When you look at the availability of companies that could in fact participate on City contracts, if they were given the opportunity to do so, those --
Do the participation goals have to be based upon the disparity study?
According to Article 6-109 of the Philadelphia Home Rule Charter, they do.
Councilman, would you agree that if we could achieve higher than the disparity study would 103 4/21/10 - WHOLE - BILL 100115, etc. allow, that we could pursue that goal?
But my question to you was, do the goals have to be based upon the disparity study.
And your answer was no. According to the Home Rule Charter, it does.
Thank you, sir. I was trying to be a little more optimistic.
A dog barks, but it still doesn't hunt. Optimism is not what we're trying to do here. What we're trying to do is take a data-driven approach that is based upon work done by Econsult and based upon what actual capacity and availability is, set goals that are reasonable. If we want to set a 104 4/21/10 - WHOLE - BILL 100115, etc. range that goes beyond what the capacity and availability is, then we can. I don't believe that there's a need to set anything other than a realistic goal and know what that goal is and we actually achieve that realistic goal. The disparity study has said for years that the capacity exists, the availability of minority, women and disabled businesses exist to obtain a to 28 percent level 12 of participation. Why under this 13 Administration has that level of 14 participation not been achieved if the 15 disparity study says that it can be? 16
Well, 17 Councilman, all I can do is focus on 18 moving forward and -- 19
No. You can 20 answer the question. The question is, 21 why in this Administration that level of 22 participation has not been achieved. If 23 the disparity study suggests that it 24 could be achieved, if the Philadelphia 25 Home Rule Charter mandates that there has 105 4/21/10 - WHOLE - BILL 100115, etc. to be a disparity study, that there have to be annual participation goals based upon the disparity study and Econsult, a reputable firm, said that the capacity and availability exists among minority, women and disabled businesses to achieve at least to 28 percent, it's a fair 9 question to ask why that level has not 10 been achieved if there is actually a 11 difference between OEO and MBEC. That's 12 a fair question. 13
The only 17 answer that I could give that I think is 18 relevant is the fact that if you move the 19 mission of OEO from certifying companies 20 in a way that's passive to being an 21 advocate for companies, which is where we 22 are today based on our Strategic Plan -- 23
You mean if 24 you move away from certification into the 25 goal-achievement process? 106 4/21/10 - WHOLE - BILL 100115, etc.
Okay. Let's move forward. What is OEO's role in achieving the level of participation as it relates to departmental goals and how are departmental goals determined?
OEO is focused on generating a broader spectrum of companies participating in our registry, which will be available for operating departments to use or contract with on City contracts.
The question is more specifically, how are departmental goals set?
They're based on the availability of companies to meet 107 4/21/10 - WHOLE - BILL 100115, etc. their needs.
Are the departmental goals based upon the disparity study?
How are those based upon the disparity study? In other words, are the goals that are set for departments the same goals that are set in the disparity study?
Okay. What was the goal set for Licenses and Inspections?
No. That was set by the joint conversation between OEO 108 4/21/10 - WHOLE - BILL 100115, etc. and the department.
So it was 4.63 percent. It is now percent. Do 10 either of those numbers come from your 11 technical consultant? Were either of 12 those numbers set in the disparity study? 13
The question 16 is whether those numbers came from the 17 disparity study. Because first you said 18 they did, then you said they were two 19 different numbers. So one of them didn't 20 come from the disparity study and/or both 21 of them didn't come from the disparity 22 study. 23
A specific 109 4/21/10 - WHOLE - BILL 100115, etc. goal for Licenses and Inspections was set at percent? 4
A specific 5 goal for Licenses and Inspections was set 6 by the Commissioner during her testimony 7 for 25 percent. 8
Was a 9 specific goal of 25 percent set for 10 Licenses and Inspections within the 11 disparity study? 12
So the 15 departmental goal was not set by the 16 disparity study? 17
The 18 departmental goal was set by the 19 overarching goal for the City. 20
The 21 departmental goal was set by the general 22 goal. 23
So each 25 department has a goal of 25 percent? 110 4/21/10 - WHOLE - BILL 100115, etc.
