[Congressional Record Volume 166, Number 4 (Wednesday, January 8, 2020)]
[House]
[Pages H39-H41]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        UNLOCKING OPPORTUNITIES FOR SMALL BUSINESSES ACT OF 2019

  Ms. VELAZQUEZ. Madam Speaker, I move to suspend the rules and pass 
the bill (H.R. 5146) to amend the Small Business Act to require 
contracting officers to take a small business concern's past 
performance as part of a joint venture into account when evaluating the 
small business concern, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5146

       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 ``Unlocking Opportunities for 
     Small Businesses Act of 2019''.

     SEC. 2. PAST PERFORMANCE RATINGS OF JOINT VENTURES FOR SMALL 
                   BUSINESS CONCERNS.

       Section 15(e) of the Small Business Act (15 U.S.C. 644(e)) 
     is amended by adding at the end the following:
       ``(5) Past performance ratings of joint ventures for small 
     business concerns.--With respect to evaluating an offer for a 
     prime contract made by a small business concern that 
     previously participated in a joint venture with another 
     business concern (whether or not such other business concern 
     was itself a small business concern), the Administrator shall 
     establish regulations--
       ``(A) requiring contracting officers to consider the record 
     of past performance of the joint venture when evaluating the 
     past performance of the small business concern; and
       ``(B) requiring the small business concern to inform the 
     contracting officer what duties and responsibilities the 
     small business concern carried out as part of the joint 
     venture.''.

     SEC. 3. PAST PERFORMANCE RATINGS OF FIRST-TIER SMALL BUSINESS 
                   SUBCONTRACTORS.

       Section 8(d)(17) of the Small Business Act (15 U.S.C. 
     637(d)(17)) is amended to read as follows:
       ``(17) Past performance ratings for certain small business 
     subcontractors.--
       ``(A) In general.--Upon request by a small business concern 
     that performed as a first tier subcontractor on a covered 
     contract (as defined in paragraph 13(A)) that is submitting 
     an offer for a solicitation, the prime contractor for such 
     covered contract shall submit to the contracting agency 
     issuing the solicitation or to such small business concern a 
     record of past performance for such small business concern 
     with respect to such covered contract.
       ``(B) Consideration.--A contracting officer shall consider 
     the record of past performance of a small business concern 
     provided under subparagraph (A) when evaluating an offer for 
     a prime contract made by such small business concern.''.

     SEC. 4. RULEMAKING.

       (a) SBA Rules.--Not later than the end of the 120-day 
     period beginning on the date of enactment of this Act, the 
     Administrator of the Small Business Administration shall 
     issue rules to carry out this Act and the amendments made by 
     this Act.
       (b) Federal Acquisition Regulation.--Not later than the end 
     of the 120-day period beginning on the date that rules are 
     issued under subsection (a), the Federal Acquisition 
     Regulation shall be revised to reflect such rules.

     SEC. 5. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  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. Madam Speaker, I ask unanimous consent that all 
Members 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. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 5146, the Unlocking 
Opportunities for Small Businesses Act of 2019, which will eliminate 
barriers to entry for small businesses seeking to perform as prime 
contractors in the Federal marketplace.
  As the largest buyer of goods and services in the world, the Federal 
Government needs contractors it can rely upon, and knowing how a 
business performed previously is a strong predictor of its ability to 
successfully perform in the future.
  However, one of the challenges small businesses experience while 
offering their products and services to the Federal Government is 
showing that they have relevant past performance. Usually, the 
government relies on the past performance records it compiles. However, 
such information solely on the small business may not exist. Thus, 
small businesses cannot effectively compete for contracts.
  Moreover, small businesses cannot develop the appropriate past 
performance without winning a prime contract first.
  H.R. 5146 offers a solution to this dilemma by allowing small 
businesses to leverage other types of past performance information. 
Specifically, it requires contracting officers to consider a joint 
venture's past performance record when evaluating an offer of any of 
its members.
  Similarly, it requires the acceptance of past performance information 
generated by a contractor on its subcontractor when reviewing an offer 
from the latter to serve as prime.
  With this change, H.R. 5146 provides small businesses additional ways 
of showing they possess relevant past-performance experience. Moreover, 
by requiring acceptance of joint venture and subcontracting past-
performance information, this bill advances uniformity government wide.
  I urge Members to support this important piece of legislation, and I 
reserve the balance of my time.
  Mr. CHABOT. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in support of H.R. 5146, the Unlocking 
Opportunities for Small Businesses Act of 2019, as amended.
  Madam Speaker, I would like to thank the gentleman from Minnesota 
(Mr. Hagedorn), and the two gentlemen from Pennsylvania, Dr. Joyce and 
Mr. Evans, for their leadership on this legislation and, again, working 
together in a bipartisan manner, which will reduce significant barriers 
to small contractors in the Federal marketplace.
  As we have heard from our colleagues, obtaining relevant, past-
performance information is critical for a small business to be 
competitive for a contractor award. Unfortunately, Federal agencies 
take a narrow view on what they might consider as relevant past 
performance for a prime contract opportunity.

