This week Pennsylvania Governor Tom Wolf announced changes to improve procurement opportunities for small and diverse businesses. The changes focus specifically on state contracting, with three major changes to take action against disparities in state business. These changes were based off of data collected in the Commonwealth Disparity Study The goal of these actions is to increase accessibility to contracts, as well as improve the quality and quantity of contracts available to small businesses and small diverse businesses.
What are the changes?
A change in state contracting and a new goal to increase Small Diverse Business participation:
Moving forward, state contract procurement proposals will shift from a scoring process to a goal setting process. The state will aim for 26.3% of state contract spending with small diverse businesses. This new goal is starts with contracting solicitations over $300,000 this week and will expand to goods and services solicitations over $250,000 starting on August 17, 2020. The new system will ensure better accessibility for small diverse businesses.
A change in how Veteran Business Enterprises are considered and a new goal to increase Veteran small business participation:
The state has set a goal for 4.6% of state contract spending to go to Veteran Business Enterprises. They’ve also updated the small disadvantaged business standards to include Service-Disabled Veteran-Owned Small Business Enterprises. This change is great for our state’s Veteran owned small businesses and greatly increases the number of opportunities available.
Reinstating the Small Business Reserve Program to increase spending with small businesses:
The Small Business Reserve Program is designed to help certified small businesses to compete as prime contractors for contracts with the state of Pennsylvania. Procurement requests issued under the program will be exclusive to small businesses, creating a more even playing field for small and diverse businesses. State agencies under the governor’s jurisdiction have also been assigned to spend 15% of their contract spending through the program. This action will help meet goal of 26.3% contract spending with small businesses and greatly improves accessibility to contract opportunities these businesses may otherwise not have.
What makes a Small or Small Diverse Business?
The State of Pennsylvania recognizes Small Businesses and Small Diverse Businesses as businesses that have less than 100 employees, who meet financial requirements and are not dominant in their field. Diverse businesses are certified as minority, women, LGBT, veteran and disabled owned businesses and meet the same small business standards. The requirements are set by the Pennsylvania Department of General Services and more information can be found by visiting The Bureau of Diversity, Inclusion and Small Business Opportunities (BDISBO.)
The mission of BDISBO, per its PA Dept. of General Services home page, is to “educate and advocate for the small and small diverse businesses. As an advocate, we seek to influence policy, programs, and legislation to meet the needs of the small business community. Our primary mission is to actively, equitably and successfully engage small, disadvantage, and minority businesses in the commonwealth’s public procurement process as one of the ways to fuel our economy. “
BDISBO was founded in 2015, and continues to be a helpful resource and advocate for Small Businesses across the commonwealth. As a women certified small business, we’re glad they’re taking action and are committed to growth in our communities.
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