Mayor seeks bigger share of city contracts for minorities, women

Mayor Lori Lightfoot tried Wednesday to level the playing field for minority-and women-owned companies to give them the capital they need to survive and a bigger piece of the contracting pie.

Over the years, Chicago mayors have produced a parade of minority contracting reforms, only to have the share of city contracts awarded to firms owned by Blacks, Hispanics and women remain stubbornly static.

Lightfoot’s plan to remedy that disparity is being unveiled as she prepares to launch a five-year, $3.7 billion capital plan and receive an unprecedented $1.8 billion infusion of federal relief funds.

“The change we need and the change we want doesn’t just happen. We have to make it happen,” Lightfoot said.

“At its core, what we’re announcing today will help level the playing field for both current and future businesses that do business with the city of Chicago.”

Proposed changes include:

♦ A new, $25 million fund used to guarantee companies owned by minorities, women, veterans and people with disabilities receive access to affordable financing. The fund will give qualified and city-certified vendors preference in accessing Small Business Administration loans and tapping into Payroll Protection Program funds.

♦ A Prompt Payment Working Group to ensure minority- and women-owned companies receive timely payment for goods and services they provide the city. The group includes representatives from key infrastructure departments as well as the Departments of Law, Finance and Procurement Services.

Lightfoot said the city has had a reputation for slow payment since her days as deputy procurement officer for Mayor Richard M. Daley in 2005.

“No small- or medium-sized business can afford to carry a debt 60, 90 [days] or longer when they have to continue meeting payroll and buying materials to get an existing job done,” she said. “The city’s mantra must be when you deliver the work on time, it’s only right that you get paid on time.”

♦ An executive order enhancing reporting requirements. To get a better handle on performance, Lightfoot has mandated that city contractors “submit projections as to when and to what extent they expect to use certified” minority firms to meet the city’s setaside goals. That will be followed by quarterly reports on actual use for the duration of the contract.

After the death of George Floyd, many corporate chieftains talked a good game about ending structural racism in America, Lightfoot said, and “that’s great. But what we are now saying is, prove it.”

Ald. Gilbert Villegas (36th), chairman of the City Council’s Economic and Capital Development Committee, praised the reforms, though they do not go as far as he has proposed.

Villegas wants Chicago to raise the bar on minority set-asides to 30% (from 26%) for companies owned by minorities and 10% (from 6%) for firms controlled by women. He also wants to raise caps on gross income and personal net worth that have forced construction companies owned by women and minorities out of Chicago’s set-aside program.

“I can compromise,” Villegas said Wednesday.