Governor Shapiro’s recent Executive Order, 2023-18, aims to enhance opportunities for small and small diverse businesses in state contracts, ultimately driving their growth and creating more well-paying jobs. With the Commonwealth’s commitment to empowering small businesses, the Department of General Services (DGS) has already implemented measures, including streamlined certification processes and prompt payment policies. This order further directs DGS and other agencies to increase operational spending on small diverse businesses and participate in the Small Business Reserve program. By raising the revenue limit for small businesses, more businesses will now qualify for these opportunities. Additionally, the establishment of the Pennsylvania Advisory Council for Inclusive Procurement (PACIP) will provide guidance on making state contracting more inclusive. DGS and PennDOT will collaborate to improve the contracting environment and offer support to small businesses interested in competing for state contracts. Transparency and accountability are emphasized through the posting of semiannual data on each agency’s spend for Small Business Reserve procurements. Ultimately, the goal is to foster an inclusive and accessible contracting environment while increasing participation in mentor-protegee programs and enhancing online interactions between small businesses and the Commonwealth.

Executive Order 2023-18

Purpose of the Executive Order

Governor Josh Shapiro signed Executive Order 2023-18 with the purpose of increasing opportunities for small and small diverse businesses to compete for state contracts. The ultimate goal is to help these businesses grow, succeed, and create good-paying jobs. This Executive Order is part of Governor Shapiro’s commitment to empowering small businesses and small diverse businesses throughout the Commonwealth.

Governor Shapiro’s commitment to empowering small businesses

Governor Shapiro has long been a strong advocate for small businesses. He recognizes the vital role they play in driving economic growth and creating job opportunities. Through Executive Order 2023-18, Governor Shapiro reaffirms his commitment to supporting and empowering small businesses, ensuring they have an equal chance to compete for state contracts and contribute to the economic prosperity of Pennsylvania.

Increasing opportunities for small and small diverse businesses in state contracts

Executive Order 2023-18 aims to increase the participation of small and small diverse businesses in the state procurement process. The Commonwealth has made significant progress in this regard, with the total spending on contracts with small diverse businesses increasing from 4.9% in 2015 to an impressive 11.3% in 2022. However, there is still room for improvement, and this Executive Order lays out several measures to further enhance opportunities for small and small diverse businesses.

Progress in Increasing Contract Spending

Increase in total spending on contracts with small diverse businesses

One of the notable achievements in the Commonwealth is the increase in total spending on contracts with small diverse businesses. This demonstrates the commitment of Governor Shapiro and his administration to create a more inclusive procurement process. By increasing the amount of contracts awarded to small diverse businesses, the Commonwealth not only supports the growth of these businesses but also fosters diversity and representation within its procurement practices.

Yearly percentages of spending on small diverse businesses

The yearly percentages of spending on small diverse businesses provide a clear picture of the progress made in recent years. Starting at 4.9% in 2015, the Commonwealth has consistently increased the proportion of state contract spending allocated to small diverse businesses. By 2022, this percentage had risen to an impressive 11.3%. This upward trend is a testament to the dedication of Governor Shapiro and his administration to providing equal opportunities for businesses of all sizes and backgrounds.

Support Measures Implemented by DGS

Reducing certification time for small businesses

To facilitate the participation of small businesses in the procurement process, the Department of General Services (DGS) has implemented measures to reduce the time it takes to certify a small business. This streamlined certification process ensures that small businesses can navigate the procurement requirements more efficiently, making it easier for them to compete for state contracts. By reducing certification time, DGS is removing a significant barrier for small businesses and opening doors to new opportunities.

Implementation of a prompt pay policy

Another support measure implemented by DGS is the prompt pay policy. This policy ensures that small businesses receive timely payments for their goods and services provided to the Commonwealth. Prompt payment is crucial for the cash flow and overall financial stability of small businesses. By implementing this policy, the Commonwealth demonstrates its commitment to fair and transparent business practices, which in turn fosters trust and strengthens the relationship between small businesses and the government.

Operational Spend on Small Diverse Businesses

Directives to increase operational spend on small diverse businesses

The Executive Order directs various agencies, including DGS, to increase their operational spend on small diverse businesses. This means that these agencies will actively seek out and prioritize contracting opportunities with small diverse businesses, allocating a significant portion of their resources to support these businesses. This effort not only enhances the economic well-being of small diverse businesses but also promotes diversity and inclusion in government procurement practices.

Participation in the Small Business Reserve program

As part of the Executive Order, agencies are encouraged to participate in the Small Business Reserve program. This program sets aside a portion of state contracts exclusively for small businesses. By participating in this program, agencies can ensure that a fair share of their contracts is allocated to small businesses, providing them with a platform to showcase their capabilities and contribute to the growth of Pennsylvania’s economy. The Small Business Reserve program creates a level playing field and helps small businesses thrive in the competitive marketplace.

Expansion of Small Business Qualifications

Raising the revenue limit for small businesses

To further encourage the growth of small businesses, Executive Order 2023-18 raises the revenue limit for small businesses from $38.5 million to $47 million. By increasing the revenue limit, more businesses will qualify for the benefits and opportunities available to small businesses. This expansion ensures that a broader range of businesses can access the resources and support provided by the Commonwealth, leading to increased job creation and economic prosperity.

