99-20126. Minority and Women Outreach ProgramContracting  

  • [Federal Register Volume 64, Number 151 (Friday, August 6, 1999)]
    [Proposed Rules]
    [Pages 42862-42866]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-20126]
    
    
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    FEDERAL DEPOSIT INSURANCE CORPORATION
    
    12 CFR Part 361
    
    RIN 3064-AC21
    
    
    Minority and Women Outreach Program--Contracting
    
    AGENCY: Federal Deposit Insurance Corporation.
    
    ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: The Board of Directors of the Federal Deposit Insurance 
    Corporation (FDIC) is proposing to amend its regulation establishing an 
    outreach program for minority- and women-owned businesses and 
    announcing its intention to utilize that portion of the Federal 
    Affirmative Action Contracting Program, set forth in the Federal 
    Acquisition Regulations, providing contracting benefits to Small 
    Disadvantaged Businesses. The FDIC will no longer grant price 
    evaluation adjustments based solely on race and gender criteria. The 
    FDIC will, however, continue its outreach programs for minorities, 
    women, and individuals with disabilities and entities owned by them.
    
    DATES: Written comments must be received on or before October 5, 1999.
    
    ADDRESSES: All written comments should be addressed to Robert E. 
    Feldman, Executive Secretary, Attention: Comments/OES, Federal Deposit 
    Insurance Corporation, 550 17th Street NW., Washington, DC 20429. 
    Comments may be hand delivered to the guard station at the rear of the 
    550 17th Street Building (located on F Street), between the hours of 
    7:00 a.m. and 5:00 p.m. on business days. Comments may also be faxed: 
    (202) 898-3838 or submitted via Internet: [email protected] Comments 
    will be available for inspection and photocopying in the FDIC Public 
    Information Center, Room 100, 801 17th Street, NW., Washington, DC, 
    between 9:00 a.m. and 4:30 p.m. on business days.
    
    FOR FURTHER INFORMATION CONTACT: Martin Blumenthal, Counsel, Legal 
    Division, Corporate Operations Branch, Corporate Legal Issues Section, 
    Contracting Law Unit (202) 736-0756; David McDermott, Acquisition and 
    Corporate Services Branch, Division of Administration, (202) 942-3434; 
    Rita Wiles Ross, Counsel, Legal Division, Corporate Operations Branch, 
    Legal Operations Section, Outside Counsel Unit, (202) 736-3072; or 
    Judith M. Wood, Chief, Diversity Branch, Office of Diversity and 
    Economic Opportunity, (202) 416-2456.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
    FDIC Minority- and Women-Owned Business Outreach Program
    
        In 1989, with enactment of the Financial Institutions Reform, 
    Recovery and Enforcement Act (FIRREA), Congress mandated that the FDIC 
    augment its program for contracting activities by prescribing
    
    ``regulations to establish and oversee minority outreach program[s] 
    * * * to ensure inclusion, to the maximum extent possible, of 
    minorities and women, and entities owned by minorities and women, * 
    * * in all contracts entered into by the agency * * *'' 12 USC 
    1833e(c).
    
