Promoting Procurement With Small Businesses Owned and Controlled by Socially and Economically Disadvantaged Individuals, Historically Black Colleges and Universities, and Minority Institutions
Headline: Requires Agencies to Increase Procurement with Disadvantaged Businesses and Minority Institutions
What it does: Agencies must aggressively implement and meet procurement participation goals for disadvantaged small businesses, historically black colleges and minority institutions and enforce subcontracting and reporting requirements.
- Requires agency procurement participation goals of at least 5 percent.
- Prime contractors must maximize subcontracts to eligible disadvantaged small businesses.
- Offices for disadvantaged business use must report directly to agency heads.
Summary
This order directs federal departments and agencies to help disadvantaged small businesses, historically black colleges and other minority institutions compete for government contracts. It requires agencies to meet participation goals (at least 5 percent where law applies), enforce subcontracting plans that favor eligible disadvantaged firms, and ensure offices that support disadvantaged businesses report directly to agency heads.
The order also calls for anti-fraud checks, periodic reports to the President, and asks independent agencies to comply.
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