What Minnesota Agencies Can Do Now to Improve Contract Access

Published on: July 07, 2025

Plain-language steps government buyers can take to make contracting fairer and easier for small, minority-, and women-owned businesses.

The 2025 Minnesota Joint Disparity Study confirmed what many small and diverse business owners already know: public contracting in Minnesota favors larger, established firms.

(mn.gov/disparity-study/resources/reports2025)

Between 2016 and 2023, only 9% of contract dollars went to minority- and women-owned businesses—even though they represent roughly 22% of qualified vendors.

Agencies don't need to wait for new laws to close this gap. Many changes can happen inside procurement offices today—through clearer communication, smarter bid design, and simpler processes.

Here's how:

1. Make Bid Information Easier to Find

Small businesses miss opportunities because bid notices are hard to find or scattered across multiple websites. Even experienced vendors struggle to track statewide openings.

Quick wins for agencies:

Use consistent posting locations (OSP, MnDOT, or local portals) instead of separate PDF pages.

Add RSS feeds or email alerts for all solicitations.

Use plain titles, not internal codes, for bid listings.

Example:

The City of Minneapolis posts all bids in its eSupplier Portal with clear deadlines and categories—a simple model any city can follow.

2. Host Orientation and "How to Bid" Sessions

New vendors often give up after one failed attempt because they don't understand the process. Short monthly sessions—even virtual ones—build capacity and trust.

Steps agencies can take:

Offer 30-minute webinars explaining how to register and submit bids.

Record sessions and post them online for on-demand access.

Partner with local groups like MEDA (meda.net) or the Association of Women Contractors (awcmn.org) to co-host workshops.

Each session reduces confusion and levels the playing field. It's low-cost and high-impact.

3. Use Plain Language in Solicitations

Government solicitations often read like legal textbooks. Small business owners may excel in construction or consulting—not in decoding bureaucracy.

Quick changes that help:

Replace jargon ("RFB," "solicitation document," "proposal narrative") with straightforward terms like "bid" or "application."

Summarize key requirements on the first page: bonding, insurance, scope, and submission format.

Provide an example of a complete bid packet.

A well-written bid document attracts more qualified responses—not just more paperwork.

4. Split Large Contracts into Manageable Portions

Small firms can't compete for multi-million-dollar contracts that bundle unrelated services. Agencies can improve access by unbundling large scopes into smaller, specialized projects.

Example:

MnDOT's Small Contracts to Advance Equity initiative creates standalone bids—often under $250,000—for certified Targeted Group, Economically Disadvantaged, and Veteran-Owned firms.

(dot.state.mn.us/procurement-contracting-equity/small-contracts.html)

This lets small firms bid directly instead of working only as subcontractors.

5. Pay Small Vendors Faster

Cash flow is one of the biggest barriers for small contractors. Waiting 60 or 90 days for payment can sink a business that must cover materials, payroll, and fuel up front.

Actions agencies can take:

Establish 15-day payment policies for contracts under $250,000.

Pre-approve invoices electronically to reduce delays.

Communicate expected payment timelines in bid documents.

Early-payment policies cost agencies little but have a major impact on vendor survival.

6. Simplify Paperwork for Low-Dollar Contracts

Not every contract needs the same volume of forms and certifications. Agencies can tier documentation requirements by contract size.

Practical tier system:

Tier 1: Under $50,000 → simple quote, minimal insurance.

Tier 2: $50,000–$250,000 → short-form contract, basic bonding.

Tier 3: Over $250,000 → full compliance requirements.

This matches rules to risk and frees small vendors from paperwork designed for megaprojects.

7. Track and Publish Results

Transparency drives accountability. Agencies that publicly track progress stay focused.

What to publish annually:

Total contract dollars awarded

Percent awarded to certified diverse firms

Number of new vendors registered

Outreach events held

Example: The City of Saint Paul posts supplier-diversity data in its annual equity report, showing growth in certified vendor spending.

(stpaul.gov – Supplier Diversity Program)

Consistent reporting builds confidence among vendors and the public.

8. Encourage Mentorship Between Large and Small Firms

Many large contractors want to subcontract with smaller firms but don't know where to start. Agencies can foster "mentor-protégé" partnerships that share skills and boost long-term competitiveness.

How to support it:

Include voluntary mentorship opportunities in bid forms.

Host meet-the-buyer events where primes and small firms can connect.

Offer recognition or scoring bonuses for primes that mentor certified vendors.

When small businesses grow stronger, agencies gain a broader, more competitive vendor pool.

9. Celebrate Success Stories

Data shows progress, but stories build momentum. Agencies should spotlight diverse firms that deliver strong results.

Publish short success profiles on websites or in newsletters.

Share photos and project outcomes on social media.

Recognize top-performing small vendors at annual procurement events.

These stories motivate others and show the public that supplier diversity is about capability and quality—not quotas.

10. Keep Listening

The best improvements often come from vendors themselves. Regular listening sessions or surveys show agencies care about ongoing improvement.

Even a quarterly roundtable with local business owners can surface new ideas—like making procurement software mobile-friendly or aligning certification renewals across programs.

Final Thought

The 2025 Disparity Study revealed deep inequities, but it also offers a blueprint for action. Agencies don't need new laws or massive budgets to make progress.

Simpler bids, faster payments, plain language, and transparent reporting all help small and diverse businesses compete fairly. Every improvement counts.