        In response, the FDIC adopted a regulation that obligates and 
    requires the Corporation to engage in outreach efforts to identify and 
    register minority-and women-owned businesses (MWOBs) that can provide 
    the goods and services utilized by the FDIC. 12 CFR 361.6(b); Minority 
    and Women Outreach Program--Contracting, 57 FR 15004 (April 24, 1992). 
    In addition, to ensure that MWOBs are ``being included in each 
    solicitation, the solicitation process will include: * * * (3) Allowing 
    qualified MWOBs a 3% price advantage and additional technical 
    consideration for competitively bid services; * * *'' 12 CFR 
    361.8(b)(3).\1\
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        \1\ The FDIC's Division of Administration has issued an 
    Acquisition Policy Manual (APM) establishing policies and procedures 
    in contracting for non-legal services. The APM provides for the 
    application of the 3% price evaluation adjustment for awards of 
    $50,000 or more. APM at Chapter 6, Sec. D.6. There is no provision 
    for the award of ``additional technical consideration(s).''
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        In soliciting and awarding contracts for legal services, the Legal 
    Division ``actively seeks to engage firms owned by minorities and 
    women, both directly and in association with other firms.'' 12 CFR 
    361.11(c). However, there is no price evaluation adjustment or other 
    technical considerations available in contracting for legal services.
        The Supreme Court has held that all racial classifications, whether 
    imposed by federal, state, or local governments, must be analyzed by a 
    reviewing court under strict scrutiny. Adarand Constructors, Inc. v. 
    Pena, 515 U.S. 200, 227; 115 S.Ct. 2097, 2113 (1995). To be sustained, 
    federal racial classifications, like those of a State, must serve a 
    compelling governmental interest and must be narrowly tailored to 
    further that interest. 515 U.S. at 229. In this context, a compelling 
    governmental interest may include past discriminatory barriers, whether 
    such barriers were a result of intentional acts of the federal 
    government or passive complicity in the acts of discrimination by the 
    private sector. Richmond v. J.A. Croson Co., 488 U.S. 469, 493 (1989). 
    These decisions relate to programs that confer a benefit on the basis 
    of race. They do not address outreach efforts where an agency only 
    seeks to increase the pool of available MWOB contractors.
        There does not appear to be a finding of discrimination underlying 
    12 U.S.C. 1833e. The FDIC does not believe such a finding is necessary 
    to sustain an outreach program, because, unlike a program that awards 
    financial benefits to contract with MWOBs, a pure outreach program has 
    ``no winners or losers.'' It only increases the potential pool of MWOB 
    contractors, and it does not affect the award process or favor one 
    group of contractors over another based on considerations of race, 
    ethnicity, or gender.
        However, as noted above, the FDIC program has gone beyond the pure 
    outreach mandate of section 1833e, and through the regulation, applies 
    a price evaluation adjustment to awards to MWOB contractors for non-
    legal services. To pass strict scrutiny, such a program requires 
    findings of past discrimination establishing a compelling governmental 
    interest, Richmond v. J.A. Croson Co., 488 U.S. 469, 493 (1989), but 
    there was no finding of past discrimination in the rulemaking adopting 
    part 361. Thus, to the extent it included a price evaluation
    
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    adjustment for MWOB firms, the FDIC program could well fail the first 
    half of the Adarand test.
        Even assuming, arguendo, that there is an adequate compelling 
    governmental interest, the next phase of the Adarand test requires 
    consideration of whether the benefit conferred is sufficiently narrowly 
    drawn to satisfy the constitutional standard. The Court lists five 
    factors that may be relevant to the determination of whether an 
    affirmative action remedy is narrowly drawn to achieve its goal. They 
    are: ``(i) the efficacy of alternative remedies; (ii) the planned 
    duration of the remedy; (iii) the relationship between the percentage 
    of minority group members in the relevant population or workforce; (iv) 
    the availability of waiver provisions if the hiring plan could not be 
    met; and (v) the effect of the remedy upon innocent third parties.'' 
    United States v. Paradise, 480 U.S. 149, 187 (1986).
        Applying these standards to the 3% price evaluation adjustment 
    established in the regulation, it does not appear that alternative 
    remedies have been attempted; there is no time limit on the price 
    evaluation adjustment; the price evaluation adjustment is unrelated to 
    the percentage of minority firms in the industry or area; the price 
    evaluation adjustment is automatically awarded to all eligible firms in 
    all circumstances; and the remedy may well result in the loss of a 
    potential contract by non-MWOB firms despite more cost-effective bids. 
    Thus, the 3% price evaluation adjustment may not be sufficiently narrow 
    to satisfy the constitutional standard.
    
