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West Palm Beach adopts ordinance making small-business participation mandatory at 18% for construction contracts after heated debate
Summary
On second reading the commission amended the procurement code to require small-business participation—set at a maximum 18% for construction and master contracts—by changing ordinance language to reflect the city's existing practice; the vote passed 3–2 after industry groups urged retaining a goal instead of a mandate.
The West Palm Beach City Commission on Feb. 3, 2025 adopted Ordinance No. 5118-24, revising the city procurement code to clarify the office name, redefine “small business,” and establish small-business participation as required when a level is set. The ordinance sets the maximum small-business participation at 18% for construction and master contracts and reorganizes and clarifies several related provisions.
City procurement director Frank Hayden told the commission the change primarily updates ordinance language to match a policy the commission approved in 2020 and city practice since then. Hayden said staff evaluates availability of certified subcontractors before setting a participation level for each solicitation and retains discretion to lower the participation target or set it to zero if there is inadequate local capacity.
Hayden provided participation figures and program details: “Our number of certified SBEs is close to a little over 400,” and the city’s pool of certified minority and women-owned firms is “about 300, over…
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