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102630 1 (1977-06-01)

handle is hein.gao/gaobadxup0001 and id is 1 raw text is: DOCUMENT RESUME 02630 - [A1712687] Department of Defensa Minority Business Enterprise Program. June 1, 1977. 9 pp. Testimony before the House Committee on Small Business: Minority Enterprise and Ceneral Oversight Subcommittee; by Richard W. Gutmann, Director, Procurement and Systems Acquisition Div. Issue Area: Non-Discrimination and Equal Opportunity Programs: Federal lgencies' Achievement of Eqlual Opportunity and Nondiscrimination Objectives (1010); Federal Procurement of C3o~s and Services (1900) . Contact: Procurement and Systems Acquisition Div. Budget Function: National Defense: Department of Defense - Procurerent & Contracts (058). Organizatior Concerned: Department of Defense; Office of Minority Business Enterpris-e. Congressional Relevance: House Committee on Small Business: Minority Enterprise and General Oversight Subcommittee. Auth.-rity: Executive Order 11458. Executive Order 11625. The Minority Business Enterprise (MBE) Subcontracting Program of the Departhent of Defense (DOD) is an outgrowth of a national commitment and executive crders to incLease minority involvement in Federal procurement programs. After a review, 3A3 concluded that DOD's imnlementrtion )f the program was inadequate in three respects: (1) thf contract clause to be included in selected prime contracts o-erlooked certain key aspects and requirem3nts necessary to assure the probability of prograa success; (2) the Drrgram was not being adequately monitored and had inadequ.'te standards for judging the prime contractors' effectiveness; and (3) DOD contracting officers were not qiven guidance on inclusion of the MBE subcontract clause. Minority firms interviewed by GAO reported efforts to solicit lusiness and to seek aid from the Small Business Administration and other organizations, but they experience! difficulty b:ealing into established markets. Minority businessmen made recommendations for program improvements, some found to be feasible, but some going beyond the intent of the Executive order by implying a quota system. GAO recommended that DOD should revise the current coatract clause to provide contractors with more specific direction on increasing minority involvement by: including objectives for prime contractors; defining the role of corporate officials; requiring contractors' records on so!icitations and awards; providing guidance for determining contractors required to implement the program; and proviling for nore effective monitoring. (BTV)