Oregon to do more to prioritize small businesses in state procurement

Last week, Governor Tina Kotek signed House Bill 2337 into law, which establishes a procurement program to prioritize small businesses in Oregon. House Bill 2337 will incentivize state spending within Oregon communities, circulating local dollars directly back into the community.

“House Bill 2337 weaves our values into the fabric of government,” Governor Kotek said. “We know that small businesses are the backbone of our economy and the heartbeat of Oregon’s vibrancy, but they have the cards stacked against them when it comes to competing with large companies. House Bill 2337 gives them a leg up.”

With the passage of House Bill 2337, small businesses will be able to apply for an Oregon Small Business Enterprise (OSBE) certification through Business Oregon (OBDD), which the businesses can leverage to compete for contracts with the state. House Bill 2337 also directs the Department of Administrative Services (DAS) to establish state targets and goals for small business contracts across the state.

The 2023 State of Oregon Disparity Study conducted by DAS showed significant disparities exist across business size and recommended creating a procurement program like the one signed into law last week. The OSBE certification will increase the contract award potential for all Oregon-based small businesses. Existing Certification Office of Business Inclusion and Diversity (COBID) certifications will remain active.