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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: October 12, 2000

FROM: Barry McVay, CPCM

SUBJECT: Executive Order 13170, Increasing Opportunities and Access for Disadvantaged Businesses

SOURCE: Federal Register; October 12, 2000, Vol. 65, No. 198, page 60825

AGENCIES: The President

ACTION: Issuance of Executive Order

SYNOPSIS: "To provide for increased access for disadvantaged businesses to federal contracting opportunities," President Clinton ordered federal agencies on October 6, 2000, "to take all necessary steps, as permitted by law, to increase contracting between the federal government and SDBs [small disadvantaged businesses], 8(a)s, and MBEs [minority business enterprises]."

EDITOR'S NOTE: On October 8, 1999, the Office of Federal Procurement Policy (OFPP) issued Policy Letter 99-1, Small Business Procurement Goals, which established an aggregate government-wide goal of 23% for contracts with small business, small disadvantaged business (5%), women-owned small businesses (5%), and "historically underutilized business zone" (HUBZone) small businesses (3%).

SUPPLEMENTAL INFORMATION: Among the directions provided by this executive order to each department and agency are:

The executive order also directs the General Services Administration (GSA) and Small Business Administration (SBA) to "act promptly to expand inclusion of 8(a)s and SDBs on GSA Schedules, and provide greater opportunities for 8(a) and SDB participation in orders under such schedules."

EDITOR'S NOTE: This is another pre-election "feel good" executive order, much like Executive Order 13157, which directed agencies to take steps necessary to meet or exceed the 5% women-owned small business contracting goal (see the May 25, 2000, FEDERAL CONTRACTS DISPATCH "Executive Order 13157, Increasing Opportunities for Women-Owned Small Businesses"). The 5% goal has existed for many years, and many of the directives were already being undertaken.

Same with this executive order. There are already governmentwide goals for SDBs, and each agency already negotiates 8(a) and SDB goals. Large businesses entering into contracts that exceed $500,000 have to submit a small business subcontracting plan that includes goals for awards to SDBs. Each agency employs small business specialists, and one of their jobs is to conduct outreach programs for 8(a)s and SDBs. There is nothing new in the executive order. It is nothing but a pre-election photo-opportunity with President Clinton, allowing Democratic politicians to go home and trumpet "look what we did for you! Now vote for me!" Basically, this executive order is insignificant rubbish.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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