Department of General Services (DGS) Secretary Reggie McNeil announced that DGS will increase the revenue limit from $38.5 million to $47 million starting January 1, 2024, update the federal definition of small business, and open the door to more small businesses. announced that it will increase opportunities for small and medium-sized enterprises. Businesses (SBs), Small Diversified Businesses (SDBs), and Veteran Businesses (VBEs) compete for state business contracts.
The revenue limit threshold changes will bring the Department of General Services' definition of a small business more in line with the U.S. Small Business Administration's (SBA) definition, which takes into account inflation. The revenue limit threshold was last increased by the DGS in 2018. By increasing the revenue cap, more small businesses that were previously disqualified from federal small business programs due to inflation will be able to qualify for these programs.
“Being able to bring in more small businesses will help increase participation in state contracts, and providing support to small businesses is key to keeping them in business. We President We have taken steps to fully implement the order and are now able to move forward at full speed,” said Secretary McNeil.
Additionally, the executive order directs DGS to lead and coordinate efforts with other federal agencies to increase total business spending and participation in the federal Small Business Reserve (SBR) program. Increases opportunities for SBS, SDB, and VBE to secure prime contracts. It also directs DGS, the Pennsylvania Department of Transportation (PennDOT), and other state agencies to provide critical technical and capital access support to small and small-scale diverse businesses. To track and ensure growth in spending by SBs, SDBs, and VBEs, DGS posts biannual data on each agency's total operating expenditures for SBR procurement.