[House Report 110-407]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-407
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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3867) TO UPDATE AND
EXPAND THE PROCUREMENT PROGRAMS OF THE SMALL BUSINESS ADMINISTRATION,
AND FOR OTHER PURPOSES
_______
October 24, 2007.--Referred to the House Calendar and ordered to be
printed
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Mr. Cardoza, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 773]
The Committee on Rules, having had under consideration
House Resolution 773, by a voice vote, report the same to the
House with the recommendation that the resolution be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 3867, the
``Small Business Contracting Improvements Act,'' under a
structured rule. The resolution provides one hour of general
debate equally divided and controlled by the chairman and
ranking minority member of the Committee on Small Business.
The resolution waives all points of order against
consideration of the bill except those arising under clause 9
or 10 of rule XXI. The resolution provides that the bill shall
be considered as read. The resolution waives all points of
order against provisions of the bill. This waiver does not
affect the point of order available under clause 9 of rule XXI
(regarding earmark disclosure).
The resolution makes in order only those amendments printed
in this report. Amendments so printed may be offered only in
the order printed in this report, may be offered only by a
Member designated in this report, shall be considered as read,
shall be debatable for the time specified in this report
equally divided and controlled by a proponent and an opponent,
shall not be subject to amendment, and shall not be subject to
a demand for division of the question in the House or in the
Committee of the Whole. The resolution waives all points of
order against such amendments except those arising under clause
9 or 10 of rule XXI.
The resolution provides one motion to recommit the bill
with or without instructions. Finally, notwithstanding the
operation of the previous question, the Chair may postpone
further consideration of the bill to a time designated by the
Speaker.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the bill (except for those arising under clause 9 or 10 of rule
XXI) includes a waiver of clause 4(a) of rule XIII
(availability of committee report). Although the rule waives
all points of order against provisions of the bill, the
Committee is not aware of any points of order against the bill.
The waiver of all points of order against provisions of the
bill is prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 363
Date: October 24, 2007.
Measure: H.R. 3867.
Motion by: Mr. Hastings (WA).
Summary of motion: To grant an open rule.
Results: Defeated 2-7.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Castor--Nay; Arcuri--Nay; Hastings
(WA)--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 364
Date: October 24, 2007.
Measure: H.R. 3867.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. King (IA), which would strike
section 101(b).
Results: Defeated 2-7.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Castor--Nay; Arcuri--Nay; Hastings
(WA)--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 365
Date: October 24, 2007.
Measure: H.R. 3867.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Buchanan (FL), which would
state that if there are two or more eligible HUBZone firms and
one is controlled by a veteran (not service-disabled), then,
everything being equal, the veteran-owned HUBZone firm should
get the contract.
Results: Defeated 2-7.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Castor--Nay; Arcuri--Nay; Hastings
(WA)--Yea; Sessions--Yea; Slaughter--Nay.
SUMMARY OF AMENDMENTS MADE IN ORDER
(Summaries derived from information provided by sponsors.)
1. Velazquez (NY): This amendment would establish that
those veterans who are severely disabled shall be given special
consideration as agencies implement contracting regulations. It
would also set forth certain standards for business integrity
that are required for participation in federal contracting
programs. Additionally, the amendment would clarify the
implementation of the women's procurement program. (10 minutes)
2. Akin (MO): The amendment would require that the
Administrator of the Small Business Administration (SBA)
conduct a study to determine what changes would be required to
provide greater Federal contracting assistance to participants
in the program created by section 8(a) of the Small Business
Act that have less equity in their business concerns than other
participants in the program. The study would be reported no
later than six months after the date of enactment of this Act
and the Administrator would report the details of the study to
the Senate Small Business Committee and the House Small
Business Committee. (10 minutes)
3. Welch (VT)/Braley (IA): The amendment would require the
Administrator of the Small Business Administration to carry out
a study on the effectiveness of the HUBZone program in reaching
rural areas. (10 minutes)
4. Mica (FL): This amendment would clarify that the small
business set-aside provisions of the Small Business Act (15
U.S.C. 644) should apply to federal contracts not excluding
Federal Supply Schedule and Multiple Award Schedule holders.
