HARRISBURG, Pa. (WENY) - Today, Governor Josh Shapiro signed an executive order to give more small businesses a seat at the table when it comes to contracts and partnerships with the Commonwealth. 

According to the administration, today’s action increases opportunities for small and small diverse businesses to compete for state contracts, while making the commonwealth procurement process more accessible. 

“We need to do more to help our small and small diverse businesses compete for state dollars,” said Governor Shapiro. “By supporting our small diverse businesses, we’ll not only grow our economy and strengthen our communities – we’ll also create more competition for Commonwealth business and secure higher quality products and better results for all Pennsylvanians,” he added. 

Reforming procurement practices and empowering small business were major promises on the campaign trail for the Shapiro-Davis Administration. Gov. Shapiro says today’s order delivers on that promise. 

“Many of the entrepreneurs here, and others in other parts of this Commonwealth, have told me about how they built successful businesses. They've also told me how it's still too hard to compete for state work- the sort of work the government's looking for that you're set up to do, but there's too many barriers to entry,” said Gov. Shapiro. “You've told me how the process is just too darn difficult, too confusing. You feel like it's too hard to compete against some of the big businesses out there who just seem to win those contracts again and again and again,” he added. 

The order directs the Department of General Services (DGS) to lead and coordinate efforts with agencies to increase their total operational spend and participation in the Commonwealth’s Small Business Reserve (SBR) program. DGS is required to develop a new methodology for determining the revenue limit for small businesses. According to the administration, DGS will update the Commonwealth’s definition of a small business by raising the revenue limit from $38.5 million to $47 million, meaning more businesses will qualify as small businesses. 

Businesses that can access the opportunities are:  

  • Small Businesses: 100 or less full-time employees who bring in less than an average of $47 million over three years. 
  • Small Diverse Business: Third-party-certified as being owned by women, minorities, individuals with disabilities and members of the LGBTQ community, as well as meeting the qualifications for a small business above. 
  • Veteran Business Enterprise: Veteran owned businesses that also meet the qualifications for a small business. 

The executive order instructs state agencies to provide key technical and capital access support to these businesses. It also establishes the Pennsylvania Advisory Council for Inclusive Procurement (PACIP) to advise Commonwealth agencies on ways to make state contracting opportunities more inclusive