Small Business Procurement Policy

Arizona State University validated its small business procurement policy in University Bulletin, dated May 27, 1988, subject: Affirmative Action Small Business Plan. This plan was prompted by and in agreement with Public Law 95-507, an amendment to the Small Business Act, passed by the United States Congress on October 24, 1978. The 95th Congress established its position in the wording of the amendment by stating that:

1. The opportunity for full participation in our free enterprise system by socially and economically disadvantaged persons is essential if we are to obtain social and economic equality for such persons and improve the functioning of our economy;
2. Many such persons are socially disadvantaged because of their identification as members of certain groups that have suffered the effects of discriminatory practices or similar invidious circumstances over which they have no control;
3. Such groups include, but are not limited to, Black Americans, Asian-Pacific Americans, Hispanic Americans, Native Americans, and other minorities;
4. It is in the national interest to expeditiously ameliorate the conditions of socially and economically disadvantaged groups;
5. Such conditions can be improved by providing the maximum practicable opportunity for the development of small business concerns owned by members of socially and economically disadvantaged groups;
6. Such development can be materially advanced through the procurement by the United States of articles, equipment, supplies, services, materials, and construction work from such concerns; and
7. Such procurement also benefits the United States by encouraging the expansion of suppliers for such procurement, thereby encouraging competition among such suppliers and promoting economy in such procurement.

The Affirmative Action Small Business Plan has three objectives;

1. To inform the university community of the needs and capability of the small, disadvantaged, service disabled veteran owned, veteran owned, HUB zone and women-owned business community;
2. To provide opportunities for education and business skills development to the small, disadvantaged, service disabled veteran owned, veteran owned, HUB zone and women-owned business entrepreneurs in our community;
3. To increase the amount of business the university does with small, disadvantaged,service disabled veteran owned, veteran owned, HUB zone and women-owned business concerns.

For accomplishing the three objectives, the plan has seven components:

1. Increasing University Sensitivity,
2. Resource Identification,
3. Community Activity,
4. Education and Training,
5. Preference in Negotiated Procurement,
6. Construction Subcontracting, and
7. Multiple Awards.

The Affirmative Action Small Business Plan enables Arizona State University to meet its obligation to develop, negotiate, monitor, and report the results of negotiated or non-negotiated small business subcontracting plans. These plans are included in contracts when the university accepts federal research funds. The plans are negotiated Small and Small Disadvantaged Business Subcontracting Plans or non-negotiated MBE/WBE Utilization under Federal Grants, Cooperative Agreements, and other Federal Assistance Plans. These plans determine the dollar goals that the university has contracted to spend with small business, including disadvantaged and women-owned businesses.

It is important that Arizona State University demonstrates capability to effectively include small business in its procurement activities. Therefore, the university assigns similar annual small business goals to its primary departments. Primary departments goals for Fiscal Year 2007-2008 are:

University Community procurement are made without the assistance of Purchasing. Procurement goals for purchasing from small business are based on federal and state goals, past purchasing trends, and provide an opportunity for self improvement. These goals reflect the university's stated desire to be competitive in securing federal and other research funds.

The goals are stated as a percentage of total expended competitive dollars. Competitive dollars are total dollars expended less dollars spent with non-profit organizations, foreign sources, and organizations that are not classified.

Purchases from organizations that are not classified represent transactions from suppliers not currently identified or who refuse to disclose their size information.

Annual reports are published on the accomplishments of the primary departments and the holders of major research grants. Annual reports, The Affirmative Action Small Business Plan and complete information on the program are available on request. Call 480.965.6778 for assistance.