    Affirmative Action in Federal Procurement
    
        In 1996, the Department of Justice invited public comments on a 
    system designed to reform affirmative action in federal procurement in 
    response to Adarand. 61 FR 26042, May 23, 1996. Continuing in that 
    vein, in 1998, the Department of Defense, the General Services 
    Administration, and the National Aeronautics and Space Administration 
    published a revision to the Federal Acquisition Regulations (FAR) 
    implementing a new program of affirmative action in federal 
    procurement. 63 FR 52426, September 30, 1998.
        In this program, each year, the Department of Commerce will make a 
    determination as to which industries demonstrate the results of past 
    discrimination and are thereby eligible for a benefit in federal 
    contracting. The Department of Commerce will also determine the size of 
    a price evaluation adjustment, not to exceed 10%, to be available in 
    those industries. In the first year of the program, eligible industries 
    that are generally used by FDIC include accounting firms, asset 
    managers, information technology contractors, office services, and 
    building services. The amount of the price evaluation adjustment for 
    1999 is 10%.
        The price evaluation adjustment is available to firms certified as 
    Small Disadvantaged Businesses (SDBs) by the Small Business 
    Administration (SBA). An SDB is a small business firm that is at least 
    51% owned by individuals who are both socially and economically 
    disadvantaged. Socially disadvantaged individuals include Black 
    Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent 
    Asian Americans, and Native Americans as a class, as well as other 
    groups that the SBA may from time to time designate, and individuals 
    that can prove by a preponderance of the evidence previous 
    discrimination on a case-by-case basis. Economically disadvantaged 
    individuals have an individual net worth of less than $750,000.\2\ The 
    standard for determining whether a firm qualifies as ``small'' varies 
    between industry classifications and may be based on revenue or number 
    of employees.
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        \2\ The $750,000 excludes individual equity in a primary 
    residence and the value of the individual's ownership interest in 
    the firm seeking SDB status.
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        The price evaluation adjustment of 10% is available to qualified 
    SDBs bidding in competitive procurements over $100,000 for services 
    within the eligible industries as determined by the Department of 
    Commerce.
        In lieu of the price evaluation adjustment, an SDB may take 
    advantage of an SDB participation factor, if the contracting agency 
    includes such a factor in the procurement. An SDB participation factor 
    may be offered at the discretion of the contracting agency in 
    competitive procurements over $500,000, or $1,000,000 for construction 
    contracts. The contracting agency assigns a value to this factor.\3\ A 
    non-SDB may take advantage of the factor by proposing to partner with 
    an SDB or to use SDB subcontractors. An SDB can also take advantage of 
    this factor as the prime contractor. However, the SDB would only be 
    eligible for the participation factor if it first waives the price 
    evaluation adjustment. Utilization of SDBs as subcontractors may also 
    be encouraged, at the discretion of the contracting agency, by offering 
    prime contractors a financial incentive to exceed the proposed SDB 
    subcontracting. An additional payment can be authorized where the prime 
    contractor promises a particular monetary target of SDB subcontracting 
    and its actual performance exceeds that promise. The monetary incentive 
    can be up to 10% of the SDB subcontracting dollars in excess of the 
    target amount.
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        \3\ Only SDB participation within eligible industries may be 
    considered under this factor.
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    II. Utilization of SDB Program
    
        It is unlikely that the FDIC MWOB price evaluation adjustment, as 
    implemented, would pass the Constitutional tests enunciated by the 
    Supreme Court in Adarand. There has been no articulation of a 
    compelling governmental interest as required by that case, and it does 
    not appear that the benefit conferred by the program is sufficiently 
    narrowly drawn to survive judicial scrutiny. On the other hand, the FAR 
    program appears to satisfy the Adarand tests. The benefits are only 
    available in industries where there is a compelling governmental 
    interest based on findings of past discrimination, and the 10% price 
    evaluation adjustment is related to the degree of under-representation 
    within the industry. Moreover, the benefit is not solely available on 
    the basis of race or ethnicity. Rather, to qualify, small firms must 
    also be owned and operated by socially and economically disadvantaged 
    individuals.
        Although the FDIC is not subject to the FAR, the FDIC believes that 
    the FAR's affirmative action contracting program provides a 
    constitutionally sustainable means of enhancing the opportunities for 
    SDBs in FDIC contracting. Accordingly, the FDIC intends to voluntarily 
    utilize that program in lieu of the constitutionally questionable price 
    evaluation adjustments based on race and gender that have been awarded 
    in the past. With this in mind, the FDIC solicits public comment on 
    whether the FDIC's proposed regulation should specifically reference 
    the regulations that implement the federal government's SDB procurement 
    program, in addition to such references in the FDIC's acquisition 
    policies and procedures. We will, of course, continue to maintain an 
    Outreach Program to ensure, to the maximum extent possible, that 
    minorities and women and entities owned by minorities and women are 
    given the opportunity to fully participate in contracts to provide both 
    legal and other services. In addition, the FDIC will continue to follow 
    its policy of including individuals with disabilities in the Outreach 
    Program.
        The program, to be included in the FDIC Acquisition Policy Manual 
    (APM), will provide that, for goods and services
    
