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City councils

Boston Launches Equity in Procurement Pilot Program

Strategic Insights

— 1 min read

The City of Boston has announced a new sheltered market program that will allow up to 6 city contracts to be procured from minority- and women-owned businesses. The pilot program, set to run until June 30, 2022, aims to address historic inequities in the city's procurement process. According to a 2020 disparity study, only 1.2% of the city's contracts for construction and professional goods and services went to Black and Latinx-owned businesses.

Key Takeaways:

  • The sheltered market program will designate up to 6 city contracts for procurement from minority- and women-owned businesses.
  • The pilot program is part of a larger initiative to direct city resources to local, diverse businesses that can build wealth and support economic growth.
  • The City of Boston has identified a significant disparity in its procurement process, with only 1.2% of contracts going to Black and Latinx-owned businesses in 2020.
  • The program will be implemented in collaboration with the City Council, the Administration and Finance Cabinet, the Equity and Inclusion Cabinet, and the Economic Opportunity and Inclusion Cabinet.
  • Mayor Michelle Wu has committed to using public dollars to build wealth in communities and close the racial wealth gap.
  • The pilot program will measure effectiveness in addressing inequities in the procurement process.
  • The City of Boston has a history of commitment to equitable contracting, including a 2017 ordinance co-sponsored by Mayor Wu and Congresswoman Ayanna Pressley.

Statistics:

  • 1.2% of the $2.1 billion City's contracts for construction and professional goods and services went to Black and Latinx-owned businesses in 2020 (Source: City of Boston Disparity Study, 2020).
  • The sheltered market program will provide opportunities for minority- and women-owned businesses to compete for and be prime contractors for the city (Source: City of Boston Press Release).
  • The pilot program aims to increase the number of city contracts going to women-owned and minority-owned businesses (Source: Segun Idowu, incoming Chief of Economic Opportunity and Inclusion).

Sources:

  • Mayor's Office Sheltered market program would allow City of Boston to designate certain contracts for procurement from minority- and women-owned businesses.
  • City of Boston Press Release, Mayor Michelle Wu Files Order to Create Equity in Procurement Pilot Program.
  • City of Boston Disparity Study, 2020.
  • Foundation for Business Equity, Foundation For Business Equity Statement on Sheltered Market Program.
  • Boston Impact Initiative, Initiative Statement on Sheltered Market Program.

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