Executive Order: Increasing opportunities and access for disadvantaged businesses (10/6/00)
                              THE WHITE HOUSE

                       Office of the Press Secretary

For Immediate Release                             October 6, 2000

                              EXECUTIVE ORDER

                               - - - - - - -


     By the authority vested in me as President by the Constitution and the
laws of the United States of America, including the Small Business Act (15
U.S.C. 631 et seq.), section 7102 of the Federal Acquisition Streamlining
Act of 1994 (Public Law 103-355, 15 U.S.C. 644 note), the Office of Federal
Procurement Policy Act (41 U.S.C. 403 et seq.), Executive Order 11625, and
to provide for increased access for disadvantaged businesses to Federal
contracting opportunities, it is hereby ordered as follows:

     Section 1.  Policy.  It is the policy of the executive branch to
ensure nondiscrimination in Federal procurement opportunities for
businesses in the Small Disadvantaged Business Program (SDBs), businesses
in the section 8(a) Business Develop-ment program of the Small Business
Administration (8(a)s), and Minority Business Enterprises (MBEs) as defined
in section 6 of Executive Order 11625, of October 13, 1971, and to take
affirmative action to ensure inclusion of these businesses in Federal
contracting.  These businesses are of vital importance to job growth and
the economic strength of the United States but have faced historic
exclusion and underutilization in Federal procurement.  All agencies within
the executive branch with procurement authority are required to take all
necessary steps, as permitted by law, to increase contracting between the
Federal Government and SDBs, 8(a)s, and MBEs.

     Sec. 2.  Responsibilities of Executive Departments and Agencies with
Procurement Authority.  The head of each executive department and agency
shall carry out the terms of this order and shall designate, where
appropriate, his or her Deputy Secretary or equivalent to implement the
terms of this order.

     (a) Each department and agency with procurement authority shall:

          (i) aggressively seek to ensure that 8(a)s, SDBs, and MBEs are
          aware of future prime contracting opportunities through wide
          dissemination of contract announcements, including sources likely
          to reach 8(a)s, SDBs, other small businesses, and MBEs.  Each
          department and agency shall use all available forms of
          communication to implement this provision, including the
          Internet, speciality press, and trade press;

          (ii) work with the Small Business Administration (SBA) to ensure
          that information regarding sole source contracts awarded through
          the section 8(a) program receives the widest dissemination
          possible to 8(a)s;

          (iii) ensure that the price evaluation preference programs
          authorized by the Federal Acquisition Streamlining Act of 1994
          are used to the maximum extent permitted by law in areas of
          economic activity in which SDBs have historically been underused;

          (iv) aggressively use the firms in the section 8(a) program,
          particularly in the developmental stage of the program, so that
          these firms have an opportunity to overcome artificial barriers
          to Federal contracting and gain access to the Federal procurement

          (v) ensure that department and agency heads take all reasonable
          steps so that prime contractors meet or exceed Federal
          subcontracting goals, and enforce subcontracting  commitments as
          required by the Small Business Act (15 U.S.C. 637(d)) and other
          related laws.  In particular, they shall ensure that prime
          contractors actively solicit bids for subcontracting
          opportunities from 8(a)s and SDBs, and fulfill their SDB and
          section 8(d) subcontracting obligations.  Enforcement of SDB
          subcontracting plan commitments shall include assessments of
          liquidated damages, where appropriate, pursuant to applicable
          contract clauses;

          (vi) encourage the establishment of business-to-business
          mentoring and teaming relationships, including the implementation
          of Mentor-Protege programs, to foster the development of the
          technical and managerial capabilities of 8(a)s and SDBs and to
          facilitate long-term business relationships;

          (vii) offer information, training, and technical assistance
          programs for 8(a)s and SDBs including, where appropriate,
          Government acquisition forecasts in order to assist 8(a)s and
          SDBs in developing their products, skills, business planning
          practices, and marketing techniques;

          (viii) train program and procurement officials regarding the
          policy of including 8(a)s and SDBs in Federal procurement.  This
          includes prescribing procedures to ensure that acquisition
          planners, to the maximum extent practicable, structure
          acquisitions to facilitate competition by SDBs and 8(a)s,
          including their participation in the competition of multiple
          award requirements;

          (ix) provide the information required by the Department of
          Commerce when it requests data to develop the benchmarks used in
          the price evaluation preference programs authorized by the
          Federal Acquisition Streamlining Act of 1994;

          (x) ensure that Directors of Offices of Small and Disadvantaged
          Business Utilization carry out their responsibilities to maximize
          the participation of 8(a)s and SDBs in Federal procurement and,
          in particular, ensure that the Directors report directly to the
          head of each department or agency as required by law; and

          (xi) as required by law, establish with the Small Business
          Administration small business goals to ensure that the
          government-wide goal for participation of small business concerns
          is not less than 23 percent of Federal prime contracts.  Where
          feasible and con-sistent with the effective and efficient
          performance of its mission, each agency shall establish a goal of
          achieving a participation rate for SDBs of not less than 5
          percent of the total value of prime contract awards for each
          fiscal year and of not less than 5 percent of the total value of
          subcontract awards for each year.  Each agency shall also
          establish a goal for awards made to 8(a) firms pursuant to
          section 8(a) of the Small Business Act.  These goals shall be
          considered the minimum goals and every effort shall be taken to
          exceed these goals wherever feasible.

