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EO 13170Executive OrderClinton · D Quiet signal

Executive Order 13170

Increasing Opportunities and Access for Disadvantaged Businesses

This executive order directs federal agencies to increase contracting opportunities for Small Disadvantaged Businesses (SDBs), 8(a) program firms, and Minority Business Enterprises (MBEs) through aggressive outreach, goal-setting, enforcement of subcontracting requirements, and limits on contract bundling. It mandates specific participation rates, reporting mechanisms, and coordination with the Small Business Administration to overcome historic underutilization in federal procurement.

Federal Register Open PDF 65 FR 60827

Impact dates

  1. Annual agency assessment of efforts to increase utilization of 8(a)s, SDBs, and MBEs

  2. Agencies submit long-term comprehensive implementation plans to OMB Director

  3. Commerce Secretary and SBA Administrator present awards program feasibility study to President

Key directives

  • Agencies must use all available communication forms to disseminate contract announcements to SDBs, 8(a)s, and MBEs
  • Maximum legal use of price evaluation preference programs for underused economic areas
  • Prime contractors must meet or exceed federal subcontracting goals; enforce via liquidated damages where appropriate
  • Establish minimum 5% prime contract and 5% subcontract award goals for SDBs where feasible
  • Maintain government-wide small business goal of not less than 23% of federal prime contracts
  • Ensure OSDBUS Directors report directly to agency heads
  • Submit long-term implementation plans to OMB within 90 days
  • Annual assessment due April 30 each year on utilization efforts
  • SBA semi-annual evaluation of achievement using FPDS
  • Make procurement goals and amounts publicly available on Internet
  • Aggressive minority participation in federal advertising procurements with fair market rate payment
  • CIOs coordinate with procurement for IT/Telecom participation

Who is ordered

Timeline

Immediate

  • Policy declaration requiring nondiscrimination and affirmative action in federal procurement
  • Agency heads must designate implementation leads

Near term (90d)

  • Agencies must submit long-term comprehensive implementation plans to OMB
  • Commerce Secretary and SBA Administrator must complete feasibility study for awards program

Long term

  • Annual April 30 reporting on utilization efforts to President through OMB
  • Ongoing semi-annual SBA evaluation of government-wide goals using FPDS
  • Continuous implementation of procurement preference programs and mentoring relationships

Risks & tensions

  • Goals are framed as 'minimum' and 'where feasible,' creating implementation uncertainty; no enforcement mechanism if agencies fail to meet 5% targets
  • Section 10(b) explicitly denies private right of action, limiting judicial enforcement by affected businesses
  • Contract bundling review process may slow procurement but SBA determination is only 'due consideration,' not binding
  • IT and advertising procurement directives are aspirational ('aggressively seek') without specific metrics
  • Applicability to independent agencies is only a 'request,' weakening coverage
  • Clause 'to the extent permitted by law and consistent with Administration's priorities and appropriations' creates broad escape hatch
Executive Order 13170: Increasing Opportunities and Access for Disadvantaged Businesses · Executive Orders