Or. Rev. Stat. § 279A.105
Subcontracting to emerging small businesses or veteran-owned businesses
279A.105 Subcontracting to emerging small businesses or veteran-owned businesses. (1) A contracting agency may require a contractor to subcontract some part of a contract to, or to obtain materials for use in performing the contract from, a business that is certified under ORS 200.055 as an emerging small business or as a veteran-owned business.
(2) A contracting agency may require a contractor to subcontract some part of a contract to, or to obtain materials to be used in performing the contract from, a business that is certified under ORS 200.055 as an emerging small business and that, as identified by the contracting agency, is located in or draws the business’s workforce from economically distressed areas, as designated by the Oregon Business Development Department.
(3) A contracting agency may require that a public contract be awarded to a responsible bidder or proposer, as defined in ORS 200.005, that the contracting agency determines has made good faith efforts as prescribed in ORS 200.045. [2003 c.794 §14; 2005 c.103 §5; 2009 c.235 §2; 2015 c.565 §12; 2023 c.497 §11]
Note: Sections 1 and 2, chapter 483, Oregon Laws 2025, provide:
Sec. 1. (1) As used in this section, “Oregon small business enterprise” means a business to which the Oregon Business Development Department issues a certification under subsection (2) of this section.
(2) The Oregon Business Development Department by rule shall specify eligibility criteria for certifying a business as an Oregon small business enterprise and shall issue a certification to a business that qualifies as eligible. The eligibility criteria must, at a minimum, specify:
(a) The maximum number of persons the business may employ;
(b) The maximum amount of revenue the business may generate;
(c) The location in which the business may operate;
(d) Other requirements that evaluate the operation of the business as a small business; and
(e) Other criteria that the department determines will aid in establishing eligibility.
(3) The Oregon Department of Administrative Services shall establish a program for granting preferences to Oregon small business enterprises in procurements the department conducts under ORS 279A.140. The program, at a minimum, shall:
(a) Develop guidelines for the department and for all state agencies on behalf of which the department conducts procurements to use to identify a range of public contracts that would be suitable for an Oregon small business enterprise to undertake successfully;
(b) Create effective strategies and methods for attracting, inviting, encouraging and enabling Oregon small business enterprises to participate in public procurement;
(c) Suggest changes in statutes and administrative rules that would enable the department to implement effective preferences for Oregon small business enterprises in public procurement and that would harmonize, streamline and otherwise improve the various small business preferences programs that now exist within state public procurement; and
(d) Establish, for participation by Oregon small business enterprises in public procurement, targets and goals that result in a reduction or elimination of disparities identified in the 2023 State of Oregon Disparity Study.
(4) As part of the program described in subsection (3) of this section, the department may:
(a) Conduct studies, develop models, issue requests for information, contact and interview or survey potential participants in a preferences program for Oregon small business enterprises, consult experts and otherwise use lawful means to carry out the purposes set forth in subsection (3) of this section; and
(b) State in solicitation materials for procurements the department conducts that the department will consider bids or proposals solely from Oregon small business enterprises.
(5) The department may adopt rules necessary to implement and administer the program described in subsection (3) of this section.
(6)(a) No later than December 31 of each year, the department shall report to the Governor and, in the manner provided in ORS 192.245, to the Legislative Assembly:
(A) The substance of the guidelines the department develops under subsection (3) of this section, with examples of categories of public contracts the department identifies as suitable for Oregon small business enterprises and the range of contract values and scopes of work the department considers appropriate for Oregon small business enterprises to undertake;
(B) The number of public contracts the department awarded to Oregon small business enterprises during the previous calendar year;
(C) The number of Oregon small business enterprises to which the department provides assistance under the program;
(D) The type and size of the small businesses that participate in the Oregon small business enterprise program;
(E) The aggregated value of public contracts the department awarded that had a connection to the program during the previous calendar year;
(F) Progress in developing the plan described in subsection (7) of this section; and
(G) Such other information about the program that the department deems relevant to report.
(b) The department shall collect and compile data necessary to prepare and submit the report described in this subsection.
(7) The department shall devise and implement a plan based on the recommendations from the 2023 State of Oregon Disparity Study. To the extent feasible, the department shall incorporate into the plan the results and findings of studies, models, expert opinion, contacts with potential participants and other methods available to the department under subsections (3) and (4) of this section. [2025 c.483 §1]
Sec. 2. Section 1 of this 2025 Act is repealed on December 31, 2031. [2025 c.483 §2]