SECTION 1. PURPOSE.

.01 This Order prescribes the functions of the Office of Small and Disadvantaged Business Utilization (OSDBU).

.02 This revision reflects the change in administrative reporting arrangements for the Office from the Director for Administrative Services to the Deputy Assistant Secretary for Administration.

SECTION 2. STATUS AND LINE OF AUTHORITY.

The OSDBU, a Departmental office, shall be headed by a Director who shall report and be responsible to the Deputy Secretary on matters of policy and legislative requirements; and to the Chief Financial Officer and Assistant Secretary for Administration and the Deputy Assistant Secretary for Administration on administrative matters (e.g., budget, personnel, space, etc.).

SECTION 3. STATUTORY AUTHORITY.

The OSDBU was established under authority of Section 15(K) of the Small Business Act (15 U.S.C. 644(k)) as enacted by Section 221 of Public Law 95-507. This section provides that the OSDBU shall be responsible for the implementation and execution of duties relating to the Department under Sections 8 and 15 of the Small Business Act. This would include labor surplus set aside procurement added to Section 15 of the Act by Section 502 of Public Law 95-89, the Small Business Innovation Development Act of 1982, and Section 3(h) of Public Law 97-219.

SECTION 4. FUNCTIONS.

.01 In the area of procurement, the OSDBU shall perform the following functions:

a. Act as focal point on matters concerning the use of small and disadvantaged businesses in Department contracts, and represent the Department in dealings with other agencies on those matters.

b. Participate in the development of and recommend for Secretarial approval appropriate small and disadvantaged business and labor surplus procurement goals.

c. Formulate, with the assistance of the Departmental Office of Acquisition Management, amendments to Departmental procurement regulations and ensure the implementation of these and other directives to achieve small and disadvantaged business and labor surplus procurement goals.

d. Ensure the appropriate and effective assignment and training of Small Business Technical Advisors (SBTAs) in the Department's procuring units.

e. Encourage the awarding of contracts to small and disadvantaged businesses by providing information and assistance to Departmental offices and operating units ("organization units") and encourage the use of the incentive awards system for outstanding accomplishments.

f. Review and evaluate the performance of organization units in accomplishing small and disadvantaged business procurement goals, and report to the Deputy Secretary.

g. Negotiate corrective action to goals or performance with appropriate Department officials based on periodic reports filed by SBTAs and complaints received.

h. Prepare the Secretary's annual report to the Small Business Administration (SBA) on the extent of participation by small and disadvantaged businesses in procurement contracts. Coordinate and contribute to Departmental positions on proposed legislation and government regulations in this area.

i. Perform the contract compliance function for the Department and coordinate these efforts with the Office of Federal Contract Compliance Programs, Department of Labor.

.02 In performing the functions prescribed in paragraph .01 above, the Director shall have the specific authority to:

a. Exercise counterpart clearance on the hiring and promotion of all SBTAs.

b. Provide technical evaluations of the work of the SBTAs to line supervisors that will be incorporated in the advisors' annual personnel appraisals.

c. Obtain immediate notification of the decisions regarding method of procurement (e.g., Section 8(a), set aside, or unrestricted) made on each contract request throughout the Department; and recommend and negotiate alternatives, or appeal such decisions, to the Assistant Secretary for Administration.

d. Intervene at any level in an organization unit (procuring or program area) to negotiate or recommend appropriate procurement action. Appeal to the Assistant Secretary for Administration when internal disputes arise or when the Director determines that the unit is not providing adequate opportunity to small and disadvantaged businesses.

e. Exercise the option to advocate or recommend a specific position in the event that an organization unit head, a procurement unit head (within the organization unit), or the Director makes an appeal to the Deputy Assistant Secretary for Administration.

f. Take a position favoring or opposing an internal appeal, and support that position before the Deputy Assistant Secretary for Administration, in the event that a procuring official's decision not to place a procurement with SBA (pursuant to Section 15(a)), is appealed by the SBA.

.03 In the area of grants and cooperative agreements, OSDBU shall perform, in consultation with the Departmental Office of Finance and Federal Assistance as appropriate, the following functions in accordance with the Small Business Innovation Development Act:

a. Act as the Departmental focal point on matters concerning use of minority businesses in Departmental grants and cooperative agreements.

b. Establish uniform Departmental policy and goals, in cooperation with organization units, for using small and/or minority businesses as recipients of grants and cooperative agreements.

c. Designate, in conjunction with appropriate organization units, a Minority Business Coordinator who will be responsible on a daily basis for promotion and inclusion of minority businesses in the administration of grants and cooperative agreements.

d. Encourage awards to minority businesses by providing assistance and information to organization units.

e. Review and evaluate the performance of organization units in accomplishing minority business goals in the area of grants and cooperative agreements, and report to the Deputy Secretary.

f. Coordinate and contribute to Departmental positions on proposed legislation and government regulations in this area.

SECTION 6. EFFECT ON OTHER ORDERS.

This Order supersedes Department Organization Order 15-9, dated August 16, 1984.

Signed by: Secretary of Commerce