    RECORD TYPE: PRESIDENTIAL  (TRP NOTES MAIL)

    CREATOR: Kumiki S. Gibson ( CN=Kumiki S. Gibson/O=OVP [ OVP ] )

    CREATION DATE/TIME:11-OCT-1995 16:26:29.00

    SUBJECT:  HERE IS THE BLURB FOR LUNCH MEMO; DISK IS ON ITS WAY DOWN TO YOU

    TO: Debbie B Bengtson ( CN=Debbie B Bengtson/O=OVP [ OVP ] )
    READ:UNKNOWN

    CC: Jack M. Quinn ( CN=Jack M. Quinn/O=OVP [ OVP ] )
    READ:UNKNOWN

    TEXT:
    EXECUTIVE ORDER ON EMPOWERMENT CONTRACTING

    	You should advise the President that he will soon be receiving the

    proposed Executive Order on Empowerment Contracting, which he requested

    during his speech on affirmative action.  Specifically, this Order directs

    the Secretary of Commerce, in consultation with other agencies, to ensure

    that agencies grant a price or evaluation preference (not a set-aside) to

    businesses that locate in distressed communities or hire a large

    percentage of residents from such communities.

    	You should advise the President that the likely impact of this

    Order is unclear.  Because of limitations in the procurement laws, many

    agencies will not be able to grant price preferences.  (Agencies, however,

    will have considerable flexibility in granting evaluation preferences.)

    In addition, although the Federal government has operated a place-based

    contracting program (i.e., the Labor Surplus Area Program), such an

    approach has never been evaluated.  (In 1994, the Federal Acquisitions

    Streamlining Act repealed the set-aside provisions of the LSA Program, and

    it now operates only in very limited circumstances.)

    	You should nonetheless urge the President to sign the Executive

    Order:  (1) the President promised to implement such a program in his

    affirmative action speech and many are anxious for his leadership in this

    area; (2) supporters of the LSA Program would like the Administration to

    do more in the context of place-based contracting; and (3) many agree that

    our approach (which will be monitored and evaluated) is likely to have

    some positive impact on distressed communities and their residents.