[House Report 110-407]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-407

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   PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3867) TO UPDATE AND 
 EXPAND THE PROCUREMENT PROGRAMS OF THE SMALL BUSINESS ADMINISTRATION, 
                         AND FOR OTHER PURPOSES

                                _______
                                

  October 24, 2007.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. Cardoza, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 773]

    The Committee on Rules, having had under consideration 
House Resolution 773, by a voice vote, report the same to the 
House with the recommendation that the resolution be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3867, the 
``Small Business Contracting Improvements Act,'' under a 
structured rule. The resolution provides one hour of general 
debate equally divided and controlled by the chairman and 
ranking minority member of the Committee on Small Business.
    The resolution waives all points of order against 
consideration of the bill except those arising under clause 9 
or 10 of rule XXI. The resolution provides that the bill shall 
be considered as read. The resolution waives all points of 
order against provisions of the bill. This waiver does not 
affect the point of order available under clause 9 of rule XXI 
(regarding earmark disclosure).
    The resolution makes in order only those amendments printed 
in this report. Amendments so printed may be offered only in 
the order printed in this report, may be offered only by a 
Member designated in this report, shall be considered as read, 
shall be debatable for the time specified in this report 
equally divided and controlled by a proponent and an opponent, 
shall not be subject to amendment, and shall not be subject to 
a demand for division of the question in the House or in the 
Committee of the Whole. The resolution waives all points of 
order against such amendments except those arising under clause 
9 or 10 of rule XXI.
    The resolution provides one motion to recommit the bill 
with or without instructions. Finally, notwithstanding the 
operation of the previous question, the Chair may postpone 
further consideration of the bill to a time designated by the 
Speaker.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except for those arising under clause 9 or 10 of rule 
XXI) includes a waiver of clause 4(a) of rule XIII 
(availability of committee report). Although the rule waives 
all points of order against provisions of the bill, the 
Committee is not aware of any points of order against the bill. 
The waiver of all points of order against provisions of the 
bill is prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 363

    Date: October 24, 2007.
    Measure: H.R. 3867.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To grant an open rule.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Castor--Nay; Arcuri--Nay; Hastings 
(WA)--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 364

    Date: October 24, 2007.
    Measure: H.R. 3867.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. King (IA), which would strike 
section 101(b).
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Castor--Nay; Arcuri--Nay; Hastings 
(WA)--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 365

    Date: October 24, 2007.
    Measure: H.R. 3867.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Buchanan (FL), which would 
state that if there are two or more eligible HUBZone firms and 
one is controlled by a veteran (not service-disabled), then, 
everything being equal, the veteran-owned HUBZone firm should 
get the contract.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Castor--Nay; Arcuri--Nay; Hastings 
(WA)--Yea; Sessions--Yea; Slaughter--Nay.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    (Summaries derived from information provided by sponsors.)
    1. Velazquez (NY): This amendment would establish that 
those veterans who are severely disabled shall be given special 
consideration as agencies implement contracting regulations. It 
would also set forth certain standards for business integrity 
that are required for participation in federal contracting 
programs. Additionally, the amendment would clarify the 
implementation of the women's procurement program. (10 minutes)
    2. Akin (MO): The amendment would require that the 
Administrator of the Small Business Administration (SBA) 
conduct a study to determine what changes would be required to 
provide greater Federal contracting assistance to participants 
in the program created by section 8(a) of the Small Business 
Act that have less equity in their business concerns than other 
participants in the program. The study would be reported no 
later than six months after the date of enactment of this Act 
and the Administrator would report the details of the study to 
the Senate Small Business Committee and the House Small 
Business Committee. (10 minutes)
    3. Welch (VT)/Braley (IA): The amendment would require the 
Administrator of the Small Business Administration to carry out 
a study on the effectiveness of the HUBZone program in reaching 
rural areas. (10 minutes)
    4. Mica (FL): This amendment would clarify that the small 
business set-aside provisions of the Small Business Act (15 
U.S.C. 644) should apply to federal contracts not excluding 
Federal Supply Schedule and Multiple Award Schedule holders. 
(10 minutes)
    5. Mica (FL): The amendment would state that it is the 
sense of the House that small business set-asides should not be 
excluded from any acquisitions under the GSA's Federal Supply 
Schedule. (10 minutes)
    6. Moran, James (VA): The amendment would require that the 
Administrator of the Small Business Administration conduct a 
study to determine, with respect to small business contracts, 
whether incumbent Federal contractors are submitting frivolous 
protests to extend the length of current contracts before 
protest decisions are resolved. The Administrator also would 
develop recommendations to discourage frivolous protests. (10 
minutes)
    7. Baird (WA): This amendment would direct the 
Administrator of the Small Business Administration to examine 
the lists of groups the members of which are presumed to be 
socially disadvantaged under the Small Disadvantaged Business 
program under section 8(a) of the Small Business Act and to 
consider whether the list should be updated to include 
additional groups. (10 minutes)
    8. Brown-Waite (FL): The amendment would create a liaison 
within the Small Business Administration whose duty, in 
consultation with the Assistant Secretary of the Department of 
Homeland Security for U.S. Immigration and Customs Enforcement, 
is to ensure that section 2(i) of the Small Business Act, 
regarding assistance to individuals not lawfully within the 
United States, is carried out. (10 minutes)
    9. Gillibrand (NY): The amendment provides that any 
employer found, based on a determination by the Department of 
Homeland Security or the Attorney General to have engaged in a 
pattern or practice of hiring, recruiting or referring for a 
fee, for employment in the United States an alien knowing the 
person is an unauthorized alien shall be subject to debarment 
from the receipt of future Federal contracts. (10 minutes)
    10. Lampson (TX): The amendment would prohibit the use of 
any funds for first-class or business-class airline travel by 
agency employees when carrying out the provisions of H.R. 3867. 
The amendment includes exceptions provided by the Code of 
Federal Regulations 301-10.122 to 10.124, as applicable to 
federal agency employees. (10 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Velazquez of New York, 
               or Her Designee, Debatable for 10 Minutes

