Amends the Small Business Act to require an offeror with respect to a contract let by a federal agency that is to be awarded pursuant to the negotiated method of procurement that intends to identify a small business as a potential subcontractor: (1) notify the small business that the offeror intends to identify it as a potential subcontractor; and (2) include with the offer a written acknowledgment by the small business that it has received such notice. Provides penalties against offerors failing to provide such notification.
Directs the Administrator of the Small Business Administration (SBA) to establish a reporting mechanism that allows subcontractors to report fraudulent activity by a contractor with respect to a federal small business subcontracting plan.