{
  "id": "R43573",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R43573",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 447881,
      "date": "2015-12-09",
      "retrieved": "2016-04-06T22:43:10.954751",
      "title": "Federal Contracting and Subcontracting with Small Businesses: Legislation in the 113th Congress",
      "summary": "Congress has generally broad authority to impose requirements upon the federal procurement process (i.e., the process whereby agencies acquire supplies and services from other entities for the agency\u2019s direct benefit or use). One of the many ways in which Congress has exercised this authority is by enacting measures that encourage agencies to contract and subcontract with \u201csmall businesses.\u201d For purposes of federal procurement law, the term small business generally denotes a business that (1) is independently owned and operated, (2) is not dominant in its field of operations, and (3) has fewer employees or annual receipts than the standards that the Small Business Administration (SBA) has established for the industries in which the business operates. \nIn exercising its authority over procurement, Congress has declared a policy of ensuring that a \u201cfair proportion\u201d of federal contract and subcontract dollars is awarded to small businesses. It has also required the executive branch to establish government-wide and agency-specific goals for the percentage of contract and/or subcontract dollars awarded to small businesses that equal or exceed specified percentages of federal procurement spending (e.g., 3% for Historically Underutilized Business Zone (HUBZone) small businesses). Congress has similarly required or authorized agencies to conduct set-asides, or competitions in which only small businesses may compete, as well as to make noncompetitive or \u201csole-source\u201d awards to small businesses in circumstances when such awards could not be made to other businesses. In addition, the SBA and officers of the procuring agencies are tasked with reviewing and restructuring proposed procurements to maximize opportunities for small business participation. \nCongress periodically amends the statutes governing contracting and subcontracting with small businesses to further its declared policy of ensuring that small businesses receive a \u201cfair proportion\u201d of federal procurement spending. The 111th and 112th Congresses, in particular, made numerous changes to such statutes. These Congresses enacted legislation (P.L. 111-240, P.L. 112-239) that addresses, among other things, (1) the standards under which business size is determined; (2) goals for contracting and subcontracting with small businesses; (3) prime contractors\u2019 obligations in subcontracting with small businesses; (4) SBA guarantees of small businesses\u2019 performance and payment bonds; (5) \u201cbundling\u201d and \u201cconsolidation\u201d of agency requirements into contracts unsuitable for performance by small businesses; (6) set-asides for women-owned small businesses; and (7) mentor-prot\u00e9g\u00e9 programs for small business contractors. \nCompared to the 111th and 112th Congresses, the 113th Congress enacted relatively few measures addressing small business contracting, perhaps because the amendments made by its predecessors were still being implemented and assessed. Among other things, the primary measures enacted by the 113th Congress (P.L. 113-66, P.L. 113-291) made certain modifications to the legal requirements regarding the use of reverse auctions; sole-source awards to women-owned small businesses; reporting on \u201cbundled\u201d or \u201cconsolidated\u201d contracts; reporting on goals for contracting and subcontracting with small businesses; and prime contractors\u2019 obligations as to subcontracting with small businesses. Other measures introduced or, in a few cases, enacted in the 113th Congress addressed other topics.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
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      "topics": []
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  "topics": [
    "National Defense"
  ]
}