[House Report 118-396]
[From the U.S. Government Publishing Office]


118th Congress }                                              { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                              { 118-396

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



 
                   AGENCY ACCOUNTABILITY ACT OF 2024

                                _______
                                

 February 23, 2024.--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

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 7103]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 7103) to amend the Small Business Act to require 
Federal agencies to testify and report on scores received under 
the scorecard program for evaluating Federal agency compliance 
with small business contracting goals, to testify for failure 
to meet Governmentwide contracting goals, 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. 7103.................................5
 VII. Congressional Budget Office Cost Estimate.......................5
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure5
  IX. Oversight Findings & Recommendations............................5
   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......................................6
 XIV. Federal Advisory Committee Statement............................6
  XV. Applicability to Legislative Branch.............................6
 XVI. Statement of Constitutional Authority...........................6
XVII. Changes in Existing Law Made by the Bill, as Reported...........6
XVIII.Minority Views.................................................36


                      I. Purpose and Bill Summary

    On January 29, 2024, Rep. Stauber along with 
Representatives McGarvey and LaLota introduced H.R. 7103. The 
purpose of H.R. 7103, the ``Agency Accountability Act of 
2024,'' is to require agencies that fail to meet their small 
business procurement goals to testify before Congress on their 
failures and efforts to meet these goals.

                        II. Need for Legislation

    The Agency Accountability Act requires federal agencies to 
testify to Congress if they receive below an ``A'' on the SBA's 
annual procurement scorecard (Scorecard). The Scorecard 
assesses agencies' success in reaching small business 
contracting and subcontracting goals.
    Small business procurement goals were first established by 
Congress in 1988. Today, small business procurement goals 
represent 23 percent of all federal government contracts. The 
SBA is responsible for allocating these goals across agencies 
to ensure that the sum of these contracts reaches the 
government-wide goal.
    The SBA issues a Scorecard for 24 agencies. This bill will 
allow Congress to exercise oversight authority and ensure that 
agencies are giving small entities a fair shot at doing 
business with the federal government.
    In the FY22 SBA Scorecard, four of the largest federal 
agencies did not receive an A grade: the Departments of 
Defense, Health and Human Services, Treasury, and Veterans 
Affairs.

                             III. Hearings

    In the 118th Congress, the Committee held one hearing 
examining the issues covered in H.R. 7103. On May 11, 2023, the 
Committee held a hearing titled ``Leveling the Playing Field: 
The State of Small Business Contracting'' discussed challenges 
small business contractors face while competing for government 
contracts.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on January 31, 2024, and ordered H.R. 
7103 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. 7103 to 
the House of Representatives at 11:57 a.m.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                  VI. Section-by-Section of H.R. 7103


Section 1--Short title

    This section cites the bill as the Agency Accountability 
Act of 2024.

Section 2--Federal agency testimony on scorecard scores and failure 
    to achieve certain goals

    This section requires agencies to testify under two 
conditions: if they receive below an ``A'' letter grade or fail 
to meet two or more governmentwide small business contracting 
goals. The head of the agency's Office of Small and 
Disadvantaged Business Utilization (or the Office of Small 
Business Programs at the Department of Defense) is required to 
testify before the House and Senate Small Business Committees.

Section 3--Federal agency reporting on scorecard scores

    This section requires that an agency's remediation plan 
includes information on improving its score on the SBA 
Scorecard.

Section 4--Compliance with CUTGO

    This section includes language to ensure that no additional 
funds are authorized to be appropriated to carry out the 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. 7103 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. 7103 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. 7103 are to require 
direct testimony from agency officials on the failure to meet 
procurement goals.

            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. 7103 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 (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                           SMALL BUSINESS ACT




