Dear Mr. Mayor - Cultivate City's Minority Businesses

By: BY DENISE FIELDS | Times-Dispatch
Published: February 15, 2009

I recommend that Mayor Jones develop a comprehensive minority economic development strategy, which includes the following:

On an annual basis, mandate that each city department formulate supplier diversity goals. The departments of community and economic development should also have an active role and responsibility in this initiative. Richmond needs to develop a reputation that clearly communicates that quantifiable, across-the-board supplier diversity goals -- not quotas -- shall be a requirement for any firm, private developer, etc., seeking to capitalize upon city resources and support.

The minority economic development strategy would require certification for ethnic minorities (blacks, Hispanics, Asians, etc.), whereby they must demonstrate concise evidence of social and economic discrimination. This certification process would provide additional points in the awarding of contracts -- if the business is located in a Historically Underutilized Business Zone (HUBZone) within the city, if the owner is a city resident, and if the business is small, with gross revenue of less than $1 million annually.

Name a director who has vast expertise in purchasing, contracting, and/or construction and preferably who has owned a small business.

Formulate a process for the Office of Minority Business Enterprise (OMBE) to work closely with the city's purchasing department in identifying, sourcing and recruiting qualified MBE firms. The OMBE should be actively engaged with the department of purchasing in providing feedback and counsel, relative to the availability of MBE firms for requests for proposals, bids, etc.

If a proposed contractor cannot achieve an acceptable level of supplier diversity in its proposal responses, the city should evaluate the feasibility of unbundling the project or postponing the award, so that MBE firms can be identified and given an opportunity to participate.

On large contract awards -- of $5 million or more -- the city should set up a procurement review strategy, which would guide the development of RFPs, the solicitation and outreach to MBEs, the review of the proposals, and the award process -- to ensure MBE firms were given optimal opportunities for participation.

If a prime contractor cannot substantiate that all MBE subcontractors it named in its bid were awarded contracts and have been paid in full, the city should withhold payments until it can substantiate and/or confirm all payment claims.

Continue to provide the OMBE with resources to develop ongoing outreach, advocacy, and training programs -- in order to advance the growth of locally owned minority businesses in the community.

Denise Fields is the president of the E2C Group LLC, a Class A general contracting firm with offices in Washington and Richmond. The company is certified as a minority business enterprise.