Democrats in Virginia have passed a new bill that directs state agencies to prioritize certain businesses for government contracts — and in the process could push many companies owned by white men out of a large portion of the state’s contracting opportunities.
The legislation, introduced by Democrat Delegate Jeion Ward, creates what is called the “Small SWaM Business Procurement Enhancement Program.” SWaM stands for small women-owned, small minority-owned, and small service-disabled veteran-owned businesses.
Under the measure, state agencies are required to increase their use of these businesses by three percent each year until they reach a target where 42 percent of discretionary state spending on procurement orders, prime contracts, and subcontracts goes to SWaM businesses.
Yes, you read that right — government contracts now come with a percentage quota. Because apparently the best way to decide who gets taxpayer dollars is not simply who offers the best service or price.
The bill also sets aside purchases between $10,000 and $200,000 specifically for SWaM businesses. That price cap is actually higher than the original proposal, which was set at $100,000. The earlier version at least included a clause allowing businesses owned by white men to compete if fewer than two qualifying SWaM companies were available or if prices weren’t reasonable.
That clause, however, disappeared in the final version of the bill.
The change is significant because a large portion of state procurement falls within this range. As of 2015, roughly 80 percent of Virginia’s government purchases were at or below the $100,000 mark. Raising the threshold to $200,000 means an even larger share of contracts could be limited to the preferred categories.
State agencies are also allowed to spend up to five percent more on contracts in order to meet the diversity targets tied to the policy. In other words, a business that offers a cheaper or more competitive proposal could still lose out simply because it doesn’t meet the program’s demographic criteria.
To track the program, the bill requires the director of the Department of Small Business and Supplier Diversity, Willis Morris, to conduct what is called a “disparity study” every five years. The study will evaluate differences between the availability of minority- and women-owned businesses and how often they receive state contracts.
Based on those findings, the department will recommend further measures to address the disparity.
Perhaps the most ironic part of the legislation appears at the bottom of the text. It includes a standard statement saying that public bodies should not discriminate against bidders based on race, religion, sex, or other characteristics — language that seems to contradict the policy the bill itself establishes.
The measure passed the Virginia Senate by a narrow 21-19 vote and cleared the House of Delegates 62-36, largely along party lines. It now heads to the desk of Governor Abigail Spanberger for a final decision.
Whether supporters call it equity or critics call it discrimination, one thing is clear: debates over government contracts and identity politics are far from over. And as Americans continue pushing for fairness and transparency in how taxpayer money is spent, the conversation about merit, opportunity, and equal treatment is only going to grow louder.
