,i #aacth ,,congress #ast ,session ,h4 ,r4 #beea ,,in ,,the ,,house ,,of ,,representatives ,june #bg1 #bjac ,mr4 ,rush introduced the following bill2 which was referred to the ,committee on ,small ,business1 and in addition to the ,committees on ,financial ,services and ,oversight and ,government ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,small ,business ,act to ensure that certain ,federal contracts are set aside for small businesses1 to enhance services to small businesses that are disadvantaged1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,expanding ,opportunities for ,main ,street ,act of #bjac4 ,i ,,small ,,business ,,administration #aja4 ,contract opportunities for small business concerns 7a7 ,definitions ,in this section-- 7#a7 the term eligible contract means any contract for the acquisition of goods or services that is in an amount 7including options7 of more than #c1jjj and less than #ejj1jjj2 and 7#b7 the term small business concern has the meaning given that term under section #c7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;a774 7b7 ,in general ,notwithstanding any other provision of law1 a ,federal department or agency shall1 to the extent practicable1 award to a small business concern each eligible contract let by the department or agency4 7c7 ,sole source contracts ,a ,federal department or agency may award an eligible contract as a sole source contract to a small business concern if at least #a small business concern submits an offer with respect to the eligible contract4 7d7 ,award to small business not practicable 7#a7 ,in general ,if a contracting officer of a ,federal department or agency determines that awarding an eligible contract to a small business concern under subsection 7b7 is not practicable1 the contracting officer shall make available to the ,administrator of the ,small ,business ,administration and the public-- 7,a7 the determination and reasoning of such officer with respect to the eligible contract2 and 7,b7 the name of each small business concern that submitted an offer with respect to the eligible contract4 7#b7 ,review ,the ,administrator of the ,small ,business ,administration shall-- 7,a7 review a determination under paragraph 7#a72 and 7,b7 if the ,administrator determines it is appropriate1 open the eligible contract opportunity for the submission of additional offers and award the contract4 #ajb4 ,enhancement of services to small businesses that are disadvantaged 7a7 ,net worth ,section #h7;a77#f77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;a77#f77;,a77 is amended by inserting after disadvantaged individual4 the following3 ,for purposes of this section1 an individual having a net worth of more than #a1ejj1jjj is not economically disadvantaged44 7b7 ,time limit on participation ,section #g7;j77#ae7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;j77#ae77 is amended-- 7#a7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7#b7 by inserting 7,a7 after 7#ae72 and 7#c7 by adding at the end the following3 7,b7 ,no time limitation relating to the period that a small business concern may receive developmental assistance under the ,program and contracts under section #h7;a7 shall apply to a small business concern that has not completed a contract under section #h7;a74 4 #ajc4 ,bundled contracts 7a7 ,definitions ,section #c7o7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7o77 is amended to read as follows3 7o7 ,definitions of bundling of contract requirements and related terms ,in this ,act3 7#a7 ,bundled contract 7,a7 ,in general ,the term bundled contract means a contract or order that is entered into to meet procurement requirements that are consolidated in a bundling of contract requirements1 without regard to how the procuring agency has designated the contract or order or whether a study of the effects of the solicitation on civilian or military personnel has been made4 7,b7 ,exceptions ,the term does not include-- 7i7 a contract or order with an aggregate dollar value below the dollar threshold2 or 7ii7 a contract or order that is entered into to meet an exempted requirement4 7#b7 ,bundling of contract requirements 7,a7 ,in general ,the term bundling of contract requirements means the use of any bundling methodology to satisfy #b or more procurement requirements for goods or services previously supplied or performed under separate smaller contracts or orders1 or to satisfy #b or more procurement requirements for construction services of a type historically performed under separate smaller contracts or orders1 that is likely to be unsuitable for award to a small business concern due to-- 7i7 the diversity1 size1 or specialized nature of the elements of the performance specified2 7ii7 the aggregate dollar