April 29, 1980
POLICY LETTER 80-4
HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
Business Enterprise Program
Background - Executive Order 12138 noted that Congressional findings
and the findings of the Interagency Task Force on Women Business Owners
- the significant role which small business and women entrepreneurs can play
in promoting full employment and balanced growth in our economy;
- the many obstacles facing women entrepreneurs; and
- the need to aid and stimulate women's business enterprise.
In response to these findings, the Executive Order established
a National Women's Business Enterprise Policy and prescribed arrangements for
developing, coordinating and implementing a national program for women's
business enterprise. Each department and agency was directed to take affirmative
action in support of women's business enterprise in appropriate programs and
activities including, but not limited to, procurement.
President's Memorandum for the Heads of Departments and Agencies dated
May 18, 1979, accompanying E.O. 12138, noted that
the Interagency Task Force on Women Business Owners found that efforts
to encourage full participation of women in Federal procurement activity
have been less than adequate. Subsequently, OFPP undertook to establish
agency goals for the award of prime contracts to women-owned firms and
to develop Government- wide procurement regulations to encourage Federal
prime contractors to increase their use of women-owned firms as subcontractors.
Action - There is a need in Government for uniformity and consistency
in the application of procurement policy. This directive provides a uniform
policy applicable to the Women's Business Enterprise Program. The clauses and
regulatory coverage that follow articulate this uniform policy. The Defense
Acquisition Regulation (DAR), the Federal Procurement Regulations (FPR), and the
National Aeronautics and Space Administration Procurement Regulations (NASA PR)
shall be amended to conform to this policy.
CLAUSES FOR WOMEN-OWNED BUSINESS CONCERNS
- The following clause shall be included in all contracts expected to exceed
$10,000 except (i) contracts which, including all subcontracts thereunder, are
to be performed entirely outside the United States, its possessions, Puerto
Rico and the Trust Territory of the Pacific Islands, and (ii) contracts for
services which are personal in nature.
OF WOMEN-OWNED BUSINESS CONCERNS (Over $10,000)
It is the policy of the United States Government that women-owned businesses
shall have the maximum practicable opportunity to participate in the performance
of contracts awarded by any Federal agency.
(b) The Contractor
agrees to use his best efforts to carry out this policy in the award of subcontracts
to the fullest extent consistent with the efficient performance of this contract.
As used in this contract, a
"woman-owned business" concern means a business that is at least 51% owned
by a woman or women who also control and operate it. "Control" in this context
means exercising the power to make policy decisions. "Operate" in this context
means being actively involved in the day-to-day management. "Women" mean
all women business owners.
(End of Clause)
- The following clause shall be included in all contracts, amendments or
modifications expected to exceed $500,000 or in the case of contracts for the
construction of any public facility, $1,000,000 which require the Utilization
Clause in (1) above.
BUSINESS CONCERNS SUBCONTRACTING PROGRAM
(Over $500,000 or
$1,000,000 for Construction of Any Public Facility)
(a) The Contractor agrees to establish and conduct a program which will
enable women-owned business concerns to be considered fairly as subcontractors
and suppliers under this contract. In this connection, the contractor shall:
(1) Designate a liaison officer who will administer the Contractor's
"Women-Owned Business Concerns Program."
(b) The Contractor further agrees to insert, in any subcontract
hereunder which may exceed $500,000 or $1,000,000 in the case of contracts for
the construction of any public facility and which offers substantial
subcontracting possibilities, provisions which shall conform substantially to
the language of this clause, including this paragraph (b), and to notify the
Contracting Officer of the names of such subcontractors.
adequate and timely consideration of the potentialities of known women-owned
business concerns in all "make-or-buy" decisions.
(3) Develop a list of qualified bidders that are women-owned businesses
and assure that known women-owned business concerns have an equitable
opportunity to compete for subcontracts, particularly by making information
on for the coming opportunities available, by arranging solicitations, time
for the preparation of bids, quantities, specifications, and delivery
schedules so as to facilitate the participation of women-owned business
(4) Maintain records showing (i) procedures which have been adopted to
comply with the policies set forth in this clause, including the
establishment of a source list of women-owned business concerns; (ii) awards
to women-owned businesses on the source list by minority and non-minority
women-owned business concerns; and (iii) specific efforts to identify and
award contracts to women-owned business concerns.
the "Utilization of Women-Owned Business Concerns" clause
in subcontracts which offer substantial subcontracting opportunities.
(6) Cooperate in any studies and surveys of the Contractor's women-owned
business concerns procedures and practices that the Contracting Officer may
from time-to-time conduct.
(7) Submit periodic reports of subcontracting to women-owned business
concerns with respect to the records referred to in subparagraph (4) above,
in such form an manner and at such time (not more often than quarterly) as
the Contracting Officer may prescribe.
(c) The contractor further agrees to require written certification by its
sub contractors that they are bona fide women-owned and controlled business
concerns in accordance with the definition of a women-owned business concern
as set forth in the Utilization Clause 1(b) above at the time of submission of
bids or proposals.
(End of Clause)
DATE: This Policy Letter is effective June 1, 1980, and shall be
applicable to all solicitations, and contracts arising therefrom, issued after
June 1, 1980.
Policy Letter has been concurred in by the Director of OMB.
Karen Hastie Williams
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