Saint Paul – The Minnesota Department of Administration announced today that it will enhance the ability of many small businesses to compete for state contracts. Starting July 1, 2018, small businesses owned by veterans, women, minorities, or people with physical disabilities will see existing preferences apply to a larger portion of the contract's value. The increase also applies to small businesses located in economically disadvantaged areas of the state.

"Increasing competition for public contracts helps get the best price and value in state contracting," said Commissioner Matt Massman. “These changes will give more small businesses a real chance at competing for state contracts.”

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 $1 million since 2015 (the cap had been at 500,000 of a contract's value since 1999). On July 1, that cap will increase to apply to $2 million of contract value.

“The State of Minnesota is committed to contracting practices that eliminate disparities and providing a fair and equitable playing field for small businesses owned by women, minorities, people with physical disabilities, or veterans,” said Commissioner Matt Massman. “Updating preference caps is one more way to meet our goal of equitable procurement.”

There are now more than 1,300 small businesses 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 (Admin) 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 https://mn.gov/admin/business/vendor-info/.

Admin also provides assistance to small businesses looking to compete for public contracts through the following two offices:

Admin’s Procurement Technical Assistance Center (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.

Admin’s Office of Equity in Procurement (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.

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