Authority

15 USC 637: Additional powers
Text contains those laws in effect on July 25, 2024
From Title 15-COMMERCE AND TRADE
CHAPTER 14A-AID TO SMALL BUSINESS
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§637. Additional powers
(a) Procurement contracts; subcontracts to disadvantaged small business concerns; performance bonds;
contract negotiations; definitions; eligibility; determinations; publication; recruitment; construction
subcontracts; annual estimates; Indian tribes
(1) It shall be the duty of the Administration and it is hereby empowered, whenever it determines such action is
necessary or appropriate(A) to enter into contracts with the United States Government and any department, agency, or officer thereof
having procurement powers obligating the Administration to furnish articles, equipment, supplies, services, or
materials to the Government or to perform construction work for the Government. In any case in which the
Administration certifies to any officer of the Government having procurement powers that the Administration is
competent and responsible to perform any specific Government procurement contract to be let by any such officer,
such officer shall be authorized in his discretion to let such procurement contract to the Administration upon such
terms and conditions as may be agreed upon between the Administration and the procurement officer. Whenever the
Administration and such procurement officer 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. Not later than 5 days from the
date the Administration is notified of a procurement officer's adverse decision, the Administration may notify the
contracting officer of the intent to appeal such adverse decision, and within 15 days of such date the Administrator
shall file a written request for a reconsideration of the adverse decision with the Secretary of the department or
agency head. For the purposes of this subparagraph, a procurement officer's adverse decision includes a decision
not to make available for award pursuant to this subsection a particular procurement requirement or the failure to
agree on the terms and conditions of a contract to be awarded noncompetitively under the authority of this
subsection. Upon receipt of the notice of intent to appeal, the Secretary of the department or the agency head shall
suspend further action regarding the procurement until a written decision on the Administrator's request for
reconsideration has been issued by such Secretary or agency head, unless such officer makes a written
determination that urgent and compelling circumstances which significantly affect interests of the United States will
not permit waiting for a reconsideration of the adverse decision. If the Administrator's request for reconsideration is
denied, the Secretary of the department or agency head shall specify the reasons why the selected firm was
determined to be incapable to perform the procurement requirement, and the findings supporting such determination,
which shall be made a part of the contract file for the requirement. 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) to arrange for the performance of such procurement contracts by negotiating or otherwise letting subcontracts
to socially and economically disadvantaged small business concerns for construction work, services, or the
manufacture, supply, assembly of such articles, equipment, supplies, materials, or parts thereof, or servicing or
processing in connection therewith, or such management services as may be necessary to enable the Administration
to perform such contracts;
(C) to make an award to a small business concern owned and controlled by socially and economically
disadvantaged individuals which has completed its period of Program Participation as prescribed by section 636(j)
(15) of this title, if(i) the contract will be awarded as a result of an offer (including price) submitted in response to a published
solicitation relating to a competition conducted pursuant to subparagraph (D); and
(ii) the prospective contract awardee was a Program Participant eligible for award of the contract on the date
specified for receipt of offers contained in the contract solicitation; and

(D)(i) A contract opportunity offered for award pursuant to this subsection shall be awarded on the basis of
competition restricted to eligible Program Participants if(I) there is a reasonable expectation that at least two eligible Program Participants will submit offers and that
award can be made at a fair market price, and
(II) the anticipated award price of the contract (including options) will exceed $7,000,000 in the case of a
contract opportunity assigned a standard industrial classification code for manufacturing and $3,000,000 (including
options) in the case of all other contract opportunities.
(ii) The Associate Administrator for Minority Small Business and Capital Ownership Development, on a
nondelegable basis, is authorized to approve a request from an agency to award a contract opportunity under this
subsection on the basis of a competition restricted to eligible Program Participants even if the anticipated award
price is not expected to exceed the dollar amounts specified in clause (i)(II). Such approvals shall be granted only on
a limited basis.
(2) Notwithstanding subsections (a), (b), and (e) of section 3131 of title 40, no small business concern shall be
required to provide any amount of any bond as a condition of receiving any subcontract under this subsection if the
Administrator determines that such amount is inappropriate for such concern in performing such contract: Provided,
That the Administrator shall exercise the authority granted by the paragraph only if(A) the Administration takes such measures as it deems appropriate for the protection of persons furnishing
materials and labor to a small business receiving any benefit pursuant to this paragraph;
(B) the Administration assists, insofar as practicable, a small business receiving the benefits of this paragraph to
develop, within a reasonable period of time, such financial and other capability as may be needed to obtain such
bonds as the Administration may subsequently require for the successful completion of any program conducted
under the authority of this subsection;
(C) the Administration finds that such small business is unable to obtain the requisite bond or bonds from a surety
and that no surety is willing to issue bond or bonds subject to the guarantee provisions of Title IV of the Small
Business Investment Act of 1958 [15 U.S.C. 692 et seq.]; and
(D) the small business is determined to be a start-up concern and such concern has not been participating in any
program conducted under the authority of this subsection for a period exceeding one year.
The authority to waive bonds provided in this paragraph (2) may not be exercised after September 30, 1988.
(3)(A) Any Program Participant selected by the Administration to perform a contract to be let noncompetitively
pursuant to this subsection shall, when practicable, participate in any negotiation of the terms and conditions of such
contract.
(B)(i) For purposes of paragraph (1) a "fair market price" shall be determined by the agency offering the procurement
requirement to the Administration, in accordance with clauses (ii) and (iii).
(ii) The estimate of a current fair market price for a new procurement requirement, or a requirement that does not
have a satisfactory procurement history, shall be derived from a price or cost analysis. Such analysis may take into
account prevailing market conditions, commercial prices for similar products or services, or data obtained from any
other agency. Such analysis shall consider such cost or pricing data as may be timely submitted by the Administration.
(iii) The estimate of a current fair market price for a procurement requirement that has a satisfactory procurement
history shall be based on recent award prices adjusted to insure comparability. Such adjustments shall take into
account differences in quantities, performance times, plans, specifications, transportation costs, packaging and packing
costs, labor and materials costs, overhead costs, and any other additional costs which may be deemed appropriate.
(C) An agency offering a procurement requirement for potential award pursuant to this subsection shall, upon the
request of the Administration, promptly submit to the Administration a written statement detailing the method used by
the agency to estimate the current fair market price for such contract, identifying the information, studies, analyses, and
other data used by such agency. The agency's estimate of the current fair market price (and any supporting data
furnished to the Administration) shall not be disclosed to any potential offeror (other than the Administration).
(D) A small business concern selected by the Administration to perform or negotiate a contract to be let pursuant to
this subsection may request the Administration to protest the agency's estimate of the fair market price for such
contract pursuant to paragraph (1)(A).
(4)(A) For purposes of this section, the term "socially and economically disadvantaged small business concern"
means any small business concern which meets the requirements of subparagraph (B) and(i) which is at least 51 per centum unconditionally owned by(I) one or more socially and economically disadvantaged individuals,
(II) an economically disadvantaged Indian tribe (or a wholly owned business entity of such tribe), or
(III) an economically disadvantaged Native Hawaiian organization, or
(ii) in the case of any publicly owned business, at least 51 per centum of the stock of which is unconditionally
owned by(I) one or more socially and economically disadvantaged individuals,
(II) an economically disadvantaged Indian tribe (or a wholly owned business entity of such tribe), or

(III) an economically disadvantaged Native Hawaiian organization.
(B) A small business concern meets the requirements of this subparagraph if the management and daily business
operations of such small business concern are controlled by one or more(i) socially and economically disadvantaged individuals described in subparagraph (A)(i)(I) or subparagraph (A)(ii)
(I),
(ii) members of an economically disadvantaged Indian tribe described in subparagraph (A)(i)(II) or subparagraph
(A)(ii)(II), or
(iii) Native Hawaiian organizations described in subparagraph (A)(i)(III) or subparagraph (A)(ii)(III).
(C) Each Program Participant shall certify, on an annual basis, that it meets the requirements of this paragraph
regarding ownership and control.
(5) Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural
bias because of their identity as a member of a group without regard to their individual qualities.
(6)(A) Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete
in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to
others in the same business area who are not socially disadvantaged. In determining the degree of diminished credit
and capital opportunities the Administration shall consider, but not be limited to, the assets and net worth of such
socially disadvantaged individual. In determining the economic disadvantage of an Indian tribe, the Administration shall
consider, where available, information such as the following: the per capita income of members of the tribe excluding
judgment awards, the percentage of the local Indian population below the poverty level, and the tribe's access to
capital markets.
(B) Each Program Participant shall annually submit to the Administration(i) a personal financial statement for each disadvantaged owner;
(ii) a record of all payments made by the Program Participant to each of its disadvantaged owners or to any person
or entity affiliated with such owners; and
(iii) such other information as the Administration may deem necessary to make the determinations required by this
paragraph.
(C)(i) Whenever, on the basis of information provided by a Program Participant pursuant to subparagraph (B) or
otherwise, the Administration has reason to believe that the standards to establish economic disadvantage pursuant to
subparagraph (A) have not been met, the Administration shall conduct a review to determine whether such Program
Participant and its disadvantaged owners continue to be impaired in their ability to compete in the free enterprise
system due to diminished capital and credit opportunities when compared to other concerns in the same business
area, which are not socially disadvantaged.
(ii) If the Administration determines, pursuant to such review, that a Program Participant and its disadvantaged
owners are no longer economically disadvantaged for the purpose of receiving assistance under this subsection, the
Program Participant shall be graduated pursuant to section 636(j)(10)(G) of this title subject to the right to a hearing as
provided for under paragraph (9).
(D)(i) Whenever, on the basis of information provided by a Program Participant pursuant to subparagraph (B) or
otherwise, the Administration has reason to believe that the amount of funds or other assets withdrawn from a Program
Participant for the personal benefit of its disadvantaged owners or any person or entity affiliated with such owners may
have been unduly excessive, the Administration shall conduct a review to determine whether such withdrawal of funds
or other assets was detrimental to the achievement of the targets, objectives, and goals contained in such Program
Participant's business plan.
(ii) If the Administration determines, pursuant to such review, that funds or other assets have been withdrawn to the
detriment of the Program Participant's business, the Administration shall(I) initiate a proceeding to terminate the Program Participant pursuant to section 636(j)(10)(F) of this title, subject
to the right to a hearing under paragraph (9); or
(II) require an appropriate reinvestment of funds or other assets and such other steps as the Administration may
deem necessary to ensure the protection of the concern.
(E) Whenever the Administration computes personal net worth for any purpose under this paragraph, it shall exclude
from such computation(i) the value of investments that disadvantaged owners have in their concerns, except that such value shall be
taken into account under this paragraph when comparing such concerns to other concerns in the same business
area that are owned by other than socially disadvantaged persons;
(ii) the equity that disadvantaged owners have in their primary personal residences, except that any portion of
such equity that is attributable to unduly excessive withdrawals from a Program Participant or a concern applying for
program participation shall be taken into account.
(7)(A) No small business concern shall be deemed eligible for any assistance pursuant to this subsection unless the
Administration determines that with contract, financial, technical, and management support the small business concern

will be able to perform contracts which may be awarded to such concern under paragraph (1)(C) and has reasonable
prospects for success in competing in the private sector.
(B) Limitations established by the Administration in its regulations and procedures restricting the award of contracts
pursuant to this subsection to a limited number of standard industrial classification codes in an approved business plan
shall not be applied in a manner that inhibits the logical business progression by a participating small business concern
into areas of industrial endeavor where such concern has the potential for success.
(8) All determinations made pursuant to paragraph (5) with respect to whether a group has been subjected to
prejudice or bias shall be made by the Administrator after consultation with the Associate Administrator for Minority
Small Business and Capital Ownership Development. All other determinations made pursuant to paragraphs (4), (5),
(6), and (7) shall be made by the Associate Administrator for Minority Small Business and Capital Ownership
Development under the supervision of, and responsible to, the Administrator.
(9)(A) Subject to the provisions of subparagraph (E), the Administration, prior to taking any action described in
subparagraph (B), shall provide the small business concern that is the subject of such action, an opportunity for a
hearing on the record, in accordance with chapter 5 of title 5.
(B) The actions referred to in subparagraph (A) are(i) denial of program admission based upon a negative determination pursuant to paragraph (4), (5), or (6);
(ii) a termination pursuant to section 636(j)(10)(F) of this title;
(iii) a graduation pursuant to section 636(j)(10)(G) of this title; and
(iv) the denial of a request to issue a waiver pursuant to paragraph (21)(B).
(C) The Administration's proposed action, in any proceeding conducted under the authority of this paragraph, shall
be sustained unless it is found to be arbitrary, capricious, or contrary to law.
(D) A decision rendered pursuant to this paragraph shall be the final decision of the Administration and shall be
binding upon the Administration and those within its employ.
(E) The adjudicator selected to preside over a proceeding conducted under the authority of this paragraph shall
decline to accept jurisdiction over any matter that(i) does not, on its face, allege facts that, if proven to be true, would warrant reversal or modification of the
Administration's position;
(ii) is untimely filed;
(iii) is not filed in accordance with the rules of procedure governing such proceedings; or
(iv) has been decided by or is the subject of an adjudication before a court of competent jurisdiction over such
matters.
(F) Proceedings conducted pursuant to the authority of this paragraph shall be completed and a decision rendered,
insofar as practicable, within ninety days after a petition for a hearing is filed with the adjudicating office.
(10) The Administration shall develop and implement an outreach program to inform and recruit small business
concerns to apply for eligibility for assistance under this subsection. Such program shall make a sustained and
substantial effort to solicit applications for certification from small business concerns located in areas of concentrated
unemployment or underemployment or within labor surplus areas and within States having relatively few Program
Participants and from small disadvantaged business concerns in industry categories that have not substantially
participated in the award of contracts let under the authority of this subsection.
(11) To the maximum extent practicable, construction subcontracts awarded by the Administration pursuant to this
subsection shall be awarded within the county or State where the work is to be performed.
(12)(A) The Administration shall require each concern eligible to receive subcontracts pursuant to this subsection to
annually prepare and submit to the Administration a capability statement. Such statement shall briefly describe such
concern's various contract performance capabilities and shall contain the name and telephone number of the Business
Opportunity Specialist assigned such concern. The Administration shall separate such statements by those primarily
dependent upon local contract support and those primarily requiring a national marketing effort. Statements primarily
dependent upon local contract support shall be disseminated to appropriate buying activities in the marketing area of
the concern. The remaining statements shall be disseminated to the Directors of Small and Disadvantaged Business
Utilization for the appropriate agencies who shall further distribute such statements to buying activities with such
agencies that may purchase the types of items or services described on the capability statements.
(B) Contracting activities receiving capability statements shall, within 60 days after receipt, contact the relevant
Business Opportunity Specialist to indicate the number, type, and approximate dollar value of contract opportunities
that such activities may be awarding over the succeeding 12-month period and which may be appropriate to consider
for award to those concerns for which it has received capability statements.
(C) Each executive agency reporting to the Federal Procurement Data System contract actions with an aggregate
value in excess of $50,000,000 in fiscal year 1988, or in any succeeding fiscal year, shall prepare a forecast of
expected contract opportunities or classes of contract opportunities for the next and succeeding fiscal years that small
business concerns, including those owned and controlled by socially and economically disadvantaged individuals, are
capable of performing. Such forecast shall be periodically revised during such year. To the extent such information is
available, the agency forecasts shall specify:
(i) The approximate number of individual contract opportunities (and the number of opportunities within a class).
(ii) The approximate dollar value, or range of dollar values, for each contract opportunity or class of contract
opportunities.

(iii) The anticipated time (by fiscal year quarter) for the issuance of a procurement request.
(iv) The activity responsible for the award and administration of the contract.
(D) The head of each executive agency subject to the provisions of subparagraph (C) shall within 10 days of
completion furnish such forecasts to(i) the Director of the Office of Small and Disadvantaged Business Utilization established pursuant to section
644(k) of this title for such agency; and
(ii) the Administrator.
(E) The information reported pursuant to subparagraph (D) may be limited to classes of items and services for which
there are substantial annual purchases.
(F) Such forecasts shall be available to small business concerns.
(13) For purposes of this subsection, the term "Indian tribe" means any Indian tribe, band, nation, or other organized
group or community of Indians, including any Alaska Native village or regional or village corporation (within the
meaning of the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et seq.]) which(A) is recognized as eligible for the special programs and services provided by the United States to Indians
because of their status as Indians, or
(B) is recognized as such by the State in which such tribe, band, nation, group, or community resides.
(14) Limitations on subcontracting.-A concern may not be awarded a contract under this subsection as a small
business concern unless the concern agrees to satisfy the requirements of section 657s of this title.
(15) For purposes of this subsection, the term "Native Hawaiian Organization" means any community service
organization serving Native Hawaiians in the State of Hawaii which(A) is a nonprofit corporation that has filed articles of incorporation with the director (or the designee thereof) of the
Hawaii Department of Commerce and Consumer Affairs, or any successor agency,
(B) is controlled by Native Hawaiians, and
(C) whose business activities will principally benefit such Native Hawaiians.
(16)(A) The Administration shall award sole source contracts under this section to any small business concern
recommended by the procuring agency offering the contract opportunity if(i) the Program Participant is determined to be a responsible contractor with respect to performance of such
contract opportunity;
(ii) the award of such contract would be consistent with the Program Participant's business plan; and
(iii) the award of the contract would not result in the Program Participant exceeding the requirements established
by section 636(j)(10)(I) of this title.
(B) To the maximum extent practicable, the Administration shall promote the equitable geographic distribution of sole
source contracts awarded pursuant to this subsection.
(17)(A) An otherwise responsible business concern that is in compliance with the requirements of subparagraph (B)
shall not be denied the opportunity to submit and have considered its offer for any procurement contract, which
contract has as its principal purpose the supply of a product to be let pursuant to this subsection, subsection (m),
section 644(a) of this title, section 657a of this title, or section 657f of this title, solely because such concern is other
than the actual manufacturer or processor of the product to be supplied under the contract.
(B) To be in compliance with the requirements referred to in subparagraph (A), such a business concern shall(i) be primarily engaged in the wholesale or retail trade;
(ii) be a small business concern under the numerical size standard for the Standard Industrial Classification Code
assigned to the contract solicitation on which the offer is being made;
(iii) be a regular dealer, as defined pursuant to section 35(a) 1 of title 41 (popularly referred to as the Walsh-Healey
Public Contracts Act), in the product to be offered the Government or be specifically exempted from such section by
section 636(j)(13)(C) of this title; and
(iv) represent that it will supply the product of a domestic small business manufacturer or processor, unless a
waiver of such requirement is granted(I) by the Administrator, after reviewing a determination by the contracting officer that no small business
manufacturer or processor can reasonably be expected to offer a product meeting the specifications (including
period for performance) required of an offeror by the solicitation; or
(II) by the Administrator for a product (or class of products), after determining that no small business
manufacturer or processor is available to participate in the Federal procurement market.
(C) Limitation.-This paragraph shall not apply to a contract that has as its principal purpose the acquisition of
services or construction.
(18)(A) No person within the employ of the Administration shall, during the term of such employment and for a period
of two years after such employment has been terminated, engage in any activity or transaction specified in
subparagraph (B) with respect to any Program Participant during such person's term of employment, if such person

participated personally (either directly or indirectly) in decision-making responsibilities relating to such Program
Participant or with respect to the administration of any assistance provided to Program Participants generally under this
subsection, section 636(j)(10) of this title, or section 636(a)(20) of this title.
(B) The activities and transactions prohibited by subparagraph (A) include(i) the buying, selling, or receiving (except by inheritance) of any legal or beneficial ownership of stock or any other
ownership interest or the right to acquire any such interest;
(ii) the entering into or execution of any written or oral agreement (whether or not legally enforceable) to purchase
or otherwise obtain any right or interest described in clause (i); or
(iii) the receipt of any other benefit or right that may be an incident of ownership.
(C)(i) The employees designated in clause (ii) shall annually submit a written certification to the Administration
regarding compliance with the requirements of this paragraph.
(ii) The employees referred to in clause (i) are(I) regional administrators;
(II) district directors;
(III) the Associate Administrator for Minority Small Business and Capital Ownership Development;
(IV) employees whose principal duties relate to the award of contracts or the provision of other assistance
pursuant to this subsection or section 636(j)(10) of this title; and
(V) such other employees as the Administrator may deem appropriate.
(iii) Any present or former employee of the Administration who violates this paragraph shall be subject to a civil
penalty, assessed by the Attorney General, that shall not exceed 300 per centum of the maximum amount of gain such
employee realized or could have realized as a result of engaging in those activities and transactions prescribed 2 by
subparagraph (B).
(iv) In addition to any other remedy or sanction provided for under law or regulation, any person who falsely certifies
pursuant to clause (i) shall be subject to a civil penalty under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C.
3801–3812).
(19)(A) Any employee of the Administration who has authority to take, direct others to take, recommend, or approve
any action with respect to any program or activity conducted pursuant to this subsection or section 636(j) of this title,
shall not, with respect to any such action, exercise or threaten to exercise such authority on the basis of the political
activity or affiliation of any party. Employees of the Administration shall expeditiously report to the Inspector General of
the Administration any such action for which such employee's participation has been solicitated 3 or directed.
(B) Any employee who willfully and knowingly violates subparagraph (A) shall be subject to disciplinary action which
may consist of separation from service, reduction in grade, suspension, or reprimand.
(C) Subparagraph (A) shall not apply to any action taken as a penalty or other enforcement of a violation of any law,
rule, or regulation prohibiting or restricting political activity.
(D) The prohibitions of subparagraph (A), and remedial measures provided for under subparagraphs (B) and (C) with
regard to such prohibitions, shall be in addition to, and not in lieu of, any other prohibitions, measures or liabilities that
may arise under any other provision of law.
(20)(A) Small business concerns participating in the Program under section 636(j)(10) of this title and eligible to
receive contracts pursuant to this section shall semiannually report to their assigned Business Opportunity Specialist
the following:
(i) A listing of any agents, representatives, attorneys, accountants, consultants, and other parties (other than
employees) receiving compensation to assist in obtaining a Federal contract for such Program Participant.
(ii) The amount of compensation received by any person listed under clause (i) during the relevant reporting period
and a description of the activities performed in return for such compensation.
(B) The Business Opportunity Specialist shall promptly review and forward such report to the Associate Administrator
for Minority Small Business and Capital Ownership Development. Any report that raises a suspicion of improper activity
shall be reported immediately to the Inspector General of the Administration.
(C) The failure to submit a report pursuant to the requirements of this subsection and applicable regulations shall be
considered "good cause" for the initiation of a termination proceeding pursuant to section 636(j)(10)(F) of this title.
(21)(A) Subject to the provisions of subparagraph (B), a contract (including options) awarded pursuant to this
subsection shall be performed by the concern that initially received such contract. Notwithstanding the provisions of the
preceding sentence, if the owner or owners upon whom eligibility was based relinquish ownership or control of such
concern, or enter into any agreement to relinquish such ownership or control, such contract or option shall be
terminated for the convenience of the Government, except that no repurchase costs or other damages may be
assessed against such concerns due solely to the provisions of this subparagraph.
(B) The Administrator may, on a nondelegable basis, waive the requirements of subparagraph (A) only if one of the
following conditions exist:
(i) When it is necessary for the owners of the concern to surrender partial control of such concern on a temporary
basis in order to obtain equity financing.
(ii) The head of the contracting agency for which the contract is being performed certifies that termination of the
contract would severely impair attainment of the agency's program objectives or missions;

