HB 863, the Georgia Small Business Set-Aside Act, would create a state procurement preference program for Georgia small businesses. It directs the Department of Administrative Services to establish a set-aside program under which state agencies must make reasonable efforts to reserve at least 20 percent of their annual procurement contracts for small businesses, and to publish eligible opportunities on the state procurement website.
The bill defines “small business” as an independently owned and operated business with fewer than 50 employees or less than $10 million in annual gross receipts. To participate, businesses would need certification from the department, which would also maintain a directory of certified small businesses, establish an application process, and develop rules to administer the program. The bill also requires annual reporting by state agencies and the department, and it directs agencies that do not meet the 20 percent target to submit corrective action plans.
Impact
The bill would amend Georgia’s procurement law in Title 50, Chapter 5, Part 3 by adding a new small business set-aside framework. It would impose new administrative duties on the Department of Administrative Services and state agencies, including certification, directory maintenance, opportunity posting, reporting, training, and enforcement-related rulemaking. It would also affect which businesses can compete for certain state contracts by reserving a portion of procurement opportunities for certified small businesses.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive of small business participation in state contracting. The measure is framed as an economic development and access-to-contracting initiative, with no documented opposition or amendments in the supplied record. The requirement that agencies make “reasonable efforts” suggests an intent to balance the preference program with procurement flexibility.
Contention
The main potential point of contention is the practical and legal effect of requiring agencies to reserve 20 percent of contracts for small businesses while using a “reasonable efforts” standard rather than an absolute mandate. Questions could arise over how small businesses are certified, how the 20 percent target is measured, which contracts are eligible for set-aside, and whether agencies can realistically meet the benchmark across all procurement categories. Another likely issue is administrative burden on the Department of Administrative Services and state agencies, including reporting, compliance monitoring, and corrective action planning.
A BILL to amend and reenact §§ 2.2-1604, 2.2-4303, 2.2-4310, 9.1-108, and 9.1-112 of the Code of Virginia, relating to Department of Small Business and Supplier Diversity; Virginia Public Procurement Act; definition of "small business"; direct procurement; set-asides.