Small business use and spending rules

WAC 200
DES is developing rules to support a program that boosts state contracting with small goods and services businesses.
Effective Date:
Type:
Rule
Status:
Draft/Proposed

Draft documents

Timeline

September 2024
Start of rulemaking – CR-101 Preproposal Statement of Inquiry filed with the Office of the Code Reviser
October 2024
CR-101 published in the Washington State Register as WSR 24-19-015
November 2024
April 2025
Rule development with interested parties
May 2025
CR-102 Proposed Rule filed with the Office of the Code Reviser
May 2025
CR-102 published in the Washington State Register
June 2025
Public comment hearing
June 2025
Comment period ends
July 2025
Comments considered
July 2025
Rule adopted
July 2025
CR-103 Permanent Rule Making Order filed with the Office of the Code Reviser
August 2025
CR-103 Permanent Rule Making Order published in the Washington State Register
August 2025
Intended effective date
August 2025
September 2026
Implementation activities

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Additional information

Successful small businesses strengthen communities and are essential to a robust and high functioning economy. Using small businesses in state contracting brings innovation to the state.

The rulemaking is limited in scope. The purpose is to expand Title 200 WAC to:

  • Establish a clear process to verify that benefits are going to small businesses as intended, including a standard compliance process.
  • Make sure in-state businesses have increased opportunities for contracts under statewide procurement policies.
  • Support existing strategies encouraged by the statewide Supplier Diversity Policy — such as preference points and reserved awards — to boost use of Washington small business.
    • DES uses a point system when evaluating vendor solicitations. Preference points can be added for being a small business or meeting other procurement priorities listed in the solicitation.
    • Reserved awards are contracts set aside for small/Veteran-owned businesses under a multiple-award competitive solicitation.
  • Enhance reporting on small business use in state contracting.

An in-state business is a small business under state law if they meet any one the following:

  • Have 50 or fewer employees.
  • Have annual gross revenue of less than $7 million.
  • Are certified by the Office of Women and Minority Business Enterprises.

Rulemaking steps

  • Develop rules and invite public participation from anyone who is interested. DES will provide a discussion outline as a starting point.
  • Seek public comment on proposed rules.
  • Adopt rules.
  • Share a summary of all comments and how DES considered public comments in the final rule.
  • File permanent rules with the Office of the Code Reviser.

Related policies

Related laws

Training

Contact us

Jack Zeigler

Policy & Rules Manager