[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2643-S2645]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 505. Ms. ERNST submitted an amendment intended to be proposed by 
her to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:
       At the appropriate place in subtitle G of title X of 
     division A, insert the following:

[[Page S2644]]

  


     SEC. ___. SMALL BUSINESS INDUSTRIAL BASE FEDERAL CONTRACTING 
                   MATTERS.

       (a) Prioritizing Engaging More Small Businesses in Federal 
     Procurement.--
       (1) In general.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended--
       (A) in subsection (g)(1)--
       (i) in subparagraph (A)(i), by striking the second 
     sentence; and
       (ii) by adding at the end the following:
       ``(C) Requirement.--In meeting each of the goals under 
     subparagraph (A), the Government shall ensure the 
     participation of a broad spectrum of small business concerns 
     from a wide variety of industries.'';
       (B) in subsection (h)(1)--
       (i) in subparagraph (C), by striking ``and'' at the end;
       (ii) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(E) the information described in clauses (ii) through 
     (iv) of subsection (y)(2)(B).''; and
       (C) in subsection (y)--
       (i) in paragraph (2)--

       (I) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and adjusting the margins 
     accordingly;
       (II) by inserting before clause (i), as so redesignated, 
     the following:

       ``(A) Goals.--'';

       (III) in clause (i), as so redesignated, by inserting 
     ``Prime contract goals.--'' before ``A determination'';
       (IV) in clause (ii), as so redesignated, by inserting 
     ``Subcontract goals.--'' before ``A determination'';
       (V) by striking subparagraphs (C) and (D) and inserting the 
     following:

       ``(B) Composition of the small business industrial base.--
       ``(i) Total number of small business concerns.--The number 
     of small business concerns, small business concerns owned and 
     controlled by service-disabled veterans, qualified HUBZone 
     small business concerns, small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals, and small business concerns owned and controlled 
     by women--

       ``(I) awarded prime contracts during the fiscal year 
     compared to the prior fiscal year, including a breakdown by 
     North American Industry Classification System code, if 
     available; and
       ``(II) awarded subcontracts during the fiscal year compared 
     to the prior fiscal year, including a breakdown by North 
     American Industry Classification System code, if available.

       ``(ii) Maturity of small business concerns.--A breakdown of 
     the number of new small business entrants, recent small 
     business entrants, and established small business concerns 
     awarded prime contracts or subcontracts during the fiscal 
     year, including a breakdown of such entities that are small 
     business concerns owned and controlled by service-disabled 
     veterans, qualified HUBZone small business concerns, small 
     business concerns owned and controlled by socially and 
     economically disadvantaged individuals, and small business 
     concerns owned and controlled by women.
       ``(iii) Dollar distribution among small business 
     concerns.--The total dollar value of prime contract awards 
     for the top 20 small business concerns that received the most 
     Federal procurement funding in the fiscal year, compared to 
     the combined total dollar value for the remaining small 
     business concerns, and a comparison of that data with the 
     prior fiscal year.
       ``(iv) Small business participation by industry.--The total 
     dollar value of prime contract awards made to small business 
     concerns in all industry sectors and sorted by highest dollar 
     amount per major industry sector to the least, including--

       ``(I) the number of individual small business contractors 
     awarded contracts in each industry sector; and
       ``(II) the top 10 industries in which small business 
     concerns, small business concerns owned and controlled by 
     service-disabled veterans, qualified HUBZone small business 
     concerns, small business concerns owned and controlled by 
     socially and economically disadvantaged individuals, and 
     small business concerns owned and controlled by women 
     participate, compared to the 10 industries in which those 
     concerns have the least participation.''; and
       (VI) in subparagraph (E), by striking ``(E)'' and inserting 
     ``(C) Other factors.--''; and

       (ii) in paragraph (3), by striking subparagraphs (A) and 
     (B) and inserting the following:
       ``(A) not more than 40 percent of the score on the dollar 
     value of prime contracts described in paragraph (2)(A), as 
     determined by the Administrator;
       ``(B) not less than 30 percent of the score on the 
     information provided in paragraph (2)(B), as determined by 
     the Administrator; and
       ``(C) the appropriate percent of the score on the 
     information provided in paragraph (2)(C), as determined by 
     the Administrator.''.
       (2) Regulations.--Not later than 90 days after the date of 
     enactment of this section, the Administrator of the Small 
     Business Administration shall issue regulations to define the 
     terms ``new small business entrant'', ``recent small business 
     entrant'', and ``established small business concern'' for 
     purposes of subparagraph (B)(ii) of section 15(y)(2) of the 
     Small Business Act (15 U.S.C. 644(y)(2)), as added by 
     paragraph (1).
       (b) Limitation on Federal Agency Credit for Meeting 
     Contracting Goals.--Section 15(g) of the Small Business Act 
     (15 U.S.C. 644(g)) is amended by adding at the end the 
     following:
       ``(4) Limitation on credit for meeting contracting goals.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `covered category of small business concern' 
     means--

