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B-198797 1 (1980-09-04)

handle is hein.gao/gaobabjvx0001 and id is 1 raw text is: . 4 1 COMP~TROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.C. 20548 r2- B-198797 September 4, 1980 The Honorable Tony Coelho House of Representatives Dear Mr. Coelho: We are writing in further response to your letters of June 24, and April 29, 1980, with enclosures, ques- tioning thedefinition of minoritiesjused in assessing eligibility for participation as a minority business enterprise under contracts for the construction of the Fort McHenry highway tunnel under Baltimore harbor. The tunnel project is partially funded by a grant from the Federal Highway Administration (FHWA) to the State of Maryland Department of Transportation with a subgrant to the Interstate Division of Baltimore City. Your letter and the accompanying materials indicate that the FHWA required that a more restrictive definition of minorities be used than would have been applicable under Maryland law. You suggest that FHTA's imposition of its own definition of minorities violates the terms of Attachment 0 to Office of Management and Budget (OMB) Circular A-102, revised August 1979, with the result that certain Maryland-certified minority (Portuguese) business enterprises have been unlawfully excluded from participation as minority businesses under this grant. With your approval, we asked both the office of Federal Procurement Policy of OMB and the FHWA for their views on the questions raised in your letter. Copies of their replies are enclosed. In 1975, the FHWA established a minority business preference program embodying the general principles of Executive Order 11625, dated October 13, 1971, by pub-- lishing regulations to promote minority business par- ticipation in Federal-aid highway projects. These regulations, codified at 23 C.F.R. part 230, subpart 'B (1979), neither provide for waiver in favor of a

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