DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 10

Legislation
IV

COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN

Other individuals may qualify as socially and economically disadvantaged under procedures which have
been established by SBA using the following guidelines:
• Socially disadvantaged individuals are those who have been subject to racial or ethnic prejudice or
culture bias because of their identity as a group without regard to their individual qualities.
• Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to
compete in the free enterprise system has been impaired due to diminished capital and credit
opportunities as compared to others in the same business area who are not socially disadvantaged.
This law also contains provisions related to labor surplus areas, the small business set-aside
program, preference goals, etc.

The law requires each federal agency with contracting authority to have an Office of Small and
Disadvantaged Business Utilization (OSDBU). (See the list of OSDBU for locations/phone numbers.)
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Public Law 97-219 - Small Business Innovation Research (SBIR) Program (1982)
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The SBIR Program attempts to stimulate SB/SDB technological innovation. Under this program small, highin
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tech firms submit proposals for research projects in various research and development areas as outlined by for mo
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individual federal agencies.
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Public Law 99-661, Section 1207 (National Defense Authorization Act of 1987)
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Establishes for DOD a three-year goal that 5% of procurement dollars go to small disadvantaged businesses
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(SDBs) and Historically Black Colleges and Universities (HBCUs), Minority Institutions (MI).DProvisions include:
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• “To the extent practicable,” each contractor demonstrate full compliance with thet intent of the law.
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• Contractors may pay no more than fair market price (FMP), which may exceedc 10% of the market price.
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• Contractors may be criminally prosecuted for acts of misrepresentation.. Pl
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• Contractors must report utilization for all separate groups that make , up the protected class of minorities.
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This legislation subsequently was permanently codified (Section 2323 of Title 10, United States,
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Code) under Public Law 102-484.
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Public Law 100-180, Section 806 (National DefensefoAuthorization Act of 1988)
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This legislation required that DOD maintain ivers level of contract awards/dollars for small business set-asides
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and 8(a) firms. It precludes the use of rSDB set-asides when the requirement was previously acquired under
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small business set-asides or 8(a). ty oth
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y a Law 102-564, The Small Business R&D Enhancement Act of 1992
S. 2941, which is part of Public
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This legislation reauthorizes the Small Business Innovation Research Program (SBIR) and increases the
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percentage of federal research funds which are set aside for small businesses. From a current 1.25%
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dedication ofbefunds for innovative research projects, the statute calls for not less than 2% in FY 95-96 and
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2.5% in FYno and years following. (For more information, contact one of the Federal agency SBIR programs).
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Public Law 100-442 (Amending Indian Financing Act of 1974)
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Authorizes payment of a 5% incentive of the subcontract to prime contractors for subcontracting with Native
American firms.
Public Law 100-533 - Women’s Business Ownership Act of 1988
Four primary areas covered in this legislation are:
• Demonstration projects up to $10 million over a 3-year period to fund marketing, financial, and
management assistance to WBEs.
• Access to capital (incentive for SBA Certified Loan Program lenders)
• Creates National Women’s Business Council
• Calls for compilation of statistical data.

SECTION 1

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2012 Supplier Diversity Information Resource Guide

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