Presidential Documents

60827

Federal Register

Vol. 65, No. 198

Thursday, October 12, 2000

Title 3—

The President

Executive Order 13170 of October 6, 2000

Increasing Opportunities and Access for Disadvantaged Businesses

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 Development 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 arena;

(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

60828 Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / Presidential Documents

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 consistent 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; and

(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 evaluation;

Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / Presidential Documents 60829

(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 determination 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.

60830 Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / Presidential Documents

(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 employees.

THE WHITE HOUSE,

October 6, 2000.

œ–

[FR Doc. 00–26446

Filed 10–11–00; 8:45 am]

Billing code 3195–01–P