[Weekly Compilation of Presidential Documents Volume 36, Number 41 (Monday, October 16, 2000)]
[Pages 2360-2363]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 13170--Increasing Opportunities and Access for 
Disadvantaged Businesses

October 6, 2000

    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

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            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 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

[[Page 2362]]

            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;
    (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

[[Page 2363]]

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.
    (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.
                                            William J. Clinton
The White House,
October 6, 2000.

[Filed with the Office of the Federal Register, 8:45 a.m., October 11, 
2000]

Note: This Executive order was published in the Federal Register on 
October 12. This item was not received in time for publication in the 
appropriate issue.