[[Page H40]]

  This limits a small business' ability to compete for contracts that 
they would otherwise be a perfect fit for, which is detrimental both to 
the small business and to the government. In short, the important thing 
for a Federal agency to know is whether a business is capable of 
successfully completing the specific task being requested.
  If the small business can show that it has successfully performed 
that type of work in the past, it should be able to use that as 
evidence that it can complete the task in the future. It is that 
simple.
  This bill will not only unlock prime contracting opportunities for 
small businesses, but it will also have the additional positive impact 
of eventually growing the industrial base, increasing competition, and, 
again, most importantly, lowering costs to the taxpayer.
  Madam Speaker, I urge my colleagues to support this important 
legislation, and I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Speaker, I continue to reserve the balance of my 
time.
  Mr. CHABOT. Madam Speaker, I yield such time as he may consume to the 
gentleman from Minnesota (Mr. Hagedorn), and I thank the gentleman for 
his leadership on this legislation.
  Mr. HAGEDORN. Madam Speaker, I appreciate the gentleman for his 
words, and I would first like to commend Chair Velazquez and Ranking 
Member Chabot for their leadership and their bipartisanship, 
demonstrating that a committee like ours can do very good work. I think 
our committee is an example for many others here in the House, so I 
thank them for that.
  Madam Speaker, I rise in support of H.R. 5146, the Unlocking 
Opportunities for Small Businesses Act, which is very important 
legislation. It was found through hearings and discussions with small 
businesses who wanted to be prime contractors with the government, the 
committee found that small businesses were having difficulties. Because 
of the criteria and so forth, the government wouldn't take into 
consideration, for instance, as Mr. Chabot and the chair said, their 
experience as subcontractors.
  So we wanted to do something about that. And I want to thank my 
friend, Mr. Evans of Pennsylvania, who helped me, and also coauthored 
the bill and collaborated with us on this bill, along with my friend 
from Pennsylvania, the good Dr. Joyce. I thank the gentlemen for all of 
their work.
  It is like the title of the bill says, we are going to unlock 
opportunities for small business contractors seeking prime contracting 
with the Federal Government. Unfortunately, small contractors are stuck 
in a catch-22.
  In order to receive a prime contract, Federal agencies require 
evidence showing that the contractor is capable of doing the work, but 
they will generally only accept past performance conducted as a Federal 
prime contractor as proof of this experience.
  Therefore, companies can't obtain prime contracts if they lack a 
record of performance, but companies can't get the prior performance 
experienced without winning prime contracts. So it goes around in a 
circle.
  For many small businesses throughout southern Minnesota and our 
Nation, winning prime contracts is the key to sustained growth. Making 
the leap from subcontracting or teaming with other companies to prime 
contracting, as we discussed, can be exceedingly challenging due to 
this dilemma.
  This assessment of a contractor's capabilities, based only on their 
prior experience as a prime contractor, does a great disservice to many 
qualified companies who have performed vital work for the government.
  The work small contractors have performed in those roles may have 
great relevance to the contract as it is bid, however, they are unable 
to showcase their capabilities due to the agencies' narrow focus on 
prime contracting experience.
  These limitations not only prevent growth for small businesses but 
have a larger impact on the Federal Government's industrial base. More 
and more, small businesses are taking their considerable talents to the 
private sector rather than working with the Federal Government.
  Past performance rules, such as this one, are way out of step with 
today's economy, and they undermine the Federal Government's ability to 
efficiently seek qualified and capable businesses willing and able to 
work with the Federal Government.
  By removing this barrier to entry for small businesses, our bill 
gives them incentive to rejoin the Federal contracting community and 
even persuades new businesses to enter the Federal marketplace. The 
more small businesses we can attract, the more competition will 
increase and we will obtain better results and outcomes for the 
American taxpayer.
  This bill opens up a world of prime contracting opportunities for 
small contractors, and I urge my colleagues on both sides of the aisle 
to join me in supporting H.R. 5146.
  Ms. VELAZQUEZ. Madam Speaker, I yield such time as he may consume to 
the gentleman from Pennsylvania (Mr. Evans), the vice chair of the 
Small Business Committee.
  Mr. EVANS. Madam Speaker, I would like to thank the chairperson of 
the Small Business Committee, Chairwoman Velazquez, for yielding. The 
gentlewoman has, in the 3 years that I have been here, led this 
committee in a very positive direction, and also as the ranking member 
before she became chair. Ranking Member Chabot has also been a partner 
in this effort. I thank him too for his leadership of working together.
  I thank Mr. Hagedorn from the great State of Minnesota, which is one 
of my favorite places--Sleepy Eye, Minnesota--the gentleman knows that 
I know about Sleepy Eye--as well as Mr. Joyce, who is a colleague from 
Pennsylvania. I thank my colleagues for their leadership on this bill.
  The well-being of our communities depend in part on what we do to 
create circumstances where small businesses can thrive. When small 
businesses thrive, Americans enjoy great economic security. In my home 
city of Philadelphia, minorities constitute about 65 percent of the 
population. Yet, they constitute 80 percent of those in poverty.
  Coupled with the fact that the city has a poverty rate of nearly 25 
percent, creating economic opportunity for minorities is critical to 
advance well-being: financially, physically, and socially.
  We, as Members of Congress, have tools in our toolbox to address 
economic disparity. One of those is H.R. 5146. This bill will allow 
small businesses to compete more fairly with large businesses by 
permitting small businesses to create past performance records.
  A past performance record is integral to winning federal contracts, 
but small businesses are prevented from establishing one.
  Most of the work of minority-owned small businesses does not count 
towards past performance, such as work in joint ventures or as 
subcontractors to prime contractors.
  This hurts small businesses' ability to bid, compete, and win 
contracts as primes. In turn, it impairs the business' ability to grow, 
create jobs, and contribute economically to the community.