Benefits of raising the limit

Raising the revenue limit for small businesses brings several benefits. Firstly, it provides more businesses with access to government contracts, allowing them to expand their operations and increase their customer base. Secondly, raising the limit encourages entrepreneurship and innovation by making it easier for businesses with a higher revenue ceiling to qualify as small businesses. Finally, this expansion promotes a more vibrant and diverse business landscape, fostering healthy competition and driving economic growth in Pennsylvania.

Pennsylvania Advisory Council for Inclusive Procurement

Establishment of PACIP

To ensure that state contracting opportunities are more inclusive and accessible to all businesses, the Executive Order establishes the Pennsylvania Advisory Council for Inclusive Procurement (PACIP). This council will serve as an advisory body, providing guidance and recommendations to Commonwealth agencies on how to improve the diversity and inclusivity of their procurement processes. PACIP brings together experts and stakeholders to collaborate and devise strategies that promote fairness, equity, and equal opportunity in state contracts.

Role of PACIP in advising Commonwealth agencies

PACIP will play a vital role in advising Commonwealth agencies on inclusive procurement practices. The council will assess current practices, identify areas for improvement, and provide recommendations to ensure that state contracting opportunities are available to a diverse range of businesses. By leveraging the expertise and insights of council members, Commonwealth agencies can make informed decisions and implement policies that drive meaningful change in the procurement landscape.

Collaboration between DGS and PennDOT

Improving the contracting environment

To enhance the contracting environment for small businesses, the Executive Order emphasizes collaboration between DGS and the Pennsylvania Department of Transportation (PennDOT). By working together, these agencies can leverage their respective expertise and resources to create a more favorable and supportive environment for small businesses competing for state contracts. This collaboration includes sharing best practices, streamlining processes, and implementing initiatives that remove barriers and promote equal opportunities.

Providing support to small businesses

Through the collaboration between DGS and PennDOT, small businesses will receive increased support throughout the procurement process. This support can range from providing guidance on contract requirements to facilitating networking opportunities with potential prime contractors. By actively engaging with small businesses and addressing their unique needs, the Commonwealth demonstrates its commitment to fostering a thriving small business community and promoting economic prosperity.

Transparency and Accountability

Posting semiannual data on operational spend

Transparency and accountability are critical aspects of an inclusive contracting environment. The Executive Order mandates that DGS posts semiannual data on each agency’s operational spend for Small Business Reserve procurements. This data will be available to the public, ensuring transparency in the allocation of state contracts. By making this information accessible, stakeholders can monitor the progress and hold the government accountable for its commitment to inclusive procurement practices.

Importance of transparency and accountability

Transparency and accountability foster trust and confidence in the procurement process. When businesses and the public have access to information on contract spending, they can better understand how the government supports small businesses and diverse suppliers. Transparent practices also provide an opportunity for feedback and improvement. By holding the government accountable, stakeholders can actively contribute to the development of more effective and equitable procurement practices.

Creating an Inclusive Contracting Environment

Goal of inclusivity and accessibility

The overarching goal of Executive Order 2023-18 is to create an inclusive and accessible contracting environment. This means ensuring that all businesses, regardless of size or background, have an equal opportunity to compete for state contracts. By striving for inclusivity and accessibility, the Commonwealth can tap into a wider pool of talent and expertise, promoting diversity in its supplier base and stimulating economic growth that benefits all Pennsylvanians.

Increasing participation in mentor-protegee programs

The Executive Order encourages increased participation in mentor-protegee programs. These programs foster mutually beneficial relationships between established businesses and small diverse businesses, providing mentorship, guidance, and support. By leveraging the knowledge and experience of established businesses, small diverse businesses can enhance their capabilities and competitiveness. Mentor-protegee programs promote collaboration, knowledge sharing, and long-term success for small diverse businesses in the state contracting arena.

Improving online interactions with the Commonwealth

To ensure accessibility and ease of interaction, the Executive Order emphasizes the importance of improving online interactions between small businesses and the Commonwealth. Enhancements to online platforms and portals make it easier for businesses to navigate the procurement process, access valuable information, and submit required documentation. By simplifying and streamlining online interactions, the Commonwealth removes barriers and creates a more user-friendly experience for small businesses, enabling them to participate more effectively in state contracts.

In conclusion, Executive Order 2023-18 reflects Governor Josh Shapiro’s commitment to empowering small and small diverse businesses in Pennsylvania. By increasing opportunities, improving support measures, expanding small business qualifications, and prioritizing inclusivity, the Commonwealth aims to create an environment that fosters economic growth, job creation, and diversity. Through collaboration, transparency, and accountability, Pennsylvania is taking significant steps towards building a more inclusive and accessible contracting environment that benefits all businesses and drives the continued prosperity of the Commonwealth.

Source: https://world.einnews.com/article/654607783/HbbAuDbSD3Y6_qBT?ref=rss&ecode=N2CJUMlo4fYPjUID