(iii) Ownership and control of the concern that is performing the contract will pass to another small business
concern that is a program participant, but only if the acquiring firm would otherwise be eligible to receive the award
directly pursuant to subsection (a);
(iv) The individuals upon whom eligibility was based are no longer able to exercise control of the concern due to
incapacity or death; or
(v) When, in order to raise equity capital, it is necessary for the disadvantaged owners of the concern to relinquish
ownership of a majority of the voting stock of such concern, but only if(I) such concern has exited the Capital Ownership Development Program;
(II) the disadvantaged owners will maintain ownership of the largest single outstanding block of voting stock
(including stock held by affiliated parties); and
(III) the disadvantaged owners will maintain control of daily business operations.
(C) The Administrator may waive the requirements of subparagraph (A) if(i) in the case of subparagraph (B) (i), (ii) and (iv), he is requested to do so prior to the actual relinquishment of
ownership or control; and
(ii) in the case of subparagraph (B)(iii), he is requested to do so as soon as possible after the incapacity or death
occurs.
(D) Concerns performing contracts awarded pursuant to this subsection shall be required to notify the Administration
immediately upon entering an agreement (either oral or in writing) to transfer all or part of its stock or other ownership
interest to any other party.
(E) Notwithstanding any other provision of law, for the purposes of determining ownership and control of a concern
under this section, any potential ownership interests held by investment companies licensed under the Small Business
Investment Act of 1958 [15 U.S.C. 661 et seq.] shall be treated in the same manner as interests held by the individuals
upon whom eligibility is based.
(b) Procurement and property disposal powers; determination of small-business concerns
It shall also be the duty of the Administration and it is empowered, whenever it determines such action is necessary(1)(A) to provide(i) technical, managerial, and informational aids to small business concerns(I) by advising and counseling on matters in connection with Government procurement and policies,
principles, and practices of good management;
(II) by cooperating and advising with(aa) voluntary business, professional, educational, and other nonprofit organizations, associations, and
institutions (except that the Administration shall take such actions as it determines necessary to ensure that
such cooperation does not constitute or imply an endorsement by the Administration of the organization or its
products or services, and shall ensure that it receives appropriate recognition in all printed materials); and
(bb) other Federal and State agencies;
(III) by maintaining a clearinghouse for information on managing, financing, and operating small business
enterprises; and
(IV) by disseminating such information, including through recognition events, and by other activities that the
Administration determines to be appropriate; and
(ii) through cooperation with a profit-making concern (referred to in this paragraph as a "cosponsor"), training,
information, and education to small business concerns, except that the Administration shall(I) take such actions as it determines to be appropriate to ensure that(aa) the Administration receives appropriate recognition and publicity;
(bb) the cooperation does not constitute or imply an endorsement by the Administration of any product or
service of the cosponsor;
(cc) unnecessary promotion of the products or services of the cosponsor is avoided; and
(dd) utilization of any one cosponsor in a marketing area is minimized; and
(II) develop an agreement, executed on behalf of the Administration by an employee of the Administration in
Washington, the District of Columbia, that provides, at a minimum, that(aa) any printed material to announce the cosponsorship or to be distributed at the cosponsored activity,
shall be approved in advance by the Administration;
(bb) the terms and conditions of the cooperation shall be specified;
(cc) only minimal charges may be imposed on any small business concern to cover the direct costs of
providing the assistance;
(dd) the Administration may provide to the cosponsorship mailing labels, but not lists of names and
addresses of small business concerns compiled by the Administration;
(ee) all printed materials containing the names of both the Administration and the cosponsor shall include a
prominent disclaimer that the cooperation does not constitute or imply an endorsement by the Administration

of any product or service of the cosponsor; and
(ff) the Administration shall ensure that it receives appropriate recognition in all cosponsorship printed
materials.
(B) To establish, conduct, and publicize, and to recruit, select, and train volunteers for (and to enter into contracts,
grants, or cooperative agreements therefor), volunteer programs, including a Service Corps of Retired Executives
(SCORE) and an Active Corps of Executive (ACE) for the purposes of subparagraph (A). To facilitate the
implementation of such volunteer programs the Administration shall maintain at its headquarters and pay the
salaries, benefits, and expenses of a volunteer and professional staff to manage and oversee the program. Any such
payments made pursuant to this subparagraph shall be effective only to such extent or in such amounts as are
provided in advance in appropriation Acts. Notwithstanding any other provision of law, SCORE may solicit cash and
in-kind contributions from the private sector to be used to carry out its functions under this chapter, and may use
payments made by the Administration pursuant to this subparagraph for such solicitation and the management of the
contributions received.
(C) To allow any individual or group of persons participating with it in furtherance of the purposes of subparagraphs
(A) and (B) to use the Administration's office facilities and related material and services as the Administration deems
appropriate, including clerical and stenographic services:
(i) such volunteers, while carrying out activities under this paragraph shall be deemed Federal employees for the
purposes of the Federal tort claims provisions in title 28; and for the purposes of subchapter I of chapter 81 of title
5 (relative to compensation to Federal employees for work injuries) shall be deemed civil employees of the United
States within the meaning of the term "employee" as defined in section 8101 of title 5, and the provisions of that
subchapter shall apply except that in computing compensation benefits for disability or death, the monthly pay of a
volunteer shall be deemed that received under the entrance salary for a grade GS–11 employee;
(ii) the Administrator is authorized to reimburse such volunteers for all necessary out-of-pocket expenses
incident to their provision of services under this chapter, or in connection with attendance at meetings sponsored
by the Administration, or for the cost of malpractice insurance, as the Administrator shall determine, in accordance
with regulations which he or she shall prescribe, and, while they are carrying out such activities away from their
homes or regular places of business, for travel expenses (including per diem in lieu of subsistence) as authorized
by section 5703 of title 5 for individuals serving without pay; and
(iii) such volunteers shall in no way provide services to a client of such Administration with a delinquent loan
outstanding, except upon a specific request signed by such client for assistance in connection with such matter.
(D) Notwithstanding any other provision of law, no payment for supportive services or reimbursement of out-ofpocket expenses made to persons serving pursuant to this paragraph shall be subject to any tax or charge or be
treated as wages or compensation for the purposes of unemployment, disability, retirement, public assistance, or
similar benefit payments, or minimum wage laws.
(E) In carrying out its functions under subparagraph (A), to make grants (including contracts and cooperative
agreements) to any public or private institution of higher education for the establishment and operation of a small
business institute, which shall be used to provide business counseling and assistance to small business concerns
through the activities of students enrolled at the institution, which students shall be entitled to receive educational
credits for their activities.
(F) Notwithstanding any other provision of law and pursuant to regulations which the Administrator shall prescribe,
counsel may be employed and counsel fees, court costs, bail, and other expenses incidental to the defense of
volunteers may be paid in judicial or administrative proceedings arising directly out of the performance of activities
pursuant to this paragraph, to which volunteers have been made parties.
(G) In carrying out its functions under this chapter and to carry out the activities authorized by title IV of the
Women's Business Ownership Act of 1988 [15 U.S.C. 7101 et seq.], the Administration is authorized to accept, in the
name of the Administration, and employ or dispose of in furtherance of the purposes of this chapter, any money or
property, real, personal, or mixed, tangible, or intangible, received by gift, devise, bequest, or otherwise; and, further,
to accept gratuitous services and facilities.
(2) to make a complete inventory of all productive facilities of small-business concerns or to arrange for such
inventory to be made by any other governmental agency which has the facilities. In making any such inventory, the
appropriate agencies in the several States may be requested to furnish an inventory of the productive facilities of
small-business concerns in each respective State if such an inventory is available or in prospect;
(3) to coordinate and to ascertain the means by which the productive capacity of small-business concerns can be
most effectively utilized;
(4) to consult and cooperate with officers of the Government having procurement or property disposal powers, in
order to utilize the potential productive capacity of plants operated by small-business concerns;
(5) to obtain information as to methods and practices which Government prime contractors utilize in letting
subcontracts and to take action to encourage the letting of subcontracts by prime contractors to small-business
concerns at prices and on conditions and terms which are fair and equitable;
(6) to determine within any industry the concerns, firms, persons, corporations, partnerships, cooperatives, or
other business enterprises which are to be designated "small-business concerns" for the purpose of effectuating the
provisions of this chapter. To carry out this purpose the Administrator, when requested to do so, shall issue in
response to each such request an appropriate certificate certifying an individual concern as a "small-business

concern" in accordance with the criteria expressed in this chapter. Any such certificate shall be subject to revocation
when the concern covered thereby ceases to be a "small-business concern". Offices of the Government having
procurement or lending powers, or engaging in the disposal of Federal property or allocating materials or supplies, or
promulgating regulations affecting the distribution of materials or supplies, shall accept as conclusive the
Administration's determination as to which enterprises are to be designated "small-business concerns", as
authorized and directed under this paragraph;
(7)(A) To certify to Government procurement officers, and officers engaged in the sale and disposal of Federal
property, with respect to all elements of responsibility, including, but not limited to, capability, competency, capacity,
credit, integrity, perseverance, and tenacity, of any small business concern or group of such concerns to receive and
perform a specific Government contract. A Government procurement officer or an officer engaged in the sale and
disposal of Federal property may not, for any reason specified in the preceding sentence preclude any small
business concern or group of such concerns from being awarded such contract without referring the matter for a final
disposition to the Administration.
(B) If a Government procurement officer finds that an otherwise qualified small business concern may be ineligible
due to the provisions of section 35(a) 1 of title 41, he shall notify the Administration in writing of such finding. The
Administration shall review such finding and shall either dismiss it and certify the small business concern to be an
eligible Government contractor for a specific Government contract or if it concurs in the finding, forward the matter to
the Secretary of Labor for final disposition, in which case the Administration may certify the small business concern
only if the Secretary of Labor finds the small business concern not to be in violation.
(C) In any case in which a small business concern or group of such concerns has been certified by the
Administration pursuant to (A) or (B) to be a responsible or eligible Government contractor as to a specific
Government contract, the officers of the Government having procurement or property disposal powers are directed to
accept such certification as conclusive, and shall let such Government contract to such concern or group of concerns
without requiring it to meet any other requirement of responsibility or eligibility. Notwithstanding the first sentence of
this subparagraph, the Administration may not establish an exemption from referral or notification or refuse to accept
a referral or notification from a Government procurement officer made pursuant to subparagraph (A) or (B) of this
paragraph, but nothing in this paragraph shall require the processing of an application for certification if the small
business concern to which the referral pertains declines to have the application processed.
(8) to obtain from any Federal department, establishment, or agency engaged in procurement or in the financing of
procurement or production such reports concerning the letting of contracts and subcontracts and the making of loans
to business concerns as it may deem pertinent in carrying out its functions under this chapter;
(9) to obtain from any Federal department, establishment, or agency engaged in the disposal of Federal property
such reports concerning the solicitation of bids, time of sale, or otherwise as it may deem pertinent in carrying out its
functions under this chapter;
(10) to obtain from suppliers of materials information pertaining to the method of filling orders and the bases for
allocating their supply, whenever it appears that any small business is unable to obtain materials from its normal
sources;
(11) to make studies and recommendations to the appropriate Federal agencies to insure that a fair proportion of
the total purchases and contracts for property and services for the Government be placed with small-business
enterprises, to insure that a fair proportion of Government contracts for research and development be placed with
small-business concerns, to insure that a fair proportion of the total sales of Government property be made to smallbusiness concerns, and to insure a fair and equitable share of materials, supplies, and equipment to small-business
concerns;
(12) to consult and cooperate with all Government agencies for the purpose of insuring that small-business
concerns shall receive fair and reasonable treatment from such agencies;
(13) to establish such advisory boards and committees as may be necessary to achieve the purposes of this
chapter and of the Small Business Investment Act of 1958 [15 U.S.C. 661 et seq.]; to call meetings of such boards
and committees from time to time; to pay the transportation expenses and a per diem allowance in accordance with
section 5703 of title 5 to the members of such boards and committees for travel and subsistence expenses incurred
at the request of the Administration in connection with travel to points more than fifty miles distant from the homes of
such members in attending the meeting of such boards and committees; and to rent temporarily, within the District of
Columbia or elsewhere, such hotel or other accommodations as are needed to facilitate the conduct of such
meetings;
(14) to provide at the earliest practicable time such information and assistance as may be appropriate, including
information concerning eligibility for loans under section 636(b)(3) of this title, to local public agencies (as defined in
section 110(h) of the Housing Act of 1949 [42 U.S.C. 1460(h)]) and to small-business concerns to be displaced by
federally aided urban renewal projects in order to assist such small-business concerns in reestablishing their
operations;
(15) to disseminate, without regard to the provisions of section 3204 of title 39 data and information, in such form
as it shall deem appropriate, to public agencies, private organizations, and the general public;
(16) to make studies of matters materially affecting the competitive strength of small business, and of the effect on
small business of Federal laws, programs, and regulations, and to make recommendations to the appropriate
Federal agency or agencies for the adjustment of such programs and regulations to the needs of small business;
and

(17) to make grants to, and enter into contracts and cooperative agreements with, educational institutions, private
businesses, veterans' nonprofit community-based organizations, and Federal, State, and local departments and
agencies for the establishment and implementation of outreach programs for disabled veterans (as defined in section
4211(3) of title 38), veterans, and members of a reserve component of the Armed Forces.
(c) [Reserved]
(d) Performance of contracts by small business concerns; inclusion of required contract clause;
subcontracting plans; contract eligibility; incentives; breach of contract; review; report to Congress
(1) It is the policy of the United States that small business concerns, small business concerns owned and controlled
by veterans, 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, shall have the maximum practicable
opportunity to participate in the performance of contracts let by any Federal agency, including contracts and
subcontracts for subsystems, assemblies, components, and related services for major systems. It is further the policy
of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due
pursuant to the terms of their subcontracts with small business concerns, small business concerns owned and
controlled by veterans, 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.
(2) The clause stated in paragraph (3) shall be included in all contracts let by any Federal agency except any
contract which(A) does not exceed the simplified acquisition threshold;
(B) including all subcontracts under such contracts will be performed entirely outside of any State, territory, or
possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico; or
(C) is for services which are personal in nature.
(3) The clause required by paragraph (2) shall be as follows:
"(A) It is the policy of the United States that small business concerns, small business concerns owned and
controlled by veterans, 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 shall have the maximum
practicable opportunity to participate in the performance of contracts let by any Federal agency, including contracts
and subcontracts for subsystems, assemblies, components, and related services for major systems. It is further the
policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts
due pursuant to the terms of their subcontracts with small business concerns, small business concerns owned and
controlled by veterans, 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.
"(B) The contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent
consistent with the efficient performance of this contract. The contractor further agrees to cooperate in any studies or
surveys as may be conducted by the United States Small Business Administration or the awarding agency of the
United States as may be necessary to determine the extent of the contractor's compliance with this clause.
"(C) As used in this contract, the term 'small business concern' shall mean a small business as defined pursuant to
section 3 of the Small Business Act and relevant regulations promulgated pursuant thereto. The term 'small business
concern owned and controlled by socially and economically disadvantaged individuals' shall mean a small business
concern"(i) which is at least 51 per centum owned by one or more socially and economically disadvantaged individuals;
or, in the case of any publicly owned business, at least 51 per centum of the stock of which is owned by one or
more socially and economically disadvantaged individuals; and
"(ii) whose management and daily business operations are controlled by one or more of such individuals.
"The contractor shall presume that socially and economically disadvantaged individuals include Black Americans,
Hispanic Americans, Native Americans, Asian Pacific Americans, and other minorities, or any other individual found
to be disadvantaged by the Administration pursuant to section 8(a) of the Small Business Act.
"(D) The term 'small business concern owned and controlled by women' shall mean a small business concern"(i) which is at least 51 per centum owned by one or more women; or, in the case of any publicly owned
business, at least 51 per centum of the stock of which is owned by one or more women; and
"(ii) whose management and daily business operations are controlled by one or more women.
"(E) The term 'small business concern owned and controlled by veterans' shall mean a small business concern"(i) which is at least 51 per centum owned by one or more eligible veterans; or, in the case of any publicly owned
business, at least 51 per centum of the stock of which is owned by one or more veterans; and
"(ii) whose management and daily business operations are controlled by such veterans. The contractor shall
treat as veterans all individuals who are veterans within the meaning of the term under section 3(q) of the Small

Business Act.
"(F) Contractors acting in good faith may rely on written representations by their subcontractors regarding their
status as either a small business concern, small business concern owned and controlled by veterans, small business
concern owned and controlled by service-disabled veterans, a small business concern owned and controlled by
socially and economically disadvantaged individuals, or a small business concern owned and controlled by women.
"(G) In this contract, the term 'qualified HUBZone small business concern' has the meaning given that term in
section 31(b) 4.
"(H) In this contract, the term 'small business concern owned and controlled by service-disabled veterans' has the
meaning given that term in section 3(q) 4."
(4)(A) Each solicitation of an offer for a contract to be let by a Federal agency which is to be awarded pursuant to the
negotiated method of procurement and which may exceed $1,000,000, in the case of a contract for the construction of
any public facility, or $500,000, in the case of all other contracts, shall contain a clause notifying potential offering
companies of the provisions of this subsection relating to contracts awarded pursuant to the negotiated method of
procurement.
(B) Before the award of any contract to be let, or any amendment or modification to any contract let, by any Federal
agency which(i) is to be awarded, or was let, pursuant to the negotiated method of procurement,
(ii) is required to include the clause stated in paragraph (3),
(iii) may exceed $1,000,000 in the case of a contract for the construction of any public facility, or $500,000 in the
case of all other contracts, and
(iv) which offers subcontracting possibilities,
the apparent successful offeror shall negotiate with the procurement authority a subcontracting plan which
incorporates the information prescribed in paragraph (6). The subcontracting plan shall be included in and made a
material part of the contract.
(C) If, within the time limit prescribed in regulations of the Federal agency concerned, the apparent successful offeror
fails to negotiate the subcontracting plan required by this paragraph, such offeror shall become ineligible to be awarded
the contract. Prior compliance of the offeror with other such subcontracting plans shall be considered by the Federal
agency in determining the responsibility of that offeror for the award of the contract.
(D) No contract shall be awarded to any offeror unless the procurement authority determines that the plan to be
negotiated by the offeror pursuant to this paragraph provides the maximum practicable opportunity for small business
concerns, qualified HUBZone small business concerns, small business concerns owned and controlled by veterans,
small business concerns owned and controlled by service-disabled veterans, 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 the contract.
(E) Notwithstanding any other provision of law, every Federal agency, in order to encourage subcontracting
opportunities for small business concerns, small business concerns owned and controlled by veterans, small business
concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, and small
business concerns owned and controlled by the socially and economically disadvantaged individuals as defined in
paragraph (3) of this subsection and for small business concerns owned and controlled by women, is hereby
authorized to provide such incentives as such Federal agency may deem appropriate in order to encourage such
subcontracting opportunities as may be commensurate with the efficient and economical performance of the contract:
Provided, That, this subparagraph shall apply only to contracts let pursuant to the negotiated method of procurement.
(F)(i) Each contract subject to the requirements of this paragraph or paragraph (5) shall contain a clause for the
payment of liquidated damages upon a finding that a prime contractor has failed to make a good faith effort to comply
with the requirements imposed on such contractor by this subsection.
(ii) The contractor shall be afforded an opportunity to demonstrate a good faith effort regarding compliance prior to
the contracting officer's final decision regarding the imposition of damages and the amount thereof. The final decision
of a contracting officer regarding the contractor's obligation to pay such damages, or the amounts thereof, shall be
subject to chapter 71 of title 41.
(iii) Each agency shall ensure that the goals offered by the apparent successful bidder or offeror are attainable in
relation to(I) the subcontracting opportunities available to the contractor, commensurate with the efficient and economical
performance of the contract;
(II) the pool of eligible subcontractors available to fulfill the subcontracting opportunities; and
(III) the actual performance of such contractor in fulfilling the subcontracting goals specified in prior plans.
(G) The following factors shall be designated by the Federal agency as significant factors for purposes of evaluating
offers for a bundled contract where the head of the agency determines that the contract offers a significant opportunity
for subcontracting:

(i) A factor that is based on the rate provided under the subcontracting plan for small business participation in the
performance of the contract.
(ii) For the evaluation of past performance of an offeror, a factor that is based on the extent to which the offeror
attained applicable goals for small business participation in the performance of contracts.
(5)(A) Each solicitation of a bid for any contract to be let, or any amendment or modification to any contract let, by
any Federal agency which(i) is to be awarded pursuant to the formal advertising method of procurement,
(ii) is required to contain the clause stated in paragraph (3) of this subsection,
(iii) may exceed $1,000,000 in the case of a contract for the construction of any public facility, or $500,000, in the
case of all other contracts, and
(iv) offers subcontracting possibilities,
shall contain a clause requiring any bidder who is selected to be awarded a contract to submit to the Federal agency
concerned a subcontracting plan which incorporates the information prescribed in paragraph (6).
(B) If, within the time limit prescribed in regulations of the Federal agency concerned, the bidder selected to be
awarded the contract fails to submit the subcontracting plan required by this paragraph, such bidder shall become
ineligible to be awarded the contract. Prior compliance of the bidder with other such subcontracting plans shall be
considered by the Federal agency in determining the responsibility of such bidder for the award of the contract. The
subcontracting plan of the bidder awarded the contract shall be included in and made a material part of the contract.
(6) Each subcontracting plan required under paragraph (4) or (5) shall include(A) percentage goals for the utilization as subcontractors of small business concerns, small business concerns
owned and controlled by veterans, 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;
(B) the name of an individual within the employ of the offeror or bidder who will administer the subcontracting
program of the offeror or bidder and a description of the duties of such individual;
(C) a description of the efforts the offeror or bidder will take to assure that small business concerns, small business
concerns owned and controlled by veterans, 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 will have
an equitable opportunity to compete for subcontracts;
(D) assurances that the offeror or bidder will include the clause required by paragraph (2) of this subsection in all
subcontracts which offer further subcontracting opportunities, and that the offeror or bidder will require all
subcontractors (except small business concerns) who receive subcontracts in excess of $1,000,000 in the case of a
contract for the construction of any public facility, or in excess of $500,000 in the case of all other contracts, to adopt
a plan similar to the plan required under paragraph (4) or (5), and assurances at a minimum that the offeror or
bidder, and all subcontractors required to maintain subcontracting plans pursuant to this paragraph, will(i) review and approve subcontracting plans submitted by their subcontractors;
(ii) monitor subcontractor compliance with their approved subcontracting plans;
(iii) ensure that subcontracting reports are submitted by their subcontractors when required;
(iv) acknowledge receipt of their subcontractors' reports;
(v) compare the performance of their subcontractors to subcontracting plans and goals; and
(vi) discuss performance with subcontractors when necessary to ensure their subcontractors make a good faith
effort to comply with their subcontracting plans;
(E) assurances that the offeror or bidder will submit such periodic reports and cooperate in any studies or surveys
as may be required by the Federal agency or the Administration in order to determine the extent of compliance by
the offeror or bidder with the subcontracting plan;
(F) a recitation of the types of records the successful offeror or bidder will maintain to demonstrate procedures
which have been adopted to comply with the requirements and goals set forth in this plan, including the
establishment of source lists of small business concerns, small business concerns owned and controlled by
veterans, 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 efforts to identify and award
subcontracts to such small business concerns;
(G) a recitation of the types of records the successful offeror or bidder will maintain to demonstrate that procedures
have been adopted to substantiate the credit the successful offeror or bidder will elect to receive under paragraph
(16)(A);
(H) a recitation of the types of records the successful offeror or bidder will maintain to demonstrate procedures
which have been adopted to ensure subcontractors at all tiers comply with the requirements and goals set forth in
the plan established in accordance with subparagraph (D) of this paragraph, including(i) the establishment of source lists of small business concerns, small business concerns owned and controlled
by veterans, 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
(ii) efforts to identify and award subcontracts to such small business concerns; and
(I) a representation that the offeror or bidder will(i) make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the
performance of construction work from the small business concerns used in preparing and submitting to the
contracting agency the bid or proposal, in the same amount and quality used in preparing and submitting the bid or
proposal; and
(ii) provide to the contracting officer a written explanation if the offeror or bidder fails to acquire articles,
equipment, supplies, services, or materials or obtain the performance of construction work as described in clause
(i).
(7) The head of the contracting agency shall ensure that(A) the agency collects and reports data on the extent to which contractors of the agency meet the goals and
objectives set forth in subcontracting plans submitted pursuant to this subsection; and
(B) the agency periodically reviews data collected and reported pursuant to subparagraph (A) for the purpose of
ensuring that such contractors comply in good faith with the requirements of this subsection and subcontracting
plans submitted by the contractors pursuant to this subsection.
(8) The provisions of paragraphs (4), (5), and (6) shall not apply to offerors or bidders who are small business
concerns.
(9) Material breach.-The failure of any contractor or subcontractor to comply in good faith with(A) the clause contained in paragraph (3) of this subsection,
(B) any plan required of such contractor pursuant to the authority of this subsection to be included in its contract or
subcontract, or
(C) assurances provided under paragraph (6)(E),
shall be a material breach of such contract or subcontract and may be considered in any past performance
evaluation of the contractor.
(10) Nothing contained in this subsection shall be construed to supersede the requirements of Defense Manpower
Policy Number 4A (32A CFR Chap. 1) or any successor policy.
(11) In the case of contracts within the provisions of paragraphs (4), (5), and (6), the Administration is authorized to(A) assist Federal agencies and businesses in complying with their responsibilities under the provisions of this
subsection, including the formulation of subcontracting plans pursuant to paragraph (4);
(B) review any solicitation for any contract to be let pursuant to paragraphs (4) and (5) to determine the maximum
practicable opportunity for small business concerns, small business concerns owned and controlled by veterans,
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 as subcontractors in the performance of
any contract resulting from any solicitation, and to submit its findings, which shall be advisory in nature, to the
appropriate Federal agency; and
(C) evaluate compliance with subcontracting plans as a supplement to evaluations performed by the contracting
agency, either on a contract-by-contract basis or, in the case of contractors having multiple contracts, on an
aggregate basis.
(12) For purposes of determining the attainment of a subcontract utilization goal under any subcontracting plan
entered into with any executive agency pursuant to this subsection, a mentor firm providing development assistance to
a protege firm under the Mentor-Protege Program established under section 4902 of title 10 shall be granted credit for
such assistance in accordance with subsection (f) of such section.
(13) Payment of Subcontractors.(A) Definition.-In this paragraph, the term "covered contract" means a contract relating to which a prime
contractor is required to develop a subcontracting plan under paragraph (4) or (5).
(B) Notice.(i) In general.-A prime contractor for a covered contract shall notify in writing the contracting officer for the
covered contract if the prime contractor pays a reduced price to a subcontractor for goods and services upon
completion of the responsibilities of the subcontractor or the payment to a subcontractor is more than 30 days past
due for goods or services provided for the covered contract for which the Federal agency has paid the prime
contractor.
(ii) Contents.-A prime contractor shall include the reason for the reduction in a payment to or failure to pay a
subcontractor in any notice made under clause (i).
(C) Performance.-A contracting officer for a covered contract-

