Salem, OR - Today, Governor Tina Kotek announced a milestone in the State of Oregon's procurement transformation efforts. Effective immediately, all state agencies operating under the Department of Administrative Services' procurement authority will apply a preference for certified Oregon small businesses when purchasing goods and services. Agencies with independent procurement authority are also strongly encouraged to adopt the Oregon Small Business Enterprise (OSBE) Preference Program to expand opportunities for Oregon's small businesses and strengthen the state's economy.

"Keeping investment local is absolutely paramount, and I am committed to ensuring that the State of Oregon is doing all it can to support and partner with our small businesses," Governor Kotek said. "Small business is the heart of the Oregon economy, and this effort represents another step in building a more resilient economy for the state."

Established by House Bill 2337, championed by Governor Kotek in 2025, the OSBE Preference Program creates a race- and gender-neutral certification and preference program designed to expand opportunities for qualifying Oregon small businesses. As one of the most significant procurement modernization initiatives undertaken by the state in recent years, the program reflects Oregon's commitment to creating a procurement system that is more competitive, transparent, and accessible while keeping more state investment in Oregon communities. It also advances Governor Kotek's vision of strengthening Oregon's economy by supporting Oregon businesses, creating jobs, and expanding economic opportunity throughout the state.

This work builds on findings from the State of Oregon's 2023 Disparity Study, which identified significant disparities in public contracting opportunities for many minority-, woman-, and service-disabled veteran-owned businesses. The OSBE Preference Program not only represents an important first step in addressing those disparities by expanding opportunities for Oregon's small businesses but also builds a stronger, more competitive, and equitable procurement system for all.

This initiative demonstrates Oregon's commitment to using state purchasing power to strengthen local businesses, create economic opportunity, and ensure that public contracting delivers greater value for communities across the state. By making it easier for Oregon small businesses to compete for state contracts, the OSBE Preference Program helps build a more resilient economy while expanding opportunities for businesses to grow, innovate, and create jobs throughout Oregon.