Boston Expands Access to City Contracts for Minority- and Women-Owned Businesses

Strategic Insights -

Mayor Michelle Wu's proposal would raise the written quote contract maximum for certified minority- and women-owned business enterprises (MWBEs) from $50,000 to the state Small Purchase threshold of $250,000. This change aims to lower barriers to access for MWBEs and allow the City to make a greater investment in these businesses. The proposal is part of a larger initiative to direct City resources to local, diverse businesses that are vital to expanding wealth-building opportunities and supporting their capacity to compete for city contracts.

Key Takeaways:

  • The City of Boston seeks to expand access to city contracts for minority- and women-owned business enterprises (MWBEs) by raising the written quote contract maximum from $50,000 to $250,000.
  • The proposal aims to lower barriers to access for MWBEs and increase the City's investment in these businesses.
  • The change is part of a larger initiative to direct City resources to local, diverse businesses that support wealth-building opportunities and capacity to compete for city contracts.
  • In 2020, the City's contracts for construction and professional goods and services showed only 1.2% of the $2.1 billion went to Black and Latinx-owned businesses.
  • The City of Boston released a disparity study in 2020, which found historical disparities in contracting opportunities for Black and Latinx residents.
  • Mayor Michelle Wu's proposal seeks to amend Massachusetts General Law 30B, which was passed in 1990, to establish procedures for the acquisition of supplies or services, the disposition of surplus supplies, and real property acquisitions and dispositions by local governmental bodies.

Statistics:

  • 1.2% of the $2.1 billion City contracts for construction and professional goods and services went to Black and Latinx-owned businesses in 2020.
  • $250,000 is the state Small Purchase threshold, which is the proposed new maximum for written quote contracts awarded to certified MWBEs.
  • $50,000 is the current written quote contract maximum for certified MWBEs.
  • 1990 is the year Massachusetts General Law 30B was passed to establish procedures for the acquisition of supplies or services.

Sources:

  • "Mayor Wu Files Home Rule Petition to Expand Access to City Contracts for Minority- and Women-Owned Businesses," City of Boston press release.
  • "Disparity Study Highlights Contracting Disparities in Boston's Professional Services and Construction Contracts," City of Boston release, 2020.
  • Massachusetts General Law 30B, passed in 1990.