value of the anticipated award2 7iii7 the geographical dispersion of the contract or order performance sites2 or 7iv7 any combination of the factors described in clauses 7i71 7ii71 and 7iii74 7,b7 ,inclusion of new features or functions ,a combination of contract requirements that would meet the definition of a bundling of contract requirements but for the addition of a procurement requirement with at least #a new good or service shall be considered to be a bundling of contract requirements unless the new features or functions substantially transform the goods or services and will provide measurably substantial benefits to the ,federal ,government in terms of quality1 performance1 or price4 7,c7 ,exceptions ,the term bundling of contract requirements does not include-- 7i7 the use of a bundling methodology for an anticipated award with an aggregate dollar value below the dollar threshold2 or 7ii7 the use of a bundling methodology to meet an exempted requirement4 7#c7 ,bundling methodology ,the term bundling methodology means-- 7,a7 a solicitation to obtain offers for a single contract or order1 or a multiple award contract or order2 or 7,b7 a solicitation of offers for the issuance of a task or a delivery order under an existing single or multiple award contract or order4 7#d7 ,separate smaller contract ,the term separate smaller contract1 with respect to bundling of contract requirements1 means a contract or order that has been performed by #a or more small business concerns or was suitable for award to #a or more small business concerns4 7#e7 ,dollar threshold ,the term dollar threshold means-- 7,a7 #fe1jjj1jjj1 in the case of a contract or order that is solely for construction services2 and 7,b7 #e1jjj1jjj for a contract or order not described in subparagraph 7,a74 7#f7 ,exempted requirement ,the term exempted requirement means a procurement requirement solely for items that are not commercial items 7as the term commercial item is defined in section #ajc of title #da1 ,united ,states ,code74 7#g7 ,procurement requirement ,the term procurement requirement means a determination by a ,federal agency that a specified good or service is needed to satisfy the mission of the ,federal agency4 4 7b7 ,proposed procurement requirements ,section #ae7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;a77 is amended-- 7#a7 in the third sentence1 by striking necessary and justified and inserting necessary and justified1 and identifying information on the incumbent contract holders1 a description of the industries that might be interested in bidding on the contract requirements1 and the number of small businesses listed in the industry categories that could be excluded from future bidding if the contract is combined or packaged2 and 7#b7 by striking the sixth sentence and inserting the following3 ,whenever the ,administration and the contracting procurement agency fail to agree1 the ,administrator may review the proposed procurement or delay the solicitation process for not more than #aj days to make recommendations1 and the matter shall be submitted to the ,director of the ,office of ,management and ,budget to mediate the disagreement44 #ajd4 ,federal contracting goals 7a7 ,increase in certain goals ,section #ae7;g77#a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77#a77 is amended-- 7#a7 by striking not less than #bc percent and inserting not less than #be percent2 and 7#b7 by striking not less than #e percent each place it appears and inserting not less than #aj percent4 7b7 ,limitation on number of categories for which a business may qualify ,section #ae7;g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77 is amended by adding at the end the following3 7#c7 ,a ,federal agency may not include a business concern in more than #b specified categories for purposes of determining whether the ,federal agency has met the ,government-wide goals under this subsection for the award of contracts to business concerns in specified categories4 ,in this paragraph1 the term specified category means small business concerns1 small business concerns owned and controlled by service-disabled veterans1 qualified ,h,u,b,zone small business concerns1 small business concerns owned and controlled by socially and economically disadvantaged individuals1 and small business concerns owned and controlled by women4 4 #aje4 ,implementation of subcontracting plans ,section #h7;d7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;d77 is amended by adding at the end the following3 7#ac7 ,in the case of any contract containing a subcontracting plan included pursuant to paragraph 7#d7 or 7#e7-- 7,a7 ,the ,administrator shall collaborate with the ,federal agency awarding the contract to develop and include in the contract