Federal · Title 10 — Armed Forces

10 U.S.C. § 4901: Department of Defense small business strategy

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The Secretary of Defense shall implement a small business strategy for the Department of Defense that meets the requirements of this section. programs and activities related to small business concerns (as defined in section 3 of the Small Business Act); manufacturing and industrial base policy; and any procurement technical assistance program established under chapter 388 of this title. 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 ). that opportunities for small business concerns to contract with the Department of Defense are identified clearly; and 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. 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. such that a small business concern can easily understand the intent of the covered notice; and is clear, concise, and well-organized; and 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. 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. 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. the Secretary of Defense or a Secretary of a military department publishes on SAM.gov (or any successor website) marketing Federal contract opportunities; and pertains to small business concerns, such as a sources sought notice or a solicitation restricted to competition among small business concerns. The term ‘small business concern’ has the meaning given the term under section 3 of the Small Business Act ( 15 U.S.C. 632 ).” 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. 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. 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. 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); require a [sic] timely responses from such members; and 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. 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; how to contact each task and delivery ombudsman designated under section 3406(g) of title 10 , United States Code; 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 how to contact each advocate for competition in the Department of Defense designated pursuant to section 1705(a) of title 41 , United States Code. 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; 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 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. 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. 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. 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); provide each component of the Department such annual metrics; and collect and consolidate such annual metrics submitted to the Office under subparagraph (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. 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. 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; the Director of Small Business Programs in the Department of the Army appointed under section 7024 of title 10 , United States Code; the Director of Small Business Programs in the Department of the Navy appointed under section 8028 of such title; or the Director of Small Business Programs in the Department of the Air Force appointed under section 9024 of such title; and the term ‘military department’ has the meaning given such term in section 101(a) of title 10 , United States Code.” 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 convenes not fewer than four times per year. The small business office of each military department. 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. The office of the Under Secretary of Defense for Acquisition and Sustainment. The office of the Under Secretary of Defense for Research and Engineering. Any other office the Secretary of Defense determines appropriate. 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. The term ‘military department’ has the meaning given such term in section 101(a) of title 10 , United States Code. The term ‘small business concern’ has the meaning given such term under section 3 of the Small Business Act ( 15 U.S.C. 632 ).” the small business; or any technology a small business is developing pursuant to a contract or other agreement with the Department of Defense. The identification of one or more entities to be responsible for the commercial due diligence tools, techniques, and processes that are part of a demonstration under the program and a description of the interactions required between such entity, small businesses, and the government agencies that enforce such tools, techniques, and processes. An assessment of commercial due diligence tools, techniques, and processes already in use by each Office of Small Business Programs. monitor and assess attempts described in subsection (a); provide information on such attempts to applicable small businesses; and allow small businesses that are subject to such attempts to provide information about such attempts to the Secretary of Defense. The development of training and resources for small businesses that can be shared directly with such businesses or through a procurement technical assistance program established under chapter 388 of title 10, United States Code. The implementation of performance measures to assess the effectiveness of such program. An identification of any entity described in subsection (b)(1). A description of the methodology for executing any demonstrations under the program, including any analytical tools or metrics identified to support such a demonstration. A description of any identified instances of attempts described in subsection (a). An identification of improvements or gaps in resources, capabilities, or authorities, and other lessons learned from any demonstrations under the program. Not later than March 1, 2028 , the Secretary shall submit to the congressional defense committees a report on the program required under subsection (a), including any identified instances of attempts described in such subsection, any lessons learned, and any recommendations for legislative action related to such program. The term ‘foreign ownership, control, or influence’ has the meaning given in section 847 of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ; 133 Stat. 1505 ; 10 U.S.C. 4819 note). the Office of Small Business Programs of the Department of Defense established under section 144 of title 10 , United States Code; the Office of Small Business Programs of the Department of the Army established under section 7024 of such title; the Office of Small Business Programs of the Department of the Navy established under section 8028 of such title; and the Office of Small Business Programs of the Department of the Air Force established under section 9024 of such title.” Not later than 10 days after the date on which the budget of the President for fiscal years 2022 through 2032 is submitted to Congress pursuant to section 1105 of title 31 , United States Code, each Secretary of a military department and the Under Secretary of Defense for Research and Engineering shall submit to the Secretary of Defense, the Chairman of the Joint Chiefs of Staff, and the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report on unfunded priorities of the Department of Defense related to high-priority Small Business Innovation Research and Small Business Technology Transfer projects. A summary description of the unfunded priority project, including the objectives to be achieved if such project were to be funded (either in whole or in part). The additional amount of funds recommended to achieve the objectives identified under subparagraph (A). Line item number, in the case of applicable procurement accounts. Program element number, in the case of applicable research, development, test, and evaluation accounts. Subactivity group, in the case of applicable operation and maintenance accounts. Each Secretary of a military department and the Under Secretary of Defense for Research and Engineering shall ensure that the unfunded priorities covered by a report submitted under subsection (a) are listed in the order of urgency of priority. is not funded in the