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U.S. Code as of:
01/19/04
Section 644. Awards or contracts
(a) Determination
To effectuate the purposes of this chapter, small-business
concerns within the meaning of this chapter shall receive any award
or contract or any part thereof, and be awarded any contract for
the sale of Government property, as to which it is determined by
the Administration and the contracting procurement or disposal
agency (1) to be in the interest of maintaining or mobilizing the
Nation's full productive capacity, (2) to be in the interest of war
or national defense programs, (3) to be in the interest of assuring
that a fair proportion of the total purchases and contracts for
property and services for the Government in each industry category
are placed with small-business concerns, or (4) to be in the
interest of assuring that a fair proportion of the total sales of
Government property be made to small-business concerns; but nothing
contained in this chapter shall be construed to change any
preferences or priorities established by law with respect to the
sale of electrical power or other property by the Government or any
agency thereof. These determinations may be made for individual
awards or contracts or for classes of awards or contracts. 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, or the solicitation involves an unnecessary or
unjustified bundling of contract requirements, as determined by the
Administration, 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, (4) why construction cannot be
procured as separate discrete projects, or (5) why the agency has
determined that the bundled contract (as defined in section 632(o)
of this title) is necessary and justified. 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.
Whenever the Administration and the contracting procurement agency
fail to agree, the matter shall be submitted for determination to
the Secretary or the head of the appropriate department or agency
by the Administrator. For purposes of clause (3) of the first
sentence of this subsection, an industry category is a discrete
group of similar goods and services. Such groups shall be
determined by the Administration in accordance with the definition
of a "United States industry" under the North American Industry
Classification System, as established by the Office of Management
and Budget, except that the Administration shall limit such an
industry category to a greater extent than provided under such
classification codes if the Administration receives evidence
indicating that further segmentation for purposes of this paragraph
is warranted due to special capital equipment needs or special
labor or geographic requirements or to recognize a new industry. A
market for goods or services may not be segmented under the
preceding sentence due to geographic requirements unless the
Government typically designates the area where work for contracts
for such goods or services is to be performed and Government
purchases comprise the major portion of the entire domestic market
for such goods or services and, due to the fixed location of
facilities, high mobilization costs, or similar economic factors,
it is unreasonable to expect competition from business concerns
located outside of the general areas where such concerns are
located. A contract may not be awarded under this subsection if the
award of the contract would result in a cost to the awarding agency
which exceeds a fair market price.
(b) Placement of contracts by contracting procurement agency
With respect to any work to be performed the amount of which
would exceed the maximum amount of any contract for which a surety
may be guaranteed against loss under section 694b of this title,
the contracting procurement agency shall, to the extent
practicable, place contracts so as to allow more than one small
business concern to perform such work.
(c) Programs for blind and handicapped individuals
(1) As used in this subsection:
(A) The term "Committee" means the Committee for Purchase From
People Who Are Blind or Severely Disabled established under
section 46 of title 41.
(B) The term "public or private organization for the
handicapped" has the same meaning given such term in section
632(e) of this title.
(C) The term "handicapped individual" has the same meaning
given such term in section 632(f) of this title.
(2)(A) During fiscal year 1995, public or private organizations
for the handicapped shall be eligible to participate in programs
authorized under this section in an aggregate amount not to exceed
$40,000,000.
(B) None of the amounts authorized for participation by
subparagraph (A) may be placed on the procurement list maintained
by the Committee pursuant to section 47 of title 41.
(3) The Administrator shall monitor and evaluate such
participation.
(4)(A) Not later than ten days after the announcement of a
proposed award of a contract by an agency or department to a public
or private organization for the handicapped, a for-profit small
business concern that has experienced or is likely to experience
severe economic injury as the result of the proposed award may file
an appeal of the proposed award with the Administrator.
(B) If such a concern files an appeal of a proposed award under
subparagraph (A) and the Administrator, after consultation with the
Executive Director of the Committee, finds that the concern has
experienced or is likely to experience severe economic injury as
the result of the proposed award, not later than thirty days after
the filing of the appeal, the Administration shall require each
agency and department having procurement powers to take such action
as may be appropriate to alleviate economic injury sustained or
likely to be sustained by the concern.
(5) Each agency and department having procurement powers shall
report to the Office of Federal Procurement Policy each time a
contract subject to paragraph (2)(A) is entered into, and shall
include in its report the amount of the next higher bid submitted
by a for-profit small business concern. The Office of Federal
Procurement Policy shall collect data reported under the preceding
sentence through the Federal procurement data system and shall
report to the Administration which shall notify all such agencies
and departments when the maximum amount of awards authorized under
paragraph (2)(A) has been made during any fiscal year.
