City staff outline supplier‑diversity work, disparity study and bonding/insurance hurdles

City of Bend legal and procurement staff told the Procurement Subcommittee they are tracking a state disparity study and working groups that examine barriers to diversifying the supplier pool, including bonding and insurance requirements and prompt-payment practices.

Mike Riley, an attorney, led the legal overview and said scrutiny of supplier-diversity programs has grown even though the underlying law remains the same. “The law hasn't really changed, but the scrutiny around it, the litigation saying that these programs are unconstitutional and unlawful, that has certainly increased,” Riley said. He explained that federal programs (he cited the U.S. Department of Transportation) use an aspirational DBE goal—he said Congress set a 10% aspirational DBE goal for DOT—and that agencies generally must pursue race- and gender-neutral tools before using race- or gender-conscious measures.

Riley and procurement staff outlined the state working groups examining topics such as insurance and bonding, contractor data and certification processes. Staff said bonding and insurance requirements arise from statute and contract minimums; bonds protect the city’s financial interest and subcontractor payment, while insurance addresses broader liability. Staff said they are reviewing whether particular minimums are necessary or whether alternative mechanisms—working-capital loans, bonding assistance, or revised contracting rules—could reduce barriers for small and minority-owned contractors.

Procurement staff also raised prompt-payment and invoice-processing timelines as a barrier for smaller contractors that must carry financing costs. Staff said most invoices are paid within a 30-day window and that prompt-payment timelines and documentation can affect smaller firms’ ability to participate in large public-works contracts.

Staff described outreach efforts and local-organizer activity. The subcommittee heard that local organizations have reported that prospective contractors often do not know how to find opportunities or how to complete certification, and that language and transportation barriers have limited participation in region-wide workshops. Staff said they are coordinating with state working groups and local groups to identify race- and gender-neutral actions—outreach, demystifying certification, unbundling procurements, and capacity-building—before considering tools that would require heightened legal scrutiny.

The subcommittee agreed to continue tracking the state workgroups and to return to the subcommittee with more-detailed tactical proposals the staff believes are legally defensible and likely to expand the qualified pool of vendors.