To comply with federal guidelines, the UA must keep statistics on companies it does business with.

Whether for products or services, the University of Arizona tries to include small or minority-owned businesses in its procurement process.

Because federal grants often include stipulations requiring the use of small or minority-owned businesses, the university must keep data on such contracts, said Rick Franco, UA small business program coordinator.

"The statistics are kept for federal grant money," Franco said. "Some grants are very specific and require that information."

The Arizona Board of Regents recently made changes to the procurement code, adopting changes made to state procurement law, Franco said.

The change, an increase from $10,000 to $25,000 in the minimum amount required for a sealed bid process, went into effect July 1, the beginning of the fiscal year. The buyer is to make a "good faith effort" to include small businesses for at least 50 percent of the solicited vendors.

Through May, 4.19 percent, or $9.12 million, went to businesses considered disadvantaged, minority, or women-owned. Businesses classified as small accounted for 25 percent, or $56.29 million, of university-wide businesses.

Small businesses are defined in a variety of ways depending on the kind of company it is. Small can be defined by the number of employees, or by the amount of money it has made given the type of business it is, Franco said.

In general, federal law defines a small business as having under 500 employees, while state law draws the line at 100, he said.

The university has set goals of 30 percent to small businesses and five percent to disadvantaged, minority, or women-owned businesses, Franco said.

The UA is also trying to track "second tier procurement," which constitutes subcontractors and suppliers.

"Sometimes we get scientific equipment and wholesalers who use other companies' products in their products," Franco said. "If the product within the product is from a minority-owned or small business, we want to track that as well."

Franco's job also includes offering workshops to small businesses to provide them with a chance to meet and talk to university procurement people.

"It allows them to get to know the people involved from our end," Franco said. "But we won't be doing it that way again. We will be having a vendor fair allowing the procurement people to look around at the products available. It is just the opposite of what we did previously."

Franco is also working to improve the procurement and contracting services Internet Web site within the UA home page. He hopes to have an on-line directory to give university departments more direction in how to find small businesses.

Franco said the small business program is due to federal requirements, but it makes sense, too.

"It's just good business," said Franco. "It is also good for the state and local economy and the community."