(6) For the purpose of this subsection, a contract may be awarded
only if at least 75 per centum of the direct labor performed on
each item being produced under the contract in the sheltered
workshop or performed in providing each type of service under the
contract by the sheltered workshop is performed by handicapped
individuals.
(7) Agencies awarding one or more contracts to such an
organization pursuant to the provisions of this subsection may use
multiyear contracts, if appropriate.
(d) Priority
For purposes of this section priority shall be given to the
awarding of contracts and the placement of subcontracts to small
business concerns which shall perform a substantial proportion of
the production on those contracts and subcontracts within areas of
concentrated unemployment or underemployment or within labor
surplus areas. Notwithstanding any other provision of law, total
labor surplus area set-asides pursuant to Defense Manpower Policy
Number 4 (32A C.F.R. Chapter 1) or any successor policy shall be
authorized if the Secretary or his designee specifically determines
that there is a reasonable expectation that offers will be obtained
from a sufficient number of eligible concerns so that awards will
be made at reasonable prices. As soon as practicable and to the
extent possible, in determining labor surplus areas, consideration
shall be given to those persons who would be available for
employment were suitable employment available. Until such
definition reflects such number, the present criteria of such
policy shall govern.
(e) Procurement strategies; contract bundling
(1) In general
To the maximum extent practicable, procurement strategies used
by the various agencies having contracting authority shall
facilitate the maximum participation of small business concerns
as prime contractors, subcontractors, and suppliers.
(2) Market research
(A) In general
Before proceeding with an acquisition strategy that could
lead to a contract containing consolidated procurement
requirements, the head of an agency shall conduct market
research to determine whether consolidation of the requirements
is necessary and justified.
(B) Factors
For purposes of subparagraph (A), consolidation of the
requirements may be determined as being necessary and justified
if, as compared to the benefits that would be derived from
contracting to meet those requirements if not consolidated, the
Federal Government would derive from the consolidation
measurably substantial benefits, including any combination of
benefits that, in combination, are measurably substantial.
Benefits described in the preceding sentence may include the
following:
(i) Cost savings.
(ii) Quality improvements.
(iii) Reduction in acquisition cycle times.
(iv) Better terms and conditions.
(v) Any other benefits.
(C) Reduction of costs not determinative
The reduction of administrative or personnel costs alone
shall not be a justification for bundling of contract
requirements unless the cost savings are expected to be
substantial in relation to the dollar value of the procurement
requirements to be consolidated.
(3) Strategy specifications
If the head of a contracting agency determines that a proposed
procurement strategy for a procurement involves a substantial
bundling of contract requirements, the proposed procurement
strategy shall -
(A) identify specifically the benefits anticipated to be
derived from the bundling of contract requirements;
(B) set forth an assessment of the specific impediments to
participation by small business concerns as prime contractors
that result from the bundling of contract requirements and
specify actions designed to maximize small business
participation as subcontractors (including suppliers) at
various tiers under the contract or contracts that are awarded
to meet the requirements; and
(C) include a specific determination that the anticipated
benefits of the proposed bundled contract justify its use.
(4) Contract teaming
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.
(f) Repealed. Pub. L. 103-355, title VII, Sec. 7101(a), Oct. 13,
1994, 108 Stat. 3367
(g) Goals for participation of small business concerns in
procurement contracts
(1) The President shall annually establish Government-wide goals
for procurement contracts awarded to small business concerns, small
business concerns owned and controlled by service disabled (!1)
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. The Government-wide goal for participation by
small business concerns shall be established at not less than 23
percent of the total value of all prime contract awards for each
fiscal year. 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.
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. The Government-wide goal for
participation by small business concerns owned and controlled by
socially and economically disadvantaged individuals shall be
established at not less than 5 percent of the total value of all
prime contract and subcontract awards for each fiscal year. 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. Notwithstanding the Government-wide
goal, each agency shall have an annual goal that presents, for that
agency, the maximum practicable opportunity 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 participate in the
performance of contracts let by such agency. The Administration and
the Administrator of the Office of Federal Procurement Policy
shall, when exercising their authority pursuant to paragraph (2),
insure that the cumulative annual prime contract goals for all
agencies meet or exceed the annual Government-wide prime contract
goal established by the President pursuant to this paragraph.