                              {time}  1545

  With the passage of this bipartisan bill into law, we will create 
circumstances where all small businesses, including minority-owned 
small businesses, will be better equipped to compete and thrive.
  Madam Speaker, I thank the chair again for her leadership and the 
staff, too, for working together collectively to make this happen. I 
invite all of my colleagues to support passage of this bill.
  Mr. CHABOT. Madam Speaker, I yield such time as he may consume to the 
gentleman from Pennsylvania (Mr. Joyce). I thank him for his leadership 
and for working so hard on this legislation.
  Mr. JOYCE of Pennsylvania. Madam Speaker, I rise today in support of 
H.R. 5130, the Capturing All Small Businesses Act. As a member of the 
Small Business Committee, I have personally heard how important this 
act is.
  Additionally, I want to speak today in support of H.R. 5146, the 
Unlocking Opportunities for Small Businesses Act, introduced by my 
friend and colleague, Mr. Hagedorn from Minnesota, and my fellow 
Pennsylvanian, Mr. Evans.

[[Page H41]]

  Federal contracts provide many businesses across the Nation with the 
opportunity to receive stable funding through which they can develop a 
reliable workforce, supply chain, or line of production. These 
contracts can be a lifeline to small businesses looking to grow or 
expand. Unfortunately, as designed, the current system limits smaller 
companies' chances to acquire these contracts.
  This legislation implements a much-needed change to allow small 
businesses to use their previous experience to demonstrate their merits 
and to strengthen their abilities to compete for Federal contracts.
  This is an important step in leveling the playing field for small 
businesses looking to grow their footprint in the Federal market. I 
look forward to the positive impact that this legislation will have on 
countless small businesses that I represent in south central and 
southwestern Pennsylvania and across our great country.
  Ms. VELAZQUEZ. Madam Speaker, I have no further speakers, and I am 
prepared to close.
  Mr. CHABOT. Madam Speaker, I yield myself the balance of my time to 
close.
  Madam Speaker, again, I thank the gentleman from Minnesota (Mr. 
Hagedorn) and the two gentlemen from Pennsylvania, Mr. Evans and Dr. 
Joyce, for their leadership on this important piece of legislation.
  Increasing Federal contracting opportunities for small firms is a 
win-win situation. The taxpayers get better value from their tax 
dollars, and small firms grow and spur our economy forward.
  This is really commonsense, bipartisan legislation. I urge my 
colleagues to support it, and again, I thank the gentlewoman from New 
York, the chairwoman of the committee, who, once again, has shown that 
she is working together in a collegial and bipartisan fashion. We 
really do appreciate that. That is one of the reasons that all four of 
the bills we have taken up this afternoon have had both Republicans and 
Democrats working together. That doesn't happen in every committee, but 
it does happen in the Small Business Committee, and I thank her for 
that.
  Madam Speaker, I yield back the balance of my time.
  Ms. VELAZQUEZ. Madam Speaker, I yield myself the balance of my time 
to close.
  Madam Speaker, I thank the gentleman from Minnesota (Mr. Hagedorn), 
the gentleman from Pennsylvania (Mr. Evans), and Dr. Joyce from 
Pennsylvania for their work on H.R. 5146 to make it easier for small 
businesses to pursue Federal prime contract opportunities.
  In the Small Business Committee, we recognize the crucial role small 
businesses play in providing goods and services to the Federal 
Government. That is why we are always searching for ways to simplify 
the contracting process. H.R. 5146 achieves this by requiring 
contracting officers to accept relevant past performance information 
obtained by a small business while performing as a subcontractor or in 
a joint venture.
  With this bill, we reiterate our steadfast commitment to the small 
business community. Moreover, it will encourage small businesses with 
relevant past performance experience to bid on prime contracts, which, 
in turn, will have the effect of promoting the growth of the industrial 
base, enhancing competition, and decreasing costs.
  In closing, I thank Ranking Member Chabot for his support for these 
four bills. When passed, they will bring the total number of small 
business bills approved by the House of Representatives to 27. That is 
not a small feat, and I appreciate the gentleman's support and that of 
the members of the committee who have rolled up their sleeves and 
worked together to help our Nation's 30 million small businesses 
succeed.
  Madam Speaker, I urge my colleagues in the Senate to follow our lead 
and move expeditiously to approve these bills. I urge my colleagues 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. 5146, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________