What the 2024 NASPO Survey Reveals About Small-Business Access to Government Contracts

Most people picture government contracts as massive, cut-throat bids you need a team of consultants to compete for. The data tells a different story. NASPO's 2024 Survey of State Procurement Practices — covering 45 states — shows that a large share of public buying happens at a scale, and through programs, built for exactly the small and diverse businesses that assume they are shut out.

Two-thirds of states are actively trying to buy from diverse businesses

About two-thirds of the states NASPO surveyed (65.9%) reported running a supplier-diversity initiative. These are not vague statements of intent. Ohio, for example, sets aside 15% of its competitively made purchases each year for state-certified Minority Business Enterprises, and runs additional programs for women-owned and veteran-owned firms. Other states maintain public directories of certified minority-, women-, and veteran-owned businesses so buyers can find them. The takeaway: agencies are not just open to diverse vendors — many have goals, set-asides, and programs designed to find you.

You don't have to chase a mega-bid to start

Here is the statistic that should change how you think about getting in. Below a dollar threshold set by law, agencies can buy without running a full formal competition — through quick quotes or simplified small-purchase procedures. Across the states NASPO surveyed, the most common small-purchase threshold is $10,000 and the median is $20,000. That is a lot of real, biddable work an agency can hand to a capable small business with minimal red tape.

And the ceiling goes far higher in some places. Oregon reported the highest small-purchase threshold in the country — $250,000 — meaning a state buyer there can award a quarter-million-dollar contract through a simplified process, not a sprawling formal bid. (For full formal competition, the median threshold across states is $50,000.)

Getting certified can raise your ceiling

Certification is not just a badge. Three states reported giving certified targeted businesses — small, veteran-, and minority-owned — higher small-purchase thresholds than everyone else. In plain terms: certified firms can be awarded larger contracts through the simpler, faster process. Combined with set-aside programs like Ohio's, certification is one of the highest-leverage moves a small business can make.

What this means for you

• Register as a vendor with the agencies and portals where you want to sell — it is free.
• Get certified. It unlocks set-asides and, in some states, a higher threshold for simplified awards.
• Target small-purchase work first. Below the threshold is where capable newcomers realistically land their first contract.
• Know your state's numbers. Thresholds and programs vary widely — find the ones that apply to you.

That last step is exactly what our free directory is for: it shows you where to register in your state, which agencies buy, and the certifications worth pursuing. And our plain-English course takes you from your first registration to a submitted bid. The opportunity in this data is real — the only thing standing between most small businesses and a public contract is knowing how to get in.

Source: 2024 Survey of State Procurement Practices, National Association of State Procurement Officials (NASPO). Figures reflect responding states (45 states participated; question response counts vary).

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