§ 4901. Department of Defense small business strategy

§ 4901. Department of Defense small business strategy

(a) In General.— The Secretary of Defense shall implement a small business strategy for the Department of Defense that meets the requirements of this section.

(b) Unified Management Structure.— As part of the small business strategy described in subsection (a), the Secretary shall ensure that there is a unified management structure within the Department for the functions of the Department relating to—

(1) programs and activities related to small business concerns (as defined in section 3 of the Small Business Act);

(2) manufacturing and industrial base policy; and

(3) any procurement technical assistance program established under chapter 388 of this title.

(c) Purpose of Small Business Programs.— The Secretary shall ensure that programs and activities of the Department of Defense related to small business concerns are carried out so as to further national defense programs and priorities and the statements of purpose for Department of Defense acquisition set forth in section 801 of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91; 131 Stat. 1449).

(d) Points of Entry Into Defense Market.— The Secretary shall ensure—

(1) that opportunities for small business concerns to contract with the Department of Defense are identified clearly; and

(2) that small business concerns are able to have access to program managers, contracting officers, and other persons using the products or services of such concern to the extent necessary to inform such persons of emerging and existing capabilities of such concerns.

(e) Enhanced Outreach Under Procurement Technical Assistance Program Market.— The Secretary shall enable and promote activities to provide coordinated outreach to small business concerns through any procurement technical assistance program established under chapter 388 of this title to facilitate small business contracting with the Department of Defense.

(Added Pub. L. 115–232, div. A, title VIII, § 851(a), Aug. 13, 2018, 132 Stat. 1883, § 2283; renumbered § 4901 and amended Pub. L. 116–283, div. A, title XVIII, § 1871(b), Jan. 1, 2021, 134 Stat. 4287.)

Editorial Notes

References in Text

Section 3 of the Small Business Act, referred to in subsec. (b)(1), is classified to section 632 of Title 15, Commerce and Trade.

Section 801 of the National Defense Authorization Act for Fiscal Year 2018, referred to in subsec. (c), is section 801 of Pub. L. 115–91, which is set out as a note under section 2302 of this title.

Amendments

2021—Pub. L. 116–283 renumbered section 2283 of this title as this section and substituted “chapter 388” for “chapter 142” in subsecs. (b)(3) and (e).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

Accessibility and Clarity in Covered Notices for Small Business Concerns

Pub. L. 118–159, div. A, title VIII, § 875, Dec. 23, 2024, 138 Stat. 2014, provided that: “(a) In General.—Each covered notice shall be written in a manner—“(1) such that a small business concern can easily understand the intent of the covered notice; and “(2) that—“(A) is clear, concise, and well-organized; and “(B) to the maximum extent practicable, follows other best practices appropriate to the subject or field of the covered notice and the intended audience of the covered notice. “(b) Inclusion of Key Words in Covered Notices.—Each covered notice shall, to the maximum extent practicable, include key words in the description of the covered notice such that a small business concern seeking contract opportunities using the single Government-wide point of entry described under section 1708 of title 41, United States Code, can easily identify and understand such covered notice. “(c) Rulemaking.—Not later than 90 days after the date of the enactment of this Act [Dec. 23, 2024], the Secretary of Defense shall issue rules to carry out this section. “(d) Definitions.—In this section:“(1) Covered notice.—The term ‘covered notice’ means a notice that—“(A) the Secretary of Defense or a Secretary of a military department publishes on SAM.gov (or any successor website) marketing Federal contract opportunities; and “(B) pertains to small business concerns, such as a sources sought notice or a solicitation restricted to competition among small business concerns. “(2) Small business concern.—The term ‘small business concern’ has the meaning given the term under section 3 of the Small Business Act (15 U.S.C. 632).”

