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City contracts to minority and women-owned businesses are on the rise

Study found that 29 percent of city contracts went to these businesses.

THE CITY OF Philadelphia awarded $267 million in contracts to businesses owned by minorities and women in fiscal year 2014, a slight increase over the previous year, Mayor Nutter announced yesterday.

That's 29 percent of the contracts for which these businesses were available to perform, and close to the 30 percent goal set by the city.

"Every dollar spent by the city represents an economic opportunity for minority-, women- and disabled-owned businesses in Philadelphia," Nutter said in a statement.

"We want to expand the markets they serve and their capacity to grow their businesses and put people to work."

The contract data came from the Fiscal Year 2014 Annual Disparity Study, which analyzes the utilization of minority-, women- and disabled-owned businesses on city contracts and the availability of those businesses across the region. (No contracts were awarded to the nine businesses owned by disabled people registered with the city.)

The study, conducted by Econsult Solutions, Inc. and Milligan & Company, LLC, found that in fiscal year 2014 - July 1, 2013 to June 30, 2014 - the city awarded $267 million in contracts to these businesses.

That was an increase of $23 million, or 1 percent, over fiscal year 2013, when the city increased its participation goal for these businesses from 25 percent to 30 percent.

The study did not include 63 contracts valued at $198 million in its goal calculations, the city said, because few or no minority- or women-owned businesses are in the markets of electric energy supply, water treatment chemicals, oil/petroleum, helicopters, sludge barge transport services, fleet vehicles and medical personnel.

"Each of these markets in which [the target businesses] are underrepresented pose major barriers to entry and challenges for the city's inclusion efforts," Angela Dowd-Burton, executive director of the Office of Economic Opportunity, said in a statement.

"We will continue to work with city departments, certifying agencies including the Minority Supplier Development Council, the Women's Business Enterprise National Council and the African-American, Asian and Hispanic chambers of commerce to identify disadvantaged businesses that can meet the city's needs," she added.

To view the study, visit www.phila.gov/oeo.

For additional information on monthly meetings to educate vendors and contractors about opportunities to do business with the city, visit the OEO website or call 215-683-2057.