(i) shall consider the unjustified failure by a prime contractor to make a full or timely payment to a subcontractor
in evaluating the performance of the prime contractor; and
(ii) may enter or modify past performance information of the prime contractor in connection with the unjustified
failure to make a full or timely payment to a subcontractor subject to this paragraph before or after close-out of the
covered contract.
(D) Control of funds.-If the contracting officer for a covered contract determines that a prime contractor has a
history of unjustified, untimely payments to contractors, the contracting officer shall record the identity of the
contractor in accordance with the regulations promulgated under subparagraph (F).
(E) Cooperation.(i) In general.-Once a contracting officer determines, with respect to the past performance of a prime
contractor, that there was an unjustified failure by the prime contractor on a covered contract to make a full or
timely payment to a subcontractor covered by subparagraph (B) or (C), the prime contractor is required to
cooperate with the contracting officer, who shall consult with the Director of Small Business Programs or the
Director of Small and Disadvantaged Business Utilization acting pursuant to section 644(k)(6) of this title and other
representatives of the Government, regarding correcting and mitigating the unjustified failure to make a full or
timely payment to a subcontractor.
(ii) Duration.-The duty of cooperation under this subparagraph for a prime contractor described in clause (i)
continues until the subcontractor is made whole or the determination of the contracting officer determination is no
longer effective, and regardless of performance or close-out status of the covered contract.
(F) Regulations.-Not later than 1 year after September 27, 2010, the Federal Acquisition Regulatory Council
established under section 1302(a) of title 41 shall amend the Federal Acquisition Regulation issued under section
1303(a) of title 41 to(i) describe the circumstances under which a contractor may be determined to have a history of unjustified,
untimely payments to subcontractors;
(ii) establish a process for contracting officers to record the identity of a contractor described in clause (i); and
(iii) require the identity of a contractor described in clause (i) to be incorporated in, and made publicly available
through, the Federal Awardee Performance and Integrity Information System, or any successor thereto.
(14) An offeror for a covered contract that intends to identify a small business concern as a potential subcontractor in
a bid or proposal for the contract, or in a plan submitted pursuant to this subsection in connection with the contract,
shall notify the small business concern prior to making such identification.
(15) The Administrator shall establish a reporting mechanism that allows a subcontractor or potential subcontractor
to report fraudulent activity or bad faith by a contractor with respect to a subcontracting plan submitted pursuant to this
subsection.
(16) Credit for certain small business concern subcontractors.(A) In general.-For purposes of determining whether or not a prime contractor has attained the percentage goals
specified in paragraph (6)(i) if the subcontracting goals pertain only to a single contract with a Federal agency, the prime contractor may
elect to receive credit for small business concerns performing as first tier subcontractors or subcontractors at any
tier pursuant to the subcontracting plans required under paragraph (6)(D) in an amount equal to the total dollar
value of any subcontracts awarded to such small business concerns; and
(ii) if the subcontracting goals pertain to more than one contract with one or more Federal agencies, or to one
contract with more than one Federal agency, the prime contractor may only receive credit for first tier
subcontractors that are small business concerns.
(B) Collection and review of data on subcontracting plans.-The head of each contracting agency shall
ensure that the agency(i) collects and reports data on the extent to which prime contractors of the agency meet the goals and
objectives set forth in subcontracting plans submitted pursuant to this subsection; and
(ii) periodically reviews data collected and reported pursuant to clause (i) for the purpose of ensuring that such
contractors comply in good faith with the requirements of this subsection.
(C) Rule of construction.-Nothing in this paragraph shall be construed to allow a Federal agency to establish a
goal for an 5 number of subcontracts with a subcontractor at any tier for a prime contractor otherwise eligible to
receive credit under this paragraph.
(17) Past performance ratings for certain small business subcontractors.-Upon request by a small
business concern that performed as a first tier subcontractor on a covered contract (as defined in paragraph (13)(A)),
the prime contractor for such covered contract shall submit to such small business concern a record of past
performance for such small business concern with respect to such covered contract. If a small business concern elects

to use such record of past performance, a contracting officer shall consider such record of past performance when
evaluating an offer for a prime contract made by such small business concern.
(e) Covered executive agency activities; procurement notice; publication; time limitations
(1) Except as provided in subsection (g)(A) an executive agency intending to(i) solicit bids or proposals for a contract for property or services for a price expected to exceed $25,000; or
(ii) place an order, expected to exceed $25,000, under a basic agreement, basic ordering agreement, or similar
arrangement,
shall publish a notice described in subsection (f);
(B) an executive agency intending to solicit bids or proposals for a contract for property or services shall post, for a
period of not less than ten days, in a public place at the contracting office issuing the solicitation a notice of
solicitation described in subsection (f)(i) in the case of an executive agency other than the Department of Defense, if the contract is for a price
expected to exceed $10,000, but not to exceed $25,000; and
(ii) in the case of the Department of Defense, if the contract is for a price expected to exceed $5,000, but not to
exceed $25,000;
(C) an executive agency awarding a contract for property or services for a price exceeding $100,000, or placing an
order referred to in clause (A)(ii) exceeding $100,000, shall furnish for publication by the Secretary of Commerce a
notice announcing the award or order if there is likely to be any subcontract under such contract or order.
(2)(A) A notice of solicitation required to be published under paragraph (1) may be published(i) by electronic means that meet the accessibility requirements under section 1708(d) of title 41; or
(ii) by the Secretary of Commerce in the Commerce Business Daily.
(B) The Secretary of Commerce shall promptly publish in the Commerce Business Daily each notice or
announcement received under this subsection for publication by that means.
(3) Whenever an executive agency is required by paragraph (1)(A) to publish a notice of solicitation, such executive
agency may not(A) issue the solicitation earlier than 15 days after the date on which the notice is published; or
(B) in the case of a contract or order estimated to be greater than the simplified acquisition threshold, establish a
deadline for the submission of all bids or proposals in response to the notice required by paragraph (1)(A) that(i) in the case of an order under a basic agreement, basic ordering agreement, or similar arrangement, is earlier
than the date 30 days after the date the notice required by paragraph (1)(A)(ii) is published;
(ii) in the case of a solicitation for research and development, is earlier than the date 45 days after the date the
notice required by paragraph (1)(A)(i) is published; or
(iii) in any other case, is earlier than the date 30 days after the date the solicitation is issued.
(f) Contents of notice
Each notice of solicitation required by subparagraph (A) or (B) of subsection (e)(1) shall include(1) an accurate description of the property or services to be contracted for, which description (A) shall not be
unnecessarily restrictive of competition, and (B) shall include, as appropriate, the agency nomenclature, National
Stock Number or other part number, and a brief description of the item's form, fit, or function, physical dimensions,
predominant material of manufacture, or similar information that will assist a prospective contractor to make an
informed business judgment as to whether a copy of the solicitation should be requested;
(2) provisions that(A) state whether the technical data required to respond to the solicitation will not be furnished as part of such
solicitation, and identify the source in the Government, if any, from which the technical data may be obtained; and
(B) state whether an offeror, its product, or service must meet a qualification requirement in order to be eligible
for award, and, if so, identify the office from which a qualification requirement may be obtained;
(3) the name, business address, and telephone number of the contracting officer;
(4) a statement that all responsible sources may submit a bid, proposal, or quotation (as appropriate) which shall
be considered by the agency;
(5) in the case of a procurement using procedures other than competitive procedures, a statement of the reason
justifying the use of such procedures and the identity of the intended source; and
(6) in the case of a contract in an amount estimated to be greater than $25,000 but not greater than the simplified
acquisition threshold(A) a description of the procedures to be used in awarding the contract; and
(B) a statement specifying the periods for prospective offerors and the contracting officer to take the necessary
preaward and award actions.
(g) Exempted, etc., activities of executive agency

(1) A notice is not required under subsection (e)(1) if(A) the proposed procurement is for an amount not greater than the simplified acquisition threshold and is to be
conducted by(i) using widespread electronic public notice of the solicitation in a form that allows convenient and universal
user access through a single, Government-wide point of entry; and
(ii) permitting the public to respond to the solicitation electronically.
(B) the notice would disclose the executive agency's needs and the disclosure of such needs would compromise
the national security;
(C) the proposed procurement would result from acceptance of(i) any unsolicited proposal that demonstrates a unique and innovative research concept and the publication of
any notice of such unsolicited research proposal would disclose the originality of thought or innovativeness of the
proposal or would disclose proprietary information associated with the proposal; or
(ii) a proposal submitted under section 638 of this title;
(D) the procurement is made against an order placed under a requirements contract;
(E) the procurement is made for perishable subsistence supplies;
(F) the procurement is for utility services, other than telecommunication services, and only one source is available;
or
(G) the procurement is for the services of an expert for use in any litigation or dispute (including preparation for
any foreseeable litigation or dispute) that involves or could involve the Federal Government in any trial, hearing, or
proceeding before any court, administrative tribunal, or agency, or in any part of an alternative dispute resolution
process, whether or not the expert is expected to testify.
(2) The requirements of subsection (a)(1)(A) do not apply to any procurement under conditions described in
paragraph (2), (3), (4), (5), or (7) of section 3304(a) of title 41 or paragraph (2), (3), (4), (5), or (7) of section 3204(a) of
title 10.
(3) The requirements of subsection (a)(1)(A) shall not apply in the case of any procurement for which the head of the
executive agency makes a determination in writing, after consultation with the Administrator for Federal Procurement
Policy and the Administrator of the Small Business Administration, that it is not appropriate or reasonable to publish a
notice before issuing a solicitation.
(h) Award of contracts; procedures other than competitive ones; exceptions
(1) An executive agency may not award a contract using procedures other than competitive procedures unless(A) except as provided in paragraph (2), a written justification for the use of such procedures has been approved(i) in the case of a contract for an amount exceeding $100,000 (but equal to or less than $1,000,000), by the
advocate for competition for the procuring activity (without further delegation);
(ii) in the case of a contract for an amount exceeding $1,000,000 (but equal to or less than $10,000,000), by the
head of the procuring activity or a delegate who, if a member of the Armed Forces, is a general or flag officer, or, if
a civilian, is serving in a position in grade GS–16 or above under the General Schedule (or in a comparable or
higher position under another schedule); or
(iii) in the case of a contract for an amount exceeding $10,000,000, by the senior procurement executive of the
agency designated pursuant to section 414(3) of title 41 1 (without further delegation); and
(B) all other requirements applicable to the use of such procedures under division C (except sections 3302,
3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 or sections 3201 through 3205 of title 10, as
appropriate, have been satisfied.
(2) The same exceptions as are provided in paragraphs (3) and (4) of section 3304(e) of title 41 or paragraphs (3)
and (4) of section 3204(e) of title 10 shall apply with respect to the requirements of paragraph (1)(A) of this subsection
in the same manner as such exceptions apply to the requirements of section 3304(e)(1) of title 41 or section 3204(e)(1)
of title 10, as appropriate.
(i) Availability; complete solicitation package; fees
An executive agency shall make available to any business concern, or the authorized representative of such
concern, the complete solicitation package for any on-going procurement announced pursuant to a notice under
subsection (e). An executive agency may require the payment of a fee, not exceeding the actual cost of duplication, for
a copy of such package.
(j) "Executive agency" defined
For purposes of this section, the term "executive agency" has the meaning provided such term in section 133 of title
41.
(k) Notices of subcontracting opportunities
(1) In general

Notices of subcontracting opportunities may be submitted for publication on the appropriate Federal Web site (as
determined by the Administrator) by(A) a business concern awarded a contract by an executive agency subject to subsection (e)(1)(C); and
(B) a business concern that is a subcontractor or supplier (at any tier) to such contractor having a subcontracting
opportunity in excess of $10,000.
(2) Content of notice
The notice of a subcontracting opportunity shall include(A) a description of the business opportunity that is comparable to the description specified in paragraphs (1),
(2), (3), and (4) of subsection (f); and
(B) the due date for receipt of offers.
(l) Management assistance for small businesses affected by military operations
(1) In general
The Administration shall utilize, as appropriate, its entrepreneurial development and management assistance
programs, including programs involving State or private sector partners, to provide business counseling and training
to any small business concern adversely affected by the deployment of units of the Armed Forces of the United
States in support of a period of military conflict.
(2) Definition of period of military conflict
In this subsection, the term "period of military conflict" means(A) a period of war declared by the Congress;
(B) a period of national emergency declared by the Congress or by the President; or
(C) a period of a contingency operation, as defined in section 101(a) of title 10.
(m) Procurement program for women-owned small business concerns
(1) Definitions
In this subsection, the following definitions apply:
(A) Contracting officer
The term "contracting officer" has the meaning given such term in section 2101(1) of title 41.
(B) Small business concern owned and controlled by women
The term "small business concern owned and controlled by women" has the meaning given such term in section
632(n) of this title, except that ownership shall be determined without regard to any community property law.
(2) Authority to restrict competition
In accordance with this subsection, a contracting officer may restrict competition for any contract for the
procurement of goods or services by the Federal Government to small business concerns owned and controlled by
women, if(A) each of the concerns is not less than 51 percent owned by one or more women who are economically
disadvantaged (and such ownership is determined without regard to any community property law);
(B) the contracting officer has a reasonable expectation that two or more small business concerns owned and
controlled by women will submit offers for the contract;
(C) the contract is for the procurement of goods or services with respect to an industry identified by the
Administrator pursuant to paragraph (3);
(D) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price;
and
(E) each of the concerns is certified by a Federal agency, a State government, the Administrator, or a national
certifying entity approved by the Administrator as a small business concern owned and controlled by women.
(3) Waiver
With respect to a small business concern owned and controlled by women, the Administrator may waive
subparagraph (2)(A) if the Administrator determines that the concern is in an industry in which small business
concerns owned and controlled by women are substantially underrepresented.
(4) Identification of industries
The Administrator shall conduct a study to identify industries in which small business concerns owned and
controlled by women are underrepresented with respect to Federal procurement contracting.
(5) Enforcement; penalties
(A) Verification of eligibility
In carrying out this subsection, the Administrator shall establish procedures relating to(i) the filing, investigation, and disposition by the Administration of any challenge to the eligibility of a small
business concern to receive assistance under this subsection (including a challenge, filed by an interested party,
relating to the veracity of a certification made or information provided to the Administration by a small business
concern under paragraph (2)(E)); and

(ii) verification by the Administrator of the accuracy of any certification made or information provided to the
Administration by a small business concern under paragraph (2)(E).
(B) Examinations
The procedures established under subparagraph (A) may provide for program examinations (including random
program examinations) by the Administrator of any small business concern making a certification or providing
information to the Administrator under paragraph (2)(E).
(C) Penalties
In addition to the penalties described in section 645(d) of this title, any small business concern that is
determined by the Administrator to have misrepresented the status of that concern as a small business concern
owned and controlled by women for purposes of this subsection, shall be subject to(i) section 1001 of title 18; and
(ii) sections 3729 through 3733 of title 31.
(6) Provision of data
Upon the request of the Administrator, the head of any Federal department or agency shall promptly provide to the
Administrator such information as the Administrator determines to be necessary to carry out this subsection.
(7) Authority for sole source contracts for economically disadvantaged small business concerns owned and
controlled by women
A contracting officer may award a sole source contract under this subsection to any small business concern owned
and controlled by women described in paragraph (2)(A) and certified under paragraph (2)(E) if(A) such concern is determined to be a responsible contractor with respect to performance of the contract
opportunity and the contracting officer does not have a reasonable expectation that 2 or more businesses
described in paragraph (2)(A) will submit offers;
(B) the anticipated award price of the contract (including options) will not exceed(i) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for
manufacturing; or
(ii) $4,000,000, in the case of any other contract opportunity; and
(C) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.
(8) Authority for sole source contracts for small business concerns owned and controlled by women in
substantially underrepresented industries
A contracting officer may award a sole source contract under this subsection to any small business concern owned
and controlled by women certified under paragraph (2)(E) that is in an industry in which small business concerns
owned and controlled by women are substantially underrepresented (as determined by the Administrator under
paragraph (3)) if(A) such concern is determined to be a responsible contractor with respect to performance of the contract
opportunity and the contracting officer does not have a reasonable expectation that 2 or more businesses in an
industry that has received a waiver under paragraph (3) will submit offers;
(B) the anticipated award price of the contract (including options) will not exceed(i) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for
manufacturing; or
(ii) $4,000,000, in the case of any other contract opportunity; and
(C) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.
(n) Business grants and cooperative agreements
(1) In general
In accordance with this subsection, the Administrator may make grants to and enter into cooperative agreements
with any coalition of private entities, public entities, or any combination of private and public entities(A) to expand business-to-business relationships between large and small businesses; and
(B) to provide businesses, directly or indirectly, with online information and a database of companies that are
interested in mentor-protege programs or community-based, statewide, or local business development programs.
(2) Matching requirement
Subject to subparagraph (B), the Administrator may make a grant to a coalition under paragraph (1) only if the
coalition provides for activities described in paragraph (1)(A) or (1)(B) an amount, either in kind or in cash, equal to
the grant amount.
(3) Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $6,600,000, to remain available until expended,
for each of fiscal years 2001 through 2006.

