[House Report 115-944]
[From the U.S. Government Publishing Office]


115th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {      115-944

======================================================================



 
 CLARITY ON SMALL BUSINESS PARTICIPATION IN CATEGORY MANAGEMENT ACT OF 
                                  2018

                                _______
                                

 September 12, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Chabot, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 6382]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 6382) to amend the Small Business Act to require the 
Administrator of the Small Business Administration to report 
certain information to the Congress and to the President, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................2
  II. Need for Legislation............................................2
 III. Hearings........................................................7
  IV. Committee Consideration.........................................7
   V. Committee Votes.................................................7
  VI. Section-by-Section of H.R. 6382.................................9
 VII. Congressional Budget Office Cost Estimate.......................9
VIII. Unfunded Mandates...............................................9
  IX. New Budget Authority, Entitlement Authority, and Tax Expenditure9
   X. Oversight Findings..............................................9
  XI. Statement of Constitutional Authority..........................10
 XII. Congressional Accountability Act...............................10
XIII. Federal Advisory Committee Act Statement.......................10
 XIV. Statement of No Earmarks.......................................10
  XV. Statement of Duplication of Federal Programs...................10
 XVI. Disclosure of Directed Rule Makings............................10
XVII. Performance Goals and Objectives...............................10
XVIII.Changes in Existing Law, Made by the Bill, As Reported.........10


    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Clarity on Small Business 
Participation in Category Management Act of 2018''.

SEC. 2. REPORTING.

  Section 15(h) of the Small Business Act (15 U.S.C. 644(h)) is amended 
by adding at the end the following:
          ``(4) Best in class small business participation reporting.--
                  ``(A) Addendum.--The Administrator, in addition to 
                the requirements under paragraph (2), shall include in 
                the report required by such paragraph, for each best in 
                class designation--
                          ``(i) the total amount of spending government 
                        wide in such designation;
                          ``(ii) the number of small business concerns 
                        awarded contracts and the dollar amount of 
                        contracts within such category awarded to each 
                        of the following--
                                  ``(I) HUBZone small business 
                                concerns;
                                  ``(II) small business concerns owned 
                                and controlled by women;
                                  ``(III) small business concerns owned 
                                and controlled by service-disabled 
                                veterans; and
                                  ``(IV) socially and economically 
                                disadvantaged small business concerns.
                  ``(B) Best in class.--The term `best in class' has 
                the meaning given to it by the Director of the Office 
                of Management and Budget.
                  ``(C) Effective date.--The Administrator shall be 
                required to report on the information described by 
                subparagraph (A) beginning on the date that such 
                information is available in the Federal Procurement 
                Data System, the System for Award Management, or any 
                successor to such systems.''.

                      I. Purpose and Bill Summary

    The purpose of H.R. 6382, the ``Clarity on Small Business 
Participation in Category Management Act of 2018,'' is to allow 
Congress to obtain critical information regarding the 
participation of small businesses in specially-designated 
multiple award contracts known as ``best-in-class'' contracts.
    H.R. 6382 requires the Small Business Administration (SBA) 
to report federal spending made through designated ``best-in-
class'' vehicles, and to report on the dollars awarded through 
these vehicles to small businesses. Additionally, the bill 
requires the SBA to report the dollar amount of contracts 
awarded to HUBZone, women-owned, service-disabled veteran-
owned, and socially and economically disadvantaged (also known 
as 8(a)) small businesses. The bill becomes effective on the 
date in which this information becomes available on the 
appropriate government run procurement tracking system.

                II. Background and Need for Legislation

    H.R. 6382 was introduced by Rep. Alma Adams (D-NC) and 
Chairman Steve Chabot (R-OH) on July 16, 2018. Background on 
each of the bill's provisions is provided below, along with an 
explanation of the need for legislation.

            A. CATEGORY MANAGEMENT--A HISTORICAL PERSPECTIVE

    The United States federal government is the single largest 
buyer in the world, spending over $300 billion on goods and 
services each year.\1\ Historically, the majority of common 
federal agency needs were acquired in a disaggregated manner, 
creating duplicative contracts with different requirements and 
prices.\2\ This fragmented purchasing approach resulted in 
inefficiencies that the Office of Management and Budget (OMB) 
has sought to mitigate for many years\3\ through government-
wide initiatives such as the Federal Strategic Sourcing 
Initiative (FSSI) and Category Management (CM). These 
procurement approaches attempted to eliminate redundancies, 
increase efficiency, and deliver value and savings to the 
taxpayer. Today, the Office of Federal Procurement Policy's 
(OFPP) primary goal through CM is to simplify federal 
contracting by ``leveraging common contracts and best practices 
to drive savings and maximize efficiencies.''\4\ While the goal 
is noble, the federal government has struggled in the past to 
reconcile implementing these initiatives while also maintaining 
the protections afforded to small businesses under the Small 
Business Act.
---------------------------------------------------------------------------
    \1\The White House, President's Management Agenda 36 (2018), 
available at https://www.whitehouse.gov/wp-content/uploads/2018/03/The-
Presidents-Management-Agenda.pdf.
    \2\Agencies have paid different prices for the same item, sometimes 
at as much as a 300% difference. Michelle E. Litteken, Category 
Management 101: What Every Contractor Needs to Know, Piliero Mazza 
(June 28, 2016), http://www.pilieromazza.com/blog/category-management-
101-what-every-contractor-needs-to-know.
    \3\Category Management, 81 Fed. Reg. 69,860 (Oct. 7, 2016).
    \4\Supra note 1.
---------------------------------------------------------------------------

a. Contract bundling and consolidation

    Several executive branch initiatives have promoted the use 
of contract bundling and consolidation in past years through 
initiatives such as FSSI and CM.\5\ As previously examined by 
this Committee,\6\ unjustified contract bundling\7\ and 
consolidation\8\ remain among the greatest challenges for small 
businesses wishing to compete in the federal marketplace.\9\ 
Contract bundling or consolidation occurs when several 
separate, smaller contracts are combined into one unnecessarily 
large contract, often with numerous and complex contract 
requirements.\10\ While in some cases the benefits of bundling 
and consolidation justify this procurement strategy, in others 
it simply limits competition to the detriment of small firms. 
This results in a decline in the number of small businesses 
choosing to do business with the federal government. Thus, 
contract bundling is a key issue for the health of the 
industrial base.
---------------------------------------------------------------------------
    \5\For a historical look at FSSI and category management, please 
refer to: Contracting and the Industrial Base II: Bundling, Goaling, 
and the Office of Hearings and Appeals: Hearing Before the Subcomm. on 
Contracting and Workforce, 114th Cong. 7-17 (2015).
    \6\The Committee has a long history of oversight with respect to 
contract bundling. Throughout several Congresses, the Committee has 
held a number of hearings on contract bundling, submitted letters 
objecting to various procurement strategies that bundle contracts, and 
met with procurement officials to express concerns over these 
contracting strategies and how they may interfere with objectives to 
expand procurement opportunities for small businesses. Several 
legislative efforts have been undertaken to pursue common sense reforms 
on bundling and consolidation.
    \7\The Small Business Act (the Act) defines contract bundling as 
``consolidating 2 or more procurement requirements for goods or 
services previously provided or performed under separate smaller 
contracts into a solicitation of offers for a single contract that is 
likely to be unsuitable for award to a small-business concern.'' 15 
U.S.C. 632(o)(2).
    \8\A consolidated contract is one that satisfies ``2 or more 
requirements of the Federal agency for goods or services that have been 
provided to or performed for the Federal agency under 2 or more 
separate contracts lower in cost than the total cost'' of the new 
contract. 15 U.S.C. 657q(a)(2). The key distinction between contract 
bundling and contract consolidation is that consolidation does not 
require a finding that a contract will not be suitable for award to 
small business. Therefore, a contract may be consolidated but not 
bundled, but all bundled contracts are consolidated.
    \9\Supra note 5.
    \10\Contract bundling and consolidation, although used in tandem 
throughout this memorandum, are different. For an analysis of the 
difference between bundling and consolidation, please refer to: 
Bungling Bundling: How Contract Bundling and Consolidation Remain 
Challenges to Small Business Success: Hearing Before the Subcomm. on 
Contracting and Workforce, 113th Cong. (2013).
---------------------------------------------------------------------------

b. A brief history of category management

    The transition from strategic sourcing to category 
management as a more holistic approach to procurement began in 
2014 when the OFPP announced the intention to begin ``buying as 
one through category management.''\11\ The CM approach would 
allow procurement personnel to pay more attention to the data 
behind how they spend and what they buy. However, the lack of 
mechanisms for new entrants into the market and limiting the 
number of companies able to compete still retained the risks 
inherent in bundling and consolidation.
---------------------------------------------------------------------------
    \11\OFPP, Transforming the Marketplace: Simplifying Federal 
Procurement to Improve Performance, Drive Innovation and Increase 
Savings 2 (Dec. 4, 2014), available at http://www.whitehouse.gov/sites/
default/files/omb/procurement/memo/simplifying-federal-procurement-to-
improve-performance-drive-innovation-increase-savings.pdf.
---------------------------------------------------------------------------
    The 2016 OMB Circular,\12\ published at the end of the 
previous Administration, proposed to ``establish a government-
wide approach to acquiring common goods and services'' and 
``promote, to the fullest extent possible, maximum adoption of 
category management principles, strategies, and 
requirements.''\13\ Additionally, the Circular prescribed the 
designation and use of Best-In-Class (BIC) vehicles.\14\ BIC is 
a designation by OMB that a particular contract vehicle is a 
``preferred government-wide solution''\15\ and are 
``recommended--and in some cases required--for use.''\16\ The 
Circular does acknowledge that increasing small business 
participation in the CM initiative is a priority, promising to 
monitor small business participation and meet or exceed 
baseline small business use under the current procurement 
framework.\17\ However, due to the nature of CM as a 
procurement strategy, ensuring the health of the small business 
industrial base would be difficult to achieve, as will be 
described later in this memorandum.
---------------------------------------------------------------------------
    \12\Supra note 3.
    \13\Supra note 3.
    \14\Supra note 3.
    \15\According to the GSA, BIC ``allows acquisition experts to take 
advantage of pre-vetted, government-wide solutions; supports a 
government-wide migration to solutions that are mature and market-
proven; assists in the optimization of spend, within the government-
wide category management framework; and increase the transactional data 
available for agency level and government-wide analysis of buying 
behavior.'' GSA, Best-In-Class, available at https://www.gsa.gov/
acquisition/category-management/bestinclass.
    \16\GSA, Government-Wide Category Management: Best-In-Class & Spend 
Under Management, available at https://www.gsa.gov/cdnstatic/
BIC_%26_SUM_One-pager_252018.pdf.
    \17\Id.
---------------------------------------------------------------------------

