[House Report 118-179]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-179

======================================================================
 
                SMALL BUSINESS CONTRACTING TRANSPARENCY
                              ACT OF 2023

                                _______
                                

 September 1, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Williams of Texas, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 4670]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 4670) to amend the Small Business Act to require 
reporting on additional information with respect to small 
business concerns owned and controlled by women, qualified 
HUBZone small business concerns, and small business concerns 
owned and controlled by veterans, and for other purposes, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................2
  II. Need for Legislation............................................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................2
   V. Committee Votes.................................................2
  VI. Section-by-Section of H.R. 4670.................................5
 VII. Congressional Budget Office Cost Estimate.......................5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure6
  IX. Oversight Findings & Recommendations............................6
   X. Performance Goals and Objectives................................6
  XI. Statement of Duplication of Federal Programs....................6
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................6
XIII. Federal Mandates Statement......................................7
 XIV. Federal Advisory Committee Statement............................7
  XV. Applicability to Legislative Branch.............................7
 XVI. Statement of Constitutional Authority...........................7
XVII. Changes in Existing Law, Made by the Bill, As Reported..........7

                      I. Purpose and Bill Summary

    H.R. 4670 was introduced by Rep. Houlahan (D-PA), Rep. 
Scholten (D-MI) and Rep. Stauber (R-MN) on July 17, 2023. The 
purpose of H.R. 4670, the ``Small Business Contracting 
Transparency Act'', is to require the SBA to provide a report 
on certification activities and contract awards within the 
Women's Owned Small Business (WOSB), HUBZone (Historically 
Underutilized Business Zones), and Service-Disabled Veteran 
Owned Small Business (SDVOSB) programs.

                        II. Need for Legislation

    Small businesses play a vital role in America's industrial 
base. Their ability to provide agile innovation ensures the 
Federal government can fully execute its mission. To help small 
businesses better compete in the federal marketplace, the Small 
Business Administration (SBA) administers contracting programs 
that provide unique procurement opportunities to small 
businesses. Small businesses in SBA's WOSB, SDVOSB, and HUBZone 
contracting programs can access set-aside contract 
opportunities and sole-source awards, among other benefits.
    To participate in these SBA contracting programs, small 
businesses must gain certification to become eligible. SBA is 
responsible for ensuring that participating small businesses 
are accurately representing themselves, while ensuring those 
businesses remain eligible through recertification and 
examinations.
    While SBA has a duty to examine these firms, more oversight 
is needed to ensure that is being done properly and efficiently 
enough as to not harm small businesses with delays. H.R. 4670 
would provide deeper insights into certification activities 
within HUBZone, SDVOSB, and WOSB programs.

                             III. Hearings

    In the 118th Congress, the Committee held one hearing 
examining the issues covered in H.R. 4670. On May 11, 2023, the 
Committee held a hearing titled ``Leveling the Playing Field: 
The State of Small Business Contracting.'' Hearing witnesses 
discussed the importance of certification in the small business 
procurement, and how delays in bureaucratic processes 
contribute to the eroding small business role in the industrial 
base.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on July 18, 2023 and ordered H.R. 4670 
reported favorably to the House of Representatives. During the 
markup no amendments were offered.

                           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 to favorably report H.R. 4670 to 
the House of Representatives at 11:58 a.m.


                  VI. Section-by-Section of H.R. 4670


Section 1. Short title

    This Act may be cited as the ``Small Business Contracting 
Transparency Act of 2023''.

Section 2. Report on small business concerns owned and controlled by 
        women

    The Administrator of the SBA is directed to submit an 
annual report, starting no later than May 1, 2024, on small 
businesses controlled by women (WOSBs). The report shall 
include WOSB certification by the Administrator and by a 
national certifying entity, including any fees charged.
    The report must include prime contract award dollar amounts 
for sole sourced contracts for economically disadvantaged 
women-owned small businesses and for contracts in industries 
substantially underrepresented by women owned small businesses. 
The report must include awards made to firms incorrectly when 
they are not in an industry underrepresented by women owned 
firms.
    The report must count the number of women owned small 
businesses that were found ineligible due to re-examination or 
verification of their eligibility. The SBA must provide the 
number of anticipated re-certification examinations and the 
number conducted. The report must include the number of firms 
de-certified due to these examinations, by each program. The 
Administrator may include additional items as necessary.

Section 3. Report on small business concerns owned and controlled by 
        qualified HUBZone small business concerns

    This section requires a similar report for businesses 
certified as HUBZone firms. The report must include the total 
dollar amount and percentage of prime contract awards to 
HUBZones overall.

Section 4. Report on small business concerns owned and controlled by 
        service-disabled veterans

    This section requires a similar report for businesses 
certified as firms controlled by service-disabled veterans 
(SDVOSB). The report must include the total dollar amount and 
percentage of prime contract awards to SDVOSBs overall.

Section 5. Compliance with CUTGO

    This section does not authorize any additional 
appropriations for this bill.

             VII. Congressional Budget Office Cost Estimate

    Pursuant to clause 3(d)(1) of House rule XIII, the 
Committee adopts as its own the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a cost estimate for the Committee's 
provisions. Once available, the cost estimate will be published 
in the Congressional Record.

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

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(I) of the 
Congressional Budget Act of 1974, 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. 4670 does not direct new 
spending, but instead reallocates funding independently 
authorized and appropriated.

                IX. Oversight Findings & Recommendations

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
the H.R. 4670 are incorporated into the descriptive portions of 
this report.

                  X. Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 4670 are to require an 
annual report on the number of certifications determinations, 
number of small business concerns certified as a WOSB, SDVOSB, 
and HUBZone, amount of fees charged, total dollar amount and 
percentage of prime contracts awarded to small business 
concerns through WOSB, SDVOSB, and HUBZone, number of contracts 
awarded incorrectly to WOSB, SDVOSB, or HUBZone, and the name 
of the awarding agency, and steps the SBA Administrator has 
taken to train Federal personnel. The report must also include 
the number of firms that were due for recertification, the 
number of firms recertified, number found ineligible, the 
number decertified, and the total number of firms controlled by 
women, service-disabled veterans, or HUBZone.

            XI. Statement of Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 4670 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

           XII. Congressional Earmarks, Limited Tax Benefits,
                      and Limited Tariff Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

               XIV. Federal Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               XVI. 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 of the Constitution of the United States.

      XVII. 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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, 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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                           SMALL BUSINESS ACT




