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HB 1404STATE · VirginiaIntroduced

Small SWaM Business Procurement Enhancement Program; established, definitions, report.

Department of Small Business and Supplier Diversity; Small Business Procurement Enhancement Program and Women-owned and Minority-owned Business Procurement Enhancement Program established; report. Establishes the Small Business Procurement Enhancement Program with a statewide goal of 42 percent of certified small business utilization in all discretionary spending by state agencies and covered institutions in procurement orders, prime contracts, and subcontracts, as well as a target goal of 50 percent subcontracting to certified small businesses in instances where the prime contractor is not a small business for all new capital outlay construction solicitations that are issued. In addition, the bill provides for a small business set-aside for state agency and covered institution purchases of goods, services, and construction, requiring that purchases up to $100,000 be set aside for award to certified small businesses and that purchases up to $10,000 be set aside for award to microbusinesses. The bill also establishes the Women-owned and Minority-owned Business Procurement Enhancement Program with a statewide goal of 23.1 percent of certified women-owned and minority-owned business utilization in all discretionary spending by state agencies and covered institutions in procurement orders, prime contracts, and subcontracts. The bill creates the Division of Procurement Enhancement within the Department of Small Business and Supplier Diversity for purposes of collaborating with the Department of General Services, the Virginia Information Technologies Agency, the Department of Transportation, and covered institutions to further the Commonwealth's efforts to meet the goals established under the Small Business Procurement Enhancement Program and the Women-owned and Minority-owned Business Procurement Enhancement Program, as well as implementing initiatives to enhance the development of small businesses, microbusinesses, women-owned businesses, and minority-owned businesses in the Commonwealth. Finally, the bill amends the Virginia Public Procurement Act to permit public bodies to establish purchase procedures, if adopted in writing, not requiring competitive sealed bids or competitive negotiation for single or term contracts for the purchase or lease of goods, or for the purchase of services, insurance, or construction, if the aggregate or the sum of all phases is not expected to exceed $125,000. Under current law, such purchase procedures may only be established for (i) goods and services other than professional services and non-transportation-related construction, if the aggregate or the sum of all phases is not expected to exceed $200,000; (ii) transportation-related construction, if the aggregate or sum of all phases is not expected to exceed $25,000; and (iii) professional services, provided that the aggregate or the sum of all phases is not expected to exceed $80,000. The bill has a general delayed effective date of January 1, 2025, and delayed effective dates of July 1, 2025, for covered institutions, and July 1, 2026, for certain university hospitals and medical centers. The provisions of the bill creating the Women-owned and Minority-owned Business Procurement Enhancement Program sunset on July 1, 2031.

Voted: 4/17/2024

How representatives voted

277 yea·95 nay·8 other

Action history

  • 4/17/2024Acts of Assembly Chapter text (CHAP0834)
  • 4/17/2024Enacted, Chapter 834 (effective - see bill)
  • 4/17/2024Signed by President as reenrolled
  • 4/17/2024Signed by Speaker as reenrolled
  • 4/17/2024Reenrolled bill text (HB1404ER2)
  • 4/17/2024Reenrolled
  • 4/17/2024Governor's recommendation adopted
  • 4/17/2024Senate concurred in Governor's recommendation (40-Y 0-N)
  • 4/17/2024VOTE: Adoption (64-Y 34-N 1-A)
  • 4/17/2024House concurred in Governor's recommendation (64-Y 34-N 1-A)