Executive
Order 12928 EO 12928
DATE: 09-16-1994
THE WHITE HOUSE
Office of the Press Secretary
| For
Immediate Release |
September
16, 1994 |
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
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 procure- ment 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: (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
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