FOR IMMEDIATE RELEASE: SBN Releases Recommendations to Invigorate Local Economy Through Local-First Procurement
Contact: Bradford Bucknum, Communications Manager
Bradford@sbnphiladelphia.org (215)922-7400 ext 102. Link to Report:
https://www.sbnphiladelphia.org/wp-content/uploads/2018/05/Local-Procurement_Study_SBN_2018.pdf SBN Executive Director, Anna Shipp, and Communications Manager, Bradford Bucknum, are available for questions and comments. PHILADELPHIA, PA (June 6, 2018)— Thriving communities necessitate a thriving local economy, and one of the most effective ways to promote healthy economic growth and build wealth in communities is to prioritize a local first approach to procurement. Because of this, the Sustainable Business Network of Greater Philadelphia (SBN) undertook research to understand how they and others could help locally-owned, predominantly small (less than 500 employees) businesses better access contract opportunities with local government and anchor institutions. Each year, Philadelphia’s “Eds and Meds” (aka anchor institutions) spend over $5 billion annually on goods and services, although unfortunately only about half is spent with the region’s local vendors. According to a
2014 Philadelphia Office of the Controller report, “Every $1 million spent by anchor institutions with local vendors actually represents $1.5 million in expenditures within Philadelphia and supports 10 additional local jobs.” As such, if Philadelphia’s institutions increased their local contracting by an additional 25%, it would translate to about $1 billion in additional local expenditures each year, support an additional 4,400 jobs, increase annual labor income by $280 million, and increase annual tax revenue for the City by about $14 million. SBN’s research engaged nearly 200 local independent businesses, with an intentional focus on women, minority, and/or disadvantaged-owned businesses, to learn from them what barriers they faced and what their ideas were for solutions. The report (
link) includes seven Programmatic Recommendations and four Procedural Recommendations that identify capacity-building resources and other strategies that could help our local independent businesses community overcome barriers to accessing contract opportunities with local government and anchor institutions. PROGRAMMATIC RECOMMENDATIONS Help businesses build stronger relationships with important procurement contacts Support collaborations between small businesses to enhance their ability to successfully respond to RFPs Increase local businesses’ awareness of RFPs that are relevant to them Provide overview training on the procurement processes followed by the City of Philadelphia and other anchor employers Share the procurement success stories of locally-owned businesses Provide guidance and training on the certification processes for WMDBE Business Enterprises Expand the use of small capacity building grants to help business grow their capabilities PROCEDURAL RECOMMENDATIONS Create more opportunities for small businesses to bid directly through smaller contracts or as subcontractors on projects Increase communication with businesses throughout the procurement process Add a focus on additional designations for underrepresented business owners to diversify the pool of contractors Use business certifications to diversify the vendor base and promote sustainable business practices as part of the City’s best value procurement initiative Voters have already demonstrated their interest in rethinking local contracting away from lowest cost and instead towards highest value. In May 2017, Philadelphia voters approved a ballot measure allowing “for the award of certain contracts based on best value to the City” allowing for important considerations beyond price when awarding contracts, such as local; women, minority, and/or disadvantaged ownership; workforce diversity and inclusion; and triple bottom line business practices of people, planet, and profit. As “best value” practices are define and implemented, a local-first approach to procurement is foundational given the proven value our local independent business community contributes to our economy, our communities, and our environment.
About the Sustainable Business Network of Greater Philadelphia The Sustainable Business Network of Greater Philadelphia (SBN) is a community of local independent businesses that demonstrate the degree to which businesses can build profitable enterprises while serving community needs and protecting the environment. SBN’s mission is to build a just, green, and thriving economy in the Greater Philadelphia region. Since 2001, SBN has been the region’s leading advocacy and membership organization for businesses committed to improving their environment and social impact as well as their profit.
###
