IMPLEMENTATION OF PUBLIC LAW 95-507

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00957R000100080009-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: April 9, 2003
• Sequence Number: 9
• Publication Date: November 21, 1979
• Content Type: MEMO

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
OFFICE OF FEDERAL
PROCUREMENT POLICY
NOV 2 1 1979
MEMORANDUM TO HEADS OF DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Implementation of Public Law 95-507
Lr.~,+are R.-,
Public Law 95-507, amendments to the Small Business Act and the Small
Business Investment Act of 1958, was enacted October 24, 1978. Section
211 of the Act establishes a program for small and small socially and
economically disadvantaged subcontractors under Federal prime -contracts
of $500,000 or.more=($1;000,000 for construction). _
Off ice, of ..Federal.: Procurement PolicyTtegulatioris'implementing section- -
211 were published on April 20, 1979,-arid agency implementing regulations
were published in the Federal Procurement a%eguiatiorls (FPR) and the
Defense Acquisition Regulation (DAR) on July 2, 1979, and July 27, 1979,
respectively.
By letter dated October 19, 1979, in response to a Congressional inquiry,
the Comptroller General stated his opinion that contracts of the requisite
size awarded after the issuance of the FPR and DAR implementing
regulations should have contained the section 211 subcontracting program
provisions. He also stated his opinion that those contracts required to
contain the subcontracting provisions, but awarded without those
provisions, were "legally deficient." We believe that, although the
implementing regulations technically were effective on July 2 and July 27,
a reasonable time is required for their distribution and implementation
through the system. However, it seems that in some cases the time for
implementation has exceeded reasonable bounds. We understand that at
the present time there are a substantial number of contracts and contract
solicitations that should, but do not, contain required subcontracting
provisions.
We recognize that Public Law 95-507 is a complex and difficult law to
implement, and for that reason it merits special attention in each agency
to assist contracting officers to comply with implementing regulations.-
Accordingly, I request each agency to review its contracts and contract
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solicitations issued since the FPR and DAR implementing regulations were
published, and:
(1) amend all outstanding solicitations that should, but do not
contain the subcontracting provisions, to include those
provisions; and
(2) where feasible, modify all contracts awarded that should, but
do- not, contain the subcontracting provisions, where
modification -to include the subcontracting provisions would
lead to a greater utilization of small and small disadvantaged
subcontractors.
So that we may evaluate the extent of non-compliance with the
implementing regulations, and seek ways to avoid such problems in the
future, I also request that each agency provide this Office by.Janua15,
1980, a report of (1) the number and dollar amount of contracts and
solicitations requiring the subcontracting provisions that were issued
without the provisions; and (2) the number and dollar amount-of those
subsequently modified-to include the provisions. :;:?:.s.
Should you' have any questions -about. this matter, contact. Thomas F:
Williamson, Associate Administrator for Acquisition 1 aw, on 395-3455.
James D. Currie
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