Procurement Technical Assistance Program Extension

The office of economic development (office) currently contracts with a nonprofit entity that was designated by the federal defense logistics agency to provide procurement technical assistance statewide (nonprofit entity). The nonprofit entity helps small businesses in the state obtain and perform government contracts at the local, state, and federal level. This includes small businesses owned by women, minorities, and veterans. The current 6-year contract between the office and the nonprofit entity will expire in September 2020. The act authorizes the office to renew the contract for up to 5 years.

As part of the state's investment in the procurement technical assistance program (state's investment), current law specifies that the general assembly shall not contribute more than $200,000 from the general fund or any other source annually. The act specifies that for the 2020-21 and 2021-22 state fiscal years, the general assembly shall not provide more than $175,000 from the general fund for the state's investment, and that for the 2020-21 state fiscal year only, the office shall provide, within existing resources, the remaining $25,000 toward the state's investment.

In addition, the act allows the general assembly to increase its contribution to the state's investment in any contract year so long as the nonprofit entity contributes a 100% match to the increased amount in the same contract year by soliciting gifts, grants, and donations. In addition, the nonprofit entity is required to obtain $200,000 in gifts, grants, or donations annually for part of the state's investment. In the 3rd through 6th contract year of the original contract, current law requires that at least 25% of the $200,000 be in the form of cash. The act extends this requirement for each year of the renewed contract.

Current law also requires the state treasurer to annually transfer $220,000 from the general fund to the procurement technical assistance cash fund through the 2019-20 state fiscal year. The act extends the annual transfer through the 2024-25 fiscal year; except that for the 2020-21 and 2021-22 state fiscal years, the amount of the transfer is $175,000.

(Note: This summary applies to this bill as enacted.)