,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bbg  ,,in ,,the ,,house ,,of   
,,representatives  ,january #c1         
#bjai,ms4 ,velzquez 7for herself and    
,mr4 ,kelly of ,mississippi7 introduced 
the following bill2 which was referred  
to the ,committee on ,small ,business   
,a ,,bill  ,to amend the ,small         
,business ,act to specify what credit is
 given for certain subcontractors and to
 provide a dispute process for          
non-payment to subcontractors1 and for  
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,incentivizing 
,fairness in ,subcontracting ,act4  #b4 
,small business lower-tier              
subcontracting ,section #h7;d7 of the   
,small ,business ,act 7#ae ,u4,s4,c4    
#fcg7;d77 is amended--  7#a7 by amending
 paragraph 7#af7 to read as follows3    
7#af7 ,credit for certain small business
 concern subcontractors  7,a7 ,in       
general ,for purposes of determining    
whether or not a prime contractor has   
attained the percentage goals specified 

in paragraph 7#f7--  7i7 if the         
subcontracting goals pertain only to a  
single contract with the ,federal       
agency1 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 7#f77;,d7
 in an amount equal to the total dollar 
value of any subcontracts awarded to    
such small business concerns2 and  7ii7 
if the subcontracting goals pertain to  
more than one contract with one or more 
,federal agencies1 or to one contract   
with more than one ,federal agency1 the 
prime contractor may only receive credit
 for first tier subcontractors that are 
small business concerns4  7,b7          
,collection and review of data on       
subcontracting plans ,the head of each  
contracting agency shall ensure that--  
7i7 the agency collects and reports data
 on the extent to which contractors of  
the agency meet the goals and objectives

 set forth in subcontracting plans      
submitted pursuant to this subsection2  
and  7ii7 the agency periodically       
reviews data collected and reported     
pursuant to subparagraph 7,a7 for the   
purpose of ensuring that such           
contractors comply in good faith with   
the requirements of this subsection and 
subcontracting plans submitted by the   
contractors pursuant to this subsection4
  7,c7 ,rule of construction ,nothing in
 this paragraph shall be construed to   
allow a ,federal agency to establish a  
goaling requirement for lower-tier      
subcontractors of a prime contractor    
that is eligible to receive lower-tier  
subcontracting credit under this        
paragraph  2 and  7#b7 by adding at the 
end the following3  7#ah7 ,dispute      
process for non-payment to              
subcontractors  7,a7 ,notice to agency  
,with respect to a contract with a      
,federal agency1 a subcontractor of a   
prime contractor on such contract may1  
if the subcontractor has not received   

payment for performance on such contract
 within #cj days of the completion of   
such performance1 notify the ,office of 
,small and ,disadvantaged ,business     
,utilization 7,,osdbu7 of the ,federal  
agency and the prime contractor of such 
lack of payment1 if such notice is      
provided to the agency within the       
#ae-;day period following the end of    
such #cj days4  7,b7 ,agency            
determination  7i7 ,in general ,upon    
receipt of a notice described under     
subparagraph 7,a71 the ,,osdbu shall    
verify whether such lack of payment has 
occurred and determine whether such lack
 of payment is due to an undue          
restriction placed on the prime         
contractor by an action of the ,federal 
agency4  7ii7 ,response during          
determination ,during the period in     
which the ,,osdbu is making the         
determination under clause 7i71 the     
prime contractor may respond to both the
 subcontractor and the ,,osdbu with     
relevant verifying documentation to     

either prove payment or allowable status
 of nonpayment4  7,c7 ,cure period ,if  
the ,,osdbu verifies the lack of payment
 under subparagraph 7,b7 and determines 
that such lack of payment is not due to 
an action of the ,federal agency1 the   
,,osdbu shall notify the prime          
contractor and provide the prime        
contractor with a #ae-;day period in    
which the prime contractor may make the 
payment owed to the subcontractor4  7,d7
 ,result of nonpayment ,if1 after       
notifying the prime contractor under    
subparagraph 7,c71 the ,,osdbu          
determines that the prime contractor has
 not fully paid the amount owed within  
the #ae-;day cure period described under
 subparagraph 7,c71 the ,,osdbu shall   
ensure that such failure to pay is      
reflected in the ,contractor            
,performance ,assessment ,reporting     
system 7or any successor system74  4    
#c4 ,maintenance of records with respect
 to credit under a subcontracting plan  
,section #h7;d77#f7 of the ,small       

,business ,act 7#ae ,u4,s4,c4           
#fcg7;d77#f77 is amended-- 7#a7 by      
redesignating subparagraphs 7,g7 and    
7,h7 as subparagraphs 7,h7 and 7,i71    
respectively 7and conforming the margins
 accordingly72 and  7#b7 by inserting   
after subparagraph 7,f7 the following3  
7,g7 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 7#af77;,a77i72  4