responsible national certifying entities, 
     under such criteria as the Administrator may prescribe, by 
     regulation or order, in certifying small business concerns 
     owned and controlled by socially and economically 
     disadvantaged individuals.
       (b) Regulations.--Prior to implementing subsection (a), the 
     Administrator shall promulgate regulations or orders ensuring 
     appropriate certification safeguards to be implemented by the 
     Administration and the agencies and entities described in 
     subsection (a).

     SEC. 362. NET WORTH THRESHOLD.

       Section 8(a)(6)(A) of the Small Business Act (15 U.S.C. 
     637(a)(6)(A)) is amended--
       (1) by inserting ``(i)'' after ``(6)(A)'';
       (2) by striking ``In determining the degree of diminished 
     credit'' and inserting the following:
       ``(ii)(I) In determining the degree of diminished credit'';
       (3) by striking ``In determining the economic 
     disadvantage'' and inserting the following:

[[Page S13707]]

       ``(iii) In determining the economic disadvantage''; and
       (4) by inserting after clause (ii)(I), as so designated by 
     this section, the following:
       ``(II) In determining the assets and net worth of a 
     socially disadvantaged individual under this subparagraph, 
     the Administrator shall not consider any assets of such 
     individual in a qualified retirement plan, as that term is 
     defined in section 4974(c) of the Internal Revenue Code of 
     1986.
       ``(III) The Administrator shall establish procedures that--
       ``(aa) account for inflationary adjustments to, and include 
     a reasonable assumption of, the average income and net worth 
     of market dominant competitors; and
       ``(bb) require an annual inflationary adjustment to the 
     average income and net worth requirements under this 
     subsection.''.

     SEC. 363. EXTENSION OF SOCIALLY AND ECONOMICALLY 
                   DISADVANTAGED BUSINESS PROGRAM.

       (a) In General.--Section 7102(c) of the Federal Acquisition 
     Streamlining Act of 1994 (15 U.S.C. 644 note) is amended by 
     striking ``September 30, 2003'' and inserting ``September 30, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect 30 days after the date of enactment of this 
     Act.

     Subtitle D--Historically Underutilized Business Zones Programs

     SEC. 381. HUBZONE SMALL BUSINESS CONCERNS.

       Section 3(p)(3) of the Small Business Act (15 U.S.C. 
     632(p)(3) is amended--
       (1) in subparagraph (D), by striking ``or'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(F) a small business concern owned and controlled by an 
     organization described in section 8(a)(15).''.

     SEC. 382. MILITARY BASE CLOSINGS.

       (a) HUBZone Status.--
       (1) In general.--Section 3(p)(4)(D) of the Small Business 
     Act (15 U.S.C. 632(p)(4)(D)) is amended--
       (A) by redesignating clauses (i), (ii), (iii), and (iv) as 
     subclauses (I), (II), (III), and (IV), respectively, and 
     adjusting the margin accordingly;
       (B) by striking ``means lands'' and inserting the following 
     ``means--
       ``(i) lands''; and
       (C) by striking the period at the end and inserting the 
     following: ``; and
       ``(ii) during the 5-year period beginning on the date that 
     a military installation is closed or leased space is vacated 
     under an authority described in clause (i), areas adjacent to 
     or within a reasonable commuting distance of lands described 
     in clause (i) (which shall not include any area that is more 
     than 15 miles from the exterior boundary of that military 
     installation) that are detrimentally, substantially, and 
     directly economically affected by the closing of that 
     military installation, as determined by the Secretary of 
     Housing and Urban Development.''.
       (2) Feasibility study.--Not later than 6 months after the 
     date of enactment of this Act, the Secretary of Housing and 
     Urban Development shall conduct a study of the feasibility 
     of, and submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding, 
     designating as a HUBZone (as that term is defined in section 
     3 of the Small Business Act (15 U.S.C. 632), as amended by 
     this Act) any area that does not qualify as a HUBZone solely 
     because that area is located within a county located within a 
     metropolitan statistical area (as defined by the Office of 
     Management and Budget). The report submitted under this 
     paragraph shall include any legislative recommendations 
     relating to the findings of the feasibility study conducted 
     under this paragraph.
       (b) Subcontracting Goal.--Section 15(g)(1) of the Small 
     Business Act (15 U.S.C. 644(g)(1)) is amended by inserting 
     ``and subcontract'' after ``not less than 3 percent of the 
     total value of all prime contract''.
       (c) Mentor-Protege Program.--The Administrator may 
     establish a mentor-protege program for HUBZone small business 
     concerns (as that term is defined in section 3 of the Small 
     Business Act (15 U.S.C. 632)) and small business concerns 
     owned and controlled by women, modeled on the mentor-protege 
     program of the Administration for small business concerns 
     participating in programs under section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)).

