[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.
____________________