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 (In 1994, the Federal Acquisitions Streamlining Act repealed the set-aside provisions of the LSA Program, and it now operates only in very limited circumstances.)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.