[Federal Register Volume 61, Number 102 (Friday, May 24, 1996)]
[Presidential Documents]
[Pages 26069-26070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13306]



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  Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 26069]]

                Executive Order 13005 of May 21, 1996

                
Empowerment Contracting

                 In order to promote economy and efficiency in Federal 
                procurement, it is necessary to secure broad-based 
                competition for Federal contracts. This broad 
                competition is best achieved where there is an 
                expansive pool of potential contractors capable of 
                producing quality goods and services at competitive 
                prices. A great and largely untapped opportunity for 
                expanding the pool of such contractors can be found in 
                this Nation's economically distressed communities.

                 Fostering growth of Federal contractors in 
                economically distressed communities and ensuring that 
                those contractors become viable businesses for the long 
                term will promote economy and efficiency in Federal 
                procurement and help to empower those communities. 
                Fostering growth of long-term viable contractors will 
                be promoted by offering appropriate incentives to 
                qualified businesses.

                 Accordingly, by the authority vested in me as 
                President by the Constitution and the laws of the 
                United States, including section 486(a) of title 40, 
                United States Code, and section 301 of title 3, United 
                States Code, it is hereby ordered as follows:

                 Section 1. Policy. The purpose of this order is to 
                strengthen the economy and to improve the efficiency of 
                the Federal procurement system by encouraging business 
                development that expands the industrial base and 
                increases competition.

                 Sec. 2. Empowerment Contracting Program. In 
                consultation with the Secretaries of the Departments of 
                Housing and Urban Development, Labor, and Defense; the 
                Administrator of General Services; the Administrator of 
                the National Aeronautics and Space Administration; the 
                Administrator of the Small Business Administration; and 
                the Administrator for Federal Procurement Policy, the 
                Secretary of the Department of Commerce shall develop 
                policies and procedures to ensure that agencies, to the 
                extent permitted by law, grant qualified large 
                businesses and qualified small businesses appropriate 
                incentives to encourage business activity in areas of 
                general economic distress, including a price or an 
                evaluation credit, when assessing offers for government 
                contracts in unrestricted competitions, where the 
                incentives would promote the policy set forth in this 
                order. In developing such policies and procedures, the 
                Secretary shall consider the size of the qualified 
                businesses.

                 Sec. 3. Monitoring and Evaluation. The Secretary 
                shall:

                     (a) monitor the implementation and operation of 
                the policies and procedures developed in accordance 
                with this order;
                     (b) develop a process to ensure the proper 
                administration of the program and to reduce the 
                potential for fraud by the intended beneficiaries of 
                the program;
                     (c) develop principles and a process to evaluate 
                the effectiveness of the policies and procedures 
                developed in accordance with this order; and
                     (d) by December 1 of each year, issue a report to 
                the President on the status and effectiveness of the 
                program.

                 Sec. 4. Implementation Guidelines. In implementing 
                this order, the Secretary shall:

[[Page 26070]]

                     (a) issue rules, regulations, and guidelines 
                necessary to implement this order, including a 
                requirement for the periodic review of the eligibility 
                of qualified businesses and distressed areas;
                     (b) draft all rules, regulations, and guidelines 
                necessary to implement this order within 90 days of the 
                date of this order; and
                     (c) ensure that all policies and procedures and 
                all rules, regulations, and guidelines adopted and 
                implemented in accordance with this order minimize the 
                administrative burden on affected agencies and the 
                procurement process.

                 Sec. 5. Definitions. For purposes of this Executive 
                order:

                     (a) ``Agency'' means any authority of the United 
                States that is an ``agency'' under 44 U.S.C. 3502(1), 
                other than those considered to be independent 
                regulatory agencies, as defined in 44 U.S.C. 3502(10).
                     (b) ``Area of general economic distress'' shall be 
                defined, for all urban and rural communities, as any 
                census tract that has a poverty rate of at least 20 
                percent or any designated Federal Empowerment Zone, 
                Supplemental Empowerment Zone, Enhanced Enterprise 
                Community, or Enterprise Community. In addition, the 
                Secretary may designate as an area of general economic 
                distress any additional rural or Indian reservation 
                area after considering the following factors:
                     (1) Unemployment rate;
                     (2) Degree of poverty;
                     (3) Extent of outmigration; and
                     (4) Rate of business formation and rate of 
                business growth.
                     (c) ``Qualified large business'' means a large 
                for-profit or not-for-profit trade or business that (1) 
                employs a significant number of residents from the area 
                of general economic distress; and (2) either has a 
                significant physical presence in the area of general 
                economic distress or has a direct impact on generating 
                significant economic activity in the area of general 
                economic distress.
                     (d) ``Qualified small business'' means a small 
                for-profit or not-for-profit trade or business that (1) 
                employs a significant number of residents from the area 
                of general economic distress; (2) has a significant 
                physical presence in the area of general economic 
                distress; or (3) has a direct impact on generating 
                significant economic activity in the area of general 
                economic distress.
                     (e) ``Secretary'' means the Secretary of Commerce.

                 Sec. 6. Agency Authority. Nothing in this Executive 
                order shall be construed as displacing the agencies' 
                authority or responsibilities, as authorized by law, 
                including specifically other programs designed to 
                promote the development of small or disadvantaged 
                businesses.

                 Sec. 7. Judicial Review. This Executive order does not 
                create any right or benefit, substantive or procedural, 
                enforceable at law or equity by a party against the 
                United States, its agencies or instrumentalities, its 
                officers or employees, or any other person.

                    (Presidential Sig.)

                THE WHITE HOUSE,

                    May 21, 1996.

[FR Doc. 96-13306
Filed 5-23-96; 8:45 am]
Billing code 3195-01-P