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August 1983-September 1983 Miscellaneous Incoming (7)
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August 1983-September 1983 Miscellaneous Incoming (7)
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Records of the White House Office of the Deputy Chief of Staff (Reagan Administration)
Michael K. Deaver's Correspondence Files
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WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name Deaver, Michael: Files
Withdrawer
KDB
9/9/2011
File Folder
AUGUST 1983 - SEPTEMBER 1983 MISCELLANEOUS
FOIA
INCOMING (7)
F97-066/19
Box Number
14
COHEN, D
1
ID
Doc Type
Document Description
No of Doc Date Restrictions
Pages
118273
CABLE
151935 SEP 83 (W/NOTATIONS)
1 9/15/1983 B1
118274 MEMO
WILLIAM BROCK TO M. DEAVER RE
3 9/30/1983 B1
WILLIAMSBURG COMMITMENTS ON
TRADE
118275
REPORT
IMPLEMENTATION OF COMMITMENTS
9
ND
B1
ON TRADE FROM THE WILLIAMSBURG
SUMMIT MEETING
The above documents were not referred for declassification review at time of processing
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
Deaver, Michael: Files
KDB 9/9/2011
File Folder
FOIA
AUGUST 1983 - SEPTEMBER 1983 MISCELLANEOUS
F97-066/19
INCOMING (7)
COHEN, D
Box Number
14
1
ID
Document Type
No of Doc Date Restric-
Document Description
pages
tions
118273 CABLE
1 9/15/1983 B1
151935 SEP 83 (W/NOTATIONS)
The above documents were not referred for declassification review at time of processing
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
re
9/36
2661 Midvale Avenue
Los Angeles, CA 90064
September 23, 1983
Michael K. Deaver
Deputy Chief of Staff
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
Dear Mr. Deaver:
The recent remarks of Interior Secretary James G.
Watt before the U.S. Chamber of Commerce demonstrate once
again the seeming contempt this man holds not only for his
public office but the high moral principles of equality and
justice on which our republic is founded and to which the
citizenry and, I would hope, our elected and other officials
aspire. Mr. Watt is an embarrassment and I sincerely hope
that this latest verbal outrage will compel you to use the
power of your office to seek his immediate resignation.
Until this occurs, I will withhold all financial and
voting support from the Republican Party.
Very truly yours,
Joyce K. Jones
JKJ:nem
Mr. Deaver's copy
re c'd 9/26
John Hedstrom
814 E Illinois
Wheaton IL
60187
Friday/September 23 1983
President Ronald Reagan
White House
1600 Pennsylvania Avenue
NW
Washington DC
20500
Dear Mr. President:
Given the old adage that "a person is known by the company
he keeps", it would be in your own best self-interest (as well as in
the interest of the country) to get rid of the most insensitive buffoon
in your cabinet, Mr. James Watt, He has been aptly described by a
Republican senator as "trash". He has succeeded in losing whatever little
credibility he had left with Congress.
I've read that the two main reasons that you keep this joker
in your administration are: (1) he is good at squeezing campaign donations
out of the far right, and (2) he deflects criticism away from you. As to
the first point, he should be working for the Republican National
Committee and not for the government of all the people. As to the second
point, instead of deflecting criticism away from you, he is now acting
like a lightning rod in attracting criticism towards you. For as long as
you tolerate his atrocious behavior, it reflects very badly on yourself.
You may think his apology is enough. It isn't. It's instructive
that immediately following his latest slur against the minorities of this
country, Mr. Watt thought it was still an appropriate joke. Only when he
realized his job was in danger did he start groveling at your feet asking
for forgiveness. Mr. Watt is obviously morally bankrupt.
The main reason why you should ask for this joker's resignation
is because he is repulsive to the vast majority of Americans.
Thank you for your time. Best wishes on your work there.
Sincerely, John Hedstrom
John Hedstrom
CC: Mr. Ed Meese, Mr. Michael Deaver
CHARLES pashayan, JR.
COMMITTEE ON
INTERIOR AND INSULAR
17TH DISTRICT, CALIFORNIA
AFFAIRS
129 CANNON BUILDING
COMMITTEE ON
WASHINGTON, D.C. 20515
POST OFFICE AND CIVIL
(202) 225-3341
SERVICE
CONGRESS OF THE UNITED STATES
HOUSE OF REPRESENTATIVES
September 27, 1983
Mr. Michael K. Deaver
Assistant to the President and
Deputy Chief of Staff
The White House
Washington, D.C. 20500
Dear Mike:
At lunch last week Ken Vetter mentioned that a member of the
Traffic Safety Committee on which he serves would like to meet you
sometime when she is in Washington. She is the National Committee-
woman from Minnesota.
