DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 13

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Legislation

The decision does not ban set-aside programs outright, but it does mean that each set-aside program must
be able to prove that it is based on a specific case of past discrimination.
The Supreme Court turned the Adarand case back to the lower court, and the lower court must now use the
“strict scrutiny” standard to decide whether the Department of Transportation’s subcontracting program will
stand.
NOTE: This case has had major impact on all race and gender-based programs. Several cases have been heard
in the lower courts, with most decisions favoring those challenging race-based purchasing programs. The
Department of Justice was asked to develop a Rule which would address discrimination in various industries.
Public Law 104-106, Federal Acquisition Reform Act of 1996 - included in 1996 Department of Defense
Authorization Bill
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This bill holds major impact on federal procurement, as its provisions cover all federal agencies. Commonly matio
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known as “FARA” or the “Clinger-Cohen Act,” its key features are:
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• Simplifies procedures for buying commercial items up to a threshold of $5 million;
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• Eliminates some government-unique terms and conditions for the purchase of commercial off-the-shelf
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items;
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• Permits government contracting officers to use two-phase competition on certain construction contracts;
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• Reduces litigation on information technology purchases, as bid protest hearingsivare consolidated at GAO.
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• Redirects information technology procurement into the normal budgeting nfo@
process (eliminates GSA
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approval requirements).
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NOTE: Regulations governing the above will now be formulated, and much of the bill’s impact on small/
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minority businesses will depend on the wording of the regulations. Of particular concern to small/minority
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business is the bill’s allowing agencies to bypass the full and open competition standard when it is not
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deemed “feasible or appropriate.”
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Public Law 106-50 – Veterans Business Outreach Program (VBOP)
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Authorized by section 708 of the Small Business Reauthorization Act of 1997. VBOP is one of SBA’s new
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initiatives to expand outreach to veterans. Through VBOP, SBA awarded grants to set up four Veteran’s
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Business Outreach Centers (VBOCs) in different regions to provide business training, counseling, technical
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assistance, and mentorship oto service-disabled veterans.
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Under the VeteransbEntrepreneurship and Small Business Development Act of 1999, enacted on August 16,
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1999 (Public Law 106-50), SBA also plans to enter into agreements with the Service Corps of Retired Execudo
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tives (SCORE) and the Small Business Development Centers (SBDCs), to further enhance delivery of technical
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assistance and business training to veterans, including service-disabled veterans.
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Under this new legislation, the SBA will develop distance-learning tools and training for veterans and conduct studies on veteran-owned small businesses. The SBA currently is designing online classrooms tailored
to the entrepreneurial needs of veterans as part of the agency’s small business classroom distance learning
initiative at www.sba.gov/training/
The agency will also assist veterans in finding procurement opportunities with federal, state, and local
agencies. Veteran-owned small businesses currently could register in PRO-Net, SBA’s procurement database.
PRO-Net provides a search engine that allows federal contracting officers and prime contractors to search for
veteran- owned small businesses. Public Law 106-50 mandates a 3 percent federal procurement goal for
service-disabled veteran-owned small businesses.
Public Law 109-461 (Veterans Benefits, Health Care, and Information Technology Act of 2006)
Signed into law by President Bush on December 22, 2006. This law provides VA with unique authority to
conduct set-aside and sole source procurements with small businesses owned and operated by veterans.

2012 Supplier Diversity Information Resource Guide

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