( Pub. L. 85–536, §2[8], July 18, 1958, 72 Stat. 389 ; Pub. L. 87–305, §§7, 8, Sept. 26, 1961, 75 Stat. 667 , 668; Pub.
L. 88–560, title III, §305(c), Sept. 2, 1964, 78 Stat. 786 ; Pub. L. 89–754, title X, §1017, Nov. 3, 1966, 80 Stat. 1295 ;
Pub. L. 90–104, title I, §§105–107, Oct. 11, 1967, 81 Stat. 268 , 269; Pub. L. 91–375, §6(g), Aug. 12, 1970, 84 Stat.
776 ; Pub. L. 95–89, title V, §501, Aug. 4, 1977, 91 Stat. 561 ; Pub. L. 95–507, title II, §§202(a), 211, Oct. 24, 1978, 92
Stat. 1761 , 1767; Pub. L. 95–510, §101, Oct. 24, 1978, 92 Stat. 1780 ; Pub. L. 96–302, title I, §118(b), July 2, 1980, 94
Stat. 840 ; Pub. L. 96–481, title I, §§101, 105, Oct. 21, 1980, 94 Stat. 2321 , 2322; Pub. L. 98–47, §§1(a), 2, 3, July 13,
1983, 97 Stat. 243 ; Pub. L. 98–72, §1(a), Aug. 11, 1983, 97 Stat. 403 ; Pub. L. 98–362, §5(a), July 16, 1984, 98 Stat.
433 ; Pub. L. 98–577, title IV, §§401, 402, 404(a), Oct. 30, 1984, 98 Stat. 3079 , 3082; Pub. L. 99–272, title XVIII,
§18015(b)–(d), Apr. 7, 1986, 100 Stat. 370 , 371; Pub. L. 99–500, §101(c) [title X, §§921(b)(2), (c)(1), 922(a), (d)(1)],
Oct. 18, 1986, 100 Stat. 1783–82 , 1783-147, 1783-151, 1783-152, and Pub. L. 99–591, §101(c) [title X, §§921(b)(2),
(c)(1), 922(a), (d)(1)], Oct. 30, 1986, 100 Stat. 3341–82 , 3341-147, 3341-151, 3341-152; Pub. L. 99–567, §§1(a), 2, 3,
Oct. 27, 1986, 100 Stat. 3188 ; Pub. L. 99–661, div. A, title IX, formerly title IV, §§921(b)(2), (c)(1), 922(a), (d)(1), Nov.
14, 1986, 100 Stat. 3927 , 3930, 3932, renumbered title IX, Pub. L. 100–26, §3(5), Apr. 21, 1987, 101 Stat. 273 ; Pub.
L. 100–26, §10(b)(3), Apr. 21, 1987, 101 Stat. 288 ; Pub. L. 100–533, title II, §§201, 202, Oct. 25, 1988, 102 Stat. 2690
, 2692; Pub. L. 100–590, title I, §§127(a), (b), 131(b), Nov. 3, 1988, 102 Stat. 3001 , 3003, 3004; Pub. L. 100–656, title
II, §§201(b), 207(a), (c), 209, title III, §§303(b)–(e), (g), (h), 304(a), title IV, §§402–404, 407, 409, title V, §501, Nov. 15,
1988, 102 Stat. 3858 , 3861, 3863, 3869, 3870, 3872-3874, 3876, 3878, 3880; Pub. L. 101–37, §§6(b), (d), 7(b), 10(c),
(e), 12–14, 16, 17, June 15, 1989, 103 Stat. 72–74 ; Pub. L. 101–162, title V, (3), Nov. 21, 1989, 103 Stat. 1025 ; Pub.
L. 101–510, div. A, title VIII, §806(e)(2), Nov. 5, 1990, 104 Stat. 1593 ; Pub. L. 101–574, title II, §§204(b), 207, 210,
244, Nov. 15, 1990, 104 Stat. 2819–2821 , 2827; Pub. L. 102–190, div. A, title VIII, §814(c), Dec. 5, 1991, 105 Stat.
1425 ; Pub. L. 102–191, §3, Dec. 5, 1991, 105 Stat. 1591 ; Pub. L. 102–366, title II, §232(a), Sept. 4, 1992, 106 Stat.
1001 ; Pub. L. 102–564, title III, §§303(a), 304, Oct. 28, 1992, 106 Stat. 4262 ; Pub. L. 103–355, title I, §1055(b)(2),
title IV, §§4202(d), 4404(b), title VII, §7106(b), Oct. 13, 1994, 108 Stat. 3265 , 3345, 3349, 3375; Pub. L. 103–403, title
IV, §§401(a)(1), 407, 415, Oct. 22, 1994, 108 Stat. 4190 , 4192, 4198; Pub. L. 104–106, div. D, title XLIII, §4321(c)(1),
(2), Feb. 10, 1996, 110 Stat. 674 ; Pub. L. 105–85, div. A, title VIII, §850(e)(1), Nov. 18, 1997, 111 Stat. 1848 ; Pub. L.
105–135, title IV, §§415, 416(a), (c), title VI, §603(a), title VII, §708, Dec. 2, 1997, 111 Stat. 2619 , 2620, 2631, 2637;
Pub. L. 106–50, title III, §303(a), title V, §501, Aug. 17, 1999, 113 Stat. 243 , 247; Pub. L. 106–398, §1 [[div. A], title VIII,
§810(c)], Oct. 30, 2000, 114 Stat. 1654 , 1654A-209; Pub. L. 106–554, §1(a)(8) [§2], §1(a)(9) [title V, §504(a), title VI,
§615(b), title VIII, §§803, 807, 809, 811], Dec. 21, 2000, 114 Stat. 2763 , 2763A-666, 2763A-695, 2763A-701, 2763A702, 2763A-706, 2763A-708; Pub. L. 108–447, div. K, title I, §§132(b), (c), 141(a), 144, Dec. 8, 2004, 118 Stat. 3453 ,
3455; Pub. L. 111–240, title I, §§1322, 1334, Sept. 27, 2010, 124 Stat. 2540 , 2542; Pub. L. 112–239, div. A, title XVI,
§§1653(a), 1654, 1696(b)(2), 1697(a), Jan. 2, 2013, 126 Stat. 2081 , 2083, 2091; Pub. L. 113–66, div. A, title XVI,
§1614(a), Dec. 26, 2013, 127 Stat. 948 ; Pub. L. 113–291, div. A, title VIII, §825(a), Dec. 19, 2014, 128 Stat. 3437 ;
Pub. L. 114–92, div. A, title VIII, §864(a), Nov. 25, 2015, 129 Stat. 927 ; Pub. L. 114–328, div. A, title XVIII, §§1821(a),
1822, 1832(c), Dec. 23, 2016, 130 Stat. 2654 , 2660; Pub. L. 115–91, div. A, title XVII, §§1701(a)(4)(C), 1706, Dec. 12,
2017, 131 Stat. 1796 , 1808; Pub. L. 116–92, div. A, title VIII, §§870, 877(d), Dec. 20, 2019, 133 Stat. 1524 , 1530;
Pub. L. 116–283, div. A, title VIII, §§864(1), 868(b), Jan. 1, 2021, 134 Stat. 3784 , 3787; Pub. L. 117–81, div. A, title
XVII, §1702(e)(2), Dec. 27, 2021, 135 Stat. 2156 ; Pub. L. 117–263, div. A, title VIII, §856(e)(2), Dec. 23, 2022, 136
Stat. 2726 ; Pub. L. 118–31, div. A, title VIII, §862(a), Dec. 22, 2023, 137 Stat. 346 .)
Editorial Notes

References in Text
The Small Business Investment Act of 1958, referred to in subsecs. (a)(2)(C), (21)(D), and (b)(13), is

Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689 , which is classified principally to chapter 14B (§661 et seq.) of

this title. Title IV of the Small Business Investment Act of 1958 is classified generally to subchapter IV–A
(§692 et seq.) of chapter 14B of this title. For complete classification of this Act to the Code, see Short Title
note set out under section 661 of this title and Tables.
The Alaska Native Claims Settlement Act, referred to in subsec. (a)(13), is Pub. L. 92–203, Dec. 18,
1971, 85 Stat. 688 , which is classified generally to chapter 33 (§1601 et seq.) of Title 43, Public Lands. For
complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 43 and
Tables.
Section 35(a) of title 41, referred to in subsecs. (a)(17)(B)(iii) and (b)(7)(B), was struck out and former
section 35(b) of Title 41, Public Contracts, redesignated section 35(a) by Pub. L. 103–355, title VII, §7201(1),
Oct. 13, 1994, 108 Stat. 3378 . Section 35 of title 41 was subsequently repealed and restated as sections
6501(1) and 6502 of Title 41, Public Contracts, by Pub. L. 111–350, §§3, 7(b), Jan. 4, 2011, 124 Stat. 3677 ,
3855. Section 6510 of Title 41 now provides for determination of "regular dealer" by Secretary of Labor. For
disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41.
The Program Fraud Civil Remedies Act of 1986, referred to in subsec. (a)(18)(C)(iv), is subtitle B of title
VI of Pub. L. 99–509, Oct. 21, 1986, 100 Stat. 1934 , which is classified generally to chapter 38 (§3801 et seq.)
of Title 31, Money and Finance. For complete classification of this Act to the Code, see Short Title note set
out under section 3801 of Title 31 and Tables.

The Women's Business Ownership Act of 1988, referred to in subsec. (b)(1)(G), is Pub. L. 100–533, Oct.
25, 1988, 102 Stat. 2689 . Title IV of the Act is classified generally to chapter 97 (§7101 et seq.) of this title.
For complete classification of this Act to the Code, see Short Title of 1988 Amendments note set out
under section 631 of this title and Tables.
Section 110 of the Housing Act of 1949 [42 U.S.C. 1460], referred to in subsec. (b)(14), was omitted from
the Code pursuant to section 5316 of Title 42, The Public Health and Welfare, which terminated authority to
make grants or loans under title I of that Act [42 U.S.C. 1450 et seq.] after Jan. 1, 1975.
Sections 3, 8, and 31 of the Small Business Act, referred to in subsec. (d)(3)(C), (E)(ii), (G), (H), are
classified to sections 632, 637, and 657a, respectively, of this title.
The General Schedule, referred to in subsec. (h)(1)(A)(ii), is set out under section 5332 of Title 5.
Section 414 of title 41, referred to in subsec. (h)(1)(A)(iii), was amended generally by Pub. L. 108–136, div.
A, title XIV, §1421(a)(1), Nov. 24, 2003, 117 Stat. 1666 , and, as so amended, the substance of par. (3) was
restated in subsec. (c)(1) of section 414. Section 414(c) of title 41 was subsequently repealed and restated
as section 1702(c) of Title 41, Public Contracts, by Pub. L. 111–350, §§3, 7(b), Jan. 4, 2011, 124 Stat. 3677 ,
3855. For disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41.

Codification
Pub. L. 99–591 is a corrected version of Pub. L. 99–500.
In subsec. (a)(2), "subsections (a), (b), and (e) of section 3131 of title 40" substituted for "subsections (a)

and (c) of the first section of the Act entitled 'An Act requiring contracts for the construction, alteration, and
repair of any public building or public work of the United States to be accompanied by a performance
bond protecting the United States and by additional bond for the protection of persons furnishing material
and labor for the construction, alteration, or repair of said public buildings or public work,' approved
August 24, 1935 (49 Stat. 793)" on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303 , the first
section of which enacted Title 40, Public Buildings, Property, and Works.
In subsec. (d)(4)(F)(ii), "chapter 71 of title 41" substituted for "the Contract Disputes Act of 1978 (41 U.S.C.
601–613)" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act enacted Title 41,
Public Contracts.
In subsec. (d)(13)(E), "section 1302(a) of title 41" substituted for "section 25(a) of the Office of Federal
Procurement Policy Act (41 U.S.C. 421(a))" and "section 1303(a) of title 41" substituted for "section 25 of such
Act" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act enacted Title 41, Public
Contracts.
In subsec. (e)(2)(A)(i), "section 1708(d) of title 41" substituted for "section 18(a)(7) of the Office of Federal
Procurement Policy Act (41 U.S.C. 416(a)(7))" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat.
3854 , which Act enacted Title 41, Public Contracts.
In subsec. (g)(2), "paragraph (2), (3), (4), (5), or (7) of section 3304(a) of title 41" substituted for
"paragraph (2), (3), (4), (5), or (7) of section 303(c) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(c))" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act
enacted Title 41, Public Contracts.
In subsec. (h)(1)(B), "division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711)
of subtitle I of title 41" substituted for "title III of the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 251 et seq.)" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act
enacted Title 41, Public Contracts.
In subsec. (h)(2), "paragraphs (3) and (4) of section 3304(e) of title 41" substituted for "section 303(f)(2) of
the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(f)(2))" and "section 3304(e)(1) of
title 41 or section 2304(f)(1) of title 10" substituted for "section 303(f)(1) of such Act or section 2304(f)(1) of
such title" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act enacted Title 41,
Public Contracts.
In subsec. (j), "section 133 of title 41" substituted for "section 4(1) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(1))" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act
enacted Title 41, Public Contracts.
In subsec. (m)(1)(A), "section 2101(1) of title 41" substituted for "section 27(f)(5) of the Office of Federal
Procurement Policy Act (41 U.S.C. 423(f)(5))" on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat.
3854 , which Act enacted Title 41, Public Contracts.

Prior Provisions
Prior similar provisions were contained in sections 207(b)(2), (b)(4), 208, 210, 212 and 216 of act July
30, 1953, ch. 282, title II, 67 Stat. 235–239 , as amended by acts Aug. 9, 1955, ch. 628, §§2, 5, 7, 69 Stat.
547 , 550; Feb. 2, 1956, ch. 29, §§2, 3, 70 Stat. 10 , which were previously classified to this section and
sections 636, 639, 641, and 645 of this title. See Codification note set out under section 631 of this title.

Amendments
2023-Subsec. (d)(13)(B)(i). Pub. L. 118–31, §862(a)(1), substituted "30 days" for "90 days".
Subsec. (d)(13)(C). Pub. L. 118–31, §862(a)(2), inserted dash after "contract" and cl. (i) designation

before "shall" and added cl. (ii).
Subsec. (d)(13)(D). Pub. L. 118–31, §862(a)(3), substituted "subparagraph (F)" for "subparagraph (E)".
Subsec. (d)(13)(E), (F). Pub. L. 118–31, §862(a)(4), (5), added subpar. (E) and redesignated former
subpar. (E) as (F).
2022-Subsec. (d)(12). Pub. L. 117–263 substituted "the Mentor-Protege Program established under
section 4902 of title 10" for "the pilot Mentor-Protege Program established pursuant to section 831 of the
National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2301 note)" and
"subsection (f)" for "subsection (g)".
2021-Subsec. (a)(1)(D)(i)(II). Pub. L. 116–283, §864(1)(A), substituted "$7,000,000" for "$5,000,000".
Subsec. (d)(17). Pub. L. 116–283, §868(b), amended par. (17) generally. Prior to amendment, par. (17)
related to pilot program providing past performance ratings for other small business subcontractors.
Subsec. (g)(2). Pub. L. 117–81, §1702(e)(2)(A), substituted "section 3204(a)" for "section 2304(c)".
Subsec. (h)(1)(B). Pub. L. 117–81, §1702(e)(2)(B)(i), substituted "sections 3201 through 3205" for
"chapter 137".
Subsec. (h)(2). Pub. L. 117–81, §1702(e)(2)(B)(ii), substituted "paragraphs (3) and (4) of section 3204(e)"
for "section 2304(f)(2)" and "section 3204(e)(1)" for "section 2304(f)(1)".
Subsec. (m)(7)(B)(i). Pub. L. 116–283, §864(1)(B)(i), substituted "$7,000,000" for "$6,500,000".
Subsec. (m)(8)(B)(i). Pub. L. 116–283, §864(1)(B)(ii), substituted "$7,000,000" for "$6,500,000".
2019-Subsec. (d)(6)(G) to (I). Pub. L. 116–92, §870(b), added subpar. (G), redesignated former subpars.
(G) and (H) as (H) and (I), respectively, and realigned margins.
Subsec. (d)(16). Pub. L. 116–92, §870(a), amended par. (16) generally. Prior to amendment, par. (16)
related to credit for certain subcontractors.
Subsec. (l). Pub. L. 116–92, §877(d), designated existing provisions as par. (1) and inserted heading,
struck out "(as defined in section 636(n)(1) of this title)" before period at end, and added par. (2).
2017-Subsec. (d)(3)(G). Pub. L. 115–91, §1701(a)(4)(C), substituted "section 31(b)" for "section 3(p) of
the Small Business Act".
Subsec. (d)(17)(A). Pub. L. 115–91, §1706(b), substituted "paragraph (13)(A)" for "paragraph 13(A)".
Subsec. (d)(17)(G)(i). Pub. L. 115–91, §1706(a)(1)(A), inserted "and, set forth separately, the number of
small business exporters," after "small business concerns".
Subsec. (d)(17)(G)(ii). Pub. L. 115–91, §1706(a)(1)(B), inserted ", set forth separately by applications
from small business concerns and from small business exporters," after "applications".
Subsec. (d)(17)(H). Pub. L. 115–91, §1706(a)(2), amended subpar. (H) generally. Prior to amendment,
text read as follows: "In this paragraph, the term 'appropriate official' means"(i) a commercial market representative;
"(ii) another individual designated by the senior official appointed by the Administrator with
responsibilities under sections 637, 644, 657a, and 657f of this title; or
"(iii) the Office of Small and Disadvantaged Business Utilization of a Federal agency, if the head of
the Federal agency and the Administrator agree."
2016-Subsec. (d)(3)(H). Pub. L. 114–328, §1832(c), added subpar. (H).
Subsec. (d)(9). Pub. L. 114–328, §1821(a), inserted par. heading, added subpar. (C), and realigned
margins.
Subsec. (d)(17). Pub. L. 114–328, §1822, added par. (17).
2015-Subsec. (a)(17)(A). Pub. L. 114–92, §864(a)(1), substituted "any procurement contract, which
contract has as its principal purpose the supply of a product to be let pursuant to this subsection,
subsection (m), section 644(a) of this title, section 657a of this title, or section 657f of this title," for "any
procurement contract for the supply of a product to be let pursuant to this subsection or subsection (a) of
section 644 of this title".
Subsec. (a)(17)(C). Pub. L. 114–92, §864(a)(2), added subpar. (C).
2014-Subsec. (m)(2)(E). Pub. L. 113–291, §825(a)(1), amended subpar. (E) generally. Prior to
amendment, text read as follows: "each of the concerns"(i) is certified by a Federal agency, a State government, or a national certifying entity approved by
the Administrator, as a small business concern owned and controlled by women; or
"(ii) certifies to the contracting officer that it is a small business concern owned and controlled by
women and provides adequate documentation, in accordance with standards established by the
Administration, to support such certification."
Subsec. (m)(5). Pub. L. 113–291, §825(a)(2), substituted "paragraph (2)(E)" for "paragraph (2)(F)"
wherever appearing.

Subsec. (m)(7), (8). Pub. L. 113–291, §825(a)(3), added pars. (7) and (8).
2013-Subsec. (a)(14). Pub. L. 112–239, §1696(b)(2), added par. (14) and struck out former par. (14)
which read as follows:
"(A) A concern may not be awarded a contract under this subsection as a small business concern
unless the concern agrees that"(i) 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; and
"(ii) 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).
"(B) The Administrator may change the percentage under clause (i) or (ii) of subparagraph (A) 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. A
percentage established under the preceding sentence may not differ from a percentage established
under section 644(o) of this title.
"(C) The Administration shall establish, through public rulemaking, requirements similar to those
specified in subparagraph (A) 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 subparagraph.
The percentage applicable to any such requirement shall be determined in accordance with
subparagraph (B), except that such a percentage may not differ from a percentage established under
section 644(o) of this title for the same industry category."
Subsec. (d)(6)(D). Pub. L. 113–66, §1614(a)(1), substituted ", and assurances at a minimum that the
offeror or bidder, and all subcontractors required to maintain subcontracting plans pursuant to this
paragraph, will-" for semicolon at end and added cls. (i) to (vi).
Subsec. (d)(6)(G), (H). Pub. L. 113–66, §1614(a)(2), (3), added subpar. (G) and redesignated former
subpar. (G) as (H).
Subsec. (d)(7), (8). Pub. L. 112–239, §1653(a)(1), (2), added par. (7) and redesignated former par. (7) as
(8). Former par. (8) redesignated (9).
Subsec. (d)(9). Pub. L. 112–239, §1653(a)(3), substituted "shall be a material breach of such contract or
subcontract and may be considered in any past performance evaluation of the contractor" for "shall be a
material breach of such contract or subcontract" in concluding provisions.
Pub. L. 112–239, §1653(a)(1), redesignated par. (8) as (9). Former par. (9) redesignated (10).
Subsec. (d)(10). Pub. L. 112–239, §1653(a)(1), redesignated par. (9) as (10). Former par. (10)
redesignated (11).
Subsec. (d)(11). Pub. L. 112–239, §1653(a)(1), redesignated par. (10) as (11). Former par. (11)
redesignated (12).
Subsec. (d)(11)(C). Pub. L. 112–239, §1653(a)(4), substituted "as a supplement to evaluations performed
by the contracting agency, either on a contract-by-contract basis or, in the case of contractors" for ", either
on a contract-by-contract basis, or in the case contractors".
Subsec. (d)(12), (13). Pub. L. 112–239, §1653(a)(1), redesignated pars. (11) and (12) as (12) and (13),
respectively.
Subsec. (d)(14), (15). Pub. L. 112–239, §1653(a)(5), added pars. (14) and (15).
Subsec. (d)(16). Pub. L. 113–66, §1614(a)(4), added par. (16).
Subsec. (k)(1). Pub. L. 112–239, §1654, substituted "on the appropriate Federal Web site (as determined
by the Administrator)" for "in the Commerce Business Daily".
Subsec. (m)(2)(D) to (F). Pub. L. 112–239, §1697(a), redesignated subpars. (E) and (F) as (D) and (E),
respectively, and struck out former subpar. (D) which read as follows: "the anticipated award price of the
contract (including options) does not exceed"(i) $5,000,000, in the case of a contract assigned an industrial classification code for
manufacturing; or
"(ii) $3,000,000, in the case of all other contracts;".
2010-Subsec. (d)(6)(G). Pub. L. 111–240, §1322, added subpar. (G).
Subsec. (d)(12). Pub. L. 111–240, §1334, added par. (12).
2004-Subsec. (b)(1)(A). Pub. L. 108–447, §132(b), (c), temporarily struck out cl. (ii), substituted "to
provide technical, managerial, and informational aids to small business concerns-" for "to provide"(i) technical, managerial, and informational aids to small business concerns-",
redesignated subcls. (I) to (IV) of former cl. (i) as cls. (i) to (iv), respectively, substituted a period for
"; and" at end of cl. (iv), and redesignated items (aa) and (bb) of former subcl. (II) as subcls. (I) and (II),
respectively.
Subsec. (b)(1)(B). Pub. L. 108–447, §141(a), substituted "purposes of subparagraph (A). To facilitate" for
"purposes of subparagraph (A); and to facilitate", "shall maintain at its headquarters and pay the salaries,

benefits, and expenses of a volunteer and professional staff to manage and oversee the program. Any"
for "may maintain at its headquarters and pay the expenses of a team of volunteers subject to such
conditions and limitations as the Administration deems appropriate: Provided, That any", and "and the
management of the contributions received." for period at end.
Subsec. (b)(17). Pub. L. 108–447, §144, inserted before period at end ", veterans, and members of a
reserve component of the Armed Forces".
2000-Subsec. (a)(15)(A). Pub. L. 106–554, §1(a)(9) [title VIII, §807], amended subpar. (A) generally. Prior
to amendment, subpar. (A) read as follows: "is a not-for-profit organization chartered by the State of
Hawaii,".
Subsec. (b)(1)(A). Pub. L. 106–554, §1(a)(9) [title V, §504(a)], amended subpar. (A) generally. Prior to
amendment, subpar. (A) read as follows: "to provide technical and managerial aids to small-business
concerns, by advising and counseling on matters in connection with Government procurement and
property disposal and on policies, principles, and practices of good management, including but not limited
to cost accounting, methods of financing, business insurance, accident control, wage incentives,
computer security, and methods engineering, by cooperating and advising with voluntary business,
professional, educational, and other nonprofit organizations, associations, and institutions and with other
Federal and State agencies, by maintaining a clearinghouse for information concerning the managing,
financing, and operation of small-business enterprises, including information on the benefits and risks of
franchising, by disseminating such information, and by such other activities as are deemed appropriate by
the Administration; and In the case of cosponsored activities which include the participation of a Federal,
State, or local public official or agency, the Administration shall take such actions as it deems necessary
to ensure that the cooperation does not constitute or imply an endorsement by the Administration of or
give undue recognition to the public official or agency, and the Administration shall ensure that it receives
appropriate recognition in all cosponsored printed materials, whether the participant is a profit making
concern or a governmental agency or public official."
Subsec. (b)(1)(B). Pub. L. 106–554, §1(a)(9) [title VIII, §809], inserted at end "Notwithstanding any other
provision of law, SCORE may solicit cash and in-kind contributions from the private sector to be used to
carry out its functions under this chapter, and may use payments made by the Administration pursuant to
this subparagraph for such solicitation."
Subsec. (d)(1). Pub. L. 106–554, §1(a)(9) [title VIII, §803(1)], inserted "small business concerns owned
and controlled by veterans," after "small business concerns," the first place appearing in the first and
second sentences.
Subsec. (d)(3)(A). Pub. L. 106–554, §1(a)(9) [title VIII, §803(2)(A)], inserted "small business concerns
owned and controlled by service-disabled veterans," after "small business concerns owned and controlled
by veterans," in two places.
Subsec. (d)(3)(F). Pub. L. 106–554, §1(a)(9) [title VIII, §803(2)(B)], inserted "small business concern
owned and controlled by service-disabled veterans," after "small business concern owned and controlled
by veterans,".
Subsec. (d)(4)(D). Pub. L. 106–554, §1(a)(9) [title VIII, §803(3)], inserted "small business concerns
owned and controlled by service-disabled veterans," after "small business concerns owned and controlled
by veterans,".
Pub. L. 106–554, §1(a)(9) [title VI, §615(b)], inserted "qualified HUBZone small business concerns," after
"small business concerns,".
Subsec. (d)(4)(E), (6)(A), (C), (F), (10)(B). Pub. L. 106–554, §1(a)(9) [title VIII, §803(3)], inserted "small
business concerns owned and controlled by service-disabled veterans," after "small business concerns
owned and controlled by veterans,".
Subsec. (e)(1)(A). Pub. L. 106–398, §1 [[div. A], title VIII, §810(c)(1)], substituted "publish" for "furnish for
publication by the Secretary of Commerce" in concluding provisions.
Subsec. (e)(2). Pub. L. 106–398, §1 [[div. A], title VIII, §810(c)(2)], added par. (2) and struck out former
par. (2) which read as follows: "The Secretary of Commerce shall publish promptly in the Commerce
Business Daily each notice required by paragraph (1)."
Subsec. (e)(3). Pub. L. 106–398, §1 [[div. A], title VIII, §810(c)(3)], substituted "publish a notice of
solicitation" for "furnish a notice to the Secretary of Commerce" in introductory provisions and struck out
"by the Secretary of Commerce" after "notice is published" in subpar. (A).
Subsec. (m). Pub. L. 106–554, §1(a)(9) [title VIII, §811], added subsec. (m).
Subsec. (n). Pub. L. 106–554, §1(a)(8) [§2], added subsec. (n).
1999-Subsec. (d)(1). Pub. L. 106–50, §501(a), inserted "small business concerns owned and controlled
by service-disabled veterans," after "small business concerns," in two places.
Subsec. (d)(3)(A). Pub. L. 106–50, §501(b)(1), inserted "small business concerns owned and controlled
by veterans," after "small business concerns," in two places.
Subsec. (d)(3)(E). Pub. L. 106–50, §501(b)(2), added subpar. (E). Former subpar. (E) redesignated (F).

