Empowerment Contracting
Headline: 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.
- 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.
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.
Ask about this order
Ask questions about this executive order and its implications.
What agencies are affected by this order?
How does this order change existing policy?
What are the practical implications of this order?