Mayor Nutter signs Diversity Track Record Law

Mayor Michael A. Nutter has signed the Diversity Track Record Bill, introduced by City Councilman At-Large W. Wilson Goode, Jr., into law. The ordinance creates new requirements related to the submission of an Economic Opportunity Plan.

The Economic Opportunity Plans, required under Title 17 of the Philadelphia Code, must now contain a statement from the contractor, developer and/or recipient of financial assistance summarizing past practices to develop diversity at any/all levels of its organization including, but not limited to, Board and management positions. This statement will also summarize strategic business plans specific to current or past practices of DBE (disadvantaged business enterprise) utilization on government and non-government projects and procurement. The statement will contain: (1) Board, management, and general employment demographics by race, gender, and residential status; (2) list of DBEs utilized by project and date; (3) whether the DBE was certified; (4) size and scope of contract; (5) dollar/percentage amount of DBE participation; (6) information on minority and women investment, equity ownership, and other ownership or management opportunities initiated; and (7) other information requested by City Council during consideration of the Plan. Upon review, if there is no previous DBE utilization, the Plan shall contain a statement that explains the reason for the lack of DBE participation in past contract(s) or project(s).

Michael E. Bell, Director of the City’s Office of Economic Opportunity, said “I believe this amendment will foster a beneficial relationship between the developer and City as it creates an additional avenue of communication and exchange of information”.

A. Bruce Crawley, Founding Chairman of the African American Chamber of Commerce, said “The bill’s intent –to seek statements from bidders on municipal contracts that summarize the bidders’ past diversity – related practices, policies, organizational structures and board composition – is, in my opinion, a logical extension of the original Economic Opportunity Plan concept and will be an extremely useful tool for growing and managing the City’s economy”.

Councilman Goode said, “This new law requiring a statement regarding the company’s diversity track record will create better economic opportunity plans. We will hold companies accountable for their lack of diversity in the past. And those companies who don’t practice diversity in the future should be barred from doing business with City taxpayers’ dollars”.

don't pat yourself on the back too enthusiastically

This bill seems misguided on a few different levels.

First, it adds yet another time-consuming step to trying to get city work. The process is already a nightmare, and countless high quality contractors (minority and other) won't come to the City to bid on work because of the ridiculous amount of paperwork. (not to mention the inability of the staff responsible to answer questions about it)

Second, the City Solicitor has all but acknowledged that you can't refuse to award a contract to the lowest qualified bidder based on their past performance with respect to DBE's.

Third, reporting doesn't really solve the problem. The obstacles to DBE contractors are credit, bonding, insurance and cash flow. Anything else is window dressing.

What this does do, is allow Councilmembers to say they are helping (when they aren't), allow Crawley to say he is accomplishing something (when he isn't), and let everyone feel happy while avoiding the difficult issues, like forcing city work to city residents (who are more diverse), instead of allowing it to continue going to white guys from South Jersey who dominate the unions.

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