[Congressional Record Volume 164, Number 158 (Tuesday, September 25, 2018)]
[House]
[Pages H8810-H8812]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1745
  EXPANDING CONTRACTING OPPORTUNITIES FOR SMALL BUSINESSES ACT OF 2018

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 6369) to amend the Small Business Act to eliminate the 
inclusion of option years in the award price for sole source contracts, 
and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6369

       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 ``Expanding Contracting 
     Opportunities for Small Businesses Act of 2018''.

     SEC. 2. AMENDMENTS TO CONTRACTING AUTHORITY FOR CERTAIN SMALL 
                   BUSINESS CONCERNS.

       (a) Qualified HUBZone Small Business Concerns.--
     Subparagraph (A) of section 31(b)(2) of the Small Business 
     Act (15 U.S.C. 657a(b)(2)) is amended to read as follows:
       ``(A) Sole source contracts.--A contracting officer may 
     award sole source contracts under this section to any 
     qualified HUBZone small business concern, if--
       ``(i) the qualified HUBZone small business concern is 
     determined to be a responsible contractor with respect to 
     performance of such contract opportunity;
       ``(ii) the contracting officer does not have a reasonable 
     expectation that two or more qualified HUBZone small business 
     concerns will submit offers for the contracting opportunity;
       ``(iii) the anticipated award price of the contract will 
     not exceed--

       ``(I) $7,000,000, in the case of a contract opportunity 
     assigned a standard industrial classification code for 
     manufacturing; or
       ``(II) $4,000,000, in the case of all other contract 
     opportunities; and

       ``(iv) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price.''.
       (b) Small Business Concern Owned and Controlled by Service-
     Disabled Veterans.--Subsection (a) of section 36 of the Small 
     Business Act (15 U.S.C. 657f) is amended to read as follows:
       ``(a) Sole Source Contracts.--In accordance with this 
     section, a contracting officer may award a sole source 
     contract to any small business concern owned and controlled 
     by service-disabled veterans if--
       ``(1) such concern is determined to be a responsible 
     contractor with respect to performance of such contract 
     opportunity;
       ``(2) the contracting officer does not have a reasonable 
     expectation that two or more small business concerns owned 
     and controlled by service-disabled veterans will submit 
     offers for the contracting opportunity;
       ``(3) the anticipated award price of the contract will not 
     exceed--
       ``(A) $7,000,000, in the case of a contract opportunity 
     assigned a standard industrial classification code for 
     manufacturing; or
       ``(B) $4,000,000, in the case of any other contract 
     opportunity;
       ``(4) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price;
       ``(5) the contracting officer has notified the 
     Administration of the intent to make such award and requested 
     that the Administration determine the concern's eligibility 
     for award; and
       ``(6) the Administration has determined that such concern 
     is eligible for award.''.
       (c) Certain Small Business Concerns Owned and Controlled by 
     Women.--Section 8(m) of the Small Business Act (15 U.S.C. 
     637(m)) is amended--
       (1) by amending paragraph (7) to read as follows:
       ``(7) Authority for sole source contracts for economically 
     disadvantaged small business concerns owned and controlled by

[[Page H8811]]

     women.--A contracting officer may award a sole source 
     contract under this subsection to any small business concern 
     owned and controlled by women described in paragraph (2)(A) 
     and certified under paragraph (2)(E) if--
       ``(A) such concern is determined to be a responsible 
     contractor with respect to performance of the contract 
     opportunity;
       ``(B) the contracting officer does not have a reasonable 
     expectation that two or more businesses described in 
     paragraph (2)(A) will submit offers;
       ``(C) the anticipated award price of the contract will not 
     exceed--
       ``(i) $7,000,000, in the case of a contract opportunity 
     assigned a standard industrial classification code for 
     manufacturing; or
       ``(ii) $4,000,000, in the case of any other contract 
     opportunity;
       ``(D) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price;
       ``(E) the contracting officer has notified the 
     Administration of the intent to make such award and requested 
     that the Administration determine the concern's eligibility 
     for award; and
       ``(F) the Administration has determined that such concern 
     is eligible for award.''; and
       (2) by amending paragraph (8) to read as follows:
       ``(8) Authority for sole source contracts for small 
     business concerns owned and controlled by women in 
     substantially underrepresented industries.--A contracting 
     officer may award a sole source contract under this 
     subsection to any small business concern owned and controlled 
     by women certified under paragraph (2)(E) that is in an 
     industry in which small business concerns owned and 
     controlled by women are substantially underrepresented (as 
     determined by the Administrator under paragraph (3)) if--
       ``(A) such concern is determined to be a responsible 
     contractor with respect to performance of the contract 
     opportunity;
       ``(B) the contracting officer does not have a reasonable 
     expectation that two or more businesses in an industry that 
     has received a waiver under paragraph (3) will submit offers;
       ``(C) the anticipated award price of the contract will not 
     exceed--
       ``(i) $7,000,000, in the case of a contract opportunity 
     assigned a standard industrial classification code for 
     manufacturing; or
       ``(ii) $4,000,000, in the case of any other contract 
     opportunity;
       ``(D) in the estimation of the contracting officer, the 
     contract award can be made at a fair and reasonable price;
       ``(E) the contracting officer has notified the 
     Administration of the intent to make such award and requested 
     that the Administration determine the concern's eligibility 
     for award; and
       ``(F) the Administration has determined that such concern 
     is eligible for award.''.
       (d) Elimination of the Inclusion of Option Years in the 
     Award Price for Contracts.--Section 8 of the Small Business 
     Act (15 U.S.C. 637) is amended by striking ``(including 
     options)'' each place such term appears.

