Amends the Small Business Act to require the President to designate, within 60 days of the enactment of this Act, the agency (including the Department of Defense) with which a Government procurement contract shall be made by the Small Business Administration (SBA) under the provisions pursuant to which contracts are performed through subcontracts with socially and economically disadvantaged small businesses. Extends through FY 1988: (1) the program established by the Act under which contracts are set-aside for small businesses; and (2) the SBA's authority to waive the posting of bond with respect to such businesses.