Small Disadvantaged Business Fair Share Act

Summary

Small Disadvantaged Business Fair Share Act - Directs the Secretary of Defense (the Secretary), acting through the Defense Contract Administration Services, to increase outreach to small disadvantaged businesses (SDBs) that are potential contractors or subcontractors with the Department of Defense (DOD). Prohibits the Secretary from entering into a contract with a contractor unless the contractor includes a plan to spend at least ten percent of the contract on subcontracting with SDBs. Requires the Secretary to withhold ten percent of the amounts to be paid to the prime contractor for direct payments to subcontractors who are SDB's. Amends the National Defense Authorization Act for Fiscal Year 1987 to increase from five to ten percent the goal set for subcontract awards to historically Black colleges and universities, small businesses, minority-owned media, and minority institutions. Revises requirements for the awarding of subcontracts to small businesses and minority institutions to require: (1) 50 percent of the cost of contract performance incurred for personnel to be expended for employees of the entity (in the case of a contract for services); and (2) that the entity will perform the work for at least 75 percent of the cost of manufacturing (in the case of a contract for the procurement of supplies). Allows the Secretary to decrease such amounts by up to ten percent when determined necessary. Provides that, in lieu of meeting such requirements, an entity may agree that at least 75 percent of personnel costs under a contract shall be expended for entity employees and that the entity will perform at least 75 percent of the manufacturing work in the case of contract for procurement of supplies. Allows non-manufacturing work in the case of a contract for procurement of supplies. Allows a non-manufacturing entity to submit and have considered its offer for a procurement contract for the supply of a product, but requires such business concern to: (1) be primarily engaged in the wholesale or retail trade; (2) be a small business concern; (3) be a regular dealer in the product to be offered to the DOD; and (4) make certain representations that it will supply the product of a domestic small business manufacturer or processor, unless a waiver is granted by the Secretary under specific circumstances. Requires the Secretary to make every effort to increase the number of contracts available to small and minority business entities under the National Defense Authorization Act for Fiscal Year 1987. Requires, as a condition of approval of a contract with the DOD, that the contract bid must be accompanied by documentation certifying that the potential contractor is in compliance with the equal opportunity provisions of specified Federal regulations. Requires periodic certification updates. Directs the Secretary to promulgate regulations to administer this Act by a certain deadline.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

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• Introduced in House

  summary · EN · 6 February 1991

  Open at official source

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