[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);''.
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