(10 minutes)
5. Mica (FL): The amendment would state that it is the
sense of the House that small business set-asides should not be
excluded from any acquisitions under the GSA's Federal Supply
Schedule. (10 minutes)
6. Moran, James (VA): The amendment would require that the
Administrator of the Small Business Administration conduct a
study to determine, with respect to small business contracts,
whether incumbent Federal contractors are submitting frivolous
protests to extend the length of current contracts before
protest decisions are resolved. The Administrator also would
develop recommendations to discourage frivolous protests. (10
minutes)
7. Baird (WA): This amendment would direct the
Administrator of the Small Business Administration to examine
the lists of groups the members of which are presumed to be
socially disadvantaged under the Small Disadvantaged Business
program under section 8(a) of the Small Business Act and to
consider whether the list should be updated to include
additional groups. (10 minutes)
8. Brown-Waite (FL): The amendment would create a liaison
within the Small Business Administration whose duty, in
consultation with the Assistant Secretary of the Department of
Homeland Security for U.S. Immigration and Customs Enforcement,
is to ensure that section 2(i) of the Small Business Act,
regarding assistance to individuals not lawfully within the
United States, is carried out. (10 minutes)
9. Gillibrand (NY): The amendment provides that any
employer found, based on a determination by the Department of
Homeland Security or the Attorney General to have engaged in a
pattern or practice of hiring, recruiting or referring for a
fee, for employment in the United States an alien knowing the
person is an unauthorized alien shall be subject to debarment
from the receipt of future Federal contracts. (10 minutes)
10. Lampson (TX): The amendment would prohibit the use of
any funds for first-class or business-class airline travel by
agency employees when carrying out the provisions of H.R. 3867.
The amendment includes exceptions provided by the Code of
Federal Regulations 301-10.122 to 10.124, as applicable to
federal agency employees. (10 minutes)
TEXT OF AMENDMENTS MADE IN ORDER
1. An Amendment To Be Offered by Representative Velazquez of New York,
or Her Designee, Debatable for 10 Minutes
At the end of title I, add the following:
SEC. 104. PRIORITY FOR SEVERELY DISABLED VETERANS.
In developing regulations to implement section 101, the
Administrator shall give a priority to those certified service-
disabled veterans that are severely disabled.
Amend section 201 to read as follows:
SEC. 201. REQUIRING BUSINESS INTEGRITY OF SMALL BUSINESS CONCERNS.
Section 8 of the Small Business Act (15 U.S.C. 637) is
amended by adding at the end the following new subsection:
``(o) Requirement of Business Integrity.--No small business
concern may receive any benefit under section 8(a), 8(m),
31(b)(2)(A), 31(b)(2)(B), 36(a), or 36(b) unless the
Administrator first performs a background check on the owners
and officers of such small business concern and determines that
the owners and officers do not lack business integrity. For
purposes of such a determination, previous criminal convictions
will create a presumption of a lack of business integrity.''.
At the end of title II, add the following (and amend the
table of contents accordingly):
SEC. 205. EXPANDING PROTEST AUTHORIZATION.
Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is
amended by adding at the end the following new paragraphs:
``(22) Rules similar to the rules of paragraphs (5)
and (6) of subsection (m) shall apply for purposes of
this subsection.
``(23) For the purposes of challenging the
eligibility of a small business concern to receive an
award under section 8(a), 8(m), 31(b)(2)(A),
31(b)(2)(B), 36(a), or 36(b), the term `interested
party' shall include any small business concern.''.
In section 8(m)(4) of the Small Business Act as proposed to
be added by section 301, strike subparagraph (B) and insert the
following:
``(B) Underrepresented industries.--Until
such time as the Administrator completes the
identification of industries required by
subparagraph (A), the following industries, as
identified by their 2-Digit North American
Industry Classification System Code, are deemed
underrepresented by women in Federal
contracting: 11 (Forestry), 21 (Mining), 22
(Utilities), 23 (Construction), 31
(Manufacturing), 32 (Manufacturing), 33
(Manufacturing), 42 (Wholesale Trade), 44
(Retail Trade), 45 (Retail Trade), 48
(Transportation), 49 (Transportation), 51
(Information), 52 (Finance and Insurance), 53
(Real Estate and Rental and Leasing), 54
(Professional, Scientific, and Technical
Services), 56 (Administrative and Support,
Waste Management, and Remediation Services), 61
(Education Services), 62 (Health Care and
Social Assistance), 71 (Arts, Entertainment,
and Recreation), 72 (Accommodation and Food
Services), and 81 (Other Services).''.
