New Orleans committee approves DBE program amendments
Published on 06/17/2013
A series of amendments designed to create a more robust disadvantaged business enterprise (DBE) program in New Orleans were approved easily by the City Council's Economic Development Committee last week. The measures are expected to be voted on for final approval by the full council later this month.
The changes, initially proposed by Mayor Mitch Landrieu, would permit the city to terminate contracts or withhold payments to contractors that fail to comply with DBE requirements. Currently, contractors are required to demonstrate that they have made a good faith effort to meet the DBE goal prior to the awarding of the contract, but the city lacks an enforcement mechanism to ensure that prime contractors followed through with their DBE participation obligations.
Additionally, the amendments will make the application of DBE goals on specific contracts dependent on the availability of certified DBEs for the work required. This alteration would result in higher DBE goals on some contracts, and lower goals on others.
Under Mayor Landrieu, the city has boosted its efforts to include small locally-owned, minority, and women businesses on its contracts. The number of DBEs registered with the city has doubled to over 600, and eligible firms can now become certified more quickly. The certification process, which used to take about a year, is now completed in 45 days.
New Orleans came close to achieving its 35 percent DBE participation goal last year, with 34 percent of city contracts going to certified businesses. The figure represents a significant increase over 2010, when DBEs captured only 16 percent of city dollars.
