[House Report 119-37]
[From the U.S. Government Publishing Office]
119th Congress } { REPORT
HOUSE OF REPRESENTATIVES
1st Session } { 119-37
======================================================================
WOSB ACCOUNTABILITY ACT
_______
March 24, 2025.--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. 1816]
The Committee on Small Business, to whom was referred the
bill (H.R. 1816) to establish requirements relating to
certification of small business concerns owned and controlled
by women for certain purposes, 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. 1816.................................4
VII. Congressional Budget Office Cost Estimate.......................4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure4
IX. Oversight Findings & Recommendations............................4
X. Performance Goals and Objectives................................5
XI. Statement of Duplication of Federal Programs....................5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits........................................................5
XIII. Federal Mandates Statement......................................5
XIV. Federal Advisory Committee Statement............................5
XV. Applicability to Legislative Branch.............................5
XVI. Statement of Constitutional Authority...........................5
XVII. Changes in Existing Law, Made by the Bill, as Reported..........5
XVIII.Minority Views.................................................35
Purpose and Bill Summary
On March 3, 2025, Rep. Velazquez, along with Rep. LaLota,
introduced H.R. 1816, the WOSB Accountability Act. H.R. 1816
requires the Small Business Administration (SBA) to only count
certified women-owned small businesses toward Federal
procurement goals.
II. Need for Legislation
The Congressionally mandated government-wide goal to spend
at least five percent of federal contracting dollars towards
women-owned small businesses includes both certified and self-
certified women-owned small businesses. The SBA Office of
Inspector General (OIG) has consistently identified self-
certification as a risk for fraud. This bill will phase out
self-certification in procurement goals and reduce the use of
these firms when agencies award contracts set-aside for women-
owned small businesses.
In recent years, Congress has removed self-certified firms
from being considered in other procurement goals, such as
service-disabled small business owned goals. This continues on
those efforts of ensuring that fraudsters do not take advantage
of any of the Congressionally mandated procurement goals.
III. Hearings
On February 5, 2025, the Committee on Small Business held a
hearing examining matters related to H.R. 1816 titled ``Hope on
the Horizon: Prioritizing Small Business Growth in the 119th
Congress.''
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on March 5, 2025, and ordered H.R. 1816
favorably reported 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. 1816 to
the House of Representatives at 11:45 AM.
VI. Section-by-Section of H.R. 1816
Section 1--Short title
This section cites the bill as the ``WOSB Accountability
Act''.
Section 2--Exclusion of self-certified small business concerns owned
and controlled by women from goals
This section allows only small businesses owned and
controlled by women and certified in the Women-Owned Small
Business (WOSB) program to be calculated in federal procurement
goals. This bill takes effect two fiscal years after the SBA
issues regulations.
This section further allows self-certified women-owned
small businesses to be included in the goals if they self-
certify before the enactment of the previous provision, have
filed a certification application with the SBA or a recognized
certifying entity, and if they have not received an official
determination by the SBA as to acceptance into the WOSB
program.
The SBA is required to issue regulations within one year of
enactment. The SBA is also required to provide quarterly
briefings to the House and Senate Committees on Small Business.
The briefings shall include application numbers and approval
timelines, costs, updates on outreach efforts, and
recommendations for legislative authority or resources needed.
VII. Congressional Budget Office Cost Estimate
Pursuant to 3(c)(3) of rule XIII of the Rules of the House
of Representatives, 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.
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. 1816 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. 1816 are incorporated into the descriptive portions of
this report.
X. Performance Goals and Objectives
With respect to the requirements of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of H.R. 1816 are to require
the SBA to provide quarterly briefings to the House and Senate
Committees on Small Business regarding the implementation of
this legislation, administrative costs, and outputs of
certification activities.
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. 1816 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.
(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.
(4) Exclusion of self-certified wosbs from goals.--
Only small business concerns owned and controlled by
women that have been certified under section 8(m)(2)(E)
shall be included in calculating the goals
established--
(A) under paragraph (1)(A)(v); and
(B) by the head of a Federal agency for small
business concerns owned and controlled by women
under paragraph (2).
