Laws: Cases and Codes : U.S. Code : Title 15 : Section 644


   
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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