References in Text

The Federal Funding Accountability and Transparency Act of 2006, referred to in subsec. (h)(2)(F), is Pub. L. 109–282, Sept. 26, 2006, 120 Stat. 1186, which is set out as a note under section 6101 of Title 31, Money and Finance.

Section 712 of the Business Opportunity Development Reform Act of 1988 (Public Law 100–656; 15 U.S.C. 644 note), referred to in subsec. (j)(3), was repealed by Pub. L. 111–240, title I, §1335(a), Sept. 27, 2010, 124 Stat. 2543.

Section 7102 of the Federal Acquisition Streamlining Act of 1994, referred to in subsec. (j)(3), is section 7102 of Pub. L. 103–355, which is set out below.

Section 868(b) of the National Defense Authorization Act for Fiscal Year 2016, referred to in subsec. (x)(2), is section 868(b) of Pub. L. 114–92, which is set out as a note under this section.

Codification

In subsec. (c)(1)(A), "section 8502 of title 41" substituted for "the first section of the Act entitled 'An Act to create a Committee on Purchases of Blind-made Products, and for other purposes', approved June 25, 1938 (41 U.S.C. 46)" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

In subsec. (c)(2)(B), "section 8503 of title 41" substituted for "section 2 of the Act entitled 'An Act to create a Committee on Purchases of Blind-made Products, and for other purposes', approved June 25, 1938 (41 U.S.C. 47)" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

In subsec. (q)(2)(A), "section 1302(a) of title 41" substituted for "section 25(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 4219(a) [421(a)])" and "section 1303(a) of title 41" substituted for "section 25 of such Act" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

In subsec. (r)(2), "section 4106(c) of title 41" substituted for "section 303J(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b))" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

Pub. L. 99–591 is a corrected version of Pub. L. 99–500.

Prior Provisions

Prior similar provisions were contained in section 214 of act July 30, 1953, ch. 282, title II, 67 Stat. 238, as amended by act Aug. 9, 1955, ch. 628, §9, 69 Stat. 551, which was previously classified to section 643 of this title. The provisions of section 215 of act July 30, 1953, formerly classified to this section, were transferred to section 2[10] of Pub. L. 85–536, and are classified to section 639 of this title. See Codification note set out under section 631 of this title.

Amendments

2019—Subsec. (h)(4). Pub. L. 116–92, §871, added par. (4).

Subsec. (k)(21). Pub. L. 116–92, §880(e), added par. (21).

Subsec. (l)(2)(J), (K). Pub. L. 116–92, §880(d), added subpar. (J) and redesignated former subpar. (J) as (K).

Subsec. (x). Pub. L. 116–92, §875(1), inserted "and covered territory businesses" after "Puerto Rico businesses" in heading.

Subsec. (x)(1). Pub. L. 116–92, §875(2), inserted "or a covered territory business, or a prime contractor awards a subcontract (at any tier) to a subcontractor that is a Puerto Rico business or a covered territory business," after "Puerto Rico business" and "or subcontract" after "the contract" and substituted "subsection (g)(1)(A)" for "subsection (g)(1)(A)(i)".

Subsec. (x)(3). Pub. L. 116–92, §875(3), added par. (3).

2018—Subsec. (j)(3). Pub. L. 115–232, §812(a)(2)(C)(viii)(I), struck out "section 2323 of title 10," after "section 637 of this title,".

Subsec. (k)(10). Pub. L. 115–232, §812(a)(2)(C)(viii)(II), substituted "subsection (a) or" for "subsection (a)," and struck out "or section 2323 of title 10, which shall be made with due regard to the requirements of subsection (m)," after "or 657f of this title,".

Subsec. (m). Pub. L. 115–232, §812(a)(2)(C)(viii)(III), amended subsec. (m) generally. Prior to amendment, subsec. (m) related to policies and procedures for each agency subject to former section 2323 of title 10 to follow when implementing requirements under that section.

Subsec. (w). Pub. L. 115–232, §855, added subsec. (w).

Subsec. (x). Pub. L. 115–232, §861(b), added subsec. (x).

2017—Subsec. (a)(1)(C). Pub. L. 115–91, §1702(c), substituted "total purchases and contracts for goods and services" for "total purchase and contracts for goods and services".

Subsec. (h)(2)(E)(i)(V), (VI). Pub. L. 115–91, §1703(a)(1), added subcls. (V) and (VI).

Subsec. (h)(2)(E)(ii)(VI), (VII). Pub. L. 115–91, §1703(a)(2), added subcls. (VI) and (VII).

Subsec. (h)(2)(E)(iii)(VII), (VIII). Pub. L. 115–91, §1703(a)(3), added subcls. (VII) and (VIII).

Subsec. (h)(2)(E)(iv)(VII), (VIII). Pub. L. 115–91, §1703(a)(4), added subcls. (VII) and (VIII).

Subsec. (h)(2)(E)(v)(VI). Pub. L. 115–91, §1703(a)(5), added subcl. (VI).

Subsec. (h)(2)(E)(vi)(VI). Pub. L. 115–91, §1703(a)(6), added subcl. (VI).

Subsec. (h)(2)(E)(vii)(VI). Pub. L. 115–91, §1703(a)(7), added subcl. (VI).

Subsec. (h)(2)(E)(viii)(IX), (X). Pub. L. 115–91, §1703(a)(8), added subcls. (IX) and (X).

Subsec. (j)(1). Pub. L. 115–91, §1702(a), substituted "greater than the micro-purchase threshold, but not greater than the simplified acquisition threshold" for "greater than $2,500 but not greater than $100,000".

2016—Subsec. (a). Pub. L. 114–328, §1801, amended subsec. (a) generally. Prior to amendment, subsec. (a) related to determination of awards or contracts, including notice requirement for certain large, consolidated, or bundled proposed procurements.

Subsec. (g)(2)(B). Pub. L. 114–328, §1811(b), inserted at end "Contracts excluded from review by procurement center representatives pursuant to subsection (l)(9)(B) shall not be considered when establishing these goals."

Subsec. (h)(3). Pub. L. 114–328, §1802, amended par. (3) generally. Prior to amendment, par. (3) related to access to data collected through the Federal Procurement Data System and provision of collected data upon request.

Subsec. (k). Pub. L. 114–328, §1812(1), (2), substituted "section 637, 644, 657a, 657f, or 657q" for "section 637, 644 or 657q" in introductory provisions and "sections 637, 644, 657a, 657f, and 657q" for "this section and section 637" wherever appearing.

Subsec. (k)(10). Pub. L. 114–328, §1812(3), substituted "section 637, 644, 657a, or 657f" for "section 637(a)".

Subsec. (k)(16)(D). Pub. L. 114–328, §1812(6), added subpar. (D).

Subsec. (k)(18). Pub. L. 114–328, §1812(4), (5), added par. (18).

Subsec. (k)(19). Pub. L. 114–328, §1813(a), added par. (19).

Subsec. (k)(20). Pub. L. 114–328, §1821(b), added par. (20).

Subsec. (l)(2)(I), (J). Pub. L. 114–328, §1813(d), added subpar. (I) and redesignated former subpar. (I) as (J).

Subsec. (l)(9). Pub. L. 114–328, §1811(a), added par. (9).

Subsec. (t). Pub. L. 114–187 added subsec. (t).

Subsec. (u). Pub. L. 114–328, §1813(c), added subsec. (u).

Subsec. (v). Pub. L. 114–328, §1814(a), added subsec. (v).

2015—Subsec. (e)(3). Pub. L. 114–92, §863(a), amended par. (3) generally. Prior to amendment, par. (3) set forth required elements for a proposed procurement strategy for a procurement involving a substantial bundling of contract requirements.

Subsec. (e)(4). Pub. L. 114–92, §867(a), amended par. (4) generally. Prior to amendment, text read as follows: "In the case of a solicitation of offers for a bundled contract that is issued by the head of an agency, a small-business concern may submit an offer that provides for use of a particular team of subcontractors for the performance of the contract. The head of the agency shall evaluate the offer in the same manner as other offers, with due consideration to the capabilities of all of the proposed subcontractors. If a small business concern teams under this paragraph, it shall not affect its status as a small business concern for any other purpose."

Subsec. (f). Pub. L. 114–88 added subsec. (f).

Subsec. (g)(1)(A)(i). Pub. L. 114–92, §868(a), inserted at end "In meeting this goal, the Government shall ensure the participation of small business concerns from a wide variety of industries and from a broad spectrum of small business concerns within each industry."

Subsec. (k)(17). Pub. L. 114–92, §870, added par. (17).

Subsec. (l)(5)(A)(iii). Pub. L. 114–92, §865(c)(1), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: "have a Level III Federal Acquisition Certification in Contracting (or any successor certification) or the equivalent Department of Defense certification, except that any person serving in such a position on January 2, 2013, may continue to serve in that position for a period of 5 years without the required certification."

Subsec. (l)(5)(C). Pub. L. 114–92, §865(c)(2), added subpar. (C).

Subsec. (q)(1). Pub. L. 114–92, §867(b), inserted "and joint venture" before "requirements" in par. heading, designated existing provisions as subpar. (A), inserted subpar. heading, and added subpars. (B) and (C).

Subsec. (s)(4) to (6). Pub. L. 114–92, §862(a), added pars. (4) and (5) and redesignated former par. (4) as (6).

2014—Subsec. (g)(3). Pub. L. 113–76 added par. (3).

Subsec. (h)(2)(E)(viii)(V) to (VIII). Pub. L. 113–291, §825(b), added subcls. (V) to (VII) and redesignated former subcl. (V) as (VIII).

Subsec. (s). Pub. L. 113–291, §822(a), added subsec. (s).

2013—Subsec. (e)(1). Pub. L. 112–239, §1623, substituted "a Federal department or agency" for "the various agencies" and ", and each such Federal department or agency shall—" and subpars. (A) and (B) for period at end.

Subsec. (g)(1). Pub. L. 112–239, §1631(a), amended par. (1) generally. Prior to amendment, par. (1) related to annual Government-wide goals for participation of small business concerns in procurement contracts.

