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Pa.’s small, diverse, and veteran businesses benefiting from billions in contract spending

Since 2015, more than $4.5 billion has been spent with Pennsylvania’s small, diverse, and veteran businesses through state contracts. For two years in a row, Gov. Tom Wolf’s administration has set records for contract spending with these businesses, including $995 million in Fiscal Year 2021. 

Wolf said in a statement that his administration has made supporting these businesses a top priority. 

“From the outset, we wanted to make the state contracting process more inclusive, equitable and fair for small businesses,” said Wolf. “Over the last seven years, we’ve put our money where our mouth is with multiple record-setting spending years. This is about building an economy that works for everyone – including the small businesses that power our communities.” 

 

The nearly $1 billion spent in Fiscal Year 2021 shattered the previous mark of $856 million set the year before and generated 10,000 new jobs. This FY spend with all small businesses represents an increase of 169% from 2015, when Wolf signed an executive order directing a coordinated and consistent effort to ensure diversity and inclusion in all contracting opportunities for small and diverse businesses throughout agencies under the governor’s jurisdiction. 

 

The executive order also established the Bureau of Diversity, Inclusion and Small Business Opportunities (BDISBO) to directly affect change for small businesses, veteran-owned businesses, and small diverse businesses – businesses owned by minorities, women, service-disabled veterans, individuals with disabilities and members of the LGBT community. 

 

“There is much to be proud of when it comes to our accomplishments in serving the small, small diverse and veteran business communities,” said Department of General Services (DGS) Acting Secretary Joe Lee. “The policies and programs we have been able to implement have laid a more than solid foundation that can be built upon for continued success in the years ahead.” 

 

The implementation of three policy/program changes in Fiscal Year 2020 was cited by Lee as a key point in the progress of BDISBO’s efforts. The changes are represented by the following: 

 

  • Small Business Reserve (SBR) that enabled small businesses to compete as prime contractors on specific procurements; 
  • implementation of goal setting for SDBs/VBEs to set minimum participation levels on goods, services and construction procurements; 
  • creation of the stand-alone Veteran Business Enterprise program that set participation goals specifically for these businesses. 

 

Kerry Kirkland, department of general services deputy secretary for diversity inclusion and small business opportunities, said a trend has been set in innovation and creativeness. 

 

“We have been able to commission the commonwealth’s first-ever Statewide Disparities Study; convene the first-ever DISBO Governor’s Advisory Council; and implement several other groundbreaking policies and programs to benefit small, small diverse and veteran businesses,” said Kirkland. “The future is truly bright for these business communities moving forward.” 

 

Program goals include conducting the follow-up to the disparity study; developing a capital and technical assistance program for small, small diverse and veteran-owned businesses; and continuing the promotion of legislation to statutorily establish BDISBO programs and policies.

Pennsylvania’s contracts with minority-owned companies on the rise

Nearly $800 million in state contracts were granted to small, diverse businesses in Pennsylvania last year, according to the governor’s office.

For the first time in Pennsylvania’s history, 11% of state spending on goods, services and construction went to small diverse businesses, according to a report by the Bureau of Diversity, Inclusion and Small Businesses Opportunities within the state Department of General Services.

Gov. Tom Wolf established the bureau in 2015 to create a more inclusive and fair state contracting environment for small businesses, and those owned by minorities, women, service-disabled veterans, individuals with disabilities and members of the LGBT community.

“This is fantastic news for Pennsylvania’s small and diverse business communities,” said Wolf. “We have taken some deliberate actions to increase the quantity and quality of state government contracting opportunities for small and diverse businesses and now they are beginning to pay off .”

Some of the statistics highlighted in the report include:

• 47% increase in state payments to small diverse businesses ($300 million to $485 million.)
• 46% increase in small business payments ($207 million to $303 million.)
• 557 small diverse businesses were awarded contracts, up from 488 in 2018.