           *       *       *       *       *       *       *
    Sec. 8. (a)(1) It shall be the duty of the Administration 
and it is hereby empowered, whenever it determines such action 
is necessary or appropriate--
            (A) to enter into contracts with the United States 
        Government and any department, agency, or officer 
        thereof having procurement powers obligating the 
        Administration to furnish articles, equipment, 
        supplies, services, or materials to the Government or 
        to perform construction work for the Government. In any 
        case in which the Administration certifies to any 
        officer of the Government having procurement powers 
        that the Administration is competent and responsible to 
        perform any specific Government procurement contract to 
        be let by any such officer, such officer shall be 
        authorized in his discretion to let such procurement 
        contract to the Administration upon such terms and 
        conditions as may be agreed upon between the 
        Administration and the procurement officer. Whenever 
        the Administration and such procurement officer fail to 
        agree, the matter shall be submitted for determination 
        to the Secretary or the head of the appropriate 
        department or agency by the Administrator. Not later 
        than 5 days from the date the Administration is 
        notified of a procurement officer's adverse decision, 
        the Administration may notify the contracting officer 
        of the intent to appeal such adverse decision, and 
        within 15 days of such date the Administrator shall 
        file a written request for a reconsideration of the 
        adverse decision with the Secretary of the department 
        or agency head. For the purposes of this subparagraph, 
        a procurement officer's adverse decision includes a 
        decision not to make available for award pursuant to 
        this subsection a particular procurement requirement or 
        the failure to agree on the terms and conditions of a 
        contract to be awarded noncompetitively under the 
        authority of this subsection. Upon receipt of the 
        notice of intent to appeal, the Secretary of the 
        department or the agency head shall suspend further 
        action regarding the procurement until a written 
        decision on the Administrator's request for 
        reconsideration has been issued by such Secretary or 
        agency head, unless such officer makes a written 
        determination that urgent and compelling circumstances 
        which significantly affect interests of the United 
        States will not permit waiting for a reconsideration of 
        the adverse decision. If the Administrator's request 
        for reconsideration is denied, the Secretary of the 
        department or agency head shall specify the reasons why 
        the selected firm was determined to be incapable to 
        perform the procurement requirement, and the findings 
        supporting such determination, which shall be made a 
        part of the contract file for the requirement. A 
        contract may not be awarded under this subsection if 
        the award of the contract would result in a cost to the 
        awarding agency which exceeds a fair market price;
            (B) to arrange for the performance of such 
        procurement contracts by negotiating or otherwise 
        letting subcontracts to socially and economically 
        disadvantaged small business concerns for construction 
        work, services, or the manufacture, supply, assembly of 
        such articles, equipment, supplies, materials, or parts 
        thereof, or servicing or processing in connection 
        therewith, or such management services as may be 
        necessary to enable the Administration to perform such 
        contracts;
                    (C) to make an award to a small business 
                concern owned and controlled by socially and 
                economically disadvantaged individuals which 
                has completed its period of Program 
                Participation as prescribed by section 
                7(j)(15), if--
                            (i) the contract will be awarded as 
                        a result of an offer (including price) 
                        submitted in response to a published 
                        solicitation relating to a competition 
                        conducted pursuant to subparagraph (D); 
                        and
                            (ii) the prospective contract 
                        awardee was a Program Participant 
                        eligible for award of the contract on 
                        the date specified for receipt of 
                        offers contained in the contract 
                        solicitation; and
            (D)(i) A contract opportunity offered for award 
        pursuant to this subsection shall be awarded on the 
        basis of competition restricted to eligible Program 
        Participants if--
                    (I) there is a reasonable expectation that 
                at least two eligible Program Participants will 
                submit offers and that award can be made at a 
                fair market price, and
                    (II) the anticipated award price of the 
                contract (including options) will exceed 
                $7,000,000 in the case of a contract 
                opportunity assigned a standard industrial 
                classification code for manufacturing and 
                $3,000,000 (including options) in the case of 
                all other contract opportunities.
            (ii) The Associate Administrator for Minority Small 
        Business and Capital Ownership Development, on a 
        nondelegable basis, is authorized to approve a request 
        from an agency to award a contract opportunity under 
        this subsection on the basis of a competition 
        restricted to eligible Program Participants even if the 
        anticipated award price is not expected to exceed the 
        dollar amounts specified in clause (i)(II). Such 
        approvals shall be granted only on a limited basis.
    (2) Notwithstanding subsections (a) and (c) of the first 
section of the Act entitled ``An Act requiring contracts for 
the construction, alteration, and repair of any public building 
or public work of the United States to be accompanied by a 
performance bond protecting the United States and by additional 
bond for the protection of persons furnishing material and 
labor for the construction, alteration, or repair of said 
public buildings or public work,'' approved August 24, 1935 (49 
Stat. 793), no small business concern shall be required to 
provide any amount of any bond as a condition or receiving any 
subcontract under this subsection if the Administrator 
determines that such amount is inappropriate for such concern 
in performing such contract: Provided, That the Administrator 
shall exercise the authority granted by the paragraph only if--
            (A) the Administration takes such measures as it 
        deems appropriate for the protection of persons 
        furnishing materials and labor to a small business 
        receiving any benefit pursuant to this paragraph;
            (B) the Administration assists, insofar as 
        practicable, a small business receiving the benefits of 
        this paragraph to develop, within a reasonable period 
        of time, such financial and other capability as may be 
        needed to obtain such bonds as the Administration may 
        subsequently require for the successful completion of 
        any program conducted under the authority of this 
        subsection;
            (C) the Administration finds that such small 
        business is unable to obtain the requisite bond or 
        bonds from a surety and that no surety is willing to 
        issue such bond or bonds subject to the guarantee 
        provisions of Title IV of the Small Business Investment 
        Act of 1958; and
            (D) that small business is determined to be a 
        start-up concern and such concern has not been 
        participating in any program conducted under the 
        authority of this subsection for a period exceeding one 
        year.
The authority to waive bonds provided in this paragraph (2) may 
not be exercised after September 30, 1988.
    (3)(A) Any Program Participant selected by the 
Administration to perform a contract to be let noncompetitively 
pursuant to this subsection shall, when practicable, 
participate in any negotiation of the terms and conditions of 
such contract.
    (B)(i) For purposes of paragraph (1) a ``fair market 
price'' shall be determined by the agency offering the 
procurement requirement to the Administration, in accordance 
with clauses (ii) and (iii).
    (ii) The estimate of a current fair market price for a new 
procurement requirement, or a requirement that does not have a 
satisfactory procurement history, shall be derived from a price 
or cost analysis. Such analysis may take into account 
prevailing market conditions, commercial prices for similar 
products or services, or data obtained from any other agency. 
Such analysis shall consider such cost or pricing data as may 
be timely submitted by the Administration.
    (iii) The estimate of a current fair market price for a 
procurement requirement that has a satisfactory procurement 
history shall be based on recent award prices adjusted to 
insure comparability. Such adjustments shall take into account 
differences in quantities, performance times, plans, 
specifications, transportation costs, packaging and packing 
costs, labor and materials costs, overhead costs, and any other 
additional costs which may be deemed appropriate.
    (C) An agency offering a procurement requirement for 
potential award pursuant to this subsection shall, upon the 
request of the Administration, promptly submit to the 
Administration a written statement detailing the method used by 
the agency to estimate the current fair market price for such 
contract, identifying the information, studies, analyses, and 
other data used by such agency. The agency's estimate of the 
current fair market price (and any supporting data furnished to 
the Administration) shall not be disclosed to any potential 
offeror (other than the Administration).
    (D) A small business concern selected by the Administration 
to perform or negotiate a contract to be let pursuant to this 
subsection may request the Administration to protest the 
agency's estimate of the fair market price for such contract 
pursuant to paragraph (1)(A).
    (4)(A) For purposes of this section, the term ``socially 
and economically disadvantaged small business concern'' means 
any small business concern which meets the requirements of 
subparagraph (B) and--
            (i) which is at least 51 per centum unconditionally 
        owned by--
                    (I) one or more socially and economically 
                disadvantaged individuals,
                    (II) an economically disadvantaged Indian 
                tribe (or a wholly owned business entity of 
                such tribe), or
                    (III) an economically disadvantaged Native 
                Hawaiian organization, or
            (ii) in the case of any publicly owned business, at 
        least 51 per centum of the stock of which is 
        unconditionally owned by--
                    (I) one or more socially and economically 
                disadvantaged individuals,
                    (II) an economically disadvantaged Indian 
                tribe (or a wholly owned business entity of 
                such tribe), or
                    (III) an economically disadvantaged Native 
                Hawaiian organization.
    (B) A small business concern meets the requirements of this 
subparagraph if the management and daily business operations of 
such small business concern are controlled by one or more--
            (i) socially and economically disadvantaged 
        individuals described in subparagraph (A)(i)(I) or 
        subparagraph (A)(ii)(I),
            (ii) members of an economically disadvantaged 
        Indian tribe described in subparagraph (A)(i)(II) or 
        subparagraph (A)(ii)(II), or
            (iii) Native Hawaiian organizations described in 
        subparagraph (A)(i)(III) or subparagraph (A)(ii)(III).
    (C) Each Program Participant shall certify, on an annual 
basis, that it meets the requirements of this paragraph 
regarding ownership and control.
    (5) Socially disadvantaged individuals are those who have 
been subjected to racial or ethnic prejudice or cultural bias 
because of their identity as a member of a group without regard 
to their individual qualities.
    (6)(A) Economically disadvantaged individuals are those 
socially disadvantaged individuals whose ability to compete in 
the free enterprise system has been impaired due to diminished 
capital and credit opportunities as compared to others in the 
same business area who are not socially disadvantaged. In 
determining the degree of diminished credit and capital 
opportunities the Administration shall consider, but not be 
limited to, the assets and net worth of such socially 
disadvantaged individual. In determining the economic 
disadvantage of an Indian tribe, the Administration shall 
consider, where available, information such as the following: 
the per capita income of members of the tribe excluding 
judgment awards, the percentage of the local Indian population 
below the poverty level, and the tribe's access to capital 
markets.
    (B) Each Program Participant shall annually submit to the 
Administration--
            (i) a personal financial statement for each 
        disadvantaged owner;
            (ii) a record of all payments made by the Program 
        Participant to each of its disadvantaged owners or to 
        any person or entity affiliated with such owners; and
            (iii) such other information as the Administration 
        may deem necessary to make the determinations required 
        by this paragraph.
    (C)(i) Whenever, on the basis of information provided by a 
Program Participant pursuant to subparagraph (B) or otherwise, 
the Administration has reason to believe that the standards to 
establish economic disadvantage pursuant to subparagraph (A) 
have not been met, the Administration shall conduct a review to 
determine whether such Program Participant and its 
disadvantaged owners continue to be impaired in their ability 
to compete in the free enterprise system due to diminished 
capital and credit opportunities when compared to other 
concerns in the same business area, which are not socially 
disadvantaged.
    (ii) If the Administration determines, pursuant to such 
review, that a Program Participant and its disadvantaged owners 
are no longer economically disadvantaged for the purpose of 
receiving assistance under this subsection, the Program 
Participant shall be graduated pursuant to section 7(j)(10)(G) 
subject to the right to a hearing as provided for under 
paragraph (9).
    (D)(i) Whenever, on the basis of information provided by a 
Program Participant pursuant to subparagraph (B) or otherwise, 
the Administration has reason to believe that the amount of 
funds or other assets withdrawn from a Program Participant for 
the personal benefit of its disadvantaged owners or any person 
or entity affiliated with such owners may have been unduly 
excessive, the Administration shall conduct a review to 
determine whether such withdrawal of funds or other assets was 
detrimental to the achievement of the targets, objectives, and 
goals contained in such Program Participant's business plan.
    (ii) If the Administration determines, pursuant to such 
review, that funds or other assets have been withdrawn to the 
detriment of the Program Participant's business, the 
Administration shall--
            (I) initiate a proceeding to terminate the Program 
        Participant pursuant to section 7(j)(10)(F), subject to 
        the right to a hearing under paragraph (9); or
            (II) require an appropriate reinvestment of funds 
        or other assets and such other steps as the 
        Administration may deem necessary to ensure the 
        protection of the concern.
    (E) Whenever the Administration computes personal net worth 
for any purpose under this paragraph, it shall exclude from 
such computation--
            (i) the value of investments that disadvantaged 
        owners have in their concerns, except that such value 
        shall be taken into account under this paragraph when 
        comparing such concerns to other concerns in the same 
        business area that are owned by other than socially 
        disadvantaged persons;
            (ii) the equity that disadvantaged owners have in 
        their primary personal residences, except that any 
        portion of such equity that is attributable to unduly 
        excessive withdrawals from a Program Participant or a 
        concern applying for program participation shall be 
        taken into account.
    (7)(A) No small business concern shall be deemed eligible 
for any assistance pursuant to this subsection unless the 
Administration determines that with contract, financial, 
technical, and management support the small business concern 
will be able to perform contracts which may be awarded to such 
concern under paragraph (1)(C) and has reasonable prospects for 
success in competing in the private sector.
    (B) Limitations established by the Administration in its 
regulations and procedures restricting the award of contracts 
pursuant to this subsection to a limited number of standard 
industrial classification codes in an approved business plan 
shall not be applied in a manner that inhibits the logical 
business progression by a participating small business concern 
into areas of industrial endeavor where such concern has the 
potential for success.
    (8) All determinations made pursuant to paragraph (5) with 
respect to whether a group has been subjected to prejudice or 
bias shall be made by the Administrator after consultation with 
the Associate Administrator for Minority Small Business and 
Capital Ownership Development. All other determinations made 
pursuant to paragraphs (4), (5), (6), and (7) shall be made by 
the Associate Administrator for Minority Small Business and 
Capital Ownership Development under the supervision of, and 
responsible to, the Administrator.
    (9)(A) Subject to the provisions of subparagraph (E), the 
Administration, prior to taking any action described in 
subparagraph (B), shall provide the small business concern that 
is the subject of such action, an opportunity for a hearing on 
the record, in accordance with chapter 5 of title 5, United 
States Code.
    (B) The actions referred to in subparagraph (A) are--
            (i) denial of program admission based upon a 
        negative determination pursuant to paragraph (4), (5), 
        or (6);
            (ii) a termination pursuant to section 7(j)(10)(F);
            (iii) a graduation pursuant to section 7(j)(10)(G); 
        and
            (iv) the denial of a request to issue a waiver 
        pursuant to paragraph (21)(B).
    (C) The Administration's proposed action, in any proceeding 
conducted under the authority of this paragraph, shall be 
sustained unless it is found to be arbitrary, capricious, or 
contrary to law.
    (D) A decision rendered pursuant to this paragraph shall be 
the final decision of the Administration and shall be binding 
upon the Administration and those within its employ.
    (E) The adjudicator selected to preside over a proceeding 
conducted under the authority of this paragraph shall decline 
to accept jurisdiction over any matter that--
            (i) does not, on its face, allege facts that, if 
        proven to be true, would warrant reversal or 
        modification of the Administration's position;
            (ii) is untimely filed;
            (iii) is not filed in accordance with the rules of 
        procedure governing such proceedings; or
            (iv) has been decided by or is the subject of an 
        adjudication before a court of competent jurisdiction 
        over such matters.
    (F) Proceedings conducted pursuant to the authority of this 
paragraph shall be completed and a decision rendered, insofar 
as practicable, within ninety days after a petition for a 
hearing is filed with the adjudicating office.
    (10) The Administration shall develop and implement an 
outreach program to inform and recruit small business concerns 
to apply for eligibility for assistance under this subsection. 
Such program shall make a sustained and substantial effort to 
solicit applications for certification from small business 
concerns located in areas of concentrated unemployment or 
underemployment or within labor surplus areas and within States 
having relatively few Program Participants and from small 
disadvantaged business concerns in industry categories that 
have not substantially participated in the award of contracts 
let under the authority of this subsection.
    (11) To the maximum extent practicable, construction 
subcontracts awarded by the Administration pursuant to this 
subsection shall be awarded within the county or State where 
the work is to be performed.
    (12)(A) The Administration shall require each concern 
eligible to receive subcontracts pursuant to this subsection to 
annually prepare and submit to the Administration a capability 
statement. Such statement shall briefly describe such concern's 
various contract performance capabilities and shall contain the 
name and telephone number of the Business Opportunity 
Specialist assigned such concern. The Administration shall 
separate such statements by those primarily dependent upon 
local contract support and those primarily requiring a national 
marketing effort. Statements primarily dependent upon local 
contract support shall be disseminated to appropriate buying 
activities in the marketing area of the concern. The remaining 
statements shall be disseminated to the Directors of Small and 
Disadvantaged Business Utilization for the appropriate agencies 
who shall further distribute such statements to buying 
activities with such agencies that may purchase the types of 
items or services described on the capability statements.
    (B) Contracting activities receiving capability statements 
shall, within 60 days after receipt, contact the relevant 
Business Opportunity Specialist to indicate the number, type, 
and approximate dollar value of contract opportunities that 
such activities may be awarding over the succeeding 12-month 
period and which may be appropriate to consider for award to 
those concerns for which it has received capability statements.
    (C) Each executive agency reporting to the Federal 
