#aafth ,,congress  #b;d ,session  ,h4   
,r4 #efa  ,,an ,,act  ,to amend title   
#ch1 ,united ,states ,code1 to improve  
the oversight of contracts awarded by   
the ,secretary of ,veterans ,affairs to 
small business concerns owned and       
controlled by veterans1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,protecting         
,business ,opportunities for ,veterans  
,act of #bjai4  #b4 ,limitations on     
subcontracts under contracts with small 
business concerns owned and controlled  
by veterans  7a7 ,in general ,section   
#habg of title #ch1 ,united ,states     
,code1 is amended--  7#a7 by            
redesignating subsection 7k7 as         
subsection 7l72 and  7#b7 by inserting  
after subsection 7j7 the following new  
subsection 7k73  7k7 ,limitations on    
subcontracting  7#a7  7,a7 ,the         
requirements applicable to a covered    
small business concern under section #df
 of the ,small ,business ,act 7#ae      
,u4,s4,c4 #fegs7 shall apply with       

respect to a small business concern     
owned and controlled by veterans that is
 awarded a contract under this section4 
7,b7 ,for purposes of applying the      
requirements of section #df of the      
,small ,business ,act 7#ae ,u4,s4,c4    
#fegs7 pursuant to subparagraph 7,a71   
the term similarly situated entity used 
in such section #df includes a          
subcontractor for a small business      
concern owned and controlled by veterans
 described in such subparagraph 7,a74   
7#b7 ,the ,secretary may award a        
contract under this section only after  
the ,secretary obtains from the offeror 
a certification that the offeror will   
comply with the requirements described  
in paragraph 7#a77;,a7 if awarded the   
contract4 ,such certification shall--   
7,a7 specify the exact performance      
requirements applicable under such      
paragraph2 and  7,b7 explicitly         
acknowledge that the certification is   
subject to section #ajja of title #ah4  
7#c7 7,a7 ,the ,director of ,small and  

,disadvantaged ,business ,utilization   
for the ,department1 established        
pursuant to section #ae7k7 of the ,small
 ,business ,act 7#ae ,u4,s4,c4 #fdd7k771
 and the ,chief ,acquisition ,officer of
 the ,department1 established pursuant  
to section #agjb of title #da1 shall    
jointly implement a process using the   
systems described in section #af7;g77#b7
 of the ,small ,business ,act 7#ae      
,u4,s4,c4 #fde7;g77#b771 and any other  
relevant systems available1 to monitor  
compliance with this subsection4  7,b7  
,the ,director of ,small and            
,disadvantaged ,business ,utilization   
and the ,chief ,acquisition ,officer    
shall jointly refer any violations or   
suspected violations of this subsection 
to the ,inspector ,general of the       
,department4  7,c7 ,if the ,secretary   
determines1 in consultation with the    
,inspector ,general of the ,department1 
that a small business concern that is   
awarded a contract under this section   
did not act in good faith with respect  

to the requirements described in        
paragraph 7#a77;,a71 the small business 
concern shall be subject to any or all  
of the following consequences--  7i7    
referral to the ,debarment and          
,suspension ,committee of the           
,department2  7ii7 a fine under section 
#af7;g77#a7 of the ,small ,business ,act
 7#ae ,u4,s4,c4 #fde7;g77#a772 and      
7iii7 prosecution for violating section 
#ajja of title #ah4  7,d7 ,not later    
than ,november #cj for each of fiscal   
years #bjba through #bjbe1 the          
,inspector ,general shall submit to the 
,committees on ,veterans' ,affairs of   
the ,senate and ,house of               
,representatives a report for the fiscal
 year preceding the fiscal year during  
which the report is submitted that      
includes1 for the fiscal year covered by
 the report--  7i7 the number of        
referred violations and suspected       
violations received under subparagraph  
7,b72 and  7ii7 the disposition of such 
referred violations1 including the      

number of small business concerns       
suspended or debarred from ,federal     
contracting or referred to the ,attorney
 ,general for prosecution4  4  7b7      
,application ,subsection 7k7 of section 
#habg of title #ch1 ,united ,states     
,code1 as added by subsection 7a71 shall
 apply with respect to a contract       
entered into after the date of the      
enactment of this ,act4  ,passed the    
,house of ,representatives ,february    
#be1 #bjbj4;,clerk4