Minority Enterprise Enhancement Competition and Reform Act

Minority Enterprise Enhancement Competition and Reform Act - Amends the Small Business Act to provide that the minimum period of participation by a small business in the small business and capital ownership development program (development program) or the program providing for Government procurement through Small Business Administration subcontracts with socially and economically disadvantaged small businesses (set-aside program) shall be ten years.

Authorizes Federal agencies to honor options and modifications to procurement contracts with the Small Business Administration if they are within the scope of work of the contract made when the contractor participated in the set-aside program and otherwise was eligible to enter into the contract. Ends the requirement for the Administration to participate in contracting activities relating to options or modifications following graduation from the set-aside program. Allows the procuring agency and the firm to enter directly into such options or modifications.

Allows businesses that participated in the set-aside program: (1) which remain minority owned after graduation to, on a negotiated procurement basis, contract directly with procuring agencies for new contracts involving the same activities as the incumbent contract for up to three years; or (2) which are incumbent contractors on procurement to compete for procurements upon graduation using methods established in the Competition in Contracting Act.

Provides that standards restricting set-aside program support to a limited number of industrial classification codes in an approved business plan will not apply to small businesses applying for such program.

Specifies the basis for using the gross receipts or employees of a business attributable to the performance of a contract awarded under the set-aside program to determine the size of such concern for any program under the Small Business Act or the Small Business Investment Act of 1958. Prohibits the Administration from imposing any limitation on sales by any small business that exceeds levels approved under the business plan submitted by such concern.

Requires each Federal agency with procurement powers to increase the number and dollar value of contracts awarded to small businesses under the Small Business Act for three fiscal years beginning after the date of enactment of this Act above the number and dollar value applicable for FY 1987. Provides that if at the end of FY 1988 the number and dollar value of contracts awarded have not increased, the regulations implementing the goal of awarding five percent of Department of Defense contracts to small business concerns owned and controlled by socially and economically disadvantaged individuals, historically black colleges, and minority institutions (the minority contract goal) will be suspended until there is an increase.

Requires the Administration to establish regulations for prompt, simultaneous processing of applications for certification into the set-aside program. Provides that six months after submitting appropriate forms to the Administration an applicant will be certified, unless the applicant has been rejected for a valid reason.

Deems a contract to be approved unless within ten days after its submission to the Administration the Administration makes an objection for a specific, valid reason.

Sets forth provisions governing the determination of a fair market price for a procurement requirement under the set-aside program. Provides that for a new procurement requirement or one lacking a satisfactory procurement history, the estimate of a current fair market price will be derived from a price or cost analysis conducted by the agency offering the requirement to the Administration. Provides that for a procurement requirement with a satisfactory procurement history, the estimate of a current fair market price will be formulated by the agency offering the requirement to the Administration and will be based on recent award prices adjusted to insure comparability. Provides that socially and economically disadvantaged small businesses are entitled to: (1) a written statement detailing the method used by the agency to estimate the current fair market price for such contract; and (2) the right to protest the use of such method to the Administrator, who must render a decision in ten days.

Provides that the Director of Small and Disadvantaged Business Utilization for each agency having procurement powers shall make positive recommendations on whether a particular procurement, which would otherwise be subject to competition, shall be set aside for disadvantaged small business concerns or the small disadvantaged business program established by the Department of Defense. Provides that if the contract officer disapproves such recommendation the disagreement shall be adjudicated pursuant to a specified section of the Defense Federal Acquisition Regulation Supplement. Requires the Administration to issue regulations providing for discovery by the parties to a protest of a small business representation made under the Department of Defense program.

Requires that every contract subject to specified requirements related to the negotiated method of procurement or a subcontracting plan contain a provision providing for liquidated damages if the prime contractor does not implement the Federal policy of awarding subcontracts to small business.

Increases the penalty for misrepresenting the status of a small business to $500,000 (currently, $50,000) plus three times the gross receipts from any prime contract or subcontract obtained by misrepresenting the status of any concern or person. Increases the maximum period of imprisonment for such offense to ten years (currently, five years). Allows any combination (currently, both) of a fine and imprisonment for such offense.

Prohibits any person, while employed by the Administration or for two years thereafter, from owning any stock or other interests in a firm that was certified to receive contracts as a disadvantaged small business during his term of employment. Provides that a violation of such prohibition shall be subject to a civil penalty based on the maximum amount of gain the employee realized or could have realized from trading the stock or ownership interests.

Prohibits any Administration employee from performing the principal functions of a business opportunity specialist, a loan officer, or a business development specialist unless such person receives training that: (1) lasts at least five working days; (2) is conducted as near to the city where the person's work station is located as is practicable; (3) includes instruction on this Act and on business administration; and (4) provides detailed instructions on formulating plans for overcoming deficiencies in businesses in the development program. Requires the first such training session to be conducted within 240 days of the date of enactment of this Act.

Requires business opportunity specialists to assist firms in negotiations for contracts to be let to disadvantaged small business concerns. Requires the Associate Administrator for Minority Small Business and Capital Ownership Development to conduct and participate in training designed to facilitate the rendering of assistance to such businesses.

Requires the Administrator to ensure the development of a performance appraisal system which affords substantial recognition to: (1) how well an assigned portfolio of firms participating in the small business loan program is proceeding towards competitive viability, for business opportunity specialists; and (2) the timeliness and quality of reports, for loan officers and business development specialists.

Requires the Administration to: (1) conduct meetings of present and potential participants in the development program within 60 days after the date of enactment of this Act; (2) publish proposed regulations implementing this Act in the Federal Register within 120 days after the date of enactment; and (3) publish final regulations implementing this Act within 180 days after the date of enactment.

Provides that disagreements between the Administration and a procurement officer which may be appealed to the Secretary or the head of an agency include disagreements over: (1) the terms and conditions of a contract to be let by the Administration; or (2) the selection of a procurement to be let by the Administration.

Allows an individual to assert eligibility for a disadvantaged small business concern for only one such business.

Provides that a business shall not be denied the opportunity to have considered its offer for any procurement contract for the supply of a product solely because it is not the manufacturer or possessor of the product to be supplied, provided such business concern shall: (1) be primarily engaged in the wholesale or retail trade; (2) be a regular dealer in the product to be offered to the Government; and (3) represent that it will supply the product of a domestic small business manufacturer or processor.

Provides that all procurement center representatives may: (1) monitor the performance of the procurement activities to which they are assigned to ascertain compliance with the Administration's powers; (2) report to their immediate supervisors instances of non-compliance; and (3) increase the number and dollar value of procurements established under the Program.

Prohibits the Administration from intervening in a size or Standard Industrial Classification Code designation determination or an appeal of such determination after the Office of Hearings and Appeals has issued a written decision.

Requires the Administration to waive all fees associated with responding to and processing successful and unsuccessful Freedom of Information Act requests from firms participating in the development program.