Subsec. (g)(2)(A). Pub. L. 112–239, §1631(b)(1), inserted at end "Such goals shall separately address prime contract awards and subcontract awards for each category of small business covered."

Subsec. (g)(2)(D). Pub. L. 112–239, §1631(b)(2), substituted "After establishing goals under this paragraph for a fiscal year, the head of each Federal agency shall develop a plan for achieving such goals at both the prime contract and the subcontract level, which shall apportion responsibilities among the agency's acquisition executives and officials. In establishing goals under this paragraph, the head of each Federal agency shall make a consistent effort to annually expand participation by small business concerns from each industry category in procurement contracts and subcontracts of such agency, including participation by small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women." for "For the purpose of establishing goals under this subsection, the head of each Federal agency shall make consistent efforts to annually expand participation by small business concerns from each industry category in procurement contracts of the agency, including participation by small business concerns owned and controlled by service-disabled veterans, by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals, and by small business concerns owned and controlled by women."

Subsec. (g)(2)(E), (F). Pub. L. 112–239, §1631(b)(3), added subpars. (E) and (F) and struck out former subpars. (E) and (F) which read as follows:

"(E) The head of each Federal agency, in attempting to attain the participation described in subparagraph (D), shall consider—

"(i) contracts awarded as the result of unrestricted competition; and

"(ii) contracts awarded after competition restricted to eligible small business concerns under this section and under the program established under section 637(a) of this title.

"(F)(i) Each procurement employee or program manager described in clause (ii) shall communicate to the subordinates of the procurement employee or program manager the importance of achieving small business goals.

"(ii) A procurement employee or program manager described in this clause is a senior procurement executive, senior program manager, or Director of Small and Disadvantaged Business Utilization of a Federal agency having contracting authority."

Subsec. (h). Pub. L. 112–239, §1632, amended subsec. (h) generally. Prior to amendment, subsec. (h) related to annual Federal agency reports to Small Business Administration and inclusion of Administration information in President's annual state of small business report to Congress.

Subsec. (h)(1)(D). Pub. L. 113–66 added subpar. (D).

Subsec. (k). Pub. L. 112–239, §1691(d), substituted ", with experience serving in any combination of the following roles: program manager, deputy program manager, or assistant program manager for Federal acquisition program; chief engineer, systems engineer, assistant engineer, or product support manager for Federal acquisition program; Federal contracting officer; small business technical advisor; contracts administrator for Federal Government contracts; attorney specializing in Federal procurement law; small business liaison officer; officer or employee who managed Federal Government contracts for a small business; or individual whose primary responsibilities were for the functions and duties of section 637, 644 or 657q of this title. Such officer or employee" for "who shall" in introductory provisions.

Subsec. (k)(1). Pub. L. 112–239, §1691(e)(1), substituted "shall be known" for "be known" and "such agency;" for "such agency,".

Subsec. (k)(2). Pub. L. 112–239, §1691(e)(2), substituted "shall be appointed by" for "be appointed by".

Pub. L. 112–239, §1691(a), substituted "such agency to a position that is a Senior Executive Service position (as such term is defined under section 3132(a) of title 5), except that, for any agency in which the positions of Chief Acquisition Officer and senior procurement executive (as such terms are defined under section 657q(a) of this title) are not Senior Executive Service positions, the Director of Small and Disadvantaged Business Utilization may be appointed to a position compensated at not less than the minimum rate of basic pay payable for grade GS–15 of the General Schedule under section 5332 of such title (including comparability payments under section 5304 of such title);" for "such agency,".

Subsec. (k)(3). Pub. L. 112–239, §1691(e)(3), substituted "Director" for "director" and "Secretary's designee;" for "Secretary's designee,".

Pub. L. 112–239, §1691(b), substituted "shall be responsible only to (including with respect to performance appraisals), and report directly and exclusively to, the head" for "be responsible only to, and report directly to, the head" and "be responsible only to (including with respect to performance appraisals), and report directly and exclusively to, such Secretary" for "be responsible only to, and report directly to, such Secretary".

Subsec. (k)(4). Pub. L. 112–239, §1691(e)(4), substituted "shall be responsible" for "be responsible" and "such agency;" for "such agency,".

Subsec. (k)(5). Pub. L. 112–239, §1691(e)(5), substituted "shall identify proposed" for "identify proposed".

Subsec. (k)(6). Pub. L. 112–239, §1691(e)(6), substituted "shall assist small" for "assist small".

Subsec. (k)(7). Pub. L. 112–239, §1691(e)(7), substituted "shall have supervisory" for "have supervisory" and "this title;" for "this title,".

Subsec. (k)(8). Pub. L. 112–239, §1691(e)(8)(A), substituted "shall assign a" for "assign a" in introductory provisions.

Subsec. (k)(8)(A). Pub. L. 112–239, §1691(e)(8)(B), substituted "the activity; and" for "the activity, and".

Subsec. (k)(9). Pub. L. 112–239, §1691(e)(9), substituted "shall cooperate, and" for "cooperate, and" and "subsection;" for "subsection, and".

Subsec. (k)(10). Pub. L. 112–239, §1691(e)(10), substituted "shall make recommendations" for "make recommendations", "subsection (a), section 637(a) of this title, or section 2323 of title 10, which shall" for "subsection (a) of this section, or section 637(a) of this title or section 2323 of title 10. Such recommendations shall", and "contract file;" for "contract file."

Subsec. (k)(11) to (16). Pub. L. 112–239, §1691(c), added pars. (11) to (16).

Subsec. (l). Pub. L. 112–239, §1621(a), inserted heading.

Subsec. (l)(1). Pub. L. 112–239, §1621(b), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "The Administration shall assign to each major procurement center a breakout procurement center representative with such assistance as may be appropriate. The breakout procurement center representative shall carry out the activities described in paragraph (2), and shall be an advocate for the breakout of items for procurement through full and open competition, whenever appropriate, while maintaining the integrity of the system in which such items are used, and an advocate for the use of full and open competition, whenever appropriate, for the procurement of supplies and services by such center. Any breakout procurement center representative assigned under this subsection shall be in addition to the representative referred to in subsection (k)(6) of this section."

Subsec. (l)(2). Pub. L. 112–239, §1621(c)(1), inserted heading and substituted "A" for "In addition to carrying out the responsibilities assigned by the Administration, a breakout" in introductory provisions.

Subsec. (l)(2)(B). Pub. L. 112–239, §1621(c)(2), substituted "review, at any time, barriers to small business participation in Federal contracting" for "review, at any time, restrictions on competition", "goods and services" for "items" and "barriers" for "limitations".

Subsec. (l)(2)(C). Pub. L. 112–239, §1621(c)(3), substituted "review barriers to small business participation in Federal contracting" for "review restrictions on competition".

Subsec. (l)(2)(D). Pub. L. 112–239, §1621(c)(4), added subpar. (D) and struck out former subpar. (D) which read as follows: "obtain from any governmental source, and make available to personnel of the appropriate activity, technical data necessary for the preparation of a competitive solicitation package for any item of supply or service previously procured noncompetitively due to the unavailability of such technical data;".

Subsec. (l)(2)(E). Pub. L. 112–239, §1621(c)(5), added subpar. (E) and struck out former subpar. (E) which read as follows: "have access to procurement records and other data of the procurement center commensurate with the level of such representative's approved security clearance classification;".

Subsec. (l)(2)(F) to (I). Pub. L. 112–239, §1621(c)(6), added subpars. (F) to (I) and struck out former subpars. (F) and (G) which read as follows:

"(F) receive unsolicited engineering proposals and, when appropriate (i) conduct a value analysis of such proposal to determine whether such proposal, if adopted, will result in lower costs to the United States without substantially impeding legitimate acquisition objectives and forward to personnel of the appropriate activity recommendations with respect to such proposal, or (ii) forward such proposals without analysis to personnel of the activity responsible for reviewing such proposals and who shall furnish the breakout procurement center representative with information regarding the disposition of any such proposal; and

"(G) review the systems that account for the acquisition and management of technical data within the procurement center to assure that such systems provide the maximum availability and access to data needed for the preparation of offers to sell to the United States those supplies to which such data pertain which potential offerors are entitled to receive."

Subsec. (l)(3). Pub. L. 112–239, §1621(d), inserted heading and substituted "A procurement center representative" for "A breakout procurement center representative".

Subsec. (l)(4). Pub. L. 112–239, §1621(e), substituted "procurement center representative" for "breakout procurement center representative".

Subsec. (l)(5). Pub. L. 112–239, §1621(f), inserted par. heading, added subpar. (A), redesignated subpar. (C) as (B), inserted subpar. heading and substituted "The Administrator shall establish personnel positions for procurement center representatives assigned under" for "The Administration shall establish personnel positions for breakout procurement representatives and advisers assigned pursuant to" in subpar. (B), and struck out former subpars. (A) and (B) which read as follows:

"(A) The breakout procurement center representatives and technical advisers assigned pursuant to this subsection shall be—

"(i) full-time employees of the Administration; and

"(ii) fully qualified, technically trained, and familiar with the supplies and services procured by the major procurement center to which they are assigned.

"(B) In addition to the requirements of subparagraph (A), each breakout procurement center representative, and at least one technical adviser assigned to such representative, shall be an accredited engineer."

Subsec. (l)(6). Pub. L. 112–239, §1621(g), inserted heading and substituted in text "goods or services, including goods or services that are commercially available" for "other than commercial items and which has the potential to incur significant savings as the result of the placement of a breakout procurement center representative".

Subsec. (l)(7). Pub. L. 112–239, §1621(h)(1), (2), (4), inserted par. heading, inserted subpar. (A) heading, and added subpar. (B). Former par. (7)(B) redesignated (8).

Subsec. (l)(8). Pub. L. 112–239, §1621(h)(3), redesignated subpar. (7)(B) as par. (8), inserted heading, and substituted "A procurement center representative" for "The breakout procurement center representative" and "60" for "sixty".

