Philadelphia, October 28, 2011 – Mayor Michael A. Nutter announced that the Office of Economic Opportunity’s (OEO) Fiscal Year 2012 participation goal will be 25 percent. This maintains the City’s current goal, which was exceeded this past fiscal year. This benchmark is set through the City’s Disparity Study, which calculates the goal percentage based on the availability of minority, women and disabled-owned business enterprises (M/W/DSBEs) with the capacity to utilize the contract opportunities. OEO also released an Annual Report that commits the City to reaching this participation goal and offers strategies for the City to achieve it for FY 2012. FY 2012 started on July 1, 2011 and will end on July 30, 2012.
“Even though our participation goal remains the same, we are still faced with the challenge of reaching it again this year during a difficult economic climate,” said Mayor Nutter. “Minority, women and disabled-owned business participation is vital to a vibrant, competitive marketplace and OEO has done a commendable job of offering these businesses the tools they need to be successful. The City has many contracting opportunities, and I would like to encourage companies to register with the City to learn more.”
The Disparity Study was submitted by Econsult Corporation and Milligan & Company. Based on their findings, the Study highlights include:
1. M/W/DSBE utilization increased from 17.6 percent in FY 2009 to 20.8 percent in FY 2010 or $ 123 million of the $592 million in City contracts.
2. M/W/DSBEs were the prime contractors for 12.9 percent of City contracts in FY 2010, which was up from 9.9 percent in FY 2009.
3. Additionally, M/W/DSBEs represent 22.5 percent of firms with employees within the Philadelphia region, down from 24.6 percent in FY 2009.
The FY 2011 Annual Report provides the cumulative M/W/DSBEs participation results for the City of Philadelphia operating departments and quasi-government agencies. The City achieved a 25.6 percent participation rate on $892.6 million awarded to the private sector, up from 23.7 percent in FY 2010. This Report also highlights the lessons learned by OEO in FY 2011 and the new initiatives that will be implemented in FY 2012 to increase the application of best in class practices to support the 2010 Inclusion Works Strategic Plan.
Angela Dowd-Burton, Executive Director of OEO, commended Econsult Corporation and Milligan & Company for their new approach to the analyzing the availability of M/W/DSBEs based on the City’s spending patterns, “This method allows us to appreciate the number of businesses in the market that sell the products and services that the City actually needs and supports the City’s pursuit of a 25 percent participation goal in a more meaningful way.”
To view the FY 2010 Annual Disparity Study or the FY 2011 Annual Report, please visit www.phila.gov/oeo.
The OEO promotes the economic development of M/W/DBEs through its OEO Registry, bid/RFP participation targets and contract compliance activities. In addition, OEO has ongoing interaction with other City departments, quasi-public agencies and the private and non-profit sectors. Monthly meetings are held to educate vendors and contractors about opportunities to do business with the City, PGW, PA Department of General Services, PIDC, SEPTA, and the U.S. Small Business Administration. For details visit the OEO website at www.phila.gov/oeo or call 215-683-2057.