                 B. CATEGORY MANAGEMENT IN THE PRESENT

    The President's Management Agenda (PMA) published on March 
20, 2018, specifically identifies CM as the preferred approach 
to ``leverage common contracts and best practices to drive 
savings and efficiencies.''\18\ The strategies outlined by the 
PMA CM solution identify four key actions, including the 
``establishment of annual goals to leverage common contract 
solutions while meeting small business and other statutory 
socio-economic goals.''\19\ The current approach utilizes a 
tiered, ``spend under management'' (SUM) approach that includes 
three tiers of spending, organized from tier 0 (one-to-one 
contracts categorized as unaligned spend) up to tier 3, or 
``best-in-class'' solutions (government-wide multiple-award 
contracts meeting OMB's strict best-in-class criteria).
---------------------------------------------------------------------------
    \18\Supra note 1.
    \19\Supra note 1.
---------------------------------------------------------------------------
    Targets for FY18 as established by the President's 
Management Council directed agencies to ``(i) decrease their 
unaligned spend [Tier 0] by 20 percent and (ii) increase the 
use of BICs to 35 percent of spend [move spend from Tiers 1 & 2 
up to Tier 3] that could suitably be made through those 
vehicles.''\20\ There is no indication at this time whether 
these targets will grow in later years, further decreasing Tier 
0 spend while pushing a significant portion of contracting 
activity to Tier 3; however, it remains a possibility.
---------------------------------------------------------------------------
    \20\Office of Federal Procurement Policy, Harmonizing Category 
Management & Small Business Goals 9 (May 24, 2018).
---------------------------------------------------------------------------
    Furthermore, the federal government currently applies 
category management principles to 42 percent of its good and 
services spending through the use of common contracts (MACs and 
GWACs at tiers 1-3).\21\ The goal, by fiscal year 2020, is to 
increase this amount to 70 percent,\22\ which would mean that 
the vast majority of federal spend would be managed using CM 
principles.
---------------------------------------------------------------------------
    \21\Supra note 1, at 37.
    \22\Supra note 1, at 37.
---------------------------------------------------------------------------

    C. POTENTIAL IMPLICATIONS FOR SMALL BUSINESS AND THE SHRINKING 
                            INDUSTRIAL BASE

    The industrial base has been trending downward. Even though 
the federal government has met its small business goal for 
several consecutive years, some research indicates that 
contract consolidation efforts by the federal government 
contributed to a quarter of small prime contractors 
disappearing from the federal marketplace since 2010, even 
while the total dollar amount awarded to small businesses 
remained level.\23\ This data implies that the government's 
focus on total contract dollars going to small businesses may 
be misguided; attention should also be paid to the number of 
businesses in the marketplace.
---------------------------------------------------------------------------
    \23\Jason Miller, Number of Small Business Prime Contractors Down 
by 25 Percent Since 2010, FED. News Radio (Oct. 16, 2017), https://
federalnewsradio.com/reporters-notebook-jason-miller/2017/10/number-of-
small-business-prime-contractors-down-by-25-percent-since-2010/.
---------------------------------------------------------------------------

a. Potential impact of targeted reductions in tier 0 spend

    There is a perception among the small business community 
that as the federal government prioritizes streamlining 
acquisitions to achieve price reductions, the number of 
solicitations appropriate for small businesses continues to 
shrink.\24\ OMB is promoting spending at the higher tiers, 
disincentivizing spending at Tier 0, which is where many one-
on-one small business contracts reside (i.e., through set-
asides and contracts below the simplified acquisition 
threshold); thus, these targets may result in a decline in 
opportunities and contract dollars for small firms. In addition 
to the 20 percent target reduction in unaligned spend (Tier 0), 
another target set by the Administration is a 13 percent 
reduction of contracts by 2020 out of the 425,000 contracts 
that are within Tier 0.\25\ While there is no confirmation that 
OFPP is moving to further increase these targets in future 
years, the current strategy appears to encourage overall 
reductions in Tier 0 spending and thus, small business 
contracts.
---------------------------------------------------------------------------
    \24\Supra note 10, (statement of Juanita H. Beauford, President, 
Assoc. of Procurement Technical Assistance Centers).
    \25\Supra note 35.
---------------------------------------------------------------------------

b. Potential impact of increasing use of Tier 3 BICs to 35 percent

    The use of the GSA Schedules and certain GWACs are an 
attractive option for small businesses as these contract 
vehicles have made increasingly diligent efforts to include 
small businesses in their portfolio.\26\ Currently, there are 
thousands of MACs and GWACs in the federal marketplace\27\ and 
only a handful of BICs (in FY17 there were 26 BICs\28\). While 
there may be an excess of MACs and GWACs, the targeted 35 
percent increase in Tier 3 FY18 spending scales back the use of 
huge numbers of non-BIC MACs and GWACs, which will have a 
significant impact on the federal contracting market, 
particularly for those that were not ``lucky'' enough to have 
won a spot on a BIC.\29\
---------------------------------------------------------------------------
    \26\Aaron Boyd, OMB Memo Ushers Major Shift in Federal Procurement, 
Fed. Times (Oct. 20, 2015), https://www.federaltimes.com/acquisition/
2015/10/20/omb-memo-ushers-major-shift-in-federal-procurement/.
    \27\Supra note 40.
    \28\Supra note 30, at 10.
    \29\Supra note 42.
---------------------------------------------------------------------------
    Therefore, not only does it matter if a small business wins 
a spot on a MAC or GWAC; there is mounting pressure to win 
spots on the right contract, Tier 3 BICs. Particularly with the 
target 35 percent increase in Tier 3 spending, GWACs and MACs 
at lower tiers could become less attractive options for 
contracting officers striving to meet that 35 percent goal. 
Unfortunately, the implication is that for small businesses 
that have already spent the time and resources competing for 
positions on GWACs and MACs at lower tiers, their investment 
has become less valuable.

          D. SMALL BUSINESS INVOLVEMENT IN CATEGORY MANAGEMENT

    The President's Management Agenda requires agencies to: 1) 
continue to meet or exceed their small business goals; and 2) 
meet their CM targets.\30\ Similarly to the way in which SBA 
negotiates specific small business goals with each agency 
individually, OFPP intends to tailor CM solutions to suit each 
individual agency based on their baseline contracting 
activities and needs, however, they are still expected to bring 
their spend under management.\31\ While these are positive 
steps recognizing the importance of small businesses, Office of 
Small and Disadvantaged Business Utilization (OSDBU) directors 
have raised concerns whether category management and small 
business as a socioeconomic policy can successfully coexist. 
Furthermore, OFPP's CM strategy essentially requires agencies 
to spend target amounts through specific vehicles. This may 
minimize agencies' flexibility in using the best procurements 
suitable for their particular needs, which may impede agencies 
from meeting their missions.
---------------------------------------------------------------------------
    \30\Supra note 30, at 8.
    \31\Supra note 30, at 12.
---------------------------------------------------------------------------
    Even though SBA and OSDBUs are involved in CM 
implementation, there is still significant concern among the 
small business community that these policies will significantly 
reduce the small business contracting workforce. H.R. 6382 
takes an important first step, requiring the collection of 
critical data which will be used as the basis to determine if 
CM will have a negative impact on the industrial base.

                             III. Hearings

    In the 115th Congress, the Committee held a hearing 
examining the issues covered in H.R. 6382. On June 13, 2018, 
the Committee on Small Business met for a hearing titled ``The 
Impact of Category Management on the Small Business Industrial 
Base.'' This hearing continued the Committee's longstanding 
oversight over the use of contract bundling and consolidation 
in the federal procurement system by scrutinizing the 
Administration's approach to utilizing category management 
principles. These category management principles were examined 
in the context of past Executive Branch initiatives and 
discussed the impact the current approach may have on small 
businesses and the industrial base. Witnesses included subject 
matter experts representing the HUBZone Contractors National 
Council, Professional Services Council, National Defense 
Industrial Association, and the U.S. Women's Chamber of 
Commerce.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on July 18, 2018 and ordered H.R. 6382 
favorably reported to the House. During the markup, one 
amendment was offered.
    Amendment Number One was offered by Rep. Stephanie Murphy 
of Florida. This amendment clarified that the bill becomes 
effective when the information required to be reported becomes 
available on a federal procurement tracking system. The 
amendment passed by voice vote at 11:57 am.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 6382 to the House at 11:58 am.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

              VI. Section-by-Section Analysis of H.R. 6382


Section 1. Short title

    This section designates the short title as the ``Clarity on 
Small Business Participation in Category Management Act of 
2018''.