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    acquired under Formal Contracting Procedures, as defined in the APM, 
    generally involving expenditures of $100,000 or more, a price 
    evaluation adjustment will be available to technically qualified SDB 
    bidders in the following circumstances: (a) The bidder has been 
    certified as an SDB by the SBA under procedures set forth in 13 CFR 
    part 124; and (b) the Standard Industrial Classification (SIC) code for 
    the prime contract is one in which the Department of Commerce has 
    authorized the use of a preference. The eligible SICs and amount of the 
    price evaluation adjustment is established annually by the Department 
    of Commerce pursuant to 48 CFR 19.201(b).
        Moreover, solicitations issued under the Formal Contracting 
    Procedures involving awards of $500,000 or more ($1,000,000 for 
    construction contracts) may also include an evaluation factor for SDB 
    participation in the performance of the contract. The value to be 
    assigned this factor, if any, is determined by the contracting officer 
    on a contract-by-contract basis. The prime contract need not be in an 
    SIC code identified as authorized by the Department of Commerce for the 
    use of preferences, but only SDB participation in authorized SIC codes 
    would be considered in the evaluation of the participation factor. SDB 
    participation may be in the form of subcontracts, joint ventures or 
    teaming partners.\4\ Where the SDB is bidding as a prime contractor in 
    response to a solicitation that includes an SDB participation factor, 
    the SDB will not be eligible for the participation factor unless it 
    first waives its price evaluation adjustment.\5\
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        \4\ Any joint venture in which an SDB undertakes to perform a 
    portion of the work could qualify for consideration under the SDB 
    participation factor. The technical value assigned to such joint 
    ventures under the SDB participation factor would, of course, depend 
    on the proportion of the work to be performed by the SDB joint 
    venturer. In other circumstances, a joint venture may itself qualify 
    as an SDB under SBA regulations. Generally, for a joint venture to 
    qualify, the SDB participant must have at least a 51% ownership 
    share, perform 51% of the work, and the managing partner must be 
    from the SDB participant.
        \5\ In evaluating this factor, the contracting officer may 
    consider the specificity of the proposal, the enforceability of the 
    commitments, the complexity and variety of the work to be performed 
    by SDBs, the realism of the proposal, and the contractor's past 
    performance in complying with SDB participation goals.
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        Utilization of SDBs as subcontractors may also be encouraged, at 
    the FDIC's discretion, by offering prime contractors a financial 
    incentive to exceed the proposed SDB subcontracting. An additional 
    payment can be authorized where the prime contractor promises a 
    particular monetary target of SDB subcontracting and its actual 
    performance exceeds that promise. The monetary incentive can be up to 
    10% of the SDB subcontracting dollars in excess of the target amount.
        The FDIC will not certify SDBs. That process will be carried out by 
    the Small Business Administration under procedures established in the 
    SBA's regulations, 13 CFR part 124. SDBs responding to FDIC 
    solicitations are responsible for identifying themselves and certifying 
    their current status as an SDB. An SDB that has applied for but not yet 
    received SBA certification may be entitled to treatment as an SDB where 
    certification can be obtained before the contract is awarded. It is the 
    intention of the FDIC to enter into a memorandum of understanding with 
    the SBA, to establish procedures whereby the SBA will treat FDIC 
    contractors seeking SDB certification in the same manner as contractors 
    with FAR agencies that are similarly situated. However, if 
    certification cannot be obtained in a timely manner, the contract may 
    be awarded to another bidder.\6\
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        \6\ The FDIC will communicate with the SBA to ensure that FDIC 
    contractors seeking certification as SDBs are given the same 
    consideration as other contractors seeking similar certification. In 
    FAR contracting, the SBA has committed itself to expedited treatment 
    of certification applications where an award is pending, and if 
    certification is not granted within that fifteen-day period, the 
    contracting officer may make the award to the next best bidder.
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    III. Notice of Proposed Rule Making
    
