Virginia recently passed House Bill HB61, which will help to establish the Small SWaM (Small, Women-owned, and Minority-owned) Business Procurement Enhancement Program. The new legislation codifies the existing SWaM program, adopted since 2014, following an executive order from the then-governor.

The legislation sets a statewide goal of achieving 42% utiliization rate of certified small SWaM businesses across multiple executive branches and covered agencies. The procurement participation can be increased by 3% annually until it reaches the target.

HB61 specifies a 50% participation of SWaMs in subcontracting on contracts, where the prime is not a SWaM. Additionally, the legislation establishes a SWaM set-aside for executive branch agencies and covered institutions for purchases between $10,000 and $200,000. The microbusinesses set-aside has been capped at $10,000.

The bill also includes a provision to establish the Division of Procurement Enhancement within the Department of Small Business and Supplier Diversity. It was done to aid coordination among various Commonwealth agencies to meet the goals set by the Small SWaM Business Procurement Enhancement Program and implement strategies to work toward the development of small businesses, microbusinesses, women-owned, minority-owned, and service-disabled veteran-owned businesses in the Commonwealth.

The Division of Procurement Enhancement will work with the Department of General Services, the Virginia Information Technologies Agency, the Department of Transportation, and the State Council of Higher Education of Virginia, among others. 

Finally, the bill has a provision for a disparity study to be conducted every five years into the experiences of women-owned and minority-owned businesses with the Commonwealth. The next one is due on January 1st, 2031.

As of writing this article, Governor Abigail Spanberg has vetoed the bill, noting the bill’s amendments would exclude previously eligible women- and minority-owned businesses, and reduce the state’s SWaM spending by at least $340 million.