Section 2. Reporting

    This section amends Section 15(h) of the Small Business 
pertaining to the small business goaling report by adding a new 
section requiring the Small Business Administration report on 
the total amount of spending government wide through contract 
vehicles designated as ``best-in-class,'' as defined by the 
Office of Management and Budget, including spending broken down 
by each of the socioeconomic categories: HUBZone small business 
concerns, women-owned small business concerns, service-disabled 
veteran-owned small business concerns, and socially and 
economically disadvantaged (otherwise known as 8(a)) small 
business concerns. This reporting requirement becomes effective 
when the information becomes available on a federal procurement 
tracking system.

             VII. Congressional Budget Office Cost Estimate

    At the time H.R. 6382 was reported to the House, the 
Congressional Budget Office had not provided a cost estimate.

                        VIII. Unfunded Mandates

    H.R. 6382 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act, Public 
Law No. 104-4, and would impose no costs on state, local, or 
tribal governments.

 IX. New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House, the Committee provides the following opinion and 
estimate with respect to new budget authority, entitlement 
authority, and tax expenditures. While the Committee has not 
received an estimate of new budget authority contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to Sec. 402 of the Congressional Budget 
Act of 1974, the Committee does not believe that there will be 
any additional costs attributable to this legislation. H.R. 
6382 does not direct new spending, but instead reallocates 
funding independently authorized and appropriated.

                         X. Oversight Findings

    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House, the oversight findings and recommendations of the 
Committee on Small Business with respect to the subject matter 
contained in H.R. 6382 are incorporated into the descriptive 
portions of this report.

               XI. Statement of Constitutional Authority

    Pursuant to clause 7 of rule XII of the Rules of the House, 
the Committee finds that the authority for this legislation in 
Art. I, Sec. 8, cl.1.

                  XII Congressional Accountability Act

    H.R. 6382 does not relate to the terms and conditions of 
employment or access to public services or accommodations 
within the meaning of Sec. 102(b)(3) of Public Law No. 104-1.

             XIII. Federal Advisory Committee Act Statement

    H.R. 6382 does not establish or authorize the establishment 
of any new advisory committees as that term is defined in the 
Federal Advisory Committee Act, 5 U.S.C. App.2.

                     XIV. Statement of No Earmarks

    Pursuant to clause 9 of rule XXI, H.R. 6382 does not 
contain any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in subsections (d), (e), or 
(f) of clause 9 of rule XXI of the Rules of the House.

            XV. Statement of Duplication of Federal Programs

    Pursuant to clause 3 of rule XIII of the Rules of the 
House, no provision of H.R. 6382 establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the United States Government Accountability Office 
pursuant to Sec. 21 of Pub. L. No. 111-139, or a program 
related to a program identified in the most recent catalog of 
federal domestic assistance.

                XVI. Disclosure of Directed Rulemakings

    Pursuant to clause 3 of the rule XIII of the Rules of the 
House, H.R. 6382 does not direct any rulemaking.

                 XVII. Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
          H.R. 6382 requires the SBA to report on small 
        business dollars spent through multiple award contract 
        vehicles specially designated as ``best-in-class'' or 
        otherwise by the Office of Management and Budget. The 
        objective is collect critical information regarding the 
        participation of small businesses in these contract 
        vehicles as these contract vehicles become increasingly 
        utilized among federal agencies.

      XVIII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause (E) of rule XIII of the Rules of 
the House, changes in existing law made by the bill, as 
reported, are shown as follows: existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                           SMALL BUSINESS ACT




