CODIFICATION AND AMENDMENT OF SECTION 1207.

SEC. 801. CODIFICATION AND AMENDMENT OF SECTION 1207. (a) Codification.—(1) Chapter 137 of title 10, United States Code, is amended by inserting after section 2322 a new section 2323 consisting of— (A) a heading as follows: “§2323. Contract goal for small disadvantaged businesses and certain institutions of higher education”; and (B) a text consisting of the text of section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99–661), revised— (i) by replacing “each of fiscal years 1987, 1988, 1989, 1990, 1991, 1992, and 1993” in subsection (a)(1) with “each of fiscal years 1987 through 2000”; (ii) by replacing “each of fiscal years 1987, 1988, 1989, 1990, 1991, 1992, and 1993.” in subsection (h) with “each of fiscal years 1987 through 2000”; and (iii) by replacing “of title 10, United States Code,” in subsection (e)(2) with “of this title”. (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2322 the following new item: “2323. Contract goal for small disadvantaged businesses and certain institutions of higher education.”. (b) Goals.—Subsection (a) of section 2323 of title 10, United States Code, as added by subsection (a), is amended by adding at the end the following new paragraph: “(3) The Secretary of Defense shall prescribe regulations that provide procedures or guidelines for contracting officers to set goals which Department of Defense prime contractors that are required to submit subcontracting plans under section 8(d)(4)(B) of the Small Business Act (15 U.S.C. 637(d)(4)(B)) in furtherance of the Department’s program to meet the 5 percent goal specified in paragraph (1) should meet in awarding subcontracts, including subcontracts to minority-owned media, to entities described in that paragraph.”. (c) Actions To Attain Goal.—Subsection (e) of section 2323 of title 10, United States Code, as added by subsection (a), is amended— (1) in the matter preceding paragraph (1), by striking out “subsection (a)—” and inserting in lieu thereof “subsection (a):”; (2) by striking out paragraph (1), and inserting in lieu thereof the following: “(1)(A) The Secretary of Defense shall— “(i) ensure that substantial progress is made in increasing awards of Department of Defense contracts to entities described in subsection (a)(1); “(ii) exercise his utmost authority, resourcefulness, and diligence; and “(iii) actively monitor and assess the progress of the military departments, Defense Agencies, and prime con-106 STAT. 2443tractors of the Department of Defense in attaining such goal. (B) In making the assessment under subparagraph (A)(iii), the Secretary shall evaluate the extent to which use of the authority provided in paragraphs (2) and (3) and compliance with the requirement in paragraph (4) is effective for facilitating the attainment of the goal.”; (3) by adding at the end of paragraph (2) the following: “The Secretary shall prescribe regulations that provide guidance to contracting officers for making advance payments to entities described in subsection (a)(1) under such section.”; (4) in paragraph (3), by inserting “and partial set asides for entities described in subsection (a)(1)” after “(including awards under section 8(a) of the Small Business Act”; and (5) by adding at the end the following new paragraph: “(5) The Secretary shall prescribe regulations which provide for the following: “(A) Procedures or guidance for contracting officers to provide incentives for prime contractors referred to in subsection (a)(3) to increase subcontractor awards to entities described in subsection (a)(1). “(B) A requirement that contracting officers emphasize the award of contracts to entities described in subsection (a)(1) in all industry categories, including those categories in which such entities have not traditionally dominated. “(C) Guidance to Department of Defense personnel on the relationship among the following programs: “(i) The program implementing this section. “(ii) The program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)). “(iii) The small business set-aside program established under section 15(a) of the Small Business Act (15 U.S.C. 644(a)). “(D) With respect to a Department of Defense procurement which is reasonably likely to be set aside for entities described in subsection (a)(1), a requirement that (to the maximum extent practicable) the procurement be designated as such a set-aside before the solicitation for the procurement is issued. “(E) Policies and procedures which, to the maximum extent practicable, will ensure that current levels in the number or dollar value of contracts awarded under the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) and under the small business set-aside program established under section 15(a) of the Small Business Act (15 U.S.C. 644(a)) are maintained and that every effort is made to provide new opportunities for contract awards to eligible entities, in order to meet the goal of subsection (a). “(F) Implementation of this section in a manner which will not alter the procurement process under the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)). “(G) A requirement that one factor used in evaluating the performance of a contracting officer be the ability of the officer to increase contract awards to entities described in subsection (a)(1). 106 STAT. 2444 “(H) Increased technical assistance to entities described in subsection (a)(1).” (d) Requirements Relating to Status.— Subsection (f) of section 2323 of title 10, United States Code, as added by subsection (a), is amended— (1) by striking out “Penalties for Misrepresentation.—Whoever” and inserting in lieu thereof “Penalties and Regulations Relating to Status.—(1) Whoever”; and (2) by adding at the end the following new paragraph: “(2) The Secretary of Defense shall prescribe regulations which provide for the following: “(A) A requirement that a business which represents itself as an entity described in subsection (a)(1) and is seeking a Department of Defense contract maintain its status as an entity at the time of contract award. “(B) A prohibition on the award of a contract under this section to an entity described in subsection (a)(1) unless the entity agrees to comply with the requirements of section 15(o)(1) of the Small Business Act (15 U.S.C. 644(o)(1)).”