Procurement Data System contract actions with an aggregate 
value in excess of $50,000,000 in fiscal year 1988, or in any 
succeeding fiscal year, shall prepare a forecast of expected 
contract opportunities or classes of contract opportunities for 
the next and succeeding fiscal years that small business 
concerns, including those owned and controlled by socially and 
economically disadvantaged individuals, are capable of 
performing. Such forecast shall be periodically revised during 
such year. To the extent such information is available, the 
agency forecasts shall specify:
            (i) The approximate number of individual contract 
        opportunities (and the number of opportunities within a 
        class).
            (ii) The approximate dollar value, or range of 
        dollar values, for each contract opportunity or class 
        of contract opportunities.
            (iii) The anticipated time (by fiscal year quarter) 
        for the issuance of a procurement request.
            (iv) The activity responsible for the award and 
        administration of the contract.
    (D) The head of each executive agency subject to the 
provisions of subparagraph (C) shall within 10 days of 
completion furnish such forecasts to--
            (i) the Director of the Office of Small and 
        Disadvantaged Business Utilization established pursuant 
        to section 15(k) for such agency; and
            (ii) the Administrator.
    (E) The information reported pursuant to subparagraph (D) 
may be limited to classes of items and services for which there 
are substantial annual purchases.
    (F) Such forecasts shall be available to small business 
concerns.
    (13) For purposes of this subsection, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other 
organized group or community of Indians, including any Alaska 
Native village or regional or village corporation (within the 
meaning of the Alaska Native Claims Settlement Act) which--
            (A) is recognized as eligible for the special 
        programs and services provided by the United States to 
        Indians because of their status as Indians, or
            (B) is recognized as such by the State in which 
        such tribe, band, nation, group, or community resides.
            (14) Limitations on subcontracting.--A concern may 
        not be awarded a contract under this subsection as a 
        small business concern unless the concern agrees to 
        satisfy the requirements of section 46.
    (15) For purposes of this subsection, the term ``Native 
Hawaiian Organization'' means any community service 
organization serving Native Hawaiians in the State of Hawaii 
which--
            (A) is a nonprofit corporation that has filed 
        articles of incorporation with the director (or the 
        designee thereof) of the Hawaii Department of Commerce 
        and Consumer Affairs, or any successor agency,
            (B) is controlled by Native Hawaiians, and
            (C) whose business activities will principally 
        benefit such Native Hawaiians.
    (16)(A) The Administration shall award sole source 
contracts under this section to any small business concern 
recommended by the procuring agency offering the contract 
opportunity if--
            (i) the Program Participant is determined to be a 
        responsible contractor with respect to performance of 
        such contract opportunity;
            (ii) the award of such contract would be consistent 
        with the Program Participant's business plan; and
            (iii) the award of the contract would not result in 
        the Program Participant exceeding the requirements 
        established by section 7(j)(10)(I).
    (B) To the maximum extent practicable, the Administration 
shall promote the equitable geographic distribution of sole 
source contracts awarded pursuant to this subsection.
    (17)(A) An otherwise responsible business concern that is 
in compliance with the requirements of subparagraph (B) shall 
not be denied the opportunity to submit and have considered its 
offer for any procurement contract, which contract has as its 
principal purpose the supply of a product to be let pursuant to 
this subsection, subsection (m), section 15(a), section 31, or 
section 36, solely because such concern is other than the 
actual manufacturer or processor of the product to be supplied 
under the contract.
    (B) To be in compliance with the requirements referred to 
in subparagraph (A), such a business concern shall--
            (i) be primarily engaged in the wholesale or retail 
        trade;
            (ii) be a small business concern under the 
        numerical size standard for the Standard Industrial 
        Classification Code assigned to the contract 
        solicitation on which the offer is being made;
            (iii) be a regular dealer, as defined pursuant to 
        section 35(a) of title 41, United States Code 
        (popularly referred to as the Walsh-Healey Public 
        Contracts Act), in the product to be offered the 
        Government or be specifically exempted from such 
        section by section 7(j)(13)(C); and
            (iv) represent that it will supply the product of a 
        domestic small business manufacturer or processor, 
        unless a waiver of such requirement is granted--
                    (I) by the Administrator, after reviewing a 
                determination by the contracting officer that 
                no small business manufacturer or processor can 
                reasonably be expected to offer a product 
                meeting the specifications (including period 
                for performance) required of an offeror by the 
                solicitation; or
                    (II) by the Administrator for a product (or 
                class of products), after determining that no 
                small business manufacturer or processor is 
                available to participate in the Federal 
                procurement market.
            (C) Limitation.--This paragraph shall not apply to 
        a contract that has as its principal purpose the 
        acquisition of services or construction.
    (18)(A) No person within the employ of the Administration 
shall, during the term of such employment and for a period of 
two years after such employment has been terminated, engage in 
any activity or transaction specified in subparagraph (B) with 
respect to any Program Participant during such person's term of 
employment, if such person participated personally (either 
directly or indirectly) in decision-making responsibilities 
relating to such Program Participant or with respect to the 
administration of any assistance provided to Program 
Participants generally under this subsection, section 7(j)(10), 
or section 7(a)(20).
    (B) The activities and transactions prohibited by 
subparagraph (A) include--
            (i) the buying, selling, or receiving (except by 
        inheritance) of any legal or beneficial ownership of 
        stock or any other ownership interest or the right to 
        acquire any such interest;
            (ii) the entering into or execution of any written 
        or oral agreement (whether or not legally enforceable) 
        to purchase or otherwise obtain any right or interest 
        described in clause (i); or
            (iii) the receipt of any other benefit or right 
        that may be an incident of ownership.
    (C)(i) The employees designated in clause (ii) shall 
annually submit a written certification to the Administration 
regarding compliance with the requirements of this paragraph.
    (ii) The employees referred to in clause (i) are--
            (I) regional administrators;
            (II) district directors;
            (III) the Associate Administrator for Minority 
        Small Business and Capital Ownership Development;
            (IV) employees whose principal duties relate to the 
        award of contracts or the provision of other assistance 
        pursuant to this subsection or section 7(j)(10); and
            (V) such other employees as the Administrator may 
        deem appropriate.
    (iii) Any present or former employee of the Administration 
who violates this paragraph shall be subject to a civil 
penalty, assessed by the Attorney General, that shall not 
exceed 300 per centum of the maximum amount of gain such 
employee realized or could have realized as a result of 
engaging in those activities and transactions prescribed by 
subparagraph (B).
    (iv) In addition to any other remedy or sanction provided 
for under law or regulation, any person who falsely certifies 
pursuant to clause (i) shall be subject to a civil penalty 
under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 
3801-3812).
    (19)(A) Any employee of the Administration who has 
authority to take, direct others to take, recommend, or approve 
any action with respect to any program or activity conducted 
pursuant to this subsection or section 7(j), shall not, with 
respect to any such action, exercise or threaten to exercise 
such authority on the basis of the political activity or 
affiliation of any party. Employees of the Administration shall 
expeditiously report to the Inspector General of the 
Administration any such action for which such employee's 
participation has been solicitated or directed.
    (B) Any employee who willfully and knowingly violates 
subparagraph (A) shall be subject to disciplinary action, which 
may consist of separation from service, reduction in grade, 
suspension, or reprimand.
    (C) Subparagraph (A) shall not apply to any action taken as 
a penalty or other enforcement of a violation of any law, rule, 
or regulation prohibiting or restricting political activity.
    (D) The prohibitions of subparagraph (A), and remedial 
measures provided for under subparagraphs (B) and (C) with 
regard to such prohibitions, shall be in addition to, and not 
in lieu of, any other prohibitions, measures or liabilities 
that may arise under any other provision of law.
    (20)(A) Small business concerns participating in the 
Program under section 7(j)(10) and eligible to receive 
contracts pursuant to this section shall semiannually report to 
their assigned Business Opportunity Specialist the following:
            (i) A listing of any agents, representatives, 
        attorneys, accountants, consultants, and other parties 
        (other than employees) receiving compensation to assist 
        in obtaining a Federal contract for such Program 
        Participant.
            (ii) The amount of compensation received by any 
        person listed under clause (i) during the relevant 
        reporting period and a description of the activities 
        performed in return for such compensation.
    (B) The Business Opportunity Specialist shall promptly 
review and forward such report to the Associate Administrator 
for Minority Small Business and Capital Ownership Development. 
Any report that raises a suspicion of improper activity shall 
be reported immediately to the Inspector General of the 
Administration.
    (C) The failure to submit a report pursuant to the 
requirements of this subsection and applicable regulations 
shall be considered ``good cause'' for the initiation of a 
termination proceeding pursuant to section 7(j)(10)(F).
    (21)(A) Subject to the provisions of subparagraph (B), a 
contract (including options) awarded pursuant to this 
subsection shall be performed by the concern that initially 
received such contract. Notwithstanding the provisions of the 
preceding sentence, if the owner or owners upon whom 
eligibility was based relinquish ownership or control of such 
concern, or enter into any agreement to relinquish such 
ownership or control, such contract or option shall be 
terminated for the convenience of the Government, except that 
no repurchase costs or other damages may be assessed against 
such concerns due solely to the provisions of this 
subparagraph.
    (B) The Administrator may, on a nondelegable basis, waive 
the requirements of subparagraph (A) only if one of the 
following conditions exist:
            (i) When it is necessary for the owners of the 
        concern to surrender partial control of such concern on 
        a temporary basis in order to obtain equity financing.
            (ii) The head of the contracting agency for which 
        the contract is being performed certifies that 
        termination of the contract would severely impair 
        attainment of the agency's program objectives or 
        missions;
            (iii) Ownership and control of the concern that is 
        performing the contract will pass to another small 
        business concern that is a program participant, but 
        only if the acquiring firm would otherwise be eligible 
        to receive the award directly pursuant to subsection 
        (a);
            (iv) The individuals upon whom eligibility was 
        based are no longer able to exercise control of the 
        concern due to incapacity or death; or
            (v) When, in order to raise equity capital, it is 
        necessary for the disadvantaged owners of the concern 
        to relinquish ownership of a majority of the voting 
        stock of such concern, but only if--
                    (I) such concern has exited the Capital 
                Ownership Development Program;
                    (II) the disadvantaged owners will maintain 
                ownership of the largest single outstanding 
                block of voting stock (including stock held by 
                affiliated parties); and
                    (III) the disadvantaged owners will 
                maintain control of daily business operations.
            (C) The Administrator may waive the requirements of 
        subparagraph (A) if--
                    (i) in the case of subparagraph (B) (i), 
                (ii) and (iv), he is requested to do so prior 
                to the actual relinquishment of ownership or 
                control; and
                    (ii) in the case of subparagraph (B)(iii), 
                he is requested to do so as soon as possible 
                after the incapacity or death occurs.
    (D) Concerns performing contracts awarded pursuant to this 
subsection shall be required to notify the Administration 
immediately upon entering an agreement (either oral or in 
writing) to transfer all or part of its stock or other 
ownership interest to any other party.
    (E) Notwithstanding any other provision of law, for the 
purposes of determining ownership and control of a concern 
under this section, any potential ownership interests held by 
investment companies licensed under the Small Business 
Investment Act of 1958 shall be treated in the same manner as 
interests held by the individuals upon whom eligibility is 
based.
    (b) It shall also be the duty of the Administration and it 
is hereby empowered, whenever it determines such action is 
necessary--
            (1)(A) to provide--
                    (i) technical, managerial, and 
                informational aids to small business concerns--
                            (I) by advising and counseling on 
                        matters in connection with Government 
                        procurement and policies, principles, 
                        and practices of good management;
                            (II) by cooperating and advising 
                        with--
                                    (aa) voluntary business, 
                                professional, educational, and 
                                other nonprofit organizations, 
                                associations, and institutions 
                                (except that the Administration 
                                shall take such actions as it 
                                determines necessary to ensure 
                                that such cooperation does not 
                                constitute or imply an 
                                endorsement by the 
                                Administration of the 
                                organization or its products or 
                                services, and shall ensure that 
                                it receives appropriate 
                                recognition in all printed 
                                materials); and
                                    (bb) other Federal and 
                                State agencies;
                            (III) by maintaining a 
                        clearinghouse for information on 
                        managing, financing, and operating 
                        small business enterprises; and
                            (IV) by disseminating such 
                        information, including through 
                        recognition events, and by other 
                        activities that the Administration 
                        determines to be appropriate; and
                    (ii) through cooperation with a profit-
                making concern (referred to in this paragraph 
                as a ``cosponsor''), training, information, and 
                education to small business concerns, except 
                that the Administration shall--
                            (I) take such actions as it 
                        determines to be appropriate to ensure 
                        that--
                                    (aa) the Administration 
                                receives appropriate 
                                recognition and publicity;
                                    (bb) the cooperation does 
                                not constitute or imply an 
                                endorsement by the 
                                Administration of any product 
                                or service of the cosponsor;
                                    (cc) unnecessary promotion 
                                of the products or services of 
                                the cosponsor is avoided; and
                                    (dd) utilization of any one 
                                cosponsor in a marketing area 
                                is minimized; and
                            (II) develop an agreement, executed 
                        on behalf of the Administration by an 
                        employee of the Administration in 
                        Washington, the District of Columbia, 
                        that provides, at a minimum, that--
                                    (aa) any printed material 
                                to announce the cosponsorship 
                                or to be distributed at the 
                                cosponsored activity, shall be 
                                approved in advance by the 
                                Administration;
                                    (bb) the terms and 
                                conditions of the cooperation 
                                shall be specified;
                                    (cc) only minimal charges 
                                may be imposed on any small 
                                business concern to cover the 
                                direct costs of providing the 
                                assistance;
                                    (dd) the Administration may 
                                provide to the cosponsorship 
                                mailing labels, but not lists 
                                of names and addresses of small 
                                business concerns compiled by 
                                the Administration;
                                    (ee) all printed materials 
                                containing the names of both 
                                the Administration and the 
                                cosponsor shall include a 
                                prominent disclaimer that the 
                                cooperation does not constitute 
                                or imply an endorsement by the 
                                Administration of any product 
                                or service of the cosponsor; 
                                and
                                    (ff) the Administration 
                                shall ensure that it receives 
                                appropriate recognition in all 
                                cosponsorship printed 
                                materials.
            (B) To establish, conduct, and publicize, and to 
        recruit, select, and train volunteers for (and to enter 
        into contracts, grants, or cooperative agreements 
        therefor), volunteer programs, including a Service 
        Corps of Retired Executives (SCORE) and an Active Corps 
        of Executive (ACE) for the purposes of section 
        8(b)(1)(A) of this Act. To facilitate the 
        implementation of such volunteer programs the 
        Administration shall maintain at its headquarters and 
        pay the salaries, benefits, and expenses of a volunteer 
        and professional staff to manage and oversee the 
        program. Any such payments made pursuant to this 
        subparagraph shall be effective only to such extent or 
        in such amounts as are provided in advance in 
        appropriation Acts. Notwithstanding any other provision 
        of law, SCORE may solicit cash and in-kind 
        contributions from the private sector to be used to 
        carry out its functions under this Act, and may use 
        payments made by the Administration pursuant to this 
        subparagraph for such solicitation and the management 
        of the contributions received.
            (C) To allow any individual or group of persons 
        participating with it in furtherance of the purposes of 
        subparagraphs (A) and (B) to use the Administration's 
        office facilities and related material and services as 
        the Administration deems appropriate, including 
        clerical and stenographic service:
                    (i) such volunteers, while carrying out 
                activities under section 8(b)(1) of this Act 
                shall be deemed Federal employees for the 
                purposes of the Federal tort claims provisions 
                in title 28, United States Code; and for the 
                purposes of subchapter I of chapter 81 of title 
                5, United States Code (relative to compensation 
                to Federal employees for work injuries) shall 
                be deemed civil employees of the United States 
                within the meaning of the term ``employee'' as 
                defined in section 8101 of title 5, United 
                States Code, and the provisions of that 
                subchapter shall apply except that in computing 
                compensation benefits for disability or death, 