                    Subtitle E--BusinessLINC Program

     SEC. 391. BUSINESSLINC PROGRAM.

       Section 8(n) of the Small Business Act (15 U.S.C. 637(n)) 
     is amended to read as follows:
       ``(n) Business Grants and Cooperative Agreements.--
       ``(1) In general.--In accordance with this subsection, the 
     Administrator shall make grants available to enter into 
     cooperative agreements with any coalition of private 
     entities, not-for-profit entities, public entities, or any 
     combination of private, not-for-profit, and public entities--
       ``(A) to expand business-to-business relationships between 
     large and small business concerns; and
       ``(B) to provide, directly or indirectly, with online 
     information and a database of companies that are interested 
     in mentor-protege programs or community-based, statewide, or 
     local business development programs.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $3,000,000 
     for each of fiscal years 2008 through 2010, to remain 
     available until expended.
       ``(3) Reports to congress.--
       ``(A) In general.--Not later than April 30, 2009, and 
     annually thereafter, the Associate Administrator of Business 
     Development of the Administration shall collect data on the 
     BusinessLINC Program and submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives, a report 
     on the effectiveness of the BusinessLINC Program.
       ``(B) Contents.--Each report submitted under subparagraph 
     (A) shall include, for the year covered by the report--
       ``(i) the number of programs administered in each State 
     under the BusinessLINC Program;
       ``(ii) the number of grant awards under each program 
     described in clause (i) and the date of each such award;
       ``(iii) the number of participating large businesses and 
     participating small business concerns;
       ``(iv) the number and dollar amount of the contracts in 
     effect in each State as a result of the programs run by each 
     grant recipient under the BusinessLINC Program; and
       ``(v) the number of mentor-protege, teaming relationships, 
     or partnerships created as a result of the BusinessLINC 
     Program.
       ``(4) Definition.--In this subsection, the term 
     `BusinessLINC Program' means the grant program authorized 
     under paragraph (1).''.

                     TITLE IV--ACQUISITION PROCESS

     SEC. 401. PROCUREMENT IMPROVEMENTS.

       Section 15 of the Small Business Act (15 U.S.C. 644), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(r) Bundling Data Fields.--For each contract (including 
     task or delivery orders against governmentwide or other 
     multiple award contracts, indefinite quantity or indefinite 
     delivery contracts, and blanket purchase agreements) that is 
     bundled or consolidated, an agency shall report publicly, not 
     later than 7 days after the date of the award, by means of 
     the Federal governmentwide procurement data system described 
     in subsection (c)(5)--
       ``(1) the number of contracts involving small business 
     concerns that were displaced by the bundled or consolidated 
     action;
       ``(2) the number of small business concerns that the 
     contracting officer identified as able to bid on all or part 
     of requirements; and
       ``(3) the projected cost savings anticipated as a result of 
     bundling or consolidating the requirements.
       ``(s) Governmentwide Small Business Training.--The 
     Administrator, in conjunction with the head of any other 
     appropriate Federal agency, shall coordinate the development 
     of governmentwide training courses on small business 
     contracting and subcontracting with small business concerns, 
     with special focus on the role of the small business 
     specialist as a vital part of the acquisition team.''.

     SEC. 402. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
                   BUSINESSES.

       Section 15 of the Small Business Act (15 U.S.C. 644), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(t) Multiple Award Contracts.--Not later than 180 days 
     after the date of enactment of this subsection, the head of 
     each Federal agency, with the concurrence of the 
     Administrator, shall, by regulation, establish criteria for 
     such agency--
       ``(1) setting aside part or parts of a multiple award 
     contract for small business concerns, including the 
     subcategories of small business concerns identified in 
     subsection (g)(2);
       ``(2) setting aside multiple award contracts for small 
     business concerns, including the subcategories of small 
     business concerns identified in subsection (g)(2); and
       ``(3) reserving 1 or more contract awards for small 
     business concerns under full and open multiple award 
     procurements, including the subcategories of small business 
     concerns identified in subsection (g)(2).''.

     SEC. 403. GAO STUDY OF REPORTING SYSTEMS.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study of--
       (1) the accuracy and timeliness of data collected under the 
     Small Business Act (15 U.S.C. 631 et seq.) in the CCR 
     database of the Administration, or any successor database, 
     the Federal procurement data system described in section 
     15(c)(5) of the Small Business Act (15 U.S.C. 644(c)(5)), and 
     the Subcontracting Reporting System; and
       (2) the availability of small business information in these 
     computer-based systems to Congress, Federal agencies, and the 
     public.
       (b) Matters Covered.--The study conducted under subsection 
     (a) shall include--
       (1) an assessment of the accuracy and timeliness of the 
     information provided by the data collection systems described 
     in subsection (a)(1) and recommendations as to how any 
     deficiencies in such systems can be eliminated;
       (2) a review of the system manuals for such systems and a 
     determination of the adequacy of such manuals in assisting 
     proper operation and administration of the systems;
       (3) a review of the user manuals for such systems and a 
     determination of the clarity and ease of use of such manuals 
     in assisting those reporting into such systems and those 
     obtaining information from such systems;

