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103855 1 (1977-09-26)

handle is hein.gao/gaobadxwo0001 and id is 1 raw text is: 


LCCUMENT FISUME


03855 - [B27339711

[Proposed Minority Enterprise Act cf 1977]. September 26, 1977.
6 pp.
Testimony before the House Cormittee on Small Business: Minority
Enterprise and General Oversight Subcommittee; by Richard W.
Gutmann, Director, Procu.:ement and Systems kcgrisitions Div.

Issue Area: Federal Procurement of Goods and Services (1900).
Contact: Procurement and Systems Acquisition Div.
Budqet Function: General Government: Other General Government
     (806)
Organizaticn Concerred: Department of Defense.
Congressional Relevance: House Committee on Small Business:
    Minority Enterprise and General Oversight Subcommittee.
Authority: Minority Enterprise Act of 1977; H.P. 567 (95th
    Cong.). Small Business Investment Act cf 1S58, as amended.
    40 U.S.C. 270. et seq. A.S.P.E. 7-104.36.

         The proposed Minority Enterprise Act cf 1977 (H.R. 567)
would expand assistance to minority small busiress concerns,
provide statutory standards for contracting and subcontracting
with respect to such concerns, and create a commission on
Federal Assistance to Minority Enterprise. Small business
concerns owned by the named minority group members wolild
autoratically be eligible for the kenefits conferred by the
bill, whether or not actual social or economic disadvantage
could be shown to exist. Since the intent of the bill is to
assist those who are unable to compete effectively without
special financial assistance, minority group members should be
eliminated as a separate eligibility category. A review of the
Department of Defense (DOD) Minority Business Interprise Program
indicated that prime contractor's rzograms 'to award subcontracts
to minority enterprises were not as effective as they might be
and that more than one-third of the largest DOD contractors are
not required to participate in the program. Either the
discretion allowed to contracting officers with respect to the
insertion of the Minority Business Enterprise Subcontracting
Clause should be eliminated from the proposed legislation or
contracting officers should be required to document the record
whenever the clause is not to be included. (SC)

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