She is:
Ms. Evie Keegan
Setup.
5501 Kellogg South
Ednia, Minnesota 55424
Meeting
(612) 926-9748
I am also enclosing an article from the Los Angeles TIMES Yes
which may bring back memories.
Sincerely yours,
Lo
Bill
Bill Deaver
CC: Mr. Ken Vetter
PLEASE REPLY TO:
HOME OFFICE. KINGS COUNTY
HOME OFFICE TULARE COUNTY
HOME OFFICE KERN COUNTY
WASHINGTON OFFICE
HOME OFFICE,FRESNO COUNTY
1702 EAST BULLARD AVE., SUITE 103
804 NORTH IRWIN
831 WEST CENTER STREET
201 HIGH STREET
FRESNO. CALIFORNIA 93710
HANFORD. CALIFORNIA 93230
VISALIA. CALIFORNIA 93291
DELANO. CALIFORNIA 93215
(209) 487-5500
(209) 582-2896
(209) 627-2700
(805) 725-7371
MERV GRIFFIN
productions
file
September 27, 1983
Mr. Michael Deaver
Deputy Chief of Staff
The White House
Washington, D.C. 20500
Dear Mr. Deaver:
We greatly appreciate your valuable time spent
with us. We certainly benefited from your
suggestions and remarks. There are few people
as close to the President as yourself and this
proved very constructive in the content of the
show.
This unique interview presented more facets of
what's really involved in being the President
and I feel that our viewers, throughout America,
cannot help but be impressed and touched by this
fine man, as indeed were we all.
With kind regards,
Gina Wamrick
Peter Barsocchini
Georgina Warwick
Producer
Associate Producer
"The Merv Griffin Show"
"The Merv Griffin Show"
1541 north vine street
hollywood, california 90028
(213) 461-4701
410 park avenue
new york, new york 10022
(212) 421 4100
PRESIDENTIAL
1441L Street, N.W.
Room 317
ADVISORY COMMITTEE ON
Washington, D.C. 20416
SMALL & MINORITY
(202) 653-6851
BUSINESS OWNERSHIP.
September 27, 1983
The Honorable Ronald Reagan
The White House
Washington, D. C. 20500
Dear Mr. President:
Today marks the 23rd anniversary of my family's arrival to the
United States of America.
Upon our arrival to this great country, eight of us settled in
an efficiency room at a motel located within a less than
desirable area of Miami. I was twelve at that time, and used
to the niceties of the well-to-do in preCastro's Cuba. Thanks
to my parents' spirit, deep convictions and faith all of us
remember those difficult times with pride, warmth and happiness.
We were then able to become U.S. citizens during the early
seventies. Not much longer after that, in 1974, Tommy Thomas
asked me to serve as your Campaign Co-Chairman in Dade County,
Florida. I went on to be one of your Delegates and partici-
pated in, both, the 1976 and 1980 Republican National
Conventions. On the second try at it some seven years after
our initial efforts, in Detroit, we made it.
It is, with these memories, that I write to you and express how
honored I am to serve my country by presenting this Annual
Report to you on behalf of the Presidential Advisory Committee
on Small and Minority Business Ownership. I am also able to
let you know how proud our whole family is for being long term
followers of such a great President.
Thank you for having given me this opportunity to participate
with your Administration. I shall always cherish it.
Sincerely yours,
Chairman
1982 Annual Report to
The President of the United States
and the U.S. Congress
by the
Presidential Advisory Committee on
Small and Minority Business Ownership
STATES
Annual Report
1982
Presidential
Advisory Committee
on
Small and Minority
Business Ownership
August 4, 1983
Washington, D.C.
PRESIDENTIAL
1441L Street, N.W.
Room 317
ADVISORY COMMITTEE ON
Washington, D.C. 20416
SMALL & MINORITY
(202) 653-6851
BUSINESS OWNERSHIP.
AL CARDENAS
Chairman
August 4, 1983
The Honorable Ronald Reagan
The White House
Washington, D.C.
Dear Mr. President:
On behalf of the members of the Presidential Advisory Committee on Small and Minority Business Ownership, I am
hereby respectfully submitting to you the Annual Report on the activities of the Committee during calendar year 1982,
as required by Executive Order 12190.
The Annual Report consists of two parts: an Executive Summary and an Appendix thereto.
We wish to acknowledge the support and assistance of the Administrator of the Small Business Administration,
Mr. James C. Sanders; the Associate Administrator of SBA for Minority Small Business and Capital Ownership
Development, Dr. Robert Wright; their respective staffs and most importantly, those individuals from the private sector
who provided valuable insight to this Committee. We especially wish to acknowledge my predecessor; Mr. Miller
Hicks, who was Chairman of this Committee during a substantial part of 1982. Most of the efforts undertaken by us this
past year were accomplished with his guidance and at his direction.