[[Page S13708]]

       (4) the adequacy of the training given to individuals 
     responsible for reporting into such systems and 
     recommendations for any necessary improvements;
       (5) an assessment of the adequacy of any safeguards in such 
     systems against the reporting of inaccurate and untimely data 
     and the need for any additional safeguards; and
       (6) the system architecture, Internet access, user-friendly 
     characteristics, flexibility to add new data fields, ability 
     to provide structured and unstructured reports, range of 
     information necessary to meet user needs, and adequacy of 
     system and user manuals and instructions of such systems.
       (c) Report.--Not later than November 30, 2008, the 
     Comptroller General shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives a report 
     containing the results of the study under this section.

     SEC. 404. MICROPURCHASE GUIDELINES.

       Not later than 180 days after the date of enactment of this 
     Act, the Director of the Office of Federal Procurement Policy 
     shall issue guidelines regarding the analysis of purchase 
     card expenditures to identify opportunities for achieving and 
     accurately measuring fair participation of small business 
     concerns in micropurchases, consistent with the national 
     policy on small business participation in Federal 
     procurements set forth in sections 2(a) and 15(g) of the 
     Small Business Act (15 U.S.C. 631(a) and 644(g)), and 
     dissemination of best practices for participation of small 
     business concerns in micropurchases.

     SEC. 405. REPORTING ON OVERSEAS CONTRACTS.

       Not later than 180 days after the end of each fiscal year, 
     the Administrator shall submit to Congress a report 
     identifying what portion of contracts and subcontracts 
     awarded for performance outside of the United States were 
     awarded to small business concerns.

     SEC. 406. AGENCY ACCOUNTABILITY.

       (a) In General.--Section 15(g)(2) of the Small Business Act 
     (15 U.S.C. 644(g)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) in the first sentence, by striking ``shall, after 
     consultation'' and inserting the following: ``shall--
       ``(i) after consultation'';
       (3) by striking ``agency. Goals established'' and inserting 
     the following: ``agency;
       ``(ii) identify a percentage of the procurement budget of 
     the agency to be awarded to small business concerns, in 
     consultation with the Office of Small and Disadvantaged 
     Business Utilization of the agency, which information shall 
     be included in the strategic plan required under section 306 
     of title 5, United States Code, and the annual budget 
     submission to Congress by that agency, and, upon request, in 
     any testimony provided by that agency before Congress in 
     connection with the budget process; and
       ``(iii) report, as part of its annual performance plan, the 
     extent to which the agency achieved the goals referred to in 
     clause (ii), and appropriate justification for any failure to 
     do so.
       ``(B) Goals established'';
       (4) by striking ``Whenever'' and inserting the following:
       ``(C) Whenever'';
       (5) by striking ``For the purpose of'' and inserting the 
     following:
       ``(D) For the purpose of'';
       (6) in the last sentence--
       (A) by striking ``(A) contracts'' and inserting ``(i) 
     contracts''; and
       (B) by striking ``(B) contracts'' and inserting ``(ii) 
     contracts''; and
       (7) by adding at the end the following:
       ``(E)(i) Each procurement employee described in clause 
     (ii)--
       ``(I) shall communicate to their subordinates the 
     importance of achieving small business goals; and
       ``(II) shall have as a significant factor in the annual 
     performance evaluation of that procurement employee, where 
     appropriate, the success of that procurement employee in 
     small business utilization, in accordance with the goals 
     established under this subsection.
       ``(ii) A procurement employee described in this clause is a 
     senior procurement executive, senior program manager, or 
     small and disadvantaged business utilization manager of a 
     Federal agency having contracting authority.''.
       (b) Annual Reports.--Section 10(d) of the Small Business 
     Act (15 U.S.C. 639(d)) is amended--
       (1) by inserting ``and each agency that is a member of the 
     President's Management Council (or any successor thereto)'' 
     after ``Department of Defense'' the first place that term 
     appears; and
       (2) by inserting ``or that agency'' after ``Department of 
     Defense'' the second place that term appears.

           TITLE V--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 501. POLICY AND PRESUMPTIONS.

