For Immediate Release: July 13, 2017
Contacts: Office of the Governor: Brian Coy, Brian.Coy@governor.virginia.gov | Department of General Services Contact: Dena Potter, (804) 786-0282, Dena.Potter@dgs.virginia.gov

Governor McAuliffe’s Policies Making Big Impact on Virginia-Based and Small Businesses

~eVA numbers show dramatic increase in state government spending with “micro” businesses and new, Virginia-based companies~

 

RICHMOND – Governor Terry McAuliffe today announced that government entities have spent over $500 million with Virginia’s smallest businesses under policies he created to help them compete for government business. Since McAuliffe took office in January 2014, more than $695 million in additional purchase orders have gone to new, Virginia-based businesses that registered in eVA, Virginia’s online marketplace for businesses to provide goods and services to state and local government bodies.

“One of my priorities in the new Virginia economy was the promotion of a diverse and vibrant private sector, particularly among our homegrown businesses and small, traditionally disadvantaged companies,” said Governor McAuliffe. “These encouraging results show our policies are expanding opportunity for Virginia businesses of all sizes.”

Many of these results can be attributed to Executive Order 20, which McAuliffe signed in July 2014 in an effort to expand contracting opportunities for small businesses in the Commonwealth. Provisions of EO20 include that it:

  • Established the Micro business designation  for companies with 25 or fewer employees and no more than $3 million in average annual revenue for the previous three years and established a $10,000 set-aside to make it easier for government to purchase from Micro businesses;
  • Increased the small businesses set-aside from $50,000 to $100,000 for goods and nonprofessional services when the price quoted is fair and reasonable;
  • Directed agencies to exceed a 42 percent contracting goal of expenditures – the highest goal in the Commonwealth’s history – with certified small businesses; and,
  • Required agencies that perform procurement functions to expand vendor outreach programs to encourage a diverse vendor base.

The results are made available through eVA, which makes it easier for businesses to get noticed, and also increases transparency by allowing anyone to see what government agencies and institutions are buying and from whom.

“The eVA enhancements we made to support Governor McAuliffe’s small business goals have resulted in a more inclusive procurement process by giving new and small companies better visibility to compete for government business,” said Chris Beschler, Director of the Department of General Services. “Through eVA’s transparency features, anyone can see past, current and future purchases, as well as detailed order and contract information.”

eVA shows the following results since Governor McAuliffe took office in 2014:

  • New, Virginia-based businesses that registered in eVA have received more than $695 million in purchase orders from Virginia public bodies. This includes an increase from $5 million in FY13 to $258.5 million in FY17.

  • Micro businesses have received nearly $528 million in purchase orders, and 94 percent (over $495 million) of those went to Virginia-based Micro businesses.
  • Micro business orders increased from zero in FY14 to over $241 million in FY17.

  • New, small businesses have received more than $230 million of the total purchase orders to new businesses. Of that total, 88 percent (over $202 million) went to Virginia-based small businesses.

For more information on eVA, visit eva.virginia.gov.

 

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