[Congressional Record (Bound Edition), Volume 151 (2005), Part 21]
[Extensions of Remarks]
[Page 28178]
[From the U.S. Government Publishing Office, www.gpo.gov]




 ONGOING OBSTACLES THAT MINORITY BUSINESSES FACE IN OBTAINING CONTRACTS

                                 ______
                                 

                         HON. CYNTHIA McKINNEY

                               of georgia

                    in the house of representatives

                       Tuesday, December 13, 2005

  Ms. McKINNEY. Mr. Speaker, I support the extension of the Defense 
Department's program ensuring that its Federal contracting process in 
no way supports or subsidizes the discrimination that has long been a 
problem in the contracting business. The extension of the program 
through September 2009 is needed to help achieve that goal.
  Congress has learned a great deal about the effects of discrimination 
in denying contracting opportunities for minority-owned businesses. The 
ugly reality is that contracting has long been dominated by ``old-boy'' 
networks that make it very difficult for African Americans, Latinos, 
Asians, and Native Americans to participate fairly in these 
opportunities, or even obtain information about them.
  Years of Congressional hearings have shown that minorities 
historically have been excluded from both public and private 
construction contracts in general, and from Federal defense contracts 
in particular. Since its adoption, the Defense Department program, 
called the 1207 program, has helped level the playing field for 
minority contractors. But there is still more to do, as the additional 
information we have received since the program was last reauthorized 
makes clear.
  Ever since the program was first adopted in 1986, racial and ethnic 
discrimination--both overt and subtle--have continued to erect 
significant barriers to minority participation in federal contracting. 
In cases, overt discrimination has prevented minority-owned businesses 
from obtaining needed loans and bonds. Prime contractors, unions, and 
suppliers of goods and materials have preferred to do business with 
white contractors rather than with minority firms.
  These problems affect a wide variety of areas in which the Department 
offers contracts, and the problems are detailed in many recent 
disparity studies, including:
  City of Dallas Availability and Disparity Study, Mason Tillman 
Associates, Ltd. (2002);
  City of Cincinnati Disparity Study, Griffin & Strong, P.C. (2002);
  Ohio Multi-Jurisdictional Disparity Studies, Mason Tillman 
Associates, Ltd. (2003);
  Procurement Disparity Study of the Commonwealth of Virginia, MGT of 
America, Inc. (2004);
  Alameda County Availability Study, Mason Tillman Associates (2004);
  City of New York Disparity Study, Mason Tillman Associates, Ltd. 
(2005).
  The 1207 program helps to correct these problems of discrimination 
without imposing an undue burden on white-owned businesses. Small 
businesses owned by white contractors are eligible to receive the 
benefits of the program if they are socially or economically 
disadvantaged.
  All of us benefit when recipients of federal opportunities reflect 
America's diversity, and I'm proud to support the reauthorization of 
the 1207 program.

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