Two Presidential Advisory Committees have been appointed. The first Committee report was issued on April 1981.
Its thrust related primarily to the status of Federal procurement compliance practices. The second report contains
findings and recommendations to strengthen the support functions of the public and private sector in order to better
assist the small, and especially minority, business entrepreneur.
Mr. President, you extended the existence of this Committee by Executive Order 12399 executed this past
December 31, 1982 until September 30, 1984.
We hope that the focus of this Committee's activities for the upcoming year shall be to promote subcontracting
opportunities for small and minority businesses amongst private sector leaders in this country.
I firmly believe this Committee can demonstrate to major corporate America that it is in its best interest to voluntarily
increase the participation of small minority entrepreneurs in the sharing of our Nation's economic pie. This Committee
stands eager to embark upon its mission.
Respectfully yours,
QR.Cand
Al Cardenas
Chairman
3
The Presidential Advisory Committee on Small and Minority Business Ownership meeting with the President,
April 30, 1982.
Seated at the table, clockwise, Stanley S. Scott; R. Miller Hicks; the President; Katherine Ortega;
Dr. Lincoln Ragsdale; Walter Sorg; James Sanders, Administrator, Small Business Administration; Del Green;
Stephen Postupack; LeRoy Jeffries and Al Cardenas.
5
Executive Summary
Table of Contents
Page
- Establishment of Committee
9
- Functions
13
- Introduction
13
Goals and Objectives
13
Committee Organization
13
SBA Support Service
14
Public Hearing Process
14
Ad Hoc Meetings
14
Summary Observations
15
- Calendar of Public Hearings
17
- Findings and Recommendations
19
Eliminate Discriminatory Practices
19
Improve Enforcement of Public Law 95-507
19
Increase Federal Agency MBE Procurement Goals
19
Eliminate Red Tape and Paperwork
20
Strengthen Education, Technical and Management Assistance Programs
20
Broaden SBA 8(a) Program Participation
20
Encourage Creative Capital Formation Techniques
20
Insure Prompt Payment to Subcontractors
21
Support Realistic Bonding Mechanisms
21
7
Presidential Advisory
Committee on
Small and Minority
Business Ownership
Establishment of Committee
Public Law 95-507 (1978), Section 7(j) 3, provided for the establishment of a
Presidential Advisory Committee to increase and promote contracting and
subcontracting opportunities for small and small minority-owned businesses.
By Executive Order 12190 of February 1, 1980, a ten-member Presidential
Advisory Committee on Small and Minority Business Ownership was
established in order to implement Section 7(j) (3) (A) of the Small Business
Act (92 Stat. 1765, 15 U.S.C. 636 (j) (3) (A)), also known as Public Law
95-507. The ten members were to come from five major businesses
and five minority small businesses.
Two Presidential Advisory Committees have been appointed. The first was ap-
pointed in April 1980 and terminated December 31, 1980. The second and
current Committee was appointed on February 18, 1982 (eight members) and
on April 30, 1982 (two additional appointees).
Members
Chairman (11-12-82 to date)
Alberto R. Cardenas, Esq.
Chairman (02-18-82 to 11-12-82)
R. Miller Hicks*
Member
Del Green*
Member
William J. Greer*
Member
LeRoy W. Jeffries
Member
Katherine D. Ortega*
Member
Stephen Postupack
Member
Lincoln J. Ragsdale, Sr.
Member
Stanley S. Scott
Member
Walter L. Sorg
*Resigned
9
James C. Sanders
Dr. Robert Wright, Jr.
Mr. Alberto R. Cardenas, Esq.
Administrator
Associate Administrator for
Minority Small Business and
Capital Ownership Development
Mr. R. Miller Hicks
Mr. William Jackson Greer
Mr. LeRoy W. Jeffries
СУД
Ms. Katherine D. Ortega
Dr. Lincoln Johnson
Mr. Stanley S. Scott
Ragsdale, Sr.
Mr. Walter Larke Sorg
Mr. Del Green
Mr. Steven Postupack
Biographical Sketches
Al Cardenas is co-founder and senior partner of the law firm, Barron,
Lehman, Cardenas, and Picken, P.A., in Miami, Florida. He is President and
part-owner of the Coral Gables Title Company and is a principal in several
commercial real estate developments in the South Florida area. He is a
member of Dade County's Housing Finance Authority, a member of Florida's
Governor's Advisory Council - 1982 World's Fair and was a Policy Coor-
dinator to the President-Elect during the 1980-1981 presidential transition.
