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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F—Industrial Base Matters

P. L. 114-

House Conference Report. 114-270

(a) Procurement contracts.—Section 8(a)(17) of the Small Business Act (15 U.S.C. 637(a)(17)) is amended—

(1) in subparagraph (A), by striking “any procurement contract” and all that follows through “section 15” and inserting “any procurement contract, which contract has as its principal purpose the supply of a product to be let pursuant to this subsection, subsection (m), section 15(a), section 31, or section 36,”; and

(2) by adding at the end the following new subparagraph:

“(C) LIMITATION.—This paragraph shall not apply to a contract that has as its principal purpose the acquisition of services or construction.”.

(b) Subcontractor contracts.—Section 46(a)(4) of the Small Business Act (15 U.S.C. 657s(a)(4)) is amended by striking “for supplies from a regular dealer in such supplies” and inserting “which is principally for supplies from a regular dealer in such supplies, and which is not a contract principally for services or construction”.

The Senate amendment contained no similar provision.

The Senate recedes.

House Report 114-102 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 834--Clarification of Requirements Related to Small Business Contracts for Services

This section would amend section 8(a)(17) of the Small Business Act (15 U.S.C. 637(a)(17)) to clarify that the statute applies to contracts for goods, but not services or construction. The committee notes that the non-manufacturer rule (NMR) was established to ensure that, when competition for a contract for goods is restricted to small businesses, the goods ultimately purchased were indeed the product of a small business. However, the committee is concerned that the NMR is being applied to services and construction contracts and could limit small business participants contracting for services and construction to the Federal Government. Therefore, the committee believes this clarification to section 8(a)(17) is necessary.