[Weekly Compilation of Presidential Documents Volume 30, Number 39 (Monday, October 3, 1994)]
[Pages 1894-1896]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 12928--Promoting Procurement With Small Businesses Owned 
and Controlled by Socially and Economically Disadvantaged Individuals, 
Historically Black Colleges and Universities, and Minority Institutions

September 16, 1994

    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, in order to enforce rigorously 
the letter and spirit of public laws that promote increased 
participation in Federal procurement by Small Businesses Owned and 
Controlled by Socially and Economically Disadvantaged Individuals (SDBs) 
as described in section 8 of the Small Business Act (15 U.S.C. 637), 
Historically Black Colleges and Universities (HBCUs) as described in 34 
C.F.R. 608.2, and Minority Institutions (MIs) as referred to in sections 
1046(3) and 316(b)(1) of the Higher Education Act of 1965, as amended 
(20 U.S.C. 1135d-5(3) and 1059c(b)(1), respectively), it is hereby 
ordered as follows:

    Section 1. Policy Statement. It is the policy of the United States 
Government that all department and agency heads and all Federal 
employees involved in the procurement of any and all goods and services 
shall assist SDBs, HBCUs, and MIs, as applicable, to develop viable, 
self-sustaining businesses capable of competing on an equal basis in the 
mainstream of the American economy. To that end, all Federal personnel 
shall commit to the letter and spirit of all laws promoting the 
participation of SDBs, HBCUs, and MIs in Federal procurement. The laws 
promote:

[[Page 1895]]

(a) the award of contracts to SDBs, HBCUs, and MIs through the Small 
Business Administration Section 8(a) Program, the Department of Defense 
Small and Disadvantaged Business Program, other agency programs, and 
through other specific statutory authority or appropriate means;
    (b) the establishment of particular goals for SDBs, HBCUs, or MIs on 
an agency-by-agency basis and the requirement that prime contractors and 
other recipients of Federal funds attain similar goals in their 
procurement; and
    (c) the establishment of other mechanisms that ensure that SDBs, 
HBCUs, and MIs have a fair opportunity to participate in Federal 
procurement.
    Sec. 2. Attainment of Goals. All departments and agencies are 
required by law to establish participation goals of not less than 5 
percent (15 U.S.C. 644(g)) or a greater percentage where otherwise 
required by law, as further provided in the Office of Federal 
Procurement Policy Letter No. 91-1 of March 11, 1991. Although the 
Federal Government has made substantial strides toward meeting 
established SDB, HBCU, and MI participation goals, certain departments 
and agencies have from time to time failed to aggressively pursue such 
goals. Department and agency heads are henceforth directed to execute, 
implement, and otherwise aggressively strive to fulfill the statutorily-
mandated procurement participation goals. In addition, all departments 
and agencies are encouraged to set reasonable participation goals that 
exceed statutory requirements, to the extent permitted by law.
    Sec. 3. Subcontracting Plans. The Small Business Act, (15 U.S.C. 
637(d)) and other related laws require certain prime contractors to 
maximize the use of SDBs in subcontracting plans and strive to achieve 
stated goals through prime contractors' subcontracting practices. 
Department and agency heads are directed to aggressively enforce these 
prime contractors' obligations to maximize awards of subcontracts to 
eligible SDBs.
    Sec. 4. Office of Small and Disadvantaged Business Utilization 
(``OSDBU''). (a) Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)) establishes in each Federal department and agency an OSDBU and 
requires that the Director of the OSDBU ``be responsible only to, and 
report directly to, the head of such agency or to the deputy of such 
head'' (15 U.S.C. 644(k)(3)). To the extent not prohibited by law, each 
department and agency shall ensure that the aforementioned direct 
reporting requirements are henceforth vigorously enforced.
    (b) Because of the importance of the OSDBU function, each department 
and agency shall also, to the extent not prohibited by law, comply with 
the Office of Federal Procurement Policy Letter No. 79-1 of March 7, 
1979, which provides implementation guidance on section 15k and the 
organizational placement and functions of the OSDBU.
    Sec. 5. Anti-fraud Enforcement. All department and agency heads 
shall ensure that in enforcing the laws and requirements mentioned in 
this order, Federal benefits or contracts intended for SDBs, HBCUs, and 
MIs are not awarded to entities that are not legitimate SDBs, HBCUs, and 
MIs. Department and agency anti-fraud enforcement, however, shall not 
diminish agency vigor in achieving the aforementioned participation 
goals, which exist to promote the development of legitimate SDBs, HBCUs, 
and MIs. Nothing herein is intended to change self-certification 
requirements.
    Sec. 6. Periodic Reports to the President. The Administrator of the 
Small Business Administration and the Administrator of the Office of 
Federal Procurement Policy shall report to the President periodically on 
the progress of all departments and agencies in complying with the laws 
and requirements mentioned in this order.
    Sec. 7. Independent Agencies. Independent agencies are requested to 
comply with the provisions of this order.
    Sec. 8. This order shall be effective immediately.
                                            William J. Clinton
The White House,
September 16, 1994.

[Filed with the Office of the Federal Register, 10:59 a.m., September 
19, 1994]

[[Page 1896]]

Note: This Executive order was published in the Federal Register on 
September 20, and it was released by the Office of the Press Secretary 
on September 29.