1. GSA in its testimony before the subcommittee stated that it intended all civilian agencies to start compliance with section 211 of P.L. 95-507 as of April 10, 1978. As of what date is your agency undertaking a review of solicitations? If not April 10, please explain why not? 2. Please describe the report you were requested to submit to SBA at the conclusion of FY 1979 on the extent of participation by small business in procurement contracts let by your agency. If your agency has not submitted such report, when will this be done? 3. Please describe your performance in meeting your agency's goals for participation by small business in subcontracts as required by section 211 of P.L. 95-507. Has your agency and the SEA failed to agree on established goals? If so, has this disagreement been submitted to OFPP for final determination? 4. Describe what studies or surveys your agency has conducted to determine the extent of contractor's compliance with the "best efforts" subcontracting clause. Have any guidelines been established for making this determination? 5. What incentives has your agency provided to encourage maximum subcontracting opportunities as required by section 211 of the law? 6. As of the date of your response to this letter, describe your compliance with the subcontracting provisions mandated by section 211 of P.L. 95-507 including (a) the number of deficient solicitations and contracts you have remedied since December 4, 1979, (b) the number of solicitations issued since December 4, 1979 which are deficient, and (c) the total number and dollar amount of prime contracts awarded since December 4, 1979 which do not contain required subcontracting plans. This is in response to your letter of December 21, 1979 requesting 1. General Services Administration (GSA) in its testimony before Answer: The Department is using the date of the telegram from GSA 2. Please describe the report you were requested to submit to the Answer: There are no requirements to submit a report to SBA on the SPEED 55 It's a law we can live with. 2 3. Please describe your performance in meeting your agency's goals for participation by small business in subcontracting as required by section 211 of P.L. 95-507. Has your agency and the SBA failed to agree on establsihed goals? If so, has this disagreement been submitted to OFPP for final determination? Answer: The Office of Federal Procurement Policy has requested 4. Describe what studies or surveys your agency has conducted Answer: The Department has not yet conducted any surveys on the extent of contractor compliance with the "best efforts" subcontracting clause. To date, there are insufficient numbers of subcontracting plans to warrant a study. However, as more contracts are executed within the dollar threshold established by P.L. 95-507 we will incorporate_contract compliance of subcontracting plans into our program evaluation design. We have not, at this time, established the necessary guidelines for evaluating contractor's compliance with the "best efforts" subcontracting clause. 5. What incentives has your agency provided to encourage maximum subcontracting opportunities as required by section 211 of the law? Answer: We have not had sufficient experience to know whether there is a need for an incentive program to encourage maximum subcontracting opportunities. We will design incentive programs to meet specific contractors needs as determined by the results of our evaluation of small business subcontracting opportunities with prime contractors. 6. As of the date of your response to this letter, describe your compliance with the subcontracting provisions mandated by section 211 of P.L. 95-507 including (a) the number of deficient solicitations and contracts you have remedied since December 4, 1979, (b) the number of solicitations issued since December 4, 1979 which are deficient, and (c) the total number and dollar amount of prime contracts awarded since December 4, 1979 which do not contain required subcontracting plans. Answer: (a) Number of solicitations remedied since December 4, 1979: Nineteen (19) 3 (b) Number of contracts remedied since December 4, There were eighteen contracts valued at $155 (1) One contract has been completed (Four of these are valued at approximately $126 million and substantial progress has been (c) Number of solicitations issued December 4 which are (d) Number and dollar amount of prime awarded since None Sincerely, WILBERT E. CANTEY Director, Office of Small and The ·wary To amend the Small Business Act and the Small Business Investment Act of 1958. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-AMENDMENTS TO THE SMALL BUSINESS CHAPTER 1 SEC. 101. Section 303 (c) (1) of the Small Business Investment Act of 1958 is amended to read as follows: "(1) shares of nonvoting stock (or other corporate securities having similar characteristics), provided "(i) dividends are preferred and cumulative to the extent of 3 per centum of par value per annum; "(ii) on liquidation of redemption the Administration is entitled to the preferred payment of the par value of such securities; and prior to any distribution (other than to the Administration) the Administration shall be paid any amounts as may be due pursuant to subparagraph (i) of this paragraph; "(iii) the purchase price shall be at par value and, in any one sale, $50,000 or more; and "(iv) the amount of such securities purchased and outstanding at any one time shall not exceed (A) from a company licensed on or before October 13, 1971, 200 per centum of the combined private paid-in capital and paid-in surplus of such company, or "(B) from any such company licensed after October 13, 1971, and having a combined paid-in capital and paid-in surplus of less than $500,000, 100 per centum of such capital and surplus, or "(C) from any such company licensed after October 13, 1971, and having a combined private paid-in capital and paid-in surplus of $500,000 or more, 200 per centum of such capital and surplus. Oct. 24, 1978 [H.R. 11318] Small Business 1958, Purchase and guarantee operations. 15 USC 683. securities." "The amount of such securities purchased by the Administration in excess of 100 per centum of such capital and surplus from any company described in clause (A) or (C) may not exceed an amount equal to the amount of its funds invested in or legally committed to be invested in equity securities. For the purposes of "Equity the subsection, the term 'equity securities' means stock of any class (including preferred stock) or limited partnership interests, or shares in a syndicate, business trust, joint stock company or association, mutual corporation, cooperative or other joint ventures for profit, or unsecured debt instruments which are subordinated by their terms to all other borrowings of the issuer.”. SEC. 102. The last sentence of section 308(b) of the Small Business Investment Act of 1958 is amended to read as follows: "Such com 15 USC 687. 39-081 - 79 |