(2) The head of each Federal agency shall, after consultation
with the Administration, establish goals for the participation by
small business concerns, 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 in
procurement contracts of such agency. Goals established under this
subsection shall be jointly established by the Administration and
the head of each Federal agency and shall realistically reflect the
potential 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 to
perform such contracts and to perform subcontracts under such
contracts. Whenever the Administration and the head of any Federal
agency fail to agree on established goals, the disagreement shall
be submitted to the Administrator of the Office of Federal
Procurement Policy for final determination. 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. The head of each
Federal agency, in attempting to attain such participation, shall
consider -
(A) contracts awarded as the result of unrestricted
competition; and
(B) 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.
(h) Reports to Administration; submittal of information to Congress
(1) At the conclusion of each fiscal year, the head of each
Federal agency shall report to the Administration on the extent of
participation by small business concerns, small business concerns
owned and controlled by veterans (including 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 procurement contracts of such agency. Such
reports shall contain appropriate justifications for failure to
meet the goals established under subsection (g) of this section.
(2) The Administration shall annually compile and analyze the
reports submitted by the individual agencies pursuant to paragraph
(1) and shall submit them to the President and the Congress. The
Administration's submission to the President shall include the
following:
(A) The Government-wide goals for participation by 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 and the
performance in attaining such goals.
(B) The goals in effect for each agency and the agency's
performance in attaining such goals.
(C) An analysis of any failure to achieve the Government-wide
goals or any individual agency goals and the actions planned by
such agency (and approved by the Administration) to achieve the
goals in the succeeding fiscal year.
(D) The number and dollar value 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 through -
(i) noncompetitive negotiation,
(ii) competition restricted to small business concerns owned
and controlled by socially and economically disadvantaged
individuals,
(iii) competition restricted to small business concerns,
qualified HUBZone small business concerns, and
(iv) unrestricted competitions,
for each agency and on a Government-wide basis.
(E) The number and dollar value of 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.
(F) The number and dollar value of prime contracts and
subcontracts awarded to small business concerns owned and
controlled by women.
(3) The President shall include the information required by
paragraph (2) in each annual report to the Congress on the state of
small business prepared pursuant to section 631b(a) of this title.
(i) Small business set-asides
Nothing in this chapter or any other provision of law precludes
exclusive small business set-asides for procurements of
architectural and engineering services, research, development, test
and evaluation, and each Federal agency is authorized to develop
such set-asides to further the interests of small business in those
areas.
(j) Small business reservation
(1) Each contract for the purchase of goods and services that has
an anticipated value greater than $2,500 but not greater than
$100,000 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 are competitive with regard to the quality and delivery
of the goods or services being purchased.
(2) In carrying out paragraph (1), a contracting officer shall
consider a responsive offer timely received from an eligible small
business offeror.
(3) Nothing in paragraph (1) shall be construed as precluding an
award of a contract with a value not greater than $100,000 under
the authority of subsection (a) of section 637 of this title,
section 2323 of title 10, section 712 of the Business Opportunity
Development Reform Act of 1988 (Public Law 100-656; 15 U.S.C. 644
note), or section 7102 of the Federal Acquisition Streamlining Act
of 1994.
