Harrisburg, PA — The Shapiro-Davis Administration directed more than $1 billion to small businesses and increased spending with veteran-owned firms by more than 70 percent last fiscal year, according to the Fiscal Year 2024–25 Annual Report from the Department of General Services’ (DGS) Bureau of Diversity, Inclusion, and Small Business Opportunities (BDISBO). These results reflect a focused, data-driven approach to procurement that gives small businesses real opportunities to compete for Commonwealth work, strengthening Pennsylvania’s local economies.
Pennsylvania is now channeling more contracting dollars to small, small diverse, and veteran-owned businesses than ever before, including a 45 percent increase in spending with Black-owned and Latino-owned businesses over the past two years. For the second consecutive year, the Commonwealth surpassed $1 billion in contracts with small businesses.
“Small businesses are the core of our economy, and we all succeed when small businesses are strong,” said Lieutenant Governor Austin Davis, chair of the Pennsylvania Advisory Council for Inclusive Procurement (PACIP). “When small, small diverse, and veteran-owned businesses have a fair shot to compete and win state contracts, they create jobs, strengthen local communities, and make taxpayer dollars work harder. PACIP helps ensure we are listening, learning, and continuously improving how the Commonwealth does business.”
Throughout FY 2024–25, the Shapiro-Davis Administration strengthened procurement practices, expanded outreach, and applied data-driven goal setting to connect more small businesses to contracting opportunities statewide.
“These results reflect meaningful and strategic progress,” said DGS Secretary Reggie McNeil. “By pairing clear procurement rules with consistent engagement and strong oversight, we are ensuring Pennsylvania’s contracting system remains fair, transparent, and competitive — while creating real opportunities for businesses positioned to grow.”
As a result of the Shapiro-Davis Administration’s targeted efforts:
$77.6 million in contracts were awarded to qualified businesses through the Small Business Reserve Program, exceeding the preliminary annual goal by $18.6 million
BDISBO increased subcontracting participation goals by 11 percent in FY 2024–25 by analyzing current data on small businesses and setting targets for individual contracts, ensuring more small businesses had a real opportunity to participate
There was a 71.6 percent increase in dollars spent with veteran-owned businesses over the previous fiscal year
BDISBO engaged over 4,400 entrepreneurs and business advocates by participating in 57 outreach events across the Commonwealth
The Shapiro-Davis Administration continued investing in proven programs that expand opportunities for small businesses, including the Small Business Reserve (SBR) Program and Mentor-Protégé Program. The SBR Program reserves certain contracts exclusively for self-certified small businesses, while the Mentor-Protégé Program pairs experienced prime contractors with small, small diverse, and veteran-owned businesses to provide hands-on mentoring, business development support, and guidance on navigating the Commonwealth’s procurement process.
“Our focus is on building systems that work — for agencies, for businesses, and ultimately for all Pennsylvanians,” said Dr. Erica Patterson, DGS Deputy Secretary for Business Inclusion and Supplier Development. “By prioritizing accountability, transparency, and collaboration, we’re creating a procurement system that opens doors and delivers measurable results statewide.”
The FY 2024–25 Annual Report is available online here.
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