The President appointed Mr. Cardenas as Chairman, November 12, 1982.
R. Miller Hicks is President of R. Miller Hicks & Company, a business
development and consultant firm incorporated over 23 years ago in Austin,
Texas. He is past Chairman of the Board of Dynamic Broadcasting Corpora-
tion and Vice President of Investors, Inc., a mortgage banking corporation.
He is past member of the U.S. Regional Export Expansion Council. The
President appointed Hicks as Chairman.
William Jackson Greer is Chairman of the Board of Intex Products, Inc., of
Greenville, South Carolina. In 1971, he purchased the industrial and textile
divisions of Texize Chemicals, Inc., and formed Intex Products, Inc. He
founded Texize Chemicals in 1945, serving as President and Treasurer and
Chairman of the Board until 1971. He is a member of the Board of Directors
of the National Association of Manufacturers.
LeRoy W. Jeffries is founder and President of LeRoy W. Jeffries and
Associates, Inc., a marketing and public relations firm in Los Angeles.
Previously, he was Senior Vice President and Director of advertising with
Johnson Publishing Company. He also has held positions with the Urban
League of Greater New York, the National Urban League and served as a
consultant to the Chairman of the U.S. Equal Employment Opportunity Com-
mission.
Katherine D. Ortega is a consultant with Otero Savings and Loan Associa-
tion in Alamogordo, New Mexico. Previously, she was President and Director
of Santa Ana State Bank in Santa Ana, California, in 1975-77; Vice President
and Cashier, Pan American National Bank in Los Angeles, California in
1972-75, and tax supervisor, Peat, Marwick, Mitchell & Company in 1969-72.
She was the first woman President of a bank in the State of California.
Lincoln Johnson Ragsdale Sr. is President and Chairman of the Board of Valley
Life and Casualty Insurance Group, and owner of International Investment
Company in Phoenix, Arizona. He is currently a member of the National Urban
League Board of Trustees and member of the Board of Directors of the National
Conference of Christians and Jews, Chairman of the Executive Committee of
the Booker T. Washington Foundation, and Director of Sun State Savings and
Loan Association.
11
Stanley S. Scott is Vice President of Public Affairs, Philip Morris, U.S.A., in
New York. He was Director of Corporate Public Affairs and Assistant Director,
Corporate Relations and Communications, in 1977-79. Scott served as Assist-
ant Administrator, Bureau for Africa, Department of State, in 1975-77, and was
Special Assistant to the President in the White House in 1973-75. He was
Assistant Director of Public Relations, National Association for the Advance-
ment of Colored People, in 1966-67.
Walter Larke Sorg is President, Walter Larke Sorg Associates, a management
consulting firm in Washington, D.C. He was appointed to participate in
organization and development of the Office of Minority Business Enterprise,
Department of Commerce, in 1969, and later served as Assistant Director,
Director of National Programs. He was engaged in financial printing in 1947-69.
Del Green has been serving as President since 1972 of Del Green
Associates, Inc., a minority owned management consultant firm. He was
Project Director for the National Committee Against Discrimination in Hous-
ing, San Francisco Bay Area in 1970-1972. He served as Executive Vice-
President for Roy Littlejohn Associates in 1971-72. He was National Direc-
tor, Volt Technical Corporation OED/CAP Training and Technical Assistance
Project in 1968-1971. In 1965-1968, he was Director, Health Affairs,
Economic Opportunity Council in San Francisco, California.
Stephen Postupack currently owns and is associated with the following
businesses in Tamaqua, Pennsylvania: Northeastern Hydro-Seeding Com-
pany, Post Printing Company, Post Construction Company, Anthracite Forest
Service, Anthracite Land and Development Company, Tree House Garden
Center, and Hometown Garage.
10
Functions
The Presidential Advisory Committee, by statute, was created to facilitate
the purposes of paragraph (3) of Section 204 of P.L. 95-507:
"The Administration shall encourage the placement of subcontracts by
businesses with small business concerns located in areas of high concentra-
tion of unemployed or low-income individuals, with small businesses owned
by low-income individuals, and with small businesses eligible to receive con-
tracts pursuant to Section 8(a) of this Act. The Administration may provide
incentives and assistance to such businesses that will aid in the training and
upgrading of potential subcontractors or other small business concerns eligi-
ble for assistance under sections 7(i), 7(j), and 8(a) of this Act."
