Incentivizing Fairness in Subcontracting Act
This bill amends the Small Business Act to modify provisions regarding what credit is given to small business prime contractors for the use of certain lower-tier subcontractors in order to attain the percentage goals specified in their subcontracting plans. Such credit may (currently, shall) be given if the goals pertain only to single contracts with federal (currently, executive) agencies. The bill eliminates provisions that allow credit to be given if the goals pertain to more than one contract with one or more federal agencies or to one contract with more than one federal agency. Credit is prohibited for subcontracts at any tier required to be reported under a commercial plan or a Department of Defense comprehensive subcontracting plan.
In addition, the bill (1) requires each contracting agency to collect and review data on subcontracting plans, and (2) establishes a dispute process for non-payment to subcontractors.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6367 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 6367
To amend the Small Business Act to specify what credit is given for
certain subcontractors and to provide a dispute process for non-payment
to subcontractors, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 13, 2018
Mr. Lawson of Florida introduced the following bill; which was referred
to the Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to specify what credit is given for
certain subcontractors and to provide a dispute process for non-payment
to subcontractors, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Incentivizing Fairness in
Subcontracting Act''.
SEC. 2. SMALL BUSINESS LOWER-TIER SUBCONTRACTING.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is
amended--
(1) by amending paragraph (16) to read as follows:
``(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 the 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 dollar value
of work awarded to such small business
concerns; and
``(ii) credit is not permitted for
subcontracts at any tier that are to be
reported under a commercial plan or a
Department of Defense comprehensive
subcontracting plan.
``(B) Collection and review of data on
subcontracting plans.--The head of each contracting
agency shall ensure that--
``(i) 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
``(ii) 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.
``(C) Rule of construction.--Nothing in this
paragraph shall permit lower-tier subcontracting
goaling requirements to prime contractors that are
eligible to receive lower-tier subcontracting credit
under this paragraph.
``(D) Definitions.--For purposes of this paragraph:
``(i) Commercial plan.--The term
`commercial plan' has the meaning give that
term under section 19.701 of the Federal
Acquisition Regulation.
``(ii) Comprehensive subcontracting plan.--
The term `comprehensive subcontracting plan'
has the meaning given that term under section
252.219-7004 of the Defense Federal Acquisition
Regulation Supplement.''; and
(2) by adding at the end the following:
``(18) Dispute process for non-payment to subcontractors.--
``(A) Notice to agency.--With respect to a contract
with a Federal agency, a subcontractor of a prime
contractor on such contract may, if the subcontractor
has not received payment for work performed within 90
days of the completion of such work, notify the Office
of Small and Disadvantaged Business Utilization
(`OSDBU') of the Federal agency of such lack of
payment, if such notice is provided to the agency
within the 15-day period following the end of such 90
days.
``(B) Agency determination.--Upon receipt of a
notice described under clause (i), the OSDBU shall
verify whether such lack of payment has occurred and
determine whether such lack of payment is due to an
undue restriction placed on the prime contractor by an
action of the Federal agency.
``(C) Cure period.--If the OSDBU verifies the lack
of payment under clause (ii) and determines that such
lack of payment is not due to an action of the Federal
agency, the OSDBU shall notify the prime contractor and
provide the prime contractor with a 15-day period in
which the primae contractor may make the payment owed
to the subcontractor.
``(D) Result of nonpayment.--If, after notifying
the prime contractor under clause (iii), the OSDBU
determines that the prime contractor has not fully paid
the amount owed within the 15-day cure period described
under clause (iii), the OSDBU shall ensure that such
failure to pay is reflected in the Contractor
Performance Assessment Reporting system.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended).
Reported (Amended) by the Committee on Small Business. H. Rept. 115-942.
Reported (Amended) by the Committee on Small Business. H. Rept. 115-942.
Placed on the Union Calendar, Calendar No. 733.
Mr. Chabot moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H8806-8808)
DEBATE - The House proceeded with forty minutes of debate on H.R. 6367.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8806-8807)
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On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8806-8807)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.