Governor Terry McAuliffe has signed Executive Order Number 20 which will require state agencies to award over 42 percent of their contracts to small businesses or women and minority owned (SWAM) businesses. The executive order requires state contractors certify they are in compliance with the contract’s SWAM procurement plan before they can receive payment for services rendered. The Governor will also require state agencies to review contractors records of SWAM compliance before a contract is written or renewed.
McAuliffe is creating a new microbusiness designation within the small business certification for employers with 25 or fewer employees and less than 3 million in revenues. All state contracts under 10,000 dollars going forward must prioritize microbusinesses when feasible. More than 80 percent of Virginia’s SWAM businesses fit this criteria.