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Volume 2 Number 2
CONGRESS PASSES DEPARTMENT OF DEFENSE SET-ASIDE FOR MINORITY FIRMS AND UNIVERSITIES
Before adjourning, the Congress agreed to a Department of Defense Authorization Bill with an amendment that provides a set-aside of five percent of defense contracts for socially and economically disadvantaged small businesses and historically Black colleges and universities over the next three years. The amendment will direct approximately $32 billion of the Department's military research, development, testing, construction, procurement, and maintenance funds to such institutions.
The "Procurement Reform Package," as introduced in the House by Representatives Gus Savage (D-IL) and John Conyers (D-MI) and passed by the House on August 14 (259-135), established a ten percent set-aside. The House-, Senate conferees reduced this to five percent. Representative Conyers has indicated that he will offer legislation to increase the percentage to ten when the program is considered for reauthorization in 1989. A ten percent set- aside in the Department of Defense program would parallel set-aside programs in the Surface Transportation Act and the Public Works Employment Act.
Key provisions of the measure include:
The Secretary of Defense is to report to Congress semi-annually on the agency's efforts to meet the goal, reasons for failure, if appropriate, and continuing plans to meet the goal.
The Secretary has authority to make advance payments to minority
contractors when necessary to alleviate capital shortage problems.
The Secretary is to furnish prospective minority contractors with information about the program, advice concerning procurement procedures, assistance in bid preparation, and other assistance as necessary to enhance their ability to do business with the Department of Defense.
Representative Conyers in announcing the passage of the amendment stated:
This set-aside program will help promote competition, create jobs in communities which suffer from high unemployment, and expand the capacity of business concerns and educational institutions whose services have been
vastly underutilized by the Federal Government. It does not represent a handout, but rather a serious opportunity for minorities to contribute their industry and creative genius to our nation's security.
Technical assistance for prospective contractors will be available from the Department of Defense's Office of Small and Disadvantaged Business Utilization as well as minority firms with expertise in this area. The Government Affairs Office of the United Negro College Fund is also available for information on any aspects of the program, 2100 M Street, NW, Suite 405, Washington, D.C. 20037.
  
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