[Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
[June 24, 1998]
[Page 1042]
[From the U.S. Government Publishing Office www.gpo.gov]



Statement Announcing the Benchmarking Process in Federal Procurement
June 24, 1998

    Today I am pleased to announce policies that continue my commitment 
to expand economic opportunity for all Americans. These new guidelines 
for Federal procurement are designed to remedy discrimination in a 
carefully targeted way. These reforms, which continue my promise to 
mend, not end affirmative action, expand opportunities for small 
disadvantaged businesses.
    These new guidelines allow small disadvantaged businesses to receive 
a price credit of up to 10 percent in bidding for Federal contracts. The 
credits will be available only in industries that show the ongoing 
effects of discrimination. The Department of Commerce identified these 
industries through a process called benchmarking, which compares the 
actual share of Federal procurement by small disadvantaged firms to the 
share that would be expected in the absence of discrimination. Limiting 
credits to these industries satisfies constitutional requirements while 
targeting our efforts in areas where disparities still exist.
    This program is based on authority given the administration by 
Congress in 1994. These credits will help level the playing field for 
firms that have suffered from discrimination. However, they do not 
ensure that any firm will win a contract. Small disadvantaged businesses 
must compete with all other businesses to win Federal contracts.
    The steps we are taking today comply with legal requirements and 
preserve competition, while serving to remedy discrimination.