"III. Establishment of Benchmark Limitations: "In order to ensure that race-conscious procurement is not used unnecessarily, benchmarks will be developed for each industry in which the government contracts. Benchmarks will seek to measure the level of minority contracting that would exist absent the effects of discrimination. "Benchmarks will be calculated by combining the capacity of available minority firms in the industry with an adjustment, where applicable, for the amount that discrimination has suppressed that availability.
"IV. Application of Benchmark Limitations "Where minority participation falls below the benchmark, a price or evaluation credit -- not set-asides -- will be authorized for the evaluation of bids by SDBs and prime contractors who commit to subcontract with SDBs.
"When SDB participation exceeds the benchmark, the credit would be lowered or suspended. When that occurs, the SBA concurrently will limit the use of the 8(a) program in that industry by restricting entry, speeding graduation, or restricting the number of 8(a) awards in the industry. "After this system is in place for two years, a thorough review will be conducted, and changes to the amount and methods of assistance would be considered at that time."
The full proposal can be found in the May 23 edition of the Federal Register (page 26042). To submit written comments on the new proposals, send them to Mark Gross, office of the Assistant Attorney General for Civil Rights, P.O. Box 65808, Washington, DC, 20035-5808 or fax to: (202) 307-2839. For more information, call Mark Gross at (202) 514-2172.
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