Subsec. (o). Pub. L. 112–239, §1696(b)(3), added subsec. (o) and struck out former subsec. (o) which related to requirements for performance of contracts by employees of small business concerns.

Subsec. (p). Pub. L. 112–239, §1696(a)(1), substituted "Access to data" for "Database, analysis, and annual report with respect to bundled contracts" in heading.

Subsec. (q). Pub. L. 112–239, §1696(a)(2), substituted "Reports related to procurement center representatives" for "Bundling accountability measures" in heading.

2010—Subsec. (g)(1). Pub. L. 111–240, §1347(b)(2), inserted "and subcontract" before "awards for fiscal year 2003" in fourth sentence.

Pub. L. 111–240, §1312(b), substituted "Administrator for Federal Procurement Policy" for "Administrator of the Office of Federal Procurement Policy".

Subsec. (g)(2). Pub. L. 111–240, §1333, designated first to fifth sentences as subpars. (A) to (E), respectively, substituted "the participation described in subparagraph (D)" for "such participation" in subpar. (E), redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (E), and added subpar. (F).

Pub. L. 111–240, §1312(b), substituted "Administrator for Federal Procurement Policy" for "Administrator of the Office of Federal Procurement Policy".

Subsec. (h)(2). Pub. L. 111–240, §1346, in introductory provisions, substituted "submit to the President and the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives the compilation and analysis, which shall include the following:" for "submit them to the President and the Congress. The Administration's submission to the President shall include the following:".

Subsec. (q). Pub. L. 111–240, §1312(a), added subsec. (q).

Subsec. (r). Pub. L. 111–240, §1331, added subsec. (r).

2000—Subsec. (a). Pub. L. 106–554, §1(a)(9) [title VIII, §806(a)], in eighth sentence, substituted "definition of a 'United States industry' under the North American Industry Classification System, as established" for "four-digit standard industrial classification codes contained in the Standard Industrial Classification Manual published".

Subsec. (p). Pub. L. 106–554, §1(a)(9) [title VIII, §810], added subsec. (p).

1999—Subsec. (g)(1). Pub. L. 106–50, §502(a)(3), inserted "small business concerns owned and controlled by service-disabled veterans," after "the maximum practicable opportunity for small business concerns," in penultimate sentence.

Pub. L. 106–50, §502(a)(2), inserted after second sentence "The Government-wide goal for participation by small business concerns owned and controlled by service-disabled veterans shall be established at not less than 3 percent of the total value of all prime contract and subcontract awards for each fiscal year."

Pub. L. 106–50, §502(a)(1), inserted "small business concerns owned and controlled by service disabled veterans," after "small business concerns," the first place appearing in first sentence.

Subsec. (g)(2). Pub. L. 106–50, §502(b)(3), inserted "small business concerns owned and controlled by service-disabled veterans, by" after "including participation by" in fourth sentence.

Pub. L. 106–50, §502(b)(2), inserted "small business concerns owned and controlled by service-disabled veterans," after "small business concerns," the first place appearing in second sentence.

Pub. L. 106–50, §502(b)(1), inserted "by small business concerns owned and controlled by service-disabled veterans," after "small business concerns," the first place appearing in first sentence.

Subsec. (h)(1). Pub. L. 106–50, §601(a), inserted "small business concerns owned and controlled by veterans (including service-disabled veterans)," after "small business concerns," the first place appearing.

Subsec. (h)(2). Pub. L. 106–50, §601(b)(1), inserted "and the Congress" before period at end of first sentence in introductory provisions.

Subsec. (h)(2)(A), (D), (E). Pub. L. 106–50, §601(b)(2), inserted "small business concerns owned and controlled by service-disabled veterans," after "small business concerns," the first place appearing.

1997—Subsec. (a). Pub. L. 105–135, §413(b), in third sentence, inserted "or the solicitation involves an unnecessary or unjustified bundling of contract requirements, as determined by the Administration," after "discrete construction projects,", substituted "(4)" for "or (4)", and inserted before period at end ", or (5) why the agency has determined that the bundled contract (as defined in section 632(o) of this title) is necessary and justified".

Subsec. (e). Pub. L. 105–135, §413(a), added subsec. (e).

Subsec. (g)(1). Pub. L. 105–135, §603(b)(1), inserted "qualified HUBZone small business concerns," after "small business concerns," in two places, substituted "not less than 23 percent of the total value" for "not less than 20 percent of the total value", and inserted after second sentence "The Governmentwide goal for participation by qualified HUBZone small business concerns shall be established at not less than 1 percent of the total value of all prime contract awards for fiscal year 1999, not less than 1.5 percent of the total value of all prime contract awards for fiscal year 2000, not less than 2 percent of the total value of all prime contract awards for fiscal year 2001, not less than 2.5 percent of the total value of all prime contract awards for fiscal year 2002, and not less than 3 percent of the total value of all prime contract awards for fiscal year 2003 and each fiscal year thereafter."

Subsec. (g)(2). Pub. L. 105–135, §603(b)(2)(B), (C), inserted "qualified HUBZone small business concerns," after "small business concerns," in second sentence and substituted "by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals, and by small business concerns owned and controlled by women" for "by small business concerns from each industry category in procurement contracts of the agency, including participation by small business concerns owned and controlled by socially and economically disadvantaged individuals and participation by small business concerns owned and controlled by women" before period at end of fourth sentence.

Pub. L. 105–135, §603(b)(2)(A), which directed substitution of ", by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals" for ",, by small business concerns owned and controlled by socially and economically disadvantaged individuals" in first sentence, was executed by making the insertion for the quoted language which started with a single comma to reflect the probable intent of Congress and the amendment by Pub. L. 104–106, §4321(c)(3). See 1996 Amendment note below.

Subsec. (h). Pub. L. 105–135, §603(b)(3), inserted "qualified HUBZone small business concerns," after "small business concerns," wherever appearing.

Subsec. (k)(5) to (10). Pub. L. 105–135, §413(c)(1), (2), added par. (5) and redesignated former pars. (5) to (9) as (6) to (10), respectively.

1996—Subsec. (g)(2). Pub. L. 104–106 struck out second comma after "goals for the participation by small business concerns,".

1994—Subsec. (c)(2)(A). Pub. L. 103–403, §305(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "During each of fiscal years 1989 through 1993, public or private organizations for the handicapped shall be eligible to participate in programs authorized under this section in an aggregate amount for each year as follows: In 1989 not more than $30,000,000, in 1990 not more than $40,000,000, and in each of 1991, 1992 and 1993 not more than $50,000,000."

Subsec. (c)(7). Pub. L. 103–403, §305(2), added par. (7).

Subsec. (e). Pub. L. 103–355, §7101(a), struck out subsec. (e) which read as follows: "In carrying out small business set-aside programs, departments, agencies, and instrumentalities of the executive branch shall award contracts, and encourage the placement of subcontracts for procurement to the following in the manner and in the order stated:

"(1) concerns which are small business concerns and which are located in labor surplus areas, on the basis of a total set-aside;

"(2) concerns which are small business concerns, on the basis of a total set-aside;

"(3) concerns which are small business concerns and which are located in a labor surplus area, on the basis of a partial set-aside;

"(4) concerns which are small business concerns, on the basis of a partial set-aside."

Subsec. (f). Pub. L. 103–355, §7101(a), struck out subsec. (f) which read as follows: "After priority is given to the small business concerns specified in subsection (e) of this section, priority shall also be given to the awarding of contracts and the placement of subcontracts, on the basis of a total set-aside, to concerns which—

"(1) are not eligible under subsection (e) of this section;

"(2) are not small business concerns; and

"(3) will perform a substantial proportion of the production on those contracts and subcontracts within areas of concentrated unemployment or underemployment or within labor surplus areas."

Subsec. (g)(1). Pub. L. 103–355, §7106(a)(1), substituted ", small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women" for "and small business concerns owned and controlled by socially and economically disadvantaged individuals" in first sentence and in sentence beginning with "Notwithstanding the".

Pub. L. 103–355, §7106(a)(2)(A), inserted after third sentence "The Government-wide goal for participation by small business concerns owned and controlled by women shall be established at not less than 5 percent of the total value of all prime contract and subcontract awards for each fiscal year."

Subsec. (g)(2). Pub. L. 103–355, §7106(a)(2)(B), in first sentence substituted ", by small business concerns owned and controlled by socially and economically disadvantaged individuals, and by small business concerns owned and controlled by women" for "and by small business concerns owned and controlled by socially and economically disadvantaged individuals,".

Pub. L. 103–355, §7106(a)(1), in second sentence substituted ", small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women" for "and small business concerns owned and controlled by socially and economically disadvantaged individuals".

Pub. L. 103–355, §7106(a)(2)(C), in fourth sentence inserted at end "and participation by small business concerns owned and controlled by women".

Subsec. (h)(1), (2)(A), (D), (E). Pub. L. 103–355, §7106(a)(1), substituted ", small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women" for "and small business concerns owned and controlled by socially and economically disadvantaged individuals".

Subsec. (h)(2)(F). Pub. L. 103–355, §7106(a)(3), substituted "small business concerns owned and controlled by women" for "women-owned small business enterprises".

Subsec. (j). Pub. L. 103–355, §4004, amended subsec. (j) generally. Prior to amendment, subsec. (j) read as follows: "Each contract for the procurement of goods and services which has an anticipated value not in excess of the small purchase threshold and which is subject to small purchase procedures shall be reserved exclusively for small business concerns unless the contracting officer is unable to obtain offers from two or more small business concerns that are competitive with market prices and in terms of quality and delivery of the goods or services being purchased. In utilizing small purchase procedures, contracting officers shall, wherever circumstances permit, choose a method of payment which minimizes paperwork and facilitates prompt payment to contractors."

1992—Subsec. (c)(1)(A). Pub. L. 102–569 substituted "From People Who Are Blind or Severely Disabled" for "from the Blind and Other Severely Handicapped".

Subsec. (c)(2)(B). Pub. L. 102–366, §232(b)(1), which directed the substitution of "Blind-made" for "Blindmade", could not be executed to text because "Blindmade" did not appear in subpar. (B).