By Executive Order 12190, February 1, 1980, the functions of the Presiden-
tial Advisory Committee were defined as follows:
1-201. (a) The Committee shall assist in monitoring and encouraging the
placement of subcontracts by the private sector with eligible small
businesses, particularly with small minority businesses, and shall study and
propose the incentives and assistance needed by the private sector to help in
the training, development, and upgrading of such businesses.
(b) Eligible small businesses are those located in areas of high
concentration of unemployed or low-income individuals, businesses owned by
low-income individuals, and those businesses eligible for assistance under
Section 8(a) of the Small Business Act (15 U.S.C. 637 (a), 92 Stat, 1761).
1-202. The Committee shall make periodic reports and recommendations to
the President through the Administrator of the Small Business Administration
and shall offer such other advice and at such times as the President through
the Administrator may request.
1-203. The Committee, through its Chairman, shall report annually to the
President and to the Congress on the activities of the Committee during the
preceding calendar year.
Introduction
At the outset, the Presidential Advisory Committee analyzed Executive
Order 12190 functions and developed goals and objectives for its one-year
term. The Executive order directives to the Committee were two-fold: 1) "
shall assist in monitoring and encouraging the placement of subcontracts
by the private sector with eligible small businesses, particularly with small
minority business; and 2) shall study and propose the incentives and
assistance needed by the private sector to help in the training, development,
and upgrading of such businesses."
The objectives developed to accomplish the first directive were: a) to encourage
direct prime contracting with eligible small and small minority businesses; b)
to identify and encourage those large corporations which have successful con-
tracting relationships with small and small minority businesses to offer sug-
gestions and/or to simply "tell their story"; c) to perform an outreach function
to inform and educate private sector groups, business organizations, trade
associations, chambers of commerce, and small and small minority en-
trepreneurs.
13
The objectives developed to accomplish the second directive were: a) to en-
courage the creation of tax credits as incentives to firms which fulfill the
Administration's criteria for contracting with small and small minority
firms; b) to encourage the establishment of a contract-award incentive pro-
gram SO that Federal contracts could be awarded to participating firms if
they bid within a specific range of the actual competitive bid, e.g., perhaps
4-5% of the lowest acceptable bid; c) to study incentives that would provide
the private sector with economic benefits for creating new full-time jobs; d)
to encourage firms to provide management and technical assistance to
specific minority businesses by rewarding such firms with a tax credit or
bonus based on the improved performance of the minority business; e) to
establish a public service recognition award which would be presented to
those firms volunteering their service, expertise, and time to upgrade the
small and small minority business program.
To achieve these objectives, the Committee requested support services from
the Small Business Administration and recognizes the SBA staff participation
in each aspect of the Committee's operation and activities. In addition,
several Committee ad hoc subcommittees were designated by the Chairman
to examine areas of specific concern
The Committee acknowledges that 1982 was a year of fact-finding, outreach,
and analysis. The public hearing process was utilized to provide the widest
possible opportunity for small, small minority and big business executives to
express their concerns about the needs, incentives, procedures, and relation-
ships of small and small minority businesses to the large corporations that
conduct business with and for the United States Government. Thirteen (13)
public hearings were conducted by the Committee.
Testimony was received on a broad range of issues from a broad-based group
of witnesses who participated in the thirteen hearings. One hundred and six
(106) minority business owners, non-minority small business executives,
minority trade association officers, non-minority small business advocates,
private sector corporate executives, private sector organization represen-
tatives, educators, and government officials provided substantial information
to the Committee.
Individual members of the Committee participated in numerous ad hoc sub-
committee meetings with businesspersons, trade groups, and government
representatives. These additional meetings, initiated by the Committee
members, were held for the purpose of strengthening the Committee's
responsibility for monitoring and encouraging the placement of subcontracts
by the private sector. These meetings provided an opportunity for the Com-
mittee to establish a network of private sector contacts for follow-up discus-
sions on pertinent issues and, hopefully, set a positive tone of "working
together" in the interest of small and small minority businesses.
There were twelve volumes of testimony on issues, as well as Committee
member notes from ad hoc meetings, that could be categorized as procedural
and financial. For summary purposes, the following observations are
presented:
1/4 of the witnesses expressed concern over the negative impact of the
economic downturn on small and small minority businesses;
1/3 of the witnesses raised the long-term problem of race as a factor in not
gaining access to Federal procurement opportunities, both directly and in-
directly through the private and public sector, and how the current Ad-
ministration will address it;
14
1/2 of the witnesses testified that basic business education, and technical
and management assistance were needed;
3/4 of the witnesses testified that capital availability shortage and its atten-
dant issues in the minority community were priority problems;
1/4 of the witnesses expressed concern over procedural and regulatory dif-
ficulties encountered by small and small minority businesses in working with
programs designed to assist them.
