Please ensure Javascript is enabled for purposes of website accessibility

Wolf administration expands contract eligibility for certain small businesses

The Pennsylvania Chamber of Business and Industry held a forum in October at the Crowne Plaza Harrisburg-Hershey hotel highlighting the benefits of partnering with small and diverse businesses. The event featured two panels. Pictured (left to right:) A. Bruce Crawley, president, CEO and principal owner of Philadelphia-based Millennium 3 Management Inc.; state Sen. Vince Hughes, D-Philadelphia; state Rep. Jordan Harris, D-Philadelphia; and CEO and President of Hispanic advertising agency Mendoza Group, Mia Mendoza. - (Photo / Submitted)

The Wolf administration has raised the annual revenue cap for small and small-diverse businesses hoping to compete for government contracts in Pennsylvania.

The state Department of General Services on Tuesday said the revenue threshold for the state’s small-business contracting program has been raised to $38.5 million — in line with the federal government.

The program was previously limited to small businesses with annual revenue of less than $7 million for building design services, $20 million for construction or procurement of goods and services, and $25 million for information technology goods and services.

The new cap applies across the board for all business types.

The revenue cap was cited at a recent forum held to highlight issues facing small, diverse businesses.

Troy Thompson, a spokesman for the Department of General Services, said it is unknown how many more businesses will be eligible under the higher cap.

But, he added: “We expect to see our largest increase in the IT category.” 

In order to bid for state contracts, a business must register as a supplier with the commonwealth. It can then start competing for contracting opportunities and pursue third-party small diverse business certification, which is required to be considered a verified small-diverse business in the commonwealth’s program.

Small-diverse businesses, or SDBs, are businesses owned by minorities, women, veterans, disabled veterans, individuals with disabilities and members of the LGBT community.

In the 2017-18 fiscal year, small and small-diverse businesses received almost $536.7 million, or 11.3 percent of state contract dollars. That was up from $406 million in 2016-17.

Business Events

Reader Rankings Awards

Monday, August 08, 2022
Reader Rankings Awards

Health Care Summit

Tuesday, August 16, 2022
Health Care Summit

Fastest Growing Companies

Monday, September 12, 2022
Fastest Growing Companies