This title may be cited as the "Small Business Competitiveness Demonstration Program Act of 1988". SEC. 702. FINDINGS. The Congress finds that (1) many small business concerns have repeatedly demonstrated their ability to fulfill a broad range of Government requirements for products, services (including research, development, technical, and professional services), and construction, through the Federal procurement process; (2) various Congressional mandated reforms to the Federal procurement process, including the Competition in Contracting Act of 1984, the Defense Procurement Reform Act of 1984, and the Small Business and Federal Procurement Competition Enhancement Act of 1984, were designed to eliminate obstacles to competition and thereby to broaden small business participation; and (3) traditional agency efforts to implement the mandate for small business participation in a fair proportion of Federal procurements as required by section 15(a) of the Small Business Act have resulted in (A) a concentration of procurement contract awards in a limited number of industry categories, often dominated by small business concerns, through the use of set-asides, for the purpose of assuring the attainment of the agency's overall small business contracting goals; and (B) inadequate efforts to expand small business participation in agency procurements of products or services which have historically demonstrated low rates of small business participation despite substantial potential for expanded small business participation. 1This Act is contained in title VII of the Business Opportunity Development Reform Act of 1988 (P.L. 100-656; 102 Stat. 3889), approved June 15, 1989. 89-263 95-29 PART B-DEMONSTRATION PROGRAM SEC. 711. [15 U.S.C. 644 note] SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM. (a) ESTABLISHMENT.-There is established a Small Business Competitiveness Demonstration Program (hereafter referred to in this title as "the Program") pursuant to section 15 of the Office of Federal Procurement Policy Act (41 U.S.C. 413) to provide for the testing of innovative procurement methods and procedures. The Administrator of Federal Procurement Policy shall designate the Administrator of the Small Business Administration as the executive agent responsible for conducting the test. (b) PURPOSES.-The purposes of the Program are to demonstrate whether (1) the competitive capabilities of small business firms in certain industry categories will enable them to successfully compete on an unrestricted basis for Federal contracting opportunities, (2) the use of targeted goaling and management techniques by procuring agencies, in conjunction with the Small Business Administration, can expand small business participation in Federal contracting opportunities which have been historically low, despite adequate numbers of qualified small business contractors in the economy, and (3) expanded use of full and open competition, as specified by the Competition in Contracting Act of 1984 (10 U.S.C. 2302(3) and 41 U.S.C. 403(7)), adversely affects small business participation in certain industry categories, taking into consideration the numerical dominance of small firms, the size and scope of most contracting opportunities, and the competitive capabilities of small firms. (c) PROGRAM TERM.-The Program shall commence on January 1, 1989, and terminate on September 30, 1996. (d) APPLICATION.-The Program shall apply to contract solicitations for the procurement of services in industry groups designated in section 717. SEC. 712. [15 U.S.C. 644 note] ENHANCED SMALL BUSINESS PARTICIPATION GOALS. (a) ENHANCED GOALS FOR DESIGNATED INDUSTRY GROUPS.Each participating agency shall establish an annual small business participation goal that is 40 percent of the dollar value of the contract awards for each of the designated industry groups. In attaining its small business participation goal for contract awards for each of the designated industry groups, each participating agency shall make a good faith effort to assure that emerging small business concerns are awarded not less than 15 percent of the dollar value of the contract awards for each of the designated industry groups. (b) SPECIAL ASSISTANCE FOR EMERGING SMALL BUSINESS CON CERNS. (1) SMALL BUSINESS RESERVE.-During the term of the Program, all contract opportunities in the industry groups designated in section 717 shall be reserved for exclusive competition among emerging small business concerns in accordance |