The bill, introduced by Democrat Del. Jeion Ward, establishes the “Small SWaM Business Procurement Enhancement Program.” (SWaM stands for “small women-owned, small minority-owned, or small service disabled veteran-owned”). The measure sets a race or sex quota for such businesses to receive 42 percent of the state’s discretionary spending on “procurement orders, prime contracts, and subcontracts.”
“The bill provides that executive branch agencies and covered institutions are required to increase their small SWaM business utilization rates by three percent per year until reaching the 42-percent target or, if unable to do so, to implement achievable goals to increase their utilization rates,” a summary
According to the bill, if agencies are unable to increase their use of such businesses by 3 percent per year, they will need to develop an improvement plan in order to get it to start phasing out businesses owned by able-bodied white males from their current discretionary contracting.
The $200,000 price point is actually an increase from the bill’s original threshold, which was set at $100,000. The original bill was also marginally less radical, as it included a clause allowing white men to compete in the contract bids, so long as “fewer than two certified small SWaM businesses are available for competition” or “where bids or offers do not result in a fair and reasonable price.” But that clause was removed in the final version of the bill.
