[Congressional Record Volume 156, Number 17 (Thursday, February 4, 2010)]
[Senate]
[Pages S486-S491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU (for herself and Ms. Snowe):
  S. 2989. A bill to improve the Small Business Act, and for other 
purposes; to the Committee on Small Business and Entrepreneurship.
  Ms. LANDRIEU. Mr. President, I am pleased today to be introducing the 
Small Business Contracting Improvements Act of 2010, legislation 
designed to protect the interests of small businesses and boost their 
opportunities in the Federal marketplace.
  As Chair 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 contracting 
arena. The legislation I am introducing today marks a critical step 
forward in this process.
  As the largest purchaser in the world, the Federal Government is 
uniquely positioned to offer new and reliable business opportunities 
for our Main Street businesses. Government contracts are perhaps one of 
the easiest and most inexpensive ways the government can help 
immediately increase sales for America's entrepreneurs, giving them the 
tools they need to keep our economy strong and create jobs. By 
increasing contracts to small businesses by just 1 percent, we can 
create more than 100,000 new jobs--and today, we need those jobs more 
than ever.
  But the reality is, small businesses need all the help they can get 
accessing Federal contracts. In fiscal year 2007, according to the 
Federal Procurement Data System, the Federal Government missed its 23 
percent contracting goal by .992 percent. That .992 percent represents 
more than $3.74 billion and 93,500 jobs lost for small businesses. The 
numbers are even worse the next fiscal, in fiscal year 2008 the Federal 
Procurement Data System reported that the government missed its goal by 
1.51 percent--meaning more than $6.51 billion and 162,700 jobs lost. 
While these numbers tell the stark story of why this legislation is 
vital for our small businesses and our overall economy, they are still 
only a part of the story of why this legislation is needed.
  Our small businesses have been taking the brunt of this economic 
downturn. In this past year, small businesses accounted for more than 
85 percent of job losses. This fact was vividly illustrated to me this 
weekend when I met with Louisiana business owners and officials. A 
small business owner who spoke at our meeting told of how he was down 
from 20 plus employees to three. He was clear that if he had access to 
federal work he would begin staffing up tomorrow. That is the reason I 
am introducing this legislation today. These contracting opportunities 
represent job creation for small businesses in a way that is unique. 
When large businesses get new work they

[[Page S487]]

typically spread that work among existing employees. When small 
businesses get these contracts they must staff up to meet the increased 
demand.
  Furthermore, last night President Obama made the case that small 
businesses need to be the focus of our recovery. I have heard over and 
over again that small business is the engine that drives our economy. 
Well, if that is true, then it is time to give that engine some gas. 
President Obama set the right tone last night and today our bill looks 
to act on his words and fill that tank as we consider improvements in 
four key areas.
  The first area I attempt to make improvements in is the area of 
contract bundling. Although contract 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 the decimation of contracting 
professionals within the government threatens to kill small businesses' 
ability to compete for federal contracts.
  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, SBA.
  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.
  Another way that this bill attempts to tackle the issue of bundling 
is by creating a joint venture and teaming center at the SBA. This 
center will provide technical support to associations and businesses 
who are interested in bidding on larger contracts as part of small 
business teams or joint ventures. The bill will also ease regulations 
that serve as a disincentive for small businesses who want to enter 
into teaming relationships with one another.
  The second area that this bill attempts to address is subcontracting. 
The Committee has heard from many businesses about the challenges that 
some small business subcontractors face when dealing with prime 
contractors. Business owners have 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 heard from the prime contractor again. Many 
also complain about a 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 and provides for speedier payments to small business 
subcontractors who have successfully completed work on behalf of the 
prime contractor.
  The third area I 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 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; directing the Office 
of Federal Procurement Policy to issue guidelines to analyze the use of 
government credit cards for the purpose of meeting small business 
goals; and requiring that agencies include meeting small business 
contracting goals in the performance evaluation of contracting and 
program personnel.
  The last area that I 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. 
It is imperative that small business contracts go to small businesses. 
Small businesses may be losing billions of dollars in opportunities 
because of size standard loopholes.
  This bill attempts to address these issues by making additions to the 
Small Business Act that are 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 a 
presumption of loss to the federal government whenever a large business 
performs a small business contract; requires that small businesses 
annually certify their size status; requires the development of 
training programs for small business size standards; requires a 
detailed review of the size standards for small businesses by the SBA 
within one year; and directs GAO to study the effectiveness of the 
mentor-protege program.
  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 me in supporting this bill and I look forward to working with 
them as we work to move this legislation forward.
  Mr. President, I 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. 2989

