entrance into the program. The Task Force opposed this legislation because it would create a two-tier system of ligibility which would place nonminority women in an unfair position. It believed that case-by-case determination of individual eligibility was more equitable, and recommended in a letter to the House Small Business Committee that this procedure remain, and that SBA develop strengthened eligibility criteria to avoid abuse. However, the Task Force noted that, should a two-tier system of eligibility be established, nonminority women belonged in the first tier because of their social or economic disadvantage, rooted in sex discrimination. The Task Force thought that sex discrimination, overt or subtle, results in business impediments that are not generally common to all small-business owners. Therefore, both minority and nonminority women should be allowed entrance into 8(a) programs on a case-by-case basis and requisite resources should be made available to make this program a viable business development tool. An 8(a) Review Board, established to recommend means for making the program more effective, noted that the program is of particular importance to young and newlyformed firms, since sole-source contracts can play a major role in helping the firms to become competitive. Although the 8(a) program was originally created as a business-development aid, it has been fraught with problems. Among them: • There are no clear criteria for acceptance into the program. • The program has been abused by people who are not eligible, such as "minorityowned" companies which are, in fact, "fronts" for nonminority partners who want government contracts. • Fewer 8(a) contractors have "graduated" out of the program than was originally intended. Cumulative figures show that from 1968 to 1977, with 3,726 firms in the program, only 149 or 3.9% have been graduated (31). Special Preferential Programs Based on Statute or Executive Order. There are two possibilities of creating a national policy to aid women business owners. One is through legislation to direct agencies to create a woman-owned business enterprise thrust; the other is through an Executive Order by the President. Since Executive Orders and legislation have previously created business enterprise programs within federal agencies, they were of particular interest to the Task Force. The history of the current minority business enterprise thrust rests on Executive Order 11458, dated March 5, 1969. It prescribed arrangements for developing and coordinating a national program for minority business enterprise. Executive Order 11625, dated October 31, 1971, superseded and expanded E.O. 11458. In it, the President ordered the Secretary of Commerce to convene meetings of heads of departments and agencies, or their designees, whose programs and activities might affect or contribute to the purpose of the Executive Order. The Order charged the Secretary with coordinating government plans, programs and operations for strengthening minority business enterprise. The Interagency Council for Minority Business Enterprise, established under Executive Order 11458, has been a key vehicle for achieving these purposes. Today, this Council has the authority to set agency goals for minority business expenditures, establish a minority business profile and data bank, assist minority economic development, and provide for minority bank deposits. Recently, President Carter reemphasized the administration's commitment to minority business enterprise by asking federal agencies to double the amount of procurement going to minority-owned firms. In addition, several laws have been passed which funnel procurement and grant funds to targeted groups. For example, the Local Public Works Act allocates approximately 10 percent of the grant funds distributed under its program to minority vendors (32). Of $4 billion allocated to the program, $600 million has been earmarked for racial minorities in two phases of grants to states and localities. Pending legislation on the Urban Policy Plan wiil target $3 billion, over a three-year period, for labor-intensive "soft" public works in target areas of unemployment. Probably, this legislation also will require some setasides for minority business (33). However, while historically there has been a federal policy of aiding "socially or economically disadvantaged" groups, there has been little or no effort to aid women specifically. Moreover, there is confusion within the government as to whether women should be included in existing minority business enterpris⚫ programs. It is for this reason that the Task Force strongly believes that federal policy must be clarified, and a coordinated policy be implemented for woman-owned business enterprise. The goal of this policy should be the equitable participation of women business owners in the federal procurement market and in federal business assistance programs. Recognizing that an Executive Order is the most expedient route for achieving a national policy that would permit women business owners to enter the the mainstream of our economy, the Task Force recommends that the President issue such an order, specifically charging federal agencies to allocate resources and develop programs to meet the needs of women business owners. In analyzing the existing programs and the needs of women business owners, the Task Force first thought of recommending an amendment to Executive Order 11625 which established the minority business enterprise policy. However, after further deliberation, the Task Force decided that such an amendment would not be in the best interests of either women or minorities. Minority business enterprise programs, although they have a history of some ten years duration, are still primarily fledgling programs. They have had difficulty even meeting the needs of the minority community (34) and of minority women in particular. The Task Force believes that in the long run the needs of all women would not be adequately served by making them a part of programs designed primarily to meet minority needs and which have fixed resources. Thus, while the Task Force felt that programs designed to aid socially and/or economically disadvantaged groups should specifically include women, a more balanced approach to meeting the unique needs of women business owners was to ask the President to issue a new Executive Order aimed at the development of a coordinated affirmative action policy for all women's business enterprise. This would permit the needs of both minority and women business owners to be met without undue confusion or diminution of the resources of either group. Also, it hopes that this action would create a positive coalition of minority groups and women and provide the basis for future affirmative action programs to maximize available federal resources for both groups. Additional Markets in State, Local Government and Private Industry. The Task Force recognized that the role of the federal government in aiding the growth of new and fledgling businesses is limited. A great deal can also be done done by state and and local governments, and private private industry, to mainstream this underutilized economic resource. Although the mandate of the Task Force was to investigate the federal marketplace, purchases made by state and local governments represent an equally attractive resource to women business owners. Approximately 20 to 25 percent of state and local expenditures, estimated to total $120 billion annually in the 50 states, go to local vendors (35). Women and minorities, however, have fared very poorly in receiving an equitable share of this market. The 1975 Civil Rights Commission survey showed that only 3 of 11 jurisdictions awarded more than 1 percent of contractable funds to minorities and women. The average for all jurisdictions was 0.6 percent to minorities and .04 percent to women (36). Therefore, in recognition of the role state and local governments could play in correcting this situation, the Task Force recommends that this issue be addressed in the future. SUMMARY Both as the largest single buyer of supplies and services in America and because of its stated policy of aiding disadvantaged groups in achieving an equitable economic position, the federal procurement market offers |