(k) Office of Small and Disadvantaged Business Utilization;
Director
There is hereby established in each Federal agency having
procurement powers an office to be known as the "Office of Small
and Disadvantaged Business Utilization". The management of each
such office shall be vested in an officer or employee of such
agency who shall -
(1) be known as the "Director of Small and Disadvantaged
Business Utilization" for such agency,
(2) be appointed by the head of such agency,
(3) be responsible only to, and report directly to, the head of
such agency or to the deputy of such head, except that the
director for the Office of the Secretary of Defense shall be
responsible only to, and report directly to, such Secretary or
the Secretary's designee,
(4) be responsible for the implementation and execution of the
functions and duties under this section and section 637 of this
title which relate to such agency,
(5) identify proposed solicitations that involve significant
bundling of contract requirements, and work with the agency
acquisition officials and the Administration to revise the
procurement strategies for such proposed solicitations where
appropriate to increase the probability of participation by small
businesses as prime contractors, or to facilitate small business
participation as subcontractors and suppliers, if a solicitation
for a bundled contract is to be issued;
(6) assist small business concerns to obtain payments, required
late payment interest penalties, or information regarding
payments due to such concerns from an executive agency or a
contractor, in conformity with chapter 39 of title 31 or any
other protection for contractors or subcontractors (including
suppliers) that is included in the Federal Acquisition Regulation
or any individual agency supplement to such Government-wide
regulation,
(7) have supervisory authority over personnel of such agency to
the extent that the functions and duties of such personnel relate
to functions and duties under this section and section 637 of
this title,
(8) assign a small business technical adviser to each office to
which the Administration has assigned a procurement center
representative -
(A) who shall be a full-time employee of the procuring
activity and shall be well qualified, technically trained and
familiar with the supplies or services purchased at the
activity, and
(B) whose principal duty shall be to assist the
Administration procurement center representative in his duties
and functions relating to this section and section 637 of this
title,
(9) cooperate, and consult on a regular basis, with the
Administration with respect to carrying out the functions and
duties described in paragraph (4) of this subsection, and
(10) make recommendations to contracting officers as to whether
a particular contract requirement should be awarded pursuant to
subsection (a) of this section, or section 637(a) of this title
or section 2323 of title 10. Such recommendations shall be made
with due regard to the requirements of subsection (m) of this
section, and the failure of the contracting officer to accept any
such recommendations shall be documented and included within the
appropriate contract file.
This subsection shall not apply to the Administration.
(l) Breakout procurement center representatives
(1) 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.
(2) In addition to carrying out the responsibilities assigned by
the Administration, a breakout procurement center representative is
authorized to -
(A) attend any provisioning conference or similar evaluation
session during which determinations are made as to whether
requirements are to be procured through other than full and open
competition and make recommendations with respect to such
requirements to the members of such conference or session;
(B) review, at any time, restrictions on competition previously
imposed on items through acquisition method coding or similar
procedures, and recommend to personnel of the appropriate
activity the prompt reevaluation of such limitations;
(C) review restrictions on competition arising out of
restrictions on the rights of the United States in technical
data, and, when appropriate, recommend that personnel of the
appropriate activity initiate a review of the validity of such an
asserted restriction;
(D) 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;
(E) have access to procurement records and other data of the
procurement center commensurate with the level of such
representative's approved security clearance classification;
(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.
(3) A breakout procurement center representative is authorized to
appeal the failure to act favorably on any recommendation made
pursuant to paragraph (2). Such appeal shall be filed and processed
in the same manner and subject to the same conditions and
limitations as an appeal filed by the Administrator pursuant to
subsection (a) of this section.
(4) The Administration shall assign and co-locate at least two
small business technical advisers to each major procurement center
in addition to such other advisers as may be authorized from time
to time. The sole duties of such advisers shall be to assist the
breakout procurement center representative for the center to which
such advisers are assigned in carrying out the functions described
in paragraph (2) and the representatives referred to in subsection
(k)(6) of this section.
(5)(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.
(C) The Administration shall establish personnel positions for
breakout procurement representatives and advisers assigned pursuant
to this subsection, which are classified at a grade level of the
General Schedule sufficient to attract and retain highly qualified
personnel.
(6) For purposes of this subsection, the term "major procurement
center" means a procurement center that, in the opinion of the
Administrator, purchases substantial dollar amounts of 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.
(7)(A) At such times as the Administrator deems appropriate, the
breakout procurement center representative shall conduct
familiarization sessions for contracting officers and other
appropriate personnel of the procurement center to which such
representative is assigned. Such sessions shall acquaint the
participants with the provisions of this subsection and shall
instruct them in methods designed to further the purposes of such
subsection.
(B) The breakout procurement center representative shall prepare
and personally deliver an annual briefing and report to the head of
the procurement center to which such representative is assigned.
Such briefing and report shall detail the past and planned
activities of the representative and shall contain such
recommendations for improvement in the operation of the center as
may be appropriate. The head of such center shall personally
receive such briefing and report and shall, within sixty calendar
days after receipt, respond, in writing, to each recommendation
made by such representative.
(m) Relationship to other procurement programs
(1) Each agency subject to the requirements of section 2323 of
title 10 shall, when implementing such requirements -
(A) establish policies and procedures that insure that there
will be no reduction in the number of dollar value of contracts
awarded pursuant to this section and section 637(a) of this title
in order to achieve any goal or other program objective; and
(B) assure that such requirements will not alter or change the
procurement process used to implement this section or section
637(a) of this title.
