Minnesota Creates More Veteran Owned Small Business Opportunities
Change in State Purchasing Policy Creates More Opportunities for Veteran Owned Businesses
The Minnesota Department of Administration announced it will enhance the ability of certain small businesses to compete for state contracts. The initiative began February 1st, when small businesses owned by women, minorities, people with physical disabilities, or veterans bid for state contracts, existing preferences will apply to a larger portion of the contract’s value. This increase also applies to small businesses located in economically disadvantaged areas of the state.
The State’s procurement preference programs aim to reduce disparities in state purchasing and contracting, as well as in the overall economy. Current law provides for a preference of up to six percent when qualified groups bid on state projects. But that preference has been capped at applying to only the first $500,000 of a contract’s value since 1999. On February 1, that cap increases to apply to $1 million of contract value, resulting in an increase from $30,000 to $60,000 in the maximum value of the preference.
This change can affect more than 1,000 small businesses that are currently certified as veteran-owned or targeted group businesses in Minnesota based on the business’s ownership by woman, minority, person with a disability, or by its location in an economically disadvantaged area.