Subsec. (d)(3)(F). Pub. L. 106–50, §501(b)(2), (3), redesignated subpar. (E) as (F) and inserted "small
business concern owned and controlled by veterans," after "small business concern,". Former subpar. (F)
redesignated (G).
Subsec. (d)(3)(G). Pub. L. 106–50, §501(b)(2), redesignated subpar. (F) as (G).
Subsec. (d)(4)(D), (E), (6)(A), (C), (F), (10)(B). Pub. L. 106–50, §501(c), inserted "small business
concerns owned and controlled by veterans," after "small business concerns," the first place appearing.
Subsec. (l). Pub. L. 106–50, §303(a), added subsec. (l).
1997-Subsec. (b)(16). Pub. L. 105–135, §708(3), struck out the par. (16) added by Pub. L. 100–590,
§127(b). See 1988 Amendment note below.
Subsec. (b)(17). Pub. L. 105–135, §708, added par. (17).
Subsec. (d)(1). Pub. L. 105–135, §603(a)(1)(B), inserted "qualified HUBZone small business concerns,"
after "small business concerns," in second sentence.
Pub. L. 105–135, §603(a)(1)(A), which directed substitution of ", qualified HUBZone small business
concerns, small business concerns owned and controlled by socially and economically disadvantaged
individuals" for ",, small business concerns owned and controlled by socially and economically
disadvantaged individuals" in first sentence, was executed by making the substitution for ", small
business concerns owned and controlled by socially and economically disadvantaged individuals" to
reflect the probable intent of Congress and the amendment by Pub. L. 104–106, §4321(c)(1)(A). See 1996
Amendment note below.
Subsec. (d)(3)(A). Pub. L. 105–135, §603(a)(2)(A), inserted "qualified HUBZone small business
concerns," after "small business concerns," in two places.
Subsec. (d)(3)(F). Pub. L. 105–135, §603(a)(2)(B), added subpar. (F).
Subsec. (d)(4)(E). Pub. L. 105–135, §603(a)(3), substituted "small business concerns, qualified
HUBZone small business concerns, and" for "small business concerns and" after "opportunities for".
Subsec. (d)(4)(G). Pub. L. 105–135, §415, added subpar. (G).
Subsec. (d)(6). Pub. L. 105–135, §603(a)(4), inserted "qualified HUBZone small business concerns,"
after "small business concerns," wherever appearing.
Subsec. (d)(10)(B). Pub. L. 105–135, §603(a)(5), inserted "qualified HUBZone small business concerns,"
after "small business concerns,".
Subsec. (e)(1)(C). Pub. L. 105–135, §416(c), substituted "$100,000" for "$25,000" in two places.
Subsec. (g)(1). Pub. L. 105–85 added subpar. (A), redesignated subpars. (C) to (H) as (B) to (G),
respectively, and struck out former subpars. (A) and (B) which read as follows:
"(A) the proposed procurement is for an amount not greater than the simplified acquisition threshold
and is to be made through a system with interim FACNET capability certified pursuant to section 426a(a)(1)
of title 41 or with full FACNET capability certified pursuant to section 426a(a)(2) of title 41;
"(B)(i) the proposed procurement is for an amount not greater than $250,000 and is to be made through
a system with full FACNET capability certified pursuant to section 426a(a)(2) of title 41; and
"(ii) a certification has been made pursuant to section 426a(b) title 41 that Government-wide FACNET
capability has been implemented;".
Subsec. (k). Pub. L. 105–135, §416(a), added subsec. (k).
1996-Subsec. (d)(1). Pub. L. 104–106, §4321(c)(1)(A), substituted "that small business concerns," for
"that small business concerns,,".
Subsec. (d)(6)(C). Pub. L. 104–106, §4321(c)(1)(B), substituted ", small business concerns owned and
controlled by socially and economically disadvantaged individuals, and small business concerns owned
and controlled by women" for "and small business concerns owned and controlled by the socially and
economically disadvantaged individuals".
Subsec. (f)(5). Pub. L. 104–106, §4321(c)(2), inserted "and" at end.
1994-Subsec. (b)(1)(A). Pub. L. 103–403, §407, inserted "including information on the benefits and risks
of franchising," after "small-business enterprises," in first sentence.
Pub. L. 103–403, §401(a)(1), repealed amendments made by Pub. L. 98–362, §5(a), effective Sept. 30,
2003. Amendment by Pub. L. 98–362, §5(a)(2), previously repealed effective Oct. 1, 1994, by section 7(b)
of Pub. L. 98–362, as amended. See Effective and Termination Dates of 1984 Amendments notes below.
Subsec. (b)(1)(G). Pub. L. 103–403, §415, substituted "this chapter and to carry out the activities
authorized by title IV of the Women's Business Ownership Act of 1988" for "this paragraph".
Subsec. (d)(1). Pub. L. 103–355, §7106(b)(1), substituted ", small business concerns owned and
controlled by socially and economically disadvantaged individuals, and small business concerns owned
and controlled by women" for "and small business concerns owned and controlled by socially and
economically disadvantaged individuals" in two places.
Subsec. (d)(2)(A). Pub. L. 103–355, §4404(b), substituted "simplified acquisition threshold" for "small
purchase threshold".

Subsec. (d)(3)(A). Pub. L. 103–355, §7106(b)(1), substituted ", small business concerns owned and
controlled by socially and economically disadvantaged individuals, and small business concerns owned
and controlled by women" for "and small business concerns owned and controlled by socially and
economically disadvantaged individuals" in two places.
Subsec. (d)(3)(D), (E). Pub. L. 103–355, §7106(b)(2), (3), added subpars. (D) and (E) and struck out
former subpar. (D) which read as follows: " 'Contractors acting in good faith may rely on written
representations by their subcontractors regarding their status as either a small business concern or a
small business concern owned and controlled by socially and economically disadvantaged individuals.' "
Subsec. (d)(4)(D). Pub. L. 103–355, §7106(b)(1), substituted ", small business concerns owned and
controlled by socially and economically disadvantaged individuals, and small business concerns owned
and controlled by women" for "and small business concerns owned and controlled by socially and
economically disadvantaged individuals".
Subsec. (d)(4)(E). Pub. L. 103–355, §7106(b)(4), inserted "and for small business concerns owned and
controlled by women" after "(3) of this subsection".
Subsec. (d)(6)(A). Pub. L. 103–355, §7106(b)(1), substituted ", small business concerns owned and
controlled by socially and economically disadvantaged individuals, and small business concerns owned
and controlled by women" for "and small business concerns owned and controlled by socially and
economically disadvantaged individuals".
Subsec. (d)(6)(C). Pub. L. 103–355, §7106(b)(1), which directed that subpar. (C) be amended by
substituting ", small business concerns owned and controlled by socially and economically disadvantaged
individuals, and small business concerns owned and controlled by women" for "and small business
concerns owned and controlled by socially and economically disadvantaged individuals", could not be
executed because the words "and small business concerns owned and controlled by socially and
economically disadvantaged individuals" did not appear in subpar. (C).
Subsec. (d)(6)(F), (10)(B). Pub. L. 103–355, §7106(b)(1), substituted ", small business concerns owned
and controlled by socially and economically disadvantaged individuals, and small business concerns
owned and controlled by women" for "and small business concerns owned and controlled by socially and
economically disadvantaged individuals".
Subsec. (e)(1). Pub. L. 103–355, §4202(d)(1)(A), substituted "$25,000" for "the small purchase threshold"
wherever appearing.
Subsec. (e)(3)(B). Pub. L. 103–355, §4202(d)(1)(B), inserted "in the case of a contract or order estimated
to be greater than the simplified acquisition threshold," after "(B)".
Subsec. (f)(6). Pub. L. 103–355, §4202(d)(2), added par. (6).
Subsec. (g)(1)(A) to (E). Pub. L. 103–355, §4202(d)(3)(A), (B), added subpars. (A) and (B) and
redesignated former subpars. (A) to (C) as (C) to (E), respectively. Former subpars. (D) and (E)
redesignated (F) and (G), respectively.
Subsec. (g)(1)(F). Pub. L. 103–355, §4202(d)(3)(A), redesignated subpar. (D) as (F). Former subpar. (F)
redesignated (H).
Pub. L. 103–355, §1055(b)(2), added subpar. (F).
Subsec. (g)(1)(G), (H). Pub. L. 103–355, §4202(d)(3)(A), redesignated subpars. (E) and (F) as (G) and
(H), respectively.
1992-Subsec. (a). Pub. L. 102–366, §232(a)(1)–(5), substituted semicolon for period at end of par. (1)(B),
"; and" for period at end of par. (1)(C), "to subparagraph (A)" for "to (A)" in par. (6)(C)(i), "636(j)(10)(G)"
for "636(j)(10)(H)" in par. (6)(C)(ii), and "to subparagraph (D)" for "to (D)" in par. (12)(E).
Subsec. (b)(1)(E) to (G). Pub. L. 102–564, §304, added subpar. (E) and redesignated former subpars. (E)
and (F) as (F) and (G), respectively.
Subsec. (c). Pub. L. 102–366, §232(a)(7), designated subsec. (c) as reserved. Former subsec. (c)
redesignated (d).
Subsec. (d). Pub. L. 102–366, §232(a)(6), (8), redesignated subsec. (c) as (d) and substituted
"imposition" for "impositon" in par. (4)(F)(ii). Former subsec. (d) redesignated (e).
Subsec. (d)(11), (12). Pub. L. 102–564, §303(a), redesignated par. (12) as (11) and struck out former par.
(11) which read as follows: "At the conclusion of each fiscal year, the Administration shall submit to the
Senate Select Committee on Small Business and the Committee on Small Business of the House of
Representatives a report on subcontracting plans found acceptable by any Federal agency which the
Administration determines do not contain maximum practicable opportunities for small business concerns
and small business concerns owned and controlled by socially and economically disadvantaged
individuals to participate in the performance of contracts described in this subsection."
Subsecs. (e) to (g). Pub. L. 102–366, §232(a)(6), redesignated subsecs. (d) to (f) as (e) to (g),
respectively. Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 102–366, §232(a)(6), (9), redesignated subsec. (g) as (h) and substituted
"Administrative" for "Administration" in par. (2). Former subsec. (h) redesignated (i).

Subsecs. (i), (j). Pub. L. 102–366, §232(a)(6), redesignated subsecs. (h) and (i) as (i) and (j),
respectively.
1991-Subsec. (c). Pub. L. 102–191 redesignated subsec. (d) as (c) and struck out former subsec. (c)
which related to management and technical assistance for small businesses owned by women. See
section 656 of this title.
Subsec. (d). Pub. L. 102–191 redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
Subsec. (d)(12). Pub. L. 102–190 added par. (12).
Subsecs. (e) to (j). Pub. L. 102–191, which directed the redesignation of subsecs. (e) to (j) as (d) to (k),
was executed by redesignating subsecs. (e) to (j) as (d) to (i), respectively, to reflect the probable intent of
Congress.
1990-Subsec. (a)(1). Pub. L. 101–574, §207(2), struck out after subpar. (C) "No contract may be entered
into under subparagraph (B) after September 30, 1988."
Subsec. (a)(1)(B). Pub. L. 101–574, §207(1), (3), redesignated subpar. (C) as (B) and struck out former
subpar. (B) which read as follows: "to enter into contracts with such agency as shall be designated by the
President, to furnish articles, equipment, supplies, services, or materials, or to perform construction work
for such agency. In any case in which the Administration certifies to any officer of such agency having
procurement powers that the Administration is competent and responsible to perform any specific
procurement contract to be let by any such officer, such officer shall let such procurement contract to the
Administration upon such terms and conditions as may be agreed upon between the Administration and
the procurement officer. If the Administration and such procurement officer fail to agree on such terms
and conditions, either the Administration or such officer shall promptly notify, in writing, the head of such
agency. The head of such agency shall have five days (exclusive of Saturdays, Sundays, and legal
holidays) to establish the terms and conditions upon which such procurement contract may be let to the
Administration, and shall communicate in writing to the Administration the terms and conditions so
established. Within five days (exclusive of Saturdays, Sundays, and legal holidays) after the receipt of
such written communication, the Administration shall decide whether to perform such procurement
contract or withdraw its prior certification that the Administration is competent and responsible to perform
such contract; and".
Subsec. (a)(1)(C). Pub. L. 101–574, §207(4), added subpar. (C). Former subpar. (C) redesignated (B).
Subsec. (a)(4)(A)(i)(II), (ii)(II). Pub. L. 101–574, §204(b), inserted "(or a wholly owned business entity of
such tribe)" after "tribe".
Subsec. (a)(17)(B)(iv). Pub. L. 101–574, §210, amended cl. (iv) generally. Prior to amendment, cl. (iv)
read as follows: "represent that it will supply the product of a domestic small business manufacturer or
processor, except that, the Administrator may waive the application of the clause, as it pertains to the
furnishing of a product manufactured or processed by a small business, for any class of products for
which there are no small business manufacturers or processors in the Federal market."
Subsec. (d)(2)(A). Pub. L. 101–510, §806(e)(2)(A), substituted "the small purchase threshold" for
"$10,000".
Subsec. (e)(1)(A). Pub. L. 101–510, §806(e)(2)(B), inserted "or" at end of subcl. (i), substituted a comma
for "; or" at end of subcl. (ii), substituted "the small purchase threshold" for "$25,000" in subcls. (i) and (ii),
and struck out subcl. (iii) which read as follows: "solicit bids or proposals for a contract for property or
services for a price expected to exceed $10,000, if there is not a reasonable expectation that at least two
offers will be received from responsive and responsible offerors,".
Subsec. (e)(1)(B), (C). Pub. L. 101–510, §806(e)(2)(B)(i), substituted "the small purchase threshold" for
"$25,000" wherever appearing.
Subsec. (g)(1). Pub. L. 101–574, §244, substituted "subsection (e)(1)" for "subsection (a)(1)".
1989-Subsec. (a)(1)(D)(i). Pub. L. 101–37, §10(c), substituted "Program Participants" for "program
participants".
Subsec. (a)(4)(A)(i). Pub. L. 101–37, §6(d)(1), inserted "unconditionally" after "per centum".
Subsec. (a)(4)(A)(ii). Pub. L. 101–37, §6(d)(2), inserted "unconditionally" after "which is".
Subsec. (a)(6)(C). Pub. L. 101–37, §7(b), which directed substitution of "636(j)(10)(G)" for "636(j)(10)(H)"
in cl. (iii), could not be executed because there was no cl. (iii). See 1992 Amendment note above.
Subsec. (a)(9). Pub. L. 101–37, §17, substituted "Administration" for "Administrator" in subpar. (A),
"section 636(j)(10)(G) of this title" for "section 636(j)(10)(H) of this title" in subpar. (B)(iii), and "Administration's"
for "Administrator's" in subpar. (C).
Subsec. (a)(15). Pub. L. 101–37, §6(b), substituted "Organization" for "organizations".
Subsec. (a)(17)(B)(ii) to (iv). Pub. L. 101–37, §10(e), added cl. (ii) and redesignated former cls. (ii) and
(iii) as (iii) and (iv), respectively.
Subsec. (a)(18)(A). Pub. L. 101–37, §12, struck out "certified" before "during such person's term".
Subsec. (a)(19)(B). Pub. L. 101–37, §13, struck out ", imposed by the Administrator," after "disciplinary
action".

Subsec. (a)(20)(A). Pub. L. 101–37, §14, substituted "Business Opportunity Specialist" for "business
opportunity specialist".
Subsec. (a)(21). Pub. L. 101–37, §16, in subpar. (B) struck out discretionary authority of the Administrator
and preconditions respecting request prior to relinquishment of ownership or control in introductory
provisions, added subpar. (C), and redesignated former subpars. (C) and (D) as (D) and (E), respectively.
Subsec. (b)(1)(A). Pub. L. 101–162 amended last sentence generally, substituting "the Administration
shall ensure that it receives appropriate recognition in all cosponsored printed materials, whether the
participant is a profit making concern or a governmental agency or public official" for "that the
Administration is given primary recognition in all cosponsored printed materials, whether the participant is
a profit-making concern or a governmental agency or official".
1988-Subsec. (a)(1)(A). Pub. L. 100–656, §303(d), inserted provisions authorizing Administration appeal
from procurement officer's adverse decisions and providing for decision by the Secretary or agency head
on the appeal.
Subsec. (a)(1)(D). Pub. L. 100–656, §303(b), added subpar. (D).
Subsec. (a)(3). Pub. L. 100–656, §303(e), amended par. (3) generally. Prior to amendment, par. (3) read
as follows: "Any small business concern selected by the Administration to perform any Federal
Government procurement contract to be let pursuant to this subsection shall, when practicable,
participate in any negotiation of the terms and conditions of such contract."
Subsec. (a)(4). Pub. L. 100–656, §207(c), amended par. (4) generally, in subpar. (A)(i) adding subcl. (III),
in subpar. (A)(ii) adding subcl. (III), and in subpar. (B) adding cl. (iii).
Subsec. (a)(4)(C). Pub. L. 100–656, §209(b), added subpar. (C).
Subsec. (a)(6). Pub. L. 100–656, §209(a), designated existing provisions as subpar. (A) and added
subpars. (B) to (E).
Subsec. (a)(7). Pub. L. 100–656, §303(g), designated existing provisions as subpar. (A) and added
subpar. (B).
Subsec. (a)(9). Pub. L. 100–656, §409, amended par. (9) generally. Prior to amendment, par. (9) read as
follows: "Within ninety days after the effective date of this paragraph, the Administration shall publish in
the Federal Register rules setting forth those conditions or circumstances pursuant to which a firm
previously deemed eligible by the Administration may be denied assistance under the provisions of this
subsection: Provided, That no such firm shall be denied total participation in any program conducted under
the authority of this subsection without first being afforded a hearing on the record in accordance with
chapter 5 of title 5."
Subsec. (a)(10). Pub. L. 100–656, §201(b), inserted sentence at end requiring such program to make a
sustained and substantial effort to solicit applications for certification from small business concerns
located in areas of concentrated unemployment or underemployment.
Subsec. (a)(12). Pub. L. 100–656, §501, amended par. (12) generally. Prior to amendment, par. (12) read
as follows: "To the maximum extent practicable the Associate Administrator for Minority Small Business
and Capital Ownership Development shall submit, no less frequently than annually, a yearly estimate of
the dollar amounts and types of contracts required for the efficient use of any program conducted under
the authority of this subsection, to each agency which may participate in such program."
Subsec. (a)(15). Pub. L. 100–656, §207(a), added par. (15).
Subsec. (a)(16). Pub. L. 100–656, §303(c), added par. (16).
Subsec. (a)(17). Pub. L. 100–656, §303(h), added par. (17).
Subsec. (a)(18). Pub. L. 100–656, §402, added par. (18).
Subsec. (a)(19). Pub. L. 100–656, §403, added par. (19).
Subsec. (a)(20). Pub. L. 100–656, §404, added par. (20).
Subsec. (a)(21). Pub. L. 100–656, §407, added par. (21).
Subsec. (b)(1)(A). Pub. L. 100–590, §131(b), inserted "that any Administration program participating in
such cosponsored activities receives appropriate recognition and publicity, and" in provisions preceding
cl. (i), inserted ", executed on behalf of the agency by an employee of the agency in Washington, District
of Columbia, and who shall also approve, in advance, any printed materials to be distributed at the
conference," in cl. (1), and inserted provisions at end which authorized Administration, in case of
cosponsored activities, to ensure that cooperation does not constitute endorsement or give undue
recognition to public official or agency, and that Administration is given primary recognition in all
cosponsored printed materials.
Subsec. (b)(16). Pub. L. 100–533, §202, and Pub. L. 100–590, §127(b), made identical amendments
adding par. (16).
Subsec. (c). Pub. L. 100–590, §127(a), amended subsec. (c) generally, inserting provisions substantially
identical to provisions contained in prior general amendment by Pub. L. 100–533, §201.
Pub. L. 100–533, §201, amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows:
"The Administration shall from time to time make studies of matters materially affecting the competitive

strength of small business, and of the effect on small business of Federal laws, programs, and
regulations, and shall make recommendations to the appropriate Federal agency or agencies for the
adjustment of such programs and regulations to the needs of small business."
Subsec. (d)(4)(F). Pub. L. 100–656, §304(a), added subpar. (F).
1987-Subsec. (a)(14)(B), (C). Pub. L. 100–26, §10(b)(3), substituted "section 644(o)" for "section 644(n)".
1986-Subsec. (a)(1). Pub. L. 99–567, §2, substituted provision that no contract may be entered into under
subpar. (B) after Sept. 30, 1988, for provision that no such contract could be entered into prior to Oct. 1,
1983, nor after Sept. 30, 1985, in closing provisions.
Subsec. (a)(1)(A). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§921(b)(2)], Pub. L. 99–661, §921(b)(2),
amended subpar. (A) identically, inserting provision that a contract not be awarded if the award would
result in a cost to the awarding agency which exceeds a fair market price.
Subsec. (a)(1)(B). Pub. L. 99–567, §1(a), struck out "(other than the Department of Defense or any
component thereof)" after "contracts with such agency".
Subsec. (a)(2). Pub. L. 99–567, §3, substituted provision that the authority to waive bonds as provided in
par. (2) may not be exercised after Sept. 30, 1988, for provision that such authority could not be
exercised prior to Oct. 1, 1983, nor after Sept. 30, 1985, in closing provisions.
Subsec. (a)(4). Pub. L. 99–272, §18015(b), in amending par. (4) generally, included economically
disadvantaged Indian tribe within definition of "socially and economically disadvantaged small business
concern".
Subsec. (a)(6). Pub. L. 99–272, §18015(c), inserted provision enumerating factors to be considered by
the Administration in determining the economic disadvantage of an Indian tribe.
Subsec. (a)(13). Pub. L. 99–272, §18015(d), added par. (13).
Subsec. (a)(14). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§921(c)(1)], Pub. L. 99–661, §921(c)(1),
amended subsec. (a) identically, adding par. (14).
Subsec. (e)(1). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§921(a)], Pub. L. 99–661, §921(a), amended
par. (1) identically, in subpar. (A) substituting "$25,000" for "$10,000" in cls. (i) and (ii), adding cl. (iii), and
in provision following cl. (iii) substituting "subsection (f)" for "subsection (b)", adding subpar. (B), and
redesignating former subpar. (B) as (C).
Subsec. (f). Pub. L. 99–500 and Pub. L. 99–591, §101(c) [§922(d)], Pub. L. 99–661, §922(d), amended
subsec. (f) identically, substituting "subparagraph (A) or (B) of subsection (e)(1)" for "subsection (e)(1)(A)"
in provisions preceding par. (1).
1984-Subsec. (b)(1)(A). Pub. L. 98–362, §5(a)(2), which inserted provisions at end of subpar. (A) relating
to providing of assistance through cooperation of cosponsors, and provisions respecting activities of the
Administration related to furnishing of assistance by cosponsors, was repealed effective Oct. 1, 1994, by
Pub. L. 98–362, §7(b), as amended, and effective Sept. 30, 2003, by Pub. L. 103–403, §401(a), as amended.
See Effective and Termination Dates of 1984 Amendments notes below.
Pub. L. 98–362, §5(a)(1), which inserted "computer security," after "wage incentives,", was repealed
effective Sept. 30, 2003, by Pub. L. 103–403, §401(a), as amended. See Effective and Termination Dates of
1984 Amendments note below.
Subsec. (b)(7)(C). Pub. L. 98–577, §401, inserted "Notwithstanding the first sentence of this
subparagraph, the Administration may not establish an exemption from referral or notification or refuse to
accept a referral or notification from a Government procurement officer made pursuant to subparagraph
(A) or (B) of this paragraph, but nothing in this paragraph shall require the processing of an application for
certification if the small business concern to which the referral pertains declines to have the application
processed."
Subsec. (d)(1). Pub. L. 98–577, §402(a), inserted ", including contracts and subcontracts for subsystems,
assemblies, components, and related services for major systems. It is further the policy of the United
States that its prime contractors establish procedures to ensure the timely payment of amounts due
pursuant to the terms of their subcontracts with small business concerns and small business concerns
owned and controlled by socially and economically disadvantaged individuals".
Subsec. (d)(3)(A). Pub. L. 98–577, §402(b), inserted ", including contracts and subcontracts for
subsystems, assemblies, components, and related services for major systems. It is further the policy of
the United States that its prime contractors establish procedures to ensure the timely payment of
amounts due pursuant to the terms of their subcontracts with small business concerns and small
business concerns owned and controlled by socially and economically disadvantaged individuals".
Subsecs. (e) to (j). Pub. L. 98–577, §404(a), added subsecs. (e) to (j) and struck out former subsec. (e)
which related to notice and publication of procurement actions, exceptions, departmental procedures,
contents of notice, sole source contracts and unsolicited proposals.
1983-Subsec. (a)(1). Pub. L. 98–47, §2, substituted provision that no contract may be entered into under
subpar. (B) prior to Oct. 1, 1983, nor after Sept. 30, 1985, for provision that such contracts may not be
entered into after Sept. 30, 1981.