           *       *       *       *       *       *       *
  Sec. 15.
  (a) Small Business Procurements.--
          (1) In general.--For purposes of this Act, small 
        business concerns shall receive any award or contract 
        if such award or contract is, in the determination of 
        the Administrator and the contracting agency, in the 
        interest of--
                  (A) maintaining or mobilizing the full 
                productive capacity of the United States;
                  (B) war or national defense programs; or
                  (C) assuring that a fair proportion of the 
                total purchases and contracts for goods and 
                services of the Government in each industry 
                category (as defined under paragraph (2)) are 
                awarded to small business concerns.
          (2) Industry category defined.--
                  (A) In general.--In this subsection, the term 
                ``industry category'' means a discrete group of 
                similar goods and services, as determined by 
                the Administrator in accordance with the North 
                American Industry Classification System codes 
                used to establish small business size 
                standards, except that the Administrator shall 
                limit an industry category to a greater extent 
                than provided under the North American Industry 
                Classification System codes if the 
                Administrator receives evidence indicating that 
                further segmentation of the industry category 
                is warranted--
                          (i) due to special capital equipment 
                        needs;
                          (ii) due to special labor 
                        requirements;
                          (iii) due to special geographic 
                        requirements, except as provided in 
                        subparagraph (B);
                          (iv) due to unique Federal buying 
                        patterns or requirements; or
                          (v) to recognize a new industry.
                  (B) Exception for geographic requirements.--
                The Administrator may not further segment an 
                industry category based on geographic 
                requirements unless--
                          (i) the Government typically 
                        designates the geographic area where 
                        work for contracts for goods or 
                        services is to be performed;
                          (ii) Government purchases comprise 
                        the major portion of the entire 
                        domestic market for such goods or 
                        services; and
                          (iii) it is unreasonable to expect 
                        competition from business concerns 
                        located outside of the general 
                        geographic area due to the fixed 
                        location of facilities, high 
                        mobilization costs, or similar economic 
                        factors.
          (3) Determinations with respect to awards or 
        contracts.--Determinations made pursuant to paragraph 
        (1) may be made for individual awards or contracts, any 
        part of an award or contract or task order, or for 
        classes of awards or contracts or task orders.
          (4) Increasing prime contracting opportunities for 
        small business concerns.--
                  (A) Description of covered proposed 
                procurements.--The requirements of this 
                paragraph shall apply to a proposed procurement 
                that includes in its statement of work goods or 
                services currently being supplied or performed 
                by a small business concern and, as determined 
                by the Administrator--
                          (i) is in a quantity or of an 
                        estimated dollar value which makes the 
                        participation of a small business 
                        concern as a prime contractor unlikely;
                          (ii) in the case of a proposed 
                        procurement for construction, seeks to 
                        bundle or consolidate discrete 
                        construction projects; or
                          (iii) is a solicitation that involves 
                        an unnecessary or unjustified bundling 
                        of contract requirements.
                  (B) Notice to procurement center 
                representatives.--With respect to proposed 
                procurements described in subparagraph (A), at 
                least 30 days before issuing a solicitation and 
                concurrent with other processing steps required 
                before issuing the solicitation, the 
                contracting agency shall provide a copy of the 
                proposed procurement to the procurement center 
                representative of the contracting agency (as 
                described in subsection (l)) along with a 
                statement explaining--
                          (i) why the proposed procurement 
                        cannot be divided into reasonably small 
                        lots (not less than economic production 
                        runs) to permit offers on quantities 
                        less than the total requirement;
                          (ii) why delivery schedules cannot be 
                        established on a realistic basis that 
                        will encourage the participation of 
                        small business concerns in a manner 
                        consistent with the actual requirements 
                        of the Government;
                          (iii) why the proposed procurement 
                        cannot be offered to increase the 
                        likelihood of the participation of 
                        small business concerns;
                          (iv) in the case of a proposed 
                        procurement for construction, why the 
                        proposed procurement cannot be offered 
                        as separate discrete projects; or
                          (v) why the contracting agency has 
                        determined that the bundling of 
                        contract requirements is necessary and 
                        justified.
                  (C) Alternatives to increase prime 
                contracting opportunities for small business 
                concerns.--If the procurement center 
                representative believes that the proposed 
                procurement will make the participation of 
                small business concerns as prime contractors 
                unlikely, the procurement center 
                representative, within 15 days after receiving 
                the statement described in subparagraph (B), 
                shall recommend to the contracting agency 
                alternative procurement methods for increasing 
                prime contracting opportunities for small 
                business concerns.
                  (D) Failure to agree on an alternative 
                procurement method.--If the procurement center 
                representative and the contracting agency fail 
                to agree on an alternative procurement method, 
                the Administrator shall submit the matter to 
                the head of the appropriate department or 
                agency for a determination.
          (5) Contracts for sale of Government property.--With 
        respect to a contract for the sale of Government 
        property, small business concerns shall receive any 
        such contract if, in the determination of the 
        Administrator and the disposal agency, the award of 
        such contract is in the interest of assuring that a 
        fair proportion of the total sales of Government 
        property be made to small business concerns.
          (6) Sale of electrical power or other property.--
        Nothing in this subsection shall be construed to change 
        any preferences or priorities established by law with 
        respect to the sale of electrical power or other 
        property by the Federal Government.
          (7) Costs exceeding fair market price.--A contract 
        may not be awarded under this subsection if the cost of 
        the contract to the awarding agency exceeds a fair 
        market price.
  (b) With respect to any work to be performed the amount of 
which would exceed the maximum amount of any contract for which 
a surety may be guaranteed against loss under section 411 of 
the Small Business Investment Act of 1958 (15 U.S.C. 694(b)), 
the contracting procurement agency shall, to the extent 
practicable, place contracts so as to allow more than one small 
business concern to perform such work.
  (c)(1) As used in this subsection:
          (A) The term ``Committee'' means the Committee for 
        Purchase from the Blind and Other Severely Handicapped 
        established under the first section of the Act entitled 
        ``An Act to create a Committee on Purchases of Blind-
        made Products, and for other purposes'', approved June 
        25, 1938 (41 U.S.C. 46).
          (B) The term ``public or private organization for the 
        handicapped'' has the same meaning given such term in 
        section 3(e).
          (C) The term ``handicapped individual'' has the same 
        meaning given such term in section 3(f).
  (2)(A) During fiscal year 1995, public or private 
organizations for the handicapped shall be eligible to 
participate in programs authorized under this section in an 
aggregate amount not to exceed $40,000,000.
  (B) None of the amounts authorized for participation by 
subparagraph (A) may be placed on the procurement list 
maintained by the Committee pursuant to section 2 of the Act 
entitled ``An Act to create a Committee on Purchases of Blind-
made Products, and for other purposes'', approved June 25, 1938 
(41 U.S.C. 47).
  (3) The Administrator shall monitor and evaluate such 
participation.
  (4)(A) Not later than ten days after the announcement of a 
proposed award of a contract by an agency or department to a 
public or private organization for the handicapped, a for-
profit small business concern that has experienced or is likely 
to experience severe economic injury as the result of the 
proposed award may file an appeal of the proposed award with 
the Administrator.
  (B) If such a concern files an appeal of a proposed award 
under subparagraph (A) and the Administrator, after 
consultation with the Executive Director of the Committee, 
finds that the concern has experienced or is likely to 
experience severe economic injury as the result of the proposed 
award, not later than thirty days after the filing of the 
appeal, the Administration shall require each agency and 
department having procurement powers to take such action as may 
be appropriate to alleviate economic injury sustained or likely 
to be sustained by the concern.
  (5) Each agency and department having procurement powers 
shall report to the Office of Federal Procurement Policy each 
time a contract subject to paragraph (2)(A) is entered into, 
and shall include in its report the amount of the next higher 
bid submitted by a for-profit small business concern. The 
Office of Federal Procurement Policy shall collect data 
reported under the preceding sentence through the Federal 
procurement data system and shall report to the Administration 
which shall notify all such agencies and departments when the 
maximum amount of awards authorized under paragraph (2)(A) has 
been made during any fiscal year.
  (6) For the purpose of this subsection, a contract may be 
awarded only if at least 75 per centum of the direct labor 
performed on each item being produced under the contract in the 
sheltered workshop or performed in providing each type of 
service under the contract by the sheltered workshop is 
performed by handicapped individuals.
  (7) Agencies awarding one or more contracts to such an 
organization pursuant to the provisions of this subsection may 
use multiyear contracts, if appropriate.
  (d) For purposes of this section priority shall be given to 
the awarding of contracts and the placement of subcontracts to 
small business concerns which shall perform a substantial 
proportion of the production on those contracts and 
subcontracts within areas of concentrated unemployment or 
underemployment or within labor surplus areas. Notwithstanding 
any other provison of law, total labor surplus area set-asides 
pursuant to Defense Manpower Policy Number 4 (32A C.F.R. 
Chapter 1) or any successor policy shall be authorized if the 
Secretary or his designee specifically determines that there is 
a reasonable expectation that offers will be obtained from a 
sufficient number of eligible concerns so that awards will be 
made at reasonable prices. As soon as practicable and to the 
extent possible, in determining labor surplus areas, 
consideration shall be given to those persons who would be 
available for employment were suitable employment available. 
Until such definition reflects such number, the present 
criteria of such policy shall govern.
  (e) Procurement Strategies; Contract Bundling.--
          (1) In general.--To the maximum extent practicable, 
        procurement strategies used by a Federal department or 
        agency having contracting authority shall facilitate 
        the maximum participation of small business concerns as 
        prime contractors, subcontractors, and suppliers, and 
        each such Federal department or agency shall--
                  (A) provide opportunities for the 
                participation of small business concerns during 
                acquisition planning processes and in 
                acquisition plans; and
                  (B) invite the participation of the 
                appropriate Director of Small and Disadvantaged 
                Business Utilization in acquisition planning 
                processes and provide that Director access to 
                acquisition plans.
          (2) Market research.--
                  (A) In general.--Before proceeding with an 
                acquisition strategy that could lead to a 
                contract containing consolidated procurement 
                requirements, the head of an agency shall 
                conduct market research to determine whether 
                consolidation of the requirements is necessary 
                and justified.
                  (B) Factors.--For purposes of subparagraph 
                (A), consolidation of the requirements may be 
                determined as being necessary and justified if, 
                as compared to the benefits that would be 
                derived from contracting to meet those 
                requirements if not consolidated, the Federal 
                Government would derive from the consolidation 
                measurably substantial benefits, including any 
                combination of benefits that, in combination, 
                are measurably substantial. Benefits described 
                in the preceding sentence may include the 
                following:
                          (i) Cost savings.
                          (ii) Quality improvements.
                          (iii) Reduction in acquisition cycle 
                        times.
                          (iv) Better terms and conditions.
                          (v) Any other benefits.
                  (C) Reduction of costs not determinative.--
                The reduction of administrative or personnel 
                costs alone shall not be a justification for 
                bundling of contract requirements unless the 
                cost savings are expected to be substantial in 
                relation to the dollar value of the procurement 
                requirements to be consolidated.
          (3) Strategy specifications.--If the head of a 
        contracting agency determines that an acquisition plan 
        for a procurement involves a substantial bundling of 
        contract requirements, the head of a contracting agency 
        shall publish a notice on a public website that such 
        determination has been made not later than 7 days after 
        making such determination. Any solicitation for a 
        procurement related to the acquisition plan may not be 
        published earlier than 7 days after such notice is 
        published. Along with the publication of the 
        solicitation, the head of a contracting agency shall 
        publish a justification for the determination, which 
        shall include the following information:
                  (A) The specific benefits anticipated to be 
