The Governor As required by Texas Civil Statutes, Article 6252-13a, sec.6, the Texas Register publishes executive orders issued by the Governor of Texas. are published in Chronological order. Additional information on documents submitted for publication by the Governor's Office can be obtained by calling (512) 463-1828. Executive Order AWR 93-7 NEW DIRECTIONS FOR STATE CONTRACTING: PROMOTING GREATER USE OF HISTORICALLY UNDERUTILIZED BUSINESSES WHEREAS, state agencies purchase billions of dollars worth of products and services annually; and WHEREAS, the economic well-being of Texas is dependent upon the financial health of small businesses in the state; and WHEREAS, the following state laws support state purchasing from small businesses in general, and from women-owned and minority-owned businesses in particular: Article 601b, sec.sec.3.10(b) and 5.36, Vernon's Texas Civil Statutes (enacted 1991); Article 6669c, Vernon's Texas Civil Statutes (enacted 1991); Government Code, sec.481.101, et seq (amended 1991); Government Code, sec.493.012 (enacted 1991); and Article V, sec.106 of the Appropriations Act, H. B. 1, 72nd Legislature, First Called Session (enacted 1991); and WHEREAS, reports to the 71st and 72nd Legislatures by special interim committees of the House of Representatives and Senate of the State of Texas, respectively, have highlighted deficiencies in the state's contracting practices regarding such businesses; NOW THEREFORE, pursuant to the authority vested in me, I, Ann W. Richards, Governor of the State of Texas, do hereby direct all state agencies to implement the policies and practices set forth in this Executive Order in order to maximize contracting opportunities for women-owned and minority-owned businesses. PURPOSE AND OBJECTIVES The purpose and objectives of this order are to: strengthen the state's commitment to provide contracting opportunities for women-owned and minority- owned businesses; redress past contracting discrimination where it may be uncovered; ensure that state tax dollars do not benefit contractors that discriminate; and ensure that state procurement practices conform with the decision by the U.S. Supreme Court (City of Richmond v. J.A. Croson Company) that imposes new limits on state-run affirmative action programs. I. Contracting Goal In furtherance of Article 601b, sec.3.10(b), Vernon's Texas Civil Statutes, the General Services Commission is directed to make a good faith effort to attain a goal that women-owned and minority-owned businesses receive at least ten percent of the dollar value of each agency's contracting awards, including awards made with local funds. All state agencies are directed to assist the General Services Commission in effort. If an agency has established a goal higher than ten percent, the General Services Commission is directed to assist the agency in achieving the higher goal. II. Improve Procurement Practices In order to maximize contracting opportunities for women-owned and minority- owned businesses, agencies are directed to improve their procurement practices as follows. A. All state agencies are directed to: 1. Examine bid specifications to ensure that women-owned and minority-owned businesses are not placed needlessly in a competitive disadvantage (for example, if state statutes permit, performance bond requirements should be reduced or eliminated if they are determined to be unreasonable); 2. Develop large contract projects in such a way that sub-parts of the projects are of a size that increases opportunities for woman-owned and minority-owned businesses; 3. Ensure that all employees with procurement responsibilities comply with both "the letter and the spirit" of this order; 4. Participate in new or existing programs (such as "Texas Marketplace" at the Department of Commerce) that consolidate information from different agencies regarding upcoming contracting opportunities and allow potential bidders from around the state to discover upcoming contracting opportunities; 5. Conduct "informational meeting" at the agency's procurement office for all potential bidders, and especially for women-owned and minority-owned businesses, in order to reduce the confusion that potential bidders may have about the agency's general procurement process; 6. Make available to all potential bidders information relating to previously successful bids (to the extent such information is public under the Open Records Act); 7. Participate in multi-agency efforts directed by the General Services Commission to develop and implement high-profile outreach programs aimed at women-owned and minority-owned businesses, which may include videotaped informational "brochures" and public service announcements; and 8. If requested by the General Services Commission, designate staff to work with the General Services Commission and other agencies to cooperatively identify women-owned and minority-owned businesses. B. The General Services Commission is directed to develop a training program to help agencies improve procurement practices in accordance with this order. The Commission shall evaluate any agency that fails to improve, and may take appropriate remedial action with respect to such agencies, including withdrawal of delegated purchasing authority. III. Improve Certification Program and Data Collection Process Current state law provides that both the General Services Commission and the Department of Commerce have responsibility for: implementing a certification program for women-owned and minority-owned businesses, and collecting relevant data. These two agencies are directed to continue their efforts to develop a single certification program and data collection process for the state. All state agencies are directed to cooperate fully with these efforts. in furtherance of Article 601b, sec.1.03(a), Vernon's Texas Civil Statutes, all businesses already certified by municipal programs are automatically certified by the state. IV. Task Force on Discrimination in Contracting The state has a fundamental obligation to redress contracting discrimination by the state in those areas where it may be uncovered. A. Therefore, in order to investigate whether discrimination may have occurred, I hereby create a Task Force on Discrimination in Contracting, to be located within the General Services Commission. B. The membership of the Task Force shall consist of five persons, as follows: three public members (with one each appointed by the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives), the Executive Director of the Texas Department of Commerce, and the Executive Director of the General Services Commission. The Executive Director of the General Services Commission shall serve as Chair of the Task Force. C. A member of the Task Force is not entitled to compensation but is entitled to reimbursement for travel expenses, as provided for members of state boards and commissions in the General Appropriations Act, incurred in performing duties of the Task Force. D. The General Services Commission shall provide staff assistance for the Task Force, and shall provide funding as appropriate for Task Force operations. E. The Task Force shall request legal assistance from the Attorney General. The Task Force shall seek input from a wide variety of sources in state government and the private sector, including representatives from the public universities in Texas and representatives from the largest state agencies. F. The duties of the Task Force shall include the following: 1. By February 1, 1994, complete an analysis of the state's historic performance with respect to contracting with women-owned and minority-owned businesses. This analysis must take into account the disparity study (or studies) that may be conducted by the Comptroller and/or other agencies designated by the legislature; if the legislature does not designate an agency to conduct a state- wide disparity study, then the Task Force shall conduct its own; 2. Determine whether there are grounds for a reasonable suspicion that contracting discrimination (whether intentional or inadvertent) has occurred; and 3. If so, recommend an appropriate remedial program, which may include specific percentage targets for contracting with women-owned and minority-owned businesses. G. The General Services Commission shall review the findings and recommendations of the Task Force. If the Task Force has determined that there are grounds for a reasonable suspicion that contracting discrimination has occurred, the General Services Commission shall adopt and implement an appropriate remedial program, which may include specific percentage targets for contracting with women-owned and minority-owned businesses. This Executive Order shall be effective immediately and shall remain in full force and effect until amended, modified, or rescinded by the Governor. Issued in Austin, Texas, on March 24, 1993. TRD-9320816 Ann W. Richards Governor of Texas