DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 9

COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN

SECTION 1
LEGISLATION
The primary legislative initiatives which impact diversity programs are listed in this section.
Public Law 95-507 (1978)
P.L. 95-507, passed in 1978, amended Section 8(d) of the Small Business Act and changed the way prime
contractors and large businesses were to do business with the government. Prior to 1978, efforts to
subcontract with small/small disadvantaged businesses were voluntary. They became mandatory with
passage of P.L. 95-507, which stated that contracts over $10,000 must contain a “Utilization of Small Business
Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged
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Individuals” clause. For contracts over $500,000 ($1,000,000 for construction) P.L. 95-507 requires a
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subcontracting plan which sets percentage goals for utilizing small business concerns, including separate info
goals for disadvantaged small business. The prime contractor must describe what efforts it will make rtoore
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ensure that SDBs have an equal opportunity to compete.
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Note: Contract Size change to Public Law 95-507
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Contracts > $650K ($1M construction) and subcontract opportunities exist. Modifications > $650K ($1M
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construction) with new work AND subcontract opportunities exist. Multi-year contracts / contracts with
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options (cumulative value of base contract & all options, SEPARATE goals forctbase & each option).
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Each subcontracting plan required under 19.702 must include separatesepercentage goals for using small
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business (including ANCs and Indian tribes), veteran-owned small. Ple
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owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian
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tribes) and women-owned small business concerns as subcontractors.
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More recent laws have further amended Section 8(d) of the Small Business Act, and additional goals have
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been added for women-owned small business (WOSB), HUBZone small business, Veteran-owned small
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business (VOSB), and Service-DisabledsiVOSB. The Small Business Act, including Section 8(d), is available on
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Definitions used in P.L.y 95-507 include:
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Disadvantaged Small Business
• 51% owned and controlled by socially and economically disadvantaged individuals.

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Socially & Economically Disadvantaged
• Black Americans, Hispanic Americans, Native Americans (American Indians, Eskimos, Aleuts, and
Native Hawaiians), Asian-Pacific Americans (U.S. citizens whose origins are from Burma, Thailand,
Malaysia, Indonesia, Singapore, Brunei Japan, China, Taiwan, Laos, Cambodia, Kampuchea,
Vietnam, Korea, the Philippines, Samoa, Guam, Macao, Hong Kong, Fiji, Tonga, Kiributi, Tuvalu,
Nauru, US Trust Territories of the Pacific, Northern Marianas, Republic of Palau & Marshall Islands),
and Subcontinent Asian Americans (U.S. citizens whose origins are from India, Pakistan,
Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal).
• Any individual found to be disadvantaged by SBA pursuant to section 8(a) of the Small Business Act.

2012 Supplier Diversity Information Resource Guide

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SECTION 1