DoD Position Statement on Contracting for Small, Minority and Women-Owned Businesses

On September 9, 2011, the Department of Defense (DoD), General Services Administration (GSA), and NASA proposed various rule changes to the Federal Register which could have a significant negative impact on the competitive bidding opportunities of small, minority and women-owned businesses regarding federal government contracts. Specifically, the aforementioned agencies are seeking the removal of Federal Acquisition Regulations (FAR) subpart 19.11, 19.12 and 52.219-26 (Small Disadvantaged Business Participation Program – Incentive Subcontracting). The most potentially harmful rule change is the removal of FAR 52.219-26, which is the rule that sets the 5% minority-owned small business goal for DoD awards. Because the DoD handles roughly ¾ of all government procurements, this will make reaching the 5% goal for all federal agencies highly unlikely. Additionally, FAR subparts 19.11 and 19.12 are the only rules in the entire Federal Acquisition Regulations that are mechanisms for agencies to take active measures to ensure the 5% goal.

DoD Position Statement 10.18.2011