                derived from the bundling of contract 
                requirements and a determination that such 
                benefits justify the bundling.
                  (B) An identification of any alternative 
                contracting approaches that would involve a 
                lesser degree of bundling of contract 
                requirements.
                  (C) An assessment of--
                          (i) the specific impediments to 
                        participation by small business 
                        concerns as prime contractors that 
                        result from the bundling of contract 
                        requirements; and
                          (ii) the specific actions designed to 
                        maximize participation of small 
                        business concerns as subcontractors 
                        (including suppliers) at various tiers 
                        under the contract or contracts that 
                        are awarded to meet the requirements.
          (4) Contract teaming.--
                  (A) In general.--In the case of a 
                solicitation of offers for a bundled or 
                consolidated contract that is issued by the 
                head of an agency, a small business concern 
                that provides for use of a particular team of 
                subcontractors or a joint venture of small 
                business concerns may submit an offer for the 
                performance of the contract.
                  (B) Evaluation of offers.--The head of the 
                agency shall evaluate an offer described in 
                subparagraph (A) in the same manner as other 
                offers, with due consideration to the 
                capabilities of all of the proposed 
                subcontractors or members of the joint venture 
                as follows:
                          (i) Teams.--When evaluating an offer 
                        of a small business prime contractor 
                        that includes a proposed team of small 
                        business subcontractors, the head of 
                        the agency shall consider the 
                        capabilities and past performance of 
                        each first tier subcontractor that is 
                        part of the team as the capabilities 
                        and past performance of the small 
                        business prime contractor.
                          (ii) Joint ventures.--When evaluating 
                        an offer of a joint venture of small 
                        business concerns, if the joint venture 
                        does not demonstrate sufficient 
                        capabilities or past performance to be 
                        considered for award of a contract 
                        opportunity, the head of the agency 
                        shall consider the capabilities and 
                        past performance of each member of the 
                        joint venture as the capabilities and 
                        past performance of the joint venture.
                  (C) Status as a small business concern.--
                Participation of a small business concern in a 
                team or a joint venture under this paragraph 
                shall not affect the status of that concern as 
                a small business concern for any other purpose.
          (5) Past performance ratings of joint ventures for 
        small business concerns.--With respect to evaluating an 
        offer for a prime contract made by a small business 
        concern that previously participated in a joint venture 
        with another business concern (whether or not such 
        other business concern was a small business concern), 
        the Administrator shall establish regulations--
                  (A) allowing the small business concern to 
                elect to use the past performance of the joint 
                venture if the small business concern has no 
                relevant past performance of its own;
                  (B) requiring the small business concern, 
                when making an election under subparagraph 
                (A)--
                          (i) to identify to the contracting 
                        officer the joint venture of which the 
                        small business concern was a member; 
                        and
                          (ii) to inform the contracting 
                        officer what duties and 
                        responsibilities the small business 
                        concern carried out as part of the 
                        joint venture; and
                  (C) requiring a contracting officer, if the 
                small business concern makes an election under 
                subparagraph (A), to consider the past 
                performance of the joint venture when 
                evaluating the past performance of the small 
                business concern, giving due consideration to 
                the information provided under subparagraph 
                (B)(ii).
  (f) Contracting Preference for Small Business Concerns in a 
Major Disaster Area.--
          (1) Definition.--In this subsection, the term 
        ``disaster area'' means the area for which the 
        President has declared a major disaster, during the 
        period of the declaration.
          (2) Contracting preference.--An agency shall provide 
        a contracting preference for a small business concern 
        located in a disaster area if the small business 
        concern will perform the work required under the 
        contract in the disaster area.
          (3) Credit for meeting contracting goals.--If an 
        agency awards a contract to a small business concern 
        under the circumstances described in paragraph (2), the 
        value of the contract shall be doubled for purposes of 
        determining compliance with the goals for procurement 
        contracts under subsection (g)(1)(A).
  (g)
          (1) Governmentwide goals.--
                  (A) Establishment.--The President shall 
                annually establish Governmentwide goals for 
                procurement contracts awarded to small business 
                concerns, small business concerns owned and 
                controlled by service-disabled veterans, 
                qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women in accordance with the 
                following:
                          (i) The Governmentwide goal for 
                        participation by small business 
                        concerns shall be established at not 
                        less than 23 percent of the total value 
                        of all prime contract awards for each 
                        fiscal year. In meeting this goal, the 
                        Government shall ensure the 
                        participation of small business 
                        concerns from a wide variety of 
                        industries and from a broad spectrum of 
                        small business concerns within each 
                        industry.
                          (ii) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        service-disabled veterans shall be 
                        established at not less than 5 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iii) The Governmentwide goal for 
                        participation by qualified HUBZone 
                        small business concerns shall be 
                        established at not less than 3 percent 
                        of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                          (iv) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals shall be established at not 
                        less than 5 percent of the total value 
                        of all prime contract and subcontract 
                        awards for each fiscal year.
                          (v) The Governmentwide goal for 
                        participation by small business 
                        concerns owned and controlled by women 
                        shall be established at not less than 5 
                        percent of the total value of all prime 
                        contract and subcontract awards for 
                        each fiscal year.
                  (B) Achievement of governmentwide goals.--
                Each agency shall have an annual goal that 
                presents, for that agency, the maximum 
                practicable opportunity for small business 
                concerns, small business concerns owned and 
                controlled by service-disabled veterans, 
                qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women to participate in the 
                performance of contracts let by such agency. 
                The Small Business Administration and the 
                Administrator for Federal Procurement Policy 
                shall, when exercising their authority pursuant 
                to paragraph (2), insure that the cumulative 
                annual prime contract goals for all agencies 
                meet or exceed the annual Governmentwide prime 
                contract goal established by the President 
                pursuant to this paragraph.
  (2)(A) The head of each Federal agency shall, after 
consultation with the Administration, establish goals for the 
participation by small business concerns, by small business 
concerns owned and controlled by service-disabled veterans, by 
qualified HUBZone small business concerns, by small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and by small business concerns owned 
and controlled by women in procurement contracts of such 
agency. Such goals shall separately address prime contract 
awards and subcontract awards for each category of small 
business covered.
  (B) Goals established under this subsection shall be jointly 
established by the Administration and the head of each Federal 
agency and shall realistically reflect the potential of small 
business concerns, small business concerns owned and controlled 
by service-disabled veterans, qualified HUBZone small business 
concerns, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, and small 
business concerns owned and controlled by women to perform such 
contracts and to perform subcontracts under such contracts.
  (C) Whenever the Administration and the head of any Federal 
agency fail to agree on established goals, the disagreement 
shall be submitted to the Administrator for Federal Procurement 
Policy for final determination.
  (D) After establishing goals under this paragraph for a 
fiscal year, the head of each Federal agency shall develop a 
plan for achieving such goals at both the prime contract and 
the subcontract level, which shall apportion responsibilities 
among the agency's acquisition executives and officials. In 
establishing goals under this paragraph, the head of each 
Federal agency shall make a consistent effort to annually 
expand participation by small business concerns from each 
industry category in procurement contracts and subcontracts of 
such agency, including participation by small business concerns 
owned and controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and controlled 
by women.
          (E) The head of each Federal agency, in attempting to 
        attain expanded participation under subparagraph (D), 
        shall consider--
                  (i) contracts awarded as the result of 
                unrestricted competition; and
                  (ii) contracts awarded after competition 
                restricted to eligible small business concerns 
                under this section and under the program 
                established under section 8(a).
          (F)(i) Each procurement employee or program manager 
        described in clause (ii) shall communicate to the 
        subordinates of the procurement employee or program 
        manager the importance of achieving goals established 
        under subparagraph (A).
                  (ii) A procurement employee or program 
                manager described in this clause is a senior 
                procurement executive, senior program manager, 
                or Director of Small and Disadvantaged Business 
                Utilization of a Federal agency having 
                contracting authority.
          (G) Testimony required.--The head of the office 
        established in a Federal agency under subsection (k) 
        shall testify before the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on 
        Small Business of the House of Representatives under 
        the following circumstances:
                  (i) If such agency fails to receive a score 
                equivalent to a letter grade of ``A'' or above 
                on the scorecard established under subsection 
                (y) for a fiscal year, on the reasons for such 
                failure.
                  (ii) If such agency fails to meet two or more 
                of the Governmentwide goals established under 
                paragraph (1)(A), on the reasons for such 
                failure,
  (3) First tier subcontracts that are awarded by Management 
and Operating contractors sponsored by the Department of Energy 
to small business concerns, small businesses concerns owned and 
controlled by service disabled veterans, qualified HUBZone 
small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and controlled 
by women, shall be considered toward the annually established 
agency and Government-wide goals for procurement contracts 
awarded.
  (h) Reporting on Goals for Procurement Contracts Awarded to 
Small Business Concerns.--
          (1) Agency reports.--At the conclusion of each fiscal 
        year, the head of each Federal agency shall submit to 
        the Administrator a report describing--
                  (A) the extent of the participation by small 
                business concerns, small business concerns 
                owned and controlled by veterans (including 
                service-disabled veterans), qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women in the procurement contracts of such 
                agency during such fiscal year;
                  (B) whether the agency achieved the goals 
                established for the agency under subsection 
                (g)(2) with respect to such fiscal year;
                  (C) any justifications for a failure to 
                achieve such goals; and
                  (D) a remediation plan with proposed new 
                practices to better meet such goals and to 
                improve the score on the scorecard established 
                under subsection (y), including analysis of 
                factors leading to any failure to achieve such 
                goals.
          (2) Reports by administrator.--Not later than 60 days 
        after receiving a report from each Federal agency under 
        paragraph (1) with respect to a fiscal year, the 
        Administrator shall submit to the President and 
        Congress, and to make available on a public Web site, a 
        report that includes--
                  (A) a copy of each report submitted to the 
                Administrator under paragraph (1);
                  (B) a determination of whether each goal 
                established by the President under subsection 
                (g)(1) for such fiscal year was achieved;
                  (C) a determination of whether each goal 
                established by the head of a Federal agency 
                under subsection (g)(2) for such fiscal year 
                was achieved;
                  (D) the reasons for any failure to achieve a 
                goal established under paragraph (1) or (2) of 
                subsection (g) for such fiscal year and a 
                description of actions planned by the 
                applicable agency to address such failure, 
                including the Administrator's comments and 
                recommendations on the proposed remediation 
                plan; and
                  (E) for the Federal Government and each 
                Federal agency, an analysis of the number and 
                dollar amount of prime contracts awarded during 
                such fiscal year to--
                          (i) small business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through unrestricted 
                                competition;
                                  (V) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns for purposes of the 
                                initial contract; and
                                  (VI) that were awarded using 
                                a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, qualified HUBZone 
