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Socio-Economic Essay

In: Social Issues

Submitted By orichard87
Words 1019
Pages 5
Richard Smith

BMGT 482

Socioeconomics Essay

Professor Rick Schultz

March 31, 2013

How Socio-Economic Programs Impact Contracting

Small business plays an integral part of the US economy in job and wealth creation. The U.S. uses the procurement process to advance socioeconomic policies and objectives. As a result, the Federal government has a vested interest in ensuring the growth and health of small businesses by creating opportunities for these enterprises to get a slice of federal dollars through government contracts. Socioeconomic Programs originate from the Small Business Act created in 1953, which declares “it is the policy of the United States that small business concerns shall have the maximum practicable opportunity to participate in the performance of contracts let by any federal agency, including contracts and subcontracts for subsystems, assemblies, components, and related services for major systems” (SBA, 2011). In 1997, Congress established a 23% goal for the awarding of federal contracts to small businesses. These programs, which include incentive, set-aside, and preference programs, give small businesses and small businesses owned by special minority and disadvantaged groups’ advantages in bidding on federal contracts. The following five types of socioeconomic programs require agencies to limit competition on certain contracts to qualified small businesses so that small firms do not have to compete with large ones for the same contracts. Small Business Set-Asides are enterprises engaged in a for-profit business which is independently owned and operated and not dominant in its field of operation. The Federal Government is required to reserve a fair proportion of its total purchases and contracts for property and services for small business concerns. The Government does...

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