           *       *       *       *       *       *       *
  Sec. 15.
  (a) Small Business Procurements.--
          (1) In general.--For purposes of this Act, small 
        business concerns shall receive any award or contract 
        if such award or contract is, in the determination of 
        the Administrator and the contracting agency, in the 
        interest of--
                  (A) maintaining or mobilizing the full 
                productive capacity of the United States;
                  (B) war or national defense programs; or
                  (C) assuring that a fair proportion of the 
                total purchases and contracts for goods and 
                services of the Government in each industry 
                category (as defined under paragraph (2)) are 
                awarded to small business concerns.
          (2) Industry category defined.--
                  (A) In general.--In this subsection, the term 
                ``industry category'' means a discrete group of 
                similar goods and services, as determined by 
                the Administrator in accordance with the North 
                American Industry Classification System codes 
                used to establish small business size 
                standards, except that the Administrator shall 
                limit an industry category to a greater extent 
                than provided under the North American Industry 
                Classification System codes if the 
                Administrator receives evidence indicating that 
                further segmentation of the industry category 
                is warranted--
                          (i) due to special capital equipment 
                        needs;
                          (ii) due to special labor 
                        requirements;
                          (iii) due to special geographic 
                        requirements, except as provided in 
                        subparagraph (B);
                          (iv) due to unique Federal buying 
                        patterns or requirements; or
                          (v) to recognize a new industry.
                  (B) Exception for geographic requirements.--
                The Administrator may not further segment an 
                industry category based on geographic 
                requirements unless--
                          (i) the Government typically 
                        designates the geographic area where 
                        work for contracts for goods or 
                        services is to be performed;
                          (ii) Government purchases comprise 
                        the major portion of the entire 
                        domestic market for such goods or 
                        services; and
                          (iii) it is unreasonable to expect 
                        competition from business concerns 
                        located outside of the general 
                        geographic area due to the fixed 
                        location of facilities, high 
                        mobilization costs, or similar economic 
                        factors.
          (3) Determinations with respect to awards or 
        contracts.--Determinations made pursuant to paragraph 
        (1) may be made for individual awards or contracts, any 
        part of an award or contract or task order, or for 
        classes of awards or contracts or task orders.
          (4) Increasing prime contracting opportunities for 
        small business concerns.--
                  (A) Description of covered proposed 
                procurements.--The requirements of this 
                paragraph shall apply to a proposed procurement 
                that includes in its statement of work goods or 
                services currently being supplied or performed 
                by a small business concern and, as determined 
                by the Administrator--
                          (i) is in a quantity or of an 
                        estimated dollar value which makes the 
                        participation of a small business 
                        concern as a prime contractor unlikely;
                          (ii) in the case of a proposed 
                        procurement for construction, seeks to 
                        bundle or consolidate discrete 
                        construction projects; or
                          (iii) is a solicitation that involves 
                        an unnecessary or unjustified bundling 
                        of contract requirements.
                  (B) Notice to procurement center 
                representatives.--With respect to proposed 
                procurements described in subparagraph (A), at 
                least 30 days before issuing a solicitation and 
                concurrent with other processing steps required 
                before issuing the solicitation, the 
                contracting agency shall provide a copy of the 
                proposed procurement to the procurement center 
                representative of the contracting agency (as 
                described in subsection (l)) along with a 
                statement explaining--
                          (i) why the proposed procurement 
                        cannot be divided into reasonably small 
                        lots (not less than economic production 
                        runs) to permit offers on quantities 
                        less than the total requirement;
                          (ii) why delivery schedules cannot be 
                        established on a realistic basis that 
                        will encourage the participation of 
                        small business concerns in a manner 
                        consistent with the actual requirements 
                        of the Government;
                          (iii) why the proposed procurement 
                        cannot be offered to increase the 
                        likelihood of the participation of 
                        small business concerns;
                          (iv) in the case of a proposed 
                        procurement for construction, why the 
                        proposed procurement cannot be offered 
                        as separate discrete projects; or
                          (v) why the contracting agency has 
                        determined that the bundling of 
                        contract requirements is necessary and 
                        justified.
                  (C) Alternatives to increase prime 
                contracting opportunities for small business 
                concerns.--If the procurement center 
                representative believes that the proposed 
                procurement will make the participation of 
                small business concerns as prime contractors 
                unlikely, the procurement center 
                representative, within 15 days after receiving 
                the statement described in subparagraph (B), 
                shall recommend to the contracting agency 
                alternative procurement methods for increasing 
                prime contracting opportunities for small 
                business concerns.
                  (D) Failure to agree on an alternative 
                procurement method.--If the procurement center 
                representative and the contracting agency fail 
                to agree on an alternative procurement method, 
                the Administrator shall submit the matter to 
                the head of the appropriate department or 
                agency for a determination.
          (5) Contracts for sale of Government property.--With 
        respect to a contract for the sale of Government 
        property, small business concerns shall receive any 
        such contract if, in the determination of the 
        Administrator and the disposal agency, the award of 
        such contract is in the interest of assuring that a 
        fair proportion of the total sales of Government 
        property be made to small business concerns.
          (6) Sale of electrical power or other property.--
        Nothing in this subsection shall be construed to change 
        any preferences or priorities established by law with 
        respect to the sale of electrical power or other 
        property by the Federal Government.
          (7) Costs exceeding fair market price.--A contract 
        may not be awarded under this subsection if the cost of 
        the contract to the awarding agency exceeds a fair 
        market price.
  (b) With respect to any work to be performed the amount of 
which would exceed the maximum amount of any contract for which 
a surety may be guaranteed against loss under section 411 of 
the Small Business Investment Act of 1958 (15 U.S.C. 694(b)), 
the contracting procurement agency shall, to the extent 
practicable, place contracts so as to allow more than one small 
business concern to perform such work.
  (c)(1) As used in this subsection:
          (A) The term ``Committee'' means the Committee for 
        Purchase from the Blind and Other Severely Handicapped 
        established under the first section of the Act entitled 
        ``An Act to create a Committee on Purchases of Blind-
        made Products, and for other purposes'', approved June 
        25, 1938 (41 U.S.C. 46).
          (B) The term ``public or private organization for the 
        handicapped'' has the same meaning given such term in 
        section 3(e).
          (C) The term ``handicapped individual'' has the same 
        meaning given such term in section 3(f).
  (2)(A) During fiscal year 1995, public or private 
organizations for the handicapped shall be eligible to 
participate in programs authorized under this section in an 
aggregate amount not to exceed $40,000,000.
  (B) None of the amounts authorized for participation by 
subparagraph (A) may be placed on the procurement list 
maintained by the Committee pursuant to section 2 of the Act 
entitled ``An Act to create a Committee on Purchases of Blind-
made Products, and for other purposes'', approved June 25, 1938 
(41 U.S.C. 47).
  (3) The Administrator shall monitor and evaluate such 
participation.
  (4)(A) Not later than ten days after the announcement of a 
proposed award of a contract by an agency or department to a 
public or private organization for the handicapped, a for-
profit small business concern that has experienced or is likely 
to experience severe economic injury as the result of the 
proposed award may file an appeal of the proposed award with 
the Administrator.
  (B) If such a concern files an appeal of a proposed award 
under subparagraph (A) and the Administrator, after 
consultation with the Executive Director of the Committee, 
finds that the concern has experienced or is likely to 
experience severe economic injury as the result of the proposed 
award, not later than thirty days after the filing of the 
appeal, the Administration shall require each agency and 
department having procurement powers to take such action as may 
be appropriate to alleviate economic injury sustained or likely 
to be sustained by the concern.
  (5) Each agency and department having procurement powers 
shall report to the Office of Federal Procurement Policy each 
time a contract subject to paragraph (2)(A) is entered into, 
and shall include in its report the amount of the next higher 
bid submitted by a for-profit small business concern. The 
Office of Federal Procurement Policy shall collect data 
reported under the preceding sentence through the Federal 
procurement data system and shall report to the Administration 
which shall notify all such agencies and departments when the 
maximum amount of awards authorized under paragraph (2)(A) has 
been made during any fiscal year.
  (6) For the purpose of this subsection, a contract may be 
awarded only if at least 75 per centum of the direct labor 
performed on each item being produced under the contract in the 
sheltered workshop or performed in providing each type of 
service under the contract by the sheltered workshop is 
performed by handicapped individuals.
  (7) Agencies awarding one or more contracts to such an 
organization pursuant to the provisions of this subsection may 
use multiyear contracts, if appropriate.
  (d) For purposes of this section priority shall be given to 
the awarding of contracts and the placement of subcontracts to 
small business concerns which shall perform a substantial 
proportion of the production on those contracts and 
subcontracts within areas of concentrated unemployment or 
underemployment or within labor surplus areas. Notwithstanding 
any other provison of law, total labor surplus area set-asides 
pursuant to Defense Manpower Policy Number 4 (32A C.F.R. 
Chapter 1) or any successor policy shall be authorized if the 
Secretary or his designee specifically determines that there is 
a reasonable expectation that offers will be obtained from a 
sufficient number of eligible concerns so that awards will be 
made at reasonable prices. As soon as practicable and to the 
extent possible, in determining labor surplus areas, 
consideration shall be given to those persons who would be 
available for employment were suitable employment available. 
Until such definition reflects such number, the present 
criteria of such policy shall govern.
  (e) Procurement Strategies; Contract Bundling.--
          (1) In general.--To the maximum extent practicable, 
        procurement strategies used by a Federal department or 
        agency having contracting authority shall facilitate 
        the maximum participation of small business concerns as 
        prime contractors, subcontractors, and suppliers, and 
        each such Federal department or agency shall--
                  (A) provide opportunities for the 
                participation of small business concerns during 
                acquisition planning processes and in 
                acquisition plans; and
                  (B) invite the participation of the 
                appropriate Director of Small and Disadvantaged 
                Business Utilization in acquisition planning 
                processes and provide that Director access to 
                acquisition plans.
          (2) Market research.--
                  (A) In general.--Before proceeding with an 
                acquisition strategy that could lead to a 
                contract containing consolidated procurement 
                requirements, the head of an agency shall 
                conduct market research to determine whether 
                consolidation of the requirements is necessary 
                and justified.
                  (B) Factors.--For purposes of subparagraph 
                (A), consolidation of the requirements may be 
                determined as being necessary and justified if, 
                as compared to the benefits that would be 
                derived from contracting to meet those 
                requirements if not consolidated, the Federal 
                Government would derive from the consolidation 
                measurably substantial benefits, including any 
                combination of benefits that, in combination, 
                are measurably substantial. Benefits described 
                in the preceding sentence may include the 
                following:
                          (i) Cost savings.
                          (ii) Quality improvements.
                          (iii) Reduction in acquisition cycle 
                        times.
                          (iv) Better terms and conditions.
                          (v) Any other benefits.
                  (C) Reduction of costs not determinative.--
                The reduction of administrative or personnel 
                costs alone shall not be a justification for 
                bundling of contract requirements unless the 
                cost savings are expected to be substantial in 
                relation to the dollar value of the procurement 
                requirements to be consolidated.
          (3) Strategy specifications.--If the head of a 
        contracting agency determines that an acquisition plan 
        for a procurement involves a substantial bundling of 
        contract requirements, the head of a contracting agency 
        shall publish a notice on a public website that such 
        determination has been made not later than 7 days after 
        making such determination. Any solicitation for a 
        procurement related to the acquisition plan may not be 
        published earlier than 7 days after such notice is 
        published. Along with the publication of the 