                                small business concerns, small 
                                business concerns owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals, small business 
                                concerns owned and controlled 
                                by women, or a subset of any 
                                such concerns;
                          (ii) small business concerns owned 
                        and controlled by service-disabled 
                        veterans--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by service-disabled veterans;
                                  (V) through unrestricted 
                                competition;
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by service-disabled veterans 
                                for purposes of the initial 
                                contract; and
                                  (VII) that were awarded using 
                                a procurement method that 
                                restricted competition to 
                                qualified HUBZone small 
                                business concerns, small 
                                business concerns owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals, small business 
                                concerns owned and controlled 
                                by women, or a subset of any 
                                such concerns;
                          (iii) qualified HUBZone small 
                        business concerns--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to qualified HUBZone 
                                small business concerns;
                                  (V) through unrestricted 
                                competition where a price 
                                evaluation preference was used;
                                  (VI) through unrestricted 
                                competition where a price 
                                evaluation preference was not 
                                used;
                                  (VII) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be qualified HUBZone 
                                small business concerns for 
                                purposes of the initial 
                                contract; and
                                  (VIII) that were awarded 
                                using a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals, 
                                small business concerns owned 
                                and controlled by women, or a 
                                subset of any such concerns;
                          (iv) small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged 
                        individuals--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition;
                                  (VI) by reason of that 
                                concern's certification as a 
                                small business owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals;
                                  (VII) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals for 
                                purposes of the initial 
                                contract; and
                                  (VIII) that were awarded 
                                using a procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, qualified HUBZone 
                                small business concerns, small 
                                business concerns owned and 
                                controlled by women, or a 
                                subset of any such concerns;
                          (v) small business concerns owned by 
                        an Indian tribe (as such term is 
                        defined in section 8(a)(13)) other than 
                        an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by an Indian 
                                tribe other than an Alaska 
                                Native Corporation for purposes 
                                of the initial contract;
                          (vi) small business concerns owned by 
                        a Native Hawaiian Organization--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by a Native 
                                Hawaiian Organization for 
                                purposes of the initial 
                                contract;
                          (vii) small business concerns owned 
                        by an Alaska Native Corporation--
                                  (I) in the aggregate;
                                  (II) through sole source 
                                contracts;
                                  (III) through competitions 
                                restricted to small business 
                                concerns;
                                  (IV) through competitions 
                                restricted to small business 
                                concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals;
                                  (V) through unrestricted 
                                competition; and
                                  (VI) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned by an Alaska 
                                Native Corporation for purposes 
                                of the initial contract; and
                          (viii) small business concerns owned 
                        and controlled by women--
                                  (I) in the aggregate;
                                  (II) through competitions 
                                restricted to small business 
                                concerns;
                                  (III) through competitions 
                                restricted using the authority 
                                under section 8(m)(2);
                                  (IV) through competitions 
                                restricted using the authority 
                                under section 8(m)(2) and in 
                                which the waiver authority 
                                under section 8(m)(3) was used;
                                  (V) through sole source 
                                contracts awarded using the 
                                authority under subsection 
                                8(m)(7);
                                  (VI) through sole source 
                                contracts awarded using the 
                                authority under section 
                                8(m)(8);
                                  (VII) by industry for 
                                contracts described in 
                                subclause (III), (IV), (V), or 
                                (VI);
                                  (VIII) through unrestricted 
                                competition;
                                  (IX) that were purchased by 
                                another entity after the 
                                initial contract was awarded 
                                and as a result of the 
                                purchase, would no longer be 
                                deemed to be small business 
                                concerns owned and controlled 
                                by women for purposes of the 
                                initial contract; and
                                  (X) that were awarded using a 
                                procurement method that 
                                restricted competition to small 
                                business concerns owned and 
                                controlled by service-disabled 
                                veterans, qualified HUBZone 
                                small business concerns, small 
                                business concerns owned and 
                                controlled by socially and 
                                economically disadvantaged 
                                individuals, or a subset of any 
                                such concerns; and
                  (F) for the Federal Government, the number, 
                dollar amount, and distribution with respect to 
                the North American Industry Classification 
                System of subcontracts awarded during such 
                fiscal year to small business concerns, small 
                business concerns owned and controlled by 
                service-disabled veterans, qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women, provided that such information is 
                publicly available through data systems 
                developed pursuant to the Federal Funding 
                Accountability and Transparency Act of 2006 
                (Public Law 109-282), or otherwise available as 
                provided in paragraph (3).
          (3) Procurement data.--
                  (A) Federal procurement data system.--
                          (i) In general.--To assist in the 
                        implementation of this section, the 
                        Administrator shall have access to 
                        information collected through the 
                        Federal Procurement Data System, 
                        Federal Subcontracting Reporting 
                        System, or any new or successor system.
                          (ii) GSA report.--On the date that 
                        the Administrator makes available the 
                        report required under paragraph (2), 
                        the Administrator of the General 
                        Services Administration shall submit to 
                        the President and Congress, and shall 
                        make available on a public website, a 
                        report in the same form and manner, and 
                        including the same information, as the 
                        report required under paragraph (2). 
                        The report shall include all 
                        procurements made for the period 
                        covered by the report and may not 
                        exclude any contract awarded.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide, upon request of the Administrator, 
                procurement information collected through 
                agency data collection sources in existence at 
                the time of the request. Contracting agencies 
                shall not be required to establish new data 
                collection systems to provide such data.
          (4) Best in class small business participation 
        reporting.--
                  (A) Addendum.--In addition to the 
                requirements under paragraph (2) and for each 
                best in class designation, the Administrator 
                shall include in the report required by such 
                paragraph--
                          (i) the total amount of spending 
                        Governmentwide in such designation; and
                          (ii) the number of small business 
                        concerns awarded contracts and the 
                        dollar amount of such contracts awarded 
                        within each such designation to each of 
                        the following--
                                  (I) qualified HUBZone small 
                                business concerns;
                                  (II) small business concerns 
                                owned and controlled by women;
                                  (III) small business concerns 
                                owned and controlled by 
                                service-disabled veterans; and
                                  (IV) small business concerns 
                                owned and controlled by 
                                socially and economically 
                                disadvantaged individuals.
                  (B) Best in class defined.--The term ``best 
                in class'' has the meaning given such term by 
                the Director of the Office of Management and 
                Budget.
                  (C) Effective date.--The Administrator shall 
                report on the information described by 
                subparagraph (A) beginning on the date that 
                such information is available in the Federal 
                Procurement Data System, the System for Award 
                Management, or any successor to such systems.
  (i) Nothing in this Act or any other provision of law 
precludes exclusive small business set-asides for procurements 
of architectural and engineering services, research, 
development, test and evaluation, and each Federal agency is 
authorized to develop such set-asides to further the interests 
of small business in those areas.
  (j)(1) Each contract for the purchase of goods and services 
that has an anticipated value greater than the micro-purchase 
threshold, but not greater than the simplified acquisition 
threshold shall be reserved exclusively for small business 
concerns unless the contracting officer is unable to obtain 
offers from two or more small business concerns that are 
competitive with market prices and are competitive with regard 
to the quality and delivery of the goods or services being 
purchased.
  (2) In carrying out paragraph (1), a contracting officer 
shall consider a responsive offer timely received from an 
eligible small business offeror.
  (3) Nothing in paragraph (1) shall be construed as precluding 
an award of a contract with a value not greater than $100,000 
under the authority of subsection (a) of section 8 of this Act, 
section 712 of the Business Opportunity Development Reform Act 
of 1988 (Public Law 100-656; 15 U.S.C. 644 note), or section 
7102 of the Federal Acquisition Streamlining Act of 1994.
  (k) There is hereby established in each Federal agency having 
procurement powers an office to be known as the ``Office of 
Small and Disadvantaged Business Utilization''. The management 
of each such office shall be vested in an officer or employee 
of such agency, with experience serving in any combination of 
the following roles: program manager, deputy program manager, 
or assistant program manager for Federal acquisition program; 
chief engineer, systems engineer, assistant engineer, or 
product support manager for Federal acquisition program; 
Federal contracting officer; small business technical advisor; 
contracts administrator for Federal Government contracts; 
attorney specializing in Federal procurement law; small 
business liaison officer; officer or employee who managed 
Federal Government contracts for a small business; or 
individual whose primary responsibilities were for the 
functions and duties of section 8, 15, 31, 36, or 44 of this 
Act. Such officer or employee--
          (1) shall be known as the ``Director of Small and 
        Disadvantaged Business Utilization'' for such agency;
          (2) shall be appointed by the head of such agency to 
        a position that is a Senior Executive Service position 
        (as such term is defined under section 3132(a) of title 
        5, United States Code), except that, for any agency in 
        which the positions of Chief Acquisition Officer and 
        senior procurement executive (as such terms are defined 
        under section 44(a) of this Act) are not Senior 
        Executive Service positions, the Director of Small and 
        Disadvantaged Business Utilization may be appointed to 
        a position compensated at not less than the minimum 
        rate of basic pay payable for grade GS-15 of the 
        General Schedule under section 5332 of such title 
        (including comparability payments under section 5304 of 
        such title);
          (3) shall be responsible only to (including with 
        respect to performance appraisals), and report directly 
        and exclusively to, the head of such agency or to the 
        deputy of such head, except that the Director for the 
        Office of the Secretary of Defense shall be responsible 
        only to (including with respect to performance 
        appraisals), and report directly and exclusively to, 
        such Secretary or the Secretary's designee;
          (4) shall be responsible for the implementation and 
        execution of the functions and duties under sections 8, 
        15, 31, 36, and 44 of this Act which relate to such 
        agency;
          (5) shall identify proposed solicitations that 
        involve significant bundling of contract requirements, 
        and work with the agency acquisition officials and the 
        Administration to revise the procurement strategies for 
