BOX 2-1
Small Business Reauthorization Act of 2000, Section 811(m), Excerpts

A. Section 8 of the Small Business Act (15 U.S.C. 637) is amended by adding at the end the following: 811(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS—

(1) DEFINITIONS—In this subsection, the following definitions apply:


(B) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY WOMEN—The term “small business concern owned and controlled by women” has the meaning given such term in section 3(n), except that ownership shall be determined without regard to any community property law. [see Box 2-2]

(2) AUTHORITY TO RESTRICT COMPETITION—In accordance with this subsection, a contracting officer may restrict competition for any contract for the procurement of goods or services by the Federal Government to small business concerns owned and controlled by women, if—

(A) each of the concerns is not less than 51 percent owned by 1 or more women who are economically disadvantaged…[italics added];

(B) the contracting officer has a reasonable expectation that 2 or more small business concerns owned and controlled by women will submit offers for the contract;

(C) the contract is for the procurement of goods or services with respect to an industry identified by the Administrator pursuant to paragraph (3); (D) the anticipated award price of the contract (including options) does not exceed—

(i) $5,000,000, in the case of a contract assigned to an industrial classification code for manufacturing; or

(ii) $3,000,000, in the case of all other contracts;

nesses, the SBA adopted regulations to require federal contracts to be set aside for firms owned by “socially and economically disadvantaged “ persons. All blacks, Hispanics, Asians, and Native Americans were determined to qualify as socially disadvantaged.

A 1978 amendment to the Small Business Act (P.L. 95-507) provided a statutory basis for the SBA program in Section 8(a), which allowed contracts of any size to be awarded on a sole-source basis to eligible firms. The amendment also required all federal agencies to establish goals for awarding contracts to small minority-owned businesses and to explain to Congress when the goals were not met. It reserved all awards under $25,000 for small businesses (unless no qualified small businesses were available to bid) and required agencies to establish goals for larger businesses to subcontract to small businesses. To carry out these provisions, the amendment estab-

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