(2) All procurement center representatives (including those
referred to in subsection (k)(6) of this section), in addition to
such other duties as may be assigned by the Administrator, shall -
(A) monitor the performance of the procurement activities to
which they are assigned to ascertain the degree of compliance
with the requirements of paragraph (1);
(B) report to their immediate supervisors all instances of
noncompliance with such requirements; and
(C) increase, insofar as possible, the number and dollar value
of procurements that may be used for the programs established
under this section, section 637(a) of this title, and section
2323 of title 10.
(n) Determination of labor surplus areas
For purposes of this section, the determination of labor surplus
areas shall be made on the basis of the criteria in effect at the
time of the determination, except that any minimum population
criteria shall not exceed twenty-five thousand. Such determination,
as modified by the preceding sentence, shall be made by the
Secretary of Labor.
(o) Requirements for performance of contracts by employees of small
business concerns
(1) A concern may not be awarded a contract under subsection (a)
of this section as a small business concern unless the concern
agrees that -
(A) in the case of a contract for services (except
construction), at least 50 percent of the cost of contract
performance incurred for personnel shall be expended for
employees of the concern;
(B) in the case of a contract for procurement of supplies
(other than procurement from a regular dealer in such supplies),
the concern will perform work for at least 50 percent of the cost
of manufacturing the supplies (not including the cost of
materials).
(2) The Administrator may change the percentage under
subparagraph (A) or (B) of paragraph (1) if the Administrator
determines that such change is necessary to reflect conventional
industry practices among business concerns that are below the
numerical size standard for businesses in that industry category.
(3) The Administration shall establish, through public
rulemaking, requirements similar to those specified in paragraph
(1) to be applicable to contracts for general and specialty
construction and to contracts for any other industry category not
otherwise subject to the requirements of such paragraph. The
percentage applicable to any such requirement shall be determined
in accordance with paragraph (2).
(p) Database, analysis, and annual report with respect to bundled
contracts
(1) Bundled contract defined
In this subsection, the term "bundled contract" has the meaning
given such term in section 632(o)(1) of this title.
(2) Database
(A) (!2) In general
Not later than 180 days after December 21, 2000, the
Administrator of the Small Business Administration shall
develop and shall thereafter maintain a database containing
data and information regarding -
(i) each bundled contract awarded by a Federal agency; and
(ii) each small business concern that has been displaced as
a prime contractor as a result of the award of such a
contract.
(3) Analysis
For each bundled contract that is to be recompeted as a bundled
contract, the Administrator shall determine -
(A) the amount of savings and benefits (in accordance with
subsection (e) of this section) achieved under the bundling of
contract requirements; and
(B) whether such savings and benefits will continue to be
realized if the contract remains bundled, and whether such
savings and benefits would be greater if the procurement
requirements were divided into separate solicitations suitable
for award to small business concerns.
(4) Annual report on contract bundling
(A) In general
Not later than 1 year after December 21, 2000, and annually
in March thereafter, the Administration shall transmit a report
on contract bundling to the Committees on Small Business of the
House of Representatives and the Senate.
(B) Contents
Each report transmitted under subparagraph (A) shall include
-
(i) data on the number, arranged by industrial
classification, of small business concerns displaced as prime
contractors as a result of the award of bundled contracts by
Federal agencies; and
(ii) a description of the activities with respect to
previously bundled contracts of each Federal agency during
the preceding year, including -
(I) data on the number and total dollar amount of all
contract requirements that were bundled; and
(II) with respect to each bundled contract, data or
information on -
(aa) the justification for the bundling of contract
requirements;
(bb) the cost savings realized by bundling the contract
requirements over the life of the contract;
(cc) the extent to which maintaining the bundled status
of contract requirements is projected to result in
continued cost savings;
(dd) the extent to which the bundling of contract
requirements complied with the contracting agency's small
business subcontracting plan, including the total dollar
value awarded to small business concerns as
subcontractors and the total dollar value previously
awarded to small business concerns as prime contractors;
and
(ee) the impact of the bundling of contract
requirements on small business concerns unable to compete
as prime contractors for the consolidated requirements
and on the industries of such small business concerns,
including a description of any changes to the proportion
of any such industry that is composed of small business
concerns.
(5) Access to data
(A) Federal procurement data system
To assist in the implementation of this section, the
Administration shall have access to information collected
through the Federal Procurement Data System.
(B) Agency procurement data sources
To assist in the implementation of this section, the head of
each contracting agency shall provide, upon request of the
Administration, procurement information collected through
existing agency data collection sources.
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