FINDINGS AND PURPOSES.

SEC. 101. FINDINGS AND PURPOSES. (a) Findings.— The Congress finds that— (1) the Capital Ownership Development Program administered by the Small Business Administration and the award of contracts pursuant to section 8(a) of the Small Business Act remain a primary tool for improving opportunities for small business concerns owned and controlled by socially and economically disadvantaged individuals in the Federal procurement process and bringing such concerns into the nation’s economic mainstream; (2) although some progress has resulted from the Program, it has generally failed to meet its objectives, which remain as valid now as when the Program was initiated; (3) too few concerns that have exited the Program have been prepared to compete successfully in the open marketplace on competitive procurements, and many concerns have developed an unhealthy dependency on sole-source contracts by the time they are required to leave the Program; (4) the application and certification process for admitting new participants to the Program is inordinately lengthy and burden-some; (5) the Administration has often not efficiently and equitably administered and managed the Program in a manner that provided clear lines of responsibility for implementing and monitoring many of the administrative duties under the Program; (6) the Administration and some program participants have given insufficient attention and support to the business development goals of the Program and instead have focused almost entirely on the size of contract awards or the number of firms certified to participate in the Program; (7) many Federal procuring agencies have failed to identify and offer the necessary amount of contract support in order to allow for diversification and growth of disadvantaged businesses participating in the Program; (8) contract support as well as business development expenses have been misused both by the Administration and Program participants and have not been equitably distributed pursuant to objective criteria; (9) the widespread perception of undue political influence in the operation and administration of the Program has significantly contributed to the Program’s poor image and has deterred utilization of the Program by socially and economically disadvantaged concerns and by Federal procuring agencies; and (10) it is imperative that increased competition and other substantial reforms be accomplished in the Program in order to promote the Congressionally mandated business development objectives and purposes. (b) Purposes.— The purposes of this Act therefore are to— (1) affirm that the Capital Ownership Development Program and the section 8(a) authority shall be used exclusively for business development purposes to help small businesses owned and controlled by the socially and economically disadvantaged102 STAT. 3856 to compete on an equal basis in the mainstream of the American economy; (2) affirm that the measure of success of the Capital Owner-ship Development Program, and the section 8(a) authority, shall be the number of competitive firms that exit the Program without being unreasonably reliant on section 8(a) contracts and that are able to compete on an equal basis in the mainstream of the American economy; (3) ensure that program benefits accrue to individuals who are both socially and economically disadvantaged; (4) increase the number of small businesses owned and controlled by such individuals from which the United States may purchase products and services (including construction work); and (5) ensure integrity, competence, and efficiency in the administration of business development services and the Federal contracting opportunities made available to eligible small businesses.