The findings and recommendations that follow were derived after many hours
of discussion on the testimony, ad hoc meetings, and on overall perspective
that private sector participation in the small and small minority business pro-
grams is crucial to "mainstreaming" these firms.
15
Calendar of Public Hearings
First Hearing
18 Feb. 1982
Washington, D.C.
Second Hearing
8 & 9 March 1982
Washington, D.C.
Third Hearing
30 April 1982
Washington, D.C.
Fourth Hearing
14 June 1982
San Francisco, California
Fifth Hearing
30 July 1982
Washington, D.C.
Sixth Hearing
23 Aug. 1982
Chicago, Illinois
Seventh Hearing
15 Sept. 1982
Dallas, Texas
Eighth Hearing
18 Oct. 1982
Phoenix, Arizona
Ninth Hearing
25 Oct. 1982
Juneau, Alaska
Tenth Hearing
26 Oct. 1982
Anchorage, Alaska
Eleventh Hearing
28 Oct. 1982
Fairbanks, Alaska
Ad Hoc Public Hearings
Twelfth Hearing
19 Oct. 1982
Window Rock, Navajo Nation
Thirteenth Hearing
27 Oct. 1982
Kotzebue, Alaska
Transcripts and minutes were prepared for each Hearing. A complete list of Hearing witnesses is contained in the
Appendix.
17
Findings and
Recommendations
graphic area at a given time. Data
ty are dependent on a sensitive
collection, analysis, and dissemination
awareness of the small and minority
1. Eliminate Discriminatory Practices
to agencies, private and public con-
business range of capability.
tractors, as well as small and minori-
Race and ethnic origins continue to
ty businesspersons, is critical to the
An additional aspect of this pro-
handicap small and small minority
achievement of P.L. 95-507.
cedure is the degree to which the
businesses. Testimony of specific
agency goals are achieved through
discriminatory practices was provided
subcontracting plan implementation.
by various minority groups.
Procurement officers and prime con-
tractors must have data on minority
RECOMMENDATION:
RECOMMENDATION:
business identification and capability
that anchors their response to P.L.
To the extent that discrimination con-
The identification of small and minori-
95-507.
tinues to handicap small and small
ty businesspersons, coupled with an
minority businesses, the government
up-to-date assessment of their
RECOMMENDATION:
and the private sector must be
capabilities, is crucial to the imple-
vigilant in identifying and taking the
mentation of the achievement of
This Presidential Advisory Committee
necessary procedural steps to
agency procurement goals. The Com-
supports the statement by President
eliminate it.
mittee recommends assurance that
Reagan, dated December 17, 1982,
such data are made available through
regarding this Administration's
2. Improve Enforcement of Public
the efforts of interagency cooperation
steps to promote an economic en-
Law 95-507
to resolve any current deficiencies in
vironment in which minority en-
data identification, collection, and
trepreneurs can better marshal their
Testimony was presented regarding
dissemination. In addition, the Com-
talents and skills to achieve better
data that Federal Government agen-
mittee recommends that incentives
lives for themselves and, in so doing,
cy procurement subcontracting
should be developed for increased
contribute to a stronger economic
guidelines under Public Law 95-507
private sector participation in the
base for America." The President
have not been met since adoption of
P.L. 95-507 procurement oppor-
established procurement goals for
the law.
tunities. Specific attention and study
minority business as well as directed
should be given to mechanisms such
other measures to be taken to im-
A general trend of testimony
as "The adjusted bid factor" sug-
prove federal procurement oppor-
throughout the hearings was the lack
gested to the Office of Federal Pro-
tunities for minority businesses. This
of adequate mechanisms to enforce
curement Policy.
Committee encourages the
the subcontracting provisions of P.L.
strengthening of the SBA role in
95-507.
3. Increase Federal Agency MBE Pro
monitoring the implementation of the
curement Goals
President's goals and in assessing
The overall compliance with the spirit
problems which may surface from
and intent of P.L. 95-507 is of con-
While procurement goals are set on
time to time.
cern to all. Specific suggestions and
an agency-by-agency basis, there is
guidelines are being studied by
no direct correlation between minor
This Committee supports the findings
various Federal agencies, as well as
ty business capacity to absorb the
of the SBA Task Force on P.L.
the SBA Task Force on P.L. 95-507
procurement opportunities and the
95-507, particularly with respect to
implementation. Hopefully, these fur-
agency goals. It is generally observed
establishing incentives for prime con-
ther reports will deal with the areas
that there are more than enough
tractors, the long-term goal of in-
of concern expressed throughout the
small and minority businesses to ab-
creasing small business subcontrac-
hearings.