Subsec. (k)(3), (5). Pub. L. 102–366, §232(b)(2), substituted comma for semicolon at end of pars. (3) and (5).

Subsec. (k)(9). Pub. L. 102–484, §801(h)(8)(A), substituted "section 2323 of title 10" for "section 1207 of Public Law 99–661".

Subsec. (l)(6). Pub. L. 102–366, §232(b)(3), inserted period at end.

Subsec. (m)(1). Pub. L. 102–484, §801(h)(8)(B), substituted "section 2323 of title 10" for "section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)".

Subsec. (m)(2)(B). Pub. L. 102–366, §232(b)(4), substituted "requirements" for "requirement".

Subsec. (m)(2)(C). Pub. L. 102–484, §801(h)(8)(C), substituted "section 2323 of title 10" for "section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)".

1991—Subsec. (k)(5). Pub. L. 102–190 amended par. (5) generally. Prior to amendment, par. (5) read as follows: "assist small business concerns to obtain payments, late payment interest penalties, or information due to such concerns, in conformity with chapter 39 of title 31;".

1990—Subsec. (a). Pub. L. 101–574 inserted after second sentence "If a proposed procurement includes in its statement of work goods or services currently being performed by a small business, and if the proposed procurement is in a quantity or estimated dollar value the magnitude of which renders small business prime contract participation unlikely, or if a proposed procurement for construction seeks to package or consolidate discrete construction projects, the Procurement Activity shall provide a copy of the proposed procurement to the Procurement Activity's Small Business Procurement Center Representative at least 30 days prior to the solicitation's issuance along with a statement explaining (1) why the proposed acquisition cannot be divided into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement, (2) why delivery schedules cannot be established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government, (3) why the proposed acquisition cannot be offered so as to make small business participation likely, or (4) why construction cannot be procured as separate discrete projects. The thirty-day notification process shall occur concurrently with other processing steps required prior to issuance of the solicitation. Within 15 days after receipt of the proposed procurement and accompanying statement, if the Procurement Center Representative believes that the procurement as proposed will render small business prime contract participation unlikely, the Representative shall recommend to the Procurement Activity alternative procurement methods which would increase small business prime contracting opportunities."

Subsec. (j). Pub. L. 101–510 substituted "not in excess of the small purchase threshold" for "of less than $25,000".

1989—Subsec. (h)(2)(A). Pub. L. 101–37, §19, inserted "individuals" after "economically disadvantaged".

Subsec. (m)(1)(A). Pub. L. 101–37, §21, substituted "procedures" for "procedure".

1988—Subsec. (c). Pub. L. 100–590, §133(a), amended subsec. (c) generally, substituting provisions relating to programs for blind and handicapped individuals for provisions relating to eligibility, participating organizations, monitoring and evaluation, and report to Congressional committees.

Subsec. (g). Pub. L. 100–656, §502, added par. (1) and designated existing provisions as par. (2) and former pars. (1) and (2) as subpars. (A) and (B).

Subsec. (h). Pub. L. 100–656, §503, designated existing provisions as par. (1), struck out at end "The Administration shall submit to the Select Committee on Small Business of the Senate and the Committee on Small Business of the House of Representatives information obtained from such reports, together with appropriate comments.", and added pars. (2) and (3).

Subsec. (k)(3). Pub. L. 100–656, §603(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "be responsible only to, and report directly to, the head of such agency or to his deputy, except that in the case of the Department of Defense the Director of the Office of Small and Disadvantaged Business Utilization shall be responsible to, and report directly to, the Under Secretary of Defense for Acquisition,".

Subsec. (k)(5) to (8). Pub. L. 100–496 added par. (5) and redesignated former pars. (5) to (7) as (6) to (8), respectively.

Subsec. (k)(9). Pub. L. 100–656, §603(2)–(4), added par. (9).

Subsec. (l)(2)(D). Pub. L. 100–590, §110(1), struck out "unrestricted" before "technical data" in two places.

Subsec. (l)(2)(E). Pub. L. 100–590, §110(2), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: "have access to the unclassified procurement records and other data of the procurement center;".

Subsec. (l)(3). Pub. L. 100–590, §110(3), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "A breakout procurement center representative is authorized to appeal a failure to act favorably on any recommendation made pursuant to paragraph (2). Such appeal shall be in writing, specifically reciting both the circumstances of the appeal and the basis of the recommendation. The appeal shall be decided by a person within the employ of the appropriate activity who is at least one supervisory level above the person who initially failed to act favorably on the recommendation. Such appeal shall be decided within 30 calendar days of its receipt."

Subsec. (l)(6). Pub. L. 100–590, §110(4), amended par. (6) generally. Prior to amendment, par. (6) read as follows: "For purposes of this subsection, the term 'major procurement center' means a procurement center of the Department of Defense that awarded contracts for items other than commercial items totaling at least $150,000,000 in the preceding fiscal year, and such other procurement centers as designated by the Administrator."

Subsec. (l)(7). Pub. L. 100–590, §110(5), added par. (7).

Subsec. (m). Pub. L. 100–656, §601, amended subsec. (m) generally, substituting provisions related to implementation of section 1207 of Pub. L. 99–661 for former provisions related to labor surplus area procurement and manpower programs.

1987—Subsec. (a). Pub. L. 100–26, §10(a)(1), made technical amendment to directory language of section 921(a)(1) of Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–661. See 1986 Amendment note below.

Subsec. (g). Pub. L. 100–180, §809(a)(2), struck out "having a value of $25,000 or more" after "procurement contracts of such agency".

Pub. L. 100–180, §809(a)(1), provided for temporarily inserting "having a value of $25,000 or more" after "procurement contracts of such agency". See Effective Date of 1987 Amendments note below.

Subsec. (o)(1). Pub. L. 100–180, §809(b)(1), substituted "subsection (a)" for "this subsection" in introductory provisions.

Subsec. (o)(1)(A). Pub. L. 100–26, §10(b)(1)(A), substituted "at least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern" for "the concern will perform at least 50 percent of the cost of the contract with its own employees".

Subsec. (o)(3). Pub. L. 100–26, §10(b)(1)(B), substituted "requirements of such paragraph" for "requirements of such subparagraph" and inserted at end "The percentage applicable to any such requirement shall be determined in accordance with paragraph (2)."

Subsec. (p). Pub. L. 100–180, §809(c), struck out subsec. (p) which read as follows:

"(1) Except as provided in paragraphs (2) and (3), the head of any Federal agency shall, within five days of the agency's decision to set aside a procurement for small business concerns under this section, provide the names and addresses of the small business concerns expected to respond to the procurement to any person who requests such information.

"(2) The Secretary of Defense may decline to provide information under paragraph (1) in order to protect national security interests.

"(3) The head of a Federal agency is not required to release any information under paragraph (1) that is not required to be released under section 552 of title 5."

1986—Subsec. (a). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§921(a), (b)], Pub. L. 99–661, §921(a), (b), as amended by Pub. L. 100–26, §10(a)(1), amended subsec. (a) identically, inserting "in each industry category" in cl. (3), and inserting provision identifying an industry category, providing for determination of such category by the Administrator, and permitting segmentation of a market for goods and services under certain circumstances and provision that a contract not be awarded if the award would result in a cost to the awarding agency which exceeds a fair market price.

Subsec. (g). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§921(d)], Pub. L. 99–661, §921(d), amended subsec. (g) identically, striking out "having values of $10,000 or more" after "such agency" and inserting provision requiring the head of each Federal agency to make consistent efforts to annually expand participation by small business concerns from each industry category in procurement contracts of the agency.

Subsec. (j). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§922(c)], Pub. L. 99–661, §922(c), amended subsec. (j) identically, substituting "$25,000" for "$10,000".

Subsec. (k)(3). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§903(d)], Pub. L. 99–661, §903(d), which directed identical amendments to par. (3) by inserting ", except that in the case of the Department of Defense the Director of the Office of Small and Disadvantaged Business Utilization shall be responsible to, and report directly to, the Under Secretary of Defense for Acquisition" was executed by inserting that phrase immediately before the comma at the end as the probable intent of Congress.

Subsec. (n). Pub. L. 99–272 added subsec. (n).

Subsecs. (o), (p). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§921(c)(2), (e)], Pub. L. 99–661, §921(c)(2), (e), amended section identically, adding subsecs. (o) and (p).

1984—Subsecs. (l), (m). Pub. L. 98–577 added subsec. (l) and redesignated former subsec. (l) as (m).

1980—Subsec. (c). Pub. L. 96–302, §116, substituted provisions covering participation of not-for-profit organizations in certain authorized programs during fiscal years 1981, through 1983, the monitoring and evaluation of such participation as causing severe economic injury to for-profit small businesses and transmission of report to congressional committees not later than Jan. 1, 1982, respecting impact of contracts on the for-profit small businesses for provisions respecting eligibility during fiscal year 1978, of public and private organizations and individuals to participate in the award of contracts and requiring transmission of a report by March 1, 1979.

Subsec. (d). Pub. L. 96–302, §117(a), substituted "small business concerns" for "concerns".

Subsec. (e). Pub. L. 96–302, §117(b), in revising text, struck out from introductory clause reference to labor surplus areas; reenacted par. (1) reversing order of reference to small business concerns and location in labor surplus areas; reenacted par. (2); added par. (3); redesignated former par. (3) as (4); and struck out former par. (4) as to concerns located in labor surplus areas on basis of total set-aside, as covered in par. (1).

Subsec. (f). Pub. L. 96–302, §117(b), substituted provision respecting other priorities in placement of contracts for requirement that subsecs. (d) and (e) of this section cease to be effective subsequent to Sept. 30, 1980, unless renewed prior to such date.

1978—Subsec. (f). Pub. L. 95–507, §232, substituted "September 30, 1980" for "September 30, 1979".

Subsecs. (g) to (k). Pub. L. 95–507, §221, added subsecs. (g) to (k).

Subsec. (l). Pub. L. 95–507, §233, added subsec. (l).

