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  1st Session
                                 S. 633

To modify the contract consolidation requirements in the Small Business 
                      Act, and for other purposes.



                             March 17, 2003

 Mr. Kerry (for himself, Ms. Landrieu, Ms. Stabenow, Ms. Cantwell, and 
  Mr. Pryor) introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship


                                 A BILL

To modify the contract consolidation requirements in the Small Business 
                      Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,


    This Act may be cited as the ``Small Business Federal Contractor 
Safeguard Act''.


    (a) Definitions.--Section 3(o) of the Small Business Act (15 U.S.C. 
632(o)) is amended to read as follows:
    ``(o) Definitions.--In this Act the following definitions shall 
            ``(1) Consolidated contract; consolidation.--The term 
        `consolidated contract' or `consolidation' means a multiple 
        award contract or a contract for goods or services with a 
        Federal agency that--
                    ``(A) combines discrete procurement requirements 
                from not less than 2 existing contracts;
                    ``(B) adds new, discrete procurement requirements 
                to an existing contract; or
                    ``(C) includes 2 or more discrete procurement 
            ``(2) Multiple award contract.--The term `multiple award 
        contract' means--
                    ``(A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 
                2302(2)(C) of title 10, United States Code;
                    ``(B) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 2304a through 2304d of title 10, 
                United States Code, or sections 303H through 303K of 
                the Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253h through 253k); and
                    ``(C) any other indefinite delivery or indefinite 
                quantity contract that is entered into by the head of a 
                Federal agency with 2 or more sources pursuant to the 
                same solicitation.''.
    (b) Procurement Strategies.--Section 15(e) of the Small Business 
Act (15 U.S.C. 644(e)) is amended to read as follows:
    ``(e) Procurement Strategies; Contract Consolidation.--
            ``(1) In general.--To the maximum extent practicable, 
        procurement strategies used by the various agencies having 
        contracting authority shall facilitate the maximum 
        participation of small business concerns as--
                    ``(A) prime contractors;
                    ``(B) subcontractors; and
                    ``(C) suppliers.
            ``(2) Procurement strategy requirements when the value of a 
        consolidated contract is greater than $2,000,000.--
                    ``(A) In general.--An agency official may not 
                execute a procurement strategy that includes a 
                consolidated contract valued at more than $2,000,000 
                unless the proposed procurement strategy--
                            ``(i) specifically identifies the benefits 
                        anticipated from consolidation;
                            ``(ii) identifies any alternative 
                        contracting approaches that would involve a 
                        lesser degree of contract consolidation; and
                            ``(iii) includes a specific determination 
                        that the proposed consolidation is necessary 
                        and the anticipated benefits of such 
                        consolidation justify its use.
                    ``(B) Necessary and justified.--The head of an 
                agency may determine that a procurement strategy under 
                subparagraph (A)(iii) is necessary and justified if the 
                monetary benefits of the procurement strategy, 
                including administrative and personnel costs, 
                substantially exceed the monetary benefits of each of 
                the possible alternative contracting approaches 
                identified under subparagraph (A)(ii).
                    ``(C) Additional requirements when the value of a 
                consolidated contract is greater than $5,000,000.--In 
                addition to meeting the requirements under paragraph 
                (A), a procurement strategy that includes a 
                consolidated contract valued at more than $5,000,000--
                            ``(i) shall be supported by current market 
                        research that demonstrates that the 
                        consolidated contract will result in--
                                    ``(I) cost savings;
                                    ``(II) quality improvements;
                                    ``(III) reduction in acquisition 
                                cycle times; or
                                    ``(IV) better terms and conditions;
                            ``(ii) shall include an assessment of the 
                        specific impediments to participation by small 
                        business concerns as prime contractors that 
                        result from contract consolidation;
                            ``(iii) shall specify actions designed to 
                        maximize small business participation as 
                        subcontractors, including suppliers, at various 
                        tiers under the consolidated contract; and
                            ``(iv) shall not be justified under 
                        paragraph (A)(iii) by savings in administrative 
                        or personnel costs, unless the total amount of 
                        the cost savings is expected to be substantial 
                        in relation to the total cost of the 
            ``(3) Contract teaming.--
                    ``(A) In general.--If the head of an agency 
                solicits offers for a consolidated contract, a small 
                business concern may submit an offer that provides for 
                the use of a particular team of subcontractors for the 
                performance of the contract (referred to in this 
                paragraph as `teaming').
                    ``(B) Evaluation of offer.--The head of the agency 
                shall evaluate an offer submitted by a small business 
                concern under subparagraph (A) in the same manner as 
                other offers, with due consideration to the 
                capabilities of all of the proposed subcontractors.
                    ``(C) No effect on status as a small business 
                concern.--If a small business concern engages in 
                teaming under subparagraph (A), its status as a small 
                business concern shall not be affected for any other 
    (c) Conforming Amendments.--The Small Business Act (15 U.S.C. 631 
et seq.) is amended--
            (1) in section 2(j)--
                    (A) by striking the subsection heading and 
                inserting the following:
    ``(j) Contract Consolidation.--''; and
                    (B) in paragraph (3), by striking ``bundling of 
                contract requirements'' and inserting ``contract 
            (2) in section 8(d)(4)(G), by striking ``a bundled 
        contract'' and inserting ``a consolidated contract'';
            (3) in section 15(a)--
                    (A) by striking ``bundling of contract 
                requirements'' and inserting ``contract 
                consolidation''; and
                    (B) by striking ``the bundled contract'' and 
                inserting ``the consolidated contract''; and
            (4) in section 15(k)(5)--
                    (A) by striking ``significant bundling of contract 
                requirements'' and inserting ``consolidated contracts 
                valued at more than $2,000,000''; and
                    (B) by striking ``bundled contract'' and inserting 
                ``consolidated contract''.

Pages: 1

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