Research disparities in public contracting, workforce, and employment in Portland and report back to City Council

WHEREAS, equitable access to contracting opportunities fosters an inclusive community and City economy that reflects the diversity of Portland’s residents; WHEREAS, the City of Portland spends millions of dollars each year on the procurement of goods, services and construction; and WHEREAS, the City has a responsibility to ensure its public dollars are spent in a way that benefits the community it serves; and WHEREAS, the City of Portland is committed to advancing equity, anti-racism, and inclusive economic opportunities through its contracting and workforce policies; and WHEREAS, the Mayor’s Executive Order to City Employees to Comply with Federal Law (EO 2025-01) requires compliance with all applicable federal civil rights and nondiscrimination laws, including, but not limited to the Civil Rights Act of 1964; and WHEREAS, EO 2025-01 presents an opportunity for exploration into strategies to support small businesses and develop the local workforce in preparation for participation on public contract opportunities; and WHEREAS, Council has received passionate testimonials from the local small business community in support of the City conducting a disparity study, in addition to improving access to resources like business technical assistance and workforce development services that support participation on public projects; and WHEREAS, the last disparity study conducted by Procurement Services was completed in 2009; and WHEREAS, peer cities have invested in conducting a disparity study at least every 5 years as a best practice; and WHEREAS, a disparity study would provide updated data about business availability changes and enhance the Chief Procurement Officer’s ability to accurately assess the efficacy of various procurement programs; and WHEREAS, a contract disparity study would allow the Chief Procurement Officer to examine the utilization of MBE/WBEs and other diverse businesses in City construction, professional services, goods and other services contracts; and WHEREAS, a workforce disparity study would allow the Chief Procurement Officer to evaluate how construction work hours on City construction contracts are divided among apprentices, workers of color, and women; and WHEREAS, the City previously authorized a disparity study through Ordinance No. 190781, which was passed on April 20, 2022, to evaluate disparities in contracting and workforce participation; and WHEREAS, the City recognizes the importance of conducting a comprehensive disparity study that considers data from the State of Oregon, the Port of Portland, and Prosper Portland to ensure a thorough analysis of disparities in contracting and workforce participation; and WHEREAS, Prosper Portland is currently engaged in a disparity study, led by Keen Independent Research, to analyze disparities in the utilization of disadvantaged-, minority-, woman-, emerging small-, and service-disabled veteran-owned businesses (D/M/W/ESB/SDVs) in its construction-related contracts and public-private partnership agreements; and WHEREAS, the State of Oregon has conducted a disparity study, also led by Keen Independent Research, to evaluate disparities in contracting and workforce participation across various state agencies; and WHEREAS, the Port of Portland has undertaken a disparity study to assess disparities in contracting and workforce participation within its operations; and WHEREAS, the City acknowledges that existing data from the State of Oregon, the Port of Portland, and Prosper Portland provides valuable insights into disparities in contracting and workforce participation and can inform the City's efforts to address these disparities; and WHEREAS, the City recognizes that conducting a comprehensive disparity study is essential to identify and address systemic barriers that hinder equitable access to contracting and workforce opportunities for historically marginalized communities; andWHEREAS, the City’s efforts to combat those systemic barriers in contracting reflects a legacy of similar governmental efforts dating back to World War II including Presidential Executive Orders 8802 (June 25, 1941), 10479 (August 13, 1953), 13087 (May 28, 1998), and 13672 (July 21, 2014); andWHEREAS, in December 2024, the White House Council of Economic Advisors published a report and meta-study on racial disparities in government contracting establish several important facts:Racial disparities in contracting awards exist nationally with minority-owned firms receiving a smaller share of contracting dollars than their representation among all firms;Representation gaps are not restricted to any one ethnic group and significant gaps exist between white-owned firms and Black, Hispanic, Asian, and Native American owned firms;Disparities have not improved significantly since the 1990s and were larger in the years leading up until 2019 than any period covered in the data going back to 1977;Establishing goals to eliminate racial disparities in contracting—and efforts directed to achieve those goals—has been shown to reduce or even eliminate those disparities.NOW, THEREFORE, BE IT RESOLVED that the Portland City Council:Directs that the City Administrator initiate two disparity studies to evaluate disparities in both City contracting and workforce participation, utilizing data from the State of Oregon, the Port of Portland, and Prosper Portland;Requests that City Administrator, in partnership with the Chief Procurement Officer, engage a qualified consultant with expertise in conducting disparity studies to perform the analysis, ensuring that the study adheres to best practices and legal standards;Directs that the disparity studies be conducted in a manner that emphasizes community engagement throughout the process, ensuring that input from historically marginalized communities is documented and reflected in the work;Requests that the City Administrator submit a written report on the findings and recommendations of the disparity studies to City Council upon completion—and no later than March 1, 2026—including proposed actions to address identified disparities and promote equitable contracting and workforce participation. BE IT FURTHER RESOLVED that the Labor and Workforce Development Committee acknowledges funding for the requested disparity studies has not yet been identified and that the Committee will support a request from the City Administrator for funds in the 2025 Fall Technical Adjustment Ordinance to secure necessary resources. Work cannot begin until funding is identified. BE IT FURTHER RESOLVED that City Council commits to supporting the City Administrator in utilizing the findings of the disparity study to inform policies and practices that promote equitable access to contracting and workforce opportunities for all Portland residents.