Virginia Gov. Tim Kaine signed an executive order Thursday to encourage state agencies to contract with small, women-owned and minority-owned businesses.
“I am making it a priority to see that every company — regardless of size, regardless of who owns it — has the opportunity to compete on a level playing field to secure state government contracts,” Kaine said.
State agencies spent $27.8 million, or 2.3 percent, in contracts with minority-owned businesses; $24.6 million, or 2 percent with women-owned businesses; and $123.9 million, or 10.2 percent, with small businesses in the last quarter of fiscal 2006.
Results of a 2004 Disparity Study by MGT, covering 1998 to 2002, showed 0.44 percent of the state’s procurement money went to minority-owned businesses and 0.83 percent went to women-owned businesses, said Stacy Burrs, director of the Department of Minority Business Enterprise.
“The company that did the Disparity Study on the commonwealth said it was among the lowest, if not the lowest, of the 100 disparity studies they have conducted,” Burrs said. “Any self-respecting government in place to represent all the people is duly bound to improve on that kind of performance.”
The department is trying to streamline the procurement process, establish competitive bidding for small, women- and minority-owned businesses and enforce penalties for contractors and agency heads who do not diversify their contracting, Burrs said.
Bill Reagan, director of Alexandria’s Small Business Development Center, applauded the governor for “putting the state in the mindset to do more business with small business” and simplifying the state certification process.
