The Congressional Black Caucus has confirmed the general language that covers minority businesses in the American Recovery and Reinvestment Act -- Section 1610 under Title XVI-- General Provisions -- Economic Stabilization Contracting.

House Majority Whip James E. Clyburn, working with Congresswoman Barbara Lee and Congresswoman Nydia Velázquez, was instrumental in including Section 1610 in the bill.

Section 1610 (page 493) of the bill reads:

               None of the funds appropriated or otherwise made available by this Act, for projects initiated after the effective date of this Act, may be used by an executive agency to enter into any Federal contract unless such contract is entered into in accordance with the Federal Property and administrative Services Act (41 U.S.C. 253) or Chapter 137 of Title 10, United States Code, and the Federal Acquisition Regulation, unless such contract is otherwise authorized by statute to be entered into without regard to the above referenced statutes.

                         -- 41 USC 253 -- governs all civil programs

                         -- 10 USC 137  -- governs all defense programs

                         -- Federal Acquisition Regulations (FAR) -- governs all contracting of the Federal government

FAR Subpart 19.2 – Policies -- Governs how all contracts of the Federal government must include, among others, small disadvantaged businesses.  It reads:

 19.201 General policy.

                (a) It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.  Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance. The Small Business Administration (SBA) counsels and assists small business concerns and assists contracting personnel to ensure that a fair proportion of contracts for supplies and services is placed with small business.

The Bottom Line

All contracts awarded under the American Recovery and Reinvestment Act must comply with existing federal and state laws regarding small and disadvantaged businesses.

Helpful Links

An Engine of Opportunity: A User’s Guide to Advocate for Transportation Equity in the 2009 Recovery Act

Source: Policy Link

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