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TITLE XVII — SMALL BUSINESS PROCUREMENT AND INDUSTRIAL BASE MATTERS

P. L. 115-

House Conference Report. 115-404

SEC. 1714. REPORT ON UTILIZATION OF SMALL BUSINESS CONCERNS FOR FEDERAL CONTRACTS.

(a) Findings.—Congress finds that—

(1) since the passage of the Budget Control Act of 2011 (Public Law 112–25; 125 Stat. 240), many Federal agencies have started favoring longer-term Federal contracts, including multiple award contracts, over direct individual awards;

(2) these multiple award contracts have grown to more than one-fifth of Federal contract spending, with the fastest growing multiple award contracts each surpassing $100,000,000 in obligations for the first time between 2013 and 2014;

(3) in fiscal year 2017, 17 of the 20 largest Federal contract opportunities are multiple award contracts;

(4) while Federal agencies may choose to use any or all of the various socioeconomic groups on a multiple award contract, the Small Business Administration only examines the performance of socioeconomic groups through the small business procurement scorecard and does not examine potential opportunities for those groups; and

(5) Congress and the Department of Justice have been clear that no individual socioeconomic group shall be given preference over another.

(b) Definitions.—In this section—

(1) the term “Administrator” means the Administrator of the Small Business Administration;

(2) the term “covered small business concerns” means—

(A) qualified HUBZone small business concerns;

(B) small business concerns owned and controlled by service-disabled veterans;

(C) small business concerns owned and controlled by women; and

(D) small business concerns owned and controlled by socially and economically disadvantaged individuals, as defined under section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C)); and

(3) the terms “qualified HUBZone small business concern”, “small business concern”, “small business concern owned and controlled by service-disabled veterans”, and “small business concern owned and controlled by women” have the meanings given those terms in section 3 of the Small Business Act (15 U.S.C. 632).

(c) Report.—

(1) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that includes—

(A) a determination as to whether small business concerns and each category of covered small business concern are being utilized in a significant portion of the multiple award contracts awarded by the Federal Government, including—

(i) whether awards are reserved for concerns in 1 or more of those categories; and

(ii) whether concerns in each such category are given the opportunity to perform on multiple award contracts;

(B) a determination as to whether performance requirements for multiple award contracts, as in effect on the day before the date of enactment of this Act, are feasible and appropriate for small business concerns and covered small business concerns; and

(C) any additional information as the Administrator may determine necessary.

(2) REQUIREMENT.—In making the determinations required under paragraph (1), the Administrator shall use information—

(A) from multiple award contracts with varied assigned North American Industry Classification System codes; and

(B) about the awards of multiple award contracts from not less than eight Federal agencies.

Report on utilization of small business concerns for Federal contracts (sec. 1714)

The Senate amendment contained a provision (sec. 14012) that would require the Administrator of the Small Business Administration to 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 on whether small business concerns are being utilized in a significant portion of the Federal market on multiple award contracts and a determination as to whether performance requirements for multiple award contracts are feasible and appropriate for small business concerns.

The House bill contained no similar provision.

The House recedes.

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