On January 7, 2022, Governor Inslee signed Executive Order 22-01 for Equity in Public Contracting and directly increased government contracting opportunities for certified women-, minority- and, veteran businesses (“Certified Businesses”) across the State of Washington. The Order will improve access to government contracts, provide support for agencies procuring goods and services from Certified Businesses, and enforce equity objectives through reporting and accountability.

In 2018, Certified Businesses only secured 3.6% of the $5 billion dollars available from government contracts through State agencies. The 2019 Washington State Disparity Study conducted by Governor Inslee’s Subcabinet on Business Diversity confirmed the need to increase the ongoing efforts to improve opportunities in government contracting for Certified Businesses. The findings of the Disparity Study are especially relevant to construction professionals because construction and construction-related services remain a leading industry amongst Certified Businesses.

As a result of the Disparity Study, the Subcabinet launched the Washington State Tools for Equity in Public Spending, a toolkit for equity. The purpose of the toolkit is to carry out the recommendations of the Disparity Study and to put Washington on a path to contracting equity.

The toolkit focuses on improved access to government contracts for Certified Businesses and greater support and accountability for State agencies procuring goods and services from Certified Businesses as outlined below.

ACCESS

Certified Business owners should expect State agencies to reach out to them regarding contracting opportunities. Before a State agency awards a contract, the agency will take the following steps: (1) search available directories for Certified Businesses, such as the Office of Minority and Women Owned Business Enterprises’ (“OMWBE”) directory, for companies able to provide the goods or services the agency seeks; (2) conduct outreach to ensure Certified Business owners are notified of any contracting opportunities; and (3) discuss contracting inclusion plans during pre-bid conferences and require such plans when subcontracting opportunities may be available.

Additionally, State agencies, including the OMWBE, Department of Enterprise Services (“DES”), and WSDOT, will work together to increase procurement and public contracting opportunities for Certified Business owners. The OMWBE will lead electronic data collection, identify gaps in its directory, and track data. The DES will increase the number of Certified Businesses with master contracts by reviewing existing policies and procedures that limit access. WSDOT will review qualification requirements and experience recommendations to eliminate barriers.

SUPPORT

Certified Business owners should expect State agencies to designate internal staff to support the implementation of the Order and to receive training from the OMWBE. Each agency must designate a staff person who has access to the agency’s key personnel responsible for contracting and procurement change within the agency. This person must consult with OMWBE to integrate into the agency’s culture the recommended tools and best practices to meet the agency’s diversity goals.

The OMWBE and DES will partner to coordinate a strategic approach for each agency to advance the recommendations from the Disparity Study. The agencies will receive training, guidance, and technical assistance to implement the recommendations of this Order through the online toolkit. This toolkit is on the OMWBE’s website and includes resources for agencies to implement equitable practices.

ACCOUNTABILITY

Certified Business owners should expect agencies to be held accountable for the implementation and execution of the recommendations set out in the Order. Agencies must incorporate the recommendations of the Order within in six months of the adoption of the Order or by July 7, 2022, whichever comes first. In addition, agencies must continue to update their plan and actionable steps annually.

The OMWBE and the Department of Veterans Affairs will also be held accountable and be required to report quarterly on each agency’s increase of participation of Certified Businesses, starting no later than the end of fiscal year 2023.

Certified Business owners should expect more this year because access, support, and accountability to increase their government contracting opportunities is at the forefront of policy making in 2022 and beyond.

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