text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Small Business Partners in 
  Reconstruction Act of 2006''.
  
  SEC. 2. DEFINITIONS.
  
      In this Act--
              (1) the terms ``Administration'' and ``Administrator'' mean 
          the Small Business Administration and the Administrator 
          thereof, respectively;
              (2) the term ``small business concern'' has the same 
          meaning as in section 3 of the Small Business Act (15 U.S.C. 
          632); and
              (3) the term ``small business concern owned and controlled 
          by socially and economically disadvantaged individuals'' has 
          the same meaning as in section 8 of the Small Business Act (15 
          U.S.C. 637).
  
  SEC. 3. SMALL BUSINESS PROCUREMENT FLEXIBILITIES; GOVERNMENT-WIDE 
                GUIDANCE.
  
      Section 5 of the Small Business Act (15 U.S.C. 634) is amended by 
  adding at the end the following:
      ``(i) Small Business Emergency Procurement Flexibilities; 
  Government-Wide Guidance.--
              ``(1) Definition.--In this subsection, the term 
          `Guidelines' means the guidelines entitled `Emergency 
          Procurement Flexibilities (A Framework for Responsive 
          Contracting & Guidelines for Using Simplified Acquisition 
          Procedures)' issued by the Office of Federal Procurement Policy 
          of the Office of Management and Budget on May 30, 2003, or any 
          successor thereto.
              ``(2) Office of federal procurement policy.--In order to 
          enable the Federal Government to purchase goods and service 
          quickly and efficiently in times of disaster, contingency, or 
          other emergency, while promoting small business concern 
          utilization, the Administrator for Federal Procurement Policy 
          shall--
                      ``(A) ensure that the Guidelines continue to 
                  strongly encourage that the Federal Government utilize 
                  the small business procurement flexibilities in this 
                  Act;
                      ``(B) ensure that the Guidelines fully address all 
                  available small business procurement flexibilities 
                  (including flexibilities authorized for small business 
                  concerns owned and controlled by socially and 
                  economically disadvantaged individuals under section 
                  8(a), HUBZone small business concerns, and small 
                  business concerns owned and controlled by service-
                  disabled veterans);
                      ``(C) periodically revise, update, or modify the 
                  Guidelines;
                      ``(D) publish the Guidelines, as updated to comply 
                  with this paragraph, in the Federal Register; and
                      ``(E) consult with the Administrator on any changes 
                  to the Guidelines.
              ``(3) Administration.--The Administrator shall, with regard 
          to the Guidelines--
                      ``(A) develop and conduct ongoing government-wide 
                  training on small business emergency procurement 
                  flexibilities (including flexibilities authorized for 
                  small business concerns owned and controlled by 
                  socially and economically disadvantaged individuals 
                  under section 8(a), HUBZone small business concerns, 
                  and small business concerns owned and controlled by 
                  service-disabled veterans); and
                      ``(B) designate not fewer than 1 official to 
                  provide advice and assistance to the Office of Federal 
                  Procurement Policy and other Federal agencies on the 
                  use of small business procurement flexibilities in 
                  times of disaster, contingency, or other emergency.''.
  
  SEC. 4. PAPERWORK RECIPROCITY FOR SMALL DISASTER CONTRACTORS.
  
      Not later than 30 days after the date of enactment of this Act, the 
  Administrator shall ensure that all eligible small business concerns 
  receive the full benefit of reciprocity in certifications between 
  Federal and Federally-funded contracting programs for small business 
  concerns owned and controlled by socially and economically 
  disadvantaged individuals.
  
  SEC. 5. HURRICANE KATRINA AND RITA SMALL BUSINESS CONTRACTING DATA.
  
      Not later than 30 days after the date of enactment of this Act, the 
  Administrator for Federal Procurement Policy and the Administrator 
  shall ensure that the Federal Procurement Data System contains 
  comprehensive Government-wide data on small business participation in 
  contracting related to Hurricane Katrina of 2005 or Hurricane Rita of 
  2005.
  
  SEC. 6. DISASTER AREA HUBZONES.
  
      Section 3(p)(1) of the Small Business Act (15 U.S.C. 632(p)(1)) is 
  amended--
              (1) in subparagraph (D), by striking ``or'';
              (2) in subparagraph (E), by striking the period and 
          inserting ``; or''; and
              (3) by adding at the end the following:
                      ``(F) any area affected by Hurricane Katrina of 
                  2005 or Hurricane Rita of 2005, for such time or in 
                  such geographic area as designated by the 
                  Administrator.''.
  
  SEC. 7. DISASTER CONTRACTING OUTREACH PROGRAMS FOR SMALL BUSINESSES.
  