a clause providing that1 if the contractor meets the percentage goal for the utilization of small business concerns1 including those owned and controlled by socially and economically disadvantaged individuals1 as set forth in the subcontracting plan1 the ,federal agency may give additional consideration to contractor4 7,b7 ,the ,federal agency awarding the contract shall require the contractor to provide written justification to the agency whenever the contractor1 in performing the contract1 does not enter into a subcontract with1 or substitutes another subcontractor for1 a specific small business concern identified in the subcontracting plan4 7#ad7 ,the ,administration shall establish a telephone line or other electronic means of communication through which a small business concern identified in a subcontracting plan by an offeror or bidder may communicate to the ,administration any concerns regarding major deviations by prime contractors from the use of small business concerns as subcontractors under the prime contract as described in the subcontracting plan4 4 #ajf4 ,requirement to consider use of small business concerns owned and controlled by socially and economically disadvantaged individuals when considering past compliance with subcontracting plans ,section #h7;d7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;d77 is amended-- 7#a7 in paragraph 7#d77;,c71 in the second sentence1 by inserting 1 especially compliance with the goal set forth in such plans for the utilization of small business concerns owned and controlled by socially and economically disadvantaged individuals1 after other such subcontracting plans2 and 7#b7 in paragraph 7#e77;,b71 in the second sentence1 by inserting 1 especially compliance with the goal set forth in such plans for the utilization of small business concerns owned and controlled by socially and economically disadvantaged individuals1 after other such subcontracting plans4 ,,ii ,,minority ,,business ,,development ,,agency #bja4 ,definitions ,in this title3 7#a7 ,historically disadvantaged individual ,the term historically disadvantaged individual means any individual who is a member of a group that is designated as eligible to receive assistance under section #adjj4a of title #ae1 ,code of ,federal ,regulations1 as in effect on ,january #a1 #bjji4 7#b7 ,principal ,the term principal means any person that the ,director determines to exercise significant control over the regular operations of a business entity4 7#c7 ,program ,the term ,program means the ,minority ,business ,development ,program established under section #bjb4 #bjb4 ,emerging minority business development program ,the ,national ,director of the ,minority ,business ,development ,agency shall establish the ,minority ,business ,development ,program to assist qualified minority businesses4 ,the ,program shall provide to such businesses the following3 7#a7 ,technical assistance under section #bjd4 7#b7 ,loan guarantees under section #bjh4 7#c7 ,contract procurement assistance under section #bje4 #bjc4 ,qualified minority business 7a7 ,certification ,for purposes of the ,program1 the ,national ,director of the ,minority ,business ,development ,agency may certify as a qualified minority business any entity that satisfies each of the following3 7#a7 ,not less than #ea percent of the entity is directly and unconditionally owned or controlled by historically disadvantaged individuals4 7#b7 ,each officer or other individual who exercises control over the regular operations of the entity is a historically disadvantaged individual4 7#c7 ,the net worth of each principal of the entity is not greater than #b1jjj1jjj4 7,the equity of a disadvantaged owner in a primary personal residence shall not be considered in this calculation47 7#d7 ,the principal place of business of the entity is in the ,united ,states4 7#e7 ,each principal of the entity maintains good character in the determination of the ,national ,director4 7#f7 ,the entity engages in competitive and bona fide commercial business operations in not less than one sector of industry that has a ,north ,american ,industry ,classification ,system code4 7#g7 ,the entity submits reports to the ,national ,director at such time1 in such form1 and containing such information as the ,national ,director may require4 7#h7 ,such other requirements as the ,national ,director considers appropriate4 7b7 ,term of certification ,a certification under this section shall be for a term of #e years and may not be renewed4 #bjd4 ,technical assistance 7a7 ,in general ,in carrying out the ,program1 the ,national ,director of the ,minority ,business ,development ,agency may provide to qualified minority businesses technical assistance with regard to the following3 