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The new data dashboard helps the public and state leaders track progress on aggressive goals for increasing contracting with diverse businesses
11/1/2018 11:08:01 AM
Saint Paul — The State of Minnesota is launching a new online tool to help contractors and state agencies track indirect spending with businesses owned by minorities-, women, veterans, economically disadvantaged, and people with disabilities. The new system will track how much large and majority-owned state vendors spend with subcontractors (Tier II businesses). The state already tracks the amount it spends directly with small, certified businesses.
The Tier II reporting system will enable large businesses to track and report the percentage of state contract dollars they subsequently spend with certified small businesses either as suppliers or as subcontractors. The state will require businesses awarded contracts over $500,000 to report such information.
Currently, the state only tracks direct spending with small contractors, missing the spending data when vendors partner or subcontract with other businesses hiding the true reach that public contracting dollars extend into the private sector. The Tier II reporting system will also allow state agencies see on-demand data for reporting and analysis.
“Many large businesses already prioritize supplier diversity and we want a way to recognize and incentivize those efforts,” said Department of Administration Commissioner Matt Massman. “Data from the Tier II reporting system will provide a clear picture of the supply chains used to meet state contracts and help us find more opportunities for small, diverse businesses.”
To help track progress, Admin will publish data from the system on a public dashboard available at mn.gov/admin/diverse-spend.
“We are excited that this new tool gives us insight into the impact public dollars have on diverse businesses in Minnesota,” said Assistant Commissioner Alice Roberts-Davis. “This data will help us hold ourselves more accountable and ensure the diversity in state spending matches the diversity of the state.”
The system was built by VIVA, a software company specializing in building procurement systems for government agencies. VIVA is a minority- and woman-owned business.
In addition, the state is moving to increase its diverse spend goals, which were set last year for the first time. The first goal increases all state spending on small, certified businesses from eight to ten percent. The second sets a 15 percent goal for overall state purchasing to be with minority, woman, economically disadvantaged, people with disabilities- and veteran-owned businesses regardless of business size; up from 12 percent.
“These goals are aggressive, but achievable,” said Commissioner Massman. “They increase our diverse spend for Minnesota businesses and put us on a path to eliminating historic disparities in state contracting.”There are now more than 1,300 small businesses certified as veteran-owned or targeted group businesses in Minnesota. The certification is based on the business's ownership by women, minorities, a 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 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) advises small businesses attempting to sell goods and services to the State. OEP helps level the playing field for small businesses — including small businesses owned by minorities, women, people with physical disabilities, and veterans — 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.