  At the end of title I, add the following:

SEC. 104. PRIORITY FOR SEVERELY DISABLED VETERANS.

  In developing regulations to implement section 101, the 
Administrator shall give a priority to those certified service-
disabled veterans that are severely disabled.
  Amend section 201 to read as follows:

SEC. 201. REQUIRING BUSINESS INTEGRITY OF SMALL BUSINESS CONCERNS.

  Section 8 of the Small Business Act (15 U.S.C. 637) is 
amended by adding at the end the following new subsection:
  ``(o) Requirement of Business Integrity.--No small business 
concern may receive any benefit under section 8(a), 8(m), 
31(b)(2)(A), 31(b)(2)(B), 36(a), or 36(b) unless the 
Administrator first performs a background check on the owners 
and officers of such small business concern and determines that 
the owners and officers do not lack business integrity. For 
purposes of such a determination, previous criminal convictions 
will create a presumption of a lack of business integrity.''.
  At the end of title II, add the following (and amend the 
table of contents accordingly):

SEC. 205. EXPANDING PROTEST AUTHORIZATION.

  Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is 
amended by adding at the end the following new paragraphs:
          ``(22) Rules similar to the rules of paragraphs (5) 
        and (6) of subsection (m) shall apply for purposes of 
        this subsection.
          ``(23) For the purposes of challenging the 
        eligibility of a small business concern to receive an 
        award under section 8(a), 8(m), 31(b)(2)(A), 
        31(b)(2)(B), 36(a), or 36(b), the term `interested 
        party' shall include any small business concern.''.
  In section 8(m)(4) of the Small Business Act as proposed to 
be added by section 301, strike subparagraph (B) and insert the 
following:
                  ``(B) Underrepresented industries.--Until 
                such time as the Administrator completes the 
                identification of industries required by 
                subparagraph (A), the following industries, as 
                identified by their 2-Digit North American 
                Industry Classification System Code, are deemed 
                underrepresented by women in Federal 
                contracting: 11 (Forestry), 21 (Mining), 22 
                (Utilities), 23 (Construction), 31 
                (Manufacturing), 32 (Manufacturing), 33 
                (Manufacturing), 42 (Wholesale Trade), 44 
                (Retail Trade), 45 (Retail Trade), 48 
                (Transportation), 49 (Transportation), 51 
                (Information), 52 (Finance and Insurance), 53 
                (Real Estate and Rental and Leasing), 54 
                (Professional, Scientific, and Technical 
                Services), 56 (Administrative and Support, 
                Waste Management, and Remediation Services), 61 
                (Education Services), 62 (Health Care and 
                Social Assistance), 71 (Arts, Entertainment, 
                and Recreation), 72 (Accommodation and Food 
                Services), and 81 (Other Services).''.
  Strike sections 403 and 504.
                              ----------                              


 2. An Amendment To Be Offered by Representative Akin of Missouri, or 
                 His Designee, Debatable for 10 Minutes

  At the end of title V, add the following new section (and 
amend the table of contents accordingly):

SEC. 505. ASSISTANCE STUDY.