1977—Pub. L. 95–89 designated existing provisions as subsec. (a) and added subsecs. (b) to (f).

Change of Name

Committee on Small Business of Senate changed to Committee on Small Business and Entrepreneurship of Senate. See Senate Resolution No. 123, One Hundred Seventh Congress, June 29, 2001.

Effective Date of 2017 Amendment

Pub. L. 115–91, div. A, title XVII, §1703(b), Dec. 12, 2017, 131 Stat. 1806, provided that: "The Administrator of the Small Business Administration shall be required to report on the information required by clauses (i)(V), (ii)(VI), (iii)(VII), (iv)(VII), (v)(VI), (vi)(VI), (vii)(VI), and (viii)(IX) of section 15(h)(2)(E) of the Small Business Act (15 U.S.C. 644(h)(2)(E)) beginning on the date that such information is available in the Federal Procurement Data System, the System for Award Management, or any new or successor system."

Effective Date of 1997 Amendment

Amendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of this title.

Effective Date of 1996 Amendment

For effective date and applicability of amendment by Pub. L. 104–106, see section 4401 of Pub. L. 104–106, set out as a note under section 2302 of Title 10, Armed Forces.

Effective Date of 1994 Amendment

For effective date and applicability of amendment by sections 4004 and 7106(a) of Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set out as a note under section 2302 of Title 10, Armed Forces.

Effective Date of 1989 Amendment

Amendment by Pub. L. 101–37 applicable as if included in Pub. L. 100–656, see section 32 of Pub. L. 101–37, set out as a note under section 631 of this title.

Effective Date of 1988 Amendment

Amendment by sections 502 and 503 of Pub. L. 100–656 effective Oct. 1, 1989, and amendment by sections 601 and 603 of Pub. L. 100–656 effective Nov. 15, 1988, see section 803(a)(7), (b)(4)(C), of Pub. L. 100–656, as amended, set out as a note under section 631 of this title.

Amendment by Pub. L. 100–496 applicable to payments under contracts awarded, contracts renewed, and contract options exercised during or after the first fiscal quarter which begins more than 90 days after Oct. 17, 1988, see section 14(a) of Pub. L. 100–496, set out as a note under section 3902 of Title 31, Money and Finance.

Effective Date of 1987 Amendment

Pub. L. 100–180, div. A, title VIII, §809(a)(1), Dec. 4, 1987, 101 Stat. 1130, provided that the amendment made by that section is in effect until Sept. 30, 1988.

Pub. L. 100–180, div. A, title VIII, §809(a)(2), Dec. 4, 1987, 101 Stat. 1130, as amended by Pub. L. 100–656, title VII, §731, Nov. 15, 1988, 102 Stat. 3897, provided that the amendment made by that section is effective Oct. 1, 1989.

Amendment by section 10(a)(1), (b)(1) of Pub. L. 100–26 applicable as if included in each instance of the Defense Acquisition Improvement Act (as specified in section 2 of Pub. L. 100–26) [title X of section 101(c) of Pub. L. 99–500 and Pub. L. 99–591, and title IX of div. A of Pub. L. 99–661] when each was enacted [Oct. 18, 1986, Oct. 30, 1986, and Nov. 14, 1986, respectively], see section 12(c) of Pub. L. 100–26, set out as a note under section 632 of this title.

Effective Date of 1986 Amendment

Pub. L. 99–272, title XVIII, §18003(b), Apr. 7, 1986, 100 Stat. 364, provided that: "The amendment made by subsection (a) [amending this section] shall take effect on the ninetieth day after the date of the enactment of this Act [Apr. 7, 1986].

Amendment by section 101(c) [title X, §921(a), (b)(1), (c)(2)–(e)] of Pub. L. 99–500 and Pub. L. 99–591, and section 921(a), (b)(1), (c)(2)–(e) of Pub. L. 99–661 effective Oct. 1, 1987, see section 101(c) of Pub. L. 99–500 and Pub. L. 99–591, and section 921(g) of Pub. L. 99–661, set out as a note under section 632 of this title.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–302 effective Oct. 1, 1980, see section 507 of Pub. L. 96–302, set out as a note under section 631 of this title.

Training To Be Updated

Pub. L. 114–328, div. A, title XVIII, §1814(b), Dec. 23, 2016, 130 Stat. 2654, provided that: "After receipt of information from the Administrator of the Small Business Administration pursuant to section 15(v) of the Small Business Act [15 U.S.C. 644(v)], the Defense Acquisition University (established under section 1746 of title 10, United States Code) and the Federal Acquisition Institute (established under section 1201 of title 41, United States Code) shall periodically update the training provided to the acquisition workforce to incorporate such information."

Scorecard Program for Evaluating Federal Agency Compliance With Small Business Contracting Goals

Pub. L. 114–92, div. A, title VIII, §868(b), Nov. 25, 2015, 129 Stat. 933, provided that:

"(1) In general.—Not later than September 30, 2016, the Administrator of the Small Business Administration, in consultation with the Federal agencies, shall—

"(A) develop a methodology for calculating a score to be used to evaluate the compliance of each Federal agency with meeting the goals established pursuant to section 15(g)(1)(B) of the Small Business Act (15 U.S.C. 644(g)(1)(B)) based on each such goal; and

"(B) develop a scorecard based on such methodology.

"(2) Use of scorecard.—Beginning in fiscal year 2017, the Administrator shall establish and carry out a program to use the scorecard developed under paragraph (1) to evaluate whether each Federal agency is creating the maximum practicable opportunities for the award of prime contracts and subcontracts to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women, by assigning a score to each Federal agency for the previous fiscal year.

"(3) Contents of scorecard.—The scorecard developed under paragraph (1) shall include, for each Federal agency, the following information:

"(A) A determination of whether the Federal agency met each of the prime contract goals established pursuant to section 15(g)(1)(B) of the Small Business Act (15 U.S.C. 644(g)(1)(B)) with respect to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women.

"(B) A determination of whether the Federal agency met each of the subcontract goals established pursuant to such section with respect to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women.

"(C) The number of small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women awarded prime contracts in each North American Industry Classification System code during the fiscal year and a comparison to the number of awarded contracts during the prior fiscal year, if available.

"(D) The number of small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women awarded subcontracts in each North American Industry Classification System code during the fiscal year and a comparison to the number of awarded subcontracts during the prior fiscal year, if available.

"(E) Any other factors that the Administrator deems important to achieve the maximum practicable utilization of small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women.

"(4) Weighted factors.—In using the scorecard to evaluate and assign a score to a Federal agency, the Administrator shall base—

"(A) fifty percent of the score on the dollar value of prime contracts described in paragraph (3)(A); and

"(B) fifty percent of the score on the information provided in subparagraphs (B) through (E) of paragraph (3), weighted in a manner determined by the Administrator to encourage the maximum practicable opportunity for the award of prime contracts and subcontracts to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women.

"(5) Publication.—The scorecard used by the Administrator under this subsection shall be submitted to the President and Congress along with the report submitted under section 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)).

"(6) Report.—After the Administrator uses the scorecard for fiscal year 2018 to assign scores to Federal agencies, but not later than March 31, 2019, the Administrator shall submit a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate. Such report shall include the following:

"(A) A description of any increase in the dollar amount of prime contracts and subcontracts awarded to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women.

"(B) A description of any increase in the dollar amount of prime contracts and subcontracts, and the total number of contracts, awarded to small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women in each North American Industry Classification System code.

"(C) The recommendation of the Administrator on continuing, modifying, expanding, or terminating the program established under this subsection.

"(7) GAO report on scorecard methodology.—Not later than September 30, 2018, the Comptroller General of the United States shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report that—

"(A) evaluates whether the methodology used to calculate a score under this subsection accurately and effectively—

"(i) measures the compliance of each Federal agency with meeting the goals established pursuant to section 15(g)(1)(B) of the Small Business Act (15 U.S.C. 644(g)(1)(B)); and

"(ii) encourages Federal agencies to expand opportunities for small business concerns, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women to compete for and be awarded Federal procurement contracts across North American Industry Classification System codes; and

"(B) if warranted, makes recommendations on how to improve such methodology to improve its accuracy and effectiveness.

"(8) Definitions.—In this subsection:

"(A) Administrator.—The term 'Administrator' means the Administrator of the Small Business Administration.

"(B) Federal agency.—The term 'Federal agency' has the meaning given the term 'agency' by section 551(1) of title 5, United States Code, but does not include the United States Postal Service or the Government Accountability Office.

"(C) Scorecard.—The term 'scorecard' shall mean any summary using a rating system to evaluate a Federal agency's efforts to meet goals established under section 15(g)(1)(B) of the Small Business Act (15 U.S.C. 644(g)(1)(B)) that—

"(i) includes the measures described in paragraph (3); and

"(ii) assigns a score to each Federal agency evaluated.

"(D) Small business act definitions.—

"(i) In general.—The terms 'small business concern', 'small business concern owned and controlled by service-disabled veterans', 'qualified HUBZone small business concern', and 'small business concern owned and controlled by women' have the meanings given such terms under section 3 of the Small Business Act (15 U.S.C. 632).

"(ii) Small business concerns owned and controlled by socially and economically disadvantaged individuals.—The term 'small business concern owned and controlled by socially and economically disadvantaged individuals' has the meaning given that term under section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C))."

Additional Requirements for the Small Business Preference Programs for Prime and Subcontract Federal Procurement Goals and Achievements

Pub. L. 112–239, div. A, title XVI, §1631(c), Jan. 2, 2013, 126 Stat. 2072, provided that: "Not later than 180 days after the date of the enactment of this part [Jan. 2, 2013], the Administrator of the Small Business Administration shall review and revise the Goaling Guidelines for the Small Business Preference Programs for Prime and Subcontract Federal Procurement Goals and Achievements to the extent necessary to ensure that—

"(1) agency subcontracting goals are established on the basis of realistically achievable improvements to levels of subcontracting rather than on the basis of an average of previous years' subcontracting performance;

"(2) agency contracting and subcontracting goals are established in a manner that does not exclude categories of contracts on the basis of—

"(A) the type of goods or services for which the agency contracts;

"(B) in the case of contracts subject to competitive procedures under chapter 33 of title 41, United States Code—

"(i) whether or not funding for the contracts is made directly available to the agency by an Appropriations Act or is made available by reimbursement from another agency or account; or

"(ii) whether or not the contract is subject to the Federal Acquisition Regulation; and

"(3) whenever an agency contracting or subcontracting goal is established at a level lower than the Governmentwide goal for small business concerns or the relevant category of small business concerns, the Administration is required to document the basis for the decision to establish such lower goal."

