[Federal Register Volume 59, Number 181 (Tuesday, September 20, 1994)]
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From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 94-23453]
[[Page Unknown]]
[Federal Register: September 20, 1994]
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Part III
The President
_______________________________________________________________________
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
Proclamation 6720--Citizenship Day and Constitution Week, 1994
Proclamation 6721--National Farm Safety and Health Week, 1994
                        Presidential Documents
Federal Register
Vol. 59, No. 181
Tuesday, September 20, 1994
____________________________________________________________________
Title 3--
The President
                Executive Order 12928 of September 16, 1994
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 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:
                    (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.
                    (Presidential Sig.)>
                THE WHITE HOUSE,
                    September 16, 1994.
[FR Doc. 94-23453
Filed 9-19-94; 10:59 am]
Billing code 3195-01-P