  (a) Study.--The Administrator of the Small Business 
Administration shall conduct a study to determine what changes 
would be required to provide greater Federal contracting 
assistance to participants in the program created by section 
8(a) of the Small Business Act that have less equity in their 
business concerns than other participants in the program.
  (b) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of 
Representatives a report detailing the results of the study 
described in subsection (a).
                              ----------                              


 3. An Amendment To Be Offered by Representative Welch of Vermont, or 
                 His Designee, Debatable for 10 Minutes

  Title IV, add at the end the following (and amend the table 
of contents accordingly):

SEC. __. STUDY ON EFFECTIVENESS OF HUBZONE PROGRAM IN REACHING RURAL 
                    AREAS.

  The Administrator of the Small Business Administration shall 
carry out a study on the effectiveness of the HUBZone program 
in reaching rural areas to determine whether there are needy 
areas that do not qualify under the program and whether there 
are areas that currently qualify under the program that are 
inconsistent with the program's original intent. Not later than 
6 months after the date of the enactment of this Act, the 
Administrator shall submit to Congress a report containing the 
results of the study and any recommendations that the 
Administrator considers appropriate for alternative ways to 
evaluate eligibility for HUBZones in rural areas.
                              ----------                              


4. An Amendment To Be Offered by Representative Mica of Florida, or His 
                   Designee, Debatable for 10 Minutes

  Add at the end of title VI the following (and amend the table 
of contents accordingly):

SEC. ___. CLARIFICATION OF APPLICABILITY OF SMALL BUSINESS SET-ASIDES.

  Section 15 of the Small Business Act (15 U.S.C. 644) is 
amended by adding at the end the following:
  ``(q) Clarification of Applicability.--For purposes of any 
small business set-asides authorized under this section, the 
term `contract' shall not exclude any acquisition or order 
under any Federal Supply Schedule or Multiple Award 
Schedule.''.
                              ----------                              


5. An Amendment To Be Offered by Representative Mica of Florida, or His 
                   Designee, Debatable for 10 Minutes

  At the end of title VI, add the following (and amend the 
table of contents accordingly):

SEC. ___. SENSE OF THE HOUSE OF REPRESENTATIVES ON ACQUISITIONS 
                    CONDUCTED UNDER THE GENERAL SERVICES 
                    ADMINISTRATION'S FEDERAL SUPPLY SCHEDULE.

  (a) Findings.--Congress finds the following:
          (1) The Small Business Act was adopted by Congress to 
        ensure that small business concerns receive fair access 
        to, and a fair share of, Federal government contracts 
        and subcontracts.
          (2) There is a disagreement between the General 
        Services Administration and the Small Business 
        Administration on whether the Small Business Act 
        applies to the acquisitions under the General Services 
        Administration's Federal Supply Schedule, which account 
        for over $30,000,000,000 in procurement dollars awarded 
        each year.
          (3) As demonstrated in proceedings of the White House 
        Acquisition Advisory Panel, small businesses hold 79.6 
        percent of contracts under the Federal Supply Schedule, 
        but receive only 37.1 percent of dollars awarded under 
        the Federal Supply Schedule, and this disparity has a 
        significant impact on the competitive viability of 
        small business concerns in government contracting.
  (b) Sense of the House.--Therefore, it is the sense of the 
House of Representatives that small business set-asides should 
not be excluded from any acquisitions under the General 
Services Administration's Federal Supply Schedule.
                              ----------                              


 6. An Amendment To Be Offered by Representative Moran of Virginia, or 
                 His Designee, Debatable for 10 Minutes

  Title VI, add at the end the following (and amend the table 
of contents accordingly):

SEC. __. STUDY ON FRIVOLOUS PROTESTS.