        To facilitate the implementation of the policy enunciated above, we 
    propose to repeal the provisions of part 361 that confer a price 
    evaluation adjustment, 12 CFR 361.8(b)(3), as well as make other 
    conforming amendments to the regulations. The FDIC Office of Diversity 
    and Economic Opportunity (ODEO) will continue to have overall 
    responsibility for providing the FDIC with technical assistance and 
    guidance to facilitate the identification, registration and 
    solicitation of minority- and women-owned firms including minority- and 
    women-owned law firms (MWOLFs). ODEO is also responsible for the 
    Corporation's outreach efforts, such as:
        (1) Identifying MWOBs and MWOLFs that can provide legal or other 
    services to FDIC;
        (2) Conducting seminars, meetings, workshops and other various 
    functions to promote the identification of MWOBs and/or MWOLFs; and
        (3) Participating in conventions, seminars, meetings, workshops and 
    other functions to promote the identification and inclusion of MWOBs 
    and MWOLFs.
        Moreover, ODEO has specific responsibility for the Outreach Program 
    with respect to providers of non-legal services, and in addition to the 
    functions noted above, it will distribute information concerning the 
    FDIC program for outreach to minority- and women-owned businesses. 
    Generally, ODEO will work with contracting officials to ensure that 
    minority- and women-owned firms are included on FDIC solicitation 
    lists.
        ODEO will also collect information from each FDIC office and 
    division that performs contracting or outreach activities, on a 
    quarterly basis or upon request, including statistical information on 
    contract awards and solicitations by designated demographic categories 
    and related outreach activities. The FDIC will request and maintain 
    information on firms that have represented themselves as minority- or 
    women-owned for purposes of outreach efforts and statistical reporting.
        The Legal Division will perform outreach efforts targeted at 
    providers of legal services. Generally, in addition to the functions 
    listed above, the Legal Division's National Outreach Coordinator will 
    require, at a minimum, quarterly submissions of statistical information 
    on legal fees and expenses paid to outside counsel by designated 
    demographic categories. FDIC will also encourage use of minority and 
    women lawyers within other firms and partnering of firms with MWOLFs. 
    Moreover, specific procedures and activities will be detailed in the 
    Legal Division's Outside Counsel Deskbook as well as the FDIC's web 
    site at: www.fdic.gov.
    
    Proposed Rule Changes
    
        In addition to a general editorial updating and simplification of 
    the rule, the FDIC proposes to amend Sec. 361.3 to remove unnecessary 
    definitions and to conform the definition of a minority to the SBA 
    definition. Section 361.4 would remain essentially unchanged.
        The FDIC proposes to remove Secs. 361.7-361.10 because the FDIC 
    will no longer grant price evaluation adjustments based on race and 
    gender criteria. Statistics based on self-certification of minorities 
    and women and entities owned by them will be used in conjunction with 
    survey efforts solely for monitoring the FDIC's outreach efforts.
        The FDIC seeks public comment on these proposed rule changes.
    
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    IV. Matters of Regulatory Procedure
    
    Paperwork Reduction Act
    
        In accordance with the Paperwork Reduction Act (44 U.S.C. 3501 et 
    seq.), the FDIC may not conduct or sponsor, and a person is not 
    required to respond to, a collection of information unless it displays 
    a currently valid Office of Management and Budget (OMB) control number. 
    Public comment and OMB approval has previously been obtained for an 
    FDIC collection of information titled ``Acquisition Services 
    Information Requirements'' which includes questions regarding 
    contractors' minority status. This information collection, approved 
    under OMB control number 3064-0072, is valid until August 31, 2001 and 
    will not be changed by this proposed rulemaking.
    