                the monthly pay of a volunteer shall be deemed 
                that received under the entrance salary for a 
                grade GS-11 employee:
                    (ii) the Administrator is authorized to 
                reimburse such volunteers for all necessary 
                out-of-pocket expenses incident to their 
                provision of services under this Act, or in 
                connection with attendance at meetings 
                sponsored by the Administration, or for the 
                cost of malpractice insurance, as the 
                Administrator shall determine, in accordance 
                with regulations which he or she shall 
                prescribe, and, while they are carrying out 
                such activities away from their homes or 
                regular places of business, for travel expenses 
                (including per diem in lieu of subsistence) as 
                authorized by section 5703 of title 5, United 
                States Code, for individuals serving without 
                pay; and
                    (iii) such volunteers shall in no way 
                provide services to a client of such 
                Administration with a delinquent loan 
                outstanding, except upon a specific request 
                signed by such client for assistance in 
                connection with such matter.
            (D) Notwithstanding any other provision of law, no 
        payment for supportive services or reimbursement of 
        out-of-pocket expenses made to persons serving pursuant 
        to section 8(b)(1) of this Act shall be subject to any 
        tax or charge or be treated as wages or compensation 
        for the purposes of unemployment, disability, 
        retirement, public assistance, or similar benefit 
        payments, or minimum wage laws.
            (E) In carrying out its functions under 
        subparagraph (A), to make grants (including contracts 
        and cooperative agreements) to any public or private 
        institution of higher education for the establishment 
        and operation of a small business institute, which 
        shall be used to provide business counseling and 
        assistance to small business concerns through the 
        activities of students enrolled at the institution, 
        which students shall be entitled to receive educational 
        credits for their activities.
            (F) Notwithstanding any other provision of law and 
        pursuant to regulations which the Administrator shall 
        provide, counsel may be employed and counsel fees, 
        court costs, bail, and other expenses incidental to the 
        defense of volunteers may be paid in judicial or 
        Administrative proceedings arising directly out of the 
        performance of activities pursuant to section 8(b)(1) 
        of this Act, as amended (15 U.S.C. 637(b)(1)) to which 
        volunteers have been made parties.
            (G) In carrying out its functions under this Act 
        and to carry out the activities authorized by title IV 
        of the Women's Business Ownership Act of 1988, the 
        Administration is authorized to accept, in the name of 
        the Administration, and employ or dispose of in 
        furtherance of the purposes of this Act, any money or 
        property, real, personal, or mixed, tangible, or 
        intangible, received by gift, devise, bequest, or 
        otherwise; and, further, to accept gratuitous services 
        and facilities.
            (2) to make a complete inventory of all productive 
        facilities of small-business concerns or to arrange for 
        such inventory to be made by any other governmental 
        agency which has the facilities. In making any such 
        inventory, the appropriate agencies in the several 
        States may be requested to furnish an inventory of the 
        productive facilities of small-business concerns in 
        each respective State if such an inventory is available 
        or in prospect;
            (3) to coordinate and to ascertain the means by 
        which the productive capacity of small-business 
        concerns can be most effectively utilized;
            (4) to consult and cooperative with officers of the 
        Government having procurement or property disposal 
        powers, in order to utilize the potential productive 
        capacity of plants operated by small-business concerns;
            (5) to obtain information as to methods and 
        practices which Government prime contractors utilize in 
        letting subcontracts and to take action to encourage 
        the letting of subcontracts by prime contractors to 
        small-business concerns at prices and on conditions and 
        terms which are fair and equitable;
            (6) to determine within any industry the concerns, 
        firms, persons, corporations, partnerships, 
        cooperatives, or other business enterprises which are 
        to be designated ``small-business concerns'' for the 
        purpose of effectuating the provisions of this Act. To 
        carry out this purpose the Administrator, when 
        requested to do so, shall issue in response to each 
        such request an appropriate certificate certifying an 
        individual concern as a ``small-business concern'' in 
        accordance with the criteria expressed in this Act. Any 
        such certificate shall be subject to revocation when 
        the concern covered thereby ceases to be a ``small-
        business concern.'' Offices of the Government having 
        procurement or lending powers, or engaging in the 
        disposal of Federal property or allocating materials or 
        supplies, or promulgating regulations affecting the 
        distribution of materials or supplies, shall accept as 
        conclusive the Administration's determination as to 
        which enterprises are to be designated ``small-business 
        concerns'', as authorized and directed under this 
        paragraph;
            (7)(A) to certify to Government procurement 
        officers, and officers engaged in the sale and disposal 
        of Federal property, with respect to all elements of 
        responsibility, including, but not limited to, 
        capability, competency, capacity, credit, integrity, 
        perseverance, and tenacity, of any small business 
        concern or group of such concerns to receive and 
        perform a specific Government contract. A Government 
        procurement officer or an officer engaged in the sale 
        and disposal of Federal property may not, for any 
        reason specified in the preceding sentence, preclude 
        any small business concern or group of such concerns 
        from being awarded such contract without referring the 
        matter for a final disposition to the Administration.
            (B) if a Government procurement officer finds that 
        an otherwise qualified small business concern may be 
        ineligible due to the provisions of section 35(a) of 
        title 41, United States Code (the Walsh-Healey Public 
        Contracts Act), he shall notify the Administration in 
        writing of such finding. The Administration shall 
        review such finding and shall either dismiss it and 
        certify the small business concern to be an eligible 
        Government contractor for a specific Government 
        contract or if it concurs in the finding, forward the 
        matter to the Secretary of Labor for final disposition, 
        in which case the Administration may certify the small 
        business concern only if the Secretary of Labor finds 
        the small business concern not to be in violation.
            (C) in any case in which a small business concern 
        or group of such concerns has been certified by the 
        Administration pursuant to (A) or (B) to be a 
        responsible or eligible Government contractor as to a 
        specific Government contract, the officers of the 
        Government having procurement or property disposal 
        powers are directed to accept such certification as 
        conclusive, and shall let such Government contract to 
        such concern or group of concerns without requiring it 
        to meet any other requirement of responsibility or 
        eligibility. Notwithstanding the first sentence of this 
        subparagraph, the Administration may not establish an 
        exemption from referral or notification or refuse to 
        accept a referral or notification from a Government 
        procurement officer made pursuant to subparagraph (A) 
        or (B) of this paragraph, but nothing in this paragraph 
        shall require the processing of an application for 
        certification if the small business concern to which 
        the referral pertains declines to have the application 
        processed.
            (8) to obtain from any Federal department, 
        establishment, or agency engaged in procurement or in 
        the financing of procurement or production such reports 
        concerning the letting of contracts and subcontracts 
        and the making of loans to business concerns as it may 
        deem pertinent in carrying out its functions under this 
        Act;
            (9) to obtain from any Federal department, 
        establishment, or agency engaged in the disposal of 
        Federal property such reports concerning the 
        solicitation of bids, time of sale, or otherwise as it 
        may deem pertinent in carrying out its functions under 
        this Act;
            (10) to obtain from suppliers of materials 
        information pertaining to the method of filling orders 
        and the bases for allocating their supply, whenever it 
        appears that any small business is unable to obtain 
        materials from its normal sources;
            (11) to make studies and recommendations to the 
        appropriate Federal agencies to insure that a fair 
        proportion of the total purchases and contracts for 
        property and services for the Government be placed with 
        small-business enterprises, to insure that a fair 
        proportion of Government contacts for research and 
        development be placed with small-business concerns, to 
        insure that a fair proportion of the total sales of 
        Government property be made to small-business concerns, 
        and to insure a fair and equitable share of materials, 
        supplies, and equipment to small-business concerns;
            (12) to consult and cooperate with all Government 
        agencies for the purpose of insuring that small-
        business concerns shall receive fair and reasonable 
        treatment from such agencies;
            (13) to establish such advisory boards and 
        committees as may be necessary to achieve the purposes 
        of this Act and of the Small Business Investment Act of 
        1958; to call meetings of such boards and committees 
        from time to time; to pay the transportation expenses 
        and a per diem allowance in accordance with section 
        5703 of title 5, United States Code, to the members of 
        such boards and committees for travel and subsistence 
        expenses incurred at the request of the Administration 
        in connection with travel to points more than fifty 
        miles distant from the homes of such members in 
        attending the meetings of such boards and committees; 
        and to rent temporarily, within the District of 
        Columbia or elsewhere, such hotel or other 
        accommodations as are needed to facilitate the conduct 
        of such meetings;
            (14) to provide at the earliest practicable time 
        such information and assistance as may be appropriate, 
        including information concerning eligibility for loans 
        under section 7(b)(3), to local public agencies (as 
        defined in section 110(h) of the Housing Act of 1949) 
        and to small-business concerns to be displaced by 
        federally aided urban renewal projects in order to 
        assist such small-business concerns in reestablishing 
        their operations;
            (15) to disseminate, without regard to the 
        provisions of section 3204 of title 39, United States 
        Code, data and information, in such form as it shall 
        deem appropriate, to public agencies, private 
        organizations, and the general public;
            (16) to make studies of matters materially 
        affecting the competitive strength of small business, 
        and of the effect on small business of Federal laws, 
        programs, and regulations, and to make recommendations 
        to the appropriate Federal agency or agencies for the 
        adjustment of such programs and regulations to the 
        needs of small business; and
            (17) to make grants to, and enter into contracts 
        and cooperative agreements with, educational 
        institutions, private businesses, veterans' nonprofit 
        community-based organizations, and Federal, State, and 
        local departments and agencies for the establishment 
        and implementation of outreach programs for disabled 
        veterans (as defined in section 4211(3) of title 38, 
        United States Code), veterans, and members of a reserve 
        component of the Armed Forces.
    (c) [Reserved.]
    (d)(1) It is the policy of the United States that small 
business concerns, small business concerns owned and controlled 
by veterans, 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, shall have the 
maximum practicable opportunity to participate in the 
performance of contracts let by any Federal agency, including 
contracts and subcontracts for subsystems, assemblies, 
components, and related services for major systems. It is 
further the policy of the United States that its prime 
contractors establish procedures to ensure the timely payment 
of amounts due pursuant to the terms of their subcontracts with 
small business concerns, small business concerns owned and 
controlled by veterans, 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.
    (2) The clause stated in paragraph (3) shall be included in 
all contracts let by any Federal agency except any contract 
which--
            (A) does not exceed the simplified acquisition 
        threshold;
            (B) including all subcontracts under such contracts 
        will be performed entirely outside of any State, 
        territory, or possession of the United States, the 
        District of Columbia, or the Commonwealth of Puerto 
        Rico; or
            (C) is for services which are personal in nature.
    (3) The clause required by paragraph (2) shall be as 
follows:
            (A) It is the policy of the United States that 
        small business concerns, small business concerns owned 
        and controlled by veterans, 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 shall 
        have the maximum practicable opportunity to participate 
        in the performance of contracts let by any Federal 
        agency, including contracts and subcontracts for 
        subsystems, assemblies, components, and related 
        services for major systems. It is further the policy of 
        the United States that its prime contractors establish 
        procedures to ensure the timely payment of amounts due 
        pursuant to the terms of their subcontracts with small 
        business concerns, small business concerns owned and 
        controlled by veterans, 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.
            (B) The contractor hereby agrees to carry out this 
        policy in the awarding of subcontracts to the fullest 
        extent consistent with the efficient performance of 
        this contract. The contractor further agrees to 
        cooperate in any studies or surveys as may be conducted 
        by the United States Small Business Administration or 
        the awarding agency of the United States as may be 
        necessary to determine the extent of the contractor's 
        compliance with this clause.
            (C) As used in this contract, the term ``small 
        business concern'' shall mean a small business as 
        defined pursuant to section 3 of the Small Business Act 
        and relevant regulations promulgated pursuant thereto. 
        The term ``small business concern owned and controlled 
        by socially and economically disadvantaged 
        individuals'' shall mean a small business concern--
                    (i) which is at least 51 per centum owned 
                by one or more socially and economically 
                disadvantaged individuals; or, in the case of 
                any publicly owned business, at least 51 per 
                centum of the stock of which is owned by one or 
                more socially and economically disadvantaged 
                individuals; and
                    (ii) whose management and daily business 
                operations are controlled by one or more of 
                such individuals.
        The contractor shall presume that socially and 
        economically disadvantaged individuals include Black 
        Americans, Hispanic Americans, Native Americans, Asian 
        Pacific Americans, and other minorities, or any other 
        individual found to be disadvantaged by the 
        Administration pursuant to section 8(a) of the Small 
        Business Act.
            (D) The term ``small business concern owned and 
        controlled by women'' shall mean a small business 
        concern--
                    (i) which is at least 51 per centum owned 
                by one or more women; or, in the case of any 
                publicly owned business, at least 51 per centum 
                of the stock of which is owned by one or more 
                women; and
                    (ii) whose management and daily business 
                operations are controlled by one or more women.
            (E) The term ``small business concern owned and 
        controlled by veterans'' shall mean a small business 
        concern--
                    (i) which is at least 51 per centum owned 
                by one or more eligible veterans; or, in the 
                case of any publicly owned business, at least 
                51 per centum of the stock of which is owned by 
                one or more veterans; and
                    (ii) whose management and daily business 
                operations are controlled by such veterans. The 
                contractor shall treat as veterans all 
                individuals who are veterans within the meaning 
                of the term under section 3(q) of the Small 
                Business Act.
            (F) Contractors acting in good faith may rely on 
        written representations by their subcontractors 
        regarding their status as either a small business 
        concern, small business concern owned and controlled by 
        veterans, small business concern owned and controlled 
        by service-disabled veterans, a small business concern 
        owned and controlled by socially and economically 
        disadvantaged individuals, or a small business concern 
        owned and controlled by women.
            (G) In this contract, the term ``qualified HUBZone 
        small business concern'' has the meaning given that 
        term in section 31(b).
            (H) In this contract, the term ``small business 
        concern owned and controlled by service-disabled 
        veterans'' has the meaning given that term in section 
        3(q).
    (4)(A) Each solicitation of an offer for a contract to be 
let by a Federal agency which is to be awarded pursuant to the 
negotiated method of procurement and which may exceed 
$1,000,000, in the case of a contract for the construction of 
any public facility, or $500,000, in the case of all other 
contracts, shall contain a clause notifying potential offering 
companies of the provisions of this subsection relating to 
contracts awarded pursuant to the negotiated method of 
procurement.
    (B) Before the award of any contract to be let, or any 
amendment or modification to any contract let, by any Federal 
agency which--
            (i) is to be awarded, or was let, pursuant to the 
        negotiated method of procurement,
            (ii) is required to include the clause stated in 
        paragraph (3),
            (iii) may exceed $1,000,000 in the case of a 
        contract for the construction of any public facility, 
        or $500,000 in the case of all other contracts, and
            (iv) which offers subcontracting possibilities,
the apparent successful offeror shall negotiate with the 
procurement authority a subcontracting plan which incorporates 
the information prescribed in paragraph (6). The subcontracting 
plan shall be included in and made a material part of the 
contract.
    (C) If, within the time limit prescribed in regulations of 
the Federal agency concerned, the apparent successful offeror 
fails to negotiate the subcontracting plan required by this 
paragraph, such offeror shall become ineligible to be awarded 
the contract. Prior compliance of the offeror with other such 
subcontracting plans shall be considered by the Federal agency 
in determining the responsibility of that offeror for the award 
of the contract.
    (D) No contract shall be awarded to any offeror unless the 
procurement authority determines that the plan to be negotiated 
by the offeror pursuant to this paragraph provides the maximum 
practicable opportunity for small business concerns, qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by veterans, small business concerns owned and 
controlled by service-disabled veterans, 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 
the contract.
    (E) Notwithstanding any other provisions of law, every 
Federal agency, in order to encourage subcontracting 
opportunities for small business concerns, small business 
concerns owned and controlled by veterans, small business 
concerns owned and controlled by service-disabled veterans, 
qualified HUBZone small business concerns, and small business 
concerns owned and controlled by the socially and economically 
disadvantaged individuals as defined in paragraph (3) of this 
subsection and for small business concerns owned and controlled 
by women, is hereby authorized to provide such incentives as 
such Federal agency may deem appropriate in order to encourage 
such subcontracting opportunities as may be commensurate with 
the efficient and economical performance of the contact: 
Provided, That, this subparagraph shall apply only to contracts 
let pursuant to the negotiated method of procurement.
    (F)(i) Each contract subject to the requirements of this 
paragraph or paragraph (5) shall contain a clause for the 
payment of liquidated damages upon a finding that a prime 
