Effective October 1: State Budget Makes It Easier for Small, Minority, and Woman-Owned Business to Do Business with the State of Connecticut

(HARTFORD, CT) – Department of Administrative Services (DAS) Commissioner Michelle Gilman today announced several state budget provisions that make it significantly easier for small, women-owned, and minority-owned firms to conduct business with the state of Connecticut take effect October 1. 

The state budget provisions include:

• Raising the threshold for requiring contractor prequalification from $500,000 to $1 million, thereby removing some bonding requirements for contracts under $1 million that have historically been a barrier for some small businesses.
• Updating reporting requirements on agency expenditures for contracts with small, minority, and women-owned businesses. This measure will help agencies identify their set-aside goals earlier by aligning them with the fiscal year cycle and allowing for automation of the reporting process.
• Increasing the threshold for minor purchases from $10,000 to $25,000 and the posting requirement for competitively bid purchases from $50,000 to $100,000 which opens new opportunities for small, women-owned, and minority-owned suppliers not currently under state contracts. 

“October 1 marks an important step in our collaborative effort to expand opportunities for prospective vendors to contract with the state of Connecticut,” DAS Commissioner Michelle Gilman said. “Through Governor Lamont and the legislature’s support of these statutory changes, we reaffirm our collective commitment to breaking down historic barriers for small, women-owned, and minority-owned businesses. I thank our partners in the General Assembly for their support of this important set of initiatives.” 

Through its Supplier Diversity Unit, DAS offers a certification program that provides small and minority-owned businesses with the tools to apply for state contract and procurement opportunities. With over 1,800 businesses currently registered, the program also helps to level the playing field for small businesses by ensuring that they have equal access to these opportunities.

DAS offers a range of other resources and services to help small businesses grow and succeed and works closely with various federal and state agency partners including the Small Business Administration and the Department of Economic and Community Development.

“We’ve now made it possible for a wider variety of Connecticut business contractors, including those owned by women and minority citizens, to bid for a wider variety of state projects without having to take on some expensive and burdensome bonding requirements. That means more work for more people and a fairer distribution of state contracts for everyone,” said state Senator Doug McCrory (D-Hartford).

“Increasing the threshold amount to $1 million will allow for greater participation from small, minority, and women-owned business contractors, eliminate subcontractors having to pay the Prequalification Contractor fee for scopes of work under $1 million, and allow small, minority, and women-owned business contractors to bid on bigger scopes of work, ultimately increasing their capacity. We thank DAS and the legislature for supporting this legislation with the intent of stimulating further growth for our small, minority, and women-owned business contractors,” said Jennifer Little-Greer, the Executive Director for the Minority Construction Council (MCC).

Small business owners in Connecticut are encouraged to learn more about the resources and services offered by DAS.