EO 12928
Effective Date: September 16, 1994

Responsible Office: Office of Small and Disadvantaged Business Utilization


By the authority vested in me as President by the Constitution
and the laws of the United States of America, in order to enforce
rigorously the letter and spirit of public laws that promote
increased participation in Federal procurement by Small
Businesses Owned and Controlled by Socially and Economically
Disadvantaged Individuals (SDBs) as described in section 8 of the
Small Business Act (15 U.S.C. 637), Historically Black Colleges
and Universities (HBCUs) as described in 34 C.F.R. 608.2, and
Minority Institutions (MIs) as referred to in sections 1046(3)
and 316(b)(1) of the Higher Education Act of 1965, as amended (20
U.S.C. 1135d-5(3) and 1059c(b)(1), respectively), it is hereby
ordered as follows:

Section 1. Policy Statement.  It is the policy of the United
States Government that all department and agency heads and all
Federal employees involved in the procurement of any and all
goods and services shall assist SDBs, HBCUs, and MIs, as
applicable, to develop viable, self-sustaining businesses capable
of completing on an equal basis in the mainstream of the American
economy.  To that end, all Federal personnel shall commit to the
letter and spirit of all laws promoting the participation of
SDBs, HBCUs, and MIs in Federal procurement.  The laws promote:
     (a) the award of contracts to SDBs, HBCUs, and MIs through
the Small Business Administration Section 8(a) Program, the
Department of Defense Small and Disadvantaged Business Program,
other agency programs, and through other specific statutory
authority or appropriate means;
     (b) the establishment of particular goals for SDBs, HBCUs,
or MIs on an agency-by-agency basis and the requirement that
prime contractors and other recipients of Federal funds attain
similar goals in their procurement; and 
     (c) the establishment of other mechanisms that ensure that
SDBs, HBCUs, and MIs have a fair opportunity to participate in
Federal procurement.

Sec. 2. Attainment of Goals.  All departments and agencies are
required by law to establish participation goals of not less than
5 percent (15 U.S.C. 644(g)) or a greater percentage where
otherwise required by law, as further provided in the Office of
Federal Procurement Policy Letter No. 91-1 of March 11, 1991. 
Although the Federal Government has made substantial strides
toward meeting established SDB, HBCU, and MI participation goals,
certain departments and agencies have from time to time failed to
aggressively pursue such goals.  Department and agency heads are
henceforth directed to execute, implement, and otherwise
aggressively strive to fulfill the statutorily-mandated
procurement participation goals.  In addition, all departments
and agencies are encouraged to set reasonable participation goals
that exceed statutory requirements, to the extent permitted by

Sec. 3. Subcontracting Plans.  The Small Business Act, (15 U.S.C
637(d)) and other related laws require certain prime contractors
to maximize the use of SDBs in subcontracting plans and strive to
achieve stated goals through prime contractors' subcontracting
practices.  Department and agency heads are directed to
aggressively enforce these prime contractors' obligations to
maximize awards of subcontracts to eligible SDBs.

Sec. 4. Office of Small and Disadvantaged Business Utilization
("OSDBU") (a) Section 15(k) of the Small Business Act (15 U.S.C
644 (k)) establishes in each Federal department and agency an
OSDBU and requires that the Director of the OSDBU "be responsible
only to, and report directly to, the head of such agency or to
the deputy of such head" (15 U.S.C. 644(k)(3)).  To the extent
not prohibited by law, each department and agency shall ensure
that the aforementioned direct reporting requirements are
henceforth vigorously enforced.
     (b) Because of the importance of the OSDBU function, each
department and agency shall also, to the extent not prohibited by
law, comply with the Office of Federal Procurement Policy Letter
No. 79-1 of March 7, 1979, which provides implementation guidance
on section 15k and the organizational placemement and functions
of the OSDBU.

Sec. 5. Anti-fraud Enforcement.  All department and agency heads
shall ensure that in enforcing the laws and requirements
mentioned in this order.  Federal benefits or contracts intended
for SDBs, HBCUs, and MIs are not awarded to entities that are not
legitimate SDBs, HBCUs, and MIs.  Department and agency anti-
fraud enforcement, however, shall not diminish agency vigor in
achieving the aforementioned participation goals, which exist to
promote the development of legitimate SDBs, HBCUs, and MIs. 
Nothing herein is intended to change self-certification

Sec. 6. Periodic Reports to the President.  The Administrator of
the Small Business Administration and the Administrator of the
Office of Federal Procurement Policy shall report to the
President periodically on the progress of all departments and
agencies in complying with then laws and requirements mentioned
in this order.

Sec. 7. Independent Agencies.  Independent agencies are requested
to comply with the provisions of this order.

Sec. 8. This order shall be effective immediately.

                         /s/William J. Clinton

September 16, 1994.


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