Strike sections 403 and 504.
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2. An Amendment To Be Offered by Representative Akin of Missouri, or
His Designee, Debatable for 10 Minutes
At the end of title V, add the following new section (and
amend the table of contents accordingly):
SEC. 505. ASSISTANCE STUDY.
(a) Study.--The Administrator of the Small Business
Administration shall conduct a study to determine what changes
would be required to provide greater Federal contracting
assistance to participants in the program created by section
8(a) of the Small Business Act that have less equity in their
business concerns than other participants in the program.
(b) Report.--Not later than 6 months after the date of the
enactment of this Act, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives a report detailing the results of the study
described in subsection (a).
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3. An Amendment To Be Offered by Representative Welch of Vermont, or
His Designee, Debatable for 10 Minutes
Title IV, add at the end the following (and amend the table
of contents accordingly):
SEC. __. STUDY ON EFFECTIVENESS OF HUBZONE PROGRAM IN REACHING RURAL
AREAS.
The Administrator of the Small Business Administration shall
carry out a study on the effectiveness of the HUBZone program
in reaching rural areas to determine whether there are needy
areas that do not qualify under the program and whether there
are areas that currently qualify under the program that are
inconsistent with the program's original intent. Not later than
6 months after the date of the enactment of this Act, the
Administrator shall submit to Congress a report containing the
results of the study and any recommendations that the
Administrator considers appropriate for alternative ways to
evaluate eligibility for HUBZones in rural areas.
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4. An Amendment To Be Offered by Representative Mica of Florida, or His
Designee, Debatable for 10 Minutes
Add at the end of title VI the following (and amend the table
of contents accordingly):
SEC. ___. CLARIFICATION OF APPLICABILITY OF SMALL BUSINESS SET-ASIDES.
Section 15 of the Small Business Act (15 U.S.C. 644) is
amended by adding at the end the following:
``(q) Clarification of Applicability.--For purposes of any
small business set-asides authorized under this section, the
term `contract' shall not exclude any acquisition or order
under any Federal Supply Schedule or Multiple Award
Schedule.''.
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5. An Amendment To Be Offered by Representative Mica of Florida, or His
Designee, Debatable for 10 Minutes
At the end of title VI, add the following (and amend the
table of contents accordingly):
SEC. ___. SENSE OF THE HOUSE OF REPRESENTATIVES ON ACQUISITIONS
CONDUCTED UNDER THE GENERAL SERVICES
ADMINISTRATION'S FEDERAL SUPPLY SCHEDULE.
(a) Findings.--Congress finds the following:
(1) The Small Business Act was adopted by Congress to
ensure that small business concerns receive fair access
to, and a fair share of, Federal government contracts
and subcontracts.
(2) There is a disagreement between the General
Services Administration and the Small Business
Administration on whether the Small Business Act
applies to the acquisitions under the General Services
Administration's Federal Supply Schedule, which account
for over $30,000,000,000 in procurement dollars awarded
each year.
(3) As demonstrated in proceedings of the White House
Acquisition Advisory Panel, small businesses hold 79.6
percent of contracts under the Federal Supply Schedule,
but receive only 37.1 percent of dollars awarded under
the Federal Supply Schedule, and this disparity has a
significant impact on the competitive viability of
small business concerns in government contracting.
(b) Sense of the House.--Therefore, it is the sense of the
House of Representatives that small business set-asides should
not be excluded from any acquisitions under the General
Services Administration's Federal Supply Schedule.
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6. An Amendment To Be Offered by Representative Moran of Virginia, or
His Designee, Debatable for 10 Minutes
Title VI, add at the end the following (and amend the table
of contents accordingly):
SEC. __. STUDY ON FRIVOLOUS PROTESTS.
