Philadelphia, September 20, 2012 – Mayor Michael A. Nutter announced that the City exceeded its goal of 25% participation for minority, women and disabled-owned business enterprises (M/W/DSBE), as established by Philadelphia’s Office of Economic Opportunity, hitting a 3rd Quarter participation rate of 27 percent for the first nine months of FY12 for City and quasi-public agency contracting.
The City awarded a total of $169 million to M/W/DSBEs throughout this period including federal projects. In FY11, the comparable spending was $159 million, representing 26 percent participation. Minority businesses were awarded $115 million and women owned businesses were awarded $54 million in contracts.
“In difficult economic conditions, we must work harder on our goals of inclusion,” said Mayor Nutter. “While our 3rd Quarter performance shows progress, I am committed to doing more to support the growth of disadvantaged businesses to create jobs.”
The OEO Fiscal Year 2012 3rd Quarter Participation Report examines City contracts awarded for the first nine months of the year. The OEO Registry of 2,030 certified businesses has increased 52% since the launch of Mayor Michael Nutter’s Inclusion Works: Economic Opportunity Strategic Plan in February 2010.
The number of M/W/DSBEs receiving City contracts rose by 32% in the period under consideration. In addition, the City saw more disadvantaged businesses competitively bidding and winning contracts as primary providers. These findings highlight an increase in the engagement of M/W/DSBEs on City contracts.
Quasi-Public Agencies also continue to build a portfolio of projects, demonstrating a robust 28.5% participation rate for the first nine months of the fiscal year. M/W/DSBEs received $51.3 million in contracts on these projects, representing an increase over the $41.2 million awarded in FY11. The Philadelphia Redevelopment Authority, Philadelphia Industrial Development Corporation and Philadelphia Housing Development Corporation share the City’s “Inclusion Works” strategy and work closely with OEO to expand outreach efforts, create opportunity and enforce contract compliance.
“Opportunities for M/W/DSBEs are growing. The city is exploring and discovering new ways to identify M/W/DSBEs in markets where few or no companies are registered,” said Angela Dowd-Burton, Executive Director of the Office of Economic Opportunity. “We have achieved some milestones but we still have work to do. Working with leaders on the Philadelphia International Airport $6.4 billion expansion and closing the gap on the ‘few or no suppliers’ portfolio are just two of this Administration’s top priorities.”
This 3rd Quarter Participation Report takes a closer look at those products and services purchased by the City for which there are few or no M/W/DSBEs. A majority of the Citywide contracts and a portion of the professional services contracts, valued at $146 million, do not have M/W/DSBEs. The City’s 2012 Annual Disparity Study identified key services and products for which M/W/DSBEs suppliers are lacking, notably: electric service, water treatment chemicals, petroleum products, pharmaceutical supplies and similar critical products and services.
OEO continues to set goals that are data driven and monitors the compliance of primes and sub-contractors. Outreach remains a critical part of the OEO mission.“The OEO continues to expand its network and infrastructure with a strong emphasis on increased participation and post contract compliance,” confirmed Mayor Michael Nutter.
Monthly programs, “Doing Business with the City” and “Building Businesses and Putting People to Work” continue to provide local businesses with access to information and opportunities in the public and private sectors. Comcast, Sugarhouse Casino, Philadelphia Gas Works, SEPTA, the Small Business Administration, PA Department of General Services, PIDC-Navy Yard and others have played an integral role in this outreach strategy.
The “Inside OEO” section of the Third Quarter Report covers the latest policies, tools and strategies deployed to create an inclusive environment. Highlights include: the City’s Airport Expansion project, work of the Economic Opportunity Review Committee, progress on the implementation of a new payment tracking system and certified payroll filing systems.
Mayor Nutter this week signed an executive order that continues the Inclusion Works Strategic Plan. It provides a more streamlined registration protocol, an expedited bidder appeals process, and supports the City’s efforts towards maintaining integrity in its bid process.
To view the Third Quarter Report, please visit www.phila.gov/oeo. For additional information on monthly meetings to educate vendors and contractors about opportunities to do business with the City, please visit the OEO website or call 215-683-2057.