Saint Paul — New state purchasing goals implemented by the Minnesota Department of Administration (Admin) will provide more opportunities for businesses that have traditionally been underrepresented in state contracting.

At least eight percent of all state purchasing will be with certified minority, woman, economically disadvantaged, and veteran owned small businesses. In addition, the state has set a twelve percent goal of overall state purchasing to be with minority, woman, economically disadvantaged and veteran-owned businesses regardless of business size.  The state already has a statutory commitment of 25 percent of state purchasing to be done with small businesses, regardless of ownership make-up.

“This is the first time the State of Minnesota has established a goal for contract spending dedicated to diverse businesses,” said Commissioner of Administration Matt Massman.  “This action sets a clear standard against which the public can hold us accountable, as well as and establishes metrics that state agencies can use to measure supplier diversity."                                                                   

In addition to new purchasing goals, Admin is implementing a new reporting system in which majority-owned businesses will report on their contracting levels with diverse businesses. This Tier II reporting system, which is frequently used in the private sector to drive supplier diversity, will begin on September 1, 2017 for State contracts valued at or above $1 million.

“Tier II Reporting has been a proven success in private sector supplier diversity initiatives and is very important to the growth of the State’s program,” said Assistant Commissioner Alice Roberts-Davis. “This reporting will allow the State to emphasize the importance of diversity and inclusion with all of our vendors.”

Minnesota state law provides for strategies to eliminate historic disparities in state contracting, and promote state contracting with all small businesses. By setting a transparent goal for contracting with small businesses and tracking Tier II spend, the State of Minnesota intends to create opportunities for all vendors, regardless of the size, location, or makeup of the business. The Small Business Certification Program certifies small businesses owned by women, minorities, veterans, people with substantial physical disabilities, or small businesses located in economically disadvantaged areas.

Under Governor Dayton’s Executive Order 16-01, Admin and its community and State agency partners have implemented a wide variety of improvements that have led to real increases in diverse contracting. Admin supports Minnesota’s businesses in competing for public contracts through the Minnesota Procurement Technical Assistance Center (PTAC) and Office of Equity in Procurement (OEP).

PTAC assists businesses by providing individualized technical assistance in navigating local, state, and federal contracting requirements as well as performance assistance. Expertise provided by PTAC business counselors includes market identification, registration assistance, contracting regulations/compliance assistance, and ongoing technical support throughout the procurement process. PTAC counselors conduct year-round training sessions across the state to help businesses hone essential business skills.

OEP counsels small businesses, including small businesses owned by minorities, women, people with physical disabilities, and veterans attempting to sell goods and services to the State. OEP helps level the playing field for small businesses by ensuring they are aware of contract opportunities, have the information and technical assistance they need to respond to solicitations and have an equitable opportunity to achieve a successful business relationship with the state.

---

For additional information: 
Curt Yoakum, Assistant Commissioner 
(651) 201-2771 
curtis.yoakum@state.mn.us