[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.
____________________