Continued Commitment to Small, Small Disadvantaged, and Small Women-Owned Businesses in Federal Procurement

This 1994 presidential memorandum reaffirms the federal government's commitment to directing a fair proportion of contracts to small, small disadvantaged, and small women-owned businesses. It encourages agency heads to use set-asides, price preferences, and Section 8(a) of the Small Business Act, while noting new authorities from the recently enacted Federal Acquisition Streamlining Act of 1994.

Federal Register 59 FR 52397

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Key directives

Encourage use of set-asides for small, small disadvantaged, and small women-owned businesses
Encourage use of price preferences for targeted small business categories
Encourage use of Section 8(a) of the Small Business Act (15 U.S.C. 637(a))
Ensure streamlining efforts encourage participation of these businesses in federal procurements

Who is ordered

Timeline

Immediate

Policy reaffirmation published in Federal Register
Directive to agency heads to encourage use of set-asides and price preferences

Near term (90d)

Agency implementation of Federal Acquisition Streamlining Act of 1994 provisions for small disadvantaged and women-owned business contracting goals

Long term

Sustained federal procurement preferences for targeted small business categories

Risks & tensions

No binding numerical goals or enforcement mechanisms specified in memorandum itself
Effectiveness depends on agency-level implementation discretion
Potential tension between 'efficient contract performance' and set-aside objectives