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Contracting 
     Revitalization Act of 2010''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                       TITLE I--CONTRACT BUNDLING

Sec. 101. Leadership and oversight.
Sec. 102. Consolidation of contract requirements.
Sec. 103. Small business teams pilot program.

                   TITLE II--SUBCONTRACTING INTEGRITY

Sec. 201. GAO recommendations on subcontracting misrepresentations.
Sec. 202. Small business subcontracting improvements.

                     TITLE III--ACQUISITION PROCESS

Sec. 301. Reservation of prime contract awards for small businesses.
Sec. 302. Micro-purchase guidelines.
Sec. 303. Agency accountability.
Sec. 304. Payment of subcontractors.
Sec. 305. Repeal of Small Business Competitiveness Demonstration 
              Program.

           TITLE IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

Sec. 401. Policy and presumptions.
Sec. 402. Annual certification.
Sec. 403. Training for contracting and enforcement personnel.
Sec. 404. Updated size standards.
Sec. 405. Study and report on the mentor-protege program.

     SEC. 3. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).
                       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) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any contract award above the 
     substantial bundling threshold of the Federal agency a 
     provision soliciting bids by teams and joint ventures of 
     small business concerns.
       ``(2) Agency policies on reduction of contract bundling.--
     The head of each Federal agency shall--
       ``(A) not later than 180 days after the date of enactment 
     of this subsection, publish on the website of the Federal 
     agency the policy of the Federal agency regarding contracting 
     bundling and consolidation, including regarding the 
     solicitation of teaming and joint ventures under paragraph 
     (1); and
       ``(B) not later than 30 days after the date on which the 
     head of the Federal agency submits data certifications to the 
     Administrator for Federal Procurement Policy, publish on the 
     website of the Federal agency a list and rationale for any 
     bundled contract for which the Federal agency solicited bids 
     or that was awarded by the Federal agency.
       ``(3) Reporting.--Not later than 90 days after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     the Director of Small and Disadvantaged Business Utilization 
     for each Federal agency shall submit to the Committee on 
     Small Business

[[Page S488]]

     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     procurement center representatives and commercial market 
     representatives, which shall--
       ``(A) identify each area for which the Federal agency has 
     assigned a procurement center representative or a commercial 
     market representative;
       ``(B) explain why the Federal agency selected the areas 
     identified under subparagraph (A); and
       ``(C) describe the activities performed by procurement 
     center representatives and commercial market 
     representatives.''.
       (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 it appears and inserting ``Administrator for 
     Federal Procurement Policy''.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report regarding the 
     procurement center representative program of the 
     Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) address ways to improve the effectiveness of the 
     procurement center representative program in helping small 
     business concerns obtain Federal contracts;
       (B) evaluate the effectiveness of procurement center 
     representatives and commercial marketing representatives; and
       (C) include recommendations, if any, on how to improve the 
     procurement center representative program.
       (d) Electronic Procurement Center Representative.--Not 
     later than 180 days after the date of enactment of this Act, 
     the Administrator shall implement an electronic procurement 
     center representative program.

