Ironically, an HSAR policy is dependent on the continued segregation of public high schools in its efforts to achieve diversity in public universities.
To study the labor market effects of an HSAR policy, let us construct an example in which a university system offers admission to the top Z percent of the graduating class from each high school in the state.
How does an HSAR policy affect the quality of college graduates from the underrepresented group in the labor market?
From this example it becomes clear that an HSAR policy is likely to cultivate diversity on college campuses without triggering labor market discrimination under the following conditions.
Unless inner-city schools are able to develop an environment in which [t.sub.gu]S as well as [t.sub.ga]S can satisfy college admission requirements, an HSAR policy is likely to generate labor market discrimination much in the same manner as do more overtly race-based forms of affirmative action.
It is important to note that DHS issued and implemented the interim HSAR without providing any opportunity for public comment, as explained by DHS, "due to [the] urgent need for seamless continued acquisition and contracting operations of the previous agencies and organizations that now comprise DHS." While comments were welcomed for consideration by the government in the formation of the final HSAR, neither DHS' responses to the submitted comments nor the final rule was issued at the time that this article was drafted.
Before examining the HSAR, it is helpful to understand the extent of DHS procurement activities.
In implementing Section 833 of the Homeland Security Act, the interim HSAR Part 3013.7000 allows DHS to use special streamlined acquisition authority with respect to procurements--up to September 30, 2007--of "any" goods and services in cases where the secretary determines, in writing, that the mission (3) of agency "would be seriously impaired without the use of such authorities." (4) This is an expansion of authority provided under Section 853 of the Homeland Security Act, the interim FAR rule, which allowed federal agencies to apply simplified acquisition procedures for contracts only of goods and services used in defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack and in support of humanitarian, peacekeeping, or contingency operations.
Under the interim HSAR, DHS can use streamlined acquisition authority beyond FAR Part 2.101, under which agencies are typically restricted to the use of simplified acquisition procedures for "supplies, services, or construction," in the amount of $100,000 or less inside the United States and $200,000 or less outside the United States.
Further, the interim HSAR Part 3013.7003 modifies the provisions under FAR Part 13.5 with regard to the commercial item test program.
Part 3019, Small Business Programs, contains general policies for its small business and SB subcontracting program and includes a provision that establishes and encourages participation in a DHS mentor-protege program.
Among the HSAR
sections are: (1) Part 3006 (Competition Requirements), which establishes policies and procedures for establishing and maintaining alternative sources and instances requiring procedures other than full and open competitions to be used; (2) Part 3009, (Contractor Qualifications), which prohibits DHS from contracting with inverted domestic corporations (defined as any foreign incorporated entity who after passage of the HSAR
completes a purchase of domestic corporation in which at least 80 percent of the stock is held by former shareholders of the purchased domestic corporation) and corporate expatriates (defined as companies that incorporate abroad to avoid payment of U.S.