A bill to amend the Small Business Act to provide that, with respect to any possession of the United States or any State located outside the contiguous 48 States, the set-aside programs shall not require certain contracts to be performed by small business concerns located outside such a State or possession.

Amends the Small Business Act to provide that local small business concerns which are located in any noncontiguous State or possession of the United States will be given priority over small business concerns that are located outside of such State or possession when competing for a Government contract which is under the small business set-aside program and a substantial portion of which is to be performed in such State or possession.