Electronic Procurement Center Representative

Pub. L. 111–240, title I, §1312(d), Sept. 27, 2010, 124 Stat. 2538, provided that:

"(1) In general.—Not later than 1 year after the date of enactment of this Act [Sept. 27, 2010], the Administrator [of the Small Business Administration] shall implement a 3-year pilot electronic procurement center representative program.

"(2) Report.—Not later than 30 days after the pilot program under paragraph (1) ends, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report regarding the pilot program."

Small Business Teams Pilot Program

Pub. L. 111–240, title I, §1314, Sept. 27, 2010, 124 Stat. 2540, provided that:

"(a) Definitions.—In this section—

"(1) the term 'Pilot Program' means the Small Business Teaming Pilot Program established under subsection (b); and

"(2) the term 'eligible organization' means a well-established national organization for small business concerns with the capacity to provide assistance to small business concerns (which may be provided with the assistance of the Administrator) relating to—

"(A) customer relations and outreach;

"(B) team relations and outreach; and

"(C) performance measurement and quality assurance.

"(b) Establishment.—The Administrator shall establish a Small Business Teaming Pilot Program for teaming and joint ventures involving small business concerns.

"(c) Grants.—Under the Pilot Program, the Administrator may make grants to eligible organizations to provide assistance and guidance to teams of small business concerns seeking to compete for larger procurement contracts.

"(d) Contracting Opportunities.—The Administrator shall work with eligible organizations receiving a grant under the Pilot Program to recommend appropriate contracting opportunities for teams or joint ventures of small business concerns.

"(e) Report.—Not later than 1 year before the date on which the authority to carry out the Pilot Program terminates under subsection (f), the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effectiveness of the Pilot Program.

"(f) Termination.—The authority to carry out the Pilot Program shall terminate 5 years after the date of enactment of this Act [Sept. 27, 2010].

"(g) Authorization of Appropriations.—There are authorized to be appropriated for grants under subsection (c) $5,000,000 for each of fiscal years 2010 through 2015."

[For definitions of "Administrator" and "small business concern" as used in section 1314 of Pub. L. 111–240, set out above, see section 1001 of Pub. L. 111–240, set out as a note under section 632 of this title.]

Manufacturing Contracts Through Manufacturing Application and Education Centers

Pub. L. 103–403, title III, §303, Oct. 22, 1994, 108 Stat. 4188, authorized the Small Business Administration to promote the award of Federal manufacturing contracts to small business concerns that participate in manufacturing application and education centers by working with the Department of Commerce and other agencies to identify components and subsystems that are both critical and currently foreign-sourced, such authority to terminate on Sept. 30, 1997.

Pilot Program for Very Small Business Concerns

Pub. L. 103–403, title III, §304, Oct. 22, 1994, 108 Stat. 4188, as amended by Pub. L. 105–135, title V, §508, Dec. 2, 1997, 111 Stat. 2627; Pub. L. 106–554, §1(a)(9) [title V, §503(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-695, required the Administrator of the Small Business Administration to establish and carry out a pilot program related to improved access to Federal contract opportunities for very small business concerns beginning not later than Aug. 30, 1995, and expiring on Sept. 30, 2003.

Expedited Resolution of Contract Administration Matters

Pub. L. 103–355, title II, §2353, Oct. 13, 1994, 108 Stat. 3323, provided that:

"(a) Regulations Required.—(1) The Federal Acquisition Regulation shall include provisions that require a contracting officer—

"(A) to make every reasonable effort to respond in writing within 30 days to any written request made to a contracting officer with respect to a matter relating to the administration of a contract that is received from a small business concern; and

"(B) in the event that the contracting officer is unable to reply within the 30-day period, to transmit to the contractor within such period a written notification of a specific date by which the contracting officer expects to respond.

"(2) The provisions shall not apply to a request for a contracting officer's decision under the Contract Disputes Act of 1978 ([former] 41 U.S.C. 601 et seq.) [see 41 U.S.C. 7101 et seq.].

"(b) Rule of Construction.—Nothing in this section shall be considered as creating any rights under the Contract Disputes Act of 1978 ([former] 41 U.S.C. 601 et seq.) [see 41 U.S.C. 7101 et seq.].

"(c) Definition.—In this section, the term 'small business concern' means a business concern that meets the requirements of section 3(a) of the Small Business Act (15 U.S.C. 632(a)) and the regulations promulgated pursuant to that section."

Contracting Program for Certain Small Businesses

Pub. L. 103–355, title VII, §7102, Oct. 13, 1994, 108 Stat. 3367, as amended by Pub. L. 106–554, §1(a)(9) [title V, §503(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A-695, provided that:

"(a) Procurement Procedures Authorized.—(1) To facilitate the attainment of a goal for the participation of small business concerns owned and controlled by socially and economically disadvantaged individuals that is established for a Federal agency pursuant to section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)), the head of the agency may enter into contracts using—

"(A) less than full and open competition by restricting the competition for such awards to small business concerns owned and controlled by socially and economically disadvantaged individuals described in subsection (d)(3)(C) of section 8 of the Small Business Act (15 U.S.C. 637); and

"(B) a price evaluation preference not in excess of 10 percent when evaluating an offer received from such a small business concern as the result of an unrestricted solicitation.

"(2) Paragraph (1) does not apply to the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration.

"(b) Implementation Through the Federal Acquisition Regulation.—

"(1) In general.—The Federal Acquisition Regulation shall be revised to provide for uniform implementation of the authority provided in subsection (a).

"(2) Matters to be addressed.—The revisions of the Federal Acquisition Regulation made pursuant to paragraph (1) shall include—

"(A) conditions for the use of advance payments;

"(B) provisions for contract payment terms that provide for—

"(i) accelerated payment for work performed during the period for contract performance; and

"(ii) full payment for work performed;

"(C) guidance on how contracting officers may use, in solicitations for various classes of products or services, a price evaluation preference pursuant to subsection (a)(1)(B), to provide a reasonable advantage to small business concerns owned and controlled by socially and economically disadvantaged individuals without effectively eliminating any participation of other small business concerns; and

"(D)(i) procedures for a person to request the head of a Federal agency to determine whether the use of competitions restricted to small business concerns owned and controlled by socially and economically disadvantaged individuals at a contracting activity of such agency has caused a particular industry category to bear a disproportionate share of the contracts awarded to attain the goal established for that contracting activity; and

"(ii) guidance for limiting the use of such restricted competitions in the case of any contracting activity and class of contracts determined in accordance with such procedures to have caused a particular industry category to bear a disproportionate share of the contracts awarded to attain the goal established for that contracting activity.

"(c) Termination.—This section shall cease to be effective at the end of September 30, 2003."

[For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.]

Small Business Procurement Advisory Council

Pub. L. 103–355, title VII, §7104, Oct. 13, 1994, 108 Stat. 3369, formerly set out as a note under this section, was transferred to section 644a of this title.

Procurement Procedures Under Small Business Competitiveness Demonstration Program Act of 1988

Pub. L. 102–366, title II, §202(h), Sept. 4, 1992, 106 Stat. 996, provided for procurement procedures under the Small Business Competitiveness Demonstration Program Act of 1988 prior to implementation of improvements to the collection of data regarding prime contract awards and of a system for collecting such data.

Modifications of Test Plan and Policy Direction Under Small Business Competitiveness Demonstration Program Act of 1988

Pub. L. 102–366, title II, §202(i), Sept. 4, 1992, 106 Stat. 996, required the Administrator for Federal Procurement Policy to issue certain modifications to the test plan and policy direction under the Small Business Competitiveness Demonstration Program Act of 1988.

Contract Bundling Study

Pub. L. 102–366, title III, §321, Sept. 4, 1992, 106 Stat. 1006, provided that the Administrator of the Small Business Administration was to conduct a study regarding the impact of the practice known as "contract bundling" on the participation of small business concerns in the Federal procurement process and, not later than May 15, 1993, to submit a report on the results of the study to the Committees on Small Business of the Senate and the House of Representatives.

Small Business Competitiveness Demonstration Program

Pub. L. 100–656, title VII, §§701–722, Nov. 15, 1988, 102 Stat. 3889–3895, as amended by Pub. L. 101–37, §§23–29, June 15, 1989, 103 Stat. 75, 76; Pub. L. 101–574, title II, §243, Nov. 15, 1990, 104 Stat. 2827; Pub. L. 102–54, §13(e), June 13, 1991, 105 Stat. 275; Pub. L. 102–366, title II, §§201–202(g), 203, Sept. 4, 1992, 106 Stat. 993–996; Pub. L. 102–484, div. A, title VIII, §801(h)(9), Oct. 23, 1992, 106 Stat. 2446; Pub. L. 102–564, title III, §307(a), Oct. 28, 1992, 106 Stat. 4263; Pub. L. 103–160, div. A, title VIII, §850(2), Nov. 30, 1993, 107 Stat. 1726; Pub. L. 103–446, title XII, §1202(a)(1), Nov. 2, 1994, 108 Stat. 4689; Pub. L. 104–208, div. D, title I, §108(a)–(c)(1), Sept. 30, 1996, 110 Stat. 3009–732, 3009-733; Pub. L. 105–18, title II, §2002, June 12, 1997, 111 Stat. 174; Pub. L. 105–135, title IV, §§401–405, Dec. 2, 1997, 111 Stat. 2616; Pub. L. 108–375, div. A, title VIII, §821, Oct. 28, 2004, 118 Stat. 2016, known as the Small Business Competitiveness Demonstration Program Act of 1988, established a Small Business Competitiveness Demonstration Program, prior to repeal by Pub. L. 111–240, title I, §1335(a), Sept. 27, 2010, 124 Stat. 2543.