Subsec. (a)(1)(B). Pub. L. 98–47, §1(a), substituted "(other than the Department of Defense or any
component thereof) as shall be designated by the President" for ", as shall be designated by the
President within 60 days after the effective date of this paragraph".
Subsec. (a)(2). Pub. L. 98–47, §3, substituted provision that the authority to waive bonds as provided in
par. (2) may not be exercised prior to Oct. 1, 1983, nor after Sept. 30, 1985, for provision that par. (2)
shall not apply after Sept. 30, 1981.
Subsec. (e). Pub. L. 98–72 amended subsec. (e) generally, designating existing provisions as par. (1)
and in par. (1) as so designated substituting: "It shall be the duty of the Secretary of Commerce, and the
Secretary is hereby empowered, to obtain notice of all proposed competitive and noncompetitive civilian
and defense procurement actions of $10,000 and above from any Federal department, establishment or
agency (hereinafter in this subsection referred to as 'department') engaged in procurement of property,
supplies, and services in the United States; and to publicize such notices in the daily publication
Commerce Business Daily, immediately after the necessity for the procurement is established: Provided,
That nothing in this paragraph shall require publication of such notices with respect to those
procurements in which it is determined on a case-by-case basis that (A) the procurement for security
reasons is of a classified nature; (B) the Federal department's need for the property, supplies, or services
is of such unusual and compelling urgency that the Government would be seriously injured if the time
periods provided for in paragraph (2) were complied with; (C) a foreign government reimburses the
Federal department for the cost of the procurement of the property, supplies, or services for such
government and only one source is available, or the terms of an international agreement or treaty
between the United States and a foreign government authorize or require that all such procurement shall
be from sources specified within such international agreement or treaty; (D) the procurement is made
from another Government department or agency, or a mandatory source of supply; (E) the procurement is
for utility services and only one source is available; (F) the procurement is made against an order placed
under a requirement or similar contract, including orders for perishable subsistence supplies; (G) the
procurement results from acceptance of a proposal pursuant to the Small Business Innovation
Development Act of 1982 or an unsolicited proposal that demonstrates a unique or innovative research
concept and publication of such unsolicited proposal would improperly disclose the originality of thought
or innovativeness of the proposed research; or (H) it is determined in writing by the head of the Federal
department, with the concurrence of the Administrator, that advance notice is not appropriate or
reasonable" for "It shall be the duty of the Secretary of Commerce, and he is empowered, to obtain notice
of all proposed defense procurement actions of $10,000 and above, and all civilian procurement actions
of $5,000 and above, from any Federal department, establishment, or agency engaged in procurement of
supplies and services in the United States; and to publicize such notices in the daily publication 'United
States Department of Commerce Synopsis of the United States Government Proposed Procurements,
Sales, and Contract Awards', immediately after the necessity for the procurement is established; except
that nothing herein shall require publication of such notices with respect to those procurements (1) which
for security reasons are of a classified nature, or (2) which involve perishable subsistence supplies, or (3)
which are for utility services and the procuring agency in accordance with applicable law has
predetermined the utility concern to whom the award will be made, or (4) which are of such unusual and
compelling emergency that the Government would be seriously injured if bids or offers were permitted to
be made more than 15 days after the issuance of the invitation for bids or solicitation for proposals, or (5)
which are made by an order placed under an existing contract, or (6) which are made from another
Government department or agency, or a mandatory source of supply, or (7) which are for personal or
professional services, or (8) which are for services from educational institutions, or (9) in which only
foreign sources are to be solicited, or (10) for which it is determined in writing by the procuring agency,
with the concurrence of the Administrator, that advance publicity is not appropriate or reasonable", and
adding pars. (2) to (6).
1980-Subsec. (a)(1), (2). Pub. L. 96–481, §101, substituted "September 30, 1981" for "September 30,
1980".
Subsec. (a)(8). Pub. L. 96–481, §105, substituted provisions that all determinations may pursuant to par.
(5) with respect to whether a group has been subjected to prejudice or bias shall be made by the
Administrator after consultation with the Associate Administrator for Minority Small Business and Capital
Ownership Development and that all other determinations made pursuant to (4), (5), (6), and (7) shall be
made by the Associate Administrator for Minority Small Business and Capital Ownership Development
under the supervision of, and responsible to the Administrator, for provision that all determinations made
pursuant to pars. (4), (5), (6) and (7), shall be made by the Associate Administrator for Minority Small
Business and Capital Ownership Development.
Subsec. (d)(3)(C). Pub. L. 96–302 included in the presumption of being disadvantaged individuals Asian
Pacific Americans.

1978-Subsec. (a). Pub. L. 95–507, §202(a), redesignated pars. (1) and (2) as (1)(A) and (C) and as
redesignated inserted provision giving the Administration sole discretion in choosing procurement
requirements from agencies or departments for use in the program, provided that the terms and
conditions of the proposed contract are to be negotiated, made provision for the submission of
stalemated matters for resolution, and added pars. (1)(B) and (2) to (12).
Subsec. (b)(1). Pub. L. 95–510 substituted in subpar. (B) provisions relating to the establishment and
implementation of volunteer programs for provisions relating to the use of office facilities etc., and the
payment of transportation expenses and per diem allowances and added subpars. (C) to (F).
Subsec. (d). Pub. L. 95–507, §211, substituted provisions relating to the performance of contracts by
small business concerns, requiring, among other things, the inclusion of a specific contract clause in most
Federal prime contracts, requiring as a condition of the solicitation of any offer of a Federal contract in
excess of $500,000, the submission of a summary contract plan, and relating to incentives for small
business subcontracting, contract eligibility, breach of contract or subcontract, administrative review of
contract solicitation and subcontract planning, and relating to submission to congressional committees of
a report on subcontracting plans for provisions relating generally to the small business subcontract
program and regulations issued thereunder.
1977-Subsec. (b)(7). Pub. L. 95–89, in revising par. (7), incorporated existing introductory text in
provisions designated subpar. (A) and substituted "with respect to all elements of responsibility, including,
but not limited to, capability, competency, capacity, credit, integrity, perseverance, and tenacity, of any
small business concern or group of such concerns to receive and perform a specific Government
contract" for "with respect to the competency, as to capacity and credit, of any small-business concern or
group of such concerns to perform a specific Government contract"; added subpar. (B); and incorporated
existing end text in provisions designated subpar. (C), substituting therein "certified by the Administration
pursuant to (A) or (B) to be a responsible or eligible Government contractor as to a specific Government
contract" for "certified by or under the authority of the Administration to be a competent Government
contractor with respect to capacity and credit as to a specific Government contract" and "shall let" and
"other requirement of responsibility or eligibility" for "are authorized to let" and "other requirement with
respect to capacity and credit".
1970-Subsec. (b)(15). Pub. L. 91–375 substituted "section 3204 of title 39" for "section 4154 of title 39".
1967-Subsec. (b)(1)(B). Pub. L. 90–104, §105, designated existing provisions as cl. (i) and added cl. (ii).
Subsec. (b)(13). Pub. L. 90–104, §106, substituted "advisory boards and committees" for "small business
advisory boards and committees truly representative of small business", included achievement of
purposes of the Small Business Investment Act of 1958, and required the Administrator to call board and
committee meetings, pay transportation expenses and per diem allowances, and rent temporarily
necessary accommodations to facilitate conduct of meetings.
Subsec. (b)(15). Pub. L. 90–104, §107, added par. (15).
1966-Subsec. (b)(1). Pub. L. 89–754 designated existing provisions as subpar. (A) and added subpar.
(B).
1964-Subsec. (b)(14). Pub. L. 88–560 added par. (14).
1961-Subsec. (d). Pub. L. 87–305, §7, added subsec. (d).
Subsec. (e). Pub. L. 87–305, §8, added subsec. (e).
Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment
Amendment by section 1701(a)(4)(C) of Pub. L. 115–91 effective Jan. 1, 2020, see section 1701(j) of
Pub. L. 115–91, set out as a note under section 657a of this title.

Effective Date of 2016 Amendment
Amendment by section 1832(c) of Pub. L. 114–328 effective on the date on which the Administrator of the
Small Business Administration and the Secretary of Veterans Affairs jointly issue implementing
regulations [regulations effective Oct. 1, 2018], see section 1832(e) of Pub. L. 114–328, set out as a note
under section 632 of this title.

Termination Date of 2004 Amendment
Amendment by section 132(b) of Pub. L. 108–447 repealed Oct. 1, 2006, see section 132(c) of Pub. L.
108–447, set out as a note under section 633 of this title.

Effective Date of 2000 Amendment

Pub. L. 106–398, §1 [[div. A], title VIII, §810(e)], Oct. 30, 2000, 114 Stat. 1654 , 1654A-210, provided that:
"The amendments made by this section [amending this section and sections 416 and 426 of Title 41, Public
Contracts] shall take effect on October 1, 2000. The amendments made by subsections (a), (b), and (c)
[amending this section and section 416 of Title 41] shall apply with respect to solicitations issued on or after
that date."

Effective Date of 1997 Amendments
Amendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note
under section 631 of this title.
Pub. L. 105–85, div. A, title VIII, §850(g), Nov. 18, 1997, 111 Stat. 1850 , provided that:
"(1) Except as provided in paragraph (2), the amendments made by this section [amending this section,
former sections 2302c and 2304 of Title 10, Armed Forces, section 1501 of former Title 40, Public Buildings,
Property, and Works, and sections 252c, 253, 416, 426, and 427 of Title 41, Public Contracts, repealing section
426a of Title 41, amending provisions set out as a note under section 413 of Title 41, and repealing provisions
set out as a note under section 426a of Title 41] shall take effect 180 days after the date of the enactment of
this Act [Nov. 18, 1997].
"(2) The repeal made by subsection (c) of this section [repealing provisions set out as a note under
section 426a of Title 41] shall take effect on the date of the enactment of this Act."

Effective Date of 1996 Amendment
For effective date and applicability of amendment by Pub. L. 104–106, see section 4401 of Pub. L. 104–
106, set out as a note under section 2220 of Title 10, Armed Forces.

Effective Date of 1994 Amendment
For effective date and applicability of amendment by Pub. L. 103–355, see section 10001 of Pub. L. 103–
355, set out as a note under section 8752 of Title 10, Armed Forces.

Effective Date of 1989 Amendment
Amendment by Pub. L. 101–37 applicable as if included in Pub. L. 100–656, see section 32 of Pub. L. 101–
37, set out as a note under section 631 of this title.

Effective Date of 1988 Amendment
Amendment by sections 207(a), (c) and 303(d), (e) of Pub. L. 100–656 effective Nov. 15, 1988, see
section 803(a) of Pub. L. 100–656, set out as a note under section 631 of this title.
Amendment by sections 201(b), 303(c), (g), (h), 304(a), 402–404, and 409 of Pub. L. 100–656 effective
Aug. 15, 1989, see section 803(b)(1)(A)–(C) of Pub. L. 100–656, as amended, set out as a note under
section 631 of this title.
Amendment by section 407 of Pub. L. 100–656 effective with respect to contracts entered into on or after
June 1, 1989, see section 803(b)(3) of Pub. L. 100–656, as amended, set out as a note under section 631 of
this title.
Amendment by sections 209 and 303(b) of Pub. L. 100–656 effective Oct. 1, 1989, see section 803(b)(4)
(A), (B) of Pub. L. 100–656, as amended, set out as a note under section 631 of this title.

Effective Date of 1987 Amendment
Amendment by section 10(b)(3) of Pub. L. 100–26 applicable as if included in each instance of the
Defense Acquisition Improvement Act (as specified in section 2 of Pub. L. 100–26) [title X of section 101(c)
of Pub. L. 99–500 and Pub. L. 99–591, and title IX of div. A of Pub. L. 99–661] when each was enacted [Oct. 18,
1986, Oct. 30, 1986, and Nov. 14, 1986, respectively], see section 12(c) of Pub. L. 100–26, set out as a
note under section 632 of this title.

Effective Date of 1986 Amendment
Amendment by section 101(c) [title X, §921(b)(2), (c)(1)] of Pub. L. 99–500 and Pub. L. 99–591, and section
921(b)(2), (c)(1) of Pub. L. 99–661 effective Oct. 1, 1987, see section 101(c) of Pub. L. 99–500 and Pub. L.
99–591, and section 921(g) of Pub. L. 99–661, set out as a note under section 632 of this title.

Effective and Termination Dates of 1984 Amendments
Pub. L. 103–403, title IV, §401(a), Oct. 22, 1994, 108 Stat. 4190 , as amended by Pub. L. 105–135, title V,
§504, Dec. 2, 1997, 111 Stat. 2624 ; Pub. L. 106–554, §1(a)(9) [title V, §504(b)], Dec. 21, 2000, 114 Stat. 2763
, 2763A-696, provided that:

"(1) Repeal.-The amendments made by section 5(a) of Small Business Computer Security and
Education Act of 1984 [Pub. L. 98–362, amending this section] (15 U.S.C. 633 note) are hereby repealed.
"(2) Effective date.-Paragraph (1) shall take effect on September 30, 2003."
[Repeal by section 401(a) of Pub. L. 103–403, set out as a note above, effective Sept. 30, 1997, was not
executed to reflect the probable intent of Congress and subsequent amendment by Pub. L. 105–135,
changing the effective date to Sept. 30, 2000. Similarly, repeal effective Sept. 30, 2000, was not executed
because of subsequent amendment by Pub. L. 106–554, changing the effective date to Sept. 30, 2003.]
Amendment by section 5(a)(1), (2) of Pub. L. 98–362 effective Oct. 1, 1984, and amendment by section
5(a)(2) of Pub. L. 98–362 repealed Oct. 1, 1994, see section 7 of Pub. L. 98–362, as amended, set out as a
note under section 633 of this title.
Pub. L. 98–577, title IV, §404(b), Oct. 30, 1984, 98 Stat. 3084 , provided that: "The amendment made by
subsection (a) [amending this section] shall take effect with respect to any solicitation for bids or
proposals issued after March 31, 1985."

Effective Date of 1983 Amendments
Pub. L. 98–72, §1(b)(1), (2), Aug. 11, 1983, 97 Stat. 403 , provided that:

"(1) Except as to the amendments made to section 8(e)(4) of the Small Business Act as added by
section (a) of this Act [subsec. (e)(4) of this section], the amendments made by this Act [amending this
section] shall apply to procurement actions initiated ninety days after the date of enactment of this Act
[Aug. 11, 1983].
"(2) The amendments made to section 8(e)(4) of the Small Business Act as added by section (a) of this
Act shall apply to procurement actions initiated on or after October 1, 1983."
Pub. L. 98–47, §1(b), July 13, 1983, 97 Stat. 243 , provided that: "The designation of an agency pursuant
to the amendment made by subsection (a) [amending this section] shall be made not later than sixty days
after the date of enactment of this Act [July 13, 1983]."

Effective Date of 1980 Amendment
Amendment by Pub. L. 96–302 effective Oct. 1, 1980, see section 507 of Pub. L. 96–302, set out as a note
under section 631 of this title.

Effective Date of 1978 Amendment
Amendment by Pub. L. 95–510 effective Oct. 1, 1979, see section 105 of Pub. L. 95–510, set out as a note
under section 634 of this title.

Effective Date of 1970 Amendment
For effective date of amendment by Pub. L. 91–375, see section 15(a) of Pub. L. 91–375, set out as an
Effective Date note preceding section 101 of Title 39, Postal Service.

Regulations
Pub. L. 118–31, div. A, title VIII, §862(b), Dec. 22, 2023, 137 Stat. 347 , provided that: "Not later than 180
days after the date of the enactment of this Act [Dec. 22, 2023], the Administrator shall submit to the
Federal Acquisition Regulatory Council proposed revisions to regulations that the Administrator
determines necessary to carry out the amendments made by this section [amending this section]."
Pub. L. 116–283, div. A, title VIII, §868(c), Jan. 1, 2021, 134 Stat. 3787 , provided that: "Not later than 120
days after the date of the enactment of this Act [Jan. 1, 2021], the Administrator of the Small Business
Administration shall issue rules to carry out this section [amending this section and section 644 of this title]
and the amendments made by this section."
Pub. L. 108–447, div. K, title I, §141(b), Dec. 8, 2004, 118 Stat. 3454 , provided that: "The Administration
shall, not later than 180 days after the date of enactment of this Act [Dec. 8, 2004], promulgate
regulations to carry out the amendments made by subsection (a) [amending this section]."
Pub. L. 106–50, §303(c), Aug. 17, 1999, 113 Stat. 243 , provided that: "Not later than 30 days after the
date of the enactment of this section [Aug. 17, 1999], the Administrator of the Small Business
Administration shall issue such guidelines as the Administrator determines to be necessary to carry out
this section [amending this section and enacting provisions set out as a note under this section] and the
amendment made by this section."

Transfer of Functions
Transfer to Director of ACTION [now Corporation for National and Community Service] of functions of
Small Business Administration under subsec. (b) of this section insofar as they relate to individuals or
groups of persons cooperating with it in the furtherance of purposes of this section, except that such

individuals or groups of persons, in providing technical and managerial aids to small concerns, remain
subject to direction of Small Business Administration. See section 601 of Pub. L. 93–113, 87 Stat. 416 ,
formerly set out as a note under section 5041 of Title 42, The Public Health and Welfare, which superseded
section 2(a)(3) of Reorg. Plan No. 1 of 1971, eff. July 1, 1971, 36 F.R. 11181, 85 Stat. 819, set out in the
Appendix to Title 5, Government Organization and Employees.

Extension of Participation in 8(a) Program
Pub. L. 116–283, div. A, title VIII, §869, Jan. 1, 2021, 134 Stat. 3787 , provided that:
"(a) In General.-The Administrator of the Small Business Administration shall ensure that a small

business concern participating in the program established under section 8(a) of the Small Business Act
(15 U.S.C. 637[a]) on or before September 9, 2020, may elect to extend such participation by a period of 1
year, regardless of whether such concern previously elected to suspend participation in such program
pursuant to guidance of the Administrator.
"(b) Emergency Rulemaking Authority.-Not later than 15 days after the date of enactment of this section
[Jan. 1, 2021], the Administrator shall issue regulations to carry out this section without regard to the
notice requirements under section 553(b) of title 5, United States Code."
Pub. L. 116–260, div. N, title III, §330, Dec. 27, 2020, 134 Stat. 2043 , provided that:
"(a) In General.-The Administrator shall ensure that a small business concern participating in the
program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) on or before
September 9, 2020, may elect to extend such participation by a period of 1 year, regardless of whether
the small business concern previously elected to suspend participation in the program pursuant to
guidance of the Administrator.
"(b) Emergency Rulemaking Authority.-Not later than 15 days after the date of enactment of this Act
[Dec. 27, 2020], the Administrator shall issue regulations to carry out this section without regard to the
notice requirements under section 553(b) of title 5, United States Code."
[For definitions of "Administrator" and "small business concern" as used in section 330 of div. N of Pub.
L. 116–260, set out above, see section 302 of div. N of Pub. L. 116–260, set out as a note under section 9001
of this title.]

Good Faith Compliance With Subcontracting Requirements
Pub. L. 114–328, div. A, title XVIII, §1821(c), Dec. 23, 2016, 130 Stat. 2654 , provided that: "Not later than
270 days after the date of enactment of this title [Dec. 23, 2016], the Administrator of the Small Business
Administration shall provide examples of activities that would be considered a failure to make a good faith
effort to comply with the requirements imposed on an entity (other than a small business concern as
defined under section 3 of the Small Business Act (15 U.S.C. 632)) that is awarded a prime contract
containing the clauses required under paragraph (4) or (5) of section 8(d) of the Small Business Act (15
U.S.C. 637(d))."

Subcontracting Misrepresentations
Pub. L. 111–240, title I, §1321, Sept. 27, 2010, 124 Stat. 2540 , provided that: "Not later than 1 year after
the date of enactment of this Act [Sept. 27, 2010], the Administrator, in consultation with the Administrator
for Federal Procurement Policy, shall promulgate regulations relating to, and the Federal Acquisition
Regulatory Council established under section 25(a) of the Office of Federal Procurement Policy Act
([former] 41 U.S.C. 421(a)) [now 41 U.S.C. 1302(a)] shall amend the Federal Acquisition Regulation issued
under section 25 of such Act [see 41 U.S.C. 1303(a)] to establish a policy on, subcontracting compliance
relating to small business concerns, including assignment of compliance responsibilities between
contracting offices, small business offices, and program offices and periodic oversight and review
activities."
[For definitions of "Administrator" and "small business concern" as used in section 1321 of Pub. L. 111–
240, set out above, see section 1001 of Pub. L. 111–240, set out as a note under section 632 of this title.]

Small Business Contracting Parity
Pub. L. 111–240, title I, §1347(a), (b), Sept. 27, 2010, 124 Stat. 2546 , 2547, provided that:
"(a) Definitions.-In this section-

"(1) the terms 'Administration' and 'Administrator' mean the Small Business Administration and the
Administrator thereof, respectively; and
"(2) the terms 'HUBZone small business concern', 'small business concern', 'small business
concern owned and controlled by service-disabled veterans', and 'small business concern owned and
controlled by women' have the same meanings as in section 3 of the Small Business Act (15 U.S.C.
632).

