Council presses supplier diversity leaders as legacy‑business grants and ARPA pilots wind down

At an April 30 Ways & Means hearing, Andrea Carruth, director of the Department of Supplier Diversity, defended recent reforms intended to expand access for minority and women business enterprises (MWBEs) and gave officials’ most recent metrics.

Carruth said Inclusive Quote Contracts (IQCs) — a streamlined procurement option for purchases between roughly $10,020 and $250,000 — accounted for $3,200,000 of a reported $115,000,000 pool of diverse‑supplier contracting in Q1–Q3. She also said roughly 10% of the city’s contracting dollars in Q1–Q2 went to certified MWBEs, representing about $84 million, and that discretionary spending to MWBEs was about 11.6% (approximately $72.5 million).

Councilors pressed staff on the supplier‑diversity operating budget, which panelists said has decreased (panel estimated an 11% reduction for the office). Several members asked whether the city has a plan to sustain gains made with one‑time ARPA dollars, including the SCALE program. “This program was funded through ARPA funds, we had $5,000,000 or so that we used to hold up this program,” Carruth said. Panelists said SCALE was a pilot that the administration hopes will produce a template for future work but that the ARPA funding is not recurring.

Councilors requested data showing whether SCALE participants have since won city contracts and asked for a timeline for a planned disparity study; Carruth said an RFP is being prepared internally and staff will provide the schedule. Members also discussed breaking larger contracts into smaller bid packages and improving outreach so procurement staff and prime contractors better know available certified MWBE subcontractors.

The exchange underscored two outstanding questions for the council: (1) how to sustain and institutionalize ARPA‑funded capacity building once one‑time funds lapse, and (2) whether additional staffing or reallocation of operating dollars is required to preserve recent MWBE gains. Panelists agreed to return follow‑up metrics and the disparity‑study RFP timeline.

Next steps: the council asked for data on SCALE conversion rates to city contracting, the timetable for the disparity‑study RFP, and a detailed accounting of the supplier‑diversity operating reductions and their programmatic impacts.