Increases the Government-wide goal of awarding Federal prime contracts and subcontracts to certain small businesses to 28 (currently 23) percent of all such contracts and subcontracts awarded in a fiscal year. Includes small businesses owned by veterans and handicapped individuals as eligible small businesses. Requires contracts and subcontracts so awarded to small businesses owned and controlled by: (1) veterans to comprise at least three percent of such total; (2) socially and economically disadvantaged individuals to comprise at least ten percent; and (3) women to comprise at least five percent. Requires that, of the ten percent required under (2), at least three percent be awarded to small businesses owned and controlled by service-disabled veterans and two percent be awarded to small businesses owned and controlled by handicapped individuals. Establishes the goal for participation by qualified HUBZone small businesses at no less than 2.5 percent of such total for FY 2002 and three percent for FY 2003 and thereafter.
Requires each Federal agency to: (1) have annual goals that present the maximum practicable opportunity for eligible small businesses to perform such contracts and subcontracts; and (2) undertake efforts to annually expand small business participation.