        solicitation, the head of a contracting agency shall 
        publish a justification for the determination, which 
        shall include the following information:
                  (A) The specific benefits anticipated to be 
                derived from the bundling of contract 
                requirements and a determination that such 
                benefits justify the bundling.
                  (B) An identification of any alternative 
                contracting approaches that would involve a 
                lesser degree of bundling of contract 
                requirements.
                  (C) An assessment of--
                          (i) the specific impediments to 
                        participation by small business 
                        concerns as prime contractors that 
                        result from the bundling of contract 
                        requirements; and
                          (ii) the specific actions designed to 
                        maximize participation of small 
                        business concerns as subcontractors 
                        (including suppliers) at various tiers 
                        under the contract or contracts that 
                        are awarded to meet the requirements.
          (4) Contract teaming.--
                  (A) In general.--In the case of a 
                solicitation of offers for a bundled or 
                consolidated contract that is issued by the 
                head of an agency, a small business concern 
                that provides for use of a particular team of 
                subcontractors or a joint venture of small 
                business concerns may submit an offer for the 
                performance of the contract.
                  (B) Evaluation of offers.--The head of the 
                agency shall evaluate an offer described in 
                subparagraph (A) in the same manner as other 
                offers, with due consideration to the 
                capabilities of all of the proposed 
                subcontractors or members of the joint venture 
                as follows:
                          (i) Teams.--When evaluating an offer 
                        of a small business prime contractor 
                        that includes a proposed team of small 
                        business subcontractors, the head of 
                        the agency shall consider the 
                        capabilities and past performance of 
                        each first tier subcontractor that is 
                        part of the team as the capabilities 
                        and past performance of the small 
                        business prime contractor.
                          (ii) Joint ventures.--When evaluating 
                        an offer of a joint venture of small 
                        business concerns, if the joint venture 
                        does not demonstrate sufficient 
                        capabilities or past performance to be 
                        considered for award of a contract 
                        opportunity, the head of the agency 
                        shall consider the capabilities and 
                        past performance of each member of the 
                        joint venture as the capabilities and 
                        past performance of the joint venture.
                  (C) Status as a small business concern.--
                Participation of a small business concern in a 
                team or a joint venture under this paragraph 
                shall not affect the status of that concern as 
                a small business concern for any other purpose.
  (f) Contracting Preference for Small Business Concerns in a 
Major Disaster Area.--
          (1) Definition.--In this subsection, the term 
        ``disaster area'' means the area for which the 
        President has declared a major disaster, during the 
        period of the declaration.
          (2) Contracting preference.--An agency shall provide 
        a contracting preference for a small business concern 
        located in a disaster area if the small business 
        concern will perform the work required under the 
        contract in the disaster area.
          (3) Credit for meeting contracting goals.--If an 
        agency awards a contract to a small business concern 
        under the circumstances described in paragraph (2), the 
        value of the contract shall be doubled for purposes of 
        determining compliance with the goals for procurement 
        contracts under subsection (g)(1)(A).
  (g)
          (1) Governmentwide goals.--
                  (A) Establishment.--The President shall 
                annually establish Governmentwide goals for 
                procurement contracts awarded to 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 in accordance with the 
                following:
                          (i) The Governmentwide goal for 
                        participation by small business 
                        concerns shall be established at not 
                        less than 23 percent of the total value 
                        of all prime contract awards for each 
                        fiscal year. In meeting this goal, the 
                        Government shall ensure the 
                        participation of small business 
                        concerns from a wide variety of 
                        industries and from a broad spectrum of 
                        small business concerns within each 
                        industry.
                          (ii) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        service-disabled veterans shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iii) The Governmentwide goal for 
                        participation by qualified HUBZone 
                        small business concerns shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iv) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals shall be established at not 
                        less than 5 percent of the total value 
                        of all prime contract and subcontract 
                        awards for each fiscal year.
                          (v) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by women 
                        shall be established at not less than 5 
                        percent of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                  (B) Achievement of governmentwide goals.--
                Each agency shall have an annual goal that 
                presents, for that agency, the maximum 
                practicable opportunity for 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 to participate in the 
                performance of contracts let by such agency. 
                The Small Business Administration and the 
                Administrator for Federal Procurement Policy 
                shall, when exercising their authority pursuant 
                to paragraph (2), insure that the cumulative 
                annual prime contract goals for all agencies 
                meet or exceed the annual Governmentwide prime 
                contract goal established by the President 
                pursuant to this paragraph.
  (2)(A) The head of each Federal agency shall, after 
consultation with the Administration, establish goals for the 
participation by small business concerns, by small business 
concerns owned and controlled by service-disabled veterans, by 
qualified HUBZone small business concerns, by small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and by small business concerns owned 
and controlled by women in procurement contracts of such 
agency. Such goals shall separately address prime contract 
awards and subcontract awards for each category of small 
business covered.
  (B) Goals established under this subsection shall be jointly 
established by the Administration and the head of each Federal 
agency and shall realistically reflect the potential 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 to perform such 
contracts and to perform subcontracts under such contracts.
  (C) Whenever the Administration and the head of any Federal 
agency fail to agree on established goals, the disagreement 
shall be submitted to the Administrator for Federal Procurement 
Policy for final determination.
  (D) After establishing goals under this paragraph for a 
fiscal year, the head of each Federal agency shall develop a 
plan for achieving such goals at both the prime contract and 
the subcontract level, which shall apportion responsibilities 
among the agency's acquisition executives and officials. In 
establishing goals under this paragraph, the head of each 
Federal agency shall make a consistent effort to annually 
expand participation by small business concerns from each 
industry category in procurement contracts and subcontracts of 
such agency, including participation by 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.
          (E) The head of each Federal agency, in attempting to 
        attain expanded participation under subparagraph (D), 
        shall consider--
                  (i) contracts awarded as the result of 
                unrestricted competition; and
                  (ii) contracts awarded after competition 
                restricted to eligible small business concerns 
                under this section and under the program 
                established under section 8(a).
          (F)(i) Each procurement employee or program manager 
        described in clause (ii) shall communicate to the 
        subordinates of the procurement employee or program 
        manager the importance of achieving goals established 
        under subparagraph (A).
                  (ii) A procurement employee or program 
                manager described in this clause is a senior 
                procurement executive, senior program manager, 
                or Director of Small and Disadvantaged Business 
                Utilization of a Federal agency having 
                contracting authority.
  (3) First tier subcontracts that are awarded by Management 
and Operating contractors sponsored by the Department of Energy 
to small business concerns, small businesses 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, shall be considered toward the annually established 
agency and Government-wide goals for procurement contracts 
awarded.
  (h) Reporting on Goals for Procurement Contracts Awarded to 
Small Business Concerns.--
          (1) Agency reports.--At the conclusion of each fiscal 
        year, the head of each Federal agency shall submit to 
        the Administrator a report describing--
                  (A) the extent of the participation by small 
                business concerns, small business concerns 
                owned and controlled by veterans (including 
                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 in the procurement contracts of such 
                agency during such fiscal year;
                  (B) whether the agency achieved the goals 
                established for the agency under subsection 
                (g)(2) with respect to such fiscal year;
                  (C) any justifications for a failure to 
                achieve such goals; and
                  (D) a remediation plan with proposed new 
                practices to better meet such goals, including 
                analysis of factors leading to any failure to 
                achieve such goals.
          (2) Reports by administrator.--Not later than 60 days 
        after receiving a report from each Federal agency under 
        paragraph (1) with respect to a fiscal year, the 
        Administrator shall submit to the President and 
        Congress, and to make available on a public Web site, a 
        report that includes--
                  (A) a copy of each report submitted to the 
                Administrator under paragraph (1);
                  (B) a determination of whether each goal 
                established by the President under subsection 
                (g)(1) for such fiscal year was achieved;
                  (C) a determination of whether each goal 
                established by the head of a Federal agency 
                under subsection (g)(2) for such fiscal year 
                was achieved;
                  (D) the reasons for any failure to achieve a 
                goal established under paragraph (1) or (2) of 
                subsection (g) for such fiscal year and a 
                description of actions planned by the 
                applicable agency to address such failure, 
                including the Administrator's comments and 
                recommendations on the proposed remediation 
                plan; and
                  (E) for the Federal Government and each 
                Federal agency, an analysis of the number and 
                dollar amount of prime contracts awarded during 
                such fiscal year to--
                          (i) small business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through unrestricted 
                                competition;
                                  (V) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns for purposes of the 
                                initial contract; and
                                  (VI) that were awarded using 
                                a procurement method that 
                                restricted competition to 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, small business 
                                concerns owned and controlled 
                                by women, or a subset of any 
                                such concerns;
                          (ii) small business concerns owned 
                        and controlled by service-disabled 
                        veterans--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by service-disabled veterans;
                                  (V) through unrestricted 
                                competition;
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by service-disabled veterans 
                                for purposes of the initial 
                                contract; and
                                  (VII) that were awarded using 
                                a procurement method that 
                                restricted competition to 
                                qualified HUBZone small 
                                business concerns, small 
                                business concerns owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals, small business 
                                concerns owned and controlled 
                                by women, or a subset of any 
                                such concerns;
                          (iii) qualified HUBZone small 
                        business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to qualified HUBZone 
                                small business concerns;
                                  (V) through unrestricted 
                                competition where a price 
                                evaluation preference was used;
                                  (VI) through unrestricted 
                                competition where a price 
                                evaluation preference was not 
                                used;
                                  (VII) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be qualified HUBZone 
                                small business concerns for 
                                purposes of the initial 
                                contract; and
                                  (VIII) that were awarded 
                                using a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals, 
                                small business concerns owned 
                                and controlled by women, or a 
                                subset of any such concerns;
                          (iv) small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged 
                        individuals--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition;
                                  (VI) by reason of that 
                                concern's certification as a 
                                small business owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals;
                                  (VII) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals for 
                                purposes of the initial 
                                contract; and
                                  (VIII) that were awarded 