sorb the federal procurement oppor-
ting participation to a level of 35%
tunities, with the capacity to expand
and minority business participation to
Of specific concern to this Presiden-
on a profitable basis, if the procure-
a level of 15%.
tial Advisory Committee is the
ment opportunities were increased
establishment of policy to address
and made on a multi-year basis when
Further, this Committee recommends
procedures to follow with prime con-
the prime contract is multi-year.
that assurance must be ascertained
tractors who are not in compliance
that the procurement process
with the law to encourage and enable
It is critical to the procurement pro-
operates to achieve equality and
them to live up to the spirit of P.L.
cess that the data in the SBA port-
fairness to subcontractors vis-a-vis
95-507.
folio of business be made available to
their relation to prime contractors.
agency procurement divisions for
Such issues as multi-year subcon-
Associated with this issue is the
marketing purposes. The achieve-
tracts, cancellation of contracts, and
paucity of data on small and minority
ment of the procurement goals and
prompt payment of subcontractors
businesspersons in a given geo-
the assessment of absorptive capaci-
must be studied to implement pro-
19
cedures that achieve the letter and
government must continue, through
6. Broaden SBA 8(a) Program
spirit of P.L. 95-507.
SBA, Office of Federal Procurement
Participation
Policy, and interagency cooperation,
to refine the process to clear
Testimony obtained from numerous
regulatory "bottlenecks".
witnesses, as well as data made
4.Eliminate Red Tape and Paperwork
available to the Committee, support
5. Strengthen Education, Technical
our finding that a significant number
Red tape and paperwork are
and Management Assistance
of qualified minority business enter-
obstacles to small and minority
Programs
prises are unable to participate in the
businesspersons effectively partici-
8(a) program. This Committee
pating in federal procurement oppor-
There was considerable testimony ex-
recognizes the importance of a conti-
tunities. Testimony was presented
pressing concern as to the disadvan-
nuing and improved 8(a) program.
that graphically emphasized that
tages experienced by small, and
bureaucratic procedures can impede
especially small minority businessper-
and/or discourage even the well-
sons, in the marketplace due to in-
RECOMMENDATION:
prepared minority businesses. Appli-
adequate educational opportunities;
cation procedures for most loans,
which lead to less than competitive
It is important that a continuing ef-
technical and management
technical expertise and management
fort be made to ascertain the
assistance, 8(a) certification and
skills.
feasibility of funding and program-
participation in publicly-sponsored
matic solutions to alleviate this pro-
procurement (bidders' list) are
RECOMMENDATION:
blem, taking into consideration the
cumbersome, lengthy, fragmented,
realities of the current budgetary
costly, and discouraging. The net ef-
The Committee encourages the
restraints in government.
fect of which is to block or hinder the
implementation of the President's
initiative and/or successful entry of
directive to the Minority Business
minority businesses into Federal
Development Agency (MBDA), SBA,
procurement opportunities. Here,
and the SBA Small Business Develop-
7. Encourage Creative Capital
too, is a cause for the non-
ment Centers to provide manage-
Formation Techniques
achievement of procurement goals.
ment and technical assistance to
minority firms requesting and receiv-
The inability of small and small
Federal regulations, program and
ing assistance. Guidelines for Federal
minority businesspersons to ade-
procedural guidelines, must be
contracting with firms that service
quately accumulate sufficient capital
regularly reviewed for their impact on
small and small minority businesses
to start, expand, or diversify their
the successful achievement of P.L.
under Federal programs. e.g., SBA
businesses is perhaps the most dif-
95-507 requirements.
7(j) and MBDA Business Develop-
ficult barrier to overcome. Without
ment Centers, should require that
access to new sources of capital,
An example of the benefits to be
such contractors have demonstrable
small and small minority businesses
derived from constant regulatory
sensitivities to groups intended to be
will never be able to expand, diversi-
review was experienced by this Com-
served. Furthermore, the Committee
fy, and overcome the many barriers
mittee's work in the area of capital
encourages SBA and MBDA to
in the marketplace. The capital must
formation. The Office of Federal
develop, through a structured inter-
come from new innovative sources,
Procurement Policy is currently con-
action with colleges, universities,
as well as existing sources that have
templating the implementation of a
trade associations, and major firms
not been adequately utilized or
change in the P.L. 95-507 regulations
volunteering their resources, a multi-
leveraged.
to permit a percentage of monies
level program to assist entry level
deposited by federal contractors with
small and small minority businessper-
A number of recommendations which
minority owned banks, savings and
sons; as well as such firms that need
were made to this Committee are
loan institutions and insurance com-
more specific assistance on different
deserving of further study. Among
panies to qualify under P.L. 95-507
levels.
