Colorado falls short of SDVOSB contract goals (again)

The Colorado State Controller released its annual report of contracts awarded by State agencies to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) on September 29, 2023. The report, provided to several veteran legislative groups, outlined the State agency contracts awarded to SDVOSBs during Fiscal Year 2023.

Driving the news: The report reveals a significant decrease in the dollar amount of contracts awarded to SDVOSBs, amounting to just over $2 million.

• This represents a decrease of 71% in contract dollar awards to SDVOSBs from 2022.
• SDVOSBs were awarded less than 1/10th of 1% — 0.08% of all contract dollar awards.

The big picture: Colorado law (CRS 24–103–905) established a goal of awarding 3% of all state agency contract dollars to Colorado SDVOSBs.

While Colorado has other measures in place benefiting veterans, including veteran hiring preference in government positions and property-tax exemptions for disabled veterans, it is lacking in its veteran contracting performance. States such as New Hampshire aim to award twice as many contracts to veterans (6%) and at least 19 states have goals of awarding 4% or more to veterans.

Why this matters: Colorado is home to the 18th largest veteran population in the US, with an estimated 385,800 veterans per the VA’s 2020 figures. It is home to six military bases, including Space Force headquarters, and the United States Air Force Academy. Colorado has positioned itself as an advocate for veteran benefits but has fallen short of its contracting goals every year since it was enacted in 2015.

The other side: The report highlights the proactive steps taken by the Supplier Diversity Liaison (SDL) and the State Purchasing and Contracts Office (SPCO) to support SDVOSBs, including attending outreach events, building relationships with partners, and enhancing the SPCO website’s accessibility. Additionally:

• The Department of Military & Veterans Affairs stood out among all agencies, awarding 10% of their total contracts to SDVOSBs.
• The SPCO plans to continue its networking efforts and connect with SDVOSBs to provide information on doing business with the State, focusing on increasing the percentage of contracts awarded to SDVOSBs to meet the 3% goal in the future.

Moving forward: Colorado’s goal is admirable but lacks accountability. Additional outreach and resources are needed to accomplish this goal, otherwise this trend will continue. A goal without a plan is just a wish.

VAST Solutions looks forward to assisting veterans, legislators, and State agencies in achieving this attainable goal, enriching our fellow veterans and economically enriching the great state of Colorado.

What are your thoughts?: How can states like Colorado improve their efforts to support veteran-owned businesses? Does your state live up to its promises to veteran businesses? Let us know your thoughts.

Read the full report from the Colorado State Controller below

VAST Solutions is a Service Disabled Veteran Owned Small Business (SDVOSB) specializing in Veteran Advocacy, Support, and Training.

For additional inquiries or questions, please visit www.VastSolutions.VET or contact donovan@vastsolutions.vet