Council presses procurement on drop in MWDSBE participation and steps to boost local vendor access

Council members used the CAO’s FY26 hearing to question procurement officials on a sharp year‑over‑year drop in participation by minority-, women- and disabled-owned businesses and on procurement timelines and vendor communications.

A council member noted city data showing MWDSBE participation dropping from about 40% in FY24 to 27% in FY25 and asked what caused the decline. CAO witnesses acknowledged the trend and said the Office of Business Impact and Economic Growth will lead targeted efforts; the CAO identified recent staffing changes and process reviews meant to improve equity and reduce administrative burden for small firms.

Ronald Hovey, the city’s new procurement commissioner, said he was in his twelfth day on the job and emphasized data-driven approaches: “I’m very data driven. So I wanna make much more sort of data informed decisions.” Deputy procurement commissioner Lashonda Tompkins described tactical steps to raise small- and local-business participation, including using the city’s vendor registry, local business entity (LBE) preferences, micro‑purchasing pathways and increased outreach to help firms get certified and bid for city work.

Council members also raised vendor-notification problems heard earlier by the Economic Opportunity Review Committee: small vendors reported they do not always receive timely feedback on bids, which hampers future proposals. Procurement witnesses said standardized templates and deadlines for departmental procurement teams have been developed and rolled out for routine vendor communications.

Procurement and council members discussed timelines for public works solicitations and the cost effects of long procurement cycles. The procurement office said it is embedding strategic-sourcing practices into budget and planning conversations to build pre-positioned contracts and reduce downstream delays. Commissioner Hovey said longer solicitation periods tend to increase costs because bidders build perceived risk into prices.

Why it matters: Procurement spending affects local firms’ revenue and hiring. Council members emphasized that easing administrative burdens on MWDSBEs and increasing small-order opportunities can spur local economic benefits and job growth in Philadelphia.

Looking ahead: Procurement will provide data on current MWDSBE participation, contract start dates and renewal patterns and work with council to expand outreach, improve vendor notifications, and prioritize strategic sourcing and micro‑purchase pathways that favor local participation.