S 370

112th CONGRESS
1st Session

S. 370

To require contractors to notify small business concerns that have been included in offers relating to contracts let by Federal agencies, and for other purposes.

IN THE SENATE OF THE UNITED STATES

February 16, 2011

Mr. CASEY introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship


A BILL

To require contractors to notify small business concerns that have been included in offers relating to contracts let by Federal agencies, 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. SUBCONTRACTOR NOTIFICATIONS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the end the following:

    `(13) Notification Requirement-

      `(A) IN GENERAL- An offeror with respect to a contract let by a Federal agency that is to be awarded pursuant to the negotiated method of procurement that intends to identify a small business concern as a potential subcontractor in the offer relating to the contract shall--

        `(i) notify the small business concern that the offeror intends to identify the small business concern as a potential subcontractor in the offer; and

        `(ii) include with the offer a written acknowledgment by the small business concern that the small business concern has received the notice required under clause (i).

      `(B) PENALTIES- If an offeror fails to notify a small business concern under subparagraph (A)(i), the head of the Federal agency that let the contract described in subparagraph (A) shall--

        `(i) for the first such failure by the offeror, fine the offeror, in an amount equal to 20 percent of the value of the contract;

        `(ii) for the second such failure by the offeror--

          `(I) fine the offeror, in an amount equal to 50 percent of the value of the contract; and

          `(II) debar the offeror from contracting with the United States for a period of 1 year; and

        `(iii) for the third such failure by the offeror, debar the offeror from contracting with the United States.

    `(14) Reporting by Subcontractors- The Administrator shall establish a reporting mechanism that allows a subcontractor to report fraudulent activity by a contractor with respect to a subcontracting plan submitted to a procurement authority under paragraph (4)(B).'.

END