Business Development Opportunity Act of 1994

TABLE OF CONTENTS:

Title I: Amendments to the Minority Small Business and

Capital Ownership Development

Title II: Contracting Program for Certain Small Business

Concerns

Title III: Expanding Subcontracting Opportunities

Title IV: Repeals and Technical Amendments

Title V: Definitions

Title VI: Regulatory Implementation and Effective Dates

Business Development Opportunity Act of 1994 - Title I: Amendments to the Minority Small Business and Capital Ownership Development Program - Part A: Program Organization and Participation Standards - Amends the Small Business Act to replace certain provisions regarding the minority small business and capital ownership development program with those establishing a Minority Enterprise Development Program.

(Sec. 101) Requires the Program to consist of a Business Creation Phase, a Business Development Phase, and a Business Development (Preferential Contracting) Phase. Provides that only firms participating in the last phase shall be eligible for awards of Federal contracts and refers to such firms as Program participants. Permits firms to participate in the preferential contracting phase for up to nine years.

(Sec. 103) Expands the definition of "socially and economically disadvantaged business concern" to include all Indian tribes and Native Hawaiian organizations for purposes of such Program. (Currently, such definition only includes economically disadvantaged Indian tribes and Native Hawaiian organizations.)

(Sec. 104) Prohibits an applicant from being denied admission into the Program based solely on a determination that the participant has not been in operation for a period of time specified by the Small Business Administration (SBA) if the firm meets specified requirements, including demonstrations of business management and technical expertise, adequate capital, and ability to meet contract requirements.

(Sec. 106) Directs the SBA Administrator to develop an action plan for improving participation in the Program by firms across the nation.

Part B: Business Development Assistance - Removes conditions on the use of working capital provided under loan assistance programs for Program participants.

(Sec. 113) Revises conditions regarding exemptions from surety bond requirements for Program participants. Authorizes Federal agencies with contracting authority to grant such an exemption if: (1) the Program participant provides certification that the firm was unable to obtain the requisite bonding from corporate surety bonding firms even with an SBA-issued guarantee; (2) the participant has provided for the protection of persons furnishing materials or labor under the contract pursuant to specified conditions; and (3) the award value of the contract for which the exemption is sought does not exceed $1 million (currently, $3 million). Terminates such authority after FY 1997.

(Sec. 115) Authorizes financial assistance for business executive education programs conducted by institutions of graduate business education for owners or managers of small business concerns owned by socially and economically disadvantaged individuals.

(Sec. 116) Establishes a Developmental Teaming Program within the Program to encourage the formation of teaming arrangements and long-term strategic business alliances between firms participating in the Program and Program graduates.

Part C: Improving Access to Equity for Program Graduates - Provides that Program participants shall remain eligible for participating in the Program after a transfer of an ownership interest in the firm if ownership and control is: (1) retained by the socially and economically disadvantaged individuals upon whom Program eligibility is based; or (2) acquired by a small business owned and controlled by such individuals who have graduated from the Program or exited the Program through a means other than a termination proceeding. Permits Program participants that are tribally owned corporations to remain eligible for participation with other than a Native American as the firm's chief executive officer if the tribe certifies that it was unable to hire a qualified Native American after conducting national recruitment.

Part D: Contract Award and Eligibility Matters - Removes existing provisions regarding contracts and subcontracts to disadvantaged small businesses.

(Sec. 131) Directs the SBA to ensure that contracts sufficient to satisfy the contract support levels identified by Program participants are designated by Federal agencies for award. Requires the award of contracts to be made on a noncompetitive basis and at fair market prices.

(Sec. 132) Revises contract eligibility provisions with respect to Program participants.

(Sec. 133) Authorizes the Associate Administrator for Minority Enterprise Development to permit the noncompetitive award of contracts to Program participants to exceed certain amounts subject to certain conditions.

(Sec. 135) Provides that the forecasts of overall business activity contained in the business plans of Program participants or estimates contained in contract support levels shall not be used by the SBA to determined that a firm is ineligible for a contract.

(Sec. 137) Requires the SBA to promulgate regulations to eliminate regulatory limitations on self-marketing by Program participants.

Part E: Tribally Owned Corporations - Authorizes contracts to be awarded to joint ventures owned and controlled by Program participants, notwithstanding the size status of such a joint venture, if the participant: (1) is owned and controlled by an Indian tribe; (2) owns at least 51 percent of the joint venture; (3) is located and performs most of its activities on the Indian reservation; and (4) employs members of such tribe for at least 50 percent of the work force of the joint venture. Prohibits such contracts if the tribe owns and controls one or more participants who are currently joint venturers on more than five of such contracts.

Part F: Contract Administration Matters - Directs Federal agencies awarding contracts to disadvantaged small businesses to make reasonable efforts to respond to requests by contracting officers with respect to contract administration matters. Requires such agency, upon the request of a Program participant, to make alternative dispute resolution available.

Part G: Program Administration - Requires Program participants to report specified information annually (currently, semiannually) to a Business Opportunity Specialist.

Title II: Contracting Program for Certain Small Business Concerns - Part A: Civilian Agencies Program - Authorizes executive agencies, for purposes of attaining goals for the participating of disadvantaged small businesses, to enter into contracts using: (1) less than full and open competition by restricting competition for awards to such businesses; and (2) a price evaluation preference, of up to ten percent, when evaluating an offer received from a small business as the result of an unrestricted solicitation.

(Sec. 202) Requires the Federal Acquisition Regulation (FAR) to be amended to provide uniform implementation of such procedures by such agencies. Includes within the FAR: (1) conditions for the use of advance payments; (2) provisions for accelerated payment for contract work and full payment for work performed; (3) guidance on how contracting officers may provide a reasonable advantage to disadvantaged small businesses without eliminating any participation of other small businesses; (4) procedures for a person to request a Federal agency to determine whether the use of competitions restricted to disadvantaged small businesses at a contracting activity has caused a particular industry category to bear a disproportionate share of the contracts awarded to attain the goal established for such activity; and (5) guidance for limiting the use of restricted competitions in cases where such an industry is caused to bear a disproportionate share of the contracts.

Part B: Eligibility Determinations Regarding Status - Authorizes protests to be brought regarding a self-certification by a business regarding its status as a disadvantaged small business in cases where such certification is believed to be false.

(Sec. 211) Requires the Office of Hearings and Appeals to hear appeals regarding such status. Imposes penalties against firms engaged in a pattern of misrepresentation.

Title III: Expanding Subcontracting Opportunities - Sets forth provisions regarding subcontracting by small and disadvantaged small businesses.

(Sec. 302) Requires disadvantaged small businesses to negotiate a subcontracting plan for the use of emerging disadvantaged small businesses under certain circumstances.

(Sec. 304) Authorizes the publication of notices of subcontracting opportunities in the Commerce Business Daily.

Title IV: Repeals and Technical Amendments - Part A: Repeals - Repeals specified expired and superseded provisions of the Small Business Act and the Business Opportunity Development Reform Act of 1988.

Part B: Technical Amendments - Revises goals for the percentage of procurement contracts to be awarded to small and disadvantaged small businesses.

Title V: Definitions - Revises specified definitions and defines "emerging small business concern."

Title VI: Regulatory Implementation and Effective Dates - Part A: Assuring Timely Regulatory Implementation - Sets forth deadlines for the issuance of specified amendments to the FAR or SBA regulations.

Part B: Effective Dates - Provides that this Act shall take effect upon enactment, except with respect to provisions requiring the issuance of regulations.