7#a7 ,writing business plans4 7#b7 ,marketing4 7#c7 ,management4 7#d7 ,securing sufficient financing for business operations4 7b7 ,contract authority ,the ,national ,director may enter into agreements with persons to provide technical assistance under this section4 #bje4 ,set-aside contracting opportunities 7a7 ,in general ,the ,national ,director of the ,minority ,business ,development ,agency may enter into agreements with the ,united ,states ,government and any department1 agency1 or officer thereof having procurement powers for purposes of providing for the fulfillment of procurement contracts and providing opportunities for qualified minority businesses with regard to such contracts4 7b7 ,qualifications on participation ,the ,national ,director shall by rule establish requirements for participation under this section by a qualified minority business in a contract4 7c7 ,annual limit on number of contracts per qualified minority business ,a qualified minority business may not participate under this section in contracts in an amount that exceeds #aj1jjj1jjj for goods and services each fiscal year4 7d7 ,limits on contract amounts 7#a7 ,goods and services ,except as provided in paragraph 7#b71 a contract for goods and services under this section may not exceed #f1jjj1jjj4 7#b7 ,manufacturing and construction ,a contract for manufacturing and construction services under this section may not exceed #aj1jjj1jjj4 #bjf4 ,termination from program ,the ,national ,director of the ,minority ,business ,development ,agency may terminate a qualified minority business from the ,program for any violation of a requirement of sections #bjc through #bjf by that qualified minority business1 including the following3 7#a7 ,conduct by a principal of the qualified minority business that indicates a lack of business integrity4 7#b7 ,willful failure to comply with applicable labor standards and obligations4 7#c7 ,consistent failure to tender adequate performance with regard to contracts under the ,program4 7#d7 ,failure to obtain and maintain relevant certifications4 7#e7 ,failure to pay outstanding obligations owed to the ,federal ,government4 #bjg4 ,authorization of appropriations 7a7 ,authorization of ,appropriations ,there are authorized to be appropriated #bjj1jjj1jjj to the ,national ,director to carry out this section4 ,such sums shall remain available until expended4 #bjh4 ,loan guarantees 7a7 ,in general ,subject to subsection 7b71 the ,national ,director of the ,minority ,business ,development ,agency may guarantee up to #ij percent of the amount of a loan made to a qualified minority business to be used for business purposes1 including the following3 7#a7 ,purchasing essential equipment4 7#b7 ,payroll expenses4 7#c7 ,purchasing facilities4 7#d7 ,renovating facilities4 7b7 ,terms and conditions 7#a7 ,in general ,the ,national ,director may make guarantees under this section for projects on such terms and conditions as the ,national ,director determines appropriate1 after consultation with the ,secretary of the ,treasury1 in accordance with this section4 7#b7 ,repayment ,no guarantee shall be made under this section unless the ,national ,director determines that there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower4 7#c7 ,defaults 7,a7 ,payment by national director 7i7 ,in general ,if a borrower defaults on the obligation 7as defined in regulations promulgated by the ,national ,director and specified in the guarantee contract71 the holder of the guarantee shall have the right to demand payment of the unpaid amount from the ,national ,director4 7ii7 ,payment required ,within such period as may be specified in the guarantee or related agreements1 the ,national ,director shall pay to the holder of the guarantee the unpaid interest on1 and unpaid principal of the obligation as to which the borrower has defaulted1 unless the ,national ,director finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied4 7iii7 ,forbearance ,nothing in this paragraph precludes any forbearance by the holder of the obligation for the benefit of the borrower which may be agreed upon by the parties to the obligation and approved by the ,director4 7,b7 ,subrogation 7i7 ,in general ,if the ,national ,director makes a payment under subparagraph 7,a71 the ,national ,director shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements including1 where appropriate1 the authority 7notwithstanding any other provision of law7 to-- 7,i7 complete1 maintain1 operate1 lease1 or otherwise dispose of any property acquired pursuant to such guarantee or related agreements2 or 7,,ii7 permit the borrower1 pursuant to an agreement with the ,national ,director1 to continue to pursue the purposes of the project if the ,national ,director