[Pub. L. 111–240, title I, §1335(b), Sept. 27, 2010, 124 Stat. 2543, provided that: "The amendment made by this section [repealing sections 701–722 of Pub. L. 100–656, formerly set out above, and section 741 of Pub. L. 100–656, formerly set out below]—

["(1) shall take effect on the date of enactment of this Act [Sept. 27, 2010]; and

["(2) apply to the first full fiscal year after the date of enactment of this Act."]

Segmentation of Industry Category of Shipbuilding and Ship Repair

Pub. L. 100–656, title VII, §741, Nov. 15, 1988, 102 Stat. 3897, authorized the Small Business Administration to segment the industry category of shipbuilding and ship repair, prior to repeal by Pub. L. 111–240, title I, §1335(a), Sept. 27, 2010, 124 Stat. 2543.

Programs for Blind and Handicapped Individuals; Report on Impact on Small Business Concerns

Pub. L. 100–590, title I, §133(b), Nov. 3, 1988, 102 Stat. 3006, provided that not later than Sept. 30, 1992, the General Accounting Office was to prepare a report describing the impact that contracts awarded under subsec. (c) of this section had on for-profit small business concerns for fiscal years 1989 through 1991, and transmit the report to the Committees on Small Business of the Senate and the House of Representatives.

Task Force on Purchases From Blind and Severely Handicapped Individuals; Establishment; Meetings; Recommendations

Pub. L. 100–590, title I, §133(c), Nov. 3, 1988, 102 Stat. 3006, provided that: "There is established within the Small Business Administration a task force on purchases from the blind and severely handicapped which shall consist of one representative of the small business community appointed by the Administrator of the Small Business Administration and one individual knowledgeable in the affiars [sic] of or experienced in the work of sheltered workshops appointed by the Executive Director of the Committee for Purchase from the Blind and Other Severely Handicapped established under the first section of the Act entitled 'An Act to create a Committee on Purchases of Blind-made Products, and for other purposes', approved June 25, 1938 ([former] 41 U.S.C. 46) [now 41 U.S.C. 8502]. The task force shall meet at least once every six months for the purpose of reviewing the award of contracts under section 15(c) of the Small Business Act [15 U.S.C. 644(c)] and recommending to the Small Business Administration such administrative or statutory changes as it deems appropriate."

Standards for Measuring Cost Savings From Breakout Procurement Center Representatives

Pub. L. 98–577, title IV, §403(b), Oct. 30, 1984, 98 Stat. 3082, provided that:

"(1) The Administrator of the Small Business Administration and the Comptroller General of the United States shall jointly establish standards for measuring cost savings achieved through the efforts of breakout procurement center representatives and for measuring the extent to which competition has been increased as a result of such efforts. Thereafter, the Administrator shall annually prepare and submit to the Congress a report setting forth—

"(A) the cost savings achieved during the year covered by such report through the efforts of breakout procurement center representatives;

"(B) an evaluation of the extent to which competition has been increased as a result of such efforts; and

"(C) such other information as the Administrator may deem appropriate.

"(2) Within 180 days following the submission of the second annual report to Congress by the Administrator, the Comptroller General shall report to the Congress an evaluation of the Administration's adherence to the standards jointly established and the accuracy of the information the Administration has submitted to the Congress."

Ex. Ord. No. 13157. Increasing Opportunities for Women-Owned Small Businesses

Ex. Ord. No. 13157, May 23, 2000, 65 F.R. 34035, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Small Business Act, 15 U.S.C. 631, et seq., section 7106 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) [amending 15 U.S.C. 632, 637, 644, 645], and the Office of Federal Procurement Policy [Act], [former] 41 U.S.C. 403, et seq., and in order to strengthen the executive branch's commitment to increased opportunities for women-owned small businesses, it is hereby ordered as follows:

Section 1. Executive Branch Policy. In order to reaffirm and strengthen the statutory policy contained in the Small Business Act, 15 U.S.C. 644(g)(1), it shall be the policy of the executive branch to take the steps necessary to meet or exceed the 5 percent Government-wide goal for participation in procurement by women-owned small businesses (WOSBs). Further, the executive branch shall implement this policy by establishing a participation goal for WOSBs of not less than 5 percent of the total value of all prime contract awards for each fiscal year and of not less than 5 percent of the total value of all subcontract awards for each fiscal year.

Sec. 2. Responsibilities of Federal Departments and Agencies. Each department and agency (hereafter referred to collectively as "agency") that has procurement authority shall develop a long-term comprehensive strategy to expand opportunities for WOSBs. Where feasible and consistent with the effective and efficient performance of its mission, each agency shall establish a goal of achieving a participation rate for WOSBs of not less than 5 percent of the total value of all prime contract awards for each fiscal year and of not less than 5 percent of the total value of all subcontract awards for each fiscal year. The agency's plans shall include, where appropriate, methods and programs as set forth in section 4 of this order.

Sec. 3. Responsibilities of the Small Business Administration. The Small Business Administration (SBA) shall establish an Assistant Administrator for Women's Procurement within the SBA's Office of Government Contracting. This officer shall be responsible for:

(a) working with each agency to develop and implement policies to achieve the participation goals for WOSBs for the executive branch and individual agencies;

(b) advising agencies on how to implement strategies that will increase the participation of WOSBs in Federal procurement;

(c) evaluating, on a semiannual basis, using the Federal Procurement Data System (FPDS), the achievement of prime and subcontract goals and actual prime and subcontract awards to WOSBs for each agency;

(d) preparing a report, which shall be submitted by the Administrator of the SBA to the President, through the Interagency Committee on Women's Business Enterprise and the Office of Federal Procurement Policy (OFPP), on findings based on the FPDS, regarding prime contracts and subcontracts awarded to WOSBs;

(e) making recommendations and working with Federal agencies to expand participation rates for WOSBs, with a particular emphasis on agencies in which the participation rate for these businesses is less than 5 percent;

(f) providing a program of training and development seminars and conferences to instruct women on how to participate in the SBA's 8(a) [15 U.S.C. 637(a)] program, the Small Disadvantaged Business (SDB) program, the HUBZone program, and other small business contracting programs for which they may be eligible;

(g) developing and implementing a single uniform Federal Government-wide website, which provides links to other websites within the Federal system concerning acquisition, small businesses, and women-owned businesses, and which provides current procurement information for WOSBs and other small businesses;

(h) developing an interactive electronic commerce database that allows small businesses to register their businesses and capabilities as potential contractors for Federal agencies, and enables contracting officers to identify and locate potential contractors; and

(i) working with existing women-owned business organizations, State and local governments, and others in order to promote the sharing of information and the development of more uniform State and local standards for WOSBs that reduce the burden on these firms in competing for procurement opportunities.

Sec. 4. Other Responsibilities of Federal Agencies. To the extent permitted by law, each Federal agency shall work with the SBA to ensure maximum participation of WOSBs in the procurement process by taking the following steps:

(a) designating a senior acquisition official who will work with the SBA to identify and promote contracting opportunities for WOSBs;

(b) requiring contracting officers, to the maximum extent practicable, to include WOSBs in competitive acquisitions;

(c) prescribing procedures to ensure that acquisition planners, to the maximum extent practicable, structure acquisitions to facilitate competition by and among small businesses, HUBZone small businesses, SDBs, and WOSBs, and providing guidance on structuring acquisitions, including, but not limited to, those expected to result in multiple award contracts, in order to facilitate competition by and among these groups;

(d) implementing mentor-protege programs, which include women-owned small business firms; and

(e) offering industry-wide as well as industry-specific outreach, training, and technical assistance programs for WOSBs including, where appropriate, the use of Government acquisitions forecasts, in order to assist WOSBs in developing their products, skills, business planning practices, and marketing techniques.

Sec. 5. Subcontracting Plans. The head of each Federal agency, or designated representative, shall work closely with the SBA, OFPP, and others to develop procedures to increase compliance by prime contractors with subcontracting plans proposed under section 8(d) of the Small Business Act (15 U.S.C. 637(d)) or section 834 of Public Law 101–189, as amended (15 U.S.C. 637 note), including subcontracting plans involving WOSBs.

Sec. 6. Action Plans. If a Federal agency fails to meet its annual goals in expanding contract opportunities for WOSBs, it shall work with the SBA to develop an action plan to increase the likelihood that participation goals will be met or exceeded in future years.

Sec. 7. Compliance. Independent agencies are requested to comply with the provisions of this order.

Sec. 8. Consultation and Advice. In developing the long-term comprehensive strategies required by section 2 of this order, Federal agencies shall consult with, and seek information and advice from, State and local governments, WOSBs, other private-sector partners, and other experts.

Sec. 9. Judicial Review. This order is for internal management purposes for the Federal Government. It does not create any right or benefit, substantive or procedural, enforceable at law or equity by a party against the United States, its agencies, its officers, its employees, or any other person.

William J. Clinton.      

Ex. Ord. No. 13170. Increasing Opportunities and Access for Disadvantaged Businesses

Ex. Ord. No. 13170, Oct. 6, 2000, 65 F.R. 60827, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Small Business Act (15 U.S.C. 631 et seq.), section 7102 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355, 15 U.S.C. 644 note), the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 403 et seq.), Executive Order 11625 [15 U.S.C. 631 note], and to provide for increased access for disadvantaged businesses to Federal contracting opportunities, it is hereby ordered as follows:

Section 1. Policy. It is the policy of the executive branch to ensure nondiscrimination in Federal procurement opportunities for businesses in the Small Disadvantaged Business Program (SDBs), businesses in the section 8(a) Business Development program of the Small Business Administration (8(a)s), and Minority Business Enterprises (MBEs) as defined in section 6 of Executive Order 11625, of October 13, 1971, and to take affirmative action to ensure inclusion of these businesses in Federal contracting. These businesses are of vital importance to job growth and the economic strength of the United States but have faced historic exclusion and underutilization in Federal procurement. All agencies within the executive branch with procurement authority are required to take all necessary steps, as permitted by law, to increase contracting between the Federal Government and SDBs, 8(a)s, and MBEs.