     SEC. 3. SBA CERTIFICATION PROGRAM NOTIFICATION.

       The Administrator of the Small Business Administration 
     shall notify the Committee on Small Business of the House of 
     Representatives and the Committee on Small Business and 
     Entrepreneurship of the Senate when the Administrator has 
     implemented each of the following:
       (1) A program to certify small business concerns owned and 
     controlled by women.
       (2) A program to certify small business concerns owned and 
     controlled by service-disabled veterans.

     SEC. 4. GAO REPORT.

       (a) Study.--With respect to the Small Business 
     Administration's procurement programs for women-owned small 
     business concerns and for small business concerns owned and 
     controlled by service-disabled veterans, the Comptroller 
     General of the United States shall conduct an evaluation of 
     the policies and practices used by the Administration and 
     other Federal agencies to provide assurance that contracting 
     officers are properly classifying sole source awards under 
     those programs in the Federal Procurement Data System and 
     that sole source contracts awarded under those programs are 
     being awarded to eligible concerns.
       (b) Report.--No later than 18 months after the Small 
     Business Administration implements the certification programs 
     described under section 3, the Comptroller General shall 
     issue a report to the Committee on Small Business of the 
     House of Representatives and the Committee on Small Business 
     and Entrepreneurship of the Senate containing the findings 
     made in carrying out the study required under subsection (a).
       (c) SBA Consideration of GAO Report.--
       (1) In general.--The Administrator of the Small Business 
     Administration shall review the report issued under 
     subsection (b) and take such actions as the Administrator may 
     determine appropriate to address any concerns raised in such 
     report and any recommendations contained in such report.
       (2) Report to congress.--After the review described under 
     paragraph (1), the Administrator shall issue a report to the 
     Congress--
       (A) stating that no additional actions were necessary to 
     address any concerns or recommendations contained in the 
     report; or
       (B) describing the actions taken by the Administrator to 
     resolve such concerns or implement such recommendations.

     SEC. 5. REMOVAL OF ELIGIBILITY DETERMINATION UPON 
                   IMPLEMENTATION OF CERTIFICATION PROGRAMS.

       Effective upon the notification described under section 3, 
     the Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 8(m)--
       (A) in paragraph (7)--
       (i) in subparagraph (C), by adding ``and'' at the end;
       (ii) in subparagraph (D), by striking the semicolon at the 
     end and inserting a period; and
       (iii) by striking subparagraphs (E) and (F); and
       (B) in paragraph (8)--
       (i) in subparagraph (C), by adding ``and'' at the end;
       (ii) in subparagraph (D), by striking the semicolon at the 
     end and inserting a period; and
       (iii) by striking subparagraphs (E) and (F); and
       (2) in section 36(a)--
       (A) in paragraph (3), by adding ``and'' at the end;
       (B) in paragraph (4), by striking the semicolon at the end 
     and inserting a period; and
       (C) by striking paragraphs (5) and (6).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Chabot) and the gentlewoman from New York (Ms. Velazquez) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Ohio.