     SEC. 102. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       ``(a) Definitions.--In this section--
       ``(1) the term `Chief Acquisition Officer' means the 
     employee of a Federal agency designated as the Chief 
     Acquisition Officer for the Federal agency under section 
     16(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 414(a));
       ``(2) the term `consolidation of contract requirements', 
     with respect to contract requirements of a Federal agency, 
     means a use of a solicitation to obtain offers for a single 
     contract or a multiple award contract to satisfy 2 or more 
     requirements of the Federal agency for goods or services that 
     have been, are being, or will be provided to, or will be 
     performed for or would typically be performed for, the 
     Federal agency under 2 or more separate contracts lower in 
     cost than the total cost of the contract for which the offers 
     are solicited;
       ``(3) the term `Federal agency' does not include the 
     Department of Defense or any agency of the Department of 
     Defense;
       ``(4) 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 indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with 2 or more sources pursuant to the same solicitation; and
       ``(5) the term `senior procurement executive' means an 
     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 a Federal agency.
       ``(b) Policy.--The head of each Federal agency shall ensure 
     that the decisions made by the Federal agency regarding 
     consolidation of contract requirements of the Federal agency 
     are made with a view to providing small business concerns 
     with appropriate opportunities to participate as prime 
     contractors and subcontractors in the procurements of the 
     Federal agency.
       ``(c) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--
       ``(1) In general.--The head of a Federal agency may not 
     carry out an acquisition strategy that includes a 
     consolidation of contract requirements of the Federal agency 
     with a total value of more than $2,000,000, unless the senior 
     procurement executive or Chief Acquisition Officer for the 
     Federal agency, before carrying out the acquisition 
     strategy--
       ``(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 of contract 
     requirements is necessary and justified.
       ``(2) Determination that consolidation is necessary and 
     justified.--
       ``(A) In general.--A senior procurement executive or Chief 
     Acquisition Officer may determine that an acquisition 
     strategy involving a consolidation of contract requirements 
     is necessary and justified for the purposes of paragraph 
     (1)(C) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under paragraph 
     (1)(B).
       ``(B) Savings in administrative or personnel costs.--For 
     purposes of subparagraph (A), savings in administrative or 
     personnel costs alone do not constitute a sufficient 
     justification for a consolidation of contract requirements in 
     a procurement unless the expected total amount of the cost 
     savings, as determined by the senior procurement executive or 
     Chief Acquisition Officer, is substantial in relation to the 
     total cost of the procurement.
       ``(3) Benefits to be considered.--The 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.''.

     SEC. 103. SMALL BUSINESS TEAMS PILOT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``Center'' means the Center for Small Business 
     Teaming established under subsection (b); and
       (2) the term ``eligible organization'' means a well-
     established national organization for small business concerns 
     with the capacity to provide assistance to small business 
     concerns (which may be provided with the assistance of the 
     Center) relating to--
       (A) customer relations and outreach;
       (B) submitting bids and proposals;
       (C) team relations and outreach; and
       (D) performance measurement and quality assurance.
       (b) Establishment.--The Administrator shall establish a 
     Center for Small Business Teaming within the Administration 
     to carry out a pilot program for teaming and joint ventures 
     involving small business concerns.
       (c) Grants.--The Center may make grants to eligible 
     organizations to assemble teams of small business concerns to 
     compete for larger procurement contracts.
       (d) Contracting Opportunities.--
       (1) In general.--The Center shall work with eligible 
     organizations receiving a grant under this section to 
     identify appropriate contracting opportunities for teams or 
     joint ventures of small business concerns.
       (2) Restricted competition.--A contracting officer of a 
     Federal agency may restrict competition for any contract for 
     the procurement of goods or services by the Federal agency to 
     teams or joint ventures of small business concerns if 
     determined appropriate by the contracting officer.
       (e) Termination.--The authorities under this section shall 
     terminate 5 years after the date of enactment of this Act.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated for grants by the Center under subsection 
     (c) $5,000,000 for each of fiscal years 2010 through 2015.
                   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 Recommendations of Comptroller General.--
       ``(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 Government-wide, to the maximum extent 
     possible.
       ``(2) Contractor compliance.--Compliance of Federal prime 
     contractors with subcontracting plans relating to small 
     business concerns shall be evaluated as a percentage of 
     obligated prime contract dollars and 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 subcontracting 
     compliance relating to small business concerns, including 
     assignment of compliance responsibilities between contracting 
     offices, small business offices, and program offices and 
     periodic oversight and review activities.''.

