U.S. to Change Rules for Awarding Federal Contracts, Paper Reports
The Clinton administration is set to announce changes in how it awards government contracts, possibly ending preferences for some minority-owned businesses but helping others, a newspaper reported today.
Rules for awarding federal contracts worth an annual $200 billion would change substantially under a new approach in proposed Justice Department regulations to be issued later this week, the New York Times said in today’s editions.
The new approach will use industry review to pinpoint where minority groups face discrimination in the awarding of government contracts, the newspaper said, citing Justice Department officials.
The paper said some businesses owned by minorities could be helped by the findings but others might be found to be overrepresented in some areas.
According to officials, preferences in those cases would be reduced, suspended or terminated, the paper said.
A 1995 Supreme Court decision curtailed the capacity of federal programs to award benefits due to race or sex.
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