(h) Reporting on Goals for Procurement Contracts Awarded to
Small Business Concerns.--
(1) Agency reports.--At the conclusion of each fiscal
year, the head of each Federal agency shall submit to
the Administrator a report describing--
(A) the extent of the participation by small
business concerns, small business concerns
owned and controlled by veterans (including
service-disabled veterans), qualified HUBZone
small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and
small business concerns owned and controlled by
women in the procurement contracts of such
agency during such fiscal year;
(B) whether the agency achieved the goals
established for the agency under subsection
(g)(2) with respect to such fiscal year;
(C) any justifications for a failure to
achieve such goals; and
(D) a remediation plan with proposed new
practices to better meet such goals, including
analysis of factors leading to any failure to
achieve such goals.
(2) Reports by administrator.--Not later than 60 days
after receiving a report from each Federal agency under
paragraph (1) with respect to a fiscal year, the
Administrator shall submit to the President and
Congress, and to make available on a public Web site, a
report that includes--
(A) a copy of each report submitted to the
Administrator under paragraph (1);
(B) a determination of whether each goal
established by the President under subsection
(g)(1) for such fiscal year was achieved;
(C) a determination of whether each goal
established by the head of a Federal agency
under subsection (g)(2) for such fiscal year
was achieved;
(D) the reasons for any failure to achieve a
goal established under paragraph (1) or (2) of
subsection (g) for such fiscal year and a
description of actions planned by the
applicable agency to address such failure,
including the Administrator's comments and
recommendations on the proposed remediation
plan; and
(E) for the Federal Government and each
Federal agency, an analysis of the number and
dollar amount of prime contracts awarded during
such fiscal year to--
(i) small business concerns--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through unrestricted
competition;
(V) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns for purposes of the
initial contract; and
(VI) that were awarded using
a procurement method that
restricted competition to small
business concerns owned and
controlled by service-disabled
veterans, qualified HUBZone
small business concerns, small
business concerns owned and
controlled by socially and
economically disadvantaged
individuals, small business
concerns owned and controlled
by women, or a subset of any
such concerns;
(ii) small business concerns owned
and controlled by service-disabled
veterans--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through competitions
restricted to small business
concerns owned and controlled
by service-disabled veterans;
(V) through unrestricted
competition;
(VI) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns owned and controlled
by service-disabled veterans
for purposes of the initial
contract; and
(VII) that were awarded using
a procurement method that
restricted competition to
qualified HUBZone small
business concerns, small
business concerns owned and
controlled by socially and
economically disadvantaged
individuals, small business
concerns owned and controlled
by women, or a subset of any
such concerns;
(iii) qualified HUBZone small
business concerns--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through competitions
restricted to qualified HUBZone
small business concerns;
(V) through unrestricted
competition where a price
evaluation preference was used;
(VI) through unrestricted
competition where a price
evaluation preference was not
used;
(VII) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be qualified HUBZone
small business concerns for
purposes of the initial
contract; and
(VIII) that were awarded
using a procurement method that
restricted competition to small
business concerns owned and
controlled by service-disabled
veterans, small business
concerns owned and controlled
by socially and economically
disadvantaged individuals,
small business concerns owned
and controlled by women, or a
subset of any such concerns;
(iv) small business concerns owned
and controlled by socially and
economically disadvantaged
individuals--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through competitions
restricted to small business
concerns owned and controlled
by socially and economically
disadvantaged individuals;
(V) through unrestricted
competition;
(VI) by reason of that
concern's certification as a
small business owned and
controlled by socially and
economically disadvantaged
individuals;
(VII) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns owned and controlled
by socially and economically
disadvantaged individuals for
purposes of the initial
contract; and
(VIII) that were awarded
using a procurement method that
restricted competition to small
business concerns owned and
controlled by service-disabled
veterans, qualified HUBZone
small business concerns, small