     SEC. 202. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       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) a certification that the offeror or bidder will 
     acquire articles, equipment, supplies, services, or 
     materials, or obtain the performance of construction work 
     from the small business concerns used in preparing and 
     submitting to the contracting agency the bid or proposal, in 
     the same amount and quality used in preparing and submitting 
     the bid or proposal, unless the small business concerns are 
     no longer in business or can no longer meet the quality, 
     quantity, or delivery date.''.

[[Page S489]]

                     TITLE III--ACQUISITION PROCESS

     SEC. 301. 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:
       ``(r) Government-Wide Acquisition Contracts.--Not later 
     than 180 days after the date of enactment of this subsection, 
     the Administrator for Federal Procurement Policy and the 
     Administrator shall jointly, by regulation, establish 
     criteria for Federal agencies for--
       ``(1) setting aside part or parts of a multiple award 
     contract (as defined in section 44), Federal supply schedule 
     contracts, and other Government-wide acquisition contracts 
     for small business concerns, including the subcategories of 
     small business concerns identified in subsection (g)(2);
       ``(2) setting aside orders placed against multiple award 
     contracts, Federal supply schedule contracts, and other 
     Government-wide acquisition 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. 302. MICRO-PURCHASE GUIDELINES.

       Not later than 1 year after the date of enactment of this 
     Act, the Controller of the Office of Federal Financial 
     Management 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 purchases in an amount not in 
     excess of the micro-purchase threshold, as defined in section 
     32 of the Office of Federal Procurement Policy Act (41 U.S.C. 
     428) (in this section referred to as ``micro-purchases''), 
     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 micro-purchases.

     SEC. 303. AGENCY ACCOUNTABILITY.

       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) by striking ``Goals established'' and inserting the 
     following:
       ``(B) Goals established'';
       (3) by striking ``Whenever'' and inserting the following:
       ``(C) Whenever'';
       (4) by striking ``For the purpose of'' and inserting the 
     following:
       ``(D) For the purpose of'';
       (5) by striking ``The head of each Federal agency, in 
     attempting to attain such participation'' and inserting the 
     following:
       ``(E) The head of each Federal agency, in attempting to 
     attain the participation described in subparagraph (D)''.
       (6) in subparagraph (E), as so designated--
       (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:
       ``(F)(i) Each procurement employee or program manager 
     described in clause (ii)--
       ``(I) shall communicate to the subordinates of the 
     procurement employee or program manager the importance of 
     achieving small business goals; and
       ``(II) shall have as a significant factor in the annual 
     performance evaluation of the procurement employee or program 
     manager, where appropriate, the success of that procurement 
     employee or program manager in small business utilization, in 
     accordance with the goals established under this subsection.
       ``(ii) A procurement employee or program manager described 
     in this clause is a senior procurement executive, senior 
     program manager, or Director of Small and Disadvantaged 
     Business Utilization of a Federal agency having contracting 
     authority.''.

     SEC. 304. PAYMENT OF SUBCONTRACTORS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended by adding at the end the following:
       ``(11) Payment of Subcontractors.--
       ``(A) Definition.--In this paragraph, the term `covered 
     contract' means a contract relating to which a prime 
     contractor is required to develop a subcontracting plan under 
     paragraph (4) or (5).
       ``(B) Notice.--
       ``(i) In general.--A prime contractor for a covered 
     contract shall notify in writing the contracting officer for 
     the covered contract if the prime contractor pays a reduced 
     price to a subcontractor for goods and services upon 
     completion of the responsibilities of the subcontractor or 
     the payment to a subcontractor is more than 90 days past due 
     for goods or services provided for the covered contract for 
     which--
       ``(I) the Federal agency has paid the prime contractor; or
       ``(II) the prime contractor has submitted a request for 
     payment to the Federal agency.
       ``(ii) Contents.--A prime contractor shall include the 
     reason for the reduction in a payment to or failure to pay a 
     subcontractor in any notice made under clause (i).
       ``(iii) Public availability.--The head of each Federal 
     agency shall, after redacting information identifying any 
     subcontractor, make publicly available any notice made under 
     clause (i).
       ``(C) Performance.--A contracting officer for a covered 
     contract shall consider the failure by a prime contractor to 
     make a full or timely payment to a subcontractor in 
     evaluating the performance of the prime contractor.
       ``(D) Control of funds.--A contracting officer for a 
     covered contract may restrict the authority of a prime 
     contractor that has a history of untimely payment of 
     subcontractors (as determined by the contracting officer) to 
     make expenditures under or control payment of subcontractors 
     for a covered contract.''.