        such proposed solicitations where appropriate to 
        increase the probability of participation by small 
        businesses as prime contractors, or to facilitate small 
        business participation as subcontractors and suppliers, 
        if a solicitation for a bundled contract is to be 
        issued;
          (6) shall assist small business concerns to obtain 
        payments, required late payment interest penalties, or 
        information regarding payments due to such concerns 
        from an executive agency or a contractor, in conformity 
        with chapter 39 of title 31, United States Code, or any 
        other protection for contractors or subcontractors 
        (including suppliers) that is included in the Federal 
        Acquisition Regulation or any individual agency 
        supplement to such Government-wide regulation;
          (7) shall have supervisory authority over personnel 
        of such agency to the extent that the functions and 
        duties of such personnel relate to functions and duties 
        under sections 8, 15, 31, 36, and 44 of this Act;
          (8) shall assign a small business technical adviser 
        to each office to which the Administration has assigned 
        a procurement center representative--
                  (A) who shall be a full-time employee of the 
                procuring activity and shall be well qualified, 
                technically trained and familiar with the 
                supplies or services purchased at the activity; 
                and
                  (B) whose principal duty shall be to assist 
                the Administration procurement center 
                representative in his duties and functions 
                relating to sections 8, 15, 31, 36, and 44 of 
                this Act,
          (9) shall cooperate, and consult on a regular basis, 
        with the Administration with respect to carrying out 
        the functions and duties described in paragraph (4) of 
        this subsection;
          (10) shall make recommendations to contracting 
        officers as to whether a particular contract 
        requirement should be awarded pursuant to subsection 
        (a) or section 8, 15, 31, or 36 of this Act, and the 
        failure of the contracting officer to accept any such 
        recommendations shall be documented and included within 
        the appropriate contract file;
          (11) shall review and advise such agency on any 
        decision to convert an activity performed by a small 
        business concern to an activity performed by a Federal 
        employee;
          (12) shall provide to the Chief Acquisition Officer 
        and senior procurement executive of such agency advice 
        and comments on acquisition strategies, market 
        research, and justifications related to section 44 of 
        this Act;
          (13) may provide training to small business concerns 
        and contract specialists, except that such training may 
        only be provided to the extent that the training does 
        not interfere with the Director carrying out other 
        responsibilities under this subsection;
          (14) shall receive unsolicited proposals and, when 
        appropriate, forward such proposals to personnel of the 
        activity responsible for reviewing such proposals;
          (15) shall carry out exclusively the duties 
        enumerated in this Act, and shall, while the Director, 
        not hold any other title, position, or responsibility, 
        except as necessary to carry out responsibilities under 
        this subsection;
          (16) shall submit, each fiscal year, to the Committee 
        on Small Business of the House of Representatives and 
        the Committee on Small Business and Entrepreneurship of 
        the Senate a report describing--
                  (A) the training provided by the Director 
                under paragraph (13) in the most recently 
                completed fiscal year;
                  (B) the percentage of the budget of the 
                Director used for such training in the most 
                recently completed fiscal year;
                  (C) the percentage of the budget of the 
                Director used for travel in the most recently 
                completed fiscal year; and
                  (D) any failure of the agency to comply with 
                section 8, 15, 31, or 36;
          (17) shall, when notified by a small business concern 
        prior to the award of a contract that the small 
        business concern believes that a solicitation, request 
        for proposal, or request for quotation unduly restricts 
        the ability of the small business concern to compete 
        for the award--
                  (A) submit the notice of the small business 
                concern to the contracting officer and, if 
                necessary, recommend ways in which the 
                solicitation, request for proposal, or request 
                for quotation may be altered to increase the 
                opportunity for competition;
                  (B) inform the advocate for competition of 
                such agency (as established under section 1705 
                of title 41, United States Code, or section 
                3249 of title 10, United States Code) of such 
                notice; and
                  (C) ensure that the small business concern is 
                aware of other resources and processes 
                available to address unduly restrictive 
                provisions in a solicitation, request for 
                proposal, or request for quotation, even if 
                such resources and processes are provided by 
                such agency, the Administration, the 
                Comptroller General, or a procurement technical 
                assistance program established under chapter 
                388 of title 10, United States Code;
          (18) shall review summary data provided by purchase 
        card issuers of purchases made by the agency greater 
        than the micro-purchase threshold (as defined under 
        section 1902 of title 41, United Stated Code) and less 
        than the simplified acquisition threshold to ensure 
        that the purchases have been made in compliance with 
        the provisions of this Act and have been properly 
        recorded in the Federal Procurement Data System, if the 
        method of payment is a purchase card issued by the 
        Department of Defense pursuant to section 4754 of title 
        10, United States Code, or by the head of an executive 
        agency pursuant to section 1909 of title 41, United 
        States Code;
          (19) shall provide assistance to a small business 
        concern awarded a contract or subcontract under this 
        Act or under title 10 or title 41, United States Code, 
        in finding resources for education and training on 
        compliance with contracting regulations (including the 
        Federal Acquisition Regulation) after award of such a 
        contract or subcontract;
          (20) shall review all subcontracting plans required 
        by paragraph (4) or (5) of section 8(d) to ensure that 
        the plan provides maximum practicable opportunity for 
        small business concerns to participate in the 
        performance of the contract to which the plan applies;
          (21) shall consult with the appropriate personnel 
        from the relevant Federal agency to assist small 
        business concerns participating in a SBIR or STTR 
        program under section 9 with researching applicable 
        solicitations for the award of a Federal contract 
        (particularly with the Federal agency that has a 
        funding agreement, as defined under section 9, with the 
        concern) to market the research developed by such 
        concern under such SBIR or STTR program.
This subsection shall not apply to the Administration.
  (l) Procurement Center Representatives.--
          (1) Assignment and role.--The Administrator shall 
        assign to each major procurement center a procurement 
        center representative with such assistance as may be 
        appropriate.
          (2) Activities.--A procurement center representative 
        is authorized to--
          (A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        as to whether requirements are to be procured through 
        other than full and open competition and make 
        recommendations with respect to such requirements to 
        the members of such conference or session;
                  (B) review, at any time, barriers to small 
                business participation in Federal contracting 
                previously imposed on goods and services 
                through acquisition method coding or similar 
                procedures, and recommend to personnel of the 
                appropriate activity the prompt reevaluation of 
                such barriers;
                  (C) review barriers to small business 
                participation in Federal contracting arising 
                out of restrictions on the rights of the United 
                States in technical data, and, when 
                appropriate, recommend that personnel of the 
                appropriate activity initiate a review of the 
                validity of such an asserted restriction;
                  (D) review any bundled or consolidated 
                solicitation or contract in accordance with 
                this Act;
                  (E) have access to procurement records and 
                other data of the procurement center 
                commensurate with the level of such 
                representative's approved security clearance 
                classification, with such data provided upon 
                request in electronic format, when available;
                  (F) receive unsolicited proposals from small 
                business concerns and transmit such proposals 
                to personnel of the activity responsible for 
                reviewing such proposals, who shall furnish the 
                procurement center representative with 
                information regarding the disposition of any 
                such proposal;
                  (G) consult with the Director the Office of 
                Small and Disadvantaged Business Utilization of 
                that agency and the agency personnel described 
                in paragraph (7) and (8) of subsection (k) with 
                regard to agency insourcing decisions covered 
                by subsection (k)(11);
                  (H) be an advocate for the maximum 
                practicable utilization of small business 
                concerns in Federal contracting, including by 
                advocating against the consolidation or 
                bundling of contract requirements when not 
                justified;
                  (I) assist small business concerns with 
                finding resources for education and training on 
                compliance with contracting regulations 
                (including the Federal Acquisition Regulation) 
                after award of a contract or subcontract;
                  (J) consult with the appropriate personnel 
                from the relevant Federal agency, to assist 
                small business concerns participating in a SBIR 
                or STTR program under section 9 with Phase III;
                  (K) carry out any other responsibility 
                assigned by the Administrator.
          (3) Appeals.--A procurement center representative is 
        authorized to appeal the failure to act favorably on 
        any recommendation made pursuant to paragraph (2). Such 
        appeal shall be filed and processed in the same manner 
        and subject to the same conditions and limitations as 
        an appeal filed by the Administrator pursuant to 
        subsection (a).
  (4) The Administration shall assign and co-locate at least 
two small business technical advisers to each major procurement 
center in addition to such other advisers as may be authorized 
from time to time. The sole duties of such advisers shall be to 
assist the procurement center representative for the center to 
which such advisers are assigned in carrying out the functions 
described in paragraph (2) and the representatives referred to 
in subsection (k)(6).
          (5) Position requirements.--
                  (A) In general.--A procurement center 
                representative assigned under this subsection 
                shall--
                          (i) be a full-time employee of the 
                        Administration;
                          (ii) be fully qualified, technically 
                        trained, and familiar with the goods 
                        and services procured by the major 
                        procurement center to which that 
                        representative is assigned; and
                          (iii) have the certification 
                        described in subparagraph (C).
                  (B) Compensation.--The Administrator shall 
                establish personnel positions for procurement 
                center representatives assigned under this 
                subsection, which are classified at a grade 
                level of the General Schedule sufficient to 
                attract and retain highly qualified personnel.
                  (C) Certification requirements.--
                          (i) In general.--Consistent with the 
                        requirements of clause (ii), a 
                        procurement center representative shall 
                        have a Level III Federal Acquisition 
                        Certification in Contracting (or any 
                        successor certification) or the 
                        equivalent Department of Defense 
                        certification, except that any person 
                        serving in such a position on or before 
                        January 3, 2013, may continue to serve 
                        in that position for a period of 5 
                        years without the required 
                        certification.
                          (ii) Delay of certification 
                        requirements.--
                                  (I) Timing.--The 
                                certification described in 
                                clause (i) is not required for 
                                any person serving as a 
                                procurement center 
                                representative until the date 
                                that is one calendar year after 
                                the date such person is 
                                appointed as a procurement 
                                center representative.
                                  (II) Application.--The 
                                requirements of subclause (I) 
                                shall--
                                          (aa) be included in 
                                        any initial job posting 
                                        for the position of a 
                                        procurement center 
                                        representative; and
                                          (bb) apply to any 
                                        person appointed as a 
                                        procurement center 
                                        representative after 
                                        January 3, 2013.
          (6) Major procurement center defined.--For purposes 
        of this subsection, the term ``major procurement 
        center'' means a procurement center that, in the 
        opinion of the Administrator, purchases substantial 
        dollar amounts of goods or services, including goods or 
        services that are commercially available.
          (7) Training.--
                  (A) Authorization.--At such times as the 
                Administrator deems appropriate, the breakout 
                procurement center representative shall conduct 
                familiarization sessions for contracting 
                officers and other appropriate personnel of the 
                procurement center to which such representative 
                is assigned. Such sessions shall acquaint the 
                participants with the provisions of this 
                subsection and shall instruct them in methods 
                designed to further the purposes of such 
                subsection.
                  (B) Limitation.--A procurement center 
                representative may provide training under 
                subparagraph (A) only to the extent that the 
                training does not interfere with the 