       ``(I) a small business concern owned and controlled by 
     service-disabled veterans;
       ``(II) a qualified HUBZone small business concern;
       ``(III) a small business concern owned and controlled by 
     socially and economically disadvantaged individuals; or
       ``(IV) a small business concern owned and controlled by 
     women; and

       ``(ii) the term `credit' means the value of a prime 
     contract.
       ``(B) General rule.--A Federal agency may allocate credit 
     for a single prime contract awarded to a small business 
     concern not more than 2 times for purposes of demonstrating 
     compliance with the goals of the Federal agency established 
     under paragraph (2)(A).
       ``(C) Allocation of credit.--
       ``(i) First allocation.--The first allocation of credit 
     described in subparagraph (B) shall be applied towards the 
     goal of the Federal agency established under paragraph (2)(A) 
     for participation by small business concerns.
       ``(ii) Second allocation.--A second allocation of credit 
     described in subparagraph (B) shall be applied as follows:

       ``(I) If the prime contract was awarded as a sole-source 
     contract or through competition restricted to a covered 
     category of small business concern, the credit shall be 
     applied towards the goal of the Federal agency established 
     under paragraph (2)(A) for participation by the applicable 
     covered category of small business concern.
       ``(II) If the prime contract was not awarded as a sole-
     source contract or through competition restricted to a 
     covered category of small business concern, the credit may 
     only be applied towards a single goal of the Federal agency 
     established under paragraph (2)(A), determined at the 
     election of the contracting officer, for participation by a 
     covered category of small business concern that is applicable 
     to the recipient of the prime contract, without regard to 
     whether the recipient of the prime contract qualifies as more 
     than 1 covered category of small business concern.''.

       (c) Testimony on Small Business Engagement Before 
     Congress.--Section 15(g)(2) of the Small Business Act (15 
     U.S.C. 644(g)(2)) is amended by adding at the end the 
     following:
       ``(G) Remediation.--Any Federal agency failing to receive a 
     score equivalent to a letter grade of `A' or above in a 
     letter graded rating system, as established under subsection 
     (y), in a fiscal year shall--
       ``(i) submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives the report required 
     under subsection (h)(1); and
       ``(ii) testify before the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives on the reasons for 
     failing to meet a letter grade of `A' or above, and the 
     details of the report submitted under clause (i), in 
     particular the justifications and remediation plan described 
     in subparagraphs (C) and (D) of subsection (h)(1).''.
       (d) Evaluation of Offers for Contracts Including 
     Subcontracting Plans.--Section 8(d)(4)(G) of the Small 
     Business Act (15 U.S.C. 637(d)(4)(G)) is amended--
       (1) in the matter preceding clause (i), by striking 
     ``bundled contract where the head of the agency determines 
     that the contract offers a significant opportunity for 
     subcontracting'' and inserting ``contract that includes a 
     subcontracting plan required under this paragraph or 
     paragraph (5)''; and
       (2) in clause (i), by striking ``the rate provided under 
     the subcontracting plan for small business participation'' 
     and inserting ``a description of the extent to which the 
     offeror proposes to use small business concerns as 
     subcontractors at any tier''.
       (e) Accessibility and Clarity in Contracts to Engage Small 
     Suppliers and Small Businesses.--
       (1) Definitions.--In this section--
       (A) the term ``covered notice'' means a notice pertaining 
     to small business concerns, such as a sources sought notice 
     or solicitation restricted to competition among small 
     business concerns or covered small business concerns, 
     published by a Federal agency on SAM.gov or any successor 
     website marketing Federal contract opportunities;
       (B) the term ``covered small business concern'' means--
       (i) a small business concern owned and controlled by women, 
     a small business concern owned and controlled by veterans, a 
     small business concern owned and controlled by service-
     disabled veterans, or a qualified HUBZone small business 
     concern, as those terms are defined in section 3 of the Small 
     Business Act (15 U.S.C. 632); and
       (ii) a socially and economically disadvantaged small 
     business concern, as defined in section 8(a)(4)(A) of the 
     Small Business Act (15 U.S.C. 637(a)(4)(A)); and
       (C) the terms ``Federal agency'' and ``small business 
     concern'' have the meanings given those terms in section 3 of 
     the Small Business Act (15 U.S.C. 632).
       (2) Inclusion of key words in notices for small business 
     contract actions.--Each covered notice shall, to the maximum 
     extent