     SEC. 305. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
                   DEMONSTRATION PROGRAM.

       (a) In General.--The Business Opportunity Development 
     Reform Act of 1988 (Public Law 100-656) is amended by 
     striking title VII (15 U.S.C. 644 note).
       (b) Effective Date and Applicability.--The amendment made 
     by this section--
       (1) shall take effect on the date of enactment of this Act; 
     and
       (2) apply to the first full fiscal year after the date of 
     enactment of this Act.
           TITLE IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 401. POLICY AND PRESUMPTIONS.

       Section 3 of the Small Business Act (15 U.S.C. 632) is 
     amended by adding at the end the following:
       ``(t) 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 amount expended on the 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 the 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) 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 the 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 the 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. 402. 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:
       ``(u) 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 ORCA database 
     of the Administration, or any successor thereto.
       ``(2) Regulations.--Not later than 1 year 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 ORCA 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.--The small business 
     size or status of a business concern shall be determined at 
     the time of the award of a Federal--
       ``(A) contract, except that, in the case of interagency 
     multiple award contracts (as defined in section 44), small 
     business size or

[[Page S490]]

     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. 403. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Federal Acquisition Institute, in 
     consultation with the Administrator for Federal Procurement 
     Policy, shall 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:
       ``(v) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Not later than 1 year 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 Government-wide policy on 
     prosecution of small business size and status fraud.''.

     SEC. 404. UPDATED SIZE STANDARDS.

       Not later than 1 year after the date of enactment of this 
     Act, and every 5 years thereafter, 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));
       (2) make appropriate adjustments to size standards under 
     that section to reflect market conditions; and
       (3) make publically available information regarding--
       (A) the factors evaluated as part of the review conducted 
     under paragraph (1); and
       (B) the criteria used for any revised size standards 
     promulgated under paragraph (2).

     SEC. 405. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of 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)), and other relationships and strategic 
     alliances pairing a larger business and a small business 
     concern partner to gain access to Federal Government 
     contracts, to determine whether the programs and 
     relationships are effectively supporting the goal of 
     increasing the participation of small business concerns in 
     Government contracting.
       (b) Matters To Be Studied.--The study conducted under this 
     section shall include--
       (1) a review of a broad cross-section of industries; and
       (2) an evaluation of--
       (A) how each Federal agency carrying out a program 
     described in subsection (a) administers and monitors the 
     program;
       (B) whether there are systems in place to ensure that the 
     mentor-protege relationship, or similar affiliation, promotes 
     real gain to the protege, and is not just a mechanism to 
     enable participants that would not otherwise qualify under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to 
     receive contracts under that section; and
       (C) the degree to which protege businesses become able to 
     compete for Federal contracts without the assistance of a 
     mentor.
       (c) Report to Congress.--Not later than 180 days after the 
     date of enactment of this Act, 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 on the 
     results of the study conducted under this section.

