# Agency Strategy to Implement Executive Order 13360

# Department of Health and Human Services

# 

# Agency Information:

# U.S. Department of Health and Human Services

# 200 Independence Ave., S.W. 

# Washington, D.C. 20201

# 

# Person Preparing Report:

Arthuretta H. Martin, Deputy Director, Office of Small and Disadvantaged
Business Utilization, 202-690-6845, <Arthuretta.martin@hhs.gov>

# Designated Senior-level Official:

# Alex Azar, II Deputy Secretary, Department of Health and Human Services, 

# 202-690-6133, [**Alex.Azar@hhs.gov**](mailto:Alex.Azar@hhs.gov)

#  

Agency Head:

Mike Leavitt, Secretary Department of Health and Human Services

Agency Officials whose performance plans incorporate achievements of
SDVOSB Small Business Goals:

Director Office of Small and Disadvantaged Business Utilization

Chief Acquisition Officer

# Agency Strategy:

The Department of Health and Human Services has taken several steps to
provide opportunities for service-disabled veteran businesses to
significantly increase their contracting and subcontracting
opportunities with HHS. On March 30, 2004 HHS held a Service-Disabled
Veteran Owned Business Conference. We counseled over 175 people from
approximately 135 different companies. The vendors were extremely
pleased with the opportunity to meet HHS program and contracting
officials, as well as, representatives from a dozen other Executive
Agencies. This is but one example of providing contracting opportunities
to SDVO Small Businesses. We continue to hold monthly vendor outreach
sessions and encourage both program offices and contracting officers to
include all small businesses in the business opportunities of the
Department.

# Summary of Recommendations and Action Steps

**I. Overview**

It is the policy of the United State of America to develop and
strengthen opportunities in Federal contracting for service-disabled
veteran owned businesses as well as other small businesses owned by
members of underserved populations. In response to this need, on October
20, 2004, President Bush signed Executive Order 13360 to provide formal
structure, training and reporting framework to assist agencies in
increasing opportunities with SDVO Small Businesses.

In Fiscal Year (FY) 2004, the Department of Health and Human Services
(HHS) spent over 7.4 billion dollars for commodities, equipment and
services to carry out its mission as the United States government\'s
principal agency for protecting the health of all Americans and
providing essential human services, especially for those who are least
able to help themselves. To further certain socioeconomic objectives of
the Nation, HHS has targeted a percentage of its procurement budget for
small businesses entitled to preferential treatment. As a result, HHS
procurement dollars have gone to small and disadvantaged businesses,
woman-owned small businesses, and small businesses located in
economically depressed areas also called historically underutilized
business zones. Like every Executive Agency, HHS' goal for SDVO Small
Businesses is 3%. As seen in the charts below, HHS will be challenged to
achieve its goals in the area of service-disabled veteran-owned small
businesses.

+-------------------------------+--------+--------+--------+--------+
|                               | **FY   | **FY   | **FY   | **FY   |
|                               | 2001** | 2002** | 2003** | 2004** |
+-------------------------------+--------+--------+--------+--------+
| ## Small Businesses           | 31.7   | 28.13  | 30.08  | 30.40  |
+-------------------------------+--------+--------+--------+--------+
| ## S                          | 5.74   | 5.61   | 8.19   | 8.88   |
| mall Disadvantaged Businesses |        |        |        |        |
+-------------------------------+--------+--------+--------+--------+
| Woman-Owned Small Businesses  | 5.46   | 5.18   | 4.73   | 7.08   |
+-------------------------------+--------+--------+--------+--------+
| HUBZone                       | 0.61   | 1.26   | 1.1    | 1.86   |
+-------------------------------+--------+--------+--------+--------+
| ### 8(a) Program              | 4.59   | 5.18   | 4.88   | 1.49   |
+-------------------------------+--------+--------+--------+--------+
| ### Service-Disabled          | ***    | ***    | ***    | ***    |
|                               | .13*** | .23*** | .42*** | .29*** |
| ***Veteran-Owned Small        |        |        |        |        |
| Business***                   |        |        |        |        |
+-------------------------------+--------+--------+--------+--------+

In an effort to improve on HHS' performance, the Office of Acquisition
Management Policy and the Office of Small and Disadvantaged Business
Utilization will establish an intra-agency task group made up of
acquisition and program officials from each of our Operating Divisions
(OPDIV) to study the buying practices of the Department to determine
what obstacles are preventing HHS from achieving its SDVO small business
goal of three percent. In addition, this task force will provide
recommendations on how the agency might overcome the identified
obstacles and achieve its small business goals, including SDVO small
business goals in FY 2005, 2006 and beyond.

II. **Action Items:**

This action plan establishes the steps that will be taken in the
Department to implement the Executive Order.

1.  The Deputy Secretary will issue a memorandum to all buying
    activities within the Department informing them of the need to
    support and assist SDVO small businesses in accordance with
    Executive Order 13360. This memorandum will also encourage the use
    of these businesses to support the HHS mission.

> Projected Time: 1stQuarter 2006
>
> 2\. The Procurement Executive and Director OSDBU will jointly request
> OPDIV's to recommend participants for the Intra-agency Task Group. The
> development and implementation of this plan shall be an element in the
> performance contract of the designated agency senior official, and
> will flow down as appropriate throughout the Department.
>
> Projected Time: 3^rd^ Quarter 2005

2.  The Intra-agency Task Group will examine the HHS Spend Analysis to
    identify those business categories where there are qualified SDVO
    Small Businesses and target appropriate opportunities.

> Projected Time: 4^th^ Quarter 2005

3.  The Director, OSDBU will identify the training needs of the
    organization this will include program orientations to the Agency's
    senior management.

> Projected Time: 1^st^ Quarter 2005

4.  In accordance with SBA's regulations, HHS will include
    subcontracting with SDVO small businesses as an evaluation factor in
    solicitations where there are qualified SDVO small businesses that
    can perform the services.

> Projected Time: Initiated 2^nd^ Quarter 2005 - Ongoing

5.  The Office of Small and Disadvantaged Business Utilization will
    continue to assist SDVO Small Businesses through its monthly vendor
    outreach sessions and information disseminated through the its web
    page on the world wide web.

> Projected Time: Ongoing