Bias problem under our noses

Local governments, including New York City, have a major problem with race and gender that almost no one is talking about and even fewer people are angry about. Maybe that is because budgeting certifications, contracting and change orders don’t sound interesting; procurement reform doesn’t sound like a good base for a racial justice chant; and Minorityand Women-Owned Businesses certainly don’t sound like they could be key to ending the racist, misogynist and exclusionary economic policies that have historically centralized wealth in few hands.

In a time when racial and economic justice is being widely discussed throughout the country, we are still not talking nearly enough about the fact that our local governments distribute a tremendous amount of money themselves. Either that money can reinforce the current economic strata or we can use it to support small business owners, including businesses owned by women, blacks and Latinos.

The truth is, for centuries, public money has primarily flowed into the hands of a select and privileged few,

particularly business owners running large companies. The government procurement system is set up for them. More recently, governments at all levels have created certification programs and set goals to increase the amount of business they are doing with minority- and women-owned businesses. To a large degree, though, MWBEs still find themselves locked out from working with governments.

In New York, for example, our city currently has a budget in excess of $92 billion, which includes $19.3 billion distributed through contracts. That money could be making its way into every corner of our communities. Every time an infrastructure project starts, a catering company is hired or an outside expert is called in, the government is spending our tax dollars. It is up to our elected representatives whether that impact is positive or negative.

So why are we angry? Because in a city that spent almost $20 billion on government contacts in 2018, only 5.5% of contracts were awarded to businesses owned by women and people of color. And when businesses who fall under the umbrella category of “minority and women owned businesses” (also known as MWBEs) do receive city contracts, they rarely are awarded to Hispanic and black women. Non-white women continue to receive only a meager percentage of government contracts.

In 2019, when everyone in New York City government claims to be fighting for an end to racial, gender and economic injustice, why are we only contracting 5% of our budget with MWBEs? In a city like ours, where blacks and Latinos each make up about a quarter of the population (and women, of course, are half ), why are contracts still not being distributed more fairly?

New York City has set laudable goals to increase MWBE contracts to 30% by 2025, and we are seeing slow and steady progress towards that goal. But it’s not enough.

It’s not just New York City, however. Across the country, businesses run by minorities and women, which are often smaller and younger companies, face significant hurdles when it comes to obtaining government contracts, including costly and burdensome compliance requirements and RFP processes.

Then there are the late payments. Larger companies might be able to stay afloat when payments come late or stop altogether while a contract is updated (which is common for infrastructure projects in particular). Most businesses run by women and minorities tend to be smaller and unable to operate under those conditions.

Exploring innovative ways to streamline and simplify the procurement process, making sure there’s a level playing field, would send billions of dollars into the hands of low income communities.

How our cities do business reflects the values of the residents. In one of the wealthiest cities on earth, where the ultra-rich play in Hudson Yards and Billionaires’ Row, we still haven’t figured out how to better support small business owners and working families. It’s not just a shame, it’s a travesty. We can do better — here and around the country.

Brannan represents Bay Ridge and Dyker Heights in the City Council. Sharpton is founder of National Action Network.