As prescribed in 726.7007, insert the following clause:
SUBCONTRACTING WITH DISADVANTAGED ENTERPRISES (JULY 1997)
Note: This clause does not apply to prime contractors that qualify as disadvantaged enterprises as described below.
(a) Not less than ten (10) percent of the dollar value of this contract shall be subcontracted to disadvantaged enterprises as described in paragraph (b) of this clause.
(b) Disadvantaged enterprises are U.S. organizations or individuals that are:
(1) Business concerns (as defined in FAR 19.001) owned and controlled by socially and economically disadvantaged individuals; (See FAR 19.001)
(2) Institutions designated by the Secretary of Education, pursuant to 34 CFR 608.2, as historically black colleges and universities:
(3) Colleges and universities having a student body in which more than 40 percent of the students are Hispanic American; or
(4) Private voluntary organizations which are controlled by individuals who are socially and economically disadvantaged.
(c) Definitions.
(1) “Controlled by socially and economically disadvantaged individuals” means management and daily business are controlled by one or more such individuals.
(2) “Owned by socially and economically disadvantaged individuals” means at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned business having at least 51 percent of its stock owned by one or more socially and economically disadvantaged individuals.
(3) “Socially and economically disadvantaged individuals” has the same meaning as in FAR 19.001, except that the term also includes women. (See FAR 19.001)
(d) Contractors should require representations from their subcontractors regarding their status as a disadvantaged enterprise. Contractors acting in good faith may rely on such representations by their subcontractors.