                                using a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, qualified HUBZone 
                                small business concerns, small 
                                business concerns owned and 
                                controlled by women, or a 
                                subset of any such concerns;
                          (v) small business concerns owned by 
                        an Indian tribe (as such term is 
                        defined in section 8(a)(13)) other than 
                        an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by an Indian 
                                tribe other than an Alaska 
                                Native Corporation for purposes 
                                of the initial contract;
                          (vi) small business concerns owned by 
                        a Native Hawaiian Organization--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by a Native 
                                Hawaiian Organization for 
                                purposes of the initial 
                                contract;
                          (vii) small business concerns owned 
                        by an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by an Alaska 
                                Native Corporation for purposes 
                                of the initial contract; and
                          (viii) small business concerns owned 
                        and controlled by women--
                                  (I) in the aggregate;
                                  (II) through competitions 
                                restricted to small business 
                                concerns;
                                  (III) through competitions 
                                restricted using the authority 
                                under section 8(m)(2);
                                  (IV) through competitions 
                                restricted using the authority 
                                under section 8(m)(2) and in 
                                which the waiver authority 
                                under section 8(m)(3) was used;
                                  (V) through sole source 
                                contracts awarded using the 
                                authority under subsection 
                                8(m)(7);
                                  (VI) through sole source 
                                contracts awarded using the 
                                authority under section 
                                8(m)(8);
                                  (VII) by industry for 
                                contracts described in 
                                subclause (III), (IV), (V), or 
                                (VI);
                                  (VIII) through unrestricted 
                                competition;
                                  (IX) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by women for purposes of the 
                                initial contract; and
                                  (X) that were awarded using a 
                                procurement method that 
                                restricted competition to 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, or a subset of any 
                                such concerns; and
                  (F) for the Federal Government, the number, 
                dollar amount, and distribution with respect to 
                the North American Industry Classification 
                System of subcontracts awarded during such 
                fiscal year to 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, provided that such information is 
                publicly available through data systems 
                developed pursuant to the Federal Funding 
                Accountability and Transparency Act of 2006 
                (Public Law 109-282), or otherwise available as 
                provided in paragraph (3).
          (3) Procurement data.--
                  (A) Federal procurement data system.--
                          (i) In general.--To assist in the 
                        implementation of this section, the 
                        Administrator shall have access to 
                        information collected through the 
                        Federal Procurement Data System, 
                        Federal Subcontracting Reporting 
                        System, or any new or successor system.
                          (ii) GSA report.--On the date that 
                        the Administrator makes available the 
                        report required under paragraph (2), 
                        the Administrator of the General 
                        Services Administration shall submit to 
                        the President and Congress, and shall 
                        make available on a public website, a 
                        report in the same form and manner, and 
                        including the same information, as the 
                        report required under paragraph (2). 
                        The report shall include all 
                        procurements made for the period 
                        covered by the report and may not 
                        exclude any contract awarded.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administrator, 
                procurement information collected through 
                agency data collection sources in existence at 
                the time of the request. Contracting agencies 
                shall not be required to establish new data 
                collection systems to provide such data.
          (4) Best in class small business participation 
        reporting.--
                  (A) Addendum.--The Administrator, in addition 
                to the requirements under paragraph (2), shall 
                include in the report required by such 
                paragraph, for each best in class designation--
                          (i) the total amount of spending 
                        government wide in such designation;
                          (ii) the number of small business 
                        concerns awarded contracts and the 
                        dollar amount of contracts within such 
                        category awarded to each of the 
                        following--
                                  (I) HUBZone small business 
                                concerns;
                                  (II) small business concerns 
                                owned and controlled by women;
                                  (III) small business concerns 
                                owned and controlled by 
                                service-disabled veterans; and
                                  (IV) socially and 
                                economically disadvantaged 
                                small business concerns.
                  (B) Best in class.--The term ``best in 
                class'' has the meaning given to it by the 
                Director of the Office of Management and 
                Budget.
                  (C) Effective date.--The Administrator shall 
                be required to report on the information 
                described by subparagraph (A) beginning on the 
                date that such information is available in the 
                Federal Procurement Data System, the System for 
                Award Management, or any successor to such 
                systems.
  (i) Nothing in this Act or any other provision of law 
precludes exclusive small business set-asides for procurements 
of architectural and engineering services, research, 
development, test and evaluation, and each Federal agency is 
authorized to develop such set-asides to further the interests 
of small business in those areas.
  (j)(1) Each contract for the purchase of goods and services 
that has an anticipated value greater than the micro-purchase 
threshold, but not greater than the simplified acquisition 
threshold shall be reserved exclusively for small business 
concerns unless the contracting officer is unable to obtain 
offers from two or more small business concerns that are 
competitive with market prices and are competitive with regard 
to the quality and delivery of the goods or services being 
purchased.
  (2) In carrying out paragraph (1), a contracting officer 
shall consider a responsive offer timely received from an 
eligible small business offeror.
  (3) Nothing in paragraph (1) shall be construed as precluding 
an award of a contract with a value not greater than $100,000 
under the authority of subsection (a) of section 8 of this Act, 
section 2323 of title 10, United States Code, section 712 of 
the Business Opportunity Development Reform Act of 1988 (Public 
Law 100-656; 15 U.S.C. 644 note), or section 7102 of the 
Federal Acquisition Streamlining Act of 1994.
  (k) There is hereby established in each Federal agency having 
procurement powers an office to be known as the ``Office of 
Small and Disadvantaged Business Utilization''. The management 
of each such office shall be vested in an officer or employee 
of such agency, with experience serving in any combination of 
the following roles: program manager, deputy program manager, 
or assistant program manager for Federal acquisition program; 
chief engineer, systems engineer, assistant engineer, or 
product support manager for Federal acquisition program; 
Federal contracting officer; small business technical advisor; 
contracts administrator for Federal Government contracts; 
attorney specializing in Federal procurement law; small 
business liaison officer; officer or employee who managed 
Federal Government contracts for a small business; or 
individual whose primary responsibilities were for the 
functions and duties of section 8, 15, 31, 36, or 44 of this 
Act. Such officer or employee--
          (1) shall be known as the ``Director of Small and 
        Disadvantaged Business Utilization'' for such agency;
          (2) shall be appointed by the head of such agency to 
        a position that is a Senior Executive Service position 
        (as such term is defined under section 3132(a) of title 
        5, United States Code), except that, for any agency in 
        which the positions of Chief Acquisition Officer and 
        senior procurement executive (as such terms are defined 
        under section 44(a) of this Act) are not Senior 
        Executive Service positions, the Director of Small and 
        Disadvantaged Business Utilization may be appointed to 
        a position compensated at not less than the minimum 
        rate of basic pay payable for grade GS-15 of the 
        General Schedule under section 5332 of such title 
        (including comparability payments under section 5304 of 
        such title);
          (3) shall be responsible only to (including with 
        respect to performance appraisals), and report directly 
        and exclusively to, the head of such agency or to the 
        deputy of such head, except that the Director for the 
        Office of the Secretary of Defense shall be responsible 
        only to (including with respect to performance 
        appraisals), and report directly and exclusively to, 
        such Secretary or the Secretary's designee;
          (4) shall be responsible for the implementation and 
        execution of the functions and duties under sections 8, 
        15, 31, 36, and 44 of this Act which relate to such 
        agency;
          (5) shall identify proposed solicitations that 
        involve significant bundling of contract requirements, 
        and work with the agency acquisition officials and the 
        Administration to revise the procurement strategies for 
        such proposed solicitations where appropriate to 
        increase the probability of participation by small 
        businesses as prime contractors, or to facilitate small 
        business participation as subcontractors and suppliers, 
        if a solicitation for a bundled contract is to be 
        issued;
          (6) shall assist small business concerns to obtain 
        payments, required late payment interest penalties, or 
        information regarding payments due to such concerns 
        from an executive agency or a contractor, in conformity 
        with chapter 39 of title 31, United States Code, or any 
        other protection for contractors or subcontractors 
        (including suppliers) that is included in the Federal 
        Acquisition Regulation or any individual agency 
        supplement to such Government-wide regulation;
          (7) shall have supervisory authority over personnel 
        of such agency to the extent that the functions and 
        duties of such personnel relate to functions and duties 
        under sections 8, 15, 31, 36, and 44 of this Act;
          (8) shall assign a small business technical adviser 
        to each office to which the Administration has assigned 
        a procurement center representative--
                  (A) who shall be a full-time employee of the 
                procuring activity and shall be well qualified, 
                technically trained and familiar with the 
                supplies or services purchased at the activity; 
                and
                  (B) whose principal duty shall be to assist 
                the Administration procurement center 
                representative in his duties and functions 
                relating to sections 8, 15, 31, 36, and 44 of 
                this Act,
          (9) shall cooperate, and consult on a regular basis, 
        with the Administration with respect to carrying out 
        the functions and duties described in paragraph (4) of 
        this subsection;
          (10) shall make recommendations to contracting 
        officers as to whether a particular contract 
        requirement should be awarded pursuant to subsection 
        (a), section 8, 15, 31, or 36 of this Act, or section 
        2323 of title 10, United States Code, which shall be 
        made with due regard to the requirements of subsection 
        (m), and the failure of the contracting officer to 
        accept any such recommendations shall be documented and 
        included within the appropriate contract file;
          (11) shall review and advise such agency on any 
        decision to convert an activity performed by a small 
        business concern to an activity performed by a Federal 
        employee;
          (12) shall provide to the Chief Acquisition Officer 
        and senior procurement executive of such agency advice 
        and comments on acquisition strategies, market 
        research, and justifications related to section 44 of 
        this Act;
          (13) may provide training to small business concerns 
        and contract specialists, except that such training may 
        only be provided to the extent that the training does 
        not interfere with the Director carrying out other 
        responsibilities under this subsection;
          (14) shall receive unsolicited proposals and, when 
        appropriate, forward such proposals to personnel of the 
        activity responsible for reviewing such proposals;
          (15) shall carry out exclusively the duties 
        enumerated in this Act, and shall, while the Director, 
        not hold any other title, position, or responsibility, 
        except as necessary to carry out responsibilities under 
        this subsection;
          (16) shall submit, each fiscal year, to the Committee 
        on Small Business of the House of Representatives and 
        the Committee on Small Business and Entrepreneurship of 
        the Senate a report describing--
                  (A) the training provided by the Director 
                under paragraph (13) in the most recently 
                completed fiscal year;
                  (B) the percentage of the budget of the 
                Director used for such training in the most 
                recently completed fiscal year;
                  (C) the percentage of the budget of the 
                Director used for travel in the most recently 
                completed fiscal year; and
                  (D) any failure of the agency to comply with 
                section 8, 15, 31, or 36;
          (17) shall, when notified by a small business concern 
        prior to the award of a contract that the small 
        business concern believes that a solicitation, request 
        for proposal, or request for quotation unduly restricts 
