SEC.38. Procurement Program for Small Business Concerns Owned and Controlled by Service-Disabled Veterans.

The Small Business Act (15 U.S.C. 631 et seq.) is amended by redesignation section 36 as section 37 and by inserting after section 35 the following new section:

SEC.36. Procurement Program for Small Business Concerns Owned and Controlled by Service-Disabled Veterans.

(a) SOLE SOURCE CONTRACTS. - In accordance with this section, a contracting officer may award a sole source contract to any small business concern owned and controlled by service-disabled veterans if-

(1) such concern is determined to be a responsible contractor with respect to performance of such contract opportunity and the contracting officer does not have a reasonable expectation that 2 or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity.

(2) the anticipated award price of the contract (including options) will not exceed -

(A) $5,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or

(B) $3,000,000, in the case of any other contract award can be made at a fair and reasonable price.

(3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.

(b) RESTRICTED COMPETITION. - In accordance with this section a contracting officer may award contracts on the basis of competition restricted to small business concerns on the basis of competition restricted to small business concerns owned and controlled by service-disabled veterans if the contraction officer has a reasonable expectation that not less than 2 small business concerns owned and controlled by service-disabled veterans will submit offers and that the award can be made at a fair market price.

(c) RELATIONSHIP TO OTHER CONTRACTING PREFERENCES. - A procurement may not be made from a source on the basis of a preference provided under subsection (a) or (b) if the procurement would otherwise be made from a different source under section 4124 of title 18, United States Code, or the Javits-Wagner-O'Day Act (41 U.S.C.46 et seq.).

(d) ENFORCEMENT; PENALTIES. - Rules similar to the rules of paragraphs (5) and (6) of section 8(m) shall apply for purposes of this section.

(e) CONTRACTING OFFICER. - For purposes of this section, the term 'contracting officer' has the meaning given such term in section 27(f)(5) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(f)(5)).