Section 221 of Public Law 95-507 mandates that the head of each federal agency, after
consultation with the Small Business Administration, establish realistic goals for each
fiscal year for the award of agency contracts to socioeconomically disadvantaged
businesses. This requirement currently represents one of approximately 50 separate
federal socioeconomic programs that utilize the federal contracting process as the
principal implementing mechanism. Through multiple regression analysis this article
concludes that the mandatory goal-setting procedure has had no statistically significant
positive effect in increasing federal contract dollars to minority businesses.
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