NDAA for Fiscal Year 2012

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TITLE XVI--INDUSTRIAL BASE MATTERS Subtitle B--Matters Relating to Small Business Concerns
P. L. 113-66	Explanatory Statement, H7894
SEC. 1611. ADVANCING SMALL BUSINESS GROWTH. (a) Advancing Small Business Growth- (1) IN GENERAL- Chapter 142 of title 10, United States Code, is amended-- (A) by redesignating section 2419 as section 2420; and (B) by inserting after section 2418 the following new section 2419: -`Sec. 2419. Advancing small business growth `(a) Contract Clause Required- (1) The Under Secretary of Defense for Acquisition, Technology, and Logistics shall require the clause described in paragraph (2) to be included in each covered contract awarded by the Department of Defense. `(2) The clause described in this paragraph is a clause that-- `(A) requires the contractor to acknowledge that acceptance of the contract may cause the business to exceed the applicable small business size standards (established pursuant to section 3(a) of the Small Business Act) for the industry concerned and that the contractor may no longer qualify as a small business concern for that industry; and `(B) encourages the contractor to develop capabilities and characteristics typically desired in contractors that are competitive as an other-than-small business in that industry. `(b) Availability of Assistance- Covered small businesses may be provided assistance as part of any procurement technical assistance furnished pursuant to this chapter. `(c) Definitions- In this section: `(1) The term `covered contract' means a contract-- `(A) awarded to a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act; and `(B) with an estimated annual value-- `(i) that will exceed the applicable receipt-based small business size standard; or `(ii) if the contract is in an industry with an employee-based size standard, that will exceed $70,000,000. `(2) The term `covered small business' means a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act that has entered into a contract with the Department of Defense that includes a contract clause described in subsection (a)(2).'. (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by striking the item relating to section 2419 and inserting the following: `2419. Advancing small business growth. `2420. Regulations.'. (b) Exception to Limitation on Funding- Section 2414 of such title is amended-- (1) in subsection (a), by striking `The value' and inserting `Except as provided in subsection (c), the value'; and (2) by adding at the end the following new subsection (c): `(c) Exception- The value of the assistance provided in accordance with section 2419(b) of this title is not subject to the limitations in subsection (a).'. (c) Revisions to Cooperative Agreements- (1) FULL FUNDING ALLOWED FOR CERTAIN ASSISTANCE- Section 2413(b) of such title is amended-- (A) by striking `except that in the case' and inserting: `except that-- `(1) in the case'; (B) by striking the period at the end and inserting `; and'; and (C) by adding at the end the following new paragraph: `(2) in the case of a program sponsored by such an entity that provides assistance for covered small businesses pursuant to section 2419(b) of this title, the Secretary may agree to furnish the full cost of such assistance.'. (2) ADDITIONAL CONSIDERATIONS- Section 2413 of such title is further amended by adding at the end the following new subsection: `(e) In determining the level of funding to provide under an agreement under subsection (b), the Secretary shall consider the forecast by the eligible entity of demand for procurement technical assistance, and, in the case of an established program under this chapter, the outlays and receipts of such program during prior years of operation.'. (3) CONFORMING AMENDMENT- Section 2413(d) of such title is amended by striking `and in determining the level of funding to provide under an agreement under subsection (b),'. (d) Report Required- Not later than March 15, of 2015, 2016, and 2017, the Secretary of Defense shall submit to the congressional defense committees a report on the implementation of the amendments made by this section, along with any recommendations for improving the Procurement Technical Assistance Cooperative Agreement Program.	Advancing small business growth (sec. 1611) The House bill contained a provision (sec. 1602) that would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to publish, and update annually, a list of capabilities and characteristics that would enable a qualified small business concern to become competitive as an other-than-small business for future contracts awarded by the Department of Defense. This section would also require any contract awarded to a qualified small business concern that would exceed the applicable receipt-based small business size standard (or if the contract would exceed $70.0 million in an industry with an employee based size standard) to include a contract clause that would encourage the small business to develop the capabilities and characteristics identified by the Under Secretary if they desire to remain competitive as other-than-small business in that industry. In addition, this section would amend chapter 142 of title 10, United States Code, to enable Procurement Technical Assistance Centers (PTAC) to provide additional support to these businesses without the funding and cost-share limitations that are otherwise applicable to PTAC support. Finally, this section would require the Secretary of Defense to submit three annual reports to the congressional defense committees beginning on March 1, 2015, on the implementation of the amendments made by this section, along with any recommendations for improving the Procurement Technical Assistance Cooperative Agreement Program. The Senate committee-reported bill contained no similar provision. The agreement contains the provision with a clarifying amendment. House Report 113-102 SECTION 1602--EXPANSION OF THE PROCUREMENT TECHNICAL ASSISTANCE PROGRAM TO ADVANCE SMALL BUSINESS GROWTH This section would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to publish, and update annually, a list of capabilities and characteristics recommended to enable a qualified small business concern to become competitive as an other-than-small business for future contracts awarded by the Department of Defense. This section would also require any contract awarded to a qualified small business concern that would exceed the applicable receipt-based small business size standard (or if the contract would exceed $70.0 million in an industry with an employee based size standard) to include a contract clause that would encourage the small business to develop the capabilities and characteristics identified by the Under Secretary if they desire to remain competitive as other-than-small business in that industry. In addition, this section would amend chapter 142 of title 10, United States Code, to enable Procurement Technical Assistance Centers (PTAC) to provide additional support to these businesses without the funding and cost-share limitations that are otherwise applicable to PTAC support. Finally, this section would require the Secretary of Defense to submit three annual reports to the congressional defense committees beginning on March 1, 2015, on the implementation of the amendments made by this section, along with any recommendations for improving the Procurement Technical Assistance Cooperative Agreement Program.