    Regulatory Flexibility Act
    
        The FDIC has determined that this proposed rule may have a 
    significant economic impact on a substantial number of small entities 
    within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et 
    seq., because the amendment repeals the 3% price evaluation adjustment 
    that FDIC rules had provided to minority- and women-owned businesses, 
    including small businesses. Accordingly, this initial regulatory 
    flexibility analysis has been prepared in accordance with 5 U.S.C. 603.
        In Adarand Constructors, Inc. v. Pena, 115 S.Ct. 2097 (1995), the 
    Supreme Court applied strict judicial scrutiny to federal affirmative 
    action programs that use racial or ethnic criteria as a basis for 
    decision making. The FDIC has determined that its price evaluation 
    adjustments for minority- and women-owned businesses may not pass the 
    Constitutional tests enunciated by the Supreme Court in Adarand. 
    Therefore, in this proposed rulemaking, the FDIC proposes to amend its 
    regulation to repeal that part of the regulation which provides a 3% 
    price evaluation adjustment to minority- and women-owned businesses 
    that bid on FDIC contracts. The FDIC believes that this approach is the 
    only readily apparent solution, because providing any price incentive 
    without meeting the criteria of the Court would be constitutionally 
    suspect.
        The Federal Acquisition Regulations (FAR), 63 FR 52426, (September 
    30, 1998), Reform of Affirmative Action in Federal Procurement, provide 
    a constitutionally sustainable means of enhancing opportunities for 
    small and disadvantaged businesses. The FDIC will voluntarily utilize 
    the FAR's affirmative action program.
        The objective of this proposal is to implement an outreach and 
    affirmative action procurement program consistent the Supreme Court's 
    decision in Adarand.
        The 3% price evaluation adjustment being proposed for repeal was 
    available to minority- and women-owned firms without regard to whether 
    such firms were also ``small'' businesses. 12 CFR 361.8(b)(3). In 1998, 
    the FDIC awarded 4,628 contracts, including 1,287 (28%) to minority- or 
    women-owned firms. However, the overwhelming majority of those 
    contracts were awarded without reference to the price evaluation 
    adjustment because the contract was for less than the $50,000 threshold 
    in the rule, or the purchase was made off the Federal Supply Schedule. 
    Of the 537 awards that were subject to the price evaluation adjustment, 
    75 (14%) went to minority- or women-owned firms. Based on a self-
    certification, the majority of those firms (about 62%) identified 
    themselves as small business concerns. The FDIC anticipates that there 
    will be no significant change in its contracting activity for 1999. 
    Thus, there may be some adverse effect on small entities that enjoyed 
    the price evaluation adjustment under the regulation, principally 
    small, women-owned firms. However, given the FDIC's record of contract 
    awards where the price evaluation adjustment was not applicable as well 
    as the benefits being conferred on Small Disadvantaged Businesses under 
    the federal affirmative action contracting program, it is anticipated 
    that the economic impact on small businesses may be substantially 
    attenuated.
        Repeal of regulations establishing a 3% price evaluation adjustment 
    will not impose any new paperwork burden. Public comment and Office of 
    Management and Budget approval has previously been obtained for an FDIC 
    collection of information titled ``Acquisition Services Information 
    Requirements'' which includes questions regarding contractors' 
    minority- and/or women-owned status. This information collection, 
    approved under OMB control number 3064-0072 is valid until August 31, 
    2001 and will not be changed by the rule changes proposed herein. This 
    rule does not duplicate, overlap, or conflict with any other federal 
    rules.
        Because the 3% price evaluation adjustment for minority- and women-
    owned businesses would likely fail the constitutionally mandated strict 
    scrutiny test established in the Adarand case, the only readily 
    apparent alternative is to repeal the regulation. Nevertheless, parties 
    may wish to address the impact of repeal on contract awards to small 
    businesses.
    
    Assessment of Impact of Federal Regulation on Families
    
        The FDIC has determined that this proposed amendment will not 
    affect family well-being within the meaning of section 654 of the 
    Treasury and General Government Appropriations Act of 1999 (Public Law 
    105-277).
    
    List of Subjects in 12 CFR Part 361
    
        Government contracts, Lawyers, Legal services, Minority businesses, 
    Reporting and recordkeeping requirements, Women businesses.
    
        For the reasons set forth above, the Board of Directors of the 
    Federal Deposit Insurance Corporation proposes to revise part 361 of 
    chapter III of title 12 of the Code of Federal Regulations as follows:
    
    PART 361--MINORITY AND WOMEN OUTREACH PROGRAM CONTRACTING
    
    Sec.
    361.1  Purpose.
    361.2  Policy.
    361.3  Definitions.
    361.4  Scope.
    361.5  Oversight and monitoring.
    361.6  Outreach.
    
