[Congressional Record Volume 165, Number 7 (Monday, January 14, 2019)]
[House]
[Pages H528-H531]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPANDING CONTRACTING OPPORTUNITIES FOR SMALL BUSINESSES ACT OF 2019
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 190) 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.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 190
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 2019''.
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
[[Page H529]]
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
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.
(a) In General.--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 (as defined in section 8(m) of the Small
Business Act (15 U.S.C. 637(m))).
(2) A program to certify small business concerns owned and
controlled by service-disabled veterans (as defined in
section 3(q)(1) of the Small Business Act (15 U.S.C.
632(q))).
(b) Additional Notice.--The Administrator of the Small
Business Administration shall submit a copy of a notification
required under subsection (a) to the Law Revision Counsel of
the House of Representatives so that the Law Revision Counsel
may execute the amendments required under section 4.
SEC. 4. 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).
SEC. 5. GAO REPORT.
(a) Study.--With respect to the procurement programs of the
Small Business Administration for small business concerns
owned and controlled by women (as defined in section 8(m) of
the Small Business Act (15 U.S.C. 637(m))) and for small
business concerns owned and controlled by service-disabled
veterans (as defined in section 3(q)(1) of the Small Business
Act (15 U.S.C. 632(q))), 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 assurances 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.--Not 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
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.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 190, the Expanding Contracting
Opportunities for Small Businesses Act of 2019.
The Small Businesses Act sets forth a governmentwide 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
business within that agency.
Regrettably, small firms face barriers in securing Federal contracts.
According to the SBA, small businesses won $105.6 billion in contracts
during fiscal year 2016, representing 23.88 percent of total Federal
contract dollars. That is why the Small Business Act gives agencies the
ability to limit, or set aside, contracts for small businesses to bid
and compete against one another.
[[Page H530]]
The SBA administers several set-asides that are designed to increase
the participation of several socioeconomic categories, including the
8(a) program, HUBZone program, women-owned, and service-disabled
veteran-owned small business programs.
While most contracts are awarded through competition, sole source
contracts also exist if certain criteria are met. However, current sole
source awards have become complex and underutilized in recent years.
They do not represent the changing nature of Federal contract awards
and have become outdated. H.R. 190 raises the dollar amount of sole
source awards to reflect modern contract awards.
I applaud Mr. Marshall and his cosponsor, Mr. Schneider, for
introducing this bill providing flexibility to contracting officers
when awarding sole source contracts under SBA contracting programs.
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 business to do the majority of
the work and not subcontract out.
Mr. Speaker, I urge Members to support this legislation, and I
reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 190, the Expanding Contracting
Opportunities for Small Businesses Act of 2019.
I want to commend the gentleman from Kansas (Mr. Marshall) and the
gentleman from Illinois (Mr. Schneider) for working in a cooperative
and bipartisan manner on this important legislation.
The bill we are considering today passed the House last September
because it is both good for small businesses and good for the Federal
Government. By raising the potential amount of sole source contract
awards, this bill encourages Federal agency contracting officers to do
more work with women-owned, service-disabled veteran-owned, HUBZone,
and socially and economically disadvantaged small businesses.
The bill will also strengthen the integrity of the sole source award
process by requiring the SBA to actively determine that a women-owned
or service-disabled veteran-owned small business is qualified and
eligible to receive the award before it is made.
Finally, the bill tasks the Government Accountability Office with
assessing Congress' ability to oversee proper spending through sole
source awards.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentleman from
Illinois (Mr. Schneider), who is a cosponsor of the legislation.
Mr. SCHNEIDER. Mr. Speaker, I rise today in support of H.R. 190, the
Expanding Contracting Opportunities for Small Businesses Act of 2019. I
am proud to again introduce this bill with my friend from Kansas (Mr.
Marshall).
As they did in the last Congress, I encourage my colleagues to join
us in passing this important bipartisan legislation.
Women-owned businesses, companies owned by service-disabled veterans,
and other types of small firms have unique opportunities to work with
the Federal Government through sole source contracting.
Unfortunately, regulations governing these types of contracts,
specifically the maximum value amount of the contract, have not kept
pace with inflation, and many small business owners often won't pursue
these opportunities due to their diminished return. Furthermore, the
law includes option years towards the cap, reducing the projected
returns and lowering the appeal of sole source contracts.
For these reasons, many eligible small businesses overlook sole
source contracts as a quality opportunity to do business with the
Federal Government. Our bill would bring the sole source contracting
requirements in line with inflation and only apply base years, not the
option years, to a contract's cap.
Additionally, programs such as sole source contracting currently
depend on small businesses certifying their own eligibility. It is
important that we better ensure the integrity of these programs.
H.R. 190 protects these programs through a process whereby the Small
Business Administration would confirm eligibility of a participating
company. Sole source contractors should present a real opportunity for
eligible small businesses. Our legislation would make these contracts
more competitive, while enhancing how we ensure they are awarded to
eligible companies.
Mr. Speaker, I am proud to have introduced this bipartisan
legislation with Dr. Marshall to help small businesses, and I urge my
colleagues to support its adoption.
{time} 1645
Mr. CHABOT. Mr. Speaker, I yield 2 minutes to the gentleman from
Kansas (Mr. Marshall), one of the chief sponsors of the legislation.
Mr. MARSHALL. Mr. Speaker, I rise today to urge my colleagues to
support H.R. 190, the Expanding Contracting Opportunities for Small
Businesses Act of 2019.
Small business sole source contracting can be a valuable tool for
both Federal agencies and small businesses. However, our Federal
procurement processes are rapidly changing, and the sole source
authority provided by the Small Business Act has not kept up with these
changes. By adjusting the dollar amount thresholds for these contracts,
this bill will increase the opportunities available to certain small
businesses utilizing the Federal procurement process.
While it is critical that agencies maximize opportunities to small
businesses, it is equally important that they have clear guidelines to
guarantee only eligible and qualified firms receive the awards. This
bill will apply new oversight procedure that requires agencies to
coordinate with the SBA to ensure only eligible candidates are awarded
a sole source contract.
I am proud of this legislation and its mission to promote small
business growth, strengthen oversight, and incentivize Federal agencies
to work with small businesses.
Mr. Speaker, I also want to thank my colleague Congressman Schneider
for teaming up with us on this bill, and I encourage my colleagues to
support this bipartisan bill as well.
Mr. CHABOT. Mr. Speaker, I am prepared to close. I have no further
speakers.
Mr. Speaker, again, I want to thank Dr. Marshall as well as Mr.
Schneider for their work and their leadership on this important
legislation.
This bill brings the dollar amount of sole source awards in line with
the size of current contracts and strengthens oversight by instituting
a new eligibility determination check by the SBA before sole source
contracts are awarded.
Therefore, I would urge my colleagues to support this bipartisan
legislation, and I yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I want to thank the gentleman from Kansas as well as the
gentleman from Illinois for introducing this important legislation to
provide flexibility to contracting officers when awarding sole source
contracts.
H.R. 190 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.
It promotes and preserves a strong, competitive marketplace for our
Federal agencies while also strengthening the ability of women,
service-disabled veterans, and socioeconomic businesses to participate
with the single largest purchaser of goods and services in the world.
Mr. Speaker, I urge Members to support this bill, and I yield back
the balance of my time
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New York (Ms. Velazquez) that the House suspend the
rules and pass the bill, H.R. 190.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Ms. VELAZQUEZ. Mr. Speaker, on that I demand the yeas and nays.
[[Page H531]]
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________