Iowa’s Targeted Small Business (TSB) Program is designed to help women, individuals with minority status, service-disabled veterans, and individuals with disabilities overcome some of the hurdles to starting or growing a small business in Iowa.
The following entities also support the TSB Program:
- the Department of Administrative Services - Central Procurement facilitates the purchase of goods and services for state agencies
- the Iowa Center for Economic Success administers the TSB loans on behalf of IEDA
Program Scope/Agency Goals
- “Every agency, department, commission, board, committee, officer, or other governing body of the state shall purchase goods and services supplied by small businesses and targeted small businesses in Iowa.” (Iowa Code 73.16)
- Iowa Code 73.16 & 17, along with Administrative Rules 261-54.3 and 261-54.14, require that State agencies provide IEDA with annual TSB spending projections and quarterly performance reports.
- Should a conflict exist between the Iowa Targeted Small Business Procurement Act and Administrative Rules pertaining to procurement, Iowa Code 73.21 states “All laws and rules pertaining to solicitations, bid evaluations, contract awards, and other procurement matters apply to procurement contracts for targeted small businesses to the extent there is no conflict. If this subchapter conflicts with other laws or rules, then this subchapter governs.”
- Administrative Rules 11-117.6(7) and 11-117.15(3) specify certified TSBs as preferred providers when cost-effective.
- Iowa Code 8A.311 (10)(a) states that agencies “may, upon request and approval by the department (DAS), purchase directly from a vendor if the direct purchasing is more economical than purchasing through the department … if the purchase will not exceed ten thousand dollars and the purchase would contribute to the agency complying with the targeted small business procurement goals under sections 73.15 through 73.21.”
- Administrative Rule 11-117.4(1) allows agencies to purchase comparable goods or services from a certified TSB when an MA with another vendor exists if an immediate need makes it cost-effective.
- State agencies are required to post all solicitations for goods and services on the 48-hour TSB website per Administrative Rule 11.117.8(2) to give certified TSBs 48 hours advance notice prior to the general public. Access to the 48-hour TSB site is restricted to certified TSBs and state agencies with bid opportunities. To request access for your agency, contact Karl.Wendt@iowa.gov.
- All solicitations must be posted, but Administrative Rule 11.117.5(2) exempts purchases of goods and services up to $25,000 from the State's competitive bid requirements when purchases are made from a certified TSB.
- Splitting transactions to avoid procurement thresholds or the $25,000 TSB limit is strictly prohibited. Per Administrative Rule 11-117.15(4)(a): The agency shall not break purchasing into smaller increments for the purpose of avoiding threshold requirements in subrules 117-15(1) and 117-15(2).
- To help State agencies identify certified TSBs for their procurement needs and TSB goals, the IEDA maintains the Targeted Small Business Directory searchable by business type, name, service category, service description, city, county and zip code.
- A complementary TSB webpage and TSB Program flyer (explaining partner roles and program benefits to qualified small businesses) have been added to the DAS CPB website.
For more information about TSB procurement, please contact Karl Wendt, (515) 281-7073.