Each department, we're going to strive for 4 percent or more participation. 5
My whole 6 question is whether this is data driven 7 based upon the disparity study or not, 8 and we've already proved there's no 9 difference yet between OEO and MBEC, 10 because you just make numbers up. So the 11 first question was whether the annual 12 participation goals are set by the 13 disparity study. That answer is somewhat 14 no. The next question is whether the 15 departmental goals are set by the 16 disparity study. That answer is somewhat 17 no, if not no. The next question is how 18 are RFP goals set? 19
As determined 24 by the operating departments and OEO. 25
Not by the 111 4/21/10 - WHOLE - BILL 100115, etc. disparity study?
Historically it has not been driven by the disparity study. In the future it will be driven by the disparity study.
I'm almost finished, because I don't think we're going to reach much consensus here today. In reality, we actually have to look at Fiscal Year '11 in terms of whether you actually implement the plan or not, whether you actually are in compliance with the Philadelphia Home Rule Charter and The Philadelphia Code, which it appears that you are actually out of compliance with the Home Rule Charter. But my last question -- and none of this is based upon Executive Order or Strategic Plan. It's based upon the Home Rule Charter and the license we have to create an ordinance within The Philadelphia Code. If OEO was eliminated, how would the level of participation change 112 4/21/10 - WHOLE - BILL 100115, etc. in Fiscal Year '11?
Well, I would look at historically the trend, that if you look at 2005, participation was at 21.9 percent, 2006 it was at 21.3. The following years after that it was 17.7, 17.8. Today it's -- well, Fiscal Year 2009 it was 17.6.
My expectation is that we would drive that level of participation up, because we would be advocating on behalf of the minority, female business community to enter a registry in a way that demonstrates their opportunities to do business with the City. Not only to do business in the public sector but build alliances so that they could expand 113 4/21/10 - WHOLE - BILL 100115, etc. their --
Well, MBEC was focused on certification and we're going to be more focused on outreach and engagement in the business community.
So before you took the job and took on this mission, I'm assuming you read the Strategic Plan?
Then how can you compare OEO's plan to MBEC's plan if you don't have MBEC's --
What I'm 114 4/21/10 - WHOLE - BILL 100115, etc. looking at is the Strategic Plan and saying that I'm pursuing the goals of the Strategic Plan, which are to increase the number of companies based on availability who are interested in doing business with the City of Philadelphia and growing from there to doing business also in the private sector and with non-profits. We need to build capacity.
Okay. What did it say and how is it different than OEO's Strategic Plan?
Again, I think -- and it has been some time, over a few years since we did that -- since I read that. I think where you would see the most significant difference is that it was focusing on the certification process. It focused on --
The last 115 4/21/10 - WHOLE - BILL 100115, etc. MBEC action plan says nothing about certification.
Again, I'm at a disadvantage. I haven't read it in a few years, so if that's the case, then I take your word for it.
Mr. Greenberger, have you reviewed MBEC's last action plan?
Then how do you know that OEO's Strategic Plan is more effective than MBEC's last action plan?
The OEO Strategic Plan is a relatively new plan and its effectiveness has to be measured this year. What the plan, however, is about is thoroughly embedding as 116 4/21/10 - WHOLE - BILL 100115, etc. completely routine behavior the setting of appropriate goals, and the attempt here is to direct staff time away from certification and towards working with every single department to make those goals right.
I don't know what MBEC's last action plan says. (Councilman Goode handed Mr. Greenberger MBEC's last action plan.)
Does that look strikingly familiar to OEO's Strategic Plan even though it's one page?
Well, to be honest, I'm reading very fast. It in general does. I have not read every word of it. I can't read that fast. But whether it says it or not, we're focused on how to move OEO forward and how to make these participation goals part of the routine normal business of every single department in the City, all 117 4/21/10 - WHOLE - BILL 100115, etc. contracting.
-- was based upon the fact that during my legislative tenure, MBEC was a dog that didn't hunt. Before MBEC became OEO, it set out a Strategic Plan. OEO has not implemented its Strategic Plan. My original question was, is OEO really different than MBEC today.
Let me also add -- and, again, just quickly reading this summary, the inclusion work Strategic Plan not only captures an interest in growing the availability of minority and female and disadvantaged or disabled companies, but it is also focused on the workforce and driving the inclusion of diversity on construction projects, 32 percent for minority, seven percent for women, the journey and the 118 4/21/10 - WHOLE - BILL 100115, etc. apprentice levels. So it's a, from my vantage point -- and, granted, I have not read in earnest all of the MBEC's action plan, but this is a more -- the OEO Strategic Plan appears to me to be more inclusive and more comprehensive.