Small Business Bill of Rights

Pub. L. 118–159, div. A, title VIII, § 876, Dec. 23, 2024, 138 Stat. 2015, provided that: “(a) In General.—Not later than one year after the date of the enactment of this Act [Dec. 23, 2024], the Secretary of Defense, acting through the Small Business Integration Group in the Department of Defense led by the Under Secretary of Defense for Acquisition and Sustainment, shall develop a Small Business Bill of Rights for the Department of Defense and its components. “(b) Purpose.—The Small Business Integration Group in the Department of Defense shall design the Small Business Bill of Rights required under subsection (a) to ensure a healthy partnership between the Department of Defense and the defense industrial base and to encourage small businesses to contract with the Department by ensuring customer service issues and conflicts between the Department and small businesses related to acquisitions by the Department are resolved in an expeditious manner and that small businesses are aware of their rights to assistance under Federal law in resolving such issues. “(c) Content.—The Bill of Rights required under subsection (a) shall do the following:“(1) Authorize the Director of Small Business Programs of the Department to establish a resolution process to which all Department of Defense components, members of the small business professional workforce of the Department, and other relevant officials and organizations of the Department, must adhere. “(2) Authorize the Director of Small Business Programs of the Department, each Director of Small Business Programs of a military department, and members of the small business professional workforce of the Department of Defense to—“(A) request assistance from members of the acquisition workforce in their component of the Department with the customer service issues and conflicts described in subsection (b); “(B) require a [sic] timely responses from such members; and “(C) establish a framework for implementation by the components of the Department, members of the small business professional workforce, and other relevant officials and organizations of the Department providing for fair and reasonable resolution of complaints by small business for issues between small businesses and the Department. “(3) Ensure that small businesses are informed of—“(A) the rights of small businesses to assistance under the Small Business Regulatory Enforcement Fairness Act [title II of Pub. L. 104–121] (5 U.S.C. 601 note), the Small Business Act (15 U.S.C. 631 et seq.), chapter 388 of title 10, United States Code, and any other applicable law; “(B) how to contact each task and delivery ombudsman designated under section 3406(g) of title 10, United States Code; “(C) how to contact the Office of Small Business Programs of the Department of Defense and the Office of Small Business Programs of each military department; and “(D) how to contact each advocate for competition in the Department of Defense designated pursuant to section 1705(a) of title 41, United States Code. “(4) Establish guidance—“(A) for the acquisition workforce of the Department of Defense on the rights of small businesses under Federal law and the regulations issued thereunder, including the Federal Acquisition Regulation and FAR and the Defense Federal Acquisition Regulation Supplement; “(B) on the duties and authorities of the task and delivery ombudsmans designated under section 3406(g) of title 10, United States Code, and the advocates for competition in the Department of Defense designated pursuant to section 1705(a) of title 41, United States Code; and “(C) on a reasonable and practical timeline, as determined by the Undersecretary of Defense for Acquisition and Sustainment, for contracting officers of the Department to response to an inquiry from the Office of Small Business Programs of the Department of Defense or the Office of Small Business Programs of each military department. “(5) Coordinate assistance under the Bill of Rights with other regulatory compliance assistance to small business concerns, current and desired sets of authorities, roles, and responsibilities across the Offices of Small Business Programs of the Department of Defense, APEX Accelerators, members of the small business professional workforce of the Department of Defense, and other relevant officials or organizations of the Department. “(d) Annual Briefings.—“(1) In general.—Not later than one year after the date of the enactment of this Act [Dec. 23, 2024], and annually thereafter, the Director of Small Business Programs of the Department shall provide to the Secretary of Defense and the Committees on Armed Services of the House of Representatives and the Senate a briefing on the annual metrics collected under paragraph (2) for the year covered by the report. “(2) Collection of annual metrics.—“(A) The Office of Small Business Programs of the Department of Defense shall—“(i) develop annual metrics on the submission of complaints by contractors of the Department of Defense pursuant to the Small Business Bill of Rights required under subsection (a); “(ii) provide each component of the Department such annual metrics; and “(iii) collect and consolidate such annual metrics submitted to the Office under subparagraph (B). “(B) Each component of the Department of Defense shall collect and submit to the Office of Small Business Programs of the Department of Defense the annual metrics. “(e) Implementation Briefing.—Not later than 180 days after the date of the enactment of this Act [Dec. 23, 2024], the Under Secretary of Defense for Acquisition and Sustainment shall provide to the Committees on Armed Services of the House of Representatives and the Senate a briefing detailing the Small Business Bill of Rights required under subsection (a) and the plan to implement such Small Business Bill of Rights. “(f) Definitions.—In this section—“(1) the term ‘Director of Small Business Programs of the Department’ means the Director of Small Business Programs in the Department of Defense appointed under section 144 of title 10, United States Code; “(2) the term ‘Director of Small Business Programs of a military department’ means—“(A) the Director of Small Business Programs in the Department of the Army appointed under section 7024 of title 10, United States Code; “(B) the Director of Small Business Programs in the Department of the Navy appointed under section 8028 of such title; or “(C) the Director of Small Business Programs in the Department of the Air Force appointed under section 9024 of such title; and “(3) the term ‘military department’ has the meaning given such term in section 101(a) of title 10, United States Code.”

Small Business Integration Working Group

Pub. L. 117–263, div. A, title VIII, § 874, Dec. 23, 2022, 136 Stat. 2741, provided that: “(a) In General.—Not later than 60 days after the enactment of this Act [Dec. 23, 2022], the Secretary of Defense shall issue a charter to establish a small business integration working group that—“(1) ensures the integration and synchronization of the activities of the military departments and other components of the Department of Defense with respect to small business concerns; and “(2) convenes not fewer than four times per year. “(b) Membership.—The small business integration working group chartered under subsection (a) shall be comprised of representatives from each of the following organizations:“(1) The small business office of each military department. “(2) The Small Business Innovation Research Program and the Small Business Technology Transfer Program (as such terms are defined in section 9(e) of the Small Business Act (15 U.S.C. 638(e))) of each military department. “(3) The office of the Under Secretary of Defense for Acquisition and Sustainment. “(4) The office of the Under Secretary of Defense for Research and Engineering. “(5) Any other office the Secretary of Defense determines appropriate. “(c) Briefing Required.—Not later than March 1, 2023, the Secretary of Defense shall brief the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives on the establishment and activities of the small business integration working group chartered under subsection (a), the policies enacted by the small business integration working group to allow for the sharing of best practices for maximizing the contributions of small business concerns in the defense industrial base and in acquisitions by the Department of Defense, and practices for conducting oversight of the activities of the military departments and other components of the Department of Defense with respect to small business concerns. “(d) Definitions.—In this section:“(1) Military department.—The term ‘military department’ has the meaning given such term in section 101(a) of title 10, United States Code. “(2) Small business concern.—The term ‘small business concern’ has the meaning given such term under section 3 of the Small Business Act (15 U.S.C. 632).”

Demonstration of Commercial Due Diligence for Small Business Programs