Harrisburg, PA – Delivering on a key campaign promise, the Shapiro-Davis Administration is boosting the amount the Commonwealth spends with small diverse businesses (SDBs) and set a new record during 2022-23, with nearly $700 million going to vendors and contracts with SDBs and veteran business enterprises (VBEs) last fiscal year.
“Governor Shapiro and I recognize that small businesses and small, diverse businesses are the backbone of our economy and the beating heart of communities across the Commonwealth," said Lt. Gov. Austin Davis, who chairs the Pennsylvania Advisory Council for Inclusive Procurement (PACIP). “When we took office, we pledged to increase and open up new doors of opportunities for these businesses to compete for — and win — state contracts. I'm excited to see our efforts are already bearing fruit, but there is still much more work to be done, as we work to expand economic opportunity and help Pennsylvania families build generational wealth."
The Department of General Services (DGS), which handles all state procurement and contracts, announced that the Commonwealth spent $691 million with SDBs and VBEs during the 2022-23 fiscal year, a significant increase over the $562 million spent in 2021-22. This record-breaking investment included an increase in spending with Black-owned and Latino-owned businesses, growing from $104 million in 2021-22 to $136 million in 2022-23.
"These record-breaking investments in small businesses reflect the Shapiro-Davis Administration's unwavering commitment to creating an inclusive economy. By empowering business owners of all backgrounds, we're not only fostering economic growth but also ensuring that the benefits of prosperity are shared across every community in Pennsylvania," said DGS Secretary Reggie McNeil. “This achievement is a testament to this administration's continued focus on building a stronger, more equitable Commonwealth."
Over the past year, the Shapiro-Davis Administration has taken the following actions to expand opportunities and improve the procurement process for small businesses in Pennsylvania:
- Launched an initiative to support Pennsylvania-based small businesses by purchasing more products from them through Amazon Business;
- Created a Mentor-Protégé Program to help small businesses compete for Commonwealth contracting opportunities;
- Updated Department of State business registration forms, to collect more information and share that info with DGS if a business qualifies as a small business, small diverse business or veteran business enterprise;
- Expanded the Commonwealth's definition of a small business to align with the U.S. Small Business Administration's definition and allow more businesses to qualify;
- Implemented a prompt pay policy, so subcontractors now must be paid within 10 days after a prime contractor receives payment from the state; and
- Reduced the time it takes for DGS to certify a small business.
In September 2023, Governor Josh Shapiro signed the executive order creating PACIP, a 16-member council that advises Commonwealth agencies on ways to make state contracting opportunities more inclusive. The Lieutenant Governor convened the council for its first meeting in December 2023 and has hosted quarterly meetings since then.
“Small and small diverse business owners in Pennsylvania face countless barriers when trying to do business with the Commonwealth," said Stephanie Turman, president of Always Busy Consulting and PACIP member. “We have been speaking out about these barriers for years, and we just want a fair shake. The Shapiro-Davis Administration took our concerns seriously, and they took action."
Since taking office, the Shapiro-Davis Administration has stepped up proactive communications efforts by:
- Holding 70 outreach events throughout the Commonwealth, reaching more than 3,000 participants, during the 2023-24 fiscal year;
- Sending monthly notices to more than 5,000 small businesses, stakeholders and small-business advocates about upcoming procurement and construction opportunities;
- Creating new business development and technical assistance training modules on the DGS website; and
- Hosting the Commonwealth's first-ever Small Business Empowerment Summit in 2023 and expanding the scope of this year's planned summit to include federal agencies.
"The strides the Shapiro-Davis Administration has made in supporting small diverse businesses are the result of intentional, strategic actions to level the playing field. Through innovative initiatives, consistent outreach, and a relentless focus on inclusion, we are breaking down barriers and opening doors to opportunities that were previously out of reach for many," said Kerry Kirkland, Deputy Secretary for DGS's Bureau of Diversity, Inclusion and Small Business Opportunities. “The Shapiro-Davis Administration is dedicated to creating an environment where small and diverse businesses can thrive and contribute to the vibrant economic fabric of our state."
Pennsylvania small businesses and small diverse businesses can find more information and resources at pa.gov/smalldiversebusiness.