Virginia contract bill draws scrutiny over set-asides

(The Center Square) – A Virginia bill that would expand how the state awards contracts is drawing attention as it heads to first-term Democratic Gov. Abigail Spanberger for a decision.

House Bill 61 sets a statewide goal for agencies to direct 42% of certain discretionary spending to certified Small, Women-owned and Minority-owned, or SWaM, businesses, according to bill language and a fiscal impact statement from the Department of Planning and Budget.

It also changes how smaller contracts are handled. Purchases between $10,000 and $200,000 would be set aside for certified SWaM businesses, while those under $10,000 would be reserved for microbusinesses.

The bill goes further for construction work. On capital outlay projects, contractors that are not SWaM-certified would be expected to subcontract 50% of the work to certified businesses.

The proposal has picked up attention online, with some posts claiming it would prioritize contracts based on race or gender.

The bill itself does not bar any g...