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Board debates removing MWBE label from enterprise program; staff to return with adjusted small/micro thresholds
Summary
General counsel warned federal and constitutional limits on race‑based contracting preferences, and the board directed staff to hold a workshop and return proposed threshold changes for micro and small business categories to remain competitive with local agencies.
The Duval County School Board discussed proposed changes to policy 7.72 on enterprise programs, including removal of the minority/women business enterprise (MWBE) preference and a shift to micro and small business categories with revised dollar thresholds.
General counsel told the board that recent U.S. Supreme Court decisions and heightened legal scrutiny of race‑based preferences make guaranteed percentage‑based set‑asides legally risky. He recommended eliminating MWBE as a preferred certification category from policy language and instead relying on size‑based categories (micro/small) and procurement compliance that can withstand strict scrutiny.
Procurement staff said the district’s mission to support small local businesses would continue but that thresholds need to be adjusted to compete with other local contracting entities. Staff noted the district’s thresholds had not changed since 2014 until a 2023 update tied to a construction funding referendum; presenters pointed out the City and JTA now have higher threshold levels (staff cited a $30,000,000 figure used by a nearby agency) and recommended revising tier amounts so local vendors remain eligible and feel the program is viable.
Board members expressed concern that raising threshold amounts could allow larger firms to enter tiers meant to help very small vendors. Procurement and purchasing staff proposed options including: keeping lower tiers for the smallest businesses, creating additional intermediate tiers, or carving solicitations by contract size so very small firms compete for appropriately sized work. Several board members asked staff to analyze whether to keep the dollar thresholds in the policy or move them into administrative procedure so adjustments can be made without recurring policy edits.
Direction: The board asked staff to produce redlined language, bring back recommended threshold adjustments and a proposal for whether the numbers should live in policy or procedure, and schedule a workshop to review the numbers and implementation options. No formal vote was taken.
