With unemployment lingering at 11 percent in Los Angeles County, Controller Wendy Greuel has found that the city lags in certifying businesses that are minority-owned, women-owned and run by disabled veterans in competing for city contracts.
This has left countless jobs and nearly $100 million dollars on the table for disadvantaged businesses.
“Business as usual no longer will cut it in Los Angeles,” Ms. Greuel said as she criticized the city’s contracting practices for minority- and women- owned businesses. “The city has a two-year backlog of certification requests for these businesses. This has caused small businesses to lose out on $100 million in contracts they couldn't compete for.
“When Los Angeles is struggling to rebound, it’s unacceptable that the city is not doing more to help businesses create jobs. Steps must be taken immediately to address this issue.”
Ms. Greuel’s review of the city’s Minority and Women Enterprise Contracting Program identified several areas of improvement. While all construction contracts were subject to the outreach requirements, only 37 percent of commodities and professional service contracts were subject to the requirements, denying disadvantaged businesses the opportunity to participate in city contracts totaling $100 million in 2009-2010 alone.
Close to a Billion
Additionally, between 2008 and 2010, departments submitted 453 waiver requests worth over $955 million, further limiting the program’s impact. Ms. Greuel, a candidate for mayor ofLos Angeles in next March’s election,m also found that the program is undermined by a lack of benchmark objectives, exemptions, and excessive waiver requests.
“We would like to thank Controller Greuel for shining a bright light on contracting equity,” said Gene Hale, Chairman of the Greater Los Angeles African American Chamber of Commerce. “As longtime advocates for increasing minority participation in city contracts, we exemplify the connection between small business and local employment. We have seen some improvements in process and transparency.”
“Increasing economic opportunity for minority and small business owners will create jobs in the city of Los Angeles,” said Roberto Barragan, President and CEO of Valley Economic Development Center. “The city must join Controller Greuel in improving programs that create jobs and will improve our economy.”
Ruben Guerra, Chairman of the Board and CEO of the Latin Business Assn., said that “when every effort must be made to improve our economy, we must focus on creating opportunity for minority business owners.”
“It is critical that we focus on expanding economic opportunities for minority business owners in Los Angeles,” said Dennis Huang, Executive Director of the Asian Business Assn.
“We recognize that the mayor's office has been working to improve equal access for women business owners, but we still have a lot work ahead of us,” said Jane Pak, President/CEO of the National Assn. of Women Business Owners.
“In these times, it’s important that city leaders do everything to create a level playing field for all Angelenos,” said Ms. Greuel as she called on Mayor Villaraigosa and the City Council to ask departments to step up their reporting for the program. She urged them to devise a standardized reporting template to ensure consistency in reporting categories.
“City departments need to be held accountable,” Ms. Greuel said. “The mayor and Council need to ensure that resources are available to prioritize this program.”
Ms. Greuel’s website: http://controller.lacity.org/index.htm