      (a) In General.--Not later than 90 days after the date of enactment 
  of this Act, the Administrator shall establish a contracting outreach 
  and technical assistance program for small business concerns that--
              (1) had a primary place of business, or other significant 
          presence, in the area affected by Hurricane Katrina of 2005 or 
          Hurricane Rita of 2005, as designated by the Administrator 
          under section 7(b)(2) of the Small Business Act, beginning on 
          the date that is 60 days before the date of that designation by 
          the Administrator; or
              (2) have a primary place of business, or other significant 
          presence, in the area affected by Hurricane Katrina of 2005 or 
          Hurricane Rita of 2005, as designated by the Administrator 
          under section 7(b)(2) of the Small Business Act, during the 
          period beginning on the date of that designation and ending on 
          the date that is 5 years after the date of that designation.
      (b) Administrator Action.--The Administrator may fulfill the 
  requirement of subsection (a) by acting through--
              (1) the Administration;
              (2) the Federal agency small business officials designated 
          under section 15(k)(1) of the Small Business Act (15 U.S.C. 
          644(k)(1)); and
              (3) any Federal, State, or local government entity, higher 
          education institution, Procurement Technical Assistance Center, 
          or private nonprofit organization that the Administrator 
          determines is proper, upon conclusion of a memorandum of 
          understanding or assistance agreement, as appropriate, with the 
          Administrator.
  
  SEC. 8. SMALL BUSINESS BONDING THRESHOLD.
  
      (a) In General.--Except as provided in subsection (b), and 
  notwithstanding any other provision of law, for any procurement related 
  to Hurricane Katrina of 2005 or Hurricane Rita of 2005, the 
  Administrator may, upon such terms and conditions as the Administrator 
  may prescribe, guarantee and enter into commitments to guarantee any 
  surety against loss resulting from a breach of the terms of a bid bond, 
  payment bond, performance bond, or bonds ancillary thereto, by a 
  principal on any total work order or contract amount at the time of 
  bond execution that does not exceed $5,000,000.
      (b) Increase of Amount.--Upon request of the head of any Federal 
  agency other than the Administration involved in reconstruction efforts 
  in response to Hurricane Katrina of 2005 or Hurricane Rita of 2005, the 
  Administrator may guarantee and enter into a commitment to guarantee 
  any security against loss under subsection (a) on any total work order 
  or contract amount at the time of bond execution that does not exceed 
  $10,000,000.
  
  SEC. 9. FAIR SMALL BUSINESS PARTICIPATION.
  
      In order to facilitate the maximum practicable participation of 
  small business concerns in activities related to relief and recovery 
  from Hurricane Katrina of 2005 and Hurricane Rita of 2005, the 
  Administrator and the head of any Federal agency making procurements 
  related to the aftermath of Hurricane Katrina of 2005 or Hurricane Rita 
  of 2005, shall set a goal of awarding to small business concerns not 
  less than 30 percent of amounts expended for prime contracts and not 
  less than 40 percent of amounts expended for subcontracts on 
  procurements by such agency related to the aftermath of Hurricane 
  Katrina of 2005 or Hurricane Rita of 2005, respectively.
  
  SEC. 10. PROTECTION OF SMALL BUSINESS RESERVATION.
  
      Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is 
  amended by adding at the end the following:
      ``(4) For any contracts involving the use of the special emergency 
  procurement authority under section 32A(c) of the Office of Federal 
  Procurement Policy Act (41 U.S.C. 428a(c)), the dollar ceiling of the 
  small business reservation established in paragraph (1) shall be 
  adjusted to match the applicable amount of the simplified acquisition 
  threshold.''.
  
  SEC. 11. SMALL BUSINESS MULTIPLE-AWARD DISASTER CONTRACTS.
  
      (a) In General.--The Administrator and the Administrator for 
  Federal Procurement Policy shall ensure that the Federal Government 
  establishes and maintains multiple-award contracts with small business 
  concerns of all categories on a nationwide and regional basis for the 
  purpose of conducting or supporting Federal disaster recovery efforts.
      (b) Report.--At the end of each fiscal year, the Administrator and 
  the Administrator for Federal Procurement Policy shall submit to 
  Committee on Small Business and Entrepreneurship of the Senate and the 
  Committee on Small Business of the House of Representatives a report 
  describing the terms, conditions, and status of the contracts described 
  in subsection (a) awarded during the preceding fiscal year.
  
  SEC. 12. TRANSPARENCY IN DISASTER SUBCONTRACTING.
  
      The Administrator and the head of each executive agency awarding 
  recovery and reconstruction contracts related to Hurricane Katrina of 
  2005 or Hurricane Rita of 2005 shall ensure that each such contract for 
  which a small business subcontracting plan is required by law or 
  contract terms contains a clause requiring the posting of 
  subcontracting opportunities on the SUB-Net database established by the 
  Administration under section 8(e) of the Small Business Act (15 U.S.C. 
  637(e)), or any successor thereto.
  
  SEC. 13. PROTECTION OF SMALL BUSINESS SUBCONTRACTING.
  
      Section 8(d)(4)(D) of the Small Business Act (15 U.S.C. 
  637(d)(4)(D)) is amended--
              (1) by striking ``(D) No contract'' and inserting the 
          following:
                      ``(D) Small business participation.--
                              ``(i) In general.--No contract''; and
              (2) by adding at the end the following:
                              ``(ii) Emergency procurements.--
                                      ``(I) In general.--For any contract 
                                  which otherwise meets the requirements 
                                  of this subsection, and which involves 
                                  the use of special emergency 
                                  procurement authority under section 
                                  32A(c) of the Office of Federal 
                                  Procurement Policy Act (41 U.S.C. 
                                  428a(c)), the subcontracting plan 
                                  required under this subsection shall be 
                                  negotiated as soon as is practicable, 
                                  but not later than 30 days after the 
                                  date on which the contract is awarded.
                                      ``(II) Payment.--Not greater than 
                                  50 percent of the amounts due under any 
                                  contract described in subclause (I) may 
                                  be paid, unless a subcontracting plan 
                                  compliant with this subsection is 
                                  negotiated by the contractor.''.
  
