Virginia House Bill HB966

Virginia 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Va. Public Procurement Act; executive branch agencies' goals for participation by small businesses.

Impact

This bill's implementation is expected to positively impact the landscape of state contracts by ensuring that a portion of government spending is directed towards small and service-disabled veteran-owned businesses. By designating specific set-aside programs, agencies will be compelled to engage these businesses, potentially leading to increased economic opportunities and equity in access to state contracts. The financial thresholds established for set-asides encourage smaller firms and micro-businesses, supporting local economies.

Summary

House Bill 966 amends the Virginia Public Procurement Act to establish specific goals for executive branch agencies regarding participation by small businesses, particularly service-disabled veteran-owned businesses. It mandates that each executive branch agency include a minimum of three percent participation from these businesses when contracting for goods and services. This measure aims to enhance inclusion and support for underrepresented business owners within state procurement processes.

Contention

During discussions surrounding HB 966, some legislators raised concerns about the feasibility of meeting the set participation goals given the existing market conditions and the qualifications required for businesses to obtain certification. Critics were worried that such mandates could unintentionally limit competitive bidding processes if not properly implemented, while supporters emphasized the importance of fostering diversity within state contracts and the moral responsibility to support veterans.

Final_note

The successful passage of HB 966 could represent a significant shift in how Virginia approaches public procurement, potentially serving as a model for other states aiming to improve participation rates of minority-owned businesses. By focusing specifically on service-disabled veterans, the bill highlights the commitment to support those who have served in the military while fostering small business growth.