       Section 3 of the Small Business Act (15 U.S.C. 632) is 
     amended by adding at the end the following:
       ``(s) Presumption.--
       ``(1) In general.--In every contract, subcontract, 
     cooperative agreement, cooperative research and development 
     agreement, or grant which is set aside, reserved, or 
     otherwise classified as intended for award to small business 
     concerns, there shall be a presumption of loss to the United 
     States based on the total dollars expended on such contract, 
     subcontract, cooperative agreement, cooperative research and 
     development agreement, or grant whenever it is established 
     that a business concern other than a small business concern 
     willfully sought and received the award by misrepresentation.
       ``(2) Deemed certifications.--The following actions shall 
     be deemed affirmative, willful, and intentional 
     certifications of small business size and status:
       ``(A) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement reserved, set aside, or 
     otherwise classified as intended for award to small business 
     concerns.
       ``(B) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement which in any way 
     encourages a Federal agency to classify such bid or proposal, 
     if awarded, as an award to a small business concern.
       ``(C) Registration on any Federal electronic database for 
     the purpose of being considered for award of a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research agreement, as a small business concern.
       ``(3) Paper-based certification by signature of responsible 
     official.--
       ``(A) In general.--Each solicitation, bid, or application 
     for a Federal contract, subcontract, or grant shall contain a 
     certification concerning the small business size and status 
     of a business concern seeking such Federal contract, 
     subcontract, or grant.
       ``(B) Content of certifications.--A certification that a 
     business concern qualifies as a small business concern of the 
     exact size and status claimed by such business concern for 
     purposes of bidding on a Federal contract or subcontract, or 
     applying for a Federal grant, shall contain the signature of 
     a director, officer, or counsel on the same page on which the 
     certification is contained.
       ``(4) Regulations.--The Administrator shall promulgate 
     regulations to provide adequate protections to individuals 
     and business concerns from liability under this subsection in 
     cases of unintentional errors, technical malfunctions, and 
     other similar situations.''.

     SEC. 502. ANNUAL CERTIFICATION.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(t) Annual Certification.--
       ``(1) In general.--Each business certified as a small 
     business concern under this Act shall annually certify its 
     small business size and, if appropriate, its small business 
     status, by means of a confirming entry on the CCR database of 
     the Administration, or any successor thereto.
       ``(2) Regulations.--Not later than 120 days after the date 
     of enactment of this subsection, the Administrator, in 
     consultation with the Inspector General and the Chief Counsel 
     for Advocacy of the Administration, shall promulgate 
     regulations to ensure that--
       ``(A) no business concern continues to be certified as a 
     small business concern on the CCR database of the 
     Administration, or any successor thereto, without fulfilling 
     the requirements for annual certification under this 
     subsection; and
       ``(B) the requirements of this subsection are implemented 
     in a manner presenting the least possible regulatory burden 
     on small business concerns.
       ``(3) Determination of size status.--Small business size or 
     status for purposes of this Act shall be determined at the 
     time of the award of a Federal--
       ``(A) contract, provided that, in the case of interagency 
     multiple award contracts, small business size, or status 
     shall be determined annually, except for purposes of the 
     award of each task or delivery order set aside or reserved 
     for small business concerns;
       ``(B) subcontract;
       ``(C) grant;
       ``(D) cooperative agreement; or
       ``(E) cooperative research and development agreement.''.

     SEC. 503. MEANINGFUL PROTESTS OF SMALL BUSINESS SIZE AND 
                   STATUS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by inserting after section 37, as added by this Act, the 
     following:

     ``SEC. 38. SMALL BUSINESS SIZE AND STATUS PROTEST SYSTEM.

       ``(a) Definitions.--In this section:
       ``(1) Protest.--The term `protest' means a written 
     objection by an interested party to a violation of any small 
     business size or status requirement established under any 
     provision of law, including section 3, in connection with--
       ``(A) a solicitation or other request by a Federal agency 
     for offers for a contract for the procurement of property or 
     services;
       ``(B) the cancellation of such a solicitation or other 
     request;
       ``(C) an award or proposed award of such a contract; or
       ``(D) a termination or cancellation of an award of such a 
     contract, if the written objection contains an allegation 
     that the termination or cancellation is based in whole or in 
     part on improprieties concerning the award of the contract.
       ``(2) Interested party.--
       ``(A) In general.--The term `interested party', with 
     respect to a contract or a solicitation or other request for 
     offers described in paragraph (1), means an actual or 
     prospective bidder or offeror whose direct economic interest 
     would be affected by the award of