                representative carrying out other activities 
                under this subsection.
          (8) Annual briefing and report.--A procurement center 
        representative shall prepare and personally deliver an 
        annual briefing and report to the head of the 
        procurement center to which such representative is 
        assigned. Such briefing and report shall detail the 
        past and planned activities of the representative and 
        shall contain such recommendations for improvement in 
        the operation of the center as may be appropriate. The 
        head of such center shall personally receive such 
        briefing and report and shall, within 60 calendar days 
        after receipt, respond, in writing, to each 
        recommendation made by such representative.
          (9) Scope of review.--The Administrator--
                  (A) may not limit the scope of review by the 
                procurement center representative for any 
                solicitation of a contract or task order 
                without regard to whether the contract or task 
                order or part of the contract or task order is 
                set aside for small business concerns, whether 
                1 or more contracts or task order awards are 
                reserved for small business concerns under a 
                multiple award contract, or whether or not the 
                solicitation would result in a bundled or 
                consolidated contract (as defined in subsection 
                (s)) or a bundled or consolidated task order; 
                and
                  (B) shall, unless the contracting agency 
                requests a review, limit the scope of review by 
                the procurement center representative for any 
                solicitation of a contract or task order if 
                such solicitation is awarded by or for the 
                Department of Defense and--
                          (i) is conducted pursuant to section 
                        22 of the Arms Export Control Act (22 
                        U.S.C. 2762);
                          (ii) is a humanitarian operation as 
                        defined in section 401(e) of title 10, 
                        United States Code;
                          (iii) is for a contingency operation, 
                        as defined in section 101(a)(13) of 
                        title 10, United States Code;
                          (iv) is to be awarded pursuant to an 
                        agreement with the government of a 
                        foreign country in which Armed Forces 
                        of the United States are deployed; or
                          (v) both the place of award and the 
                        place of performance are outside of the 
                        United States and its territories.
  (m) Additional Duties of Procurement Center 
Representatives.--All procurement center representatives 
(including those referred to in subsection (k)(6)), in addition 
to such other duties as may be assigned by the Administrator, 
shall increase, insofar as possible, the number and dollar 
value of procurements that may be used for the programs 
established under this section and section 8(a).
  (n) For purposes of this section, the determination of labor 
surplus areas shall be made on the basis of the criteria in 
effect at the time of the determination, except that any 
minimum population criteria shall not exceed twenty-five 
thousand. Such determination, as modified by the preceding 
sentence, shall be made by the Secretary of Labor.
  (o) Limitations on Subcontracting.--A concern may not be 
awarded a contract under subsection (a) as a small business 
concern unless the concern agrees to satisfy the requirements 
of section 46.
  (p) Access to Data.--
          (1) Bundled or consolidated contract defined.--In 
        this subsection, the term ``bundled or consolidated 
        contract'' has the meaning given in subsection (s).
          (2) Database.--Not later than 180 days after the date 
        of the enactment of this subsection, the Administrator 
        of the Small Business Administration shall develop and 
        shall thereafter maintain a database containing data 
        and information regarding--
                  (A) each bundled contract awarded by a 
                Federal agency; and
                  (B) each small business concern that has been 
                displaced as a prime contractor as a result of 
                the award of such a contract.
          (3) Analysis.--For each bundled contract that is to 
        be recompeted as a bundled contract, the Administrator 
        shall determine--
                  (A) the amount of savings and benefits (in 
                accordance with subsection (e)) achieved under 
                the bundling of contract requirements; and
                  (B) whether such savings and benefits will 
                continue to be realized if the contract remains 
                bundled, and whether such savings and benefits 
                would be greater if the procurement 
                requirements were divided into separate 
                solicitations suitable for award to small 
                business concerns.
          (4) Annual report on bundled or consolidated 
        contracts.--
                  (A) In general.--Not later than 1 year after 
                the date of the enactment of this paragraph, 
                and annually in March thereafter, the 
                Administration shall transmit a report on 
                bundled or consolidated contracts to the 
                Committees on Small Business of the House of 
                Representatives and the Senate.
                  (B) Contents.--Each report transmitted under 
                subparagraph (A) shall include--
                          (i) data on the number, arranged by 
                        industrial classification, of small 
                        business concerns displaced as prime 
                        contractors as a result of the award of 
                        bundled or consolidated contracts by 
                        Federal agencies; and
                          (ii) a description of the activities 
                        with respect to previously bundled or 
                        consolidated contracts of each Federal 
                        agency during the preceding year, 
                        including--
                                  (I) data on the number and 
                                total dollar amount of all 
                                contract requirements that were 
                                included in bundled or 
                                consolidated contracts; and
                                  (II) with respect to each 
                                bundled or consolidated 
                                contract, data or information 
                                on--
                                          (aa) the 
                                        justification for the 
                                        bundling of contract 
                                        requirements or the 
                                        consolidation of 
                                        contract requirements 
                                        (as applicable);
                                          (bb) the cost savings 
                                        realized by the 
                                        bundling of contract 
                                        requirements or the 
                                        consolidation of 
                                        contract requirements 
                                        (as applicable) over 
                                        the life of the 
                                        contract;
                                          (cc) the extent to 
                                        which maintaining 
                                        contract requirements 
                                        in a bundled or 
                                        consolidated contract 
                                        is projected to result 
                                        in continued cost 
                                        savings;
                                          (dd) the extent to 
                                        which the bundling of 
                                        contract requirements 
                                        or the consolidation of 
                                        contract requirements 
                                        (as applicable) 
                                        complied with the 
                                        contracting agency's 
                                        small business 
                                        subcontracting plan, 
                                        including the total 
                                        dollar value awarded to 
                                        small business concerns 
                                        as subcontractors and 
                                        the total dollar value 
                                        previously awarded to 
                                        small business concerns 
                                        as prime contractors; 
                                        and
                                          (ee) the impact of 
                                        the bundling of 
                                        contract requirements 
                                        or the consolidation of 
                                        contract requirements 
                                        (as applicable) on 
                                        small business concerns 
                                        unable to compete as 
                                        prime contractors for 
                                        the contract and on the 
                                        industries of such 
                                        small business 
                                        concerns, including a 
                                        description of any 
                                        changes to the 
                                        proportion of any such 
                                        industry that is 
                                        composed of small 
                                        business concerns.
          (5) Access to data.--
                  (A) Federal procurement data system.--To 
                assist in the implementation of this section, 
                the Administration shall have access to 
                information collected through the Federal 
                Procurement Data System.
                  (B) Agency procurement data sources.--To 
                assist in the implementation of this section, 
                the head of each contracting agency shall 
                provide to the Administrator data and 
                information described in paragraphs (2) and 
                (4).
  (q) Reports Related to Procurement Center Representatives.--
          (1) Teaming and joint venture requirements.--
                  (A) In general.--Each Federal agency shall 
                include in each solicitation for any multiple 
                award contract above the substantial bundling 
                threshold of the Federal agency a provision 
                soliciting bids from any responsible source, 
                including responsible small business concerns 
                and teams or joint ventures of small business 
                concerns.
                  (B) Teams.--When evaluating an offer of a 
                small business prime contractor that includes a 
                proposed team of small business subcontractors 
                for any multiple award contract above the 
                substantial bundling threshold of the Federal 
                agency, the head of the agency shall consider 
                the capabilities and past performance of each 
                first tier subcontractor that is part of the 
                team as the capabilities and past performance 
                of the small business prime contractor.
                  (C) Joint ventures.--When evaluating an offer 
                of a joint venture of small business concerns 
                for any multiple award contract above the 
                substantial bundling threshold of the Federal 
                agency, if the joint venture does not 
                demonstrate sufficient capabilities or past 
                performance to be considered for award of a 
                contract opportunity, the head of the agency 
                shall consider the capabilities and past 
                performance of each member of the joint venture 
                as the capabilities and past performance of the 
                joint venture.
          (2) Policies on reduction of contract bundling.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of this subsection, the 
                Federal Acquisition Regulatory Council 
                established under section 25(a) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 
                4219(a)) shall amend the Federal Acquisition 
                Regulation issued under section 25 of such Act 
                to--
                          (i) establish a Government-wide 
                        policy regarding contract bundling, 
                        including regarding the solicitation of 
                        teaming and joint ventures under 
                        paragraph (1); and
                          (ii) require that the policy 
                        established under clause (i) be 
                        published on the website of each 
                        Federal agency.
                  (B) Rationale for contract bundling.--Not 
                later than 30 days after the date on which the 
                head of a Federal agency submits data 
                certifications to the Administrator for Federal 
                Procurement Policy, the head of the Federal 
                agency shall publish on the website of the 
                Federal agency a list and rationale for any 
                bundled contract for which the Federal agency 
                solicited bids or that was awarded by the 
                Federal agency.
          (3) Reporting.--Not later than 90 days after the date 
        of enactment of this subsection, and every 3 years 
        thereafter, the Administrator shall submit to the 
        Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House 
        of Representatives a report regarding procurement 
        center representatives and commercial market 
        representatives, which shall--
                  (A) identify each area for which the 
                Administration has assigned a procurement 
                center representative or a commercial market 
                representative;
                  (B) explain why the Administration selected 
                the areas identified under subparagraph (A); 
                and
                  (C) describe the activities performed by 
                procurement center representatives and 
                commercial market representatives.
  (r) Multiple Award Contracts.--Not later than 1 year after 
the date of enactment of this subsection, the Administrator for 
Federal Procurement Policy and the Administrator, in 
consultation with the Administrator of General Services, shall, 
by regulation, establish guidance under which Federal agencies 
may, at their discretion--
          (1) set aside part or parts of a multiple award 
        contract for small business concerns, including the 
        subcategories of small business concerns identified in 
        subsection (g)(2);
          (2) notwithstanding the fair opportunity requirements 
        under section 3406(c) of title 10, United States Code, 
        and section 303J(b) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 
        253j(b)), set aside orders placed against multiple 
        award contracts for small business concerns, including 
        the subcategories of small business concerns identified 
        in subsection (g)(2); and
          (3) reserve 1 or more contract awards for small 
        business concerns under full and open multiple award 
        procurements, including the subcategories of small 
        business concerns identified in subsection (g)(2).
  (s) Data Quality Improvement Plan.--
          (1) In general.--Not later than October 1, 2015, the 
        Administrator of the Small Business Administration, in 
