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MBE Empowerment

April 28, 2023

Don Walsh

An agency may make small procurements in accordance with regulations adopted by primary procurement agencies. However, all small procurements must seek competition to the extent practicable and each procurement agency must solicit bids or offers from a sufficient number of certified minority-owned business enterprises (MBEs) and attempt to solicit bids or offers from small businesses. House Bill 543 (passed) raises the maximum dollar value threshold for most “small procurements” from $50,000 to $100,000, including for (1) specified service contracts that generate revenue and (2) independent medical evaluations and physician testimony on behalf of the State Retirement Agency.

The biennial statewide MBE goal is established by the Special Secretary for the Governor’s Office of Small, Minority, and Women Business Affairs (GOSBA), in consultation with the Secretary of Transportation and the Office of the Attorney General. The current goal is 29% of the total value of contracts awarded, with applicable sub goals for women and minority-owned businesses. The MBE program is scheduled to terminate July 1, 2024. Senate Bill 334/House Bill 809 (both passed) extend the termination date for the MBE program by one year, to July 1, 2025, extend the due date for the related disparity study also by one year, to September 30, 2024, and make corresponding adjustments to the termination and due dates for MBE contracting requirements and related disparity analyses.

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