Lansing, MI– On Feb 3rd, Governor Gretchen Whitmer signed an executive directive to improve the State of Michigan’s contracting process by increasing business opportunities for Geographically Disadvantaged Business Enterprises (GDBEs) to contract with the state. 

“When the state acts inclusively, all Michiganders benefit,” said Governor Whitmer. “Under this directive state procurement will be more accessible to more Michigan businesses. As governor, I have worked tirelessly to ensure state dollars are spent efficiently, equitably and, where possible, stay in Michigan to benefit our communities. Expanding our pool of contractors, creates more opportunities for minority, women, and veteran-owned businesses and creates a more competitive bidding process that helps ensure the state receives the most cost-effective, high-quality bids for goods and services.” 

Under this executive directive, the Department of Technology, Management, and Budget (DTMB) must set a goal that 20% of total expenditures from state departments and agencies go to GDBEs beginning in Fiscal Year 2023-24. Geographically Disadvantaged Business Enterprises include Michigan firms owned and operated in underutilized and underserved areas like small towns and inner cities.   

On Feb 3rd’s executive directive also requires the DTMB to improve data collection processes to better track demographic data of suppliers. Additionally, DTMB is directed to work with departments and agencies to improve public awareness of contracting opportunities with the State through improved outreach and technical assistance for potential applicants. 

Governor Whitmer’s executive directive is authorized by Section 8, Article 5 of the Michigan Constitution of 1963, which places each principal department under the supervision of the governor. 

Executive Directive 2023-1 is effective immediately.