OAR 125-246-0230: Preference for Oregon Small Business Enterprises

(1) Purpose. This rule establishes a program for granting preferences to Oregon Small Business Enterprises (OSBEs) consistent with Oregon Laws 2025, Chapter 483. The purpose of the program is to attract, invite, and encourage OSBEs to participate in public Procurement. Purchasing from an OSBE strengthens Oregon’s economy, supports local jobs, and helps small businesses thrive. (2) Definition. For purposes of this rule, “Oregon Small Business Enterprise” or “OSBE” means a business certified by the Oregon Business Development Department (Business Oregon) as an Oregon Small Business Enterprise pursuant to rules adopted by Business Oregon. (3) Applicability. This rule applies to Authorized Agencies conducting Small Procurements and Intermediate Procurements. The requirements in this rule apply regardless of payment method (including payments made with a State P-Card of Oregon Transaction System (SPOTS) card). (a) Small Procurements. When conducting a Small Procurement, Authorized Agencies must procure Supplies and Services from an OSBE if the Supplies or Services are available from an OSBE and meet the Authorized Agency’s needs. If the Supplies or Services are not available from an OSBE, then the Authorized Agency, when permitted by the Buy Decision Priority set forth in OAR 125-247-0200, may conduct a Small Procurement without consideration of whether it awards a Contract to an OSBE. (b) Intermediate Procurement. When conducting an Intermediate Procurement that does not use a statewide Department Price Agreement, Authorized Agencies must solicit and consider Offers from three OSBEs, or the number of OSBEs that offer the type of Supplies or Services required by the Authorized Agency if fewer than three OSBEs offer those Supplies or Services. Offers from non-OSBEs may be solicited only if there are fewer than three OSBEs available or if the Offers from OSBEs do not meet the Authorized Agency’s needs. (A) The requirement to solicit Offers from OSBEs is waived if a Written Solicitation is advertised and open to the global market through the State’s Electronic Procurement System. (B) If the Intermediate Procurement includes a Written Solicitation, Authorized Agencies must ensure Solicitation Documents and other Electronic Advertisements provide notice of the OSBE preference described in Section 5 of this rule. (4) Specifications. Authorized Agencies must ensure Specifications are designed to promote fair opportunities for OSBEs and meet the Authorized Agency’s needs. (5) Evaluation. When evaluating scored Offers, Authorized Agencies must apply a preference to Offers submitted by OSBEs. The OSBE preference must be greater than 0% but may not exceed 10%. (a) If the evaluation is based on price, an Authorized Agency must apply the OSBE preference by decreasing the price of any Offer submitted by an OSBE by a percentage determined by the Authorized Agency and described in the Solicitation. This price adjustment is for purposes of evaluation of the OSBE’s Offer only. (b) If the evaluation is based on best value, an Authorized Agency must apply the OSBE preference by increasing the score of any Offer submitted by an OSBE by a percentage determined by the Authorized Agency and described in the Solicitation. (c) The OSBE preference may be combined with other preferences. (d) If the Procurement does not involve scored Offers, Authorized Agencies must consider how purchasing from an OSBE strengthens Oregon’s economy and supports local jobs when determining which Offer will best meet the needs of the Authorized Agency and the State. (6) Exemptions. The OSBE preference does not apply to: (a) Amendments to Public Contracts or Amendments to Ordering Instruments; (b) Procurements for which the OSBE preference is prohibited by federal or State law or funding requirements; (c) Small Procurements for office supplies, information technology hardware or software (including cloud or online services), or vehicles; (d) Procurements that use the statewide Department Price Agreements when permitted by the Buy Decision Priority set forth in OAR 125-247-0200; or (e) Any Procurement governed by the provisions of ORS Chapter 279C and applicable administrative rule. (7) Reporting. Authorized Agencies must report OSBE procurement activity at least twice per year, on dates established by the Department, using a Department reporting process. (8) Sunset. This rule is repealed on December 31, 2031, unless extended by the Department.