Harrisburg, PA – Today, the Shapiro-Davis Administration is delivering on a pledge to help Pennsylvania small businesses compete for and win more procurement opportunities, as the Pennsylvania Department of General Services (DGS) announces an additional $1.24 billion was spent on contracts with small businesses, small diverse businesses, and veteran-owned business enterprises for a second consecutive year. This surpasses the $1.1 billion spent in the 2022-23 fiscal year – and marks another record investment after Governor Josh Shapiro implemented commonsense improvements to the contracting process.
In addition to the record spending highlighted in the Bureau of Diversity, Inclusion, and Small Business Opportunities (BDISBO) 2023-24 Annual Report, DGS has spent the last year implementing improvements to its programs and policies administered by BDISBO that enhances the overall experience of small, small diverse, and veteran-owned businesses looking to do business with the Commonwealth and increase the number of opportunities available to them, including:
- Reducing the time it takes to certify a small business with DGS by 33%.
- Implementing a prompt pay policy to ensure non construction prime contractors pay subcontractors within 10 days of receiving payment from the Commonwealth.
- Implementing a new communication practice to proactively notify over 5,000 registered small businesses and over 300 small business advocates and stakeholder organizations of upcoming procurement opportunities.
- Partnering with the Department of State to collect voluntarily submitted information from businesses so that BDISBO can determine if they qualify as SBs, SDBs, or VBEs and connect interested businesses with Commonwealth contracting opportunities.
- Conducting 64 virtual and in-person outreach events that reached over 3,000 participants across Pennsylvania aimed at educating the small business community on how to do business with the Commonwealth.
- Launching a mentor-protege program to connect 12 Pennsylvanian small businesses with six prime contractors to equip them with the tools they need to better compete for state contracts.
- Implementing a new virtual business development training curricula containing six modules on the Commonwealth’s procurement process and policies for small businesses to access at no cost.
The Shapiro-Davis Administration’s work to create opportunities for small, small diverse, and veteran-owned businesses also helps the Commonwealth deliver the most effective services for Pennsylvanians. Instead of setting uniform targets for spending, the Shapiro-Davis Administration has launched a series of targeted efforts to help small, small diverse, and veteran-owned businesses submit successful bids and deliver better services for Pennsylvanians.
“Small businesses are the economic engines and lifeblood of our communities, and they represent more than 99 percent of the businesses here in Pennsylvania and across the country,” said Lt. Governor Austin Davis. “As we’ve travelled the Commonwealth, Governor Shapiro and I have heard over and over again that small-business owners want a level playing field to compete for state contracts. That’s why we’re focusing on reaching out to small businesses, updating our policies and creating innovative programs that help small businesses learn how they can be successful with procurement opportunities. We’re encouraged by the progress we’re making and thrilled that our efforts are generating nearly 12,000 jobs.”
“This record-breaking $1.24 billion investment in small, diverse, and veteran-owned businesses reflects the Shapiro-Davis Administration’s unwavering commitment to fostering economic growth across the Commonwealth,” said DGS Secretary Reggie McNeil. “By reducing certification times, implementing prompt pay policies, and hosting events like the Small Business Empowerment Summit, we are breaking down barriers and creating real opportunities for these businesses to thrive. This is about more than contracts—it’s about building stronger communities, creating jobs, and ensuring every business has a fair shot at doing business with the Commonwealth.”
The 2023-24 report highlights increased payments for small businesses (SBs), small diverse businesses (SBDs), and veteran business enterprises (VBEs) that continue to spur economic growth across the Commonwealth:
- Spending with SDBs and VBEs reached a new high of $692 million, which includes a 10 percent increase in combined spending with Black American- and Hispanic American-owned small businesses from $136.2 during the 2022-23 fiscal year to $150.7 million during the 2023-24 fiscal year.
- SBs (excluding SDBs and VBEs) received $548 million in payments, which represents about 9.5 percent of total Commonwealth spending for goods and services during the 2023-24 fiscal year. That is up from $447 million, or about 8 percent of total Commonwealth spending for goods and services during the prior fiscal year.
- The Commonwealth’s total spending with SBs resulted in an estimated economic impact of 11,600 jobs, $180 million in federal taxes, and $115 million in state and local taxes.
DGS also announced the appointment of Dr. Erica Patterson to the leadership role of overseeing BDISBO’s work as Deputy Secretary for Diversity, Inclusion, and Small Business Opportunities. Dr. Patterson is an experienced supply chain management and supplier diversity executive with 20+ years of experience across private and public sectors. Since 2015, she has been Director of Contracts Management and Supplier Diversity at Philadelphia Gas Works (PGW), managing budgets exceeding $150M for professional and non-professional services while actively fostering the engagement and integration of diverse, local, and small businesses.
“Small and diverse businesses are the backbone of our local economies - creating jobs, leveraging local suppliers, and fueling economic empowerment in their communities,” said Speaker of the House Joanna McClinton. “Dr. Patterson brings with her decades of experience and is well positioned to advance Pennsylvania’s efforts to diversify and strengthen our state’s economy. My colleagues and I look forward to working with her to make our commonwealth stronger.”
“The PA Legislative Black Caucus applauds the appointment of Dr. Erica Patterson to lead BDISBO. Her extensive experience in supplier diversity and procurement will be invaluable in advancing the work of BDISBO, ensuring that small, diverse, and veteran-owned businesses have a real and fair shot at success,” said Representative Napoleon Nelson. “The Shapiro-Davis Administration’s efforts to expand access and level the playing field reflect a shared vision for a stronger, more inclusive economy—one where every business, regardless of size or background, can thrive.”
Over the last two years, the Shapiro-Davis Administration has continued to introduce forward-thinking programs and initiatives aimed at increasing state spending with SBs, SDBs, and VBEs and connecting more of these businesses to Commonwealth contracting opportunities while ensuring they meet strict legal requirements.
During the 2023-24 fiscal year, for example, DGS launched a program that enables the Commonwealth to support Pennsylvania-based small businesses by purchasing more products from them through an innovative partnership with a major online retailer. Additionally, in September 2024, the Shapiro-Davis Administration teamed up with former U.S. Senator Bob Casey to host the Commonwealth’s second annual Small Business Empowerment Summit, bringing together nearly 500 small business owners, government and nonprofit leaders, and procurement specialists for a day of collaboration and insight. Finally, DGS commissioned an updated disparity study that examines the utilization and availability of SDBs and VBEs in the Commonwealth’s contracting environment to determine if disparities exist. The disparity study ensures that the BDISBO program meets strict constitutional standards as set forth by the U.S. Supreme Court.
Governor Shapiro’s Executive Order 2023-18 established the Pennsylvania Advisory Council for Inclusive Procurement (PACIP) to recommend industry best practices while holding Commonwealth agencies accountable in making the procurement process more accessible so that more Pennsylvanian businesses can compete for state contracts. PACIP is chaired by Lt. Gov. Davis with Vice-Chairs DGS Secretary Reggie McNeil and Pennsylvania Department of Transportation (PennDOT) Secretary Mike Carroll.
For more information about DGS Bureau of Diversity, Inclusion and Small Business Opportunities, visit the Department of General Services website.