  (a) Study.--The Administrator of the Small Business 
Administration shall conduct a study to determine, with respect 
to small business contracts, whether incumbent Federal 
contractors submit frivolous protests to extend the length of 
current contracts before protest decisions are resolved.
  (b) Contents.--In conducting the study, the Administrator 
shall--
          (1) determine the number of Government Accountability 
        Office bid protests and Small Business Administration 
        size protests filed by incumbent Federal contractors 
        with respect to small business contracts, the number of 
        incumbent contracts extended because of the protest, 
        the extra costs of extending incumbent contracts during 
        the protest, and the final rulings of these protests;
          (2) determine the financial impact of protests filed 
        by incumbent Federal contractors on small businesses 
        that were originally awarded the protested small 
        business contracts, including costs associated with 
        defending the protests and costs incurred by Federal 
        agencies;
          (3) identify the incumbent Federal contractors that 
        file the most unsuccessful protests on small business 
        contracts; and
          (4) develop recommendations--
                  (A) to ease any financial burden on small 
                businesses during the protest of small business 
                contracts; and
                  (B) to discourage frivolous protests by 
                incumbent Federal contractors on small business 
                contracts.
  (c) Consultation.--In conducting the study, the Administrator 
shall consult with the Government Accountability Office, any 
necessary Federal agencies, and the Office of Federal 
Procurement Policy.
  (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Administrator shall submit to 
Congress a report on the results of the study, together with 
the recommendations developed under subsection (b)(4).
                              ----------                              


7. An Amendment To Be Offered by Representative Baird of Washington, or 
                 His Designee, Debatable for 10 Minutes

  At the end of title V, insert the following new section (and 
amend the table of contents accordingly):

SEC. 505. EXAMINATION OF LIST OF GROUPS THE MEMBERS OF WHICH ARE 
                    PRESUMED TO BE SOCIALLY DISADVANTAGED FOR PURPOSES 
                    OF SMALL DISADVANTAGED BUSINESS PROGRAM.

  The Administrator of the Small Business Administration shall 
examine the list of groups the members of which are presumed to 
be socially disadvantaged for purposes of the Small 
Disadvantaged Business program under section 8(a) of the Small 
Business Act and shall consider whether the list should be 
updated to include additional groups. Not later than 6 months 
after the date of the enactment of this Act, the Administrator 
shall submit to Congress a report on the results of the 
examination.
                              ----------                              


8. An Amendment To Be Offered by Representative Brown-Waite of Florida, 
               or Her Designee, Debatable for 10 Minutes

  At the end of title VI, add the following new section (and 
amend the table of contents accordingly):

SEC. 602. SMALL BUSINESS ADMINISTRATION LIAISON.

  (a) Establishment.--The Administrator of the Small Business 
Administration shall create a liaison position whose duty it is 
to ensure that section 2(i) of the Small Business Act is 
carried out.
  (b) Functions.--In carrying out the duty described in 
subsection (a), the liaison shall consult with the Assistant 
Secretary of the Department of Homeland Security for United 
States Immigration and Customs Enforcement.
                              ----------                              


9. An Amendment To Be Offered by Representative Gillibrand of New York, 
               or Her Designee, Debatable for 10 Minutes

  At the end of title II, add the following (and amend the 
table of contents accordingly):

SEC. ___. PROHIBITION ON CONTRACT AWARDS TO CONTRACTORS IN VIOLATION OF 
                    IMMIGRATION LAWS.

  Any employer found, based on a determination by the Secretary 
of Homeland Security or the Attorney General to have engaged in 
a pattern or practice of hiring, recruiting or referring for a 
fee, for employment in the United States an alien knowing the 
person is an unauthorized alien shall be subject to debarment 
from the receipt of future Federal contracts under this Act.
                              ----------                              


 10. An Amendment To Be Offered by Representative Lampson of Texas, or 
                 His Designee, Debatable for 10 Minutes

  At the end of title VI, add the following:

SEC. __. PROHIBITION ON BUSINESS-CLASS OR FIRST-CLASS AIRLINE TRAVEL.

  In carrying out the provisions of the Small Business 
Contracting Program Improvements Act, the Small Business 
Administrator or any employee may not purchase business-class 
or first-class airline travel in contravention of sections 301-
10.122 through 301.10-124 of title 41, Code of Federal 
Regulations.

                                  
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