Minority Business Development Program Reform Act of 1988

Summary

Minority Business Development Program Reform Act of 1987 - Title I: Congressional Findings and Program Purposes - Expresses congressional findings and purposes with respect to improving the Small Business Administration's minority small business and capital ownership development program (Program). Title II: Program Organization, Eligibility, and Participation - Amends the Small Business Act to establish within the Office of Minority Small Business and Capital Ownership Development a Division of Minority Small Business Certification to analyze and process applications and make on-site visits to determine minority status. Authorizes the Associate Administrator for Minority Small Business and Capital Ownership Development to certify as Program participants eligible small business concerns owned and controlled by socially and economically disadvantaged individuals. Provides that a certified Program participant shall not be eligible to participate in the Program for a period in excess of eight years, commencing on the date of the award of its first contract under the Program. Sets forth eligibility and certification requirements. States that a Program participant shall be graduated: (1) upon successful completion of the Program; (2) upon exceeding the applicable size standard established by the Small Business Administration (SBA); (3) if it is no longer owned by socially and economically disadvantaged individuals; or (4) if it elects to graduate prior to the expiration of its Program participation term. Sets forth circumstances under which a participant is terminated from the Program and provisions for challenging the eligibility of a participant. Title III: Enhancing the Program's Business Development Aspects - Requires a Program participant to submit a business plan for review by its assigned Business Opportunity Specialist. Requires that the plan be approved by the SBA prior to the participant's being awarded a contract under the Program. Specifies provisions to be included in the plan. Requires annual plan review and modifications as appropriate. Establishes in the Treasury the Bid and Proposal Cost Fund for the award of financial assistance to help defray the costs incurred in the preparation of offers necessary to compete for the award of Government and commercial contracts. Requires recipients of such assistance to repay the Fund 50 percent of the amount received if they are awarded a contract. Authorizes appropriations for the Fund for FY 1989 through 1991. Requires the Program to: (1) establish a training program for small business concerns to be delivered at the regional level to instruct participants in preparing effective proposals to competitive solicitations issued by Federal agencies; and (2) conduct seminars to assist participants to develop business plans which will enhance the concern's potential for operating profitably upon graduation. Provides for the Administrator of the SBA to approve any agreement for a joint venture between a small business concern eligible under the Program and any other business concern. Authorizes the SBA to make loans for the purchase of equipment, facilities, materials, supplies, or other necessary production or technical assets and for working capital directly to small business concerns under the Program, or under the minority small business program. Sets forth limitations for such assistance. Establishes in the Treasury a revolving fund for financing such loans. Authorizes appropriations to the fund. Title IV: Business Development Through Federal Contracting Opportunities - Prohibits the SBA from awarding to a Program participant a contract under the minority small business concern provisions, unless the participant certifies that the aggregate dollar amount of all contracts awarded to it by the SBA does not exceed a specified schedule of total sales. Sets forth the circumstances under which the SBA may award such contracts notwithstanding such schedule. Requires certain Federal agencies to prepare a forecast of expected contracting opportunities or classes of contracting opportunities for the next and succeeding fiscal years considered to be suitable for award to minority small business concerns. Requires each Program participant to annually forecast its needs for contract awards for the next Program year and the succeeding Program year during the review of its business plan. Requires the SBA to award non-competitive contracts to the minority business concern that identifies the contract opportunity if: (1) the Program participant is determined to be a responsible contractor; (2) the award of contract would be consistent with the participant's business plan; and (3) the award of the contract would not result in the participant's exceeding the requirements of the schedule of total sales. Authorizes the Administrator to consider the geographical distribution of contracts and to direct the award of any contract to achieve an equitable distribution among the various regions and among Program participants. Sets forth administrative provisions and limitations with respect to the award of such contracts. Requires a small business concern which is awarded a contract under the Program to complete performance of the contract, even if the period of contract performance extends beyond the firm's graduation from the Program. Requires the Government contracting officer to limit contract modifications to those necessary to attain contract performance when the contract is being performed by: (1) a contractor who has been terminated for cause from the Program; or (2) a contractor who is unable to meet Program requirements. Sets forth the circumstances under which a socially and economically disadvantaged small business concern may transfer a contract to another business concern. Provides for appeals of agency decisions regarding minority small business contract opportunities. Title V: Improved Program Management and Congressional Oversight - Requires that the Associate Administrator for Minority Small Business and Capital Ownership Development be a career appointee in the competitive service or in the Senior Executive Service. Provides for the position of Business Opportunity Specialist in each SBA field office to be responsible for assisting one or more Program participants. Sets forth conflict of interest provisions for former employees engaged in activities with respect to Program participants for one year after the end of such employment. Increases penalties for misrepresentation as a small business or minority concern. Requires a Program participant to report to the assigned Business Opportunity Specialist at least once every three months: (1) a listing of parties receiving compensation to assist in obtaining a Federal contract for the participant; and (2) the amount of compensation received by such persons during the relevant reporting period and a description of the activities performed for such compensation. Requires the Administrator to report the names of concerns that fail to submit such reports to the congressional Small Business committees. Directs the Administrator to develop and implement a process for the systematic collection of data on the benefits derived by the economy of the United States and by socially and economically disadvantaged individuals as a result of the operation of the Program. Requires the Administrator to report annually to its congressional Small Business Committees, beginning on April 30, 1990, on the Minority Small Business and Capital Ownership Development Program. Prescribes report contents. Title VI: Other Amendments - Requires the President to annually establish specified goals for procurement contracts awarded to small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals. Prescribes minimum participation goals. Requires the SBA to report to the President annually on the attainment of goals for participation by small business concerns. Directs the President to include the information in the annual report to the Congress on the State of Small Business. Requires that Federal prime contracts that contain subcontracting goals for small businesses and disadvantaged businesses to provide for liquidated damages if the prime contractor fails to make a good faith effort to comply with the goals. Requires agencies to ensure that the implementation of contract goals for minority small business concerns does not alter or change the procurement process used to implement other procurement programs. Authorizes FY 1988 appropriations as necessary to hire additional personnel to carry out specified provisions of this Act.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

3 official files

• Indefinitely postponed in Senate

  summary · EN · 11 July 1988

  Open at official source

• Reported to Senate with amendment(s)

  summary · EN · 22 June 1988

  Open at official source

• Introduced in Senate

  summary · EN · 21 December 1987

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.