                             General Leave

  Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would like to thank Dr. Marshall and Mr. Schneider for 
their leadership on this bill.
  The Small Business Act currently allows Federal agencies to award 
sole-source contracts to women-owned; service-disabled veteran-owned; 
HUBZone; and socially and economically disadvantaged small businesses. 
However, these awards can only be made in the narrowest of 
circumstances, rightly protecting the ability of small businesses to 
compete against each other.
  Even though Federal contracting officers have this procurement tool 
in their toolbox, the reality is that small business sole-source 
contracting is rare and may be underutilized. This can, in part, be 
attributed to the fact that the maximum dollar threshold for Federal 
sole-source contracts designated in statute has fallen far behind the 
typical size of contract awards made today.
  As contracts increase in size and scope, the usefulness of small 
business sole-source contracts diminishes, to the detriment of small 
contractors eligible to receive such awards.
  H.R. 6369, as amended, adjusts the dollar threshold to actually 
reflect the size of contracts that are commonly used across the 
government today. This modest change will provide agencies with an 
accessible pathway to achieving their small business goals in 
categories they have historically been unable to meet.
  Additionally, and importantly, this bill institutes a new oversight 
process which will help reduce the chances of sole-source awards being 
made to ineligible firms by requiring positive confirmation by the 
Small Business Administration that this small business is, in fact, 
eligible to receive the award before it is issued by the Federal 
agency.
  I urge my colleagues to support H.R. 6369, as amended, and I reserve 
the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  I rise in support of H.R. 6369, the Expanding Contracting 
Opportunities for Small Businesses Act of 2018.
  The Small Business Act sets forth a government-wide 23 percent goal 
of Federal contracts that should be awarded to small businesses. Each 
Federal agency is charged with setting its own small business goals 
which are to reflect the maximum possible opportunity for small 
businesses within that agency.
  By promoting the use of sole-source contracts to small businesses, 
this bill adds to the government's pool of suppliers. This results in 
higher-quality goods and increased job creation for the economy as 
these direct awards require the small businesses to do the majority of 
the work and not subcontract out.
  I urge Members to support this legislation, and I reserve the balance 
of my time.

[[Page H8812]]

  

  Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Kansas (Mr. Marshall), the leader on this particular 
legislation.
  Mr. MARSHALL. Mr. Speaker, I rise today to urge my colleagues to 
support H.R. 6369, the Expanding Contracting Opportunities for Small 
Business Act of 2018.
  Not only will this bill provide opportunities for women-owned, 
service-disabled veteran-owned, HUBZone, and socially and economically 
disadvantaged small businesses, this legislation also helps Federal 
agencies achieve and exceed their small business goals.
  Small business sole-source contracting can be a valuable tool for 
both Federal agencies and small businesses, but our current statute is 
outdated.
  Federal procurement practices are rapidly changing, and the sole-
source authority provided by the Small Business Act has not kept up 
with the changes of today's procurement landscape. By adjusting the 
statutory sole-source dollar thresholds, H.R. 6369 incentivizes 
contracting officers' use of small business sole-source contracting in 
order to help agencies swiftly meet their goals.
  While it is critical that agencies maximize opportunities to small 
businesses, it is equally important that they have procedures in place 
to assure that awards are made only to eligible and qualified firms. 
This bill will apply a new oversight procedure that requires agencies 
to coordinate with the SBA prior to awarding a sole-source contract, 
ensuring that firms receiving awards are, in fact, qualified and 
eligible.
  I am proud of H.R. 6369 and its mission to promote small business 
growth, strengthen oversight, and incentivize Federal agencies to work 
with small businesses. I encourage my colleagues to support this bill.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I want to thank the gentleman from Kansas for 
introducing this important legislation to provide flexibility to 
contracting officers when awarding sole-source contracts.
  H.R. 6369 promotes the use of sole-source contracts to small business 
concerns through the SBA contracting programs by raising the dollar 
threshold of these contract types to account for inflation. This bill 
will make valuable strides to a more equitable playing field for small 
contractors. I urge Members to support this bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume to 
close.
  Mr. Speaker, this bill provides greater opportunities for women-
owned, service-disabled veteran-owned, HUBZone, and socially and 
economically disadvantaged small businesses.
  Additionally, it will help Federal agencies achieve and exceed their 
small business goals. It reinforces oversight, and gives Federal 
agencies a greater motivation to work with small firms.
  Therefore, I urge my colleagues to support the bipartisan and 
commonsense reforms in H.R. 6369, as amended.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Ohio (Mr. Chabot) that the House suspend the rules and 
pass the bill, H.R. 6369, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. CHABOT. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.
  The point of no quorum is considered withdrawn.

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