To be eligible for the small business procurement program, a business must have its principal place of business in Minnesota; be a manufacturer, manufacturer’s representative, dealer, jobber, distributor, contractor, or business engaged in a joint venture; not be a broker, third party lessor, or franchise; and comply with revenue or sales limitations for the industry established by the Department of Administration. Purchases from Small Targeted Group Businesses The purpose of the targeted group procurement program is to remedy the effects of past discrimination against members of targeted groups. Periodically, the Department of Administration studies whether effects of past discrimination continue to dampen the participation of members of targeted groups. To be considered under the program, a business must be so designated by the Commissioner of the Department of Administration; businesses can be designated under one of two possible avenues. First, for businesses majority owned and operated by women, persons with a substantial physical disability, or specific minorities, the designation is made on the basis of “purchasing categories”. A business is eligible under the program if the Commissioner “determines there is a statistical disparity between the percentage of purchasing from businesses owned by group members and the representation of businesses owned by group members among all businesses in the state in the purchasing category.” Second, the Commissioner may designate a business if the Commissioner “determines that inclusion is necessary to remedy discrimination against the owner based on race, gender, or disability in attempting to operate a business that would provide goods or services to public agencies.” (Note that the statute specifically provides that such designations of purchasing categories and businesses are not rules for purposes of Minn. Stat. Chapter 14, and are not subject to the rulemaking provisions of that Chapter.) To be eligible for the small targeted group procurement program, a business must be majority owned and operated by women, or by persons with a disability, or by specific minorities; and have its principal place of business in Minnesota. Also, to qualify a business must: not be a manufacturer, manufacturer’s representative, dealer, jobber, distributor, contractor, or business engaged in a joint venture; not be a broker, third party lessor, or franchise; comply with revenue or sales limitations for the industry established by the Department of Administration; and be certified as eligible according to procedures and criteria established by the Department of Administration. To qualify for the targeted group and economically disadvantaged procurement programs, the business must file an application for certification and supporting documentation with the Materials Management Division of the Department of Administration. The application and supporting documentation are reviewed by the staff of the Materials Management Division for conformity with applicable laws. A business that is certified by the Department of Administration is eligible to participate in small business procurement programs of the Department of Administration, and could be eligible to participate in similar programs of the state Department of Transportation and some metropolitan agencies, without further certification. Certified businesses must submit an annual report to the Materials Management Division verifying information on file with the Division.
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