Increased opportunities for small and minority-owned businesses

Gov. Timothy M. Kaine signed Executive Order 33 in 2006 to increase the number of small, women and minority-owned (SWAM) businesses that receive contracts from Virginia.

The order calls for the commonwealth to make 40 percent of its purchases from small businesses. VDBA, in conjunction with other agencies, is charged with creating methods to educate and develop SWAM businesses.

In accordance with the order, changes have been made to Virginia's purchasing policies. The Procurement Information Memoranda (PIM) 21 mandates that procurements up to $50,000 shall be set aside for certified small businesses. Purchases over $5,000 and up to $50,000 require that at least four small businesses be solicited by the purchasing agency. If the purchase is $5,000 or less, at least one small business must be solicited. All purchasing regulations are contingent upon a total cost estimate as defined in PIM 21.

A small business is defined as one with 250 or fewer employees, or $10 million or less in receipts averaged over three years. More information on Executive Order 33 can be found on the governor's Web site. For more information on PIM 21, please click here.