contractor has failed to make a good faith effort to comply 
with the requirements imposed on such contractor by this 
subsection.
    (ii) The contractor shall be afforded an opportunity to 
demonstrate a good faith effort regarding compliance prior to 
the contracting officer's final decision regarding the 
impositon of damages and the amount thereof. The final decision 
of a contracting officer regarding the contractor's obligation 
to pay such damages, or the amounts thereof, shall be subject 
to the Contract Disputes Act of 1978 (41 U.S.C. 601-613).
    (iii) Each agency shall ensure that the goals offered by 
the apparent successful bidder or offeror are attainable in 
relation to--
            (I) the subcontracting opportunities available to 
        the contractor, commensurate with the efficient and 
        economical performance of the contract;
            (II) the pool of eligible subcontractors available 
        to fulfill the subcontracting opportunities; and
            (III) the actual performance of such contractor in 
        fulfilling the subcontracting goals specified in prior 
        plans.
            (G) The following factors shall be designated by 
        the Federal agency as significant factors for purposes 
        of evaluating offers for a bundled contract where the 
        head of the agency determines that the contract offers 
        a significant opportunity for subcontracting:
                    (i) A factor that is based on the rate 
                provided under the subcontracting plan for 
                small business participation in the performance 
                of the contract.
                    (ii) For the evaluation of past performance 
                of an offeror, a factor that is based on the 
                extent to which the offeror attained applicable 
                goals for small business participation in the 
                performance of contracts.
    (5)(A) Each solicitation of a bid for any contract to be 
let, or any amendment or modification to any contract let, by 
any Federal agency which--
            (i) is to be awarded pursuant to the formal 
        advertising method of procurement,
            (ii) is required to contain the clause stated in 
        paragraph (3) of this subsection,
            (iii) may exceed $1,000,000 in the case of a 
        contract for the construction of any public facility, 
        or $500,000, in the case of all other contracts, and
            (iv) offers subcontracting possibilities,
shall contain a clause requiring any bidder who is selected to 
be awarded a contract to submit to the Federal agency concerned 
a subcontracting plan which incorporates the information 
prescribed in paragraph (6).
    (B) If, within the time limit prescribed in regulations of 
the Federal agency concerned, the bidder selected to be awarded 
the contract fails to submit the subcontracting plan required 
by this paragraph, such bidder shall become ineligible to be 
awarded the contract. Prior compliance of the bidder with other 
such subcontracting plans shall be considered by the Federal 
agency in determining the responsibility of such bidder for the 
award of the contract. The subcontracting plan of the bidder 
awarded the contract shall be included in and made a material 
part of the contract.
    (6) Each subcontracting plan required under paragraph (4) 
or (5) shall include--
            (A) percentage goals for the utilization as 
        subcontractors of small business concerns, small 
        business concerns owned and controlled by veterans, 
        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;
            (B) the name of an individual within the employ of 
        the offeror or bidder who will administer the 
        subcontracting program of the offeror or bidder and a 
        description of the duties of such individual;
            (C) a description of the efforts the offeror or 
        bidder will take to assure that small business 
        concerns, small business concerns owned and controlled 
        by veterans, 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 will 
        have an equitable opportunity to compete for 
        subcontracts;
            (D) assurances that the offeror or bidder will 
        include the clause required by paragraph (2) of this 
        subsection in all subcontracts which offer further 
        subcontracting opportunities, and that the offeror or 
        bidder will require all subcontractors (except small 
        business concerns) who receive subcontracts in excess 
        of $1,000,000 in the case of a contract for the 
        construction of any public facility, or in excess of 
        $500,000 in the case of all other contracts, to adopt a 
        plan similar to the plan required under paragraph (4) 
        or (5), and assurances at a minimum that the offeror or 
        bidder, and all subcontractors required to maintain 
        subcontracting plans pursuant to this paragraph, will--
                    (i) review and approve subcontracting plans 
                submitted by their subcontractors;
                    (ii) monitor subcontractor compliance with 
                their approved subcontracting plans;
                    (iii) ensure that subcontracting reports 
                are submitted by their subcontractors when 
                required;
                    (iv) acknowledge receipt of their 
                subcontractors' reports;
                    (v) compare the performance of their 
                subcontractors to subcontracting plans and 
                goals; and
                    (vi) discuss performance with 
                subcontractors when necessary to ensure their 
                subcontractors make a good faith effort to 
                comply with their subcontracting plans;
            (E) assurances that the offeror or bidder will 
        submit such periodic reports and cooperate in any 
        studies or surveys as may be required by the Federal 
        agency or the Administration in order to determine the 
        extent of compliance by the offeror or bidder with the 
        subcontracting plan;
            (F) a recitation of the types of records the 
        successful offeror or bidder will maintain to 
        demonstrate procedures which have been adopted to 
        comply with the requirements and goals set forth in 
        this plan, including the establishment of source lists 
        of small business concerns, small business concerns 
        owned and controlled by veterans, 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; and efforts to identify and award subcontracts 
        to such small business concerns;
            (G) a recitation of the types of records the 
        successful offeror or bidder will maintain to 
        demonstrate that procedures have been adopted to 
        substantiate the credit the successful offeror or 
        bidder will elect to receive under paragraph (16)(A);
            (H) a recitation of the types of records the 
        successful offeror or bidder will maintain to 
        demonstrate procedures which have been adopted to 
        ensure subcontractors at all tiers comply with the 
        requirements and goals set forth in the plan 
        established in accordance with subparagraph (D) of this 
        paragraph, including--
                    (i) the establishment of source lists of 
                small business concerns, small business 
                concerns owned and controlled by veterans, 
                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; and
                    (ii) efforts to identify and award 
                subcontracts to such small business concerns; 
                and
            (I) a representation that the offeror or bidder 
        will--
                    (i) make a good faith effort to acquire 
                articles, equipment, supplies, services, or 
                materials, or obtain the performance of 
                construction work from the small business 
                concerns used in preparing and submitting to 
                the contracting agency the bid or proposal, in 
                the same amount and quality used in preparing 
                and submitting the bid or proposal; and
                    (ii) provide to the contracting officer a 
                written explanation if the offeror or bidder 
                fails to acquire articles, equipment, supplies, 
                services, or materials or obtain the 
                performance of construction work as described 
                in clause (i).
            (7) The head of the contracting agency shall ensure 
        that--
                    (A) the agency collects and reports data on 
                the extent to which contractors of the agency 
                meet the goals and objectives set forth in 
                subcontracting plans submitted pursuant to this 
                subsection; and
                    (B) the agency periodically reviews data 
                collected and reported pursuant to subparagraph 
                (A) for the purpose of ensuring that such 
                contractors comply in good faith with the 
                requirements of this subsection and 
                subcontracting plans submitted by the 
                contractors pursuant to this subsection.
    (8) The provisions of paragraphs (4), (5), and (6) shall 
not apply to offerors or bidders who are small business 
concerns.
            (9) Material breach.--The failure of any contractor 
        or subcontractor to comply in good faith with--
                    (A) the clause contained in paragraph (3) 
                of this subsection,
                    (B) any plan required of such contractor 
                pursuant to the authority of this subsection to 
                be included in its contract or subcontract, or
                    (C) assurances provided under paragraph 
                (6)(E),
        shall be a material breach of such contract or 
        subcontract and may be considered in any past 
        performance evaluation of the contractor.
    (10) Nothing contained in this subsection shall be 
construed to supersede the requirements of Defense Manpower 
Policy Number 4A (32A CFR Chap. 1) or any successor policy.
    (11) In the case of contracts within the provisions of 
paragraphs (4), (5), and (6), the Administration is authorized 
to--
            (A) assist Federal agencies and businesses in 
        complying with their responsibilities under the 
        provisions of this subsection, including the 
        formulation of subcontracting plans pursuant to 
        paragraph (4);
            (B) review any solicitation for any contract to be 
        let pursuant to paragraphs (4) and (5) to determine the 
        maximum practicable opportunity for small business 
        concerns, small business concerns owned and controlled 
        by veterans, 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 as subcontractors in the performance of any 
        contract resulting from any solicitation, and to submit 
        its findings, which shall be advisory in nature, to the 
        appropriate Federal agency; and
            (C) evaluate compliance with subcontracting plans 
        as a supplement to evaluations performed by the 
        contracting agency, either on a contract-by-contract 
        basis or, in the case of contractors having multiple 
        contracts, on an aggregate basis.
    (12) For purposes of determining the attainment of a 
subcontract utilization goal under any subcontracting plan 
entered into with any executive agency pursuant to this 
subsection, a mentor firm providing development assistance to a 
protege firm under the Mentor-Protege Program established under 
section 4902 of title 10, United States Code, shall be granted 
credit for such assistance in accordance with subsection (f) of 
such section.
    (13) Payment of Subcontractors.--
            (A) Definition.--In this paragraph, the term 
        ``covered contract'' means a contract relating to which 
        a prime contractor is required to develop a 
        subcontracting plan under paragraph (4) or (5).
            (B) Notice.--
                    (i) In general.--A prime contractor for a 
                covered contract shall notify in writing the 
                contracting officer for the covered contract if 
                the prime contractor pays a reduced price to a 
                subcontractor for goods and services upon 
                completion of the responsibilities of the 
                subcontractor or the payment to a subcontractor 
                is more than 90 days past due for goods or 
                services provided for the covered contract for 
                which the Federal agency has paid the prime 
                contractor.
                    (ii) Contents.--A prime contractor shall 
                include the reason for the reduction in a 
                payment to or failure to pay a subcontractor in 
                any notice made under clause (i).
            (C) Performance.--A contracting officer for a 
        covered contract shall consider the unjustified failure 
        by a prime contractor to make a full or timely payment 
        to a subcontractor in evaluating the performance of the 
        prime contractor.
            (D) Control of funds.--If the contracting officer 
        for a covered contract determines that a prime 
        contractor has a history of unjustified, untimely 
        payments to contractors, the contracting officer shall 
        record the identity of the contractor in accordance 
        with the regulations promulgated under subparagraph 
        (E).
            (E) Regulations.--Not later than 1 year after the 
        date of enactment of this paragraph, the Federal 
        Acquisition Regulatory Council established under 
        section 25(a) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 421(a)) shall amend the Federal 
        Acquisition Regulation issued under section 25 of such 
        Act to--
                    (i) describe the circumstances under which 
                a contractor may be determined to have a 
                history of unjustified, untimely payments to 
                subcontractors;
                    (ii) establish a process for contracting 
                officers to record the identity of a contractor 
                described in clause (i); and
                    (iii) require the identity of a contractor 
                described in clause (i) to be incorporated in, 
                and made publicly available through, the 
                Federal Awardee Performance and Integrity 
                Information System, or any successor thereto.
            (14) An offeror for a covered contract that intends 
        to identify a small business concern as a potential 
        subcontractor in a bid or proposal for the contract, or 
        in a plan submitted pursuant to this subsection in 
        connection with the contract, shall notify the small 
        business concern prior to making such identification.
            (15) The Administrator shall establish a reporting 
        mechanism that allows a subcontractor or potential 
        subcontractor to report fraudulent activity or bad 
        faith by a contractor with respect to a subcontracting 
        plan submitted pursuant to this subsection.
            (16) Credit for certain small business concern 
        subcontractors.--
                    (A) In general.--For purposes of 
                determining whether or not a prime contractor 
                has attained the percentage goals specified in 
                paragraph (6)--
                            (i) if the subcontracting goals 
                        pertain only to a single contract with 
                        a Federal agency, the prime contractor 
                        may elect to receive credit for small 
                        business concerns performing as first 
                        tier subcontractors or subcontractors 
                        at any tier pursuant to the 
                        subcontracting plans required under 
                        paragraph (6)(D) in an amount equal to 
                        the total dollar value of any 
                        subcontracts awarded to such small 
                        business concerns; and
                            (ii) if the subcontracting goals 
                        pertain to more than one contract with 
                        one or more Federal agencies, or to one 
                        contract with more than one Federal 
                        agency, the prime contractor may only 
                        receive credit for first tier 
                        subcontractors that are small business 
                        concerns.
                    (B) Collection and review of data on 
                subcontracting plans.--The head of each 
                contracting agency shall ensure that the 
                agency--
                            (i) collects and reports data on 
                        the extent to which prime contractors 
                        of the agency meet the goals and 
                        objectives set forth in subcontracting 
                        plans submitted pursuant to this 
                        subsection; and
                            (ii) periodically reviews data 
                        collected and reported pursuant to 
                        clause (i) for the purpose of ensuring 
                        that such contractors comply in good 
                        faith with the requirements of this 
                        subsection.
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to allow a Federal 
                agency to establish a goal for an number of 
                subcontracts with a subcontractor at any tier 
                for a prime contractor otherwise eligible to 
                receive credit under this paragraph.
            (17) Past performance ratings for certain small 
        business subcontractors.--Upon request by a small 
        business concern that performed as a first tier 
        subcontractor on a covered contract (as defined in 
        paragraph (13)(A)), the prime contractor for such 
        covered contract shall submit to such small business 
        concern a record of past performance for such small 
        business concern with respect to such covered contract. 
        If a small business concern elects to use such record 
        of past performance, a contracting officer shall 
        consider such record of past performance when 
        evaluating an offer for a prime contract made by such 
        small business concern.
    (e)(1) Except as provided in subsection (g)--
            (A) an executive agency intending to--
                    (i) solicit bids or proposals for a 
                contract for property or services for a price 
                expected to exceed $25,000; or
                    (ii) place an order, expected to exceed 
                $25,000, under a basic agreement, basis 
                ordering agreement, or similar arrangement,
        shall publish a notice described in subsection (f);
            (B) an executive agency intending to solicit bids 
        or proposals for a contract for property or services 
        shall post, for a period of not less than ten days, in 
        a public place at the contracting office issuing the 
        solicitation a notice of solicitation described in 
        subsection (f)--
                    (i) in the case of an executive agency 
                other than the Department of Defense, if the 
                contract is for a price expected to exceed 
                $10,000, but not to exceed $25,000; and
                    (ii) in the case of the Department of 
                Defense, if the contract is for a price 
                expected to exceed $5,000, but not to exceed 
                $25,000; and
            (C) an executive agency awarding a contract for 
        property or services for a price exceeding $100,000, or 
        placing an order referred to in clause (A)(ii) 
        exceeding $100,000, shall furnish for publication by 
        the Secretary of Commerce a notice announcing the award 
        or order if there is likely to be any subcontract under 
        such contract or order.
    (2)(A) A notice of solicitation required to be published 
under paragraph (1) may be published--
            (i) by electronic means that meet the accessibility 
        requirements under section 18(a)(7) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 416(a)(7)); 
        or
            (ii) by the Secretary of Commerce in the Commerce 
        Business Daily.
    (B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received 
under this subsection for publication by that means.
    (3) Whenever an executive agency is required by paragraph 
(1)(A) to publish a notice of solicitation, such executive 
agency may not--
            (A) issue the solicitation earlier than 15 days 
        after the date on which the notice is published; or
            (B) in the case of a contract or order estimated to 
        be greater than the simplified acquisition threshold, 
        establish a deadline for the submission of all bids or 
        proposals in response to the notice required by 
        paragraph (1)(A) that--
                    (i) in the case of an order under a basic 
                agreement, basic ordering agreement, or similar 
                arrangement, is earlier than the date 30 days 
                after the date the notice required by paragraph 
                (1)(A)(ii) is published;
                    (ii) in the case of a solicitation for 
                research and development, is earlier than the 
                date 45 days after the date the notice required 
                by paragraph (1)(A)(i) is published; or
                    (iii) in any other case, is earlier than 
                the date 30 days after the date the 
                solicitation is issued.
    (f) Each notice of solicitation required by subparagraph 
(A) or (B) of subsection (e)(1) shall include--
            (1) an accurate description of the property or 
        services to be contracted for, which description (A) 
        shall not be unnecessarily restrictive of competition, 
        and (B) shall include, as appropriate, the agency 
        nomenclature, National Stock Number or other part 
        number, and a brief description of the item's form, 
        fit, or function, physical dimensions, predominant 
        material of manufacture, or similar information that 
        will assist a prospective contractor to make an 
        informed business judgment as to whether a copy of the 
        solicitation should be requested;