  SEC. 14. CONTRACTING PRIORITY FOR LOCAL SMALL BUSINESSES.
  
      Section 15(d) of the Small Business Act (15 U.S.C. 644(d)) is 
  amended--
              (1) by striking ``(d) For purposes'' and inserting the 
          following:
      ``(d) Contracting Priorities.--
              ``(1) In general.--For purposes''; and
              (2) by adding at the end the following:
              ``(2) Disaster contracting priority in general.--The 
          Administrator shall designate any disaster area as an area of 
          concentrated unemployment or underemployment, or a labor 
          surplus area for purposes of paragraph (1).
              ``(3) Local small businesses.--
                      ``(A) In general.--The Administrator shall give 
                  priority in the awarding of contracts and the placement 
                  of subcontracts for disaster relief to local small 
                  business concerns.
                      ``(B) Other agencies.--The head of each executive 
                  agency shall give priority in the awarding of contracts 
                  and the placement of subcontracts for disaster relief 
                  to local small business concerns, by using, as 
                  appropriate--
                              ``(i) preferential factors in evaluations 
                          of contract bids and proposals;
                              ``(ii) competitions restricted to local 
                          small business concerns, where there is a 
                          reasonable expectation of receiving 
                          competitive, reasonably priced bids or 
                          proposals from not fewer than 2 local small 
                          business concerns;
                              ``(iii) requirements of preference for 
                          local small business concerns in subcontracting 
                          plans; and
                              ``(iv) assessments of liquidated damages 
                          and other contractual penalties, including 
                          contract termination.
                      ``(C) Other disaster assistance.--Priority shall be 
                  given to local small business concerns in the awarding 
                  of contracts and the placement of subcontracts for 
                  disaster relief in any Federal procurement and any 
                  procurement by a State or local government made with 
                  Federal disaster assistance funds.
              ``(4) Definitions.--In this subsection--
                      ``(A) the term `declared disaster' means Hurricane 
                  Katrina of 2005, Hurricane Rita of 2005, or any other 
                  disaster, as designated by the Administrator;
                      ``(B) the term `disaster area' means any State or 
                  area affected by a declared disaster, as determined by 
                  the Administrator;
                      ``(C) the term `executive agency' has the same 
                  meaning as in section 105 of title 5, United States 
                  Code; and
                      ``(D) the term `local small business concern' means 
                  a small business concern that--
                              ``(i) on the date immediately preceding the 
                          date on which a declared disaster occurred--
                                      ``(I) had a principal office in the 
                                  disaster area for such declared 
                                  disaster; and
                                      ``(II) employed a majority of the 
                                  workforce of such small business 
                                  concern in the disaster area for such 
                                  declared disaster; and
                              ``(ii) is capable of performing a 
                          substantial proportion of any contract or 
                          subcontract for disaster relief within the 
                          disaster area for such declared disaster, as 
                          determined by the Administrator.''.
  
  SEC. 15. RELIEF FROM TEST PROGRAM.
  
      Section 711(d) of the Small Business Competitive Demonstration 
  Program Act of 1988 (15 U.S.C. 644 note) is amended--
              (1) by striking ``The Program'' and inserting the 
          following:
              ``(1) In general.--Except as provided in paragraph (2), the 
          Program''; and
              (2) by adding at the end the following:
              ``(2) Exception.--The Program shall not apply to any 
          contract related to relief or reconstruction from Hurricane 
          Katrina of 2005 or Hurricane Rita of 2005.''.
target: Small Business Partners in Reconstruction Act of 2006 - Amends the Small Business Act to define "Guidelines" as the guidelines entitled "Emergency Procurement Flexibilities" for responsive contracting and the use of simplified acquisition procedures, as issued by the Office of Federal Procurement Policy on May 30, 2003.
  
  Directs the Administrator for Federal Procurement Policy to: (1) ensure that the Guidelines continue to encourage the federal government to utilize small business procurement flexibilities in times of disaster, contingency, and other emergency; and (2) periodically revise, update, modify, and publish such Guidelines.
  
  Provides for or requires: (1) reciprocity with respect to contracting certifications for small businesses owned and controlled by socially and economically disadvantaged individuals; (2) an update of the Federal Procurement Data System with respect to small business participation in Hurricane Katrina or Rita-related contracting; (3) disaster contracting outreach programs for small businesses; (4) small business performance bonding thresholds; (5) small business participation in disaster-related federal contracts and subcontracts and disaster-related multiple-award contracts; and (6) disaster contracting priorities for local small businesses.
feat_title: A bill to ensure full partnership of small contractors in Federal disaster reconstruction efforts.