GOOD FAITH IN SUBCONTRACTING.

SEC. 1821. GOOD FAITH IN SUBCONTRACTING. (a) Transparency in Subcontracting Goals.—Section 8(d)(9) of the Small Business Act (15 U.S.C. 637(d)(9)) is amended— (1) by striking “(9) The failure” and inserting the following: “(9) Material breach. The failure” ; (2) in subparagraph (A), by striking “or” at the end; (3) in subparagraph (B), by inserting “or” at the end; (4) by inserting after subparagraph (B) the following new subparagraph: “(C) assurances provided under paragraph (6)(E),” ; and (5) by moving the margins of subparagraphs (A) and (B), and the matter after subparagraph (C) (as inserted by paragraph (4)), 2 ems to the right. (b) Review of Subcontracting Plans.—Section 15(k) of the Small Business Act (15 U.S.C. 644(k)) as amended by this Act, is further amended by inserting after paragraph (19) (as inserted by section 1813 of this Act) the following new paragraph: “(20) shall review all subcontracting plans required by paragraph (4) or (5) of section 8(d) to ensure that the plan provides maximum practicable opportunity for small business concerns to participate in the performance of the contract to which the plan applies.” . (c) [15 U.S.C. 637 note] Good Faith Compliance.—Not later than 270 days after the date of enactment of this title, the Administrator of the Small Business Administration shall provide examples of activities that would be considered a failure to make a good faith effort to comply with the requirements imposed on an entity (other than a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632)) that is awarded a prime contract containing the clauses required under paragraph (4) or (5) of section 8(d) of the Small Business Act (15 U.S.C. 637(d)).