Executive order designed to boost state contracts for small companies
Gov. Terry McAuliffe on Tuesday signed an executive order designed to increase state procurement opportunities for small, women and minority-owned (SwAM) businesses.
The executive order directs state agencies to award more than 42 percent of their contracts to small businesses. This goal is the highest requirement since Virginia started tracking its spending with such businesses in 2004, according to the McAuliffe administration.
The order also creates a “micro business” designation for businesses that have fewer than 25 employees and less than $3 million in annual revenue in the three years prior to certification. The administration says this covers 80 percent of SwAM-certified businesses.
The order also increases the value of state contracts that are set aside for small businesses to $100,000 for goods and nonprofessional services and up to $50,000 for professional services when the quoted price is “fair and reasonable.” It also requires that purchases under $10,000 be set aside for micro businesses if the price is fair.
McAuliffe’s order directive also encourages prime contractors to use SwAM businesses for subcontracts and requires them to come up with a procurement plan.