5.1: Increase equitable local small business contracting and procurement at the County
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Issue Statement and Context
According to Jorge M. Pérez FIU’s Metropolitan Center, 96% of businesses in our region have 49 employees or less. Small firms, and minority or women-owned firms, are not equitably represented when it comes to business opportunities with the County. A disproportionate amount of the County contracts are going to a consolidated group of large businesses, many from outside of the County, in which case profits and economic benefits are leaving our region altogether.
The inequities are rooted in how procurement systems are designed to favor size (and financial capacity) and narrowly defined “return on investment.” But there are likely biases in our processes that are compounding on minority-owned small businesses, in particular. One estimate by Miami-Dade County’s Economic Advocacy Trust (MDEAT) suggests that less than 2% of the County’s procurement contracts are with Black-owned businesses.
The inequities are rooted in how procurement systems are designed to favor size (and financial capacity) and narrowly defined “return on investment.” But there are likely biases in our processes that are compounding on minority-owned small businesses, in particular. One estimate by Miami-Dade County’s Economic Advocacy Trust (MDEAT) suggests that less than 2% of the County’s procurement contracts are with Black-owned businesses.
Detailed Action Summary
Increase the participation of local small businesses in contracting and procurement by reforming how the County evaluates businesses, partners to build capacity for underrepresented communities, and helps those businesses succeed as County contractors.
- Review procurement schedules to ensure equitable participation.
- Advance a “values-based” approach to procurement that expands how contract bids are evaluated to include criteria for equity, resilience, worker conditions, and community development.
- Provide capacity-building support to prepare firms to do business with the County.
- Address the absence of contract financing in the marketplace, tap capital partners including Community Development Finance Institutions, grants and forgivable loans to lend support to small businesses.
- Develop a Mentor-Protégé program to assist small businesses in gaining a better understanding of the procurement process, especially on large, complex contracts.
- Develop a formal vendor academy to provide regular communications, outreach, and training to County vendors on processes and changes.