DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Briefing on the FY 2020 Small Business Economic Development Advocacy (SBEDA) Annual Report.
SUMMARY:
Briefing on the FY 2020 Small Business Economic Development Advocacy (SBEDA) Annual Report that highlights the City’s distribution of dollars to small, minority, women-owned businesses on City contracts in which the SBEDA Program was applied.
BACKGROUND INFORMATION:
The Small Business Economic Development Advocacy (SBEDA) Program is a robust and comprehensive policy designed to cure historically documented disparities in local small, minority and women-owned businesses (S/M/WBEs) participation on City contracts. Established in 1992, the SBEDA program has undergone numerous amendments over the past 30 year with the most significant improvements following the completion of 2010 and 2015 disparity studies.
The most significant improvements over the last 10 years include the establishment of a Goal Setting Committee, compliance module, Central Vendor Registry, Mentor Protégé Program, as well as new and expanded race conscious tools that specifically encourage and promote S/M/WBE utilization at the prime contractor and subcontractor levels.
These improvements and documented increases in S/M/WBE utilization on City contracts led to the City of San Antonio receiving an Excellence in Economic Development Gold Award from the International Economic Development Council in the Economic Equity and Inclusion, Population Greater than 500,000 category.
ISSUE:
The FY 2020 SBEDA 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, minority and women-owned businesses that benefit from the SBEDA program and showcases their success stories.
Notable results documented in the FY 2020 SBEDA Annual Report include:
• 54% of City contract dollars were paid to 509 unique S/M/WBEs, which amounts to $219 million of $408 million of City contracts in which the SBEDA program applied. This figure represents a 3% decrease from FY 2019; however, this result is the second largest percent utilization of S/M/WBEs since 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 Approximately 47% or $190 million was paid to local minority or women-owned businesses (M/WBEs), exceeding the overall aspirational goal of 41%.
o The M/WBE aspirational goal was met in four (4) out of five (5) industries: architecture & engineering, construction, goods & supplies, and professional services.
• 52% of City construction contract dollars were paid to S/M/WBEs ($135 million of $259 million), of which 47% or $120 million went to M/WBEs, representing the first occurrence in which the City’s aspirational goal in the construction industry has been achieved;
• 46% of City other services such as landscaping, mowing, and custodial service contract dollars were paid to S/M/WBEs ($25 million of $53 million), of which 35% or $19 million went to M/WBEs;
• 55% of City goods and supplies contract dollars were paid to S/M/WBEs ($16 million of $29 million), of which 51% or $15 million went to M/WBEs;
• 61% of City professional services contract dollars were paid to S/M/WBEs ($25 million of $41 million), of which 54% or $22 million went to M/WBEs;
• 68% of City architecture & engineering contract dollars were paid to S/M/WBEs ($17 million of $26 million), of which 56% or $14 million went to M/WBEs.
The Economic Development Department will distribute the FY 2020 SBEDA Annual Report to community stakeholders, professional associations and trade organizations in May 2021. In addition, the report will be distributed to various public entities, including Bexar County, CPS Energy, SAWS, and VIA Metropolitan Transit Authority and be available for view and download on the City’s EDD website.
ALTERNATIVES:
This item is for briefing purposes only.
FISCAL IMPACT:
This item is for briefing purposes only.
RECOMMENDATION:
This item is for briefing purposes only.