Diversity Lags In Va. Program To Help Firms

State agencies were sent a memo last year to remind them of the state's 40 percent goal and to remind them to give SWaM companies proper credit when they are rating them against other bids for contracts exceeding $100,000.

Some companies in Virginia, including some with long records of working for the state, have lost contracts recently in the state's eagerness to hire small, women- and minority-owned businesses.

At least two companies are formally protesting losing bids to SWaM companies, which they claim come at taxpayer expense. In both cases, the losing bids were lower in cost than the SWaM bids.

"A lot of people are concerned about the cost factor," said Del. Christopher B. Saxman (R-Staunton), who heads the General Assembly's Cost-Cutting Caucus and has heard similar complaints about lower bids being rejected. "If it's costing the state money, then it's probably worth refining."

In recent years, the General Assembly has considered changing or abolishing the agencies that run the SWaM program.

Del. R. Steven Landes (R-Augusta), who has sponsored such bills in the past, said he wanted to streamline the agencies and save taxpayer money. But Del. Brian J. Moran (Alexandria), chairman of the House Democratic Caucus, described the proposals as "veiled attempts" to eliminate a program crucial to help small, women- and minority-owned businesses that has made "significant progress" in recent years.

About 15,800 businesses are certified in the SWaM program, up from almost 4,000 when Kaine came into office in January 2006. A majority of them are small companies.

Virginia defines small businesses as those that have fewer than 250 employees or $10 million or less in sales a year, a more permissive standard than other states and one that opens the SWaM program to more companies.

About 20 percent of the companies in the program are from out of state.

Hayes said out-of-state companies are included so that Virginia businesses can be considered in other states' certification programs. "If you block them out, they block you out," he said.

Many companies praise the SWaM certification process, which the Kaine administration has made simpler and quicker, but they complain about not receiving contracts.

"Certification does not bring you contracts," Hayes said. "What certification does for you is make you eligible to participate. It puts you in a position to compete."

Tracy Blake, who manages a small, minority-owned landscaping company, Grass Guru, said that after the business became SWaM certified, he made an appointment with the Virginia Department of Transportation to learn how to submit bids.

Now, he said, all of the company's work planting flowers in medians in Northern Virginia is for the state.

"It's all about effort," he said. "You have to jump-start things yourself."