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

Subtitle E—Small Business Matters

P. L. 116-

House Conference Report   116-617

(1) In general.--Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following new subsection:

``(ff) Covered Territory Business.--In this Act, the term `covered territory business' means a small business concern that has its principal office located in one of the following:

``(1) The United States Virgin Islands.

``(2) American Samoa.

``(3) Guam.

``(4) The Northern Mariana Islands.''.

(2) Conforming amendment.--Section 15(x) of the Small Business Act (15 U.S.C. 644(x)) is amended by striking paragraph (3).

(b) Priority for Surplus Property Transfers.--Section 7(j)(13)(F)(iii) of the Small Business Act (15 U.S.C. 636(j)(13)(F)(iii)) is amended--

(1) in subclause (I), by striking ``means'' and all that follows through the period at the end and inserting the following: ``means--

``(aa) in the case of a Puerto Rico business, the period beginning on August 13, 2018, and ending on the date on which the Oversight Board established under section 2121 of title 48 terminates; and

``(bb) in the case of a covered territory business, the period beginning on the date of the enactment of this item and ending on the date that is 4 years after such date of enactment.''; and

(2) in subclause (II)--

(A) by inserting ``or a covered territory business'' after ``a Puerto Rico business''; and

(B) by striking ``the Puerto Rico business'' each place it appears and inserting ``either such business''.

(c) Contracting Incentives for Protege Firms That Are Covered Territory Businesses.--

(1) Contracting incentives.--Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is amended by adding at the end the following new paragraph:

``(4) Covered territory businesses.--During the period beginning on the date of the enactment of this paragraph and ending on the date that is 4 years after
such date of enactment, the Administrator shall identify potential incentives to a covered territory mentor that awards a subcontract to its covered territory protege, including--

``(A) positive consideration in any past performance evaluation of the covered territory mentor; and

``(B) the application of costs incurred for providing training to such covered territory protege to the subcontracting plan (as required under paragraph (4) or (5) of section 8(d)) of the covered territory mentor.''.

(2) Mentor-protege relationships.--Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by striking ``relationships are'' and all that follows through the period at the end and inserting the following:

``relationships--

``(i) are between a covered protege and a covered mentor; or

``(ii) are between a covered territory protege and a covered
territory mentor.''.

(3) Definitions.--Section 45(d) of the Small Business Act (15 U.S.C. 657r(d)) is amended by adding at the end the following new paragraphs:

``(6) Covered territory mentor.--The term `covered territory mentor' means a mentor that enters into an agreement under this Act, or under any mentor-protege program approved under subsection (b)(1), with a covered territory protege.

``(7) Covered territory protege.--The term `covered territory protege' means a protege of a covered territory mentor that is a covered territory business.''.

The House bill contained a provision (sec. 838) that would provide assistance in securing opportunities in the Federal marketplace to small businesses located in territories of the United States, as recommended by the Congressional Task Force on Economic Growth in Puerto Rico.

The Senate amendment contained no similar provision.

The Senate recedes.