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SEC. 870. REQUIREMENTS RELATING TO
CREDIT FOR CERTAIN SMALL BUSINESS CONCERN SUBCONTRACTORS.
(a) Credit for Certain Small Business
Concern Subcontractors.--Section 8(d)(16) of the Small Business
Act (15 U.S.C. 637(d)) is amended to read as follows:
``(16) Credit for certain small business
concern subcontractors.--
``(A) In general.--For purposes of
determining whether or not a prime contractor has attained the
percentage goals specified in paragraph (6)--
``(i) if the subcontracting goals
pertain only to a single contract with a Federal agency, the
prime contractor may elect to receive credit for small
business concerns performing as first tier subcontractors or
subcontractors at any tier pursuant to the subcontracting
plans required under paragraph (6)(D) in an amount equal to
the total dollar value of any subcontracts awarded to such
small business concerns; and
``(ii) if the subcontracting goals
pertain to more than one contract with one or more Federal
agencies, or to one contract with more than one Federal
agency, the prime contractor may only receive credit for
first tier subcontractors that are small business concerns.
``(B) Collection and review of data on
subcontracting plans.--The head of each contracting agency
shall ensure that the agency--
``(i) collects and reports data on
the extent to which prime contractors of the agency meet the
goals and objectives set forth in subcontracting plans
submitted pursuant to this subsection; and
``(ii) periodically reviews data
collected and reported pursuant to clause (i) for the
purpose of ensuring that such contractors comply in good
faith with the requirements of this subsection.
``(C) Rule of construction.--Nothing
in this paragraph shall be construed to allow a Federal agency
to establish a goal for an number of subcontracts with a
subcontractor at any tier for a prime contractor otherwise
eligible to receive credit under this paragraph.''.
(b) Maintenance of Records With Respect
to Credit Under a Subcontracting Plan.--Section 8(d)(6) of the
Small Business Act (15 U.S.C. 637(d)(6)) is amended--
(1) by redesignating subparagraphs (G)
and (H) as subparagraphs (H) and (I), respectively (and
conforming the margins accordingly); and
(2) by inserting after subparagraph
(F) the following new subparagraph:
``(G) a recitation of the types of
records the successful offeror or bidder will maintain to
demonstrate that procedures have been adopted to substantiate
the credit the successful offeror or bidder will elect to
receive under paragraph (16)(A);''.
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Requirements relating to credit for
certain small business concern subcontractors (sec. 870)
The House amendment contained a provision
(sec. 873) that would amend section 8(d) of the Small Business
Act (15 U.S.C. 637) to clarify that large prime contractors have
the ability to receive subcontracting credit for small
businesses at lower tiers; strengthen the agency's ability to
collect and review data regarding prime contractors' achievement
of their subcontracting plans; require the prime contractor to
keep and
maintain records to demonstrate subcontracting credit claimed;
and implement a new dispute process allowing small
subcontractors to bring nonpayment issues to the agency small
business advocate.
The Senate bill contained no similar
provision.
The Senate recedes with amendment that
would remove the new dispute process for nonpayment issues.
House Report
116-120
Section
873--Modifications to Small Business Subcontracting
This section would ensure greater accountability for prime
contractors electing to receive subcontracting credit for
subcontracting with small businesses at lower tiers, and would
provide small businesses with an alternative avenue for
nonpayment issues with the prime contractor. This section would
clarify that large prime contractors have the ability to receive
subcontracting credit for small businesses at lower tiers; would
strengthen the agency's ability to collect and review data
regarding prime contractors' achievement of their subcontracting
plans; would require the prime contractor to keep and maintain
records to demonstrate subcontracting credit claimed; and would
implement a new dispute process allowing small subcontractors to
bring nonpayment issues to the agency small business advocate. |