            (2) provisions that--
                    (A) state whether the technical data 
                required to respond to the solicitation will 
                not be furnished as part of such solicitation, 
                and identify the source in the Government, if 
                any, from which the technical data may be 
                obtained; and
                    (B) state whether an offeror, its product, 
                or service must meet a qualification 
                requirement in order to be eligible for award, 
                and, if so, identify the office from which a 
                qualification requirement may be obtained;
            (3) the name, business address, and telephone 
        number of the contracting officer;
            (4) a statement that all responsible sources may 
        submit a bid, proposal, or quotation (as appropriate) 
        which shall be considered by the agency;
            (5) in the case of a procurement using procedures 
        other than competitive procedures, a statement of the 
        reason justifying the use of such procedures and the 
        identity of the intended source; and
            (6) in the case of a contract in an amount 
        estimated to be greater than $25,000 but not greater 
        than the simplified acquisition threshold--
                    (A) a description of the procedures to be 
                used in awarding the contract; and
                    (B) a statement specifying the periods for 
                prospective offerors and the contracting 
                officer to take the necessary preaward and 
                award actions.
    (g)(1) A notice is not required under subsection (e)(1) 
if--
            (A) the proposed procurement is for an amount not 
        greater than the simplified acquisition threshold and 
        is to be conducted by--
                    (i) using widespread electronic public 
                notice of the solicitation in a form that 
                allows convenient and universal user access 
                through a single, Government-wide point of 
                entry; and
                    (ii) permitting the public to respond to 
                the solicitation electronically.
            (B) the notice would disclose the executive 
        agency's needs and the disclosure of such needs would 
        compromise the national security;
            (C) the proposed procurement would result from 
        acceptance of--
                    (i) any unsolicited proposal that 
                demonstrates a unique and innovative research 
                concept and the publication of any notice of 
                such unsolicited research proposal would 
                disclose the originality of thought or 
                innovativeness of the proposal or would 
                disclose proprietary information associated 
                with the proposal; or
                    (ii) a proposal submitted under section 9 
                of this Act;
            (D) the procurement is made against an order placed 
        under a requirements contract;
            (E) the procurement is made for perishable 
        subsistence supplies;
            (F) the procurement is for utility services, other 
        than telecommunication services, and only one source is 
        available; or
            (G) the procurement is for the services of an 
        expert for use in any litigation or dispute (including 
        preparation for any foreseeable litigation or dispute) 
        that involves or could involve the Federal Government 
        in any trial, hearing, or proceeding before any court, 
        administrative tribunal, or agency, or in any part of 
        an alternative dispute resolution process, whether or 
        not the expert is expected to testify.
    (2) The requirements of subsection (a)(1)(A) do not apply 
to any procurement under conditions described in paragraph (2), 
(3), (4), (5), or (7) of section 303(c) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253(c)) or 
paragraph (2), (3), (4), (5), and (7) of section 3204(a) of 
title 10, United States Code.
    (3) The requirements of subsection (a)(1)(A) shall not 
apply in the case of any procurement for which the head of the 
executive agency makes a determination in writing, after 
consultation with the Administrator for Federal Procurement 
Policy and the Administrator of the Small Business 
Administration, that it is not appropriate or reasonable to 
publish a notice before issuing a solicitation.
    (h)(1) An executive agency may not award a contract using 
procedures other than competitive procedures unless--
            (A) except as provided in paragraph (2), a written 
        justification for the use of such procedures has been 
        approved--
                    (i) in the case of a contract for an amount 
                exceeding $100,000 (but equal to or less than 
                $1,000,000), by the advocate for competition 
                for the procuring activity (without further 
                delegation);
                    (ii) in the case of a contract for an 
                amount exceeding $1,000,000 (but equal to or 
                less than $10,000,000), by the head of the 
                procuring activity or a delegate who, if a 
                member of the Armed Forces, is a general or 
                flag officer, or, if a civilian, is serving in 
                a position in grade GS-16 or above under the 
                General Schedule (or in a comparable or higher 
                position under another schedule); or
                    (iii) in the case of a contract for an 
                amount exceeding $10,000,000, by the senior 
                procurement executive of the agency designated 
                pursuant to section 16(3) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 
                414(3)) (without further delegation); and
            (B) all other requirements applicable to the use of 
        such procedures under title III of the Federal Property 
        and Administrative Services Act of 1949 (41 U.S.C. 251 
        et sq.) or sections 3201 through 3205 of title 10, 
        United States Code, as appropriate, have been 
        satisfied.
    (2) The same exceptions as are provided in section 
303(f)(2) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(f)(2)) or paragraphs (3) and (4) of 
section 3204(e) of title 10, United States Code, shall apply 
with respect to the requirements of paragraph (1)(A) of this 
subsection in the same manner as such exceptions apply to the 
requirements of section 303(f)(1) of such Act or paragraphs (3) 
and (4) of section 3204(e) of such title, as appropriate.
    (i) An executive agency shall make available to any 
business concern, or the authorized representative of such 
concern, the complete solicitation package for any on-going 
procurement announced pursuant to a notice under subsection 
(e). An executive agency may require the payment of a fee, not 
exceeding the actual cost of duplication, for a copy of such 
package.
    (j) For purposes of this section, the term ``executive 
agency'' has the meaning provided such term in section 4(1) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
403(1)).
    (k) Notices of Subcontracting Opportunities.--
            (1) In general.--Notices of subcontracting 
        opportunities may be submitted for publication on the 
        appropriate Federal Web site (as determined by the 
        Administrator) by--
                    (A) a business concern awarded a contract 
                by an executive agency subject to subsection 
                (e)(1)(C); and
                    (B) a business concern that is a 
                subcontractor or supplier (at any tier) to such 
                contractor having a subcontracting opportunity 
                in excess of $10,000.
            (2) Content of notice.--The notice of a 
        subcontracting opportunity shall include--
                    (A) a description of the business 
                opportunity that is comparable to the 
                description specified in paragraphs (1), (2), 
                (3), and (4) of subsection (f); and
                    (B) the due date for receipt of offers.
    (l) Management Assistance for Small Businesses Affected by 
Military Operations.--
            (1) In general.--The Administration shall utilize, 
        as appropriate, its entrepreneurial development and 
        management assistance programs, including programs 
        involving State or private sector partners, to provide 
        business counseling and training to any small business 
        concern adversely affected by the deployment of units 
        of the Armed Forces of the United States in support of 
        a period of military conflict.
            (2) Definition of period of military conflict.--In 
        this subsection, the term ``period of military 
        conflict'' means--
                    (A) a period of war declared by the 
                Congress;
                    (B) a period of national emergency declared 
                by the Congress or by the President; or
                    (C) a period of a contingency operation, as 
                defined in section 101(a) of title 10, United 
                States Code.
    (m) Procurement Program for Women-owned Small Business 
Concerns.--
            (1) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Contracting officer.--The term 
                ``contracting officer'' has the meaning given 
                such term in section 27(f)(5) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 
                423(f)(5)).
                    (B) Small business concern owned and 
                controlled by women.--The term ``small business 
                concern owned and controlled by women'' has the 
                meaning given such term in section 3(n), except 
                that ownership shall be determined without 
                regard to any community property law.
            (2) Authority to restrict competition.--In 
        accordance with this subsection, a contracting officer 
        may restrict competition for any contract for the 
        procurement of goods or services by the Federal 
        Government to small business concerns owned and 
        controlled by women, if--
                    (A) each of the concerns is not less than 
                51 percent owned by one or more women who are 
                economically disadvantaged (and such ownership 
                is determined without regard to any community 
                property law);
                    (B) the contracting officer has a 
                reasonable expectation that two or more small 
                business concerns owned and controlled by women 
                will submit offers for the contract;
                    (C) the contract is for the procurement of 
                goods or services with respect to an industry 
                identified by the Administrator pursuant to 
                [paragraph (3)] paragraph (4);
                    (D) in the estimation of the contracting 
                officer, the contract award can be made at a 
                fair and reasonable price; and
                    (E) each of the concerns is certified by a 
                Federal agency, a State government, the 
                Administrator, or a national certifying entity 
                approved by the Administrator as a small 
                business concern owned and controlled by women.
            (3) Waiver.--With respect to a small business 
        concern owned and controlled by women, the 
        Administrator may waive subparagraph (2)(A) if the 
        Administrator determines that the concern is in an 
        industry in which small business concerns owned and 
        controlled by women are substantially underrepresented.
            (4) Identification of industries.--The 
        Administrator shall conduct a study to identify 
        industries in which small business concerns owned and 
        controlled by women are underrepresented with respect 
        to Federal procurement contracting.
            (5) Enforcement; penalties.--
                    (A) Verification of eligibility.--In 
                carrying out this subsection, the Administrator 
                shall establish procedures relating to--
                            (i) the filing, investigation, and 
                        disposition by the Administration of 
                        any challenge to the eligibility of a 
                        small business concern to receive 
                        assistance under this subsection 
                        (including a challenge, filed by an 
                        interested party, relating to the 
                        veracity of a certification made or 
                        information provided to the 
                        Administration by a small business 
                        concern under paragraph (2)(E)); and
                            (ii) verification by the 
                        Administrator of the accuracy of any 
                        certification made or information 
                        provided to the Administration by a 
                        small business concern under paragraph 
                        (2)(E).
                    (B) Examinations.--The procedures 
                established under subparagraph (A) may provide 
                for program examinations (including random 
                program examinations) by the Administrator of 
                any small business concern making a 
                certification or providing information to the 
                Administrator under paragraph (2)(E).
                    (C) Penalties.--In addition to the 
                penalties described in section 16(d), any small 
                business concern that is determined by the 
                Administrator to have misrepresented the status 
                of that concern as a small business concern 
                owned and controlled by women for purposes of 
                this subsection, shall be subject to--
                            (i) section 1001 of title 18, 
                        United States Code; and
                            (ii) sections 3729 through 3733 of 
                        title 31, United States Code.
            (6) Provision of data.--Upon the request of the 
        Administrator, the head of any Federal department or 
        agency shall promptly provide to the Administrator such 
        information as the Administrator determines to be 
        necessary to carry out this subsection.
            (7) Authority for sole source contracts for 
        economically disadvantaged small business concerns 
        owned and controlled by women.--A contracting officer 
        may award a sole source contract under this subsection 
        to any small business concern owned and controlled by 
        women described in paragraph (2)(A) and certified under 
        paragraph (2)(E) if--
                    (A) such concern is determined to be a 
                responsible contractor with respect to 
                performance of the contract opportunity and the 
                contracting officer does not have a reasonable 
                expectation that 2 or more businesses described 
                in paragraph (2)(A) will submit offers;
                    (B) the anticipated award price of the 
                contract (including options) will not exceed--
                            (i) $7,000,000, in the case of a 
                        contract opportunity assigned a 
                        standard industrial classification code 
                        for manufacturing; or
                            (ii) $4,000,000, in the case of any 
                        other contract opportunity; and
                    (C) in the estimation of the contracting 
                officer, the contract award can be made at a 
                fair and reasonable price.
            (8) Authority for sole source contracts for small 
        business concerns owned and controlled by women in 
        substantially underrepresented industries.--A 
        contracting officer may award a sole source contract 
        under this subsection to any small business concern 
        owned and controlled by women certified under paragraph 
        (2)(E) that is in an industry in which small business 
        concerns owned and controlled by women are 
        substantially underrepresented (as determined by the 
        Administrator under paragraph (3)) if--
                    (A) such concern is determined to be a 
                responsible contractor with respect to 
                performance of the contract opportunity and the 
                contracting officer does not have a reasonable 
                expectation that 2 or more businesses in an 
                industry that has received a waiver under 
                paragraph (3) will submit offers;
                    (B) the anticipated award price of the 
                contract (including options) will not exceed--
                            (i) $7,000,000, in the case of a 
                        contract opportunity assigned a 
                        standard industrial classification code 
                        for manufacturing; or
                            (ii) $4,000,000, in the case of any 
                        other contract opportunity; and
                    (C) in the estimation of the contracting 
                officer, the contract award can be made at a 
                fair and reasonable price.
            (9) Report.--Not later than May 1, 2024, and 
        annually thereafter, the Administrator 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 small 
        business concerns owned and controlled by women. Such 
        report shall include, for the fiscal year preceding the 
        date of the report, the following:
                    (A) The number of applications for 
                certification as a small business concern owned 
                and controlled by women that have sufficient 
                information for the Administrator to make a 
                certification determination, disaggregated by--
                            (i) the number of applications 
                        certified;
                            (ii) the number of applications 
                        denied; and
                            (iii) the number of applications 
                        for which a determination has not been 
                        made.
                    (B) The number of concerns certified as 
                small business concerns owned and controlled by 
                women by a national certifying entity approved 
                by the Administrator.
                    (C) The amount of fees, if any, charged by 
                each national certifying entity for such 
                certification.
                    (D) The total dollar amount and total 
                percentage of prime contracts awarded to small 
                business concerns owned and controlled by women 
                pursuant to paragraph (2) or pursuant to a 
                waiver granted under paragraph (3).
                    (E) The total dollar amount and total 
                percentage of prime contracts awarded to small 
                business concerns owned and controlled by women 
                pursuant to paragraphs (7) and (8).
                    (F) With respect to a contract incorrectly 
                awarded pursuant to this subsection because it 
                was awarded based on an industry in which small 
                business concerns owned and controlled by women 
                are not underrepresented--
                            (i) the number of such contracts;
                            (ii) the Federal agencies that 
                        issued such contracts; and
                            (iii) any steps taken by 
                        Administrator to train the personnel of 
                        such Federal agency on the use of the 
                        authority provided under this 
                        subsection.
                    (G) With respect to an examination 
                described in paragraph (5)(B)--
                            (i) the number of examinations due 
                        because of recertification requirements 
                        and the actual number of such 
                        examinations conducted; and
                            (ii) the number of examinations 
                        conducted for any other reason.
                    (H) The number of small business concerns 
                owned and controlled by women that were found 
                to be ineligible to be awarded a contract under 
                this subsection as a result of an examination 
                conducted pursuant to paragraph (5)(B) or 
                failure to request an examination pursuant to 
                section 127.400 of title 13, Code of Federal 
                Regulations (or a successor rule).
                    (I) The number of small business concerns 
                owned and controlled by women that were 
                decertified.
                    (J) The total number of small business 
                concerns owned and controlled by women.
                    (K) Any other information the Administrator 
                determines necessary.
    (n) Business Grants and Cooperative Agreements.--
            (1) In general.--In accordance with this 
        subsection, the Administrator may make grants to and 
        enter into cooperative agreements with any coalition of 
        private entities, public entities, or any combination 
        of private and public entities--
                    (A) to expand business-to-business 
                relationships between large and small 
                businesses; and
                    (B) to provide businesses, directly or 
                indirectly, with online information and a 
                database of companies that are interested in 
                mentor-protege programs or community-based, 
                statewide, or local business development 
                programs.
            (2) Matching requirement.--Subject to subparagraph 
        (B), the Administrator may make a grant to a coalition 
        under paragraph (1) only if the coalition provides for 
        activities described in paragraph (1)(A) or (1)(B) an 
        amount, either in kind or in cash, equal to the grant 
        amount.
            (3) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $6,600,000, to remain available until 
        expended, for each of fiscal years 2001 through 2006.