Officials said a key to the success of the program was the commitment to using the best value contracting process to increase small diverse business participation in contracting opportunities.

Another aspect of the success of the program state officials cited was the selection of Early Morning Software, a small diverse minority- and woman-owned business based in Baltimore that implemented a software system handling major components of the program. The software uses self-certification and verification of small businesses and small diverse businesses, a goal-setting module utilizing existing data and contract compliance capabilities.

“The progress we’ve seen definitely brings us closer to our goal to do 26% of our business with small diverse businesses,” said state Department of General Services Secretary Curt Topper. “A priority for us moving forward will be to implement programs to aid us in expanding the number of registered small and diverse businesses we have available to take advantage of the contracting opportunities we’re creating and the way we track our spending with them

State spending with small and diverse businesses rises

Gov. Tom Wolf. PHOTO/FILE

Nearly $800 million in state contracts were granted to small, diverse businesses in Pennsylvania last year, according to the governor’s office.

For the first time in Pennsylvania’s history, 11% of state spending on goods, services and construction went to small diverse businesses, according to a report by the Bureau of Diversity, Inclusion and Small Businesses Opportunities within the state Department of General Services.

Gov. Tom Wolf established the bureau in 2015 to create a more inclusive and fair state contracting environment for small businesses, and those owned by minorities, women, service-disabled veterans, individuals with disabilities and members of the LGBT community.

“This is fantastic news for Pennsylvania’s small and diverse business communities,” said Wolf. “We have taken some deliberate actions to increase the quantity and quality of state government contracting opportunities for small and diverse businesses and now they are beginning to pay off.”

Some of the statistics highlighted in the report include:

  • 47% increase in state payments to small diverse businesses ($300 million to $485 million.)
  • 46% increase in small business payments ($207 million to $303 million.)
  • 557 small diverse businesses were awarded contracts, up from 488 in 2018.

Officials said a key to the success of the program was the commitment to using the best value contracting process to increase small diverse business participation in contracting opportunities.

“The progress we’ve seen definitely brings us closer to our goal to do 26% of our business with small diverse businesses,” said state Department of General Services Sec. Curt Topper. “A priority for us moving forward will be to implement programs to aid us in expanding the number of registered small and diverse businesses we have available to take advantage of the contracting opportunities we’re creating and the way we track our spending with them.”

State looking to rent space to wireless carriers

Small mobile antennas can be seen on a pole. (Photo: Getty Images)

Government officials are looking to rent extra space on state-owned communication towers, land and other public assets to third-party wireless providers at a fair market value, according to representatives of the Department of General Services.

Curt Topper, secretary of General Services, made the announcement Tuesday, saying renting of extra space to wireless providers will generate a significant revenue stream for the state as well as provide more wireless coverage to residents.

Topper said Pennsylvania is “poised to be in on the ground floor” as the cellular industry moves towards adopting Fifth Generation, or “5G” technology. He said the adoption of 5G will require the installation of more than 25,000 wireless cell devices across the state.

“We realize the revenue-generating opportunity the Commonwealth has in renting extra space on communications towers and assets to third-party wireless providers,” Topper said. “In addition to creating a revenue stream, we have the opportunity to contribute to more accessible and reliable wireless coverage across the Commonwealth.”

The Department of General Services created the Office of Enterprise Wireless Management to oversee the rental initiative, according to officials, and have entered into a 20-year contract with Ohio-based Agile Network Builders LLC to serve as its wireless-asset manager. The contract with Agile has the company analyzing the state’s wireless assets, marketing them for rental opportunities and determining a fair-market rental value.

Officials said the state could earn $100 million over the 20-year contract.

“Our decision to use the services of a wireless asset manager was based on the technical expertise needed to ensure this initiative was done properly,” Topper said. “We’ve taken a close look at similar asset-manager models used by New York, Florida, California and Ohio and believe our approach will put us in the best position to make this effort a success.”