Sec. 101. Plain language rewrite of requirements for small business procurements
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Section 15(a) of the Small Business Act ( 15 U.S.C. 644(a) ) is amended to read as follows: For purposes of this Act, small business concerns shall receive any award or contract if such award or contract is, in the determination of the Administrator and the contracting agency, in the interest of— maintaining or mobilizing the full productive capacity of the United States; war or national defense programs; or assuring that a fair proportion of the total purchase and contracts for goods and services of the Government in each industry category (as described under paragraph (2)) are awarded to small business concerns.
In this subsection, the term industry category means a discrete group of similar goods and services, as determined by the Administrator in accordance with the North American Industry Classification System codes used to establish small business size standards under section 3(a), except that the Administrator shall limit an industry category to a greater extent than provided under the North American Industry Classification codes if the Administrator receives evidence indicating that further segmentation of the industry category is warranted— due to special capital equipment needs; due to special labor requirements; due to special geographic requirements, except as provided in subparagraph (B); or to recognize a new industry.
The Administrator may not further segment an industry category based on geographic requirements unless— the Government typically designates the geographic area where work for contracts for goods or services is to be performed; Government purchases comprise the major portion of the entire domestic market for such goods or services; and it is unreasonable to expect competition from business concerns located outside of the general geographic area due to the fixed location of facilities, high mobilization costs, or similar economic factors.
Determinations made pursuant to paragraph
(1)may be made for individual awards or contracts, any part of an award or contract, or for classes of awards or contracts. The requirements of the paragraph shall apply to a proposed procurement that includes in its statement of work goods or services currently being supplied or performed by a small business concern and, as determined by the Administrator— is in a quantity or of an estimated dollar value which makes the participation of a small business concern as a prime contractor unlikely; in the case of a proposed procurement for construction, if such proposed procurement seeks to bundle or consolidate discrete construction projects; or is a solicitation that involves an unnecessary or unjustified bundling of contract requirements. With respect to proposed procurements described in subparagraph (A), at least 30 days before issuing a solicitation and concurrent with other processing steps required before issuing the solicitation, the contracting agency shall provide a copy of the proposed procurement to the procurement center representative of the contracting agency (as described in subsection (l)) along with a statement explaining— why the proposed procurement cannot be divided into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement; why delivery schedules cannot be established on a realistic basis that will encourage the participation of small business concerns in a manner consistent with the actual requirements of the Government; why the proposed procurement cannot be offered to increase the likelihood of the participation of small business concerns; in the case of a proposed procurement for construction, why the proposed procurement cannot be offered as separate discrete projects; or why the agency has determined that the bundling of contract requirements is necessary and justified. If the procurement center representative believes that the proposed procurement will make the participation of small business concerns as prime contractors unlikely, the procurement center representative, within 15 days after receiving the statement described in subparagraph (B), shall recommend to the contracting agency alternative procurement methods for increasing prime contracting opportunities for small business concerns. If the procurement center representative and the contracting agency fail to agree on an alternative procurement method, the Administrator shall submit the matter to the head of the appropriate department or agency for a determination. With respect to a contract for the sale of Government property, small business concerns shall receive any such contract if, in the determination of the Administrator and the disposal agency, the award of such contract is in the interest of assuring that a fair proportion of the total sales of Government property be made to small business concerns. Nothing in this subsection shall be construed to change any preferences or priorities established by law with respect to the sale of electrical power or other property by the Federal Government. A contract may not be awarded under this subsection if the cost of the contract to the awarding agency exceeds a fair market price. .
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Sec. 101
Plain language rewrite of requirements for small business procurements
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