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1/20/2015 10:14:43 AM
ST. PAUL - The Minnesota Department of Administration announced today that it will enhance the ability of certain small businesses to compete for state contracts. Starting February 1, when small businesses owned by women, minorities, people with physical disabilities, or veterans bid for state contracts, existing preferences will apply to a larger portion of the contract's value. This increase also applies to small businesses located in economically disadvantaged areas of the state.
"This action will ensure that veterans who have honorably served our country and small businesses that have historically been under-represented in state procurement will have a more realistic opportunity to compete for state contracts," said Commissioner Matt Massman.
The State's procurement preference programs aim to reduce disparities in state purchasing and contracting, as well as in the overall economy. Current law provides for a preference of up to six percent when qualified groups bid on state projects. But that preference has been capped at applying to only the first $500,000 of a contract's value since 1999. On February 1, that cap will increase to apply to $1 million of contract value, resulting in an increase from $30,000 to $60,000 in the maximum value of the preference.
"The disparities in our economy are real and many of our citizens were hit exceptionally hard during the recession," explained Commissioner Massman. "We have a commitment to ensuring that all Minnesotans can share in the state's economic recovery."
More than 1,000 small businesses are currently certified as veteran-owned or targeted group businesses in Minnesota based on the business's ownership by woman, minority, person with a disability, or by its location in an economically disadvantaged area.
The Department of Administration oversees state procurement, including more than $2 billion in state purchases each year. State law has provided for a targeted group preference program since 1990. Additional information about state purchasing programs can be found online at mn.gov/admin.
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Contact: Adam Giorgi