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OCII workshop shows progress and persistent gaps in small-business participation and local hire
Summary
OCII reviewed July–December 2017 small‑business enterprise (SBE) and local‑hiring results, reporting strong professional‑services SBE participation but weaker construction SBE rates and local‑hire challenges; business leaders praised joint‑venture models and called for more capacity‑building and targeted outreach.
The Commission on Community Investment and Infrastructure received its semiannual Small Business Enterprise (SBE) and local‑hiring workshop on Feb. 20, where staff reviewed contracting and workforce statistics for July–Dec. 2017 and a panel of small-business representatives described successful mentorship and joint‑venture approaches.
OCII staff reported roughly $91.4 million in contracts awarded during the period across six major developments. Professional‑services SBE participation by award exceeded OCII’s numerical target (reported above 50% in prior reporting but variable by measure), while construction and supply SBE participation was lower, in part because Type I high‑rise construction (which requires deep foundations and structural steel) is less accessible to small firms.
Deputy contracts staff Maria Pecot said OCII’s SBE goal is ambitious and that staff supports capacity building, joint ventures and outreach: "OCI's SB policy establishes an ambitious SB participation goal of 50%" and agency staff routinely works with developers and contractors to identify opportunities for local SBEs. The report also noted actual payments to SBEs (post‑award) and the agency’s practice to credit joint ventures and association agreements when non‑SBE partners perform some portion of the work.
On workforce, staff reported about 5.3 million accumulated work hours on active projects, with roughly 1.26 million hours (23.7%) performed by San Francisco residents. OCII and CityBuild representatives described training pipelines, including a CityBuild academy and a Chase Center training academy partnership that plan to expand classes and recruit additional local workers.
A lineup of local small‑business owners and community leaders — including representatives from the National Association of Minority Contractors, local SBE firms and the Renaissance Entrepreneurship Center — testified about joint‑venture models, mentorship programs offered by prime contractors such as Clark Construction and Mortenson, and the importance of continued outreach. Many speakers credited one‑on‑one mentoring, matchmaking sessions and incubator programs with helping them access contracts on large projects.
Commissioners pressed staff and CityBuild Director Joshua Arcey about whether the 50% local‑hire goal is mandatory or a good‑faith target; Arcey said OCII’s policy is a 50% good‑faith goal and described CityBuild’s expanded training efforts to recruit and prepare more local candidates. Commissioners also asked for more granular neighborhood and industry unemployment data, and for steps to increase SBE capacity for Type I construction work.