        Authority: 12 U.S.C. 1833e.
    
    
    Sec. 361.1  Purpose.
    
        The purpose of the FDIC Minority and Women Outreach Program (MWOP) 
    is to ensure that minority- and women-owned businesses (MWOBs) are 
    given the opportunity to participate fully in all contracts entered 
    into by the FDIC.
    
    
    Sec. 361.2  Policy.
    
        It is the policy of the FDIC that minorities and women, and 
    businesses owned by them have the maximum practicable opportunity to 
    participate in contracts awarded by the FDIC.
    
    
    Sec. 361.3  Definitions.
    
        For purposes of this part:
        (a) The term ``minority'' has the same meaning as the term 
    ``socially disadvantaged individuals'' as set out in the Small Business 
    Administration regulations at 13 CFR 124.103(b).
        (b) Legal Services means all services provided by attorneys or law 
    firms (including services of support staff).
    
    
    Sec. 361.4  Scope.
    
        The FDIC outreach program applies to all contracts entered into by 
    the FDIC. The outreach program is incorporated into FDIC policies and 
    guidelines governing contracting and the retention of legal services.
    
    [[Page 42866]]
    
    Sec. 361.5  Oversight and monitoring.
    
        (a) The FDIC Office of Diversity and Economic Opportunity (ODEO) 
    has overall responsibility for nationwide outreach oversight, which 
    includes, but is not limited to, the monitoring, review and 
    interpretation of relevant regulations. In addition, the ODEO is 
    responsible for providing the FDIC with technical assistance and 
    guidance to facilitate the identification, registration, and 
    solicitation of minority- and women-owned businesses.
        (b) Each FDIC office that performs contracting or outreach 
    activities shall submit information to the ODEO on a quarterly basis, 
    or upon request. Quarterly submissions will include, at a minimum, 
    statistical information on contract awards and solicitations by 
    designated demographic categories.
    
    
    Sec. 361.6  Outreach.
    
        (a) Each office engaged in contracting with the private sector will 
    designate one or more MWOP coordinators. The coordinators will perform 
    outreach activities for MWOP and act as liaison between the FDIC and 
    the public on MWOP issues. On a quarterly basis, or as requested by the 
    ODEO, the coordinators will report to the ODEO on their implementation 
    of the outreach program.
        (b) Outreach includes the identification and registration of MWOBs 
    who can provide goods and services utilized by the FDIC. This includes 
    distributing information concerning the MWOP.
        (c) The identification of MWOBs and minority- and women-owned law 
    firms (MWOLFs) will primarily be accomplished by:
        (1) Obtaining various lists and directories of minority-and women-
    owned firms maintained by other federal, state, and local governmental 
    agencies;
        (2) Participating in conventions, seminars and professional 
    meetings comprised of, or attended predominately by, MWOBs and/or 
    MWOLFs;
        (3) Conducting seminars, meetings, workshops and other various 
    functions to promote the identification and registration of MWOBs and/
    or MWOLFs;
        (4) Placing MWOP promotional advertisements indicating 
    opportunities with FDIC in minority- and women-owned media; and
        (5) Monitoring to assure that FDIC staff interfacing with the 
    contracting community are knowledgeable of, and actively promoting, the 
    MWOP.
    
        By order of the Board of Directors.
    
        Dated at Washington, D.C., this 27th day of July 1999.
    
    Federal Deposit Insurance Corporation.
    Robert E. Feldman,
    Executive Secretary.
    [FR Doc. 99-20126 Filed 8-5-99; 8:45 am]
    BILLING CODE 6714-01-P
    
    
    

Document Information

Published:
08/06/1999
Department:
Federal Deposit Insurance Corporation
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
99-20126
Dates:
Written comments must be received on or before October 5, 1999.
Pages:
42862-42866 (5 pages)
RINs:
3064-AC21: Minority and Women Outreach Program--Contracting
RIN Links:
https://www.federalregister.gov/regulations/3064-AC21/minority-and-women-outreach-program-contracting
PDF File:
99-20126.pdf
CFR: (6)
12 CFR 361.1
12 CFR 361.2
12 CFR 361.3
12 CFR 361.4
12 CFR 361.5
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