You said it includes workforce diversity, but as it relates to business diversity, is there a different plan or strategy?
I said aside from workforce diversity, is there actually a separate plan or strategy for business diversity than was identified within MBEC's last action plan?
Reading this over quickly, I can't really say and do an analysis of it, but I will tell you that there is a focal point that I have on breathing life into the inclusion work strategy for OEO, and my commitment to the business community as well as to the 119 4/21/10 - WHOLE - BILL 100115, etc. operating departments driving inclusion across the City is, I guess, the biggest difference for me.
Is that what you said the difference was going to be last year and the year before?
Was there a difference over the last couple years in terms of the level of participation?
The level of 120 4/21/10 - WHOLE - BILL 100115, etc. participation has been relatively stable around that percent, 17 and a half, 18 4 percent. 5
So there's 6 been no difference in the level of 7 participation? 8
We haven't calculated 9 the current level of participation. 10 We're in that right now. So the 11 leadership is doing the work now, so -- 12
For the last few years. 121 4/21/10 - WHOLE - BILL 100115, etc.
That includes part of the Administration, the Street -- I think that's over a two- or three-year period we're talking about and so --
In the last full year of the Street Administration, what was the participation rate?
So it's been lower than the Street Administration, the level of participation?
So is OEO really different than MBEC? The answer 122 4/21/10 - WHOLE - BILL 100115, etc. is not yet. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Jones.
I yield to my colleague Blondell Reynolds Brown, but wish to be recognized thereafter.
Thank you, Councilman Jones. Quick follow-up to Councilman Goode's line of questioning. With regards to your statement growing the availability of MBE, WBEs, in instances like Wawa and Philly Marathon, the awareness of those opportunities with those two non-profits rests with the non-profits making it known that they're looking for MBE, WBEs. Where is the City in that mix? For example, do those 123 4/21/10 - WHOLE - BILL 100115, etc. opportunities go on the City's website so that those MBE, WBEs currently within the OEO system are also made aware of this opportunity coming down the pike? Is that a -- I don't want to answer the question. Where is the connect?
I don't think that's a standard protocol, but that will be a standard.
And, Councilwoman, if I would add, we're building very strong relationships with the African American Chamber, the Hispanic Chamber, the Asian Chamber and the Women's Business Enterprise Center to make sure when opportunities present 124 4/21/10 - WHOLE - BILL 100115, etc. themselves, that they are --
-- shared across those networks as well as others that we create.
If I could also add to that, Councilwoman, the other issue that we're aware of that we are working on is that there are firms out there -- and I couldn't tell you how many -- there are firms out there, both minority owned and women owned, who are in nobody's system.
I just met one the other night, African American-owned investment firm. Actually, they buy businesses. I asked them, Are you registered as a minority firm, and the fellow said to me, We don't think of ourselves as a minority firm, we're just a firm. He's registered with nobody. 125 4/21/10 - WHOLE - BILL 100115, etc. I said, Well, I think you ought to be registered and we're prepared to help you do that. So we also need to be -- we know firms out there. We don't know all of them, but we know of firms out there that are recognized nowhere officially. We need to do that, make sure opportunities are known to them and get them over that hump, the bureaucratic hump as well as the psychological one.
Agreed. And then, lastly, Councilman Goode shared with us during the DHS hearings a contract that had, and I state the quote, best-faith efforts, and the insult of that was that it was a childcare contract. In instances where we hear often, We confer with OEO to establish the contract goals, who ultimately is responsible when that agency either, A, doesn't meet the goals or, B, puts in language like "good-faith efforts"? Where should the accountability end? 126 4/21/10 - WHOLE - BILL 100115, etc. With the agency head or with OEO?
Well, one of the things that we're working on is ensuring that there are no "good-faith efforts" put in future contracts.
So you're saying for the record no longer again ever in the future going forward where we hear the phrase "good-faith efforts"?
I hate to say absolutely, because there are instances where we're dealing --
Where we know we don't have the captured pool of MBE, disadvantaged businesses to meet that particular skill-set.
Anything 127 4/21/10 - WHOLE - BILL 100115, etc. else -- one of you wanted to add to that? I cut you off.