     (b)  Each department and agency with procurement authority shall:

          (i) develop a long-term comprehensive plan to implement the
          requirements of section 2(a) of this order and submit this plan
          to the Director of the Office of Management and Budget (OMB)
          within 90 days of the date of this order.  The Director of OMB
          shall review each plan and report to the President on the
          sufficiency of each plan to carry out the terms of this order;

          (ii) annually, by April 30 each year, assess its efforts and the
          results of those efforts to increase utilization of 8(a)s, SDBs,
          and MBEs as both prime contractors and subcontractors and report
          on those efforts to the President through the Director of OMB,
          who shall review the evaluations made of the agency assessments
          by the Small Business Administration.

     Sec. 3.  Responsibilities of the Small Business Administration.  The
Administrator of the SBA shall:

     (a)  evaluate on a semi-annual basis, using the Federal Procurement
Data System (FPDS), the achievement of government-wide prime and
subcontract goals and the actual prime and subcontract awards to 8(a)s and
SDBs for each department and agency.  The OMB shall review SBA?s

     (b)  ensure that Procurement Center Representatives receive adequate
training regarding the section 8(a) and SDB programs and that they
consistently and aggressively seek opportunities for maximizing the use of
8(a)s and SDBs in department and agency procurements; and

     (c)  ensure that each department and agency?s small and disadvantaged
business procurement goals as well as the amount of procurement of each
department and agency with 8(a)s, SDBs, and MBEs is publicly available in
an easily accessible and understandable format such as through publication
on the Internet.

     Sec. 4.  Federal Advertising.  Each department or agency that
contracts with businesses to develop advertising for the department or
agency or to broadcast Federal advertising shall take an aggressive role in
ensuring substantial minority-owned entities' participation, including
8(a), SDB, and MBE, in Federal

advertising-related procurements.  Each department and agency shall ensure
that all creation, placement, and transmission of Federal advertising is
fully reflective of the Nation?s diversity.  To achieve this diversity,
special attention shall be given to ensure placement in publications and
television and radio stations that reach specific ethnic and racial
audiences.  Each department and agency shall ensure that payment for
Federal advertising is commensurate with fair market rates in the relevant
market.  Each department and agency shall structure advertising contracts
as commercial acquisitions consistent with part 12 of the Federal
Acquisition Regulation processes and paperwork to enhance participation by
8(a)s, SDBs, and MBEs.

     Sec. 5.  Information Technology.  Each department and agency shall
aggressively seek to ensure substantial 8(a), SDB, and MBE participation in
procurements for and related to information technology, including
procurements in the telecommunications industry.  In so doing, the Chief
Information Officer in each department and agency shall coordinate with
procurement officials to implement this section.

     Sec. 6.  General Services Administration Schedules.  The SBA and the
General Services Administration (GSA) shall act promptly to expand
inclusion of 8(a)s and SDBs on GSA Schedules, and provide greater
opportunities for 8(a) and SDB participation in orders under such
schedules.  The GSA should ensure that procurement and program officials at
all levels that use GSA Schedules aggressively seek to utilize the Schedule
contracts of 8(a)s and SDBs.  The GSA shall allow agencies ordering from
designated 8(a) firms under the Multiple Award Schedule to count those
orders toward their 8(a) procurement goals.

     Sec. 7.  Bundling Contracts.  To the extent permitted by law,
departments and agencies must submit to the SBA for review any contracts
that are proposed to be bundled.  The determina-tion of the SBA with regard
to the appropriateness of bundling in each instance must be carefully
reviewed by the department or agency head, or his or her designee, and must
be given due consideration.  If there is an unresolvable conflict, then the
SBA or the department or agency can seek assistance from the OMB.

     Sec. 8.  Awards Program.  The Secretary of Commerce and the
Administrator of the SBA shall jointly undertake a feasibility study to
determine the appropriateness of an awards program for executive
departments and agencies who best exemplify the letter and intent of this
order in increasing opportunities for 8(a)s, SDBs, and MBEs in Federal
procurement.  Such study shall be presented to the President within 90 days
of the date of this order.

     Sec. 9.  Applicability.  Independent agencies are requested to comply
with the provisions of this order.

     Sec. 10.  Administration, Enforcement, and Judicial Review.

     (a)  This order shall be carried out to the extent permitted by law
and consistent with the Administration?s priorities and appropriations.

     (b)  This order is not intended and should not be construed to create
any right or benefit, substantive or procedural, enforceable at law by a
party against the United States, its agencies, its officers, or its

                              WILLIAM J. CLINTON

    October 6, 2000.

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