business concerns owned and
controlled by women, or a
subset of any such concerns;
(v) small business concerns owned by
an Indian tribe (as such term is
defined in section 8(a)(13)) other than
an Alaska Native Corporation--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through competitions
restricted to small business
concerns owned and controlled
by socially and economically
disadvantaged individuals;
(V) through unrestricted
competition; and
(VI) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns owned by an Indian
tribe other than an Alaska
Native Corporation for purposes
of the initial contract;
(vi) small business concerns owned by
a Native Hawaiian Organization--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through competitions
restricted to small business
concerns owned and controlled
by socially and economically
disadvantaged individuals;
(V) through unrestricted
competition; and
(VI) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns owned by a Native
Hawaiian Organization for
purposes of the initial
contract;
(vii) small business concerns owned
by an Alaska Native Corporation--
(I) in the aggregate;
(II) through sole source
contracts;
(III) through competitions
restricted to small business
concerns;
(IV) through competitions
restricted to small business
concerns owned and controlled
by socially and economically
disadvantaged individuals;
(V) through unrestricted
competition; and
(VI) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns owned by an Alaska
Native Corporation for purposes
of the initial contract; and
(viii) small business concerns owned
and controlled by women--
(I) in the aggregate;
(II) through competitions
restricted to small business
concerns;
(III) through competitions
restricted using the authority
under section 8(m)(2);
(IV) through competitions
restricted using the authority
under section 8(m)(2) and in
which the waiver authority
under section 8(m)(3) was used;
(V) through sole source
contracts awarded using the
authority under subsection
8(m)(7);
(VI) through sole source
contracts awarded using the
authority under section
8(m)(8);
(VII) by industry for
contracts described in
subclause (III), (IV), (V), or
(VI);
(VIII) through unrestricted
competition;
(IX) that were purchased by
another entity after the
initial contract was awarded
and as a result of the
purchase, would no longer be
deemed to be small business
concerns owned and controlled
by women for purposes of the
initial contract; and
(X) that were awarded using a
procurement method that
restricted competition to small
business concerns owned and
controlled by service-disabled
veterans, qualified HUBZone
small business concerns, small
business concerns owned and
controlled by socially and
economically disadvantaged
individuals, or a subset of any
such concerns; and
(F) for the Federal Government, the number,
dollar amount, and distribution with respect to
the North American Industry Classification
System of subcontracts awarded during such
fiscal year to small business concerns, small
business concerns owned and controlled by
service-disabled veterans, qualified HUBZone
small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and
small business concerns owned and controlled by
women, provided that such information is
publicly available through data systems
developed pursuant to the Federal Funding
Accountability and Transparency Act of 2006
(Public Law 109 282), or otherwise available as
provided in paragraph (3).
(3) Procurement data.--
(A) Federal procurement data system.--
(i) In general.--To assist in the
implementation of this section, the
Administrator shall have access to
information collected through the
Federal Procurement Data System,
Federal Subcontracting Reporting
System, or any new or successor system.
(ii) GSA report.--On the date that
the Administrator makes available the
report required under paragraph (2),
the Administrator of the General
Services Administration shall submit to
the President and Congress, and shall
make available on a public website, a
report in the same form and manner, and
including the same information, as the
report required under paragraph (2).
The report shall include all
procurements made for the period
covered by the report and may not
exclude any contract awarded.
(B) Agency procurement data sources.--To
assist in the implementation of this section,
the head of each contracting agency shall
provide, upon request of the Administrator,
procurement information collected through
agency data collection sources in existence at
the time of the request. Contracting agencies
shall not be required to establish new data
collection systems to provide such data.
(4) Best in class small business participation
reporting.--
(A) Addendum.--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's (SBA) Women-Owned Small
Business (WOSB) Contracting Program is designed to help the
government recruit women-owned small businesses and
economically disadvantaged women-owned small businesses
(EDWOSBs) into the federal marketplace and level the playing
field when they compete for contracts.