"(b) Contracting Improvements."(1) Contracting opportunities.-[Amended section 657a of this title.]
"(2) Contracting goals.-[Amended section 644 of this title.]
"(3) Mentor-protege programs.-The Administrator may establish mentor-protege programs for
small business concerns owned and controlled by service-disabled veterans, small business concerns
owned and controlled by women, and HUBZone small business concerns modeled on the mentorprotege program of the Administration for small business concerns participating in programs under
section 8(a) of the Small Business Act (15 U.S.C. 637(a))."

Increasing Number of Outreach Centers
Pub. L. 110–186, title I, §105, Feb. 14, 2008, 122 Stat. 626 , provided that:
"(a) In General.-The Administrator [of the Small Business Administration] shall use the authority in
section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)) to ensure that the number of Veterans

Business Outreach Centers throughout the United States increases"(1) subject to subsection (b), by at least 2, for each of fiscal years 2008 and 2009; and
"(2) by the number that the Administrator considers appropriate, based on need, for each fiscal
year thereafter.
"(b) Limitation.-Subsection (a)(1) shall apply in a fiscal year if, for that fiscal year, the amount made
available for the Office of Veterans Business Development is more than the amount made available for
the Office of Veterans Business Development for fiscal year 2007."

Enhanced Publicity During Operation Allied Force
Pub. L. 106–50, §303(b), Aug. 17, 1999, 113 Stat. 243 , provided that: "For the duration of Operation Allied
Force and for 120 days thereafter, the Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendment made by this section [amending this section], including
information regarding the appropriate local office at which affected small businesses may seek such
assistance."

Federal Acquisition Regulation
Pub. L. 105–135, title IV, §416(b), Dec. 2, 1997, 111 Stat. 2620 , provided that: "The Federal Acquisition
Regulation shall be amended to provide uniform implementation of the amendments made by this section
[amending this section]."

Implementation of Amendment by Pub. L. 105–85
Pub. L. 105–85, div. A, title VIII, §850(e)(3), Nov. 18, 1997, 111 Stat. 1849 , provided that: "The
amendments made by paragraphs (1) and (2) [amending this section and section 416 of Title 41, Public
Contracts] shall be implemented in a manner consistent with any applicable international agreements."

Mobile Resource Center Pilot Program
Pub. L. 103–403, title IV, §406, Oct. 22, 1994, 108 Stat. 4192 , provided that the Administrator of the Small
Business Administration could establish and carry out in each of fiscal years 1995, 1996, and 1997 a
mobile resource pilot program and, if it was carried out, required the Administrator to transmit to Congress
by Dec. 31, 1996, a report containing the results of such program, together with recommendations for
appropriate legislative and administrative action.

Projects Funded Pursuant to Former Provisions
Pub. L. 102–191, §3, Dec. 5, 1991, 105 Stat. 1591 , provided in part that: "Projects funded pursuant to the
provisions of former subsection (c) [15 U.S.C. 637(c)] shall be deemed to be funded under and shall be
treated as if funded under section 28 of the Small Business Act [15 U.S.C. 656], as added by section 2."

Two-Year Rule for Eligibility in Minority Small Business and Capital
Ownership Development Program
Pub. L. 101–574, title II, §203, Nov. 15, 1990, 104 Stat. 2818 , provided that:
"(a) In General.-The Small Business Administration may prescribe a minimum period of time during

which a prospective Program Participant must be in operation in order to meet the eligibility requirements
of section 8(a)(7)(A) of the Small Business Act (15 U.S.C. 637(a)(7)(A)), only if the Administration provides a
waiver of such minimum period as set forth in subsection (b).
"(b) Waiver of Minimum Period of Operation.-(1) The Administration shall provide that any requirement it
establishes regarding the period of time a prospective Program Participant must be in operation may be
waived and, a prospective Program Participant, who otherwise meets the requirements of section 8(a)(7)

(A) of the Small Business Act [15 U.S.C. 637(a)(7)(A)], shall be considered to have demonstrated
reasonable prospects for success, if"(A) the individual or individuals upon whom eligibility is to be based have substantial and
demonstrated business management experience;
"(B) the prospective Program Participant has demonstrated technical expertise to carry out its
business plan with a substantial likelihood for success;
"(C) the prospective Program Participant has adequate capital to carry out its business plan;
"(D) the prospective Program Participant has a record of successful performance on contracts from
governmental and nongovernmental sources in the primary industry category in which the prospective
Program Participant is seeking Program certification; and
"(E) the prospective Program Participant has, or can demonstrate its ability to timely obtain, the
personnel, facilities, equipment, and any other requirements needed to perform such contracts.
"(2) The authority to make the determination that a prospective Program Participant has demonstrated
its potential for success by meeting the criteria specified in paragraph (1) of this subsection shall be made
by the Administrator of the Small Business Administration, or a designee of such officer."

References in Other Laws to GS–16, 17, or 18 Pay Rates
References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the
General Schedule, to be considered references to rates payable under specified sections of Title 5,
Government Organization and Employees, see section 529 [title I, §101(c)(1)] of Pub. L. 101–509, set out
in a note under section 5376 of Title 5.

Credit for Indian Contracting in Meeting Certain Minority Subcontracting
Goals
For provisions that credit toward meeting a subcontracting goal specified in a Department of Defense
contract in implementing subsec. (d) of this section may be given for work performed on Indian land or by
certain Indian joint ventures, see section 3902 of Title 10, Armed Forces.

Test Program for Negotiation of Comprehensive Small Business
Subcontracting Plans
Pub. L. 101–574, title IV, §402, Nov. 15, 1990, 104 Stat. 2832 , which suspended subsec. (d) of section
834 of Pub. L. 101–189, set out below, for the test program period specified in subsec. (e) of that section,
was repealed by Pub. L. 113–291, div. A, title VIII, §821(c)(2), Dec. 19, 2014, 128 Stat. 3434 .
Pub. L. 101–189, div. A, title VIII, §834, Nov. 29, 1989, 103 Stat. 1509 , as amended by Pub. L. 102–484, div.
A, title VIII, §805, Oct. 23, 1992, 106 Stat. 2447 ; Pub. L. 103–355, title VII, §7103, Oct. 13, 1994, 108 Stat.
3368 ; Pub. L. 104–106, div. A, title VIII, §811, Feb. 10, 1996, 110 Stat. 394 ; Pub. L. 105–85, div. A, title VIII,
§822, Nov. 18, 1997, 111 Stat. 1840 ; Pub. L. 106–65, div. A, title VIII, §817, Oct. 5, 1999, 113 Stat. 712 ; Pub.
L. 106–398, §1 [[div. A], title X, §1087(g)(1)], Oct. 30, 2000, 114 Stat. 1654 , 1654A-293; Pub. L. 108–375, div.
A, title VIII, §843, Oct. 28, 2004, 118 Stat. 2019 ; Pub. L. 111–383, div. A, title VIII, §863(i), Jan. 7, 2011, 124
Stat. 4295 ; Pub. L. 112–81, div. A, title VIII, §866, Dec. 31, 2011, 125 Stat. 1526 ; Pub. L. 112–239, div. A, title
X, §1076(a)(16), Jan. 2, 2013, 126 Stat. 1948 ; Pub. L. 113–291, div. A, §821(a)–(c)(1), (d)–(f), Dec. 19,
2014, 128 Stat. 3433 , 3434; Pub. L. 114–92, div. A, title VIII, §872, Nov. 25, 2015, 129 Stat. 939 ; Pub. L. 114–
328, div. A, title VIII, §826, Dec. 23, 2016, 130 Stat. 2280 ; Pub. L. 115–91, div. A, title XVII, §1701(a)(4)(D),
(j), Dec. 12, 2017, 131 Stat. 1796 , 1803, provided that:
"(a) Test Program.-(1) The Secretary of Defense shall establish a test program under which contracting
activities in the military departments and the Defense Agencies are authorized to undertake one or more
demonstration projects to determine whether the negotiation and administration of comprehensive
subcontracting plans will reduce administrative burdens on contractors while enhancing opportunities
provided under Department of Defense contracts for covered small business concerns. In selecting the
contracting activities to undertake demonstration projects, the Secretary shall take such action as is
necessary to ensure that a broad range of the supplies and services acquired by the Department of
Defense are included in the test program.
"(2) In developing the test program, the Secretary of Defense shall"(A) consult with the Administrator of the Small Business Administration; and
"(B) provide an opportunity for public comment on the test program.
"(b) Comprehensive Small Business Subcontracting Plan.-(1) In a demonstration project under the test
program, the Secretary of a military department or head of a Defense Agency shall negotiate, monitor,
and enforce compliance with a comprehensive subcontracting plan with a Department of Defense
contractor described in paragraph (4).
"(2) The comprehensive subcontracting plan of a contractor-

"(A) shall apply to the entire business organization of the contractor or to one or more of the
contractor's divisions or operating elements, as specified in the subcontracting plan; and
"(B) shall cover each Department of Defense contract that is entered into by the contractor and
each subcontract that is entered into by the contractor as the subcontractor under a Department of
Defense contract.
"(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 [now 10 U.S.C. 4201];
"(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.
"(4) A Department of Defense contractor referred to in paragraph (1) is, with respect to a
comprehensive subcontracting plan negotiated in any fiscal year, a business concern that, during the
immediately preceding fiscal year, furnished the Department of Defense with supplies or services
(including professional services, research and development services, and construction services) pursuant
to at least three Department of Defense contracts having an aggregate value of at least $100,000,000.
"(c) Waiver of Certain Small Business Act Subcontracting Plan Requirements.-A Department of
Defense contractor is not required to negotiate or submit a subcontracting plan under paragraph (4) or (5)
of section 8(d) of the Small Business Act (15 U.S.C. 637(d)) with respect to a Department of Defense
contract if"(1) the contractor has negotiated a comprehensive subcontracting plan under the test program
that includes the matters specified in section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6));
"(2) such matters have been determined acceptable by the Secretary of the military department or
head of a Defense Agency negotiating such comprehensive subcontracting plan; and
"(3) the comprehensive subcontracting plan applies to the contract.
"(d) Failure To Make a Good Faith Effort To Comply With a Comprehensive Subcontracting Plan.-(1) A
contractor that has negotiated a comprehensive subcontracting plan under the test program shall be
subject to section 8(d)(4)(F) of the Small Business Act (15 U.S.C. 637(d)(4)(F)) regarding the assessment of
liquidated damages for failure to make a good faith effort to comply with its comprehensive
subcontracting plan and the goals specified in that plan. In addition, any such failure shall be a factor
considered as part of the evaluation of past performance of an offeror.
"(2) Effective in fiscal year 2016 and each fiscal year thereafter in which the test program is in effect,
the Secretary of Defense shall report to Congress on any negotiated comprehensive subcontracting plan
that the Secretary determines did not meet the subcontracting goals negotiated in the plan for the prior
fiscal year.
"(e) Test Program Period.-The test program authorized by subsection (a) shall begin on October 1,
1990, unless Congress adopts a resolution disapproving the test program. The test program shall
terminate on December 31, 2027.
"(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.
"(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 31(b) of
such Act [15 U.S.C. 657a(b)].
"(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))."

Contract Options and Modifications
Pub. L. 100–656, title III, §303(f), Nov. 15, 1988, 102 Stat. 3871 , as amended by Pub. L. 101–37, §10(d),
June 15, 1989, 103 Stat. 73 , provided that:
"(1) The Small Business Administration shall make substantial and sustained efforts to achieve a
maximum ten-day period as the average processing time for approving options and modifications to
contracts awarded pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)) and submitted to
such Administration for approval.
"(2) Within sixty days after the date of enactment of this Act [Nov. 15, 1988], the Small Business
Administration, and the appropriate Federal agency, shall make substantial and sustained efforts to
negotiate contract modifications for fair market price for any and all unpriced options contained in active
contracts previously awarded pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)) with the
contractor that was initially awarded such contract.
"(3) During the period of time described in paragraph (2), such agencies shall refrain from procuring
such requirements from alternative sources except that, no delay may be incurred pursuant to this
paragraph that would cause substantial harm to a public interest.
"(4) The Small Business Administration shall take appropriate actions, including publication in the
Federal Register, to advise small business concerns and Federal agencies of the requirements of this
subsection.
"(5) The Administration shall, to the maximum extent practicable, minimize delay, eliminate excess
regulation, and require only such paperwork as may be necessary to effect the orderly and efficient
management of the Program established by section 7(j)(10) of the Small Business Act (15 U.S.C. 636(j)
(10)) and the award of contracts pursuant to section 8(a) of such Act (15 U.S.C. 637(a))."

Liquidated Damages Clauses
Pub. L. 100–656, title III, §304(b), Nov. 15, 1988, 102 Stat. 3873 , provided that: "The contract clause
required by section 8(d)(4)(F) of the Small Business Act [15 U.S.C. 637(d)(4)(F)] (as added by subsection
(a)) shall be made part of the Federal Acquisition Regulation and promulgated pursuant to section 22 of
the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 418b) [now 41 U.S.C. 1707]."
[Section 304(b) of Pub. L. 100–656 effective Aug. 15, 1989, see section 803(b)(1)(B) of Pub. L. 100–656,
as amended, set out as an Effective Date of 1988 Amendment note under section 631 of this title.]

Native American Organizations Exemptions
Pub. L. 109–289, div. A, title VIII, §8018, Sept. 29, 2006, 120 Stat. 1277 , provided in part: "That, during the
current fiscal year and hereafter, businesses certified as 8(a) by the Small Business Administration
pursuant to section 8(a)(15) of Public Law 85–536 [15 U.S.C. 637(a)(15)], as amended, shall have the same
status as other program participants under section 602 of Public Law 100–656, 102 Stat. 3825 (Business
Opportunity Development Reform Act of 1988) [set out as a note below] for purposes of contracting with
agencies of the Department of Defense."
Similar provisions were contained in the following prior appropriation acts:
Pub. L. 109–148, div. A, title VIII, §8020, Dec. 30, 2005, 119 Stat. 2702 .
Pub. L. 108–287, title VIII, §8021, Aug. 5, 2004, 118 Stat 975.
Pub. L. 108–87, title VIII, §8021, Sept. 30, 2003, 117 Stat 1076.
Pub. L. 100–656, title VI, §602, Nov. 15, 1988, 102 Stat. 3887 , as amended by Pub. L. 101–37, §22, June
15, 1989, 103 Stat. 75 ; Pub. L. 101–515, title V, §2, Nov. 5, 1990, 104 Stat. 2140 ; Pub. L. 101–574, title II,
§205, Nov. 15, 1990, 104 Stat. 2819 ; Pub. L. 103–403, title VI, §608, Oct. 22, 1994, 108 Stat. 4204 , provided
that:
"(a) Competitive Thresholds.-Section 8(a)(1)(D) of the Small Business Act [15 U.S.C. 637(a)(1)(D)], as
added by section 303 of this Act, shall not apply to Program Participants that are owned and controlled by
economically disadvantaged Indian tribes, as defined pursuant to paragraphs (4) and (13) of section 8(a)
of the Small Business Act (15 U.S.C. 637(a)(4) and (13)).
"(b) Joint Ventures.-The Administration is authorized to award a contract pursuant to section 8(a) of the
Small Business Act (15 U.S.C. 637(a)) to a joint venture notwithstanding the size status of such joint
venture if-

"(1) a party to the joint venture is a Program Participant that is owned and controlled by an
economically disadvantaged Indian tribe (as defined pursuant to paragraphs (4) and (13) of section
8(a) of the Small Business Act (15 U.S.C. 637(a)(4) and (13)); and
"(2) such Program Participant:
"(A) owns 51 per centum or more of such joint venture;
"(B) is located on the reservation or former reservation of such tribe as determined by the
Secretary of the Interior of such tribe;
"(C) performs most of its activities on such reservation, or such former reservation; and
"(D) employs members of such tribe for at least 50 per centum of its total workforce.
"(c) Limitations.-A Program Participant, as a party to a joint venture shall receive no more than 5
contracts due solely to the provisions of subsection (b).
"(d) Sunset.-Subsection (b) shall cease to be effective after September 30, 1997."
[Section 602 of Pub. L. 100–656 effective Aug. 15, 1989, see section 803(b)(1)(D) of Pub. L. 100–656, as
amended, set out as an Effective Date of 1988 Amendment note under section 631 of this title.]

GAO Evaluation of Service Corps of Retired Executives; Report
Pub. L. 100–590, title I, §107, Nov. 3, 1988, 102 Stat. 2993 , directed Comptroller General, not later than
Dec. 1, 1989, to transmit a report to Small Business Committees of Senate and House of
Representatives on functions being performed by volunteers in Service Corps of Retired Executives and
Active Corps of Executives, including his evaluation of programs and including conclusions and
recommendations concerning efficiency and cost effectiveness of such volunteers.

Authorization of Appropriations for Women-Owned Small Business
Demonstration Projects
Pub. L. 100–590, title I, §127(c), Nov. 3, 1988, 102 Stat. 3003 , provided that: "There is authorized to be
appropriated $10,000,000 to carry out the demonstration projects required pursuant to subsection (a)
[amending this section]. The initial projects authorized to be financed by this section [amending this
section and enacting provisions set out as notes under this section] shall be funded by January 31, 1989.
Notwithstanding any other provision of law, the Small Business Administration may use such expedited
acquisition methods as it deems appropriate to achieve the purposes of this subsection, except that it
shall insure that all eligible sources are provided a reasonable opportunity to submit proposals."
Similar provisions were contained in Pub. L. 100–533, title II, §203, Oct. 25, 1988, 102 Stat. 2692 .

Spending Authority for Contracts Authorized for Women-Owned Small
Business Demonstration Projects
Pub. L. 100–590, title I, §127(e), Nov. 3, 1988, 102 Stat. 3003 , provided that: "New spending authority or
authority to enter into contracts as authorized in this section [amending this section and enacting
provisions set out as notes under this section] shall be effective only to such extent and in such amounts
as are provided in advance in appropriation Acts."

Rural Area Business Development Plans
Pub. L. 100–590, title I, §129, Nov. 3, 1988, 102 Stat. 3004 , provided that: "Within six months of the
effective date of this Act [see Effective Date of 1988 Amendment note set out under section 631 of this title],
the Administrator shall identify each Federal agency having substantial procurement or grantmaking
authority and shall notify each agency so identified. Within six months of notification, each agency shall
develop rural area business enterprise development plans. Such plans shall establish rural area
enterprise development objectives for the agency and methods for encouraging prime contractors,
subcontractors and grant recipients to use small business concerns located in rural areas as
subcontractors, suppliers, and otherwise. Such plans shall, to the extent the agency deems appropriate
and feasible, include incentive techniques as encouragement."

Background Check Policy; Fingerprinting
Pub. L. 100–590, title I, §132, Nov. 3, 1988, 102 Stat. 3005 , provided that: "The Small Business
Administration shall not require fingerprints to be obtained for background check purposes from any
participant in any Administration program who is serving on a voluntary basis and without compensation
unless the Administration has reasonable grounds to believe that the participant's record or background is
such as to make the participant ineligible to participate in the relevant program."

Time for Designation of Agency

Pub. L. 99–567, §1(b), Oct. 27, 1986, 100 Stat. 3188 , provided that: "The designation of an agency
pursuant to the amendment made by subsection (a) [amending this section] shall be made not later than
sixty days after the date of enactment of this Act [Oct. 27, 1986]."

Report to Congress Respecting Assistance Furnished by Profitmaking
Concerns to Small Business Concerns; Contents
Pub. L. 98–362, §5(b), July 16, 1984, 98 Stat. 434 , directed Small Business Administration, not later than
Dec. 1, 1987, to report to Committees on Small Business of Senate and House of Representatives on
impact of assistance provided in cooperation with profitmaking concerns pursuant to amendment made
by section 5(a)(2) of the Small Business Computer Security and Education Act of 1984 [amending this
section], including information on benefits provided to small business concerns assisted by
Administration's cooperation with profitmaking concerns and any negative impact upon small businesses
resulting from such cooperation with profitmaking concerns.

Tennessee Valley Authority; Procurement Procedures Under 1983 and 1984
Amendments Applicable Only to Procurements Paid From Appropriated
Funds
Pub. L. 98–577, title IV, §404(c), Oct. 30, 1984, 98 Stat. 3084 , provided that: "The provisions of the
amendment made by subsection (a) of this section [enacting subsecs. (e) to (j) of this section and striking
out former subsec. (e) of this section] shall apply to the Tennessee Valley Authority only with respect to
procurements to be paid from appropriated funds."
Pub. L. 98–72, §1(b)(3), Aug. 11, 1983, 97 Stat. 405 , provided that: "The provisions of this Act [amending
this section] shall apply to the Tennessee Valley Authority only with respect to procurements to be paid
from appropriated funds."

Asian Pacific Americans as Disadvantaged Minority in 1978
Pub. L. 96–302, title I, §118(c)(2), July 2, 1980, 94 Stat. 840 , provided that the amendment of subsec. (d)
(3)(C) by Pub. L. 96–302, including Asian Pacific Americans among the disadvantaged minorities, shall
apply as if included in the amendment made by section 211 of Pub. L. 95–507, to subsec. (d) of this
section.

Business Plans; Submittal by Concerns Eligible To Receive Contracts
Concerns eligible to receive contracts pursuant to subsec. (a) of this section required to submit
business plans required under section 636(j)(10)(A)(i) of this title within certain time limits, provided that no
determination made under this paragraph shall be considered a denial of total participation for the
purposes of subsec. (a)(9) of this section, see section 106(b) of Pub. L. 96–481 set out as a note under
section 636 of this title.

Reports to Congress; General Accounting Office Report on Business
Development; Quarterly Reports by Small Business Administration to
Congressional Committees
Pub. L. 95–507, title II, §202(b), Oct. 24, 1978, 92 Stat. 1763 , as amended by Pub. L. 96–481, title I, §102,
Oct. 21, 1980, 94 Stat. 2321 , provided not later than Jan. 31, 1981, the General Accounting Office submit
to Congress a report which, with respect to provisions of subsec. (a)(1)(B) and (2) of this section,
evaluated the implementation of such provisions and whether such implementation furthered the
purposes under section 631(e) of this title, and required the Small Business Administration and the agency
designated pursuant to subsec. (a)(1)(B) of this section to submit separate quarterly reports to specific
congressional committees, which reports were to contain a review and evaluation of all activities
conducted pursuant to subsec. (a)(1)(B) during the previous three-month period, with the first such report
submitted commencing on Jan. 2, 1981, for the preceding three-month period, and to continue quarterly
through, and include, the quarter ending Sept. 30, 1981.

Termination of Advisory Boards and Committees
Advisory boards and committees in existence on Jan. 5, 1973, to terminate not later than the expiration
of the 2-year period following Jan. 5, 1973, unless, in the case of a board or committee established by the
President or an officer of the Federal Government, such board or committee is renewed by appropriate
action prior to the expiration of such 2-year period, or in the case of a board or committee established by
the Congress, its duration is otherwise provided by law. See sections 1001(2) and 1013 of Title 5,
Government Organization and Employees.

Definition
Pub. L. 100–590, title I, §127(d), Nov. 3, 1988, 102 Stat. 3003 , provided that: "For the purposes of this
section [amending this section and enacting provisions set out as notes under this section], the term
'small business concern owned and controlled by women' means any small business concern"(1) that is at least 51 per centum owned by one or more women; and
"(2) whose management and daily business operations are controlled by one or more of such
women."
Similar provisions were contained in Pub. L. 100–533, title II, §204, Oct. 25, 1988, 102 Stat. 2692 .
1 See References in Text note below.
2 So in original. Probably should be "proscribed".
3 So in original. Probably should be "solicited".
4 So in original. Probably should be followed by "of the Small Business Act".
5 So in original. Probably should be "a".

