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Equitable Procurement

The State of Minnesota has a part in creating a fair and equitable playing field for small businesses. The network of vendors from which the State purchases its goods and services should reflect the diversity of Minnesota’s vibrant business community. Diverse businesses often have deep roots in their local communities. By opening opportunities to a broader spectrum of Minnesota’s businesses, the State can reduce economic disparities, promote equal access to resources and opportunities, and contribute to building thriving communities. A diverse pool of suppliers available to state and local purchasers also creates value by fostering competition that ultimately provides the best pricing and higher quality products reducing economic disparities and promoting equal access to resources and opportunities. 

From state fiscal years 2018-2022, state agencies spent nearly $600 million with certified small businesses. The State plans to increase our total spend more to over $810 million from state fiscal years 2023-2027. To do so requires a commitment from all state agencies which will in turn support the livelihoods of individuals within Minnesota’s diverse communities.  

Goal: The State of Minnesota’s annual procurement supports certified small businesses.

Measurable goal for 2027: Increase annual percent of diverse spend by 10% each year based on a 2020 baseline.

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Source: Minnesota Department of Administration

Technical notes: The baseline is pegged at SFY 2020, the midpoint of 2018-2022, for that reason the target initially decreases compared to SFY 2022 diverse spend. Diverse spend includes payments to certified small business (Targeted Group Businesses, Economically Disadvantaged and Veteran Owned) in these account classes: Art-Capital, Building-Improvement-Capital, Communications, Computer and System Services, Employee Development, Equipment, Equipment-Capital, Equipment-Non-Capital, IT/Prof/Tech O/S Vendor, Infrastructure-Capital, Other Operating Costs, Printing And Advertising, Prof-Tech Serv-Outside Vend, Repairs To Equip & Furniture, Space Rental And Utilities, Supplies.

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