[[Page S2645]]

     practicable, include key words and contract requirements in 
     the title or description of the covered notice such that 
     small business concerns seeking contract opportunities using 
     the search function of SAM.gov or any successor website can 
     easily identify and understand those opportunities.
       (3) Plain language.--
       (A) In general.--Each covered notice shall be written in a 
     manner that is clear, concise, and accessible to the reader 
     such that a small business concern can easily understand the 
     intent of the Federal agency.
       (B) Exception.--If the covered notice cannot meet the 
     requirement under subparagraph (A) due to requirements 
     applicable to the covered notice from regulation or law, the 
     Federal agency shall include with the covered notice a cover 
     page adequately summarizing the contents of the covered 
     notice, written in a clear, concise, and accessible manner, 
     such that a small business concern can easily understand the 
     intent of the Federal agency.
       (4) Attachments.--A Federal agency may not meet the 
     requirement in paragraph (2) by only including key words and 
     contract requirements in a document that is attached to the 
     covered notice.
       (5) Rulemaking.--Not later than 90 days after the date of 
     enactment of this section, the Administrator of the Small 
     Business Administration shall promulgate regulations to carry 
     out this section.
       (f) Rule of Two Analysis Applies Before Using a Multiple 
     Award Contract.--Section 15(r) of the Small Business Act (15 
     U.S.C. 644(r)) is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and adjusting 
     the margins accordingly;
       (2) by striking the matter before subparagraph (A), as so 
     redesignated, and inserting the following:
       ``(1) In general.--Except as provided in paragraph (2), 
     Federal agencies shall--''; and
       (3) by adding at the end the following:
       ``(2) Exceptions.--The requirements in paragraph (1) shall 
     not apply--
       ``(A) in the case of contracts, including orders, awarded 
     under subpart 8.4 of the Federal Acquisition Regulation (or 
     any successor regulation); or
       ``(B) if the contracting officer is unable to obtain offers 
     from 2 or more small business concerns that are--
       ``(i) competitive with market prices; and
       ``(ii) competitive with regard to the quality and delivery 
     of the goods or services being purchased.''.
       (g) Aligning OSDBU and PCR Collaboration Regarding Bundled 
     or Consolidated Contracts.--Section 15 of the Small Business 
     Act (15 U.S.C. 644) is amended--
       (1) in subsection (k)--
       (A) in paragraph (5)--
       (i) by inserting ``or consolidation'' after ``bundling'';
       (ii) by inserting ``procurement center representative,'' 
     after ``work with the'';
       (iii) by inserting a comma after ``acquisition officials''; 
     and
       (iv) by inserting ``or consolidated'' after ``bundled'';
       (B) in paragraph (8), in the matter preceding subparagraph 
     (A), by inserting ``, as required under subsection (l)(4)'' 
     after ``procurement center representative,''; and
       (C) in paragraph (17)--
       (i) in subparagraph (B), by striking ``and'' at the end;
       (ii) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) inform the procurement center representative at such 
     agency of the notice if the notice pertains to contract 
     bundling or consolidation and work with the procurement 
     center representative and appropriate agency personnel to 
     increase the opportunity for competition; and''; and
       (2) in subsection (l)(2)--
       (A) by redesignating subparagraphs (H), (I), (J), and (K) 
     as subparagraphs (I), (J), (K), and (L), respectively; and
       (B) by inserting after subparagraph (G) the following:
       ``(H) consult with the Director of the Office of Small and 
     Disadvantaged Business Utilization of that agency and 
     appropriate agency personnel with regard to--
       ``(i) proposed solicitations involving significant bundling 
     or consolidation of contract requirements as described in 
     subsection (k)(5); and
       ``(ii) notices by small business concerns of undue 
     restrictions on the ability of the small business concern to 
     compete for the award due to significant bundling or 
     consolidation of contract requirements, as described in 
     subsection (k)(17);''.
                                 ______