Empowerment Contracting
Creates Federal Contract Incentives for Distressed Community Businesses
What it does
Agencies must give qualified businesses incentives, such as price or evaluation credits, in unrestricted contract competitions to encourage activity in distressed areas.
Real-world impact
- Increases contracting opportunities for businesses in high-poverty census tracts.
- Creates administrative rules, reporting, and annual evaluation by Commerce.
- Requires periodic eligibility reviews and measures to reduce fraud.
Topics
Summary
This order directs the Secretary of Commerce to set up a program that gives incentives to businesses located in economically distressed areas to encourage their participation in federal contracting. Incentives can include price or evaluation credits, and the Commerce Secretary must write rules and consult other departments when doing so.
The order defines distressed areas (for example, census tracts with at least 20% poverty) and requires Commerce to monitor results, reduce fraud, review eligibility regularly, draft rules within 90 days, and report to the President each year by December 1.
Questions, answered
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