Special Note Regarding the City of Columbus Disparity Study Release
July 29, 2019

Greetings,

As many of you know, on July 24 the City of Columbus released the findings of the report that studied City contracts awarded by the City and Prime contractors of City contracts between January 1, 2012 and December 31, 2015. During this press conference, the City gave a high-level overview of the findings and recommendations and lauded inclusion efforts of the current administration (based on 2017 and 2018 utilization numbers and the 2016-2018 Inclusion Report ).

During this press conference ( video available here ), the City launched their new construction plan room and had partners discuss work they’ve done and will do with the City. The Office of Diversity and Inclusion made the Executive Summary of the Study available at the press conference and the full study was not available until 7 p.m. that day.
 
On July 25 th , City Council held a hearing on the Disparity Study , where the lead researcher (Mason Tillman Associates) provided an overview of the legal framework, research practices, data findings, and recommendations. See the full hearing here (my comments begin at minute 52:00).
 
As expressed in my comments, the swift nature of this release and hearing demonstrated a lack of forethought on the part of the City. Given the disparity revealed in the Report, giving the community time to read, digest, and reflect on the results for at least a week is entirely warranted (and might have resulted in greater participation by those affected).

Further, the current administration seemed to spend most of their time in these convenings patting themselves on the back for work done to date, but unfortunately many of the barriers revealed in the Study remain ingrained in City policies and procedures.
 
We at COAACC have taken the time to read the Report in its entirety and noted the following statistics:
  • MBE contractors received only 2,088 of all contracts reviewed (20,972) between 2012 and 2015
  • Only 202 of the contracts received by MBE contractors were over $50,000, only 33 of which went to women of color.
  • Statistically, African American owned businesses saw disparity in contracts received across every category reviewed (prime and subcontracts valued $0-$420,000)
  • African American companies received 826 of 20,972 contracts (3.94%)
  • African American owned companies received just 79 of 1,227 subcontracts in construction and professional services (6.44%)
  • 10.32% of all City contracts (31.74% of City goods and services contracts) went to out-of-state contractors (4,569 of 20,972)
  • Representing between 17.9 and 22.5% of available contractors per category, African American owned companies missed $84,387,627 in potential contract opportunities:
  • Construction:
  • Construction prime contracts valued between $100,000 and $1,550,000: $928,505 received (7.23%); $1,619,258 missed
  • Construction prime contracts valued $100,000 and under: $9,951,575 received (6.28%); $21,459,308 missed
  • Construction subcontracts: $5,158,271 received (3.07%); $20,112,335 missed
  • Professional Services:
  • Professional Services prime contracts valued between $50,000 and $420,000: $5,485,558 received (6.33%); $13,931,697 missed
  • Professional Services prime contracts valued $50,000 and under: $1,683,933 received (9.04%); $2,492,481 missed
  • Professional Services subcontracts: $10,875,759 received (10.06%); $11,984,142 missed
  • Goods and Services:
  • Goods and Services prime contracts valued between $20,000 and $180,000: $5,497,030 received (8.50%); $6,107,442 missed
  • Goods and Services prime contracts valued $20,000 and under: $1,596,969 received (3.46%); $6,680,964 missed

Note: we understand that no contract is guaranteed. However, we would like to see contracting levels from our public institutions to be more representative of the population they serve.
 
Columbus City Council will vote today (July 29) to accept or reject the findings. We urge City Council to accept the findings of this Study and provide the appropriate resources to implement the recommendations and we urge the City to provide the necessary resources to implement the study's recommendations.

Below, please find an outline of them as provided by Mason Tillman. COAACC strongly emphasizes the recommendations in bold and strongly urges the City to swiftly enact remedial measures to addresses these disparities. While all of the recommendations are worth implementation, we believe that the City should rely on community input in deciding which of them should be urgently implemented.
 
  • Race- and Gender-Conscious Recommendations:
  • Prime Contract Remedies: apply bid discount to construction and goods/services prime contracts; and establish evaluation points for professional services prime contracts
  • Subcontract Remedies: implement construction & professional services subcontract goals; require subcontract goal attainment at bid opening; quantify good faith efforts (for bid review), including: advertisements, outreach, pre-bid attendance, timely written notification, contact follow-up, clearly identifying items of work, negotiate in good faith, assist in securing financing, insurance, and/or competitive supplier pricing, and verification of commercial useful function;
  • Enhancements to the Supplier Diversity Program: create incentives for MWBE joint ventures, fully Staff the Office of Diversity and Inclusion; create a business advisory council, supplier diversity program training and manual; and conduct an outreach and marketing campaign.
  • Race- and Gender-Neutral Recommendations:
  • Pre-Award Recommendations: create a uniform procurement manual; implement one-step process to obtain registration, certification and prequalification status; re-evaluate the construction prequalification requirements; evaluate the use of universal term agreements; revise informal bid process; implement sheltered market program; implement an owner-controlled insurance program; establish an unbundling policy; provide debriefing sessions for unsuccessful bidders; enhance solicitation requirements; establish a designated design consultant selection committee; and waive bond requirements on small contracts.
  • Post-Award Recommendations: standardize subcontractor substitution standards; enhance the City’s financial management system; institute a subcontract payment verification program; and publish prime contractor payments.
 
Save the date for the community stakeholder meetings scheduled for Monday , August 5, 10 a.m. and 1 p.m. (location was not advertised as of 2:30 p.m. today). Click here to join ODI's email list to receive notifications. It is very important that our presence is noted and that our voices are heard. If you are unavailable on Monday but have comments to share, please let us know asap.
 
We look forward to engaging with you as we all challenge the City to do better. We will keep you updated on the developments and make sure you’re abreast of all opportunities for comments and participation.

Sincerely,
J. Averi Frost, Executive Director


(614) 377-4874