The data shows that women are starting and running small
businesses at increasingly similar rates to their male
counterparts but they are not participating in the federal
market at the same rate. The number of companies in the economy
are overwhelmingly small, and about 40 percent woman-owned,
while in the federal marketplace, just over 28 percent are
small, and less than five percent are confirmed to be woman-
owned.\1\
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\1\Nat'l Women's Bus. Council, NWBC 2024 Annual Report, 45 (Dec.
2024), https://www.nwbc.gov/wp-content/uploads/2024/12/NWBC-2024-
Annual-Report.pdf.
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The federal government attempts to expand contracting
opportunities for WOSBs in two main ways: (a) setting an
overall goal of awarding 5% of federal contracting dollars to
women-owned firms; and (b) using streamlined authorities to
make it easier for federal agencies to contract with women-
owned firms. These authorities allow contracting officers to
set-aside a contract for exclusively WOSBs competition and to
sole source contracts to a WOSB firm if certain conditions are
met.
The SBA's Office of Government Contracting and Business
Development certifies applicants seeking to enter the WOSB
Program. Currently, a WOSB must be certified to be awarded a
contract that is set-aside or sole sourced. But if a women-
owned small business who self-certifies their WOSB status is
awarded a contract by a federal agency through other methods,
that federal agencies can count the value of that contract
toward their 5% procurement goal.
In 1994 when Congress first established the goal, it
recognized the obstacles that female entrepreneurs face
competing in the federal market, stating in the committee
report: ``Given the slow progress to date . . . this goal may
take some time to be reached.'' Three decades later, this
remains an understatement.
The federal government topline goal of 5% for WOSBs has
only been met twice and federal agencies routinely miss their
individual WOSB goals, while the contracting authorities are
underutilized and represent a tiny percentage of contracts that
count towards the goal. Less than $2 billon of the almost $31
billion in contracts awarded to women-owned small businesses
are solicited in a way that only WOSBs can compete.
While women-owned firms are not seeing the contracting
opportunities that should accompany their level of
participation in the market, the goals continue to have value.
In addition to the government-wide goal, there are two other
that are important for women-owned firms.
First, each federal agency attempts to meet their own 5%
goal. This helps WOSBs with products or services unique to that
agency's mission compete for their first government contract.
In order to a federal agency, the company has likely met most
of the government's unique requirements and can then more
easily sell their products to other agencies. This process
assists in expanding their markets and diversifying their
customer base.
Second, large prime contractors have to meet subcontracting
goals. There are challenges associated with subcontracting,
subcontracting requirements, and data but for many small
businesses, subcontracting is how they get a foot in the door
to the federal marketplace.
The purpose of this legislation is to protect the integrity
of the WOSB program and the WOSB goals but it will concurrently
act as an incentive for more women-owned small businesses to
get certified. This would allow agency personal to better and
more frequently utilize the authorities designed to make
contracting with WOSBs easier--bringing more opportunities to
all WOSB firms and encouraging more women-owned small
businesses to compete for government contracts.
Study after study shows a shrinking industrial base. The
government has over 40% fewer small businesses in its ecosystem
than a decade ago.\2\ More small businesses are leaving the
federal market quicker and fewer and fewer are signing up to
take their place. This exodus has disproportionately impacted
women-owned firms: ``From FY20 to FY21, there was a 6 percent
decline in small business owners awarded federal contracts, and
WOSBs accounted for a quarter of that decline.''\3\
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\2\Gov't Accountability Off., Small Business Contracting: Actions
Needed to Implement and Monitor DoD's Small Business Strategy (Oct.
2021).
\3\Nat'l Women's Bus. Council, NWBC 2023 Annual Report, 47 (Dec.
2023), https://www.nwbc.gov/wp-content/uploads/2023/12/
NWBC_AR_2023_FINAL-508.pdf.
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Expanding and protecting the WOSB program, as this bill
will do, will allow agencies to better utilize and leverage it
to bring more new small businesses--and their talent,
innovation, and solutions--into the federal marketplace.
Nydia M. Velazquez,
Ranking Member.
[all]