[Federal Register Volume 65, Number 198 (Thursday, October 12, 2000)]
[Presidential Documents]
[Pages 60827-60830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26446]



[[Page 60825]]

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Part VII





The President





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Executive Order 13170--Increasing Opportunities and Access for 
Disadvantaged Businesses
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                         Presidential Documents 
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  Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 60827]]

                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

[[Page 60828]]

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;

[[Page 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.

[[Page 60830]]

                    (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.

                    (Presidential Sig.)

                THE WHITE HOUSE,

                     October 6, 2000.

[FR Doc. 00-26446
Filed 10-11-00; 8:45 am]
Billing code 3195-01-P