DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICT(S) IMPACTED: All
SUBJECT:
Briefing on the FY 2018 SBEDA Program Annual Report
SUMMARY:
This is a briefing by the City of San Antonio Economic Development Department (EDD) on the FY 2018 SBEDA Program Annual Report.
BACKGROUND INFORMATION:
The Small Business Economic Development Advocacy (SBEDA) program combines best practices from around the country to create a robust and comprehensive policy that is designed to remedy disparity of local small, minority and women-owned businesses (S/M/WBEs) on City contracts. While the SBEDA program was established in 1992, a major overhaul to the program was implemented in 2011 that created various contract specific tools to increase S/M/WBE utilization on City contracts and also established a Goal Setting Committee, compliance module, Central Vendor Registry, and capacity building programs, such as the Mentor Protégé program.
Per the legal standard set by the U.S. Supreme Court case Richmond v. J.A. Croson Co. (1989), the City completed its third disparity study in 2015 that showed the City had progressed in utilizing S/M/WBE on City contracts, but disparity of S/M/WBEs in the San Antonio market area remained. As a result, the SBEDA program was amended in 2016 to expand the applicability of its tools for all industries and ethnicities/genders, as well as allow for S/M/WBE prime contractors to self-perform S/M/WBE subcontracting goals to perform a greater percent of the contract and further build their capacity.
ISSUE:
The FY 2018 SBEDA Program Annual Report highlights the distribution of dollars paid to S/M/WBEs on City contracts in which the SBEDA program applied. It also highlights specific small businesses that benefited from the SBEDA program to showcase success stories.
A few notable results documented in the FY 2018 SBEDA Program Annual Report include:
• $223 million (53% of approximately $419 million) was paid to S/M/WBEs. This figure represent a 9% increase from FY 2017 and represents the largest percentage of S/M/WBE utilization since the establishment of the SBEDA program in 1992, in which a disparity study found that only 10% of city contract dollars were paid to S/M/WBEs.
o $186 million or 44% was paid to local minority or women-owned businesses (M/WBE), exceeding the aspirational goal;
o $156 million or 37% was paid specifically to local businesses owned by ethnic minorities; and
o $30 million or 7% was paid to local women-owned businesses.
• The M/WBE aspirational goal for each industry was met except for the construction industry, which documented an increase in the percentage of dollars paid to M/WBEs from FY 2017 and achieved its best results to date.
o The construction industry documented 50% of City contract dollars were paid to S/M/WBEs ($114 million of $228 million);
o The architecture & engineering industry documented 75% of City contract dollars were paid to S/M/WBEs ($12 million of $16 million);
o The professional services industry documented 46% of City contract dollars were paid to S/M/WBEs ($26 million of $56 million);
o The other services industry documented 64% of City contract dollars were paid to S/M/WBEs ($56 million of $86 million); and
o The goods & supplies industry documented 51% of City contract dollars were paid to S/M/WBEs ($16 million of $32 million).
The Economic Development Department will distribute the FY 2018 SBEDA Program Annual Report to a variety of organizations, professional associations and trade organizations. In addition, the report will be distributed to various public entities, including CPS Energy, SAWS, and VIA Metropolitan Transit Authority.
RECOMMENDATION:
This briefing is for informational purposes only and no action is necessary.