Promoting Procurement With Small Businesses Owned and Controlled by Socially and Economically Disadvantaged Individuals, Historically Black Colleges and Universities, and Minority Institutions
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.
Real-world impact
- 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.
Topics
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.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”