Resolution Trust Corporation: Progress Under Way in Minority- And Women-Owned Business Outreach Program
GGD-91-138
Published: Sep 27, 1991. Publicly Released: Sep 27, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed the Resolution Trust Corporation's (RTC) policies and processes to include minority- and women-owned businesses (MWOB) to the maximum extent possible in contracting opportunities, focusing on the: (1) assignment of resources to the MWOB program; and (2) implementation of MWOB program contracting procedures in the field, including certification of MWOB firms and award of technical bonus points and the cost advantage.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Resolution Trust Corporation | To improve the effectiveness of the MWOB program, the Executive Director, RTC, should assess the adequacy of staff assigned to the MWOB program in headquarters. |
RTC established an office within headquarters to focus exclusively on programs for minority and women-owned businesses and law firms.
|
| Resolution Trust Corporation | To improve the effectiveness of the MWOB program, the Executive Director, RTC, should provide the necessary oversight structure to ensure that the recently proposed MWOB status verification procedures, as well as other aspects of the program, are consistently implemented. |
The Director of the RTC MWOB program has allocated additional staff to oversee the certification/verification procedures for MWOB and joint ventures. In October 1992, the Director designated several staff persons to participate in the certification/verification task force responsible for refining the policies and procedures. Additionally, training seminars were held for responsible staff in February 1993.
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| Resolution Trust Corporation | To improve the effectiveness of the MWOB program, the Executive Director, RTC, should determine at what stage during the contract evaluation process technical bonus points should be applied for MWOB asset management firms and issue guidance to the consolidated offices to consistently implement that policy. |
On August 20, 1992, RTC issued a directive to its field offices describing procedures for the application of technical and cost bonus points to MWOB. In November 1992, the Department of Minority and Woemn contracting began program compliance reviews. A key component of these reviews is to examine each field office's application of the bonus points. On April 16, 1993, RTC issued a series of desk guides to help field staff implement contracting policies and procedures, including the application of technical and cost bonus points to MWOB firms, properly and consistently.
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| Resolution Trust Corporation | To improve the effectiveness of the MWOB program, the Executive Director, RTC, should review the cost advantage feature and determine whether the proposed "up to 5 percent" is sufficient to enhance the ability of MWOB to effectively compete for RTC asset management contracts. |
The RTC Refinancing, Restructuring and Improvement Act of 1991 required RTC to provide a 5 percent cost advantage.
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Contract costsStaff utilizationMinoritiesMinority business assistanceMinority business contractsMinority contractorsPrivate sectorWomen-owned businessesCompetitive advantageContracting practices