The New Jersey Diverse Business Advisory Council, a coalition of chambers of commerce and advocacy groups including NJBIA, is supporting a package of bills aimed at increasing procurement opportunities for small and diverse businesses seeking public contracts.
At the recent meeting of the Legislature’s Joint Committee on Economic Justice and Equal Employment Opportunity, co-chairs Senator Gordon Johnson (D-37) and Assemblyman Benjie Wimberly (D-35) emphasized the urgent need to change how the state procures with businesses owned by minorities, women, LGBTQ+ individuals, veterans, and the disabled.
A state-commissioned report released earlier this year, The New Jersey Disparity Study, highlighted several challenges faced by diverse businesses in obtaining state contracts. For instance, although Black-owned companies represent 9.19% of construction businesses in the state, they received only 0.14% of construction contract dollars valued between $65,000 to $5.71 million.
“The testimony heard in our first meeting reinforced the urgency of addressing the decades-long disparity in procurement with small and diverse businesses. Even with current legislative measures like set-aside contracts or diverse business certifications, New Jersey is still not meeting its inclusion goals,” said Senator Johnson.
“Testimony revealed that a disorganized and antiquated diverse supplier database, lack of outreach about procurement opportunities, and the bundling of state contracts has led our diverse businesses to miss out on millions in state contract opportunities,” Johnson added.
Assemblyman Wimberly stressed that the state must improve efforts to foster an environment where small and family-owned businesses can thrive.
“Our collective future hinges on fostering an environment where family-owned and small businesses can thrive,” Wimberly stated. “Our current system must evolve to allow equitable competition for all who are in pursuit of success.”
The New Jersey Diverse Business Advisory Council has outlined priority legislation designed to create a more level playing field for small diverse businesses and drive economic empowerment across communities. These initiatives include:
1. Prompt Payment Program: Ensuring timely payments within 15 days for work completed by small diverse businesses contracted with state agencies.
2. Creation of the Office of Small Diverse Business Development: Establishing an office within the Governor’s office dedicated to supporting small diverse businesses.
3. Funding for diverse chambers affiliated with NJDBAC: Allocating budgetary resources for outreach and programming initiatives.
4. Publication of all spending by state agencies: Mandating transparency by requiring quarterly publication of spending data on small diverse versus total spends.
5. Annual diversity procurement training for officers: Equipping procurement officers with knowledge necessary to engage effectively with diverse business communities.
6. Waiver of registration fees: Removing barriers by waiving start-up costs for certified diverse businesses.
7. Waiver of EZPass tolls: Providing relief through toll waivers for vehicles owned by small diverse businesses.
8. Creation of a 10% Price Preference Program: Granting price preference to encourage participation from small diverse businesses bidding on public projects.
9. NJEDA Diverse Business Lending Fund: Establishing a fund allowing access to capital using state contracts as collateral.
10. Diversity business goals tied to local government funds: Ensuring diversity goals are linked to state funds allocated locally.
11. Inclusion in I Bank-funded projects: Setting diversity goals for Infrastructure Bank projects with waiver provisions as needed.
12. Capacity building and mentorship funding: Providing resources for training programs aimed at strengthening small diverse enterprises.
13. State certification for Military Spouse Owned Businesses: Introducing certification support specifically targeting military spouse-owned entities.
14. First Look Program prioritization: Requiring procurement personnel prioritize purchases from small diverse enterprises first.
15. Creation of Ombudsmen roles at all agencies: Establishing positions dedicated to assisting these enterprises with issues related to state contracts.
