Clinton: Award more contracts to women-owned firms

President Clinton Tuesday ordered federal agencies to try harder to reach a goal of awarding 5 percent of federal contracts to women-owned small businesses.

Only about 2 percent of the government's business has gone to companies owned by women in recent years.

Women's share of federal contracts is up from slightly more than 1 percent in 1994, when Congress established the 5 percent goal in an amendment to the Small Business Act.

"It shall be the policy of the executive branch to take the steps necessary to meet or exceed the 5 percent governmentwide goal for participation in procurement by women-owned small businesses," Clinton said.

The order instructs the Small Business Administration to hire an assistant administrator for women's procurement to coordinate agencies' efforts to steer more business toward women-owned companies. Agencies must create plans for increasing women's share of both prime contracts and subcontracts, Clinton said.

Last October, the Office of Management and Budget reminded agencies of the 5 percent goal. Agencies must report to SBA every year on their efforts, OMB said.

Sherrye Henry, head of SBA's Office of Women's Business Ownership, hailed Clinton's order.

"The President sent a clear message: Meet the goal," Henry said.