Page:United States Statutes at Large Volume 102 Part 4.djvu/902

 102 STAT. 3872

PUBLIC LAW 100-656—NOV. 15, 1988

(5) The Administration shall, to the maximum extent practicable, minimize delay, eliminate excess regulation, and require only such paperwork as may be necessary to effect the orderly and efficient management of the Program established by section 7(j)(10) of the Small Business Act (15 U.S.C. 636(j)(10)) and the award of contracts pursuant to section 8(a) of such Act (15 U.S.C. 637(a)). (g) STANDARD INDUSTRIAL CLASSIFICATION CODE LIMITATIONS.—Sec-

tion 8(a)(7) of the Act (15 U.S.C. 637(a)(7)) is amended by— (1) inserting "(A)" after "(7)"; and (2) adding the following new subparagraph: "(B) Limitations established by the Administration in its regulations and procedures restricting the award of contracts pursuant to this subsection to a limited number of standard industrial classification codes in an approved business plan shall not be applied in a manner that inhibits the logical business progression by a participating small business concern into areas of industrial endeavor where such concern has the potential for success.". (h) NON-MANUFACTURER RULE.—Section 8(a) of the Act (15 U.S.C.

637(a)) is further amended by adding the following new paragraph: "(17)(A) An otherwise responsible business concern that is in compliance with the requirements of subparagraph (B) shall not be denied the opportunity to submit and have considered its offer for any procurement contract for the supply of a product to be let pursuant to this subsection or subsection (a) of section 15 solely because such concern is other than the actual manufacturer or processor of the product to be supplied under the contract. "(B) To be in compliance with the requirements referred to in subparagraph (A), such a business concern shall— "(i) be primarily engaged in the wholesale or retail trade; "(ii) be a regular dealer, as defined pursuant to section 35(a) of title 41, United States Code (popularly referred to as the WalshHealey Public Contracts Act), in the product to be offered the Government or be specifically exempted from such section by section 7(j)(13)(C); and "(iii) represent that it will supply the product of a domestic small business manufacturer or processor, except that, the Administrator may waive the application of the clause, as it pertains to the furnishing of a product manufactured or processed by a small business, for any class of products for which there are no small business manufacturers or processors in the Federal market." SEC. 304. SUBCONTRACTING ASSISTANCE.

(a) ENCOURAGING COMPUANCE.—Section 8(d)(4) of the Small Business Act (15 U.S.C. 637(d)(4)) is amended by adding at the end thereof the following new subparagraph: "(F)(i) Each contract subject to the requirements of this paragraph or paragraph (5) shall contain a clause for the payment of liquidated damages upon a finding that a prime contractor has failed to make a good faith effort to comply with the requirements imposed on such contractor by this subsection. "(ii) The contractor shall be afforded an opportunity to demonstrate a good faith effort regarding compliance prior to the contracting officer's final decision regarding the impositon of damages and the amount thereof. The final decision of a contracting officer regarding the contractor's obligation to pay such damages, or

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