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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS
Subtitle C--Industrial Base Matters
P. L. 113-291
Explanatory Statement, 12/4/14, H8671
SEC. 821. TEMPORARY EXTENSION OF AND AMENDMENTS TO TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SMALL BUSINESS SUBCONTRACTING PLANS.
(a) Extension- Subsection (e) of section 834 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is amended by striking `December 31, 2014' and inserting `December 31, 2017'.
(b) Additional Requirements for Comprehensive Subcontracting Plans- Subsection (b) of section 834 of such Act is amended--
(1) in paragraph (1), by striking `paragraph (3)' and inserting `paragraph (4)';
(2) by redesignating paragraph (3) as paragraph (4), and in that paragraph by striking `$5,000,000' and inserting `$100,000,000'; and
(3) by inserting after paragraph (2) the following new paragraph (3):
`(3) Each comprehensive subcontracting plan of a contractor shall require that the contractor report to the Secretary of Defense on a semi-annual basis the following information:
`(A) The amount of first-tier subcontract dollars awarded during the six-month period covered by the report to covered small business concerns, with the information set forth separately--
`(i) by North American Industrial Classification System code;
`(ii) by major defense acquisition program, as defined in section 2430(a) of title 10, United States Code;
`(iii) by contract, if the contract is for the maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization, or modification of supplies, systems, or equipment and the total value of the contract, including options, exceeds $100,000,000; and
`(iv) by military department.
`(B) The total number of subcontracts active under the test program during the six-month period covered by the report that would have otherwise required a subcontracting plan under paragraph (4) or (5) of section 8(d) of the Small Business Act (15 U.S.C. 637(d)).
`(C) Costs incurred in negotiating, complying with, and reporting on comprehensive subcontracting plans.
`(D) Costs avoided by adoption of a comprehensive subcontracting plan.'.
(c) Additional Consequence for Failure to Make Good Faith Effort to Comply-
(1) AMENDMENTS- Subsection (d) of section 834 of such Act is amended--
(A) by striking `Company-wide' and inserting `Comprehensive' in the heading;
(B) by striking `company-wide' and inserting `comprehensive subcontracting'; and
(C) by adding at the end the following: `In addition, any such failure shall be a factor considered as part of the evaluation of past performance of an offeror.'.
(2) REPEAL OF SUSPENSION OF SUBSECTION (D)- Section 402 of Public Law 101-574 (104 Stat. 2832; 15 U.S.C. 637 note) is repealed.
(d) Eligibility Requirement- Subsection (d) of section 834 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is further amended--
(1) by inserting `(1)' before `A contractor that'; and
(2) by adding at the end the following new paragraph:
`(2) Effective in fiscal year 2016 and each fiscal year thereafter in which the test program is in effect, the Secretary of Defense may not negotiate a comprehensive subcontracting plan for a fiscal year with any contractor with which such a plan was negotiated in the prior fiscal year if the Secretary determines that the contractor did not meet the subcontracting goals negotiated in the plan for the prior fiscal year.'.
(e) Report by Comptroller General- Subsection (f) of section 834 of such Act is amended to read as follows:
`(f) Report- Not later than September 30, 2015, the Comptroller General of the United States shall submit a report on the results of the test program to the Committees on Armed Services and on Small Business of the House of Representatives and the Committees on Armed Services and on Small Business and Entrepreneurship of the Senate.'.
(f) Additional Definitions-
(1) COVERED SMALL BUSINESS CONCERN- Subsection (g) of section 834 of such Act is amended to read as follows:
`(g) Definitions- In this section, the term `covered small business concern' includes each of the following:
`(1) A small business concern, as that term is defined under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).
`(2) A small business concern owned and controlled by veterans, as that term is defined in section 3(q)(3) of such Act (15 U.S.C. 632(q)(3)).
`(3) A small business concern owned and controlled by service-disabled veterans, as that term is defined in section 3(q)(2) of such Act (15 U.S.C. 632(q)(2)).
`(4) A qualified HUBZone small business concern, as that term is defined under section 3(p)(5) of such Act (15 U.S.C. 632(p)(5)).
`(5) A small business concern owned and controlled by socially and economically disadvantaged individuals, as that term is defined in section 8(d)(3)(C) of such Act (15 U.S.C. 637(d)(3)(C)).
`(6) A small business concern owned and controlled by women, as that term is defined under section 3(n) of such Act (15 U.S.C. 632(n)).'.
(2) CONFORMING AMENDMENT- Subsection (a)(1) of section 834 of such Act is amended by striking `small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals' and inserting `covered small business concerns'.
Temporary extension of and amendments to
test program for negotiation of comprehensive small business
subcontracting plans (sec. 821)
The House bill contained a provision (sec. 811) that would modify and extend the test program for negotiation of comprehensive small business subcontracting plans authorized by section 402 of the Small Business Administration Reauthorization and Amendments Act of 1990 (Public Law 101- 574).
The Senate committee-reported bill contained a similar provision (sec. 823).
The agreement includes the House provision with a technical amendment.
H. Rpt 113-446 to accompany H. R. 4435
Section 811--Three-Year Extension of and Amendments to Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans
This section would modify and extend the test program for negotiation of comprehensive small business subcontracting plans authorized by section 402 of the Small Business Administration Reauthorization and Amendments Act of 1990 (Public Law 101-574) and last amended by section 866 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81).
The committee notes that the test program was authorized to allow contracting activities in the military departments and the defense agencies to undertake one or more demonstration projects to determine whether the negotiation and administration of comprehensive subcontracting plans would reduce administrative burdens on contracts while enhancing opportunities for small business concerns. However, after nearly 24 years since the original authorization of the program, the test program has yet to provide evidence that it meets the original stated goal of the program in the committee report (H. Rept. 101-331) accompanying the National Defense Authorization Act for Fiscal Years 1990 and 1991: "to be more advantageous to both the government and to small and small disadvantaged businesses," and "to expand available participation in a broader range of subcontracting opportunities, especially in the technical area."
Therefore, this section would include additional requirements to ensure that the test program collects the data necessary to assess its effectiveness and to standardize its requirements with other subcontracting programs: (1) The test program would be expanded to apply to all of the small business subcontracting goals, as the committee believes that the program was not intended to ignore additional subcontracting programs of the Federal Government; (2) The threshold for participation in the program would be raised from $5.0 million to $100.0 million because the test program was intended to apply to contractors with a substantial presence in defense acquisition, and all current participants exceed this threshold; (3) Companies participating in the test program would be required to report data by North American Industrial Classification System codes, by major defense acquisition program, by military department, and by service contract exceeding $100.0 million; and (4) The requirements for data on the costs avoided as a result of the program would be expanded.
As with other subcontracting programs required by the Small Business Act, this section would stipulate that a failure of a participant to make a good-faith effort to comply with the program will be used as a factor in past performance evaluations. Lastly, this section would require the Secretary of Defense to report to the Committees on Armed Services of the Senate and the House of Representatives, the Committee on Small Business of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate, not later than September 20, 2015, with an assessment of the program in order to inform any future decision to reauthorize the program.
S. Rept. 113-176 to accompany S. 2410
Conditional temporary extension of comprehensive subcontracting plans (sec. 823)
The committee recommends a provision that extends the comprehensive subcontracting plan test program to September 30, 2015, if the Under Secretary of Defense for Acquisitions, Technology and Logistics cannot transition all active participants to individual small business subcontracting plans that meet all relevant requirements contained in the Federal Acquisition Regulation before December 31, 2014.
Participants transitioned shall also enhance subcontracting opportunities for small business concerns.
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