15 USC 657a: HUBZone program
Text contains those laws in effect on January 23, 2000
From Title 15-COMMERCE AND TRADE
CHAPTER 14A-AID TO SMALL BUSINESS
Jump To:
Source Credit
References In Text
Prior Provisions
Effective Date
Miscellaneous

§657a. HUBZone program
(a) In general
There is established within the Administration a program to be carried out by the Administrator to provide for Federal
contracting assistance to qualified HUBZone small business concerns in accordance with this section.
(b) Eligible contracts
(1) Definitions
In this subsection(A) the term "contracting officer" has the meaning given that term in section 423(f)(5) of title 41; and
(B) the term "full and open competition" has the meaning given that term in section 403 of title 41.
(2) Authority of contracting officer
Notwithstanding any other provision of law(A) a contracting officer may award sole source contracts under this section to any qualified HUBZone small
business concern, if(i) the qualified HUBZone small business concern is determined to be a responsible contractor with respect to
performance of such contract opportunity, and the contracting officer does not have a reasonable expectation
that 2 or more qualified HUBZone small business concerns will submit offers for the contracting opportunity;
(ii) the anticipated award price of the contract (including options) will not exceed(I) $5,000,000, in the case of a contract opportunity assigned a standard industrial classification code for
manufacturing; or
(II) $3,000,000, in the case of all other contract opportunities; and
(iii) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price;
(B) a contract opportunity shall be awarded pursuant to this section on the basis of competition restricted to
qualified HUBZone small business concerns if the contracting officer has a reasonable expectation that not less
than 2 qualified HUBZone small business concerns will submit offers and that the award can be made at a fair
market price; and
(C) not later than 5 days from the date the Administration is notified of a procurement officer's decision not to
award a contract opportunity under this section to a qualified HUBZone small business concern, the Administrator
may notify the contracting officer of the intent to appeal the contracting officer's decision, and within 15 days of
such date the Administrator may file a written request for reconsideration of the contracting officer's decision with
the Secretary of the department or agency head.
(3) Price evaluation preference in full and open competitions
In any case in which a contract is to be awarded on the basis of full and open competition, the price offered by a
qualified HUBZone small business concern shall be deemed as being lower than the price offered by another offeror
(other than another small business concern), if the price offered by the qualified HUBZone small business concern is
not more than 10 percent higher than the price offered by the otherwise lowest, responsive, and responsible offeror.
(4) Relationship to other contracting preferences
A procurement may not be made from a source on the basis of a preference provided in paragraph (2) or (3), if the
procurement would otherwise be made from a different source under section 4124 or 4125 of title 18 or the JavitsWagner-O'Day Act (41 U.S.C. 46 et seq.).
(c) Enforcement; penalties
(1) Verification of eligibility
In carrying out this section, the Administrator shall establish procedures relating to-

(A) the filing, investigation, and disposition by the Administration of any challenge to the eligibility of a small
business concern to receive assistance under this section (including a challenge, filed by an interested party,
relating to the veracity of a certification made or information provided to the Administration by a small business
concern under section 632(p)(5) of this title); and
(B) verification by the Administrator of the accuracy of any certification made or information provided to the
Administration by a small business concern under section 632(p)(5) of this title.
(2) Examinations
The procedures established under paragraph (1) may provide for program examinations (including random
program examinations) by the Administrator of any small business concern making a certification or providing
information to the Administrator under section 632(p)(5) of this title.
(3) Provision of data
Upon the request of the Administrator, the Secretary of Labor, the Secretary of Housing and Urban Development,
and the Secretary of the Interior (or the Assistant Secretary for Indian Affairs), shall promptly provide to the
Administrator such information as the Administrator determines to be necessary to carry out this subsection.
(4) Penalties
In addition to the penalties described in section 645(d) of this title, any small business concern that is determined
by the Administrator to have misrepresented the status of that concern as a "HUBZone small business concern" for
purposes of this section, shall be subject to(A) section 1001 of title 18; and
(B) sections 3729 through 3733 of title 31.
(Pub. L. 85–536, §2[31], as added Pub. L. 105–135, title VI, §602(b)(1)(B), Dec. 2, 1997, 111 Stat. 2629 .)

References in Text
The Javits-Wagner-O'Day Act, referred to in subsec. (b)(4), is act June 25, 1938, ch. 697, 52 Stat. 1196 ,
as amended, which is classified to sections 46 to 48c of Title 41, Public Contracts. For complete
classification of this Act to the Code, see Tables.

Prior Provisions
A prior section 2[31] of Pub. L. 85–536 was renumbered section 2[32] and is set out as a note under

section 631 of this title.

Effective Date
Section effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as an Effective Date of 1997
Amendment note under section 631 of this title.

Initial Limited Applicability
Pub. L. 105–135, title VI, §602(b)(2), Dec. 2, 1997, 111 Stat. 2631 , as amended by Pub. L. 106–113, div. B,
§1000(a)(5) [title II, §212], Nov. 29, 1999, 113 Stat. 1536 , 1501A-295, provided that: "During the period
beginning on the date of enactment of this Act [Dec. 2, 1997] and ending on September 30, 2000, section
31 of the Small Business Act [15 U.S.C. 657a] (as added by paragraph (1) of this subsection) shall apply
only to procurements by"(A) the Department of Defense;
"(B) the Department of Agriculture;
"(C) the Department of Health and Human Services;
"(D) the Department of Transportation;
"(E) the Department of Energy;
"(F) the Department of Housing and Urban Development;
"(G) the Environmental Protection Agency;
"(H) the National Aeronautics and Space Administration;
"(I) the General Services Administration;
"(J) the Department of Veterans Affairs;
"(K) the Department of Commerce;
"(L) the Department of Justice; and
"(M) the Department of State."

Report
Section 606 of Pub. L. 105–135 provided that: "Not later than March 1, 2002, the Administrator shall
submit to the Committees a report on the implementation of the HUBZone program established under
section 31 of the Small Business Act [15 U.S.C. 657a] (as added by section 602(b) of this title) and the degree

to which the HUBZone program has resulted in increased employment opportunities and an increased
level of investment in HUBZones (as defined in section 3(p) of the Small Business Act (15 U.S.C. 632(p)),
as added by section 602(a) of this title)."

Section Referred to in Other Sections
This section is referred to in sections 632, 645 of this title.

15 USC 657f: Procurement program for small business concerns owned and controlled by servicedisabled veterans
Text contains those laws in effect on July 25, 2024
From Title 15-COMMERCE AND TRADE
CHAPTER 14A-AID TO SMALL BUSINESS
Jump To:
Source Credit
Miscellaneous
Codification
Prior Provisions
Amendments
Effective Date

§657f. Procurement program for small business concerns owned and controlled by
service-disabled veterans
(a) Contracting officer defined
For purposes of this section, the term "contracting officer" has the meaning given such term in section 2101 of title
41.
(b) Certification of small business concerns owned and controlled by service-disabled veterans
With respect to a procurement program or preference established under this chapter that applies to prime
contractors, the Administrator shall(1) certify the status of a concern as a small business concern owned and controlled by service-disabled veterans;
and
(2) require the periodic recertification of such status.
(c) Sole source contracts
In accordance with this section, a contracting officer may award a sole source contract to any small business
concern owned and controlled by service-disabled veterans if(1) such concern is determined to be a responsible contractor with respect to performance of such contract
opportunity and the contracting officer does not have a reasonable expectation that 2 or more small business
concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity;
(2) the anticipated award price of the contract (including options) will not exceed(A) $7,000,000, in the case of a contract opportunity assigned a standard industrial classification code for
manufacturing; or
(B) $3,000,000, in the case of any other contract opportunity; and
(3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.
(d) Restricted competition
In accordance with this section, a contracting officer may award contracts on the basis of competition restricted to
small business concerns owned and controlled by service-disabled veterans certified under subsection (b) if the
contracting officer has a reasonable expectation that not less than 2 small business concerns owned and controlled by
service-disabled veterans will submit offers and that the award can be made at a fair market price.
(e) Relationship to other contracting preferences
A procurement may not be made from a source on the basis of a preference provided under subsection (a) or (b) if
the procurement would otherwise be made from a different source under section 4124 or 4125 of title 18 or chapter 85
of title 41.
(f) Database of veteran-owned businesses
(1) Subject to paragraphs (2) through (6), the Administrator shall maintain a database of small business concerns
owned and controlled by veterans, small business concerns owned and controlled by service-disabled veterans, and
the veteran owners of such business concerns.
(2)(A) To be eligible for inclusion in the database, such a veteran shall submit to the Administrator such information
as the Administrator may require with respect to the small business concern or the veteran. Application for inclusion in
the database shall constitute permission under section 552a of title 5 (commonly referred to as the Privacy Act) for the
Administrator to obtain from the Secretary of Veterans Affairs such personal information maintained by the Secretary as
may be necessary to verify the information contained in the application.
(B) For purposes of this subsection(i) the Secretary of Veterans Affairs shall-

(I) verify an individual's status as a veteran or a service-disabled veteran; and
(II) establish a system to permit the Administrator to access, but not alter, the verification of such status; and
(ii) the Administrator shall verify(I) the status of a business concern as a small business concern; and
(II) the ownership and control of such business concern.
(C) The Administrator may not certify a concern under subsection (b) or section 657f–1 of this title if the Secretary of
Veterans Affairs cannot provide the verification described under subparagraph (B)(i)(I).
(3) Information maintained in the database shall be submitted on a voluntary basis by a veteran described in
paragraph (1).
(4) The Administrator shall make the database available to all Federal departments and agencies and shall notify
each such department and agency of the availability of the database.
(5) If the Administrator determines that the public dissemination of certain types of information maintained in the
database is inappropriate, the Administrator shall take such steps as are necessary to maintain such types of
information in a secure and confidential manner.
(6)(A) If a small business concern is not included in the database because the Administrator does not certify the
status of the concern as a small business concern owned and controlled by veterans (under section 657f–1 of this title)
or a small business concern owned and controlled by service-disabled veterans (under subsection (g) of this section),
the concern may appeal the denial of certification to the Office of Hearings and Appeals of the Administration (as
established under section 634(i) of this title). The decision of the Office of Hearings and Appeals shall be considered a
final agency action.
(B)(i) If an interested party challenges the inclusion in the database of a small business concern owned and
controlled by veterans or a small business concern owned and controlled by service-disabled veterans based on the
status of the concern as a small business concern or the ownership or control of the concern, the challenge shall be
heard by the Office of Hearings and Appeals as described in subparagraph (A). The decision of the Office of Hearings
and Appeals shall be considered final agency action.
(ii) In this subparagraph, the term "interested party" means(I) the Secretary of Veterans Affairs or the Administrator; or
(II) in the case of a small business concern that is awarded a contract, the applicable contracting officer or another
small business concern that submitted an offer for the contract that was awarded to the small business concern that
is the subject of a challenge made under clause (i).
(g) Certification requirement
Notwithstanding subsection (c), a contracting officer may only award a sole source contract to a small business
concern owned and controlled by service-disabled veterans or a contract on the basis of competition restricted to small
business concerns owned and controlled by service-disabled veterans if such a concern is certified by the
Administrator as a small business concern owned and controlled by service-disabled veterans.
(h) Enforcement; penalties
(1) Verification of eligibility
In carrying out this section, the Administrator shall establish procedures relating to(A) the filing, investigation, and disposition by the Administration of any challenge to the eligibility of a small
business concern to receive assistance under this section (including a challenge, filed by an interested party,
relating to the veracity of a certification made or information provided to the Administration by a small business
concern under subsection (b)); and
(B) verification by the Administrator of the accuracy of any certification made or information provided to the
Administration by a small business concern under subsection (b).
(2) Examinations
The procedures established under paragraph (1) shall provide for a program of examinations by the Administrator
of any small business concern making a certification or providing information to the Administrator under subsection
(b), to determine the veracity of any statements or information provided as part of such certification or otherwise
provided under subsection (b).
(3) Enforcement; penalties
Rules similar to the rules of paragraphs (5) and (6) of section 637(m) of this title shall apply for purposes of this
section and section 657f–1 of this title.
(i) Provision of data
Upon the request of the Administrator, the head of any Federal department or agency shall promptly provide to the
Administrator such information as the Administrator determines to be necessary to carry out subsection (b) or to be
able to certify the status of the concern as a small business concern owned and controlled by veterans under section
657f–1 of this title.

(Pub. L. 85–536, §2[36], as added Pub. L. 108–183, title III, §308, Dec. 16, 2003, 117 Stat. 2662 ; amended Pub. L.
116–283, div. A, title VIII, §§862(b)(2), (d)(1), 864(3), Jan. 1, 2021, 134 Stat. 3778 , 3779, 3785.)
Editorial Notes

Codification
In subsec. (e), "chapter 85 of title 41" substituted for "the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.)"
on authority of Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854 , which Act enacted Title 41, Public
Contracts.
The text of subsec. (f) of section 8127 of Title 38, Veterans' Benefits, which was transferred to subsec. (f)
of this section by Pub. L. 116–283, div. A, title VIII, §862(b)(2), Jan. 1, 2021, 134 Stat. 3778 , was based on
Pub. L. 109–461, title V, §502(a)(1), Dec. 22, 2006, 120 Stat. 3431 ; Pub. L. 111–275, title I, §104(b)(1), Oct.
13, 2010, 124 Stat. 2867 ; Pub. L. 114–328, div. A, title XVIII, §1832(b)(2)(D), (d), (f)(1), Dec. 23, 2016, 130
Stat. 2660 ; Pub. L. 116–283, div. A, title VIII, §862(b)(1)(B), Jan. 1, 2021, 134 Stat. 3776 .

Prior Provisions
A prior section 2[36] of Pub. L. 85–536 was renumbered section 2[49] and is set out as a note under
section 631 of this title.

Amendments
2021-Subsecs. (a), (b). Pub. L. 116–283, §862(d)(1)(D), added subsecs. (a) and (b). Former subsecs. (a)
and (b) redesignated (c) and (d), respectively.
Subsec. (c). Pub. L. 116–283, §862(d)(1)(C), redesignated subsec. (a) as (c). Former subsec. (c)
redesignated (e).
Subsec. (c)(2)(A). Pub. L. 116–283, §864(3), substituted "$7,000,000" for "$5,000,000".
Subsec. (d). Pub. L. 116–283, §862(d)(1)(C), (E), redesignated subsec. (b) as (d) and inserted "certified
under subsection (b)" before "if the contracting officer".
Pub. L. 116–283, §862(d)(1)(A), redesignated subsec. (d) as par. (3) of subsec. (h).
Subsec. (e). Pub. L. 116–283, §862(d)(1)(B), (C), redesignated subsec. (c) as (e) and struck out former
subsec. (e). Prior to amendment, text of subsec. (e) read as follows: "For purposes of this section, the
term 'contracting officer' has the meaning given such term in section 2101(1) of title 41."
Subsec. (f). Pub. L. 116–283, §862(b)(2), transferred subsec. (f) of section 8127 of Title 38, Veterans'
Benefits, to subsec. (f) of this section. See Codification note above.
Subsec. (g). Pub. L. 116–283, §862(d)(1)(F), added subsec. (g).
Subsec. (h). Pub. L. 116–283, §862(d)(1)(F), added subsec. (h).
Subsec. (h)(3). Pub. L. 116–283, §862(d)(1)(G), inserted "and section 657f–1 of this title" before period at
end.
Pub. L. 116–283, §862(d)(1)(A), redesignated subsec. (d) as par. (3) of subsec. (h).
Subsec. (i). Pub. L. 116–283, §862(d)(1)(F), added subsec. (i).
Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment
Pub. L. 116–283, div. A, title VIII, §862(b)(2), Jan. 1, 2021, 134 Stat. 3778 , provided that the amendment
made by section 862(b)(2) is effective on the transfer date (2 years after Jan. 1, 2021, see section 862(a)
of Pub. L. 116–283, set out below).

Transfer of Verification of Small Business Concerns Owned and
Controlled by Veterans or Service-Disabled Veterans to the Small
Business Administration
Pub. L. 116–283, div. A, title VIII, §862(a), (c), (f), (g), Jan. 1, 2021, 134 Stat. 3776 , 3779, 3781, 3782,
provided that:
"(a) Transfer Date.-For purposes of this section [enacting section 657f–1 of this title, amending this
section, sections 632 and 645 of this title, and sections 8127 and 8128 of Title 38, Veterans' Benefits, and
enacting provisions set out as notes under this section, section 632 of this title, and section 8127 of Title 38],
the term 'transfer date' means the date that is 2 years after the date of enactment of this Act [Jan. 1,
2021].
"(c) Additional Requirements for Database.-

"(1) Administrator access to database before the transfer date.-During the period between the
date of the enactment of this Act [Jan. 1, 2021] and the transfer date, the Secretary of Veterans Affairs
shall provide the Administrator of the Small Business Administration with access to the contents of the
database described under section 8127(f) of title 38, United States Code.
"(2) Rule of construction.-Nothing in this section or the amendments made by this section may be
construed"(A) as prohibiting the Administrator of the Small Business Administration from combining the
contents of the database described under section 8127(f) of title 38, United States Code, with other
databases maintained by the Administration; or
"(B) as requiring the Administrator to use any system or technology related to the database
described under section 8127(f) of title 38, United States Code, on or after the transfer date to comply with
the requirement to maintain a database under subsection (f) of section 36 of the Small Business Act
[15 U.S.C. 657f(f)] (as transferred pursuant to subsection (b)(2) of this section).
"(3) Recognition of the issuance of joint regulations.-The date specified under section 1832(e) of
the National Defense Authorization Act for Fiscal Year 2017 [Pub. L. 114–328] (15 U.S.C. 632 note) shall be
deemed to be October 1, 2018.
"(f) Status of Self-Certified Small Business Concerns Owned and Controlled by Service-Disabled
Veterans.-

"(1) In general.-Notwithstanding any other provision of law, any small business concern (as
defined under section 3 of the Small Business Act (15 U.S.C. 632)) that self-certified as a small business
concern owned and controlled by service-disabled veterans (as defined in section 36 of such Act (15
U.S.C. 657f)) shall"(A) if the concern files a certification application with the Administrator of the Small Business
Administration before the end of the 1-year period beginning on the transfer date, maintain such selfcertification until the Administrator makes a determination with respect to such certification; and
"(B) if the concern does not file such a certification application before the end of the 1-year
period beginning on the transfer date, lose, at the end of such 1-year period, any self-certification of
the concern as a small business concern owned and controlled by service-disabled veterans.
"(2) Non-applicability to department of veterans affairs.-Paragraph (1) shall not apply to
participation in contracts (including subcontracts) with the Department of Veterans Affairs.
"(3) Notice.-The Administrator shall notify any small business concern that self-certified as a small
business concern owned and controlled by service-disabled veterans about the requirements of this
section and the amendments made by this section, including the transfer date, and make such notice
publicly available, on the date of the enactment of this Act [Jan. 1, 2021].
"(g) Transfer of the Center for Verification and Evaluation of the Department of Veterans Affairs to

the Small Business Administration."(1) Definition.-In this subsection, the term 'function'-

"(A) means any duty, obligation, power, authority, responsibility, right, privilege, activity, or
program; and
"(B) does not include employees.
"(2) Abolishment.-The Center for Verification and Evaluation of the Department of Veterans Affairs,
as defined under section 74.1 of title 38, Code of Federal Regulations, is abolished effective on the
transfer date.
"(3) Transfer of functions.-Effective on the transfer date, all functions that, immediately before the
transfer date, were functions of the Center for Verification and Evaluation shall be functions of the
Small Business Administration.
"(4) Transfer of assets.-So much of the property (including contracts for the procurement of
property or services) and records used, held, available, or to be made available in connection with a
function transferred under this subsection shall be available to the Small Business Administration at
such time or times as the President directs for use in connection with the functions transferred.
"(5) Savings provisions."(A) Continuing effect of legal documents.-All orders, determinations, rules, regulations,
permits, agreements, grants, contracts, certificates, licenses, registrations, privileges, and other
administrative actions"(i) which have been issued, made, granted, or allowed to become effective by the
President, any Federal agency or official thereof, or by a court of competent jurisdiction, in the
performance of functions which are transferred under this subsection; and
"(ii) which are in effect on the transfer date, or were final before the transfer date and are
to become effective on or after the transfer date,

  shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Administrator of the Small Business Administration or other authorized

official, a court of competent jurisdiction, or by operation of law.
"(B) Proceedings not affected.-The provisions of this subsection shall not affect any

proceedings, including notices of proposed rulemaking, or any application for any license, permit,
certificate, or financial assistance pending before the Department of Veterans Affairs on the transfer
date, with respect to functions transferred by this subsection but such proceedings and applications
shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom,
and payments shall be made pursuant to such orders, as if this subsection had not been enacted,
and orders issued in any such proceedings shall continue in effect until modified, terminated,
superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by
operation of law. Nothing in this subparagraph shall be deemed to prohibit the discontinuance or
modification of any such proceeding under the same terms and conditions and to the same extent
that such proceeding could have been discontinued or modified if this subsection had not been
enacted.
"(C) Suits not affected.-The provisions of this subsection shall not affect suits commenced
before the transfer date, and in all such suits, proceedings shall be had, appeals taken, and
judgments rendered in the same manner and with the same effect as if this subsection had not been
enacted.
"(D) Nonabatement of actions.-No suit, action, or other proceeding commenced by or against
the Department of Veterans Affairs, or by or against any individual in the official capacity of such
individual as an officer of the Department of Veterans Affairs, shall abate by reason of the enactment
of this subsection.
"(E) Administrative actions relating to promulgation of regulations.-Any administrative
action relating to the preparation or promulgation of a regulation by the Department of Veterans
Affairs relating to a function transferred under this subsection may be continued by the Administrator
of the Small Business Administration with the same effect as if this subsection had not been enacted.
"(F) Effect on personnel.-The Secretary of Veterans Affairs shall appoint any employee
represented by a labor organization accorded exclusive recognition under section 7111 of title 5, United
States Code, that is affected by the transfer of functions under this subsection to a position of a
continuing nature for which the employee is qualified, at a grade and compensation not lower than
the current grade and compensation of the employee.
"(6) References.-Any reference in any other Federal law, Executive order, rule, regulation, or
delegation of authority, or any document of or pertaining to a function of the Center for Verification and
Evaluation that is transferred under this subsection is deemed, after the transfer date, to refer to the
Small Business Administration."

15 USC 657f-1: Certification of small business concerns owned and controlled by veterans
Text contains those laws in effect on July 25, 2024
From Title 15-COMMERCE AND TRADE
CHAPTER 14A-AID TO SMALL BUSINESS
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§657f–1. Certification of small business concerns owned and controlled by
veterans
(a) In general
With respect to the program established under section 8127 of title 38, the Administrator shall(1) certify the status of a concern as a small business concern owned and controlled by veterans; and
(2) require the periodic recertification of such status.
(b) Enforcement; penalties
(1) Verification of eligibility
In carrying out this section, the Administrator shall establish procedures relating to(A) the filing, investigation, and disposition by the Administration of any challenge to the eligibility of a small
business concern to receive assistance under section 657f of this title (including a challenge, filed by an interested
party, relating to the veracity of a certification made or information provided to the Administration by a small
business concern under subsection (a)); and
(B) verification by the Administrator of the accuracy of any certification made or information provided to the
Administration by a small business concern under subsection (a).
(2) Examination of applicants
The procedures established under paragraph (1) shall provide for a program of examinations by the Administrator
of any small business concern making a certification or providing information to the Administrator under subsection
(a), to determine the veracity of any statements or information provided as part of such certification or otherwise
provided under subsection (a).
(Pub. L. 85–536, §2[36A], as added Pub. L. 116–283, div. A, title VIII, §862(e), Jan. 1, 2021, 134 Stat. 3781 .)