The Commission on Community Investment and Infrastructure received an update Jan. 7 on the San Francisco Unified School District (SFUSD) Mission Bay school project that found small-business participation for schoolyard work was “just under 6%,” far below OCII’s 50% SBE goal.

The memo and presentation from OCII contract compliance staff reviewed the contractor McCarthy’s outreach and procurement steps for schoolyard-related bid packages and measured them against OCII’s SBE policy. "OCII's SB policy establishes a good faith effort 50% contracting goal," said Maria Picot, OCII senior contract compliance officer, during the presentation. "Based on the bid tabs and outreach materials provided, OCI staff determine McCarthy satisfied five of the good faith effort standards, was partially compliant in convening pre-bid meetings, and was deficient on contract size and monitoring."

Why it matters: commissioners and community members said the findings point to a failure to protect local contractors and planned economic benefits for neighborhoods adjacent to Mission Bay. The school and schoolyard are part of long-standing redevelopment commitments and the schoolyard is the portion OCII agreed to reimburse; low SBE participation raised concerns about whether OCII’s policies and oversight protected local small businesses and local hire objectives.

Details of the review: Picot said OCII examined nine policy elements, including whether the prime contractor unbundled work into smaller scopes suitable for SBEs, advertised opportunities on city procurement channels for an adequate period, produced targeted outreach lists, hosted pre-bid meetings, provided technical assistance, assisted with bonding and insurance resources, and tracked bid and award monitoring. OCII staff found:
- McCarthy reached out to a large number of firms (staff reported outreach to 188 SBEs) and ran advertisements and outreach events, but parts of the advertising timeline and placement did not match OCII’s procurement posting practice for the City’s purchasing web portal.
- Under the design-build model used on the overall school project, McCarthy did not unbundle the schoolyard work from the larger contract, which limited the agency’s ability to target separate SBE awards.
- Pre-bid and outreach meetings were held and attended by SBEs, but OCII staff said they were not included in some meetings and that OCII’s policy goals were not always presented in the contractor’s materials; OCII judged that element only partially compliant.
- McCarthy provided technical assistance and referrals for bonding and insurance (including referrals to Meriwether & Williams), but OCII staff said supporting documentation showing the depth or outcomes of that assistance was incomplete in the materials provided.
- Because McCarthy awarded subcontracts on a lowest-responsive or best-value basis after prequalification, OCII did not have contemporaneous review of subcontract selection decisions and could not perform monitoring that might have improved SBE outcomes.

Numbers and outcomes: OCII staff reported the schoolyard buyout amount at approximately $11.23 million. Picot told commissioners that SBE participation for the schoolyard scopes was "just under 6%," which staff estimated at roughly $660,000 of subcontract awards. Commissioner Bavette Brackett, who pressed for precise figures, cited a computed 6% amount of about $673,800 based on the buyout figure; OCII staff said they would provide exact buyout logs and award lists in follow-up materials.

Public comment and commissioner reaction: Longtime community speaker Oscar James and representatives of the Mission Bay Elementary School steering committee praised some outreach but urged stronger local hiring. Bruce Agud, appearing for the South Beach/Rincon/Mission Bay neighborhood association, said the community supports SBE goals and the timely opening of the school in August 2026.

Commissioner Bavette Brackett strongly criticized the process and said the design‑build approach and SFUSD’s use of a project labor agreement (PLA) effectively precluded OCII’s SBE requirements being honored. "For the past four years, they have refused to honor that commitment," Brackett said, referring to earlier assurances made to the commission when the design‑build approach was approved in 2020. Other commissioners repeatedly requested more detailed documentation, including the exact bidder lists, the buyout log showing which scopes were awarded to SBEs, ZIP-code breakdowns of local firms, and proof of referrals to Meriwether & Williams or other bonding/insurance assistance.

Action taken: The item was informational; no formal enforcement action or vote to withhold reimbursement was taken on Jan. 7. Commissioners agreed to table further deliberation until staff can obtain additional documentation from SFUSD and McCarthy. Chair Scott and staff also said they would refer the matter to the City Attorney's Office and the Ethics Commission for a legal briefing on OCII’s duties and enforcement options. OCII staff committed to returning with a more detailed procurement buyout log and vendor lists.

What’s next: OCII staff and commissioners asked SFUSD and McCarthy for supplemental documents (bid tabs, attendee lists, outreach logs, and details on technical assistance and bonding referrals) so OCII can re-assess compliance and the potential remedies available under OCII contracts and reimbursement agreements. Commissioners requested more precise accounting of SBE dollars, ZIP-code/locality data, and a breakdown by scope so the commission can evaluate whether additional actions (including withholding reimbursements or pursuing contractual remedies) are warranted.

Ending: Commissioners and staff emphasized they want the school and schoolyard completed for the neighborhood while ensuring OCII’s SBE and local-hire policies are enforceable and effective. OCII staff said they will provide the requested documentation and follow up with SFUSD and the prime contractor before the commission takes further action.