  Ms. SNOWE. Mr. President, as ranking Member of the Senate Committee 
on Small Business and Entrepreneurship, I rise today, along with 
Senator Landrieu, to introduce the Small Business Contracting 
Revitalization Act of 2010. This critical piece of legislation is the 
direct result of consensus-building and compromise, and continues the 
bipartisan tradition of the Small Business Committee. I also wish to 
thank Chair Landrieu for her partnership with me in forging this truly 
crucial measure as we work toward contracting parity for small 
business, and for her tireless leadership on all concerns confronting 
small businesses today.
  The Small Business Contracting Revitalization Act of 2010 retains 
critical procurement provisions that originate in the comprehensive 
contracting bills I introduced or cosponsored in the 109th and 110th 
Congresses which were unanimously voted out of the Small Business 
Committee. This particular legislation will serve to minimize the use 
of contract bundling and consolidation of contracts by the Federal 
Government, and increase the ability of small businesses to fairly 
compete for such contracts through a host of key improvements, 
including allowing small businesses to join together in teams to bid on 
certain procurement opportunities. Additional requirements will help to 
ensure prompt payment from prime contractors to subcontractors, and 
make it easier for the Federal Government to prosecute businesses who 
fraudulently identify themselves as small companies.
  Since the mid-1990s, with the enactment of acquisition streamlining 
reforms and the downsizing of the Federal procurement workforce, small 
businesses have faced a litany of hurdles that have deprived them of 
Federal contracting dollars. One such impediment is contract bundling 
which takes contracting opportunities out of the hands of deserving 
small businesses by grouping numerous small contracts and bundling them 
into one large award. Ill-equipped to manage the demands of these 
consolidated awards due to a lack of resources, small business owners 
again find themselves crowded out of the Federal contracting process. 
Consequently, the bipartisan measure we are introducing today reflects 
the recommendations made by the Government Accountability Office, GAO, 
to impose stricter reviews and more comprehensive reporting of bundled 
contracts, encourages small business teaming to bid on larger 
contracts, and promotes Federal agency publishing and use of best 
practices. Additional obstacles to successful small business 
contracting include ``bait and switch'' tactics used by prime 
contractors who use small firms in developing bids but do not 
subcontract with them once a contract has been awarded. Our bill will 
address this concern as well as other ongoing problems such as large 
businesses posing as small businesses, flawed reporting data, and 
agencies who fail to meet their small business contracting goals.
  As Ranking Member of the Senate Committee on Small Business and 
Entrepreneurship, I am further dismayed by the myriad ways that 
government agencies have time and again egregiously failed to meet the 
vast majority of their small business statutory ``goaling'' 
requirements. It is unconscionable that the statutory goal for only one 
category of small business--small disadvantaged businesses--has been 
met, and that goals for the three other programs--HUBZones, women-owned 
small businesses, and service-disabled veterans-owned businesses--have 
never been achieved.
  Consider that, in 2007, small businesses were eligible for $378 
billion in Federal contracting awards, yet received only $83 billion. 
This blatant failure to utilize small businesses, thus preventing them 
to secure their fair share of Federal contracting dollars, has resulted 
in firms losing billions of dollars in contracting opportunities. But 
23 percent is only a base goal--we must strive to exceed it, not just 
meet it.
  In the last two years alone, the Small Business Committee has held 
numerous hearings and roundtables to identify and explain small 
business' contracting concerns. In addition, the GAO and the Small 
Business Administration's Inspector General have issued multiple 
reports addressing small business Federal contracting deficiencies. Our 
legislation builds on the contracting provisions of previous Small 
Business Committee contracting bills by endowing the SBA with 
additional tools to meet the demands of an ever-changing 21st century 
contracting environment.
  That said, I am greatly encouraged by the latest statistics relating 
to Federal contracting dollars awarded to small businesses from the 
funds appropriated under the American Recovery and Reinvestment Act, 
ARRA. Preliminary reports show that, as of February 1, 2010, small 
businesses have received over 29 percent of the ARRA Federal 
contracting dollars, well-exceeding the imposed 23 percent statutory 
goal. This begs the question, if the Federal government can not only 
meet but exceed these requirements for the Recovery Act, why can't 
these goals be met year in and year out? The simple answer is they can. 
I am hopeful that this administration will make a conscious effort to 
reverse the government-wide failure to meet small business goals on a 
consistent basis.
  I am confident that this legislation will result in the changes 
necessary to reduce fraud and waste while paving the way for the 
Federal government to

[[Page S491]]

maximize the use of America's innovative small businesses in the 
contracting arena. Again, I want to recognize Senator Landrieu for her 
leadership in this matter, and for her continuing commitment to the 
small business community.
                                 ______