(a) Study.--The Administrator of the Small Business
Administration shall conduct a study to determine, with respect
to small business contracts, whether incumbent Federal
contractors submit frivolous protests to extend the length of
current contracts before protest decisions are resolved.
(b) Contents.--In conducting the study, the Administrator
shall--
(1) determine the number of Government Accountability
Office bid protests and Small Business Administration
size protests filed by incumbent Federal contractors
with respect to small business contracts, the number of
incumbent contracts extended because of the protest,
the extra costs of extending incumbent contracts during
the protest, and the final rulings of these protests;
(2) determine the financial impact of protests filed
by incumbent Federal contractors on small businesses
that were originally awarded the protested small
business contracts, including costs associated with
defending the protests and costs incurred by Federal
agencies;
(3) identify the incumbent Federal contractors that
file the most unsuccessful protests on small business
contracts; and
(4) develop recommendations--
(A) to ease any financial burden on small
businesses during the protest of small business
contracts; and
(B) to discourage frivolous protests by
incumbent Federal contractors on small business
contracts.
(c) Consultation.--In conducting the study, the Administrator
shall consult with the Government Accountability Office, any
necessary Federal agencies, and the Office of Federal
Procurement Policy.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, the Administrator shall submit to
Congress a report on the results of the study, together with
the recommendations developed under subsection (b)(4).
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7. An Amendment To Be Offered by Representative Baird of Washington, or
His Designee, Debatable for 10 Minutes
At the end of title V, insert the following new section (and
amend the table of contents accordingly):
SEC. 505. EXAMINATION OF LIST OF GROUPS THE MEMBERS OF WHICH ARE
PRESUMED TO BE SOCIALLY DISADVANTAGED FOR PURPOSES
OF SMALL DISADVANTAGED BUSINESS PROGRAM.
The Administrator of the Small Business Administration shall
examine the list of groups the members of which are presumed to
be socially disadvantaged for purposes of the Small
Disadvantaged Business program under section 8(a) of the Small
Business Act and shall consider whether the list should be
updated to include additional groups. Not later than 6 months
after the date of the enactment of this Act, the Administrator
shall submit to Congress a report on the results of the
examination.
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8. An Amendment To Be Offered by Representative Brown-Waite of Florida,
or Her Designee, Debatable for 10 Minutes
At the end of title VI, add the following new section (and
amend the table of contents accordingly):
SEC. 602. SMALL BUSINESS ADMINISTRATION LIAISON.
(a) Establishment.--The Administrator of the Small Business
Administration shall create a liaison position whose duty it is
to ensure that section 2(i) of the Small Business Act is
carried out.
(b) Functions.--In carrying out the duty described in
subsection (a), the liaison shall consult with the Assistant
Secretary of the Department of Homeland Security for United
States Immigration and Customs Enforcement.
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9. An Amendment To Be Offered by Representative Gillibrand of New York,
or Her Designee, Debatable for 10 Minutes
At the end of title II, add the following (and amend the
table of contents accordingly):
SEC. ___. PROHIBITION ON CONTRACT AWARDS TO CONTRACTORS IN VIOLATION OF
IMMIGRATION LAWS.
Any employer found, based on a determination by the Secretary
of Homeland Security or the Attorney General to have engaged in
a pattern or practice of hiring, recruiting or referring for a
fee, for employment in the United States an alien knowing the
person is an unauthorized alien shall be subject to debarment
from the receipt of future Federal contracts under this Act.
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10. An Amendment To Be Offered by Representative Lampson of Texas, or
His Designee, Debatable for 10 Minutes
At the end of title VI, add the following:
SEC. __. PROHIBITION ON BUSINESS-CLASS OR FIRST-CLASS AIRLINE TRAVEL.
In carrying out the provisions of the Small Business
Contracting Program Improvements Act, the Small Business
Administrator or any employee may not purchase business-class
or first-class airline travel in contravention of sections 301-
10.122 through 301.10-124 of title 41, Code of Federal
Regulations.