[[Page S13709]]

     the contract or by failure to award the contract.
       ``(B) Inclusions.--The term `interested party' includes the 
     official responsible for submitting the Federal agency tender 
     in a public-private competition conducted under Office of 
     Management and Budget Circular A-76 (or any successor 
     thereto) regarding an activity or function of a Federal 
     agency performed by more than 65 full-time equivalent 
     employees of the Federal agency.
       ``(3) Federal agency.--The term `Federal agency' has the 
     same meaning as in section 102 of title 40, United States 
     Code.
       ``(b) Review of Protests; Effect on Contracts Pending 
     Decision.--
       ``(1) In general.--Under procedures established under 
     subsection (d), the Administrator shall decide a protest 
     submitted to the Administrator by an interested party.
       ``(2) Receipts of protests.--
       ``(A) In general.--Not later than 1 day after the receipt 
     of a protest, the Administrator shall notify the Federal 
     agency involved of the protest.
       ``(B) Agencies.--Except as provided in subparagraph (C), a 
     Federal agency receiving a notice of a protested procurement 
     under subparagraph (A) shall submit to the Administrator a 
     complete report (including all relevant documents) on the 
     small business size or status aspects of the protested 
     procurement--
       ``(i) not later than 30 days after the date of the receipt 
     of that notice by the agency;
       ``(ii) if the Administrator, upon a showing by the Federal 
     agency, determines (and states the reasons in writing) that 
     the specific circumstances of the protest require a longer 
     period, within the longer period determined by the 
     Administrator; or
       ``(iii) in a case determined by the Administrator to be 
     suitable for the express option under subsection (c)(1)(B), 
     not later than 20 days after the date of the receipt of that 
     determination by the agency.
       ``(C) Exceptions.--A Federal agency need not submit a 
     report to the Administrator under subparagraph (B) if the 
     agency is notified by the Administrator before the date on 
     which such report is to be submitted that the protest 
     concerned has been dismissed under subsection (c)(1)(D).
       ``(3) Award of contracts.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a contract may not be awarded in any procurement after the 
     Federal agency has received notice of a protest with respect 
     to such procurement from the Administrator and while the 
     protest is pending.
       ``(B) Exceptions.--The head of the procuring activity 
     responsible for award of a contract may authorize the award 
     of the contract (notwithstanding a protest of which the 
     Federal agency has notice under this section)--
       ``(i) upon a written finding that urgent and compelling 
     circumstances which significantly affect interests of the 
     United States will not permit waiting for the decision of the 
     Administrator under this section; and
       ``(ii) after the Administrator is advised of that finding.
       ``(C) Urgent and compelling circumstances.--A finding may 
     not be made under subparagraph (B)(i), unless the award of 
     the contract is otherwise likely to occur within 30 days 
     after the making of such finding.
       ``(4) Performance.--
       ``(A) In general.--A contractor awarded a Federal agency 
     contract may, during the period described in subparagraph 
     (D), begin performance of the contract and engage in any 
     related activities that result in obligations being incurred 
     by the United States under the contract, unless the 
     contracting officer responsible for the award of the contract 
     withholds authorization to proceed with performance of the 
     contract.
       ``(B) Authorization withheld.--The contracting officer may 
     withhold an authorization to proceed with performance of the 
     contract during the period described in subparagraph (D) if 
     the contracting officer determines in writing that--
       ``(i) a protest is likely to be filed with the 
     Administrator alleging a violation of a small business size 
     or status requirement; and
       ``(ii) the immediate performance of the contract is not in 
     the best interests of the United States.
       ``(C) Notice of protest.--
       ``(i) In general.--If the Federal agency awarding the 
     contract receives notice of a protest in accordance with this 
     subsection during the period described in subparagraph (D)--

       ``(I) the contracting officer may not authorize performance 
     of the contract to begin while the protest is pending; or
       ``(II) if authorization for contract performance to proceed 
     was not withheld in accordance with subparagraph (B) before 
     receipt of the notice, the contracting officer shall 
     immediately direct the contractor to cease performance under 
     the contract and to suspend any related activities that may 
     result in additional obligations being incurred by the United 
     States under that contract.

       ``(ii) Performance.--Performance and related activities 
     suspended under clause (i)(II) by reason of a protest may not 
     be resumed while the protest is pending.
       ``(iii) Exceptions.--The head of the procuring activity may 
     authorize the performance of the contract (notwithstanding a 
     protest of which the Federal agency has notice under this 
     section)--

       ``(I) upon a written finding that--

       ``(aa) performance of the contract is in the best interests 
     of the United States; or
       ``(bb) urgent and compelling circumstances that 
     significantly affect interests of the United States will not 
     permit waiting for the decision of the Administrator 
     concerning the protest; and

       ``(II) after the Administrator is notified of that finding.

