City surpasses 25% participation goal for third consecutive year; goal to increase to 30% in FY15
Philadelphia, January 8, 2014 – The City of Philadelphia’s Office of Economic Opportunity (OEO) released its Fiscal Year 2013 Annual Participation Report, which details all City contracts with Minority, Women, Disabled and disadvantaged small businesses (M/W/DSBEs) during FY13. The overall City and Quasi-City participation rate with (M/W/DSBEs) for FY13 was 28.2%. This is the third straight year that the City has surpassed the 25% participation goal set forth in the Nutter Administration’s 2010 Inclusion Works Strategic Plan.
Furthermore, due to the advocacy and support of Office of Economic Opportunity, the number of Philadelphia businesses that have been formally certified as Minority, Women and Disabled and disadvantaged enterprises by a City-approved certifying agency has expanded to 2,175 businesses, an increase of more than 63% since 2010. OEO maintains a registry of these firms on Department of Commerce website: www.phila.gov/commerce.
Since the OEO has seen consistent success in increasing the number of registered minority and women-owned companies doing business with the City, Mayor Nutter has announced that the City’s participation goal will be raised to 30%.
“As a result of our success, we have decided to continue our trend of being aggressive at supporting inclusion. For Fiscal Year 2015 we have increased our goal to 30%, a number that I am confident we will be able to achieve,” states Mayor Nutter in the report’s Introduction.
The OEO report examines the portfolio mix of City contracts awarded during the period July 1, 2012 through June 30, 2013. Participation on City contracts is defined as the percentage of total contracts for which OEO has an available pool of M/W/DSBEs. In FY13, the City and Quasi-Public Agencies awarded $243.6 million in contracts to M/W/DSBEs. City Departments alone awarded $157.8 million to M/W/DSBEs, representing 29% of Departmental contracts in FY13. Participation in professional service contracts reached 33%, well above the City’s participation goal of 25%.
The OEO report also details the breakdown of contracts by gender and ethnicity. African American-owned businesses earned $77.6 million, or 46% of the M/W/DSBE contracting opportunities. White women-owned enterprises were awarded $63.2 million (38%), Asian-American businesses received $12.9 million (8%) and Hispanic/Latino-American enterprises received $12.4 million (7%) of the M/W/DSBE contract portfolio. Other disadvantaged groups including Native Americans, Native Hawaiian/Pacific Islanders and the Disabled-owned businesses received $1.0 million, 1% of contracts awarded.
Importantly, the report also outlines challenges that M/W/DSBEs face in acquiring City contracts. These include: access to capital, bonding, business networks and infrastructure. OEO works diligently to connect disadvantaged businesses to local training opportunities, such as the Goldman Sachs 10,000 Small Businesses initiative and capital programs such as the Philadelphia Industrial Development Corporation’s Small Business Emerging Loan Fund.
“The results that the Office of Economic Opportunity has achieved over the last few years are due to our dual strategy of pushing the demand for disadvantaged businesses, while simultaneously building the capacity of the supply chain. We have partnered with City Departments, Quasi-City agencies and contractors to set aggressive participation goals and have worked diligently to ensure that our M/W/DSBE businesses are equipped to take on, and maintain, major contracts. We recognize that in order to achieve the City’s goal for 2015, M/W/DSBEs must be prepared to support contracts as the primary provider of products and services,” said Angela Dowd-Burton, OEO’s Executive Director.
The Office of Economic Opportunity will continue to engage all sectors of the community to expand economic opportunity for the growth and prosperity of this region. All certified suppliers should make sure to join the City’ Procurement Department Bidders List at http://bids.phila.gov and all personal and professional service firms should register with the City to receive contract opportunities through www.phila.gov/contracts.
The FY13 Annual Report is located at http://www.phila.gov/commerce/doBusiness/Pages/OEOReports.aspx. 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.