        consultation with the Small Business Procurement 
        Advisory Council, the Administrator for Federal 
        Procurement Policy, and the Administrator of General 
        Services, shall develop a plan to improve the quality 
        of data reported on bundled or consolidated contracts 
        in the Federal procurement data system (described in 
        section 1122(a)(4)(A) of title 41, United States Code).
          (2) Plan requirements.--The plan shall--
                  (A) describe the roles and responsibilities 
                of the Administrator of the Small Business 
                Administration, each Director of Small and 
                Disadvantaged Business Utilization, the 
                Administrator for Federal Procurement Policy, 
                the Administrator of General Services, senior 
                procurement executives, and Chief Acquisition 
                Officers in--
                          (i) improving the quality of data 
                        reported on bundled or consolidated 
                        contracts in the Federal procurement 
                        data system; and
                          (ii) contributing to the annual 
                        report required by subsection (p)(4);
                  (B) recommend changes to policies and 
                procedures, including training procedures of 
                relevant personnel, to properly identify and 
                mitigate the effects of bundled or consolidated 
                contracts;
                  (C) recommend requirements for periodic and 
                statistically valid data verification and 
                validation; and
                  (D) recommend clear data verification 
                responsibilities.
          (3) Plan submission.--The Administrator of the Small 
        Business Administration shall submit the plan to the 
        Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate not later than December 
        1, 2016.
          (4) Implementation.--Not later than October 1, 2016, 
        the Administrator of the Small Business Administration 
        shall implement the plan described in this subsection.
          (5) Certification.--The Administrator shall annually 
        provide to the Committee on Small Business of the House 
        of Representatives and the Committee on Small Business 
        and Entrepreneurship of the Senate a certification of 
        the accuracy and completeness of data reported on 
        bundled and consolidated contracts.
          (6) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Chief acquisition officer; senior 
                procurement executive.--The terms ``Chief 
                Acquisition Officer'' and ``senior procurement 
                executive'' have the meanings given such terms 
                in section 44(a) of this Act.
                  (B) Bundled or consolidated contract.--The 
                term ``bundled or consolidated contract'' means 
                a bundled contract (as defined in section 3(o)) 
                or a contract resulting from the consolidation 
                of contracting requirements (as defined in 
                section 44(a)(2)).
  (t) GAO Report on Small Business Administration Programs in 
Puerto Rico.--Not later than one year after the date of 
enactment of this subsection, the Comptroller General of the 
United States shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report on the 
application and utilization of contracting activities of the 
Administration (including contracting activities relating to 
HUBZone small business concerns) in Puerto Rico. The report 
shall also identify any provisions of Federal law that may 
create an obstacle to the efficient implementation of such 
contracting activities.
  (u) Post-Award Compliance Resources.--The Administrator shall 
provide to small business development centers and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 388 of title 10, 
United States Code, and shall make available on the website of 
the Administration, a list of resources for small business 
concerns seeking education and assistance on compliance with 
contracting regulations (including the Federal Acquisition 
Regulation) after award of a contract or subcontract.
  (v) Regulatory Changes and Training Materials.--Not less than 
annually, the Administrator shall provide to the Defense 
Acquisition University (established under section 1746 of title 
10, United States Code), the Federal Acquisition Institute 
(established under section 1201 of title 41, United States 
Code), the individual responsible for mandatory training and 
education of the acquisition workforce of each agency 
(described under section 1703(f)(1)(C) of title 41, United 
States Code), small business development centers, and entities 
participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 388 of title 10, 
United States Code--
          (1) a list of all changes made in the prior year to 
        regulations promulgated--
                  (A) by the Administrator that affect Federal 
                acquisition; and
                  (B) by the Federal Acquisition Council that 
                implement amendments to this Act; and
          (2) any materials the Administrator has developed 
        that explain, train, or assist Federal agencies or 
        departments or small business concerns with compliance 
        with the regulations described in paragraph (1).
  (w) Solicitation Notice Regarding Administration of Change 
Orders for Construction.--
          (1) In general.--With respect to any solicitation for 
        the award of a contract for construction anticipated to 
        be awarded to a small business concern, the agency 
        administering such contract shall provide a notice 
        along with the solicitation to prospective bidders and 
        offerors that includes--
                  (A) information about the agency's policies 
                or practices in complying with the requirements 
                of the Federal Acquisition Regulation relating 
                to the timely definitization of requests for an 
                equitable adjustment; and
                  (B) information about the agency's past 
                performance in definitizing requests for 
                equitable adjustments in accordance with 
                paragraph (2).
          (2) Requirements for agencies.--An agency shall 
        provide the past performance information described 
        under paragraph (1)(B) as follows:
                  (A) For the 3-year period preceding the 
                issuance of the notice, to the extent such 
                information is available.
                  (B) With respect to an agency that, on the 
                date of the enactment of this subsection, has 
                not compiled the information described under 
                paragraph (1)(B)--
                          (i) beginning 1 year after the date 
                        of the enactment of this subsection, 
                        for the 1-year period preceding the 
                        issuance of the notice;
                          (ii) beginning 2 years after the date 
                        of the enactment of this subsection, 
                        for the 2-year period preceding the 
                        issuance of the notice; and
                          (iii) beginning 3 years after the 
                        date of the enactment of this 
                        subsection and each year thereafter, 
                        for the 3-year period preceding the 
                        issuance of the notice.
          (3) Format of past performance information.--In the 
        notice required under paragraph (1), the agency shall 
        ensure that the past performance information described 
        under paragraph (1)(B) is set forth separately for each 
        definitization action that was completed during the 
        following periods:
                  (A) Not more than 30 days after receipt of a 
                request for an equitable adjustment.
                  (B) Not more than 60 days after receipt of a 
                request for an equitable adjustment.
                  (C) Not more than 90 days after receipt of a 
                request for an equitable adjustment.
                  (D) Not more than 180 days after receipt of a 
                request for an equitable adjustment.
                  (E) Not more than 365 days after receipt of a 
                request for an equitable adjustment.
                  (F) More than 365 days after receipt of a 
                request for an equitable adjustment.
                  (G) After the completion of the performance 
                of the contract through a contract modification 
                addressing all undefinitized requests for an 
                equitable adjustment received during the term 
                of the contract.
  (x) Small Business Credit for Puerto Rico Businesses And 
Covered Territory Businesses.--
          (1) Credit for meeting contracting goals.--If an 
        agency awards a prime contract to Puerto Rico business 
        or a covered territory business, or a prime contractor 
        awards a subcontract (at any tier) to a subcontractor 
        that is a Puerto Rico business or a covered territory 
        business, during the period beginning on the date of 
        enactment of this subsection and ending on the date 
        that is 4 years after such date of enactment, the value 
        of the contract or subcontract shall be doubled for 
        purposes of determining compliance with the goals for 
        procurement contracts under subsection (g)(1)(A) during 
        such period.
          (2) Report.--Along with the report required under 
        subsection (h)(1), the head of each Federal agency 
        shall submit to the Administrator, and make publicly 
        available on the scorecard (as defined in subsection 
        (y)), an analysis of the number and dollar amount of 
        prime contracts awarded pursuant to paragraph (1) for 
        each fiscal year of the period described in such 
        paragraph.
  (y) Scorecard Program for Evaluating Federal Agency 
Compliance With Small Business Contracting Goals.--
          (1) Use of scorecard.--The Administrator shall use a 
        scorecard to annually evaluate whether each Federal 
        agency is creating the maximum practicable 
        opportunities for the award of prime contracts and 
        subcontracts to small business concerns, small business 
        concerns owned and controlled by service-disabled 
        veterans, qualified HUBZone small business concerns, 
        small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, 
        and small business concerns owned and controlled by 
        women, by assigning a score to each Federal agency for 
        the previous fiscal year.
          (2) Contents of scorecard.--The scorecard shall 
        include, for each Federal agency and Governmentwide, 
        the following information:
                  (A) A determination of whether a Federal 
                agency or the Federal Government, as 
                applicable, met each of the prime contract 
                goals established pursuant to subsection 
                (g)(1)(B) with respect to small business 
                concerns, small business concerns owned and 
                controlled by service-disabled veterans, 
                qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women.
                  (B) A determination of whether a Federal 
                agency or the Federal Government, as 
                applicable, met each of the subcontract goals 
                established pursuant to such section with 
                respect to small business concerns, small 
                business concerns owned and controlled by 
                service-disabled veterans, qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women.
                  (C) The number of small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women awarded prime contracts in each North 
                American Industry Classification System code 
                during the fiscal year and a comparison to the 
                number of awarded contracts during the prior 
                fiscal year, if available.
                  (D) The number of small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women awarded subcontracts in each North 
                American Industry Classification System code 
                during the fiscal year and a comparison to the 
                number of awarded subcontracts during the prior 
                fiscal year, if available.
                  (E) Any other factors that the Administrator 
                deems important to achieve the maximum 
                practicable utilization of small business 
                concerns, small business concerns owned and 
                controlled by service-disabled veterans, 
                qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                socially and economically disadvantaged 
                individuals, and small business concerns owned 
                and controlled by women.
          (3) Weighted factors.--In using the scorecard to 
        evaluate and assign a score to a Federal agency, the 
        Administrator shall base--
                  (A) fifty percent of the score on the dollar 
                value of prime contracts described in paragraph 
                (2)(A); and
                  (B) fifty percent of the score on the 
                information provided in subparagraphs (B) 
                through (E) of paragraph (2), weighted in a 
                manner determined by the Administrator to 
                encourage the maximum practicable opportunity 
                for the award of prime contracts and 
                subcontracts to small business concerns, small 
                business concerns owned and controlled by 
                service-disabled veterans, qualified HUBZone 
                small business concerns, small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals, and 
                small business concerns owned and controlled by 
                women.
          (4) Additional requirements for scorecards.--The 
        scorecard shall include, for each Federal agency and 
        Governmentwide, the following information with respect 
        to prime contracts:
                  (A) The number (expressed as a percentage) 
                and total dollar amount of awards made to small 
                business concerns owned and controlled by women 
                through sole source contracts and competitions 
                restricted to small business concerns owned and 
                controlled by women under section 8(m).
                  (B) The number (expressed as a percentage) 
                and total dollar amount of awards made to small 
                business concerns owned and controlled by 
                qualified HUBZone small business concerns 
                through sole source contracts and competitions 
                restricted to qualified HUBZone small business 
                concerns under section 31(c)(2).
                  (C) The number (expressed as a percentage) 
                and total dollar amount of awards made to small 
                business concerns owned and controlled by 
                service-disabled veterans through sole source 
                contracts and competitions restricted to small 
                business concerns owned and controlled by 
                service-disabled veterans under section 36.
                  (D) The number (expressed as a percentage) 
                and total dollar amount of awards made to 
                socially and economically disadvantaged small 
                business concerns under section 8(a) through 
                sole source contracts and competitions 
                restricted to socially and economically 
                disadvantaged small business concerns, 
                disaggregated by awards made to such concerns 
                that are owned and controlled by individuals 
                and awards made to such concerns that are owned 
                and controlled by an entity.
          (5) Publication.--The scorecard used by the 
        Administrator under this subsection shall be submitted 
        to the President and Congress along with the report 
        submitted under subsection (h)(2).
          (6) Scorecard defined.--In this subsection, the term 
        ``scorecard'' means any summary using a rating system 
        to evaluate the efforts of a Federal agency to meet 
        goals established under subsection (g)(1)(B) that--
                  (A) includes the measures described in 
                paragraph (2); and
                  (B) assigns a score to each Federal agency 
                evaluated.