determines this to be in the public interest4 7ii7 ,superiority of rights ,the rights of the ,national ,director1 with respect to any property acquired pursuant to a guarantee or related agreements1 shall be superior to the rights of any other person with respect to the property4 7iii7 ,terms and conditions ,a guarantee agreement shall include such detailed terms and conditions as the ,national ,director determines appropriate to-- 7,i7 protect the interests of the ,united ,states in the case of default2 and 7,,ii7 have available all the patents and technology necessary for any person selected1 including the ,national ,director1 to complete and operate the project4 7,c7 ,payment of principal and interest by national director ,with respect to any obligation guaranteed under this section1 the ,national ,director may enter into a contract to pay1 and pay1 holders of the obligation1 for and on behalf of the borrower1 from funds appropriated for that purpose1 the principal and interest payments which become due and payable on the unpaid balance of the obligation if the ,national ,director finds that-- 7i7 7,i7 the borrower is unable to meet the payments and is not in default2 7,,ii7 it is in the public interest to permit the borrower to continue to pursue the purposes of the project2 and 7,,iii7 the probable net benefit to the ,federal ,government in paying the principal and interest will be greater than that which would result in the event of a default2 7ii7 the amount of the payment that the ,national ,director is authorized to pay shall be no greater than the amount of principal and interest that the borrower is obligated to pay under the agreement being guaranteed2 and 7iii7 the borrower agrees to reimburse the ,national ,director for the payment 7including interest7 on terms and conditions that are satisfactory to the ,national ,director4 7,d7 ,action by attorney general 7i7 ,notification ,if the borrower defaults on an obligation1 the ,national ,director shall notify the ,attorney ,general of the default4 7ii7 ,recovery ,on notification1 the ,attorney ,general shall take such action as is appropriate to recover the unpaid principal and interest due from-- 7,i7 such assets of the defaulting borrower as are associated with the obligation2 or 7,,ii7 any other security pledged to secure the obligation4 7#d7 ,fees 7,a7 ,in general ,the ,national ,director shall charge and collect fees for guarantees in amounts the ,national ,director determines are sufficient to cover applicable administrative expenses1 not to exceed #a percent of the amount guaranteed4 7,b7 ,availability ,fees collected under this paragraph shall-- 7i7 be deposited by the ,national ,director into the ,treasury2 and 7ii7 remain available until expended1 subject to such other conditions as are contained in annual appropriations ,acts4 7c7 ,credit requirements ,to receive a loan guaranteed under this section a qualified minority business shall-- 7#a7 be in good standing with regard to the credit of that business in the determination of the ,national ,director2 7#b7 have received technical assistance under section #bjd2 and 7#c7 submit reports1 at such time1 in such form1 and containing such information as the ,national ,director may require regarding the credit of the business4 7d7 ,limits on guarantee amounts 7#a7 ,maximum amount of guarantee ,the ,national ,director may not guarantee more than #dej1jjj of any loan under this section4 7#b7 ,maximum gross loan amount ,a loan guaranteed under this section may not be for a gross loan amount in excess of #ejj1jjj4 7e7 ,authorization of appropriations ,there are authorized to be appropriated to the ,national ,director not more than #ejj1jjj1jjj to carry out this section during fiscal years #bjad through #bjai4 #bji4 ,reports 7a7 ,report of the director ,not later than ,october #a1 #bjab1 and annually thereafter1 the ,national ,director of the ,minority ,business ,development ,agency shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report describing the activities of the ,national ,director during the preceding year with respect to the ,program4 7b7 ,report of the secretary of commerce ,not later than ,october #a1 #bjab1 and annually thereafter1 the ,secretary of ,commerce shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report describing the activities the ,secretary engaged in during the preceding year to build wealth among historically disadvantaged individuals4 #baj4 ,minority business development agency database ,not later than #ij days after the date of the enactment of this ,act1 the ,national ,director of the ,minority ,business ,development ,agency shall establish a database to assist prime contractors in identifying historically disadvantaged firms for subcontracting4