budget of the President for that fiscal year, as submitted to Congress pursuant to section 1105 of title 31 , United States Code; advance the national security capabilities of the United States; provide new technologies or processes, or new applications of existing technologies or processes, that will enable new alternatives to existing programs; and provide future cost savings; and additional resources had been available to fund the program, activity, or mission requirement to which the specific project relates; or the program, activity, or mission requirement for such specific project had emerged before the budget was formulated. The terms ‘Phase II’, ‘Small Business Innovation Research’, and ‘Small Business Technology Transfer’ have the meanings given such terms, respectively, in section 9(e) of the Small Business Act ( 15 U.S.C. 638(e) ).” The Secretary of Defense, acting through the Assistant Secretary of Defense for Industrial Base Policy (established under section 903 of this Act [amending section 138 of this title ]) and other appropriate officials, in carrying out the activities described under [former] subchapter II of chapter 148 of title 10, United States Code [see chapter 382 of this title], shall establish initiatives to increase the effectiveness of the Department of Defense in specifically leveraging small businesses to eliminate gaps and vulnerabilities in the national technology and industrial base (as defined in section 2500 of title 10 , United States Code [now 10 U.S.C. 4801 ]) and expand the number of small businesses in the national technology and industrial base. Not later than October 1, 2022 , and biennially thereafter, [sic] shall update the small business strategy required under section 2283 of title 10 , United States Code [now 10 U.S.C. 4901 ], and provide such updated strategy to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives]. Not later than March 1, 2023 , and biennially thereafter, the Secretary of Defense shall develop an implementation plan consistent with the most recent small business strategy developed under such section 2283 [now 4901], and provide such plan to the congressional defense committees. Organizations responsible for implementation activities. Metrics to evaluate progress of implementation activities. Resources to support implementation activities. Outcomes achieved as a result of executing the previous small business strategy developed under such section 2283 [now 4901]. small businesses participating in an acquisition program of a military department or Defense Agency (as defined in section 101(11) of title 10 , United States Code [now 10 U.S.C. 101(a)(11) ]); small businesses contracting with the Defense Logistics Agency; and other small businesses in the national technology and industrial base; establish policies and procedures to assess the financial status of critical small businesses; and contracting with the Defense Logistics Agency; subcontractors (at any tier); or in critical technology sectors. Not later than October 1, 2021 , the Assistant Secretary of Defense for Industrial Base Policy shall submit to the appropriate committees a report on activities undertaken pursuant to this section. Not later than June 1, 2021 , the Secretary of Defense shall submit an implementation plan for the small business strategy required under section 2283 of title 10 , United States Code [now 10 U.S.C. 4901 ], and dated October 1, 2019 , including an identification of specific responsible individuals and organizations, milestones and metrics, and resources to support activities identified in the implementation plan. In this section, the term ‘small business’ has the meaning given by the Secretary of Defense, except that such term shall include prime contractors and subcontractors (at any tier).” The Secretary of Defense may authorize the Commander of the United States Special Operations Command to use funds described in subsection (b) for a pilot program under which the Commander shall make, through the use of a partnership intermediary, covered awards to small business concerns to develop technology-enhanced capabilities for special operations forces. The funds described in this subsection are funds transferred to the Commander of the United States Special Operations Command to carry out the pilot program established under this section from funds available to be expended by each covered entity pursuant to section 9(f) of the Small Business Act ( 15 U.S.C. 638(f) ). A covered entity may not transfer to the Commander an amount greater than 10 percent of the funds available to be expended by such covered entity pursuant to such section 9(f) for a fiscal year. The aggregate amount of funds to be transferred to the Commander may not exceed $20,000,000. The Commander may modify an existing agreement with a partnership intermediary to assist the Commander in carrying out the pilot program under this section, including with respect to the award of contracts and agreements to small business concerns. None of the funds described in subsection (b) may be used to pay a partnership intermediary for any costs associated with the pilot program. staffing structure; funding sources; and methods for identifying and evaluating small business concerns eligible for a covered award. a description of each agreement with a partnership intermediary entered into pursuant to this section; a description of the role served by the partnership intermediary; the amount of funds obligated; an identification of the small business concern that received such covered award; a description of the use of such covered award; a description of the role served by the program manager (as defined in section 1737 of title 10 , United States Code) of the covered entity with respect to the small business concern that received such covered award, including a description of interactions and the process of the program manager in producing a past performance evaluation of such concern; and the benefits achieved as a result of the use of a partnership intermediary for the pilot program established under this section as compared to previous efforts of the Commander to increase participation by small business concerns in the development of technology-enhanced capabilities for special operations forces; and a plan detailing how each covered entity will apply lessons learned from the pilot program to improve processes for directly working with and supporting small business concerns to develop technology-enhanced capabilities for special operations forces. whether and for how long the pilot program established under this section should be extended; and whether to increase funding for the pilot program, including a justification for such an increase. The authority to carry out a pilot program under this section shall terminate on September 30, 2031 . The term ‘covered award’ means an award made under the Small Business Innovation Research Program. the Army; the Navy; the Air Force; the Marine Corps; the Space Force; and any element of the Department of Defense that makes awards under the Small Business Innovation Research Program. The term ‘partnership intermediary’ has the meaning given the term in section 23(c) of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3715(c) ). The term ‘small business concern’ has the meaning given the term under section 3 of the Small Business Act ( 15 U.S.C. 632 ). The term ‘Small Business Innovation Research Program’ has the meaning given the term in section 9(e) of the Small Business Act ( 15 U.S.C. 638(e) ). The term ‘technology-enhanced capability’ means a product, concept, or process that improves the ability of a member of the Armed Forces to achieve an assigned mission.” The Secretary of Defense shall develop the small business strategy required by section 2283 of title 10 , United States Code [now 10 U.S.C. 4901 ], as added by subsection (a), not later than 180 days after the date of the enactment of this Act [ Aug. 13, 2018 ]. transmit the strategy to Congress; and publish the strategy on a public website of the Department of Defense.”

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