these are:
subcontracting plan goals. The
implementation of this change may
The Committee is particularly en-
a) Syndicate SBA guaranteed loans
well result in a substantial increase in
couraged by the development of em-
to induce participating lending insti-
the pool of capital resources available
phasis on small and small minority
tutions to increase their small and
to small and minority businesses.
business entrepreneurship at some of
small minority business loan portfolio;
our nation's leading colleges and
RECOMMENDATION:
universities, and encourages the ex-
b) Strengthen the minority bank
pansion of these efforts.
deposit program by earmarking a
Federal regulations, program and
percentage of funds obtained from
procedural guidelines must be
federal sources for this purpose;
regularly reviewed for their impact on
the successful achievement of P.L.
95-507 requirements; as well, the
20
c) Review the possible expansion of
which, without prompt payment, can-
RECOMMENDATION:
lending activities which channel their
not fulfill their contractual obligations
resources to small and small minority
that require a reliable and steady
It is essential that improvements be
business firms:
cash flow. The essential point is that
made in providing bonding to small
subcontractors should be paid as
and small minority businesses. A
Small Business Investment
timely as prime contractors.
combination of actions should be
Companies
explored: raise bond ceilings; expand
MESBICs
RECOMMENDATION:
SBA's guarantee program; and
Insurance Companies
provide incentives for public and
It is essential that the government
private entities to assist in
d) Determine the incrementation of
and prime contractors remove the
underwriting the cost. The raising of
small and small minority business
unnecessary bottlenecks that cause
these ceilings would substantially
participation in the export trading
delay in contractual payments to
decrease paperwork and related
program;
small and small minority businesses.
government expenses.
The SBA is encouraged to review this
e) Encourage the expansion of
procedure with procurement officials
private sector joint ventures with
who approve invoice payments and
small and small minority businesses,
affect the timing of such payments by
especially in the area of high
the U.S. Treasury. Specifically, a
technology;
review of the existing procedures for
processing payment should be under-
f) Encourage Federal prime contrac-
taken to mandate that payment to
tors to provide needed capital
subcontractors by prime contractors
resources to small and small minority
must coincide with the receipt of pay-
A second document has been developed for
business subcontractors through
ment by the prime contractor.
those who desire further detail.
various mechanisms; including the
purchase of stock to increase their
capital base.
RECOMMENDATION
9. Support Realistic Bonding
Mechanisms
It is essential to a successful effort in
seeking the cooperation of major
Any company seeking to perform con-
companies in the private sector to
struction work for the government is
provide assistance to small and small
almost always required to post one or
minority businesses in capital forma-
more bonds guaranteeing completion
tion that there is developed a
of the project and payment of bills.
blueprint to follow. Several role
Without bonding capacity, a company
models have surfaced in the recent
cannot bid as a prime contractor in
past whose results are most en-
most instances.
couraging.
Small and minority firms have
historically faced difficulties in gaining
access to the bonding market. This is
8. Insure Prompt Payment to
generally a result of a combination of
Subcontractors
the nature of the bonding industry
and the characteristics of small and
Many small and small minority
minority firms.
businesses are dealt serious financial
and contractual setbacks by not
The extensive problems experienced
receiving prompt payment of invoices
by minority firms in obtaining bond-
submitted for work completed on
ing were described by a number of
government contracts and subcon-
witnesses. It is clear that this is an
tracts. This is a particularly wor-
area requiring study, analysis, and
risome problem to these businesses
program development.
21
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
Deaver, Michael: Files
KDB 9/9/2011
File Folder
FOIA
AUGUST 1983 - SEPTEMBER 1983 MISCELLANEOUS
F97-066/19
INCOMING (7)
COHEN, D
Box Number
14
1
ID
Document Type
No of Doc Date Restric-
Document Description
pages
tions
118274 MEMO
3 9/30/1983
B1
WILLIAM BROCK TO M. DEAVER RE
WILLIAMSBURG COMMITMENTS ON TRADE
The above documents were not referred for declassification review at time of processing
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
Deaver, Michael: Files
KDB 9/9/2011
File Folder
FOIA
AUGUST 1983 - SEPTEMBER 1983 MISCELLANEOUS
F97-066/19
INCOMING (7)
COHEN, D
Box Number
14
1
ID
Document Type
No of Doc Date Restric-
Document Description
pages
tions
118275 REPORT
9
ND
B1
IMPLEMENTATION OF COMMITMENTS ON
TRADE FROM THE WILLIAMSBURG SUMMIT
MEETING
The above documents were not referred for declassification review at time of processing
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.