08/11/2005
Increase in Contracting Opportunities for Small, Women-, Minority-Owned Businesses
from the Office of the Governor
PHOENIX, Ariz. -- Governor Janet Napolitano announced today that the state of Arizona, through the Arizona Department of Administration Risk Management Division, will reduce insurance requirements by 50 percent for most state contracts with a value of less than $50,000.
This announcement was the result of recommendations made to the Governor in a May report from the Governor's Equity in State Contracting Community Consultants Group. Created by Executive Order 2004-29, the consultants group is charged to develop recommendations that outline ways to reduce impediments for small, women and minority owned business enterprises.
"I am pleased the Department of Administration reviewed the recommendations made by the Community Consultants and chose to act quickly in implementing achievable recommendations," Governor Napolitano said. "Reducing contractual insurance requirements will undoubtedly result in additional state business opportunities for our small, women- and minority-owned business community."
Reducing the minimum insurance requirement will alleviate some of the administrative cost on businesses competing for state contracts. As a result, small, women- and minority-owned businesses, which previously did not apply for state contracts because of the insurance burden, will submit offers and receive awards in the future.
Current insurance requirements will remain in place for certain high-risk contracts with a value of less than $50,000, however, the reduction will apply to the vast majority of small business contracting opportunities in the future.
