Pennsylvania Gov. Josh Shapiro signed an executive order Tuesday aimed at increased opportunities for small businesses and small diverse businesses as they compete for state contracts.
The executive order will also take steps to make the state procurement process more accessible and help small businesses grow the economy.
“We need to do more to help our small and small diverse businesses compete for state dollars,” Shapiro said. “That will require policies like those I’m announcing today, but most importantly, it will require a Governor who gives a damn and makes sure these businesses are part of our collective progress. It’s not just the right thing to do – it’s the smart thing to do. By supporting our small diverse businesses, we’ll not only grow our economy and strengthen our communities – we’ll also create more competition for Commonwealth business and secure higher quality products and better results for all Pennsylvanians.”
Shapiro’s Executive Order 2023-18 expands on an executive order signed under the previous administration that increased the total commonwealth spends on contracts with small diverse businesses from 4.9 percent to 11.3 percent. Under the new executive order, the Department of General Services (DGS) would lead and coordinate efforts with agencies to increase their total operational spend and participations in Pennsylvania’s Small Business Reserve (SBR) program. The DGS would also be directed to foster more competitive procurement and increase the amount of money that goes into the hands of small and small diverse businesses, the governor’s office said.
The order went into effect upon Shapiro’s signing. Immediately, DGS is to develop new methodology for determining the revenue limit for small businesses in order to increase the number of businesses that qualify for the program. Secretary Reggie McNeil will update the revenue limit defining a small business from $38.5 million to $47 million, DGS said.
The Executive Order also establishes the Pennsylvania Advisory Council for Inclusive Procurement (PACIP) charged with advising Pennsylvania agencies in ways to make state contracting opportunities more inclusive.
“Since day one of this Administration, Governor Shapiro has prioritized the need to improve the experience for Pennsylvania’s small business community and widen the gate of opportunity to state contracts,” McNeil said. “With that mandate, DGS has held 18 stakeholder events to engage close to 800 small businesses Commonwealth-wide, and I have personally met with countless potential vendors and partners. Based on the feedback that we have received from these interactions, I am certain that this new Executive Order is going to fill many gaps for our small business community. Actions like this will continue changing the narrative around doing business with the Commonwealth and build up Pennsylvania’s small business community – and we are moving at the speed of business.”