           *       *       *       *       *       *       *


                         XVIII. MINORITY VIEWS

    The Small Business Administration (SBA) is tasked with 
ensuring that small businesses are awarded a ``fair proportion 
of the total purchases and contracts for goods and services of 
the Government in each industry category. . . .'' In accordance 
with this mandate, Congress set forth the governmentwide goal 
of awarding at least 23% of all small business eligible Federal 
prime contracting dollars to small businesses.
    Additionally, Congress has created four contracting 
programs that seek to level the playing field for small 
businesses by providing contracting opportunities and 
preferences to firms in certain socioeconomic categories. The 
Congress has further established goals for prime and 
subcontract dollars to each of the categories, and this process 
is overseen by SBA in consultation with federal agencies.
    The statutory goals are as follows: of awarding 5% of prime 
contracts and subcontracts for women-owned small businesses 
(WOSB) and small disadvantaged businesses (SDB); and 3% of 
prime contracts and subcontracts for service-disabled veteran-
owned small businesses (SDVOSB) and HUBZone certified small 
businesses. Recently, the administration raised the SDB goal to 
15% by 2025 and the Fiscal Year 2024 National Defense 
Authorization Act raised the SDVOSB goal to 5%.
    Each agency works to meet both the topline, total small 
business goal of 23% and each of the subcategory goals. 
Agencies are then assigned a ``score'' for spending towards the 
goals for the previous fiscal year. SBA publishes an annual 
Small Business Procurement Scorecard that grades each agency on 
their spending toward the goals.
    In FY22, the federal government met its overall goal for 
small business participation. SBA's scorecard showed that the 
federal government awarded 26.5% of federal contract dollars to 
small businesses, a total of $162.9 billion.\1\
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    \1\The Small Business Administration, Fiscal Year 2022 Small 
Business Procurement Scorecard: https://www.sba.gov/document/support-
small-business-procurement-scorecard-overview#
scorecard-versions.
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    The committee believes and appreciates that most agency 
officials are making good faith efforts to ensure that small 
businesses are able to participate in the federal marketplace 
and providing maximize opportunities for small business 
government contractors. Requiring testimony is an additional 
way to encourage agencies to meet their federal contracting 
goals by using Congressional leverage and oversight tools to 
enhance accountability.
    The committee is particularly pleased to see that this bill 
includes not only agencies that have not received an `A' on the 
scorecard, but also agencies that have not met two or more of 
their subcategory goals. Each of the categories--including and 
especially the HUBZone Small Business and the WOSB federal 
contracting programs--continue to need additional focus and 
this is a helpful step in that direction.
            Sincerely,
                                        Nydia M. Velazquez,
                                                    Ranking Member.

                                  [all]