       ``(D) Time period.--The period described in this 
     subparagraph, with respect to a contract, is the period 
     beginning on the date of the contract award and ending on the 
     later of--
       ``(i) the date that is 10 days after the date of the 
     contract award; or
       ``(ii) the date that is 5 days after the debriefing date 
     offered to an unsuccessful offeror for any debriefing that is 
     requested and, when requested, is required.
       ``(5) Nondelegation.--The authority of the head of the 
     procuring activity to make findings and to authorize the 
     award and performance of contracts under paragraphs (3) and 
     (4) may not be delegated.
       ``(6) Provision of documents.--
       ``(A) In general.--Within such deadlines as the 
     Administrator prescribes, and upon request, each Federal 
     agency shall provide to an interested party any document 
     relevant to a protested procurement action (including the 
     report required by paragraph (2)(B)) that would not give that 
     party a competitive advantage and that the party is otherwise 
     authorized by law to receive.
       ``(B) Protective orders.--
       ``(i) In general.--The Administrator may issue protective 
     orders which establish terms, conditions, and restrictions 
     for the provision of any document to a party under 
     subparagraph (A), that prohibit or restrict the disclosure by 
     the party of information described in clause (ii) that is 
     contained in such a document.
       ``(ii) Types of information.--Information referred to in 
     clause (i) is procurement sensitive information, trade 
     secrets, or other proprietary or confidential research, 
     development, or commercial information.
       ``(iii) Information to the federal government.--A 
     protective order under this subparagraph shall not be 
     considered to authorize the withholding of any document or 
     information from Congress or an executive agency.
       ``(7) Interested parties.--If an interested party files a 
     protest in connection with a public-private competition 
     described in subsection (a)(2)(B), a person representing a 
     majority of the employees of the Federal agency who are 
     engaged in the performance of the activity or function 
     subject to the public-private competition may intervene in 
     protest.
       ``(c) Decisions on Protests.--
       ``(1) In general.--
       ``(A) Inexpensive and expeditious resolution.--To the 
     maximum extent practicable, the Administrator shall provide 
     for the inexpensive and expeditious resolution of protests 
     under this section. Except as provided under subparagraph 
     (B), the Administrator shall issue a final decision 
     concerning a protest not later than 100 days after the date 
     on which the protest is submitted to the Administration.
       ``(B) Express option.--The Administrator shall, by 
     regulation established under subsection (d), establish an 
     express option for deciding those protests which the 
     Administrator determines suitable for resolution, not later 
     than 65 days after the date on which the protest is 
     submitted.
       ``(C) Amendments.--An amendment to a protest that adds a 
     new ground of protest, if timely made, should be resolved, to 
     the maximum extent practicable, within the time limit 
     established under subparagraph (A) for final decision of the 
     initial protest. If an amended protest cannot be resolved 
     within such time limit, the Administrator may resolve the 
     amended protest through the express option under subparagraph 
     (B).
       ``(D) Frivolous protests.--The Administrator may dismiss a 
     protest that the Administrator determines is frivolous or 
     which, on its face, does not state a valid basis for protest.
       ``(2) Compliance with law.--
       ``(A) In general.--With respect to a solicitation for a 
     contract, or a proposed award or the award of a contract, 
     protested under this section, the Administrator may determine 
     whether the solicitation, proposed award, or award complies 
     with statutes and regulations regarding small business size 
     or status. If the Administrator determines that the 
     solicitation, proposed award, or award does not comply with a 
     statute or regulation, the Administrator shall recommend that 
     the Federal agency--
       ``(i) refrain from exercising any of its options under the 
     contract;
       ``(ii) recompete the contract immediately;
       ``(iii) issue a new solicitation;
       ``(iv) terminate the contract;
       ``(v) award a contract consistent with the requirements of 
     such statutes and regulations; or
       ``(vi) implement such other recommendations as the 
     Administrator determines to be necessary in order to promote 
     compliance with procurement statutes and regulations.
       ``(B) Best interests of united states.--If the head of the 
     procuring activity responsible for a contract makes a finding 
     described in subsection (b)(4)(C)(iii)(I)(aa), the 
     Administrator shall make recommendations under this paragraph 
     without regard to any cost or disruption from terminating, 
     recompeting, or reawarding the contract.

[[Page S13710]]