        the ability of the small business concern to compete 
        for the award--
                  (A) submit the notice of the small business 
                concern to the contracting officer and, if 
                necessary, recommend ways in which the 
                solicitation, request for proposal, or request 
                for quotation may be altered to increase the 
                opportunity for competition;
                  (B) inform the advocate for competition of 
                such agency (as established under section 1705 
                of title 41, United States Code, or section 
                2318 of title 10, United States Code) of such 
                notice; and
                  (C) ensure that the small business concern is 
                aware of other resources and processes 
                available to address unduly restrictive 
                provisions in a solicitation, request for 
                proposal, or request for quotation, even if 
                such resources and processes are provided by 
                such agency, the Administration, the 
                Comptroller General, or a procurement technical 
                assistance program established under chapter 
                142 of title 10, United States Code;
          (18) shall review summary data provided by purchase 
        card issuers of purchases made by the agency greater 
        than the micro-purchase threshold (as defined under 
        section 1902 of title 41, United Stated Code) and less 
        than the simplified acquisition threshold to ensure 
        that the purchases have been made in compliance with 
        the provisions of this Act and have been properly 
        recorded in the Federal Procurement Data System, if the 
        method of payment is a purchase card issued by the 
        Department of Defense pursuant to section 2784 of title 
        10, United States Code, or by the head of an executive 
        agency pursuant to section 1909 of title 41, United 
        States Code;
          (19) shall provide assistance to a small business 
        concern awarded a contract or subcontract under this 
        Act or under title 10 or title 41, United States Code, 
        in finding resources for education and training on 
        compliance with contracting regulations (including the 
        Federal Acquisition Regulation) after award of such a 
        contract or subcontract; and
          (20) shall review all subcontracting plans required 
        by paragraph (4) or (5) of section 8(d) to ensure that 
        the plan provides maximum practicable opportunity for 
        small business concerns to participate in the 
        performance of the contract to which the plan applies.
This subsection shall not apply to the Administration.
  (l) Procurement Center Representatives.--
          (1) Assignment and role.--The Administrator shall 
        assign to each major procurement center a procurement 
        center representative with such assistance as may be 
        appropriate.
          (2) Activities.--A procurement center representative 
        is authorized to--
          (A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        as to whether requirements are to be procured through 
        other than full and open competition and make 
        recommendations with respect to such requirements to 
        the members of such conference or session;
                  (B) review, at any time, barriers to small 
                business participation in Federal contracting 
                previously imposed on goods and services 
                through acquisition method coding or similar 
                procedures, and recommend to personnel of the 
                appropriate activity the prompt reevaluation of 
                such barriers;
                  (C) review barriers to small business 
                participation in Federal contracting arising 
                out of restrictions on the rights of the United 
                States in technical data, and, when 
                appropriate, recommend that personnel of the 
                appropriate activity initiate a review of the 
                validity of such an asserted restriction;
                  (D) review any bundled or consolidated 
                solicitation or contract in accordance with 
                this Act;
                  (E) have access to procurement records and 
                other data of the procurement center 
                commensurate with the level of such 
                representative's approved security clearance 
                classification, with such data provided upon 
                request in electronic format, when available;
                  (F) receive unsolicited proposals from small 
                business concerns and transmit such proposals 
                to personnel of the activity responsible for 
                reviewing such proposals, who shall furnish the 
                procurement center representative with 
                information regarding the disposition of any 
                such proposal;
                  (G) consult with the Director the Office of 
                Small and Disadvantaged Business Utilization of 
                that agency and the agency personnel described 
                in paragraph (7) and (8) of subsection (k) with 
                regard to agency insourcing decisions covered 
                by subsection (k)(11);
                  (H) be an advocate for the maximum 
                practicable utilization of small business 
                concerns in Federal contracting, including by 
                advocating against the consolidation or 
                bundling of contract requirements when not 
                justified;
                  (I) assist small business concerns with 
                finding resources for education and training on 
                compliance with contracting regulations 
                (including the Federal Acquisition Regulation) 
                after award of a contract or subcontract; and
                  (J) carry out any other responsibility 
                assigned by the Administrator.
          (3) Appeals.--A procurement center representative is 
        authorized to appeal the failure to act favorably on 
        any recommendation made pursuant to paragraph (2). Such 
        appeal shall be filed and processed in the same manner 
        and subject to the same conditions and limitations as 
        an appeal filed by the Administrator pursuant to 
        subsection (a).
  (4) The Administration shall assign and co-locate at least 
two small business technical advisers to each major procurement 
center in addition to such other advisers as may be authorized 
from time to time. The sole duties of such advisers shall be to 
assist the procurement center representative for the center to 
which such advisers are assigned in carrying out the functions 
described in paragraph (2) and the representatives referred to 
in subsection (k)(6).
          (5) Position requirements.--
                  (A) In general.--A procurement center 
                representative assigned under this subsection 
                shall--
                          (i) be a full-time employee of the 
                        Administration;
                          (ii) be fully qualified, technically 
                        trained, and familiar with the goods 
                        and services procured by the major 
                        procurement center to which that 
                        representative is assigned; and
                          (iii) have the certification 
                        described in subparagraph (C).
                  (B) Compensation.--The Administrator shall 
                establish personnel positions for procurement 
                center representatives assigned under this 
                subsection, which are classified at a grade 
                level of the General Schedule sufficient to 
                attract and retain highly qualified personnel.
                  (C) Certification requirements.--
                          (i) In general.--Consistent with the 
                        requirements of clause (ii), a 
                        procurement center representative shall 
                        have a Level III Federal Acquisition 
                        Certification in Contracting (or any 
                        successor certification) or the 
                        equivalent Department of Defense 
                        certification, except that any person 
                        serving in such a position on or before 
                        January 3, 2013, may continue to serve 
                        in that position for a period of 5 
                        years without the required 
                        certification.
                          (ii) Delay of certification 
                        requirements.--
                                  (I) Timing.--The 
                                certification described in 
                                clause (i) is not required for 
                                any person serving as a 
                                procurement center 
                                representative until the date 
                                that is one calendar year after 
                                the date such person is 
                                appointed as a procurement 
                                center representative.
                                  (II) Application.--The 
                                requirements of subclause (I) 
                                shall--
                                          (aa) be included in 
                                        any initial job posting 
                                        for the position of a 
                                        procurement center 
                                        representative; and
                                          (bb) apply to any 
                                        person appointed as a 
                                        procurement center 
                                        representative after 
                                        January 3, 2013.
          (6) Major procurement center defined.--For purposes 
        of this subsection, the term ``major procurement 
        center'' means a procurement center that, in the 
        opinion of the Administrator, purchases substantial 
        dollar amounts of goods or services, including goods or 
        services that are commercially available.
          (7) Training.--
                  (A) Authorization.--At such times as the 
                Administrator deems appropriate, the breakout 
                procurement center representative shall conduct 
                familiarization sessions for contracting 
                officers and other appropriate personnel of the 
                procurement center to which such representative 
                is assigned. Such sessions shall acquaint the 
                participants with the provisions of this 
                subsection and shall instruct them in methods 
                designed to further the purposes of such 
                subsection.
                  (B) Limitation.--A procurement center 
                representative may provide training under 
                subparagraph (A) only to the extent that the 
                training does not interfere with the 
                representative carrying out other activities 
                under this subsection.
          (8) Annual briefing and report.--A procurement center 
        representative shall prepare and personally deliver an 
        annual briefing and report to the head of the 
        procurement center to which such representative is 
        assigned. Such briefing and report shall detail the 
        past and planned activities of the representative and 
        shall contain such recommendations for improvement in 
        the operation of the center as may be appropriate. The 
        head of such center shall personally receive such 
        briefing and report and shall, within 60 calendar days 
        after receipt, respond, in writing, to each 
        recommendation made by such representative.
          (9) Scope of review.--The Administrator--
                  (A) may not limit the scope of review by the 
                procurement center representative for any 
                solicitation of a contract or task order 
                without regard to whether the contract or task 
                order or part of the contract or task order is 
                set aside for small business concerns, whether 
                1 or more contracts or task order awards are 
                reserved for small business concerns under a 
                multiple award contract, or whether or not the 
                solicitation would result in a bundled or 
                consolidated contract (as defined in subsection 
                (s)) or a bundled or consolidated task order; 
                and
                  (B) shall, unless the contracting agency 
                requests a review, limit the scope of review by 
                the procurement center representative for any 
                solicitation of a contract or task order if 
                such solicitation is awarded by or for the 
                Department of Defense and--
                          (i) is conducted pursuant to section 
                        22 of the Arms Export Control Act (22 
                        U.S.C. 2762);
                          (ii) is a humanitarian operation as 
                        defined in section 401(e) of title 10, 
                        United States Code;
                          (iii) is for a contingency operation, 
                        as defined in section 101(a)(13) of 
                        title 10, United States Code;
                          (iv) is to be awarded pursuant to an 
                        agreement with the government of a 
                        foreign country in which Armed Forces 
                        of the United States are deployed; or
                          (v) both the place of award and the 
                        place of performance are outside of the 
                        United States and its territories.
  (m)(1) Each agency subject to the requirements of section 
2323 of title 10, United States Code, shall, when implementing 
such requirements--
          (A) establish policies and procedures that insure 
        that there will be no reduction in the number of dollar 
        value of contracts awarded pursuant to this section and 
        section 8(a) in order to achieve any goal or other 
        program objective; and
          (B) assure that such requirements will not alter or 
        change the procurement process used to implement this 
        section or section 8(a).
  (2) All procurement center representatives (including those 
referred to in subsection (k)(6)), in addition to such other 
duties as may be assigned by the Administrator, shall--
          (A) monitor the performance of the procurement 
        activities to which they are assigned to ascertain the 
        degree of compliance with the requirements of paragraph 
        (1);
          (B) report to their immediate supervisors all 
        instances of noncompliance with such requirements; and
          (C) increase, insofar as possible, the number and 
        dollar value of procurements that may be used for the 
        programs established under this section, section 8(a), 
        and section 2323 of title 10, United States Code.
  (n) For purposes of this section, the determination of labor 
surplus areas shall be made on the basis of the criteria in 
effect at the time of the determination, except that any 
minimum population criteria shall not exceed twenty-five 
thousand. Such determination, as modified by the preceding 
sentence, shall be made by the Secretary of Labor.
  (o) Limitations on Subcontracting.--A concern may not be 
awarded a contract under subsection (a) as a small business 
concern unless the concern agrees to satisfy the requirements 
of section 46.
  (p) Access to Data.--
          (1) Bundled contract defined.--In this subsection, 
        the term ``bundled contract'' has the meaning given 
        such term in section 3(o)(1).
          (2) Database.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this 
                subsection, the Administrator of the Small 
                Business Administration shall develop and shall 
                thereafter maintain a database containing data 
                and information regarding--