. (e) Determination by Secretary of Defense.—Section 2323 of title 10, United States Code, as added by subsection (a), is further amended— (1) by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and (2) by adding after subsection (f) the following new subsection (g): “(g) Determination by Secretary of Defense.—Under procedures prescribed by the Secretary of Defense, a person may request the Secretary to determine whether the use of small disadvantaged business set asides by a contracting activity of the Department of Defense has caused a particular industry category to bear a disproportionate share of the contracts awarded to attain the goal established for that contracting activity for the purposes of this section. Upon making a determination that a particular industry category is bearing a disproportionate share, the Secretary shall take appropriate actions to limit the contracting activity’s use of set asides in awarding contracts in that particular industry category.”. (f) Repeal of Report on Progress in Meeting Contracting Goals.—Effective on October 1, 1993, subsection (h) (as redesignated by subsection (e)) of section 2323 of title 10, United States Code, as added by subsection (a), is amended— (1) “Reports”in the subsection heading and inserting in lieu thereof “Report”; (2) by striking out “final” in paragraph (2); (3) by striking out “July 15” in paragraph (1) and all that follows through “Not later than” in paragraph (2); (4) by redesignating paragraph (3) as paragraph (2) and in that paragraph striking out “reports described in paragraphs (1) and (2) shall each” and inserting in lieu thereof “report required under paragraph (1) shall”; (5) by redesignating paragraph (4) as paragraph (3) and in that paragraph striking out “reports required under paragraph (2)” and inserting in lieu thereof “report required under paragraph (1)”; and (6) by striking out paragraph (5). 106 STAT. 2445 (g) Codification of Related Provision.—(1) Chapter 137 of title 10, United States Code, is amended by inserting after section 2323 (as added by subsection (a)) a new section consisting of— (A) a heading as follows: “§ 2323a. Credit for Indian contracting in meeting certain subcontracting goals for small disadvantaged businesses and certain institutions of higher education”; and (B) a text consisting of the text of section 832 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189; 10 U.S.C. 2301 note), revised in subsection (a) by replacing “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)” with “section 2323 of this title”. (2) The table of sections at the beginning of such chapter, as amended by subsection (a), is further amended by inserting after the item relating to section 2323 the following: “2323a. Credit for Indian contracting in meeting certain subcontracting goals for small disadvantaged businesses and certain institutions of higher education.”. (h) Conforming Repeals and Redesignations.—(1) Section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99–661; 100 Stat. 3973) is repealed. (2) Section 2304(b)(2) of title 10, United States Code, is amended by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)” and inserting in lieu thereof “section 2323 of this title”. (3) Section 812(a) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102–190; 105 Stat. 1424) is amended by striking out “section 1207(c)(3) of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note).” and inserting in lieu thereof “section 2323(c)(3) of title 10, United States Code.”. (4) Section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2301 note) is amended— (A) in subsection (m)(4), by striking out “section 1207(a)(2) of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note).” and inserting in lieu thereof “section 2323 of title 10, United States Code.”; and (B) in subsection (m)(6), by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)” and inserting in lieu thereof “section 2323 of title 10, United States Code,”. (5) Section 832 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189; 10 U.S.C. 2301 note) is repealed. (6) Section 843 of the National Defense Authorization Act, Fiscal Year 1989 (44 U.S.C. 502 note), is amended— (A) in subsection (b), by striking out “section 1207(a) of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99–661: 100 Stat. 3973).” and inserting in lieu thereof “section 2323(a) of title 10, United States Code.”; (B) in subsection (c), by striking out “section 1207(f) of the National Defense Authorization Act for Fiscal Year 1987 106 STAT. 2446(Public Law 99–661: 100 Stat. 3974).” and inserting in lieu thereof “section 2323(f) of title 10, United States Code.”; and (C) in subsection (d)— (i) by striking out “Section 1207 Goals.—” and inserting in lieu thereof “Department of Defense Goals.—”; and (ii) by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99–661: 100 Stat. 3973),” and inserting in lieu thereof “section 2323 of title 10, United States Code,”. (7) Section 806 of the National Defense Authorization Act for Fiscal Years 1988 and 1989 (Public Law 100–180; 10 U.S.C. 2301 note) is repealed. (8) Section 15 of the Small Business Act (15 U.S.C. 644) is amended— (A) in subsection (k)(9), by striking out “section 1207 of Public Law 99–661.” and inserting in lieu thereof “section 2323 of title 10, United States Code.”; (B) in subsection (m)(1), by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)” and inserting in lieu thereof “section 2323 of title 10, United States Code,”; and (C) in subsection (m)(2)(C), by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note).” and inserting in lieu thereof “section 2323 of title 10, United States Code.” (9) The Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended— (A) in section 713(a), by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987)” and inserting in lieu thereof “section 2323 of title 10, United States Code)”; (B) in section 721(a)(2)(B), by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note);” and inserting in lieu thereof “section 2323 of title 10, United States Code ”; and (C) in section 722(c)(1), by striking out “section 1207 of the National Defense Authorization Act for Fiscal Year 1987.” and inserting in lieu thereof “section 2323 of title 10, United States Code.”.