       ``(C) Implementation.--If the Federal agency fails to 
     implement fully the recommendations of the Administrator 
     under this paragraph with respect to a solicitation for a 
     contract or an award or proposed award of a contract by the 
     date that is 60 days after the date on which the agency 
     received the recommendations, the head of the procuring 
     activity responsible for that contract shall report such 
     failure to the Administrator not later than 5 days after the 
     end of such 60-day period.
       ``(3) Payment of costs.--
       ``(A) In general.--If the Administrator determines that a 
     solicitation for a contract or a proposed award or the award 
     of a contract does not comply with a statute or regulation, 
     the Administrator may recommend that the Federal agency 
     conducting the procurement pay to an appropriate interested 
     party the costs of--
       ``(i) filing and pursuing the protest, including reasonable 
     attorney's fees and consultant and expert witness fees; and
       ``(ii) bid and proposal preparation.
       ``(B) Costs not included.--No party (other than a small 
     business concern) may be paid, under a recommendation made 
     under the authority of subparagraph (A)--
       ``(i) costs for consultant and expert witness fees that 
     exceed the highest rate of compensation for expert witnesses 
     paid by the Federal Government; or
       ``(ii) costs for attorney's fees that exceed $300 per hour, 
     unless the agency determines, based on the recommendation of 
     the Administrator on a case by case basis, that an increase 
     in the cost of living or a special factor, such as the 
     limited availability of qualified attorneys for the 
     proceedings involved, justifies a higher fee.
       ``(C) Recommendation to pay costs.--If the Administrator 
     recommends under subparagraph (A) that a Federal agency pay 
     costs to an interested party, the Federal agency shall--
       ``(i) pay the costs promptly; or
       ``(ii) if the Federal agency does not make such payment, 
     promptly report to the Administrator the reasons for the 
     failure to follow the Administrator's recommendation.
       ``(D) Agreement on amount.--If the Administrator recommends 
     under subparagraph (A) that a Federal agency pay costs to an 
     interested party, the Federal agency and the interested party 
     shall attempt to reach an agreement on the amount of the 
     costs to be paid. If the Federal agency and the interested 
     party are unable to agree on the amount to be paid, the 
     Administrator may, upon the request of the interested party, 
     recommend to the Federal agency the amount of the costs that 
     the Federal agency should pay.
       ``(4) Decisions.--Each decision of the Administrator under 
     this section shall be signed by the Administrator or a 
     designee for that purpose. A copy of the decision shall be 
     made available to the interested parties, the head of the 
     procuring activity responsible for the solicitation, proposed 
     award, or award of the contract, and the senior procurement 
     executive of the Federal agency involved.
       ``(5) Reports.--
       ``(A) Failure to implement recommendations.--
       ``(i) In general.--The Administrator shall report promptly 
     to the Committee on Small Business and Entrepreneurship of 
     the Senate and to the Committee on Small Business of the 
     House of Representatives any case in which a Federal agency 
     fails to implement fully a recommendation of the 
     Administrator under paragraph (2) or (3).
       ``(ii) Contents.--Each report under clause (i) shall 
     include--

       ``(I) a comprehensive review of the pertinent procurement, 
     including the circumstances of the failure of the Federal 
     agency to implement a recommendation of the Administrator; 
     and
       ``(II) a recommendation regarding whether, in order to 
     correct an inequity or to preserve the integrity of the 
     procurement process, Congress should consider--

       ``(aa) private relief legislation;
       ``(bb) legislative rescission or cancellation of funds;
       ``(cc) further investigation by Congress; or
       ``(dd) other action.
       ``(B) Annual reports.--Not later than January 31 of each 
     year, the Administrator shall transmit to Congress a report 
     containing a summary of each instance in which a Federal 
     agency did not fully implement a recommendation of the 
     Administrator under subsection (b) or this subsection during 
     the preceding year. The report shall also describe each 
     instance in which a final decision in a protest was not 
     rendered within 100 days after the date on which the protest 
     was submitted to the Administrator.
       ``(d) Regulations; Authority of Administrator to Verify 
     Assertions.--
       ``(1) In general.--The Administrator shall establish such 
     procedures as may be necessary for the expeditious decision 
     of protests under this section, including procedures for 
     accelerated resolution of protests under the express option 
     authorized by subsection (c)(1)(B). Such procedures shall 
     provide that the protest process may not be delayed by the 
     failure of a party to make a filing within the time provided 
     for the filing.
       ``(2) Computation of time.--The procedures established 
     under paragraph (1) shall provide that, in the computation of 
     any period described in this section--
       ``(A) the day of the act, event, or default from which the 
     designated period of time begins to run not be included; and
       ``(B) the last day after such act, event, or default be 
     included, unless--
       ``(i) such last day is a Saturday, a Sunday, or a legal 
     holiday; or
       ``(ii) in the case of a filing of a paper at the 
     Administration or another Federal agency, such last day is a 
     day on which weather or other conditions cause the closing of 
     the Administration or other Federal agency, in which event 
     the next day that is not a Saturday, Sunday, or legal holiday 
     shall be included.
       ``(3) Electronic filing.--The Administrator may prescribe 
     procedures for the electronic filing and dissemination of 
     documents and information required under this section. In 
     prescribing such procedures, the Administrator shall consider 
     the ability of all parties to achieve electronic access to 
     such documents and records.
       ``(e) Enforcement.--The Administrator may use any authority 
     available under this Act or any other provision of law to 
     verify assertions made by parties in protests under this 
     section.
       ``(f) Regulations.--The Administrator may issue regulations 
     regarding the use of the protest authority to consider small 
     business size or status challenges under this section in 
     matters involving any other program for small business 
     concerns.''.

