A bill to provide graduates of the Small Business Administration's Minority Small Business and Capital Ownership Development Program with opportunities to compete for certain contracts under limited circumstances.

Provides that a contract to furnish products or services to a participating agency shall be competed for if: (1) there is a reasonable expectation of receiving offers from two or more eligible small business concerns owned and controlled by socially and economically disadvantaged individuals who are capable of performing the contract; (2) a contract to furnish the same (or substantially similar) products or services is being performed under a contract competitively awarded pursuant to provisions of the Small Business Act (the Act); and (3) the contractor currently performing such contract will have graduated from the Small Business Administration's Minority Small Business and Capital Ownership Development Program prior to the issuance of the solicitation for the new contract.

Requires the head of a participating agency to restrict the competition for the award of such a contract to small business concerns owned and controlled by socially and economically disadvantaged individuals. Makes a small business concern, where the contractor currently performing the contract will have graduated from the Program prior to the issuance of the solicitation for such contract, ineligible for award of a contract resulting from a restricted competition unless such concern furnishes (and the contracting officer accepts) a plan to subcontract not less than 25 percent of the contract value to one or more small business concerns in the developmental stage of the Program.

Directs the head of a Federal agency awarding a contract pursuant to a restricted competition under this Act to cooperate with the Administrator of the Small Business Administration to have any subsequent requirement for the product or service furnished pursuant to a contract awarded under the authority of the Act.

Revises provisions of the Act regarding business activity targets to require that: (1) during the developmental stage of its participation in the Program, a Program participant take all reasonable efforts within its control to attain the targets contained in its business plan for specified contracts (as under current law) on a noncompetitive basis; and (2) regulations promulgated during the transitional stage of the Program establish targets that reflect a reasonably consistent increase in specified contracts awarded (as under current law) on a noncompetitive basis.

Repeals provisions prohibiting small business concerns from being required to provide a bond as a condition of receiving a subcontract under specified conditions and concerning waiver of bonds.