                          (i) each bundled contract awarded by 
                        a Federal agency; and
                          (ii) each small business concern that 
                        has been displaced as a prime 
                        contractor as a result of the award of 
                        such a contract.
          (3) Analysis.--For each bundled contract that is to 
        be recompeted as a bundled contract, the Administrator 
        shall determine--
                  (A) the amount of savings and benefits (in 
                accordance with subsection (e)) achieved under 
                the bundling of contract requirements; and
                  (B) whether such savings and benefits will 
                continue to be realized if the contract remains 
                bundled, and whether such savings and benefits 
                would be greater if the procurement 
                requirements were divided into separate 
                solicitations suitable for award to small 
                business concerns.
          (4) Annual report on contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of the enactment of this paragraph, 
                and annually in March thereafter, the 
                Administration shall transmit a report on 
                contract bundling to the Committees on Small 
                Business of the House of Representatives and 
                the Senate.
                  (B) Contents.--Each report transmitted under 
                subparagraph (A) shall include--
                          (i) data on the number, arranged by 
                        industrial classification, of small 
                        business concerns displaced as prime 
                        contractors as a result of the award of 
                        bundled contracts by Federal agencies; 
                        and
                          (ii) a description of the activities 
                        with respect to previously bundled 
                        contracts of each Federal agency during 
                        the preceding year, including--
                                  (I) data on the number and 
                                total dollar amount of all 
                                contract requirements that were 
                                bundled; and
                                  (II) with respect to each 
                                bundled contract, data or 
                                information on--
                                          (aa) the 
                                        justification for the 
                                        bundling of contract 
                                        requirements;
                                          (bb) the cost savings 
                                        realized by bundling 
                                        the contract 
                                        requirements over the 
                                        life of the contract;
                                          (cc) the extent to 
                                        which maintaining the 
                                        bundled status of 
                                        contract requirements 
                                        is projected to result 
                                        in continued cost 
                                        savings;
                                          (dd) the extent to 
                                        which the bundling of 
                                        contract requirements 
                                        complied with the 
                                        contracting agency's 
                                        small business 
                                        subcontracting plan, 
                                        including the total 
                                        dollar value awarded to 
                                        small business concerns 
                                        as subcontractors and 
                                        the total dollar value 
                                        previously awarded to 
                                        small business concerns 
                                        as prime contractors; 
                                        and
                                          (ee) the impact of 
                                        the bundling of 
                                        contract requirements 
                                        on small business 
                                        concerns unable to 
                                        compete as prime 
                                        contractors for the 
                                        consolidated 
                                        requirements and on the 
                                        industries of such 
                                        small business 
                                        concerns, including a 
                                        description of any 
                                        changes to the 
                                        proportion of any such 
                                        industry that is 
                                        composed of small 
                                        business concerns.
          (5) Access to data.--
                  (A) Federal procurement data system.--To 
                assist in the implementation of this section, 
                the Administration shall have access to 
                information collected through the Federal 
                Procurement Data System.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administration, 
                procurement information collected through 
                existing agency data collection sources.
  (q) Reports Related to Procurement Center Representatives.--
          (1) Teaming and joint venture requirements.--
                  (A) In general.--Each Federal agency shall 
                include in each solicitation for any multiple 
                award contract above the substantial bundling 
                threshold of the Federal agency a provision 
                soliciting bids from any responsible source, 
                including responsible small business concerns 
                and teams or joint ventures of small business 
                concerns.
                  (B) Teams.--When evaluating an offer of a 
                small business prime contractor that includes a 
                proposed team of small business subcontractors 
                for any multiple award contract above the 
                substantial bundling threshold of the Federal 
                agency, the head of the agency shall consider 
                the capabilities and past performance of each 
                first tier subcontractor that is part of the 
                team as the capabilities and past performance 
                of the small business prime contractor.
                  (C) Joint ventures.--When evaluating an offer 
                of a joint venture of small business concerns 
                for any multiple award contract above the 
                substantial bundling threshold of the Federal 
                agency, if the joint venture does not 
                demonstrate sufficient capabilities or past 
                performance to be considered for award of a 
                contract opportunity, the head of the agency 
                shall consider the capabilities and past 
                performance of each member of the joint venture 
                as the capabilities and past performance of the 
                joint venture.
          (2) Policies on reduction of contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this subsection, the 
                Federal Acquisition Regulatory Council 
                established under section 25(a) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 
                4219(a)) shall amend the Federal Acquisition 
                Regulation issued under section 25 of such Act 
                to--
                          (i) establish a Government-wide 
                        policy regarding contract bundling, 
                        including regarding the solicitation of 
                        teaming and joint ventures under 
                        paragraph (1); and
                          (ii) require that the policy 
                        established under clause (i) be 
                        published on the website of each 
                        Federal agency.
                  (B) Rationale for contract bundling.--Not 
                later than 30 days after the date on which the 
                head of a Federal agency submits data 
                certifications to the Administrator for Federal 
                Procurement Policy, the head of the Federal 
                agency shall publish on the website of the 
                Federal agency a list and rationale for any 
                bundled contract for which the Federal agency 
                solicited bids or that was awarded by the 
                Federal agency.
          (3) Reporting.--Not later than 90 days after the date 
        of enactment of this subsection, and every 3 years 
        thereafter, 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 regarding procurement 
        center representatives and commercial market 
        representatives, which shall--
                  (A) identify each area for which the 
                Administration has assigned a procurement 
                center representative or a commercial market 
                representative;
                  (B) explain why the Administration selected 
                the areas identified under subparagraph (A); 
                and
                  (C) describe the activities performed by 
                procurement center representatives and 
                commercial market representatives.
  (r) Multiple Award Contracts.--Not later than 1 year after 
the date of enactment of this subsection, the Administrator for 
Federal Procurement Policy and the Administrator, in 
consultation with the Administrator of General Services, shall, 
by regulation, establish guidance under which Federal agencies 
may, at their discretion--
          (1) set aside part or parts of a multiple award 
        contract for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);
          (2) notwithstanding the fair opportunity requirements 
        under section 2304c(b) of title 10, United States Code, 
        and section 303J(b) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 
        253j(b)), set aside orders placed against multiple 
        award contracts for small business concerns, including 
        the subcategories of small business concerns identified 
        in subsection (g)(2); and
          (3) reserve 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small 
        business concerns identified in subsection (g)(2).
  (s) Data Quality Improvement Plan.--
          (1) In general.--Not later than October 1, 2015, the 
        Administrator of the Small Business Administration, in 
        consultation with the Small Business Procurement 
        Advisory Council, the Administrator for Federal 
        Procurement Policy, and the Administrator of General 
        Services, shall develop a plan to improve the quality 
        of data reported on bundled or consolidated contracts 
        in the Federal procurement data system (described in 
        section 1122(a)(4)(A) of title 41, United States Code).
          (2) Plan requirements.--The plan shall--
                  (A) describe the roles and responsibilities 
                of the Administrator of the Small Business 
                Administration, each Director of Small and 
                Disadvantaged Business Utilization, the 
                Administrator for Federal Procurement Policy, 
                the Administrator of General Services, senior 
                procurement executives, and Chief Acquisition 
                Officers in--
                          (i) improving the quality of data 
                        reported on bundled or consolidated 
                        contracts in the Federal procurement 
                        data system; and
                          (ii) contributing to the annual 
                        report required by subsection (p)(4);
                  (B) recommend changes to policies and 
                procedures, including training procedures of 
                relevant personnel, to properly identify and 
                mitigate the effects of bundled or consolidated 
                contracts;
                  (C) recommend requirements for periodic and 
                statistically valid data verification and 
                validation; and
                  (D) recommend clear data verification 
                responsibilities.
          (3) Plan submission.--The Administrator of the Small 
        Business Administration shall submit the plan to the 
        Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate not later than December 
        1, 2016.
          (4) Implementation.--Not later than October 1, 2016, 
        the Administrator of the Small Business Administration 
        shall implement the plan described in this subsection.
          (5) Certification.--The Administrator shall annually 
        provide to the Committee on Small Business of the House 
        of Representatives and the Committee on Small Business 
        and Entrepreneurship of the Senate a certification of 
        the accuracy and completeness of data reported on 
        bundled and consolidated contracts.
          (6) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Chief acquisition officer; senior 
                procurement executive.--The terms ``Chief 
                Acquisition Officer'' and ``senior procurement 
                executive'' have the meanings given such terms 
                in section 44(a) of this Act.
                  (B) Bundled or consolidated contract.--The 
                term ``bundled or consolidated contract'' means 
                a bundled contract (as defined in section 3(o)) 
                or a contract resulting from the consolidation 
                of contracting requirements (as defined in 
                section 44(a)(2)).
  (t) GAO Report on Small Business Administration Programs in 
Puerto Rico.--Not later than one year after the date of 
enactment of this subsection, the Comptroller General of the 
United States shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report on the 
application and utilization of contracting activities of the 
Administration (including contracting activities relating to 
HUBZone small business concerns) in Puerto Rico. The report 
shall also identify any provisions of Federal law that may 
create an obstacle to the efficient implementation of such 
contracting activities.
  (u) Post-Award Compliance Resources.--The Administrator shall 
provide to small business development centers and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, 
United States Code, and shall make available on the website of 
the Administration, a list of resources for small business 
concerns seeking education and assistance on compliance with 
contracting regulations (including the Federal Acquisition 
Regulation) after award of a contract or subcontract.
  (v) Regulatory Changes and Training Materials.--Not less than 
annually, the Administrator shall provide to the Defense 
Acquisition University (established under section 1746 of title 
10, United States Code), the Federal Acquisition Institute 
(established under section 1201 of title 41, United States 
Code), the individual responsible for mandatory training and 
education of the acquisition workforce of each agency 
(described under section 1703(f)(1)(C) of title 41, United 
States Code), small business development centers, and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, 
United States Code--
          (1) a list of all changes made in the prior year to 
        regulations promulgated--
                  (A) by the Administrator that affect Federal 
                acquisition; and
                  (B) by the Federal Acquisition Council that 
                implement amendments to this Act; and
          (2) any materials the Administrator has developed 
        that explain, train, or assist Federal agencies or 
        departments or small business concerns with compliance 
        with the regulations described in paragraph (1).

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