           *       *       *       *       *       *       *


SEC. 31. HUBZONE PROGRAM.

    (a) In General.--There is established within the 
Administration a program (to be known as the HUBZone program) 
to be carried out by the Administrator to provide for Federal 
contracting assistance, including promoting economic 
development in economically distressed areas (as defined in 
section 7(m)(11)), to qualified HUBZone small business concerns 
in accordance with this section.
    (b) Definitions Relating to HUBZones.--In this section:
            (1) Historically underutilized business zone.--The 
        terms ``historically underutilized business zone'' or 
        ``HUBZone'' mean any area located within 1 or more--
                    (A) qualified census tracts;
                    (B) qualified nonmetropolitan counties;
                    (C) lands within the external boundaries of 
                an Indian reservation;
                    (D) redesignated areas;
                    (E) base closure areas;
                    (F) qualified disaster areas; or
                    (G) a Governor-designated covered area.
            (2) Hubzone small business concern.--The term 
        ``HUBZone small business concern'' means--
                    (A) a small business concern that is at 
                least 51 percent owned and controlled by United 
                States citizens;
                    (B) a small business concern that is--
                            (i) an Alaska Native Corporation 
                        owned and controlled by Natives (as 
                        determined pursuant to section 29(e)(1) 
                        of the Alaska Native Claims Settlement 
                        Act (43 U.S.C. 1626(e)(1))); or
                            (ii) a direct or indirect 
                        subsidiary corporation, joint venture, 
                        or partnership of an Alaska Native 
                        Corporation qualifying pursuant to 
                        section 29(e)(1) of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 
                        1626(e)(1)), if that subsidiary, joint 
                        venture, or partnership is owned and 
                        controlled by Natives (as determined 
                        pursuant to section 29(e)(2)) of the 
                        Alaska Native Claims Settlement Act (43 
                        U.S.C. 1626(e)(2)));
                    (C) a small business concern--
                            (i) that is wholly owned by one or 
                        more Indian tribal governments, or by a 
                        corporation that is wholly owned by one 
                        or more Indian tribal governments; or
                            (ii) that is owned in part by one 
                        or more Indian tribal governments, or 
                        by a corporation that is wholly owned 
                        by one or more Indian tribal 
                        governments, if all other owners are 
                        either United States citizens or small 
                        business concerns;
                    (D) a small business concern--
                            (i) that is wholly owned by one or 
                        more Native Hawaiian Organizations (as 
                        defined in section 8(a)(15)), or by a 
                        corporation that is wholly owned by one 
                        or more Native Hawaiian Organizations; 
                        or
                            (ii) that is owned in part by one 
                        or more Native Hawaiian Organizations, 
                        or by a corporation that is wholly 
                        owned by one or more Native Hawaiian 
                        Organizations, if all other owners are 
                        either United States citizens or small 
                        business concerns;
                    (E) a small business concern that is--
                            (i) wholly owned by a community 
                        development corporation that has 
                        received financial assistance under 
                        part 1 of subchapter A of the Community 
                        Economic Development Act of 1981 (42 
                        U.S.C. 9805 et seq.); or
                            (ii) owned in part by one or more 
                        community development corporations, if 
                        all other owners are either United 
                        States citizens or small business 
                        concerns; or
                    (F) a small business concern that is--
                            (i) a small agricultural 
                        cooperative organized or incorporated 
                        in the United States;
                            (ii) wholly owned by 1 or more 
                        small agricultural cooperatives 
                        organized or incorporated in the United 
                        States; or
                            (iii) owned in part by 1 or more 
                        small agricultural cooperatives 
                        organized or incorporated in the United 
                        States, if all owners are small 
                        business concerns or United States 
                        citizens.
            (3) Qualified areas.--
                    (A) Qualified census tract.--
                            (i) In general.--The term 
                        ``qualified census tract'' means a 
                        census tract that is covered by the 
                        definition of ``qualified census 
                        tract'' in section 42(d)(5)(B)(ii) of 
                        the Internal Revenue Code of 1986 and 
                        that is reflected in an online tool 
                        prepared by the Administrator described 
                        under subsection (d)(7).
                            (ii) Exception.--For any 
                        metropolitan statistical area in the 
                        Commonwealth of Puerto Rico, the term 
                        ``qualified census tract'' has the 
                        meaning given that term in section 
                        42(d)(5)(B)(ii) of the Internal Revenue 
                        Code of 1986 as applied without regard 
                        to subclause (II) of such section and 
                        that is reflected in the online tool 
                        described under clause (i), except that 
                        this clause shall only apply--
                                    (I) 10 years after the date 
                                that the Administrator 
                                implements this clause, or
                                    (II) the date on which the 
                                Financial Oversight and 
                                Management Board for the 
                                Commonwealth of Puerto Rico 
                                created by the Puerto Rico 
                                Oversight, Management, and 
                                Economic Stability Act ceases 
                                to exist,
                        whichever event occurs first.
                    (B) Qualified nonmetropolitan county.--The 
                term ``qualified nonmetropolitan county'' means 
                any county that is reflected in the online tool 
                described under subparagraph (A)(i) and--
                            (i) that was not located in a 
                        metropolitan statistical area (as 
                        defined in section 143(k)(2)(B) of the 
                        Internal Revenue Code of 1986) at the 
                        time of the most recent census taken 
                        for purposes of selecting qualified 
                        census tracts under section 
                        42(d)(5)(B)(ii) of the Internal Revenue 
                        Code of 1986; and
                            (ii) in which--
                                    (I) the median household 
                                income is less than 80 percent 
                                of the State median household 
                                income, based on a 5-year 
                                average of the available data 
                                from the Bureau of the Census 
                                of the Department of Commerce;
                                    (II) the unemployment rate 
                                is not less than 140 percent of 
                                the average unemployment rate 
                                for the United States or for 
                                the State in which such county 
                                is located, whichever is less, 
                                based on a 5-year average of 
                                the available data from the 
                                Secretary of Labor; or
                                    (III) there is located a 
                                difficult development area, as 
                                designated by the Secretary of 
                                Housing and Urban Development 
                                in accordance with section 
                                42(d)(5)(B)(iii) of the 
                                Internal Revenue Code of 1986, 
                                within Alaska, Hawaii, or any 
                                territory or possession of the 
                                United States outside the 48 
                                contiguous States.
                    (C) Redesignated area.--The term 
                ``redesignated area'' means any census tract 
                that ceases to be qualified under subparagraph 
                (A) and any nonmetropolitan county that ceases 
                to be qualified under subparagraph (B) for a 
                period of 3 years after the date on which the 
                census tract or nonmetropolitan county ceased 
                to be so qualified.
                    (D) Base closure area.--
                            (i) In general.--Subject to clause 
                        (ii), the term ``base closure area'' 
                        means--
                                    (I) lands within the 
                                external boundaries of a 
                                military installation that were 
                                closed through a privatization 
                                process under the authority 
                                of--
                                            (aa) the Defense 
                                        Base Closure and 
                                        Realignment Act of 1990 
                                        (part A of title XXIX 
                                        of division B of Public 
                                        Law 101-510; 10 U.S.C. 
                                        2687 note);
                                            (bb) title II of 
                                        the Defense 
                                        Authorization 
                                        Amendments and Base 
                                        Closure and Realignment 
                                        Act (Public Law 100-
                                        526; 10 U.S.C. 2687 
                                        note);
                                            (cc) section 2687 
                                        of title 10, United 
                                        States Code; or
                                            (dd) any other 
                                        provision of law 
                                        authorizing or 
                                        directing the Secretary 
                                        of Defense or the 
                                        Secretary of a military 
                                        department to dispose 
                                        of real property at the 
                                        military installation 
                                        for purposes relating 
                                        to base closures of 
                                        redevelopment, while 
                                        retaining the authority 
                                        to enter into a 
                                        leaseback of all or a 
                                        portion of the property 
                                        for military use;
                                    (II) the census tract or 
                                nonmetropolitan county in which 
                                the lands described in 
                                subclause (I) are wholly 
                                contained;
                                    (III) a census tract or 
                                nonmetropolitan county the 
                                boundaries of which intersect 
                                the area described in subclause 
                                (I); and
                                    (IV) a census tract or 
                                nonmetropolitan county the 
                                boundaries of which are 
                                contiguous to the area 
                                described in subclause (II) or 
                                subclause (III).
                            (ii) Limitation.--A census tract or 
                        nonmetropolitan county described in 
                        clause (i) shall be considered to be a 
                        base closure area for a period 
                        beginning on the date on which the 
                        Administrator designates such census 
                        tract or nonmetropolitan county as a 
                        base closure area and ending on the 
                        date on which the base closure area 
                        ceases to be a qualified census tract 
                        under subparagraph (A) or a qualified 
                        nonmetropolitan county under 
                        subparagraph (B) in accordance with the 
                        online tool prepared by the 
                        Administrator described under 
                        subsection (d)(7), except that such 
                        period may not be less than 8 years.
                            (iii) Definitions.--In this 
                        subparagraph:
                                    (I) Census tract.--The term 
                                ``census tract'' means a census 
                                tract delineated by the United 
                                States Bureau of the Census in 
                                the most recent decennial 
                                census that is not located in a 
                                nonmetropolitan county and does 
                                not otherwise qualify as a 
                                qualified census tract.
                                    (II) Nonmetropolitan 
                                county.--The term 
                                ``nonmetropolitan county'' 
                                means a county that was not 
                                located in a metropolitan 
                                statistical area (as defined in 
                                section 143(k)(2)(B) of the 
                                Internal Revenue Code of 1986) 
                                at the time of the most recent 
                                census taken for purposes of 
                                selecting qualified census 
                                tracts and does not otherwise 
                                qualify as a qualified 
                                nonmetropolitan county.
                    (E) Qualified disaster area.--
                            (i) In general.--Subject to clause 
                        (ii), the term ``qualified disaster 
                        area'' means any census tract or 
                        nonmetropolitan county located in an 
                        area where a major disaster has 
                        occurred or an area in which a 
                        catastrophic incident has occurred if 
                        such census tract or nonmetropolitan 
                        county ceased to be qualified under 
                        subparagraph (A) or (B), as applicable, 
                        during the period beginning 5 years 
                        before the date on which the President 
                        declared the major disaster or the 
                        catastrophic incident occurred.
                            (ii) Duration.--A census tract or 
                        nonmetropolitan county shall be 
                        considered to be a qualified disaster 
                        area under clause (i) only for the 
                        period of time ending on the date the 
                        area ceases to be a qualified census 
                        tract under subparagraph (A) or a 
                        qualified nonmetropolitan county under 
                        subparagraph (B), in accordance with 
                        the online tool prepared by the 
                        Administrator described under 
                        subsection (d)(7) and beginning--
                                    (I) in the case of a major 
                                disaster, on the date on which 
                                the President declared the 
                                major disaster for the area in 
                                which the census tract or 
                                nonmetropolitan county, as 
                                applicable, is located; or
                                    (II) in the case of a 
                                catastrophic incident, on the 
                                date on which the catastrophic 
                                incident occurred in the area 
                                in which the census tract or 
                                nonmetropolitan county, as 
                                applicable, is located.
                            (iii) Definitions.--In this 
                        subparagraph:
                                    (I) Major disaster.--The 
                                term ``major disaster'' means a 
                                major disaster declared by the 
                                President under section 401 of 
                                the Robert T. Stafford Disaster 
                                Relief and Emergency Assistance 
                                Act (42 U.S.C. 5170).
                                    (II) Other definitions.--
                                The terms ``census tract'' and 
                                ``nonmetropolitan county'' have 
                                the meanings given such terms 
                                in subparagraph (D)(iii).
                    (F) Governor-designated covered area.--
                            (i) In general.--A ``Governor-
                        designated covered area'' means a 
                        covered area that the Administrator has 
                        designated by approving a petition 
                        described under clause (ii).
                            (ii) Petition.--For a covered area 
                        to receive a designation as a Governor-
                        designated covered area, the Governor 
                        of the State in which the covered area 
                        is wholly contained shall include such 
                        covered area in a petition to the 
                        Administrator requesting such a 
                        designation. In reviewing a request for 
                        designation included in such a 
                        petition, the Administrator may 
                        consider--
                                    (I) the potential for job 
                                creation and investment in the 
                                covered area;
                                    (II) the demonstrated 
                                interest of small business 
                                concerns in the covered area to 
                                be designated as a Governor-
                                designated covered area;
                                    (III) how State and local 
                                government officials have 
                                incorporated the covered area 
                                into an economic development 
                                strategy; and
                                    (IV) if the covered area 
                                was a HUBZone before becoming 
                                the subject of the petition, 
                                the impact on the covered area 
                                if the Administrator did not 
                                approve the petition.
                            (iii) Limitations.--Each calendar 
                        year, a Governor may submit not more 
                        than 1 petition described under clause 
                        (ii). Such petition shall include all 
                        covered areas in a State for which the 
                        Governor seeks designation as a 
                        Governor-designated covered area, 
                        except that the total number of covered 
                        areas included in such petition may not 
                        exceed 10 percent of the total number 
                        of covered areas in the State.
                            (iv) Certification.--If the 
                        Administrator grants a petition 
                        described under clause (ii), the 
                        Governor of the Governor-designated 
                        covered area shall, not less frequently 
                        than annually, submit data to the 
                        Administrator certifying that each 
                        Governor-designated covered area 
                        continues to meet the requirements of 
                        clause (v)(I).
                            (v) Definitions.--In this 
                        subparagraph:
                                    (I) Covered area.--The term 
                                ``covered area'' means an area 
                                in a State--
                                            (aa) that is 
                                        located outside of an 
                                        urbanized area, as 
                                        determined by the 
                                        Bureau of the Census;
                                            (bb) with a 
                                        population of not more 
                                        than 50,000; and
                                            (cc) for which the 
                                        average unemployment 
                                        rate is not less than 
                                        120 percent of the 
                                        average unemployment 
                                        rate of the United 
                                        States or of the State 
                                        in which the covered 
                                        area is located, 
                                        whichever is less, 
                                        based on the most 
                                        recent data available 
                                        from the American 
                                        Community Survey 
                                        conducted by the Bureau 
                                        of the Census.
                                    (II) Governor.--The term 
                                ``Governor'' means the chief 
                                executive of a State.
                                    (III) State.--The term 
                                ``State'' means each of the 
                                several States, the District of 
                                Columbia, the Commonwealth of 
                                Puerto Rico, the United States 
                                Virgin Islands, Guam, the 
                                Commonwealth of the Northern 
                                Mariana Islands, and American 
                                Samoa.
            (4) Qualified HUBZone small business concern.--The 
        term ``qualified HUBZone small business concern'' means 
        a HUBZone small business concern that has been 
        certified by the Administrator in accordance with the 
        procedures described in this section.
            (5) Native american small business concerns.--
                    (A) Alaska native corporation.--The term 
                ``Alaska Native Corporation'' has the same 
                meaning as the term ``Native Corporation'' in 
                section 3 of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1602).
                    (B) Alaska native village.--The term 
                ``Alaska Native Village'' has the same meaning 
                as the term ``Native village'' in section 3 of 
                the Alaska Native Claims Settlement Act (43 
                U.S.C. 1602).
                    (C) Indian reservation.--The term ``Indian 
                reservation''--
                            (i) has the same meaning as the 
                        term ``Indian country'' in section 1151 
                        of title 18, United States Code, except 
                        that such term does not include--
                                    (I) any lands that are 
                                located within a State in which 
                                a tribe did not exercise 
                                governmental jurisdiction on 
                                the date of the enactment of 
                                this paragraph, unless that 
                                tribe is recognized after that 
                                date of the enactment by either 
                                an Act of Congress or pursuant 
                                to regulations of the Secretary 
                                of the Interior for the 
                                administrative recognition that 
                                an Indian group exists as an 
                                Indian tribe (part 83 of title 
                                25, Code of Federal 
                                Regulations); and
                                    (II) lands taken into trust 
                                or acquired by an Indian tribe 
                                after the date of the enactment 
                                of this paragraph if such lands 
                                are not located within the 
                                external boundaries of an 
                                Indian reservation or former 
                                reservation or are not 
                                contiguous to the lands held in 
                                trust or restricted status on 
                                that date of the enactment; and
                            (ii) in the State of Oklahoma, 
                        means lands that--
                                    (I) are within the 
                                jurisdictional areas of an 
                                Oklahoma Indian tribe (as 
                                determined by the Secretary of 
                                the Interior); and
                                    (II) are recognized by the 
                                Secretary of the Interior as 
                                eligible for trust land status 
                                under part 151 of title 25, 
                                Code of Federal Regulations (as 
                                in effect on the date of the 
                                enactment of this paragraph).
            (6) Agricultural commodity.--The term 
        ``agricultural commodity'' has the same meaning as in 
        section 102 of the Agricultural Trade Act of 1978 (7 
        U.S.C. 5602).
    (c) Eligible Contracts.--
            (1) Definitions.--In this subsection--
                    (A) the term ``contracting officer'' has 
                the meaning given that term in section 27(f)(5) 
                of the Office of Federal Procurement Policy Act 
                (41 U.S.C. 423(f)(5)); and
                    (B) the term ``full and open competition'' 
                has the meaning given that term in section 4 of 
                the Office of Federal Procurement Policy Act 
                (41 U.S.C. 403).
            (2) Authority of contracting officer.--
                    (A) Sole source contracts.--A contracting 
                officer may award sole source contracts under 
                this section to any qualified HUBZone small 
                business concern, if--
                            (i) the qualified HUBZone small 
                        business concern is determined to be a 
                        responsible contractor with respect to 
                        performance of such contract 
                        opportunity, and the contracting 
                        officer does not have a reasonable 
                        expectation that 2 or more qualified 
                        HUBZone small business concerns will 
                        submit offers for the contracting 
                        opportunity;
                            (ii) the anticipated award price of 
                        the contract (including options) will 
                        not exceed--
                                    (I) $7,000,000, in the case 
                                of a contract opportunity 
                                assigned a standard industrial 
                                classification code for 
                                manufacturing; or
                                    (II) $3,000,000, in the 
                                case of all other contract 
                                opportunities; and
                            (iii) in the estimation of the 
                        contracting officer, the contract award 
                        can be made at a fair and reasonable 
                        price.
                    (B) Restricted competition.--A contract 
                opportunity may be awarded pursuant to this 
                section on the basis of competition restricted 
                to qualified HUBZone small business concerns if 
                the contracting officer has a reasonable 
                expectation that not less than 2 qualified 
                HUBZone small business concerns will submit 
                offers and that the award can be made at a fair 
                market price.
                    (C) Appeals.--Not later than 5 days from 
                the date the Administration is notified of a 
                procurement officer's decision not to award a 
                contract opportunity under this section to a 
                qualified HUBZone small business concern, the 
                Administrator may notify the contracting 
                officer of the intent to appeal the contracting 
                officer's decision, and within 15 days of such 
                date the Administrator may file a written 
                request for reconsideration of the contracting 
                officer's decision with the Secretary of the 
                department or agency head.
            (3) Price evaluation preference in full and open 
        competitions.--
                    (A) In general.--Subject to subparagraph 
                (B), in any case in which a contract is to be 
                awarded on the basis of full and open 
                competition, the price offered by a qualified 
                HUBZone small business concern shall be deemed 
                as being lower than the price offered by 
                another offeror (other than another small 
                business concern), if the price offered by the 
                qualified HUBZone small business concern is not 
                more than 10 percent higher than the price 
                offered by the otherwise lowest, responsive, 
                and responsible offeror.
                    (B) Procurement of commodities.--For 
                purchases by the Secretary of Agriculture of 
                agricultural commodities, the price evaluation 
                preference shall be--
                            (i) 10 percent, for the portion of 
                        a contract to be awarded that is not 
                        greater than 25 percent of the total 
                        volume being procured for each 
                        commodity in a single invitation;
                            (ii) 5 percent, for the portion of 
                        a contract to be awarded that is 
                        greater than 25 percent, but not 
                        greater than 40 percent, of the total 
                        volume being procured for each 
                        commodity in a single invitation; and
                            (iii) zero, for the portion of a 
                        contract to be awarded that is greater 
                        than 40 percent of the total volume 
                        being procured for each commodity in a 
                        single invitation.
                    (C) Procurement of commodities for 
                international food aid export operations.--The 
                price evaluation preference for purchases of 
                agricultural commodities by the Secretary of 
                Agriculture for export operations through 
                international food aid programs administered by 
                the Farm Service Agency shall be 5 percent on 
                the first portion of a contract to be awarded 
                that is not greater than 20 percent of the 
                total volume of each commodity being procured 
                in a single invitation.
                    (D) Treatment of preference.--A contract 
                awarded to a HUBZone small business concern 
                under a preference described in subparagraph 
                (B) shall not be counted toward the fulfillment 
                of any requirement partially set aside for 
                competition restricted to small business 
                concerns.
            (4) Relationship to other contracting 
        preferences.--A procurement may not be made from a 
        source on the basis of a preference provided in 
        paragraph (2) or (3), if the procurement would 
        otherwise be made from a different source under section 
        4124 or 4125 of title 18, United States Code, or the 
        Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
    (d) Eligibility Requirements; Enforcement.--
            (1) Certification.--In order to be eligible for 
        certification by the Administrator as a qualified 
        HUBZone small business concern, a HUBZone small 
        business concern shall submit documentation to the 
        Administrator stating that--
                    (A) at the time of certification and at 
                each examination conducted pursuant to 
                paragraph (4), the principal office of the 
                concern is located in a HUBZone and not fewer 
                than 35 percent of its employees reside in a 
                HUBZone;
                    (B) the concern will attempt to maintain 
                the applicable employment percentage under 
                subparagraph (A) during the performance of any 
                contract awarded to such concern on the basis 
                of a preference provided under subsection (c); 
                and
                    (C) the concern will ensure that the 
                requirements of section 46 are satisfied with 
                respect to any subcontract entered into by such 
                concern pursuant to a contract awarded under 
                this section.
            (2) Verification.--In carrying out this section, 
        the Administrator shall establish procedures relating 
        to--
                    (A) the filing, investigation, and 
                disposition by the Administration of any 
                challenge to the eligibility of a HUBZone small 
                business concern to receive assistance under 
                this section (including a challenge, filed by 
                an interested party, relating to the veracity 
                of documentation provided to the Administration 
                by such a concern under paragraph (1)); and
                    (B) verification by the Administrator of 
                the accuracy of any documentation provided by a 
                HUBZone small business concern under paragraph 
                (1).
            (3) Timing.--The Administrator shall verify the 
        eligibility of a HUBZone small business concern using 
        the procedures described in paragraph (2) within a 
        reasonable time and not later than 60 days after the 
        date on which the Administrator receives sufficient and 
        complete documentation from a HUBZone small business 
        concern under paragraph (1).
            (4) Recertification.--Not later than 3 years after 
        the date that such HUBZone small business concern was 
        certified as a qualified HUBZone small business 
        concern, and every 3 years thereafter, the 
        Administrator shall verify the accuracy of any 
        documentation provided by a HUBZone small business 
        concern under paragraph (1) to determine if such 
        HUBZone small business concern remains a qualified 
        HUBZone small business concern.
            (5) Examinations.--The Administrator shall conduct 
        program examinations of qualified HUBZone small 
        business concerns, using a risk-based analysis to 
        select which concerns are examined, to ensure that any 
        concern examined meets the requirements of paragraph 
        (1).
            (6) Loss of certification.--A HUBZone small 
        business concern that, based on the results of an 
        examination conducted pursuant to paragraph (5) no 
        longer meets the requirements of paragraph (1), shall 
        have 30 days to submit documentation to the 
        Administrator to be eligible to be certified as a 
        qualified HUBZone small business concern. During the 
        30-day period, such concern may not compete for or be 
        awarded a contract under this section. If such concern 
        fails to meet the requirements of paragraph (1) by the 
        last day of the 30-day period, the Administrator shall 
        not certify such concern as a qualified HUBZone small 
        business concern.
            (7) Hubzone online tool.--
                    (A) In general.--The Administrator shall 
                develop a publicly accessible online tool that 
                depicts HUBZones. Such online tool shall be 
                updated--
                            (i) with respect to HUBZones 
                        described under subparagraphs (A) and 
                        (B) of subsection (b)(3), beginning on 
                        January 1, 2020, and every 5 years 
                        thereafter;
                            (ii) with respect to a HUBZone 
                        described under subsection (b)(3)(C), 
                        immediately after the area becomes, or 
                        ceases to be, a redesignated area; and
                            (iii) with respect to HUBZones 
                        described under subparagraphs (D), (E), 
                        and (F) of subsection (b)(3), 
                        immediately after an area is designated 
                        as a base closure area, qualified 
                        disaster area, or Governor-designated 
                        covered area, respectively.
                    (B) Data.--The online tool required under 
                subparagraph (A) shall clearly and 
                conspicuously provide access to the data used 
                by the Administrator to determine whether or 
                not an area is a HUBZone in the year in which 
                the online tool was prepared.
                    (C) Notification of update.--The 
                Administrator shall include in the online tool 
                a notification of the date on which the online 
                tool, and the data used to create the online 
                tool, will be updated.
            (8) List of qualified hubzone small business 
        concerns.--The Administrator shall establish and 
        publicly maintain on the internet a list of qualified 
        HUBZone small business concerns that shall--
                    (A) to the extent practicable, include the 
                name, address, and type of business with 
                respect to such concern;
                    (B) be updated by the Administrator not 
                less than annually; and
                    (C) be provided upon request to any Federal 
                agency or other entity.
            (9) Provision of data.--Upon the request of the 
        Administrator, the Secretary of Labor, the 
        Administrator of the Federal Emergency Management 
        Agency, the Secretary of Housing and Urban Development, 
        and the Secretary of the Interior (or the Assistant 
        Secretary for Indian Affairs), shall promptly provide 
        to the Administrator such information as the 
        Administrator determines to be necessary to carry out 
        this subsection.
            (10) Penalties.--In addition to the penalties 
        described in section 16(d), any small business concern 
        that is determined by the Administrator to have 
        misrepresented the status of that concern as a 
        ``qualified HUBZone small business concern'' for 
        purposes of this section shall be subject to liability 
        for fraud, including section 1001 of title 18, United 
        States Code, and sections 3729 through 3733 of title 
        31, United States Code.
    (e) Performance Metrics.--
            (1) In general.--Not later than 1 year after the 
        date of the enactment of this subsection, the 
        Administrator shall publish performance metrics 
        designed to measure the success of the HUBZone program 
        established under this section in meeting the program's 
        objective of promoting economic development in 
        economically distressed areas (as defined in section 
        7(m)(11)).
            (2) Collecting and managing hubzone data.--The 
        Administrator shall develop processes to incentivize 
        each regional office of the Administration to collect 
        and manage data on HUBZones within the geographic area 
        served by such regional office.
            (3) Report.--Not later than 90 days after the last 
        day of each fiscal year, 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 analyzing the 
        data from the performance metrics established under 
        this subsection and including--
                    (A) the number of HUBZone small business 
                concerns that lost certification as a qualified 
                HUBZone small business concern because of the 
                results of an examination performed under 
                subsection (d)(5); and
                    (B) the number of those concerns that did 
                not submit documentation to be recertified 
                under subsection (d)(6).
    [(f)] (g) Authorization of Appropriations.--There is 
authorized to be appropriated to carry out the program 
established by this section $10,000,000 for each of fiscal 
years 2020 through 2025.
    (e) Report.--Not later than May 1, 2024, and annually 
thereafter, the Administrator 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 HUBZone small business concerns. Such report shall 
include, for the fiscal year preceding the date of the report, 
the following:
            (1) The number of applications for certification as 
        a qualified HUBZone small business concern that have 
        sufficient information for the Administrator to make a 
        certification determination, disaggregated by--
                    (A) the number of applications certified;
                    (B) the number of applications denied; and
                    (C) the number of applications for which a 
                determination has not been made.
            (2) The total dollar amount and total percentage of 
        prime contracts awarded to qualified HUBZone small 
        business concerns pursuant to this section.
            (3) The total dollar amount and percent of sole 
        source contracts awarded to qualified HUBZone small 
        business concerns under subsection (c)(2)(A).
            (4) With respect to an examination described in 
        subsection (d)(5)--
                    (A) the number of examinations due because 
                of recertification requirements and the actual 
                number of such examinations conducted; and
                    (B) the number of examinations conducted 
                for any other reason.
            (5) The number of HUBZone small business concerns 
        that were found to be ineligible to be awarded a 
        contract under this subsection as a result of an 
        examination conducted pursuant to subsection (d)(5) or 
        a verification conducted pursuant to subsection (d)(2).
            (6) The number of small business concerns that were 
        decertified as qualified HUBZone small business 
        concerns.
            (7) The number of qualified HUBZone small business 
        concerns.
            (8) Any other information the Administrator 
        determines necessary.

