President Clinton Signs Executive Order To Promote Federal Contracting To Minority Businesses
November 6, 2000
President Clinton signed an Executive Order on October 6th directing agencies to take action to increase contracting between the federal government and minority businesses. The order is an important step in counteracting the negative effects of procurement reform on minority business contracting opportunities.
The President’s action is the direct product of nearly a year-long intensive collaboration among senior White House staff, the Congressional Black and Hispanic Caucuses (CBC and CHC, respectively), and the National Coalition of Minority Businesses (NCMB), represented by Holland & Knight Partner Weldon Latham, who also serves as NCMB General Counsel. The order establishes a structure that can lead to increased minority participation in federal contracting that will ultimately benefit the minority business community.
The initiative to draft the order began after contract awards to minority businesses declined in the last fiscal year, due in part to contract bundling and agency purchases through large, multiple-award contracting vehicles, such as General Services Administration (GSA) Schedules, indefinite order – indefinite quantity (IDIQ) contracts, and Government-Wide Agency Contracts (GWACs). NCMB proposed that the President reestablish his resolve to promote minority contracting opportunities through a new Executive Order.
The resulting order directs agencies to comply more vigorously with existing statutory requirements regarding minority contracting goals, the use of price evaluation preferences for minority businesses, and limitations on contract bundling, among other requirements. More importantly, the Order provides agencies with new incentives to contract with minority businesses, and directs agencies to assist 8(a)s and SDBs in ways that will help those firms develop the skills necessary to succeed in business. The order seeks to further maximize agency effectiveness by mandating training programs for agency program and procurement officials to structure procurements to facilitate 8(a) and SDB participation.
Minority contractors should be able to use the order as leverage to persuade agencies to make more contracting opportunities available. Using this approach effectively, however, will require an expert understanding of the requirements of the order and knowledge of the personnel in the agencies and departments with responsibility for implementing its provisions. For further information regarding the order and other minority contracting issues, please contact Weldon H. Latham, Michael R. Hatcher, or Jeffrey P. Hildebrant at 202-955-3000.