Sec. 818. Comprehensive small business contracting plans
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Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section: The Secretary of Defense may negotiate and administer comprehensive subcontracting plans for the purpose of reducing administrative burdens on contractors while enhancing opportunities provided under Department of Defense contracts for small business concerns and covered small business concerns. The Secretary of a military department or head of a Defense Agency shall negotiate, monitor, and enforce compliance with a comprehensive subcontracting plan with a Department of Defense contractor described in paragraph (4).
The comprehensive subcontracting plan of a contractor— shall apply to the entire business organization of the contractor or to one or more of the contractor's divisions or operating elements, as specified in the subcontracting plan; and shall cover each Department of Defense contract that is entered into by the contractor and each subcontract that is entered into by the contractor as the subcontractor under a Department of Defense contract. Each comprehensive subcontracting plan of a contractor shall require that the contractor report to the Secretary of Defense on a semi-annual basis the following information:
The amount of first-tier subcontract dollars awarded during the six-month period covered by the report to covered small business concerns, with the information set forth separately— by North American Industrial Classification System code; by major defense acquisition program, as defined in section 2430(a) of this title, that meets the criteria of Acquisition Category 1; by contract, if the contract is for the maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization, or modification of supplies, systems, or equipment and the total value of the contract, including options, exceeds $250,000,000; and by military department.
The total number of subcontracts active under the test program during the six-month period covered by the report that would have otherwise required a subcontracting plan under paragraph
(4)or
(5)of section 8(d) of the Small Business Act ( 15 U.S.C. 637(d) ). Costs incurred in negotiating, complying with, and reporting on comprehensive subcontracting plans. Costs avoided by adoption of a comprehensive subcontracting plan. A Department of Defense contractor referred to in paragraph
(1)is, with respect to a comprehensive subcontracting plan negotiated in any fiscal year, a business concern that, during the immediately preceding fiscal year, furnished the Department of Defense with supplies or services (including professional services, research and development services, and construction services) pursuant to at least three Department of Defense contracts having an aggregate value of at least $ 100,000,000. A Department of Defense contractor is not required to negotiate or submit a subcontracting plan under paragraph
(4)or
(5)of section 8(d) of the Small Business Act ( 15 U.S.C. 637(d) ) with respect to a Department of Defense contract if— the contractor has negotiated a comprehensive subcontracting plan under the test program that includes the matters specified in section 8(d)(6) of the Small Business Act ( 15 U.S.C. 637(d)(6) ); such matters have been determined acceptable by the Secretary of the military department or head of a Defense Agency negotiating such comprehensive subcontracting plan; and the comprehensive subcontracting plan applies to the contract. A contractor that has negotiated a comprehensive subcontracting plan under the test program shall be subject to section 8(d)(4)(F) of the Small Business Act ( 15 U.S.C. 637(d)(4)(F) ) regarding the assessment of liquidated damages for failure to make a good faith effort to comply with its comprehensive subcontracting plan and the goals specified in that plan. In addition, any such failure shall be a factor considered as part of the evaluation of past performance of an offeror. Effective in fiscal year 2017 and each fiscal year thereafter, the Secretary of Defense shall report to Congress on any negotiated comprehensive subcontracting plan that the Secretary determines did not meet the subcontracting goals negotiated in the plan for the prior fiscal year. In this section, the term covered small business concern includes each of the following: A small business concern, as that term is defined under section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ). A small business concern owned and controlled by veterans, as that term is defined in section 3(q)(3) of such Act ( 15 U.S.C. 632(q)(3) ). A small business concern owned and controlled by service-disabled veterans, as that term is defined in section 3(q)(2) of such Act ( 15 U.S.C. 632(q)(2) ). A qualified HUBZone small business concern, as that term is defined under section 3(p)(5) of such Act ( 15 U.S.C. 632(p)(5) ). A small business concern owned and controlled by socially and economically disadvantaged individuals, as that term is defined in section 8(d)(3)(C) of such Act ( 15 U.S.C. 637(d)(3)(C) ). A small business concern owned and controlled by women, as that term is defined under section 3(n) of such Act ( 15 U.S.C. 632(n) ). . The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 2338. Comprehensive small business contracting plans. . Section 834 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 ( 15 U.S.C. 637 note) is hereby repealed.
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