     SEC. 504. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.

       (a) In General.--Not later than 270 days after the date of 
     enactment of this Act, the head of each appropriate Federal 
     agency or entity shall, in consultation with the 
     Administrator or the Inspector General of the Administration, 
     as appropriate, develop courses concerning proper 
     classification of business concerns and small business size 
     and status for purposes of Federal contracts, subcontracts, 
     grants, cooperative agreements, and cooperative research and 
     development agreements.
       (b) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Section 3 of the Small Business Act (15 U.S.C. 
     632), as amended by this Act, is amended by adding at the end 
     the following:
       ``(u) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Not later than 180 days after the date of 
     enactment of this subsection, the head of each relevant 
     Federal agency and the Inspector General of the 
     Administration shall issue a Governmentwide policy on 
     prosecution of small business size and status fraud.''.

     SEC. 505. UPDATED SIZE STANDARDS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall--
       (1) conduct a detailed review of the size standards for 
     small business concerns established under section 3(a)(2) of 
     the Small Business Act (15 U.S.C. 632(a)(2)); and
       (2) if determined appropriate by the Administrator, 
     promulgate revised size standards under that section.
       (b) Publication.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall make 
     publically available information regarding--
       (1) the factors evaluated as part of the review conducted 
     under subsection (a)(1); and
       (2) the criteria used for any revised size standards 
     promulgated under subsection (a)(2).

     SEC. 506. SMALL BUSINESS SIZE AND STATUS FOR PURPOSE OF 
                   MULTIPLE AWARD CONTRACTS.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(w) Small Business Size and Status for Purpose of 
     Multiple Award Contracts.--
       ``(1) In general.--A business concern that enters a 
     multiple award contract of any kind with the Federal 
     Government shall in any year in which such a contract is in 
     effect, submit an annual statement at the end of its fiscal 
     year recertifying its small business size and status to the 
     Federal agency which awarded the contract.
       ``(2) Relation to other laws.--Compliance with paragraph 
     (1) shall not affect the obligation of a business concern to 
     comply with other provisions of law concerning small business 
     size or status.''.
  Ms. SNOWE. Mr. President, as Ranking Member of the Senate Committee 
on Small Business and Entrepreneurship, I rise today to introduce, with 
Chairman Kerry, the Small Business Contracting Revitalization Act of 
2007. This critical legislation is a product of consensus-building and 
compromise over the past few years and truly reflects the bipartisan 
nature of our Committee. Thank you, Chairman Kerry, for working to make 
this a truly bipartisan bill.
  This legislation addresses the numerous barriers facing small 
businesses in securing their fair share of Federal contracting dollars. 
Currently, small businesses are eligible for $340 billion in Federal 
contracting dollars, yet receive only $77 billion. Regrettably, the 
Federal Government consistently fails to satisfy its 23 percent small 
business goal resulting in small businesses losing billions of dollars 
in contracting opportunities.
  I am dismayed by the myriad ways that Government agencies have time 
and again egregiously failed to achieve

[[Page S13711]]

most of their small business statutory ``goaling'' requirements. For 
example, in fiscal year 2006, the Historically Underutilized Business 
Zone, HUBZone, program met only 2.1 percent of its three percent goal, 
while our Nation's service-disabled, veteran-owned small businesses 
received a Government-wide, paltry total of only 0.9 percent of its 
three percent small business goal. This longstanding area of concern is 
coupled with a litany of deficiencies that include ``contract 
bundling,'' sub-contracting misrepresentations, inaccurate small 
business size determinations, flawed reporting data, and under-
utilization of key small business contracting programs.
  As the Chairman is well aware, these problems are not new, and our 
Committee has held countless hearings on various contracting concerns 
throughout the years. Business opportunities through Federal contracts 
provide vital economic benefits for small businesses, which is why last 
year, my Small Business Administration Reauthorization Bill, which 
passed our Committee unanimously, contained a robust package of small 
business contracting initiatives.
  Our legislation builds on the contracting provisions of that bill, by 
improving all of the small business contracting programs--including the 
HUBZone, small disadvantaged business, women-owned small business, and 
service-disabled veteran-owned small business programs. It equips the 
SBA with additional tools to meet the demands of an ever-changing 21st 
century contracting environment.
  This bipartisan measure also includes several other priorities that I 
have long championed--most notably, enhancing the HUBZone program. In 
my home state of Maine, only 118 of 41,026 small businesses are 
qualified HUBZone businesses. HUBZones represent a tremendous tool for 
replacing lost jobs for our Nation's declining manufacturing and 
industrial sectors--clearly, this program should be better utilized.
  I look forward to working with my colleagues in the Senate to pass 
this bipartisan small business contracting legislation to ensure that 
all small business ``goals'' are not only met--but exceeded.

                          ____________________