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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F—Industrial Base Matters

P. L. 114-

House Conference Report. 114-270

(a) Surety bond requirements.—Chapter 93 of subtitle VI of title 31, United States Code, is amended—

(1) by adding at the end the following:

Ҥ 9310. Individual sureties

“If another applicable Federal law or regulation permits the acceptance of a bond from a surety that is not subject to sections 9305 and 9306 and is based on a pledge of assets by the surety, the assets pledged by such surety shall—

“(1) consist of eligible obligations described under section 9303(a); and

“(2) be submitted to the official of the Government required to approve or accept the bond, who shall deposit the obligations as described under section 9303(b).”; and

(2) in the table of contents for such chapter, by adding at the end the following:

“9310. Individual sureties.”.

(b) Amount of surety bond guarantee from Small Business Administration.—Section 411(c)(1) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(c)(1)) is amended by striking “70” and inserting “90”.

(c) Effective date.—The amendments made by this section shall take effect 1 year after the date of the enactment of this Act.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would retain the provision addressing the SBA program and the provision governing the use of individual sureties. However, each provision will be subject to a 1-year delay in implementation to allow for the necessary rulemaking. The conference agreement does not retain the provisions amending the SBA surety bond program, nor does it provide for a study by the Comptroller General.

The conferees believe the compromise will allow for greater protection of federal agencies and subcontractors protected by surety bonds, while allowing the SBA more time to document the effects of changes to the surety bond program made by section 1695 of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112-239).

House Report 114-201 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 839--Surety Bond Requirements and Amount of Guarantee

This section would amend chapter 93 of subtitle VI of title 31, United States Code, to increase the amount of surety bond guarantees from the Small Business Administration from 70 percent to 90 percent. It would also require the Comptroller General of the United States to study the surety bond program and to examine, among other issues, the impact of this amendment on such program.