Sec. 2. Responsibilities of Executive Departments and Agencies with Procurement Authority. The head of each executive department and agency shall carry out the terms of this order and shall designate, where appropriate, his or her Deputy Secretary or equivalent to implement the terms of this order.

(a) Each department and agency with procurement authority shall:

(i) aggressively seek to ensure that 8(a)s, SDBs, and MBEs are aware of future prime contracting opportunities through wide dissemination of contract announcements, including sources likely to reach 8(a)s, SDBs, other small businesses, and MBEs. Each department and agency shall use all available forms of communication to implement this provision, including the Internet, speciality press, and trade press;

(ii) work with the Small Business Administration (SBA) to ensure that information regarding sole source contracts awarded through the section 8(a) program receives the widest dissemination possible to 8(a)s;

(iii) ensure that the price evaluation preference programs authorized by the Federal Acquisition Streamlining Act of 1994 [Pub. L. 103–355, see Tables for classification] are used to the maximum extent permitted by law in areas of economic activity in which SDBs have historically been underused;

(iv) aggressively use the firms in the section 8(a) program, particularly in the developmental stage of the program, so that these firms have an opportunity to overcome artificial barriers to Federal contracting and gain access to the Federal procurement arena;

(v) ensure that department and agency heads take all reasonable steps so that prime contractors meet or exceed Federal subcontracting goals, and enforce subcontracting commitments as required by the Small Business Act (15 U.S.C. 637(d)) and other related laws. In particular, they shall ensure that prime contractors actively solicit bids for subcontracting opportunities from 8(a)s and SDBs, and fulfill their SDB and section 8(d) subcontracting obligations. Enforcement of SDB subcontracting plan commitments shall include assessments of liquidated damages, where appropriate, pursuant to applicable contract clauses;

(vi) encourage the establishment of business-to-business mentoring and teaming relationships, including the implementation of Mentor-Protege programs, to foster the development of the technical and managerial capabilities of 8(a)s and SDBs and to facilitate long-term business relationships;

(vii) offer information, training, and technical assistance programs for 8(a)s and SDBs including, where appropriate, Government acquisition forecasts in order to assist 8(a)s and SDBs in developing their products, skills, business planning practices, and marketing techniques;

(viii) train program and procurement officials regarding the policy of including 8(a)s and SDBs in Federal procurement. This includes prescribing procedures to ensure that acquisition planners, to the maximum extent practicable, structure acquisitions to facilitate competition by SDBs and 8(a)s, including their participation in the competition of multiple award requirements;

(ix) provide the information required by the Department of Commerce when it requests data to develop the benchmarks used in the price evaluation preference programs authorized by the Federal Acquisition Streamlining Act of 1994;

(x) ensure that Directors of Offices of Small and Disadvantaged Business Utilization carry out their responsibilities to maximize the participation of 8(a)s and SDBs in Federal procurement and, in particular, ensure that the Directors report directly to the head of each department or agency as required by law; and

(xi) as required by law, establish with the Small Business Administration small business goals to ensure that the government-wide goal for participation of small business concerns is not less than 23 percent of Federal prime contracts. Where feasible and consistent with the effective and efficient performance of its mission, each agency shall establish a goal of achieving a participation rate for SDBs of not less than 5 percent of the total value of prime contract awards for each fiscal year and of not less than 5 percent of the total value of subcontract awards for each year. Each agency shall also establish a goal for awards made to 8(a) firms pursuant to section 8(a) of the Small Business Act [15 U.S.C. 637(a)]. These goals shall be considered the minimum goals and every effort shall be taken to exceed these goals wherever feasible.

(b) Each department and agency with procurement authority shall:

(i) develop a long-term comprehensive plan to implement the requirements of section 2(a) of this order and submit this plan to the Director of the Office of Management and Budget (OMB) within 90 days of the date of this order. The Director of OMB shall review each plan and report to the President on the sufficiency of each plan to carry out the terms of this order; and

(ii) annually, by April 30 each year, assess its efforts and the results of those efforts to increase utilization of 8(a)s, SDBs, and MBEs as both prime contractors and subcontractors and report on those efforts to the President through the Director of OMB, who shall review the evaluations made of the agency assessments by the Small Business Administration.

Sec. 3. Responsibilities of the Small Business Administration. The Administrator of the SBA shall:

(a) evaluate on a semi-annual basis, using the Federal Procurement Data System (FPDS), the achievement of government-wide prime and subcontract goals and the actual prime and subcontract awards to 8(a)s and SDBs for each department and agency. The OMB shall review SBA's evaluation;

(b) ensure that Procurement Center Representatives receive adequate training regarding the section 8(a) and SDB programs and that they consistently and aggressively seek opportunities for maximizing the use of 8(a)s and SDBs in department and agency procurements; and

(c) ensure that each department and agency's small and disadvantaged business procurement goals as well as the amount of procurement of each department and agency with 8(a)s, SDBs, and MBEs is publicly available in an easily accessible and understandable format such as through publication on the Internet.

Sec. 4. Federal Advertising. Each department or agency that contracts with businesses to develop advertising for the department or agency or to broadcast Federal advertising shall take an aggressive role in ensuring substantial minority-owned entities' participation, including 8(a), SDB, and MBE, in Federal advertising-related procurements. Each department and agency shall ensure that all creation, placement, and transmission of Federal advertising is fully reflective of the Nation's diversity. To achieve this diversity, special attention shall be given to ensure placement in publications and television and radio stations that reach specific ethnic and racial audiences. Each department and agency shall ensure that payment for Federal advertising is commensurate with fair market rates in the relevant market. Each department and agency shall structure advertising contracts as commercial acquisitions consistent with part 12 of the Federal Acquisition Regulation processes and paperwork to enhance participation by 8(a)s, SDBs, and MBEs.

Sec. 5. Information Technology. Each department and agency shall aggressively seek to ensure substantial 8(a), SDB, and MBE participation in procurements for and related to information technology, including procurements in the telecommunications industry. In so doing, the Chief Information Officer in each department and agency shall coordinate with procurement officials to implement this section.

Sec. 6. General Services Administration Schedules. The SBA and the General Services Administration (GSA) shall act promptly to expand inclusion of 8(a)s and SDBs on GSA Schedules, and provide greater opportunities for 8(a) and SDB participation in orders under such schedules. The GSA should ensure that procurement and program officials at all levels that use GSA Schedules aggressively seek to utilize the Schedule contracts of 8(a)s and SDBs. The GSA shall allow agencies ordering from designated 8(a) firms under the Multiple Award Schedule to count those orders toward their 8(a) procurement goals.

Sec. 7. Bundling Contracts. To the extent permitted by law, departments and agencies must submit to the SBA for review any contracts that are proposed to be bundled. The determination of the SBA with regard to the appropriateness of bundling in each instance must be carefully reviewed by the department or agency head, or his or her designee, and must be given due consideration. If there is an unresolvable conflict, then the SBA or the department or agency can seek assistance from the OMB.

Sec. 8. Awards Program. The Secretary of Commerce and the Administrator of the SBA shall jointly undertake a feasibility study to determine the appropriateness of an awards program for executive departments and agencies who best exemplify the letter and intent of this order in increasing opportunities for 8(a)s, SDBs, and MBEs in Federal procurement. Such study shall be presented to the President within 90 days of the date of this order.

Sec. 9. Applicability. Independent agencies are requested to comply with the provisions of this order.

Sec. 10. Administration, Enforcement, and Judicial Review.

(a) This order shall be carried out to the extent permitted by law and consistent with the Administration's priorities and appropriations.

(b) This order is not intended and should not be construed to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or its employees.

William J. Clinton.      

Delegation of Authority To Establish Annual Goals for Participation of Small Business Concerns in Procurement Contracts

Memorandum of the President of the United States, June 6, 1990, 55 F.R. 27453–27455, provided:

Memorandum for the Director of the Office of Management and Budget

By the authority vested in me as President by the Constitution and laws of the United States, including section 15(g) of the Small Business Act, as amended [subsec. (g) of this section], and section 301 of Title 3 of the United States Code, I hereby delegate to the Director of the Office of Management and Budget the authority vested in the President to establish the annual goals required by Section 502 of the Business Opportunity Development Reform Act of 1988 (P.L. 100–656) [amending this section].

You are authorized and directed to publish this memorandum in the Federal Register.

George Bush.      

Continued Commitment to Small, Small Disadvantaged, and Small Women-Owned Businesses in Federal Procurement

Memorandum of President of the United States, Oct. 13, 1994, 59 F.R. 52397, provided:

Memorandum for the Heads of Executive Departments and Agencies [and] the President's Management Council

It is the policy of the Federal Government that a fair proportion of its contracts be placed with small, small disadvantaged, and small women-owned businesses. Such businesses should also have the maximum practicable opportunity to participate as subcontractors in contracts awarded by the Federal Government consistent with efficient contract performance. I am committed to the continuation of this policy. Therefore, I ask that you encourage the use of various tools, including set-asides, price preferences, and section 8(a) of the Small Business Act (15 U.S.C. 637(a)), as necessary to achieve this policy objective.

The Federal Acquisition Streamlining Act of 1994 [Pub. L. 103–355, see Short Title of 1994 Act note set out under section 101 of Title 41, Public Contracts] authorizes civilian agencies to utilize set-aside procurements for small disadvantaged businesses. The Act also, for the first time, establishes goals for contracting with small women-owned businesses. These provisions, along with others in the Act, will provide greater access to Federal Government business opportunities for small, small disadvantaged, and small women-owned businesses. Department and agency heads should ensure that efforts to streamline acquisition procedures encourage the participation of these businesses in Federal procurements.

This memorandum shall be published in the Federal Register.

William J. Clinton.