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SEC. 36. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND 
                    CONTROLLED BY SERVICE-DISABLED VETERANS.

    (a) Contracting Officer Defined.--For purposes of this 
section, the term ``contracting officer'' has the meaning given 
such term in section 2101 of title 41, United States Code.
    (b) Certification of Small Business Concerns Owned and 
Controlled by Service-Disabled Veterans.--With respect to a 
procurement program or preference established under this Act 
that applies to prime contractors, the Administrator shall--
            (1) certify the status of a concern as a small 
        business concern owned and controlled by service-
        disabled veterans; and
            (2) require the periodic recertification of such 
        status.
    (c) Sole Source Contracts.--In accordance with this 
section, a contracting officer may award a sole source contract 
to any small business concern owned and controlled by service-
disabled veterans if--
            (1) such concern is determined to be a responsible 
        contractor with respect to performance of such contract 
        opportunity and the contracting officer does not have a 
        reasonable expectation that 2 or more small business 
        concerns owned and controlled by service-disabled 
        veterans will submit offers for the contracting 
        opportunity;
            (2) the anticipated award price of the contract 
        (including options) will not exceed--
                    (A) $7,000,000, in the case of a contract 
                opportunity assigned a standard industrial 
                classification code for manufacturing; or
                    (B) $3,000,000, in the case of any other 
                contract opportunity; and
            (3) in the estimation of the contracting officer, 
        the contract award can be made at a fair and reasonable 
        price.
    (d) Restricted Competition.--In accordance with this 
section, a contracting officer may award contracts on the basis 
of competition restricted to small business concerns owned and 
controlled by service-disabled veterans certified under 
subsection (b) if the contracting officer has a reasonable 
expectation that not less than 2 small business concerns owned 
and controlled by service-disabled veterans will submit offers 
and that the award can be made at a fair market price.
    (e) Relationship to Other Contracting Preferences.--A 
procurement may not be made from a source on the basis of a 
preference provided under subsection (a) or (b) if the 
procurement would otherwise be made from a different source 
under section 4124 or 4125 of title 18, United States Code, or 
the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
    (f) Database of Veteran-Owned Businesses.--(1) Subject to 
paragraphs (2) through (6), the Administrator shall maintain a 
database of small business concerns owned and controlled by 
veterans, small business concerns owned and controlled by 
service-disabled veterans, and the veteran owners of such 
business concerns.
    (2)(A) To be eligible for inclusion in the database, such a 
veteran shall submit to the Administrator such information as 
the Administrator may require with respect to the small 
business concern or the veteran. Application for inclusion in 
the database shall constitute permission under section 552a of 
title 5, United States Code, (commonly referred to as the 
Privacy Act) for the Administrator to obtain from the Secretary 
of Veterans Affairs such personal information maintained by the 
Secretary as may be necessary to verify the information 
contained in the application.
    (B) For purposes of this subsection--
            (i) the Secretary of Veterans Affairs shall--
                    (I) verify an individual's status as a 
                veteran or a service-disabled veteran; and
                    (II) establish a system to permit the 
                Administrator to access, but not alter, the 
                verification of such status; and
            (ii) the Administrator shall verify--
                    (I) the status of a business concern as a 
                small business concern; and
                    (II) the ownership and control of such 
                business concern.
    (C) The Administrator may not certify a concern under 
subsection (b) or section 36A if the Secretary of Veterans 
Affairs cannot provide the verification described under 
subparagraph (B)(i)(I).
    (3) Information maintained in the database shall be 
submitted on a voluntary basis by a veteran described in 
paragraph (1).
    (4) the Administrator shall make the database available to 
all Federal departments and agencies and shall notify each such 
department and agency of the availability of the database.
    (5) If the Administrator determines that the public 
dissemination of certain types of information maintained in the 
database is inappropriate, the Administrator shall take such 
steps as are necessary to maintain such types of information in 
a secure and confidential manner.
    (6)(A) If a small business concern is not included in the 
database because the Administrator does not certify the status 
of the concern as a small business concern owned and controlled 
by veterans (under section 36A) or a small business concern 
owned and controlled by service-disabled veterans (under 
subsection (g) of this section), the concern may appeal the 
denial of certification to the Office of Hearings and Appeals 
of the Administration (as established under section 5(i)). The 
decision of the Office of Hearings and Appeals shall be 
considered a final agency action.
    (B)(i) If an interested party challenges the inclusion in 
the database of a small business concern owned and controlled 
by veterans or a small business concern owned and controlled by 
service-disabled veterans based on the status of the concern as 
a small business concern or the ownership or control of the 
concern, the challenge shall be heard by the Office of Hearings 
and Appeals as described in subparagraph (A). The decision of 
the Office of Hearings and Appeals shall be considered final 
agency action.
            (ii) In this subparagraph, the term ``interested 
        party'' means--
                    (I) the Secretary of Veterans Affairs or 
                the Administrator; or
                    (II) in the case of a small business 
                concern that is awarded a contract, the 
                applicable contracting officer or another small 
                business concern that submitted an offer for 
                the contract that was awarded to the small 
                business concern that is the subject of a 
                challenge made under clause (i).
    (g) Certification Requirement.--Notwithstanding subsection 
(c), a contracting officer may only award a sole source 
contract to a small business concern owned and controlled by 
service-disabled veterans or a contract on the basis of 
competition restricted to small business concerns owned and 
controlled by service-disabled veterans if such a concern is 
certified by the Administrator as a small business concern 
owned and controlled by service-disabled veterans.
    (h) Enforcement; Penalties.--
            (1) Verification of eligibility.--In carrying out 
        this section, the Administrator shall establish 
        procedures relating to--
                    (A) the filing, investigation, and 
                disposition by the Administration of any 
                challenge to the eligibility of a small 
                business concern to receive assistance under 
                this section (including a challenge, filed by 
                an interested party, relating to the veracity 
                of a certification made or information provided 
                to the Administration by a small business 
                concern under subsection (b)); and
                    (B) verification by the Administrator of 
                the accuracy of any certification made or 
                information provided to the Administration by a 
                small business concern under subsection (b).
            (2) Examinations.--The procedures established under 
        paragraph (1) shall provide for a program of 
        examinations by the Administrator of any small business 
        concern making a certification or providing information 
        to the Administrator under subsection (b), to determine 
        the veracity of any statements or information provided 
        as part of such certification or otherwise provided 
        under subsection (b).
            (3) Enforcement; penalties.--Rules similar to the 
        rules of paragraphs (5) and (6) of section 8(m) shall 
        apply for purposes of this section and section 36A.
    (i) Provision of Data.--Upon the request of the 
Administrator, the head of any Federal department or agency 
shall promptly provide to the Administrator such information as 
the Administrator determines to be necessary to carry out 
subsection (b) or to be able to certify the status of the 
concern as a small business concern owned and controlled by 
veterans under section 36A.
    (j) Report.--Not later than May 1, 2024, and annually 
thereafter, the Administrator 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 small business concerns owned and controlled by 
service-disabled veterans. Such report shall include, for the 
fiscal year preceding the date of the report, the following:
            (1) The total number of small business concerns 
        certified as small business concerns owned and 
        controlled by service-disabled veterans.
            (2) The total dollar amount and total percentage of 
        prime contracts awarded to small business concerns 
        owned and controlled by service-disabled veterans 
        pursuant to this section.
            (3) The total dollar amount and percent of sole 
        source contracts awarded to owned and controlled by 
        service-disabled veterans pursuant to subsection (c).
            (4) With respect to an examination described in 
        subsection (h)(2)--
                    (A) the number of examinations due because 
                of recertification requirements and the actual 
                number of such examinations conducted; and
                    (B) the number of examinations conducted 
                for any other reason.
            (5) The number of small business concerns owned and 
        controlled by service-disabled veterans that were found 
        to be ineligible to be awarded a contract under this 
        subsection as a result of an examination conducted 
        pursuant to subsection (h)(2).
            (6) The number of small business concerns 
        decertified as small business concerns owned and 
        controlled by service-disabled veterans.
            (7) The total number of small business concerns 
        owned and controlled by service-disabled veterans.
            (8) Any other information the Administrator 
        determines necessary.

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