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Codification of program for negotiation of comprehensive small business subcontracting plans

Division A · Title VIII: Acquisition Policy, Acquisition Management, and Related Matters · Subtitle B: Amendments to General Contracting Authorities, Procedures, and Limitations

Plain-language summaryAI

The law establishes a program where Defense Department leaders negotiate and manage detailed plans for subcontracting with small businesses. It requires accurate tracking and reporting of subcontracting goals, awards, and efforts to meet those goals, and mandates annual reports from contractors on subcontract awards to small businesses. The Secretary of Defense must report to Congress on plans that fail to meet goals and whether contractors made genuine efforts to comply.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 829.
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(a) In general

Section 834 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 ( 15 U.S.C. 637 note) is transferred to subchapter I of chapter 387 of title 10, United States Code, inserted after section 4902, and redesignated as section 4903.

(b) Amendments

Section 4903 of title 10, United States Code, as so transferred and redesignated, is amended—

(1)

by striking test each place it appears in headings and text;

(2)

by striking Test each place it appears in headings and text;

(3)

in subsection (a)(1), by striking shall establish and all that follows through demonstration projects, the Secretary and inserting the following: shall maintain a program under which each service acquisition executive and each head of a Defense Agency may negotiate and administer comprehensive subcontracting plans. The Secretary ;

(4)

in subsection (b)—

(A)

in paragraph (1)—

(i)

by striking In a demonstration project under the test program, the and inserting The ; and

(ii)

by inserting at the end the following:

(A)

the annual goals for each subcontracting plan;

(B)

subcontract awards including number, dollar amount and percentages of subcontracting value and total contract value; and

(C)

the findings of good faith efforts.

(B)

in paragraph (2)—

(i)

in subparagraph (A), by striking and at the end;

(ii)

in subparagraph (B), by striking the period at the end and inserting ; and ; and

(iii)

by adding at the end the following:

(C)

shall comply with the requirements included in section 8(d)(6) of the Small Business Act ( 15 U.S.C. 637(d)(6) ).

(C)

by amending paragraph (3) to read as follows:

(3)

A contractor described in paragraph (4) shall annually submit to the Secretary of Defense a report on the number and dollar amount of first-tier subcontracts awarded during the period covered by the report to covered small business concerns, set forth separately—

(A)

by North American Industry Classification System code;

(B)

by major defense acquisition program (as defined in section 4201 of this title);

(C)

by military department; and

(D)

by prime contract, if—

(i)

the prime contract is for the maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization, or modification of supplies, systems, equipment; and

(ii)

the total value of the prime contract (including options) is greater than $100,000,000.

(5)

by amending subsection (d)(2) to read as follows:

(2)

The Secretary of Defense shall report to the Committee on Armed Services and the Committee on Small Business of the House of Representatives and the Committee on Armed Services and the Committee on Small Business and Entrepreneurship of the Senate 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 and whether the contractor made a good faith effort regarding compliance.

(6)

by striking subsections (e) and (f); and

(7)

by redesignating subsection (g) as subsection (e).