Public Procurement Act; small, women, minority, and service disabled veteran-owned businesses. (HB615)

Introduced By

Del. Matt Lohr (R-Harrisonburg)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

 Virginia Public Procurement Act; small, women-owned, minority-owned, and service disabled veteran-owned business.  Provides that for the solicitation or awarding of contracts with small, women-owned, minority-owned, or service disabled veteran-owned businesses, all public bodies shall include in every such contract the following provision: "During the performance of this contract, the contractor agrees that no more than 20 percent of the contracted work will be subcontracted to any business that does not meet the definition of small, women-owned, minority-owned, or service disabled veteran-owned business, except where there is a bona fide occupational qualification reasonably necessary to the normal operation of the contractor. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth these requirements. The bill provides that notices, advertisements, and solicitations placed in accordance with federal law, rule, or regulation shall be deemed sufficient posting. The bill contains technical amendments. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/12/2010Committee
01/12/2010Prefiled and ordered printed; offered 01/13/10 10103809D
01/12/2010Referred to Committee on General Laws
01/19/2010Assigned GL sub: #2 FOIA/Procurement
01/21/2010Subcommittee recommends passing by with letter (6-Y 0-N)
01/26/2010Passed by in General Laws with letter

Comments

CG2 Consulting, tracking this bill in Photosynthesis, notes:

This bill imposes on SWAM businesses a requirement that they do 80% of the work on any state contract that they receive. This limits the ability of SWAM businesses to engage in joint ventures with larger businesses as a means of growing their businesses. 98% of VA businesses are small businesses eligible for SWAM certification. If there's a problem with sham transactions, that should be dealt with as an enforcement matter. It is unfair to tell a SWAM business that 80% of a contract they received must be performed by SWAM businesses while imposing no participation requirement on non-SWAM businesses. This is particularly true where the first phase of the updated state disparity study continues to show that small, women and minority owned businesses are not getting their fair share of the state's business in relation to their ability to perform.