DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 14

Legislation

COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN

Executive Order 13360, Contracting with Service-Disabled Veterans’ Businesses
On October 20th, 2004, the President signed Executive Order 13360 calling for an increase federal contracting
and subcontracting opportunities for service-disabled veteran businesses. On December 12th, 2004, the
Executive Office of the President issued a memorandum to all Federal agencies on the implementation of
the Executive Order. This memorandum provides guidance to assist agencies in preparing their strategies to
implement the Order.
Among other things, the Order requires each agency to:
1. develop a strategy to significantly increase its contracting and subcontracting with small businesses
owned and controlled by service-disabled veterans;
2. designate a senior-level official to be responsible for developing and implementing the agency’s
strategy; and
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California’s Proposition 209
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On November 5, 1996, California voters passed Proposition 209. It prohibits state and local government es.
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bodies from granting preferential treatment to any individual or group on the basis of race, sex, color,
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ethnicity or national origin in areas of public hiring, contracting or education. The initiative hastyno effect on
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affirmative action programs run by the federal government or private businesses and colleges.
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The Supreme’s Court decision to let a lower court ruling stand means opponents con the
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legal options. Thus, Proposition 209 will not be challenged in the foreseeablelefuture. Supporters of 209 have
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begun to sue cities and counties for maintaining affirmative-action programs that may violate the new law.
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Any of these suits could end up before the U.S. Supreme Court, givingo
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Proposition 209.
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Proposition 200 — State of Washington
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Proposition 200 was passed November 1998. It uses the same language as Proposition 209.
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HUBZones — Historically Underutilized Business Zones www.sba.gov/hubzone/ (See Section 10)
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The Small Business Reauthorization Act han
addresses the issue of economically distressed urban and rural areas:
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• To be eligible a business must beotsmall, must be located in a designated HUBZone, and must hire not less
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than 35% of its workforce fromtitthe HUBZone.
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• Allow prices and non-price nincentives, including a 10% price preference on competitive awards.
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• Provide for sole-sourceldawards on manufacturing contracts under $5 million ($3 million of all types of
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contracts).
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• Provide equal rodu
consideration to HUBZone eligible firms as that of 8(a) firms in the procurement hierarchy.
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On March 19, 2002, the President unveiled a Small Business Agenda that proposed several substantive steps
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toward creating a dynamic environment where small businesses and entrepreneurs can flourish. The plan
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included new tax incentives, health care options, and a reduction in regulatory barriers. And for those small
businesses seeking to do business with the federal government, the President announced several proposals
to improve the access of small businesses to federal contracting opportunities. Specifically, the President
called upon the Office of Management and Budget (OMB) to prepare a strategy for unbundling contracts.
Definition
Small Business Reauthorization Act of 1997 defines contract bundling as “consolidating two or more procurement requirements for goods or services previously provided or performed under separate, smaller contracts into a solicitation of offers for a single contract that is unlikely to be suitable for award to a small
business concern.” The Act lists several factors that might cause unsuitability for award to a small business.
These are:
• The diversity, size, or specialized nature of the elements of the performance specified;
• the aggregate dollar value of the anticipated award;
• the geographical dispersion of contract performance sites; or
• any combination of these criteria.

SECTION 1

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3. report its progress annually to the Small Business Administration (SBA).

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