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HB 842

Virginia Public Procurement Act; definition of "small business", direct procurement, set-asides.

2026 Regular Session

Virginia bill redefines small business eligibility and adjusts direct procurement and contract set-asides for state and local government purchasing.

Continued to next session in General Laws (Voice Vote)
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Bill Summary · HB 842

Legislative bill overview

HB 842 modifies Virginia's Public Procurement Act by redefining what qualifies as a "small business" for government contracting purposes and adjusts rules around direct procurement and set-asides (reserved contracts). The bill appears designed to refine how state and local governments award contracts to disadvantaged or small business enterprises.

Why is this important

Small business set-asides are a primary mechanism for directing government spending toward historically underrepresented entrepreneurs and smaller firms. Changes to definitions and procurement rules directly affect which businesses can compete for public contracts worth millions of dollars, influencing economic opportunity and competition in Virginia's vendor ecosystem.

Potential points of contention

  • Definition disputes: Disagreement over what threshold defines a "small business" (employees, revenue, ownership structure) affects who qualifies for preferences and can create unintended winners/losers
  • Direct procurement concerns: Expanding or contracting direct procurement authority may reduce competitive bidding, potentially raising costs or limiting vendor participation depending on the changes
  • Set-aside effectiveness: Debate over whether set-asides genuinely help intended beneficiaries or create artificial barriers; some argue they inflate costs while others say they're essential for equity

Compiled from official sources — confirm details with the bill’s official record.

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