Oh, I was just going to say the good-faith effort piece was one that required the solicitation, a documented solicitation, and commitment by the company who was actually pursuing minority and female businesses. So when it was originally designed, it was not around a blanket statement that you're off the hook. The companies have to document who did they call, which newspapers did they advertise in, which companies came in to visit or what kinds of information did they provide those companies in terms of describing the project that they wanted them to work on. So it wasn't a blank check, but what we found is the perception is that you're off the hook and you don't have to generate participation, and so that's why we want to minimize the use of that "good-faith effort" at all. 128 4/21/10 - WHOLE - BILL 100115, etc.
Councilwoman, if I may just add one thing, and just into the accountability factor, yes. The answer is yes, the agency heads are accountable to their minority participation.
Thank you. We need to hear that, because too often we hear, We conferred with OEO and that's how we received -- that's how we achieved the goal.
And I think what you're hearing here is an intent by the Administration to build a different culture around this that is invested totally in the departments, with OEO acting as both a technical assistance and an advisor on things that the departments themselves may or may not be expert in.
And if I could also add, as a part of the actions coming out of the Mayor's Economic Opportunity Cabinet meeting just yesterday, each of the operating departments are going to be required to 129 4/21/10 - WHOLE - BILL 100115, etc. identify an OEO officer or liaison who will take ownership for their inclusion goals within the department and working with the Office of Economic Opportunity.
My only closing comment to that is, that's a very tangible management, new practice that moves us towards better moving this needle.
Thank you for your testimony. Thank you very, very much, Councilman Jones.
You're welcome. The Chair recognizes Councilman Clarke.
I do remember, but he relinquished his time. Councilman Clarke.
I defer to 130 4/21/10 - WHOLE - BILL 100115, etc. Councilman Jones.
Listen, we're learning. Thank you, Councilman Clarke. On the lines of -- in a different vein, but on the lines of the question raised by my colleague Wilson Goode what is different, let me go back to a little more ancient history. In your experience in another life as Procurement Commissioner working with MBEC, what were the differences, salient differences then? Did the Director of what was MBEC and now the morphed OEO have contract signing authority on all procurement contracts?
Absolutely not. MBEC and now OEO do in fact operate 131 4/21/10 - WHOLE - BILL 100115, etc. as facilitators of making sure operating departments gain participation on their contracts, but they do not sign those contracts. They do not --
Which the former MBEC had. So you could stop a contract if there was not a good faith -- I mean, your counterpart could.
No, I do not recall the budget. You're talking about 20 years ago?
Yes. I'm sorry to put you out there that you were around then, but you were. It was a little over a million dollars. It might have been -- what is 132 4/21/10 - WHOLE - BILL 100115, etc. your current budget?
Right now the current contract or budget is around 600,000.
Twenty-seven. I'll help you out there. Your memory might be fading. How many employees do you have?
So there are some very big differences between now and then. And on the lines of my colleague, hopefully we will be moving the needle, 133 4/21/10 - WHOLE - BILL 100115, etc. as my colleague Blondell Reynolds Brown would say, in the right direction so that the dog can hunt. How do you plan -- I like that. I want to know in your mind how do you right this ship? What are some of the plans you have? Are you meeting with the stakeholders, for example, that care about what you do? And tell me what that is.
Absolutely. We have met, from an introductory standpoint, with each of the members who lead the chambers, African American Chamber, Asian Chamber, the Hispanic Chamber and the Women's Business Enterprise Council. We've met with members of the Enterprise Center. We've met with the School District and SEPTA. And our goal is to continue to do outreach with those stakeholders, who are peer advocates for small businesses, and to work with them to drive home the need for information, the need for technical 134 4/21/10 - WHOLE - BILL 100115, etc. support, the need for financial support. And actually I'm leveraging the relationships that we have now internally with the Commerce Department to ensure that the companies who do business and who are members of these affinity groups are interested and willing and able to do business with the City of Philadelphia.
On the lines of questioning what is different from recent history, the OEO -- MBEC and then OEO, if I -- I'm going to give you the exact same question I asked six months and a year ago. If you had to point out a signature type of example of who is doing well in City contracts, name me three.
You might. 135 4/21/10 - WHOLE - BILL 100115, etc. I don't have a clock. We're on Wilson Goode time now.