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OCII workshop: professional services exceed SBE goals, construction participation falls as large towers dominate contracting
Summary
At a Feb. 21 workshop OCII staff reported professional services SBE participation around 78% but construction and supplies participation fell to about 25 percent, driven by several large Type I tower projects. Staff described joint‑venture counting rules, zip‑code distribution of awards, and workforce training efforts (CityBuild) to boost specialized trade participation.
OCII staff presented a July–December 2016 small business enterprise (SBE) and local hiring workshop on Feb. 21, reporting mixed results across categories: professional services SBE participation consistently exceeded OCII—s 50 percent goal (roughly 78 percent during the period), while construction and supplies participation dipped to about 25 percent. Staff attributed the decline to the influence of four large high‑rise (Type I) projects — including Mission Bay Uber and multiple Transbay towers — for which trade packages (structural concrete, curtain wall, deep foundations) represent large shares of project cost and are less accessible to small firms.
Raymond Lee (OCII) summarized counting practices (credits vs. actual payments) and explained how joint ventures and associations can be structured to allow 100 percent counting of discrete components when a small firm performs at least 35 percent of the work on that component. Lee provided zip‑code breakdowns showing heavy award concentrations in ZIPs such as 94107 and 94103 for professional services and noted that San Francisco District 10 residents account for a large share of local workforce hours on OCII projects.
Workforce efforts: Ken Nim of CityBuild reported an 85 percent graduation rate from CityBuild cycles, with 85 percent of graduates entering construction trades; CityBuild has expanded cycles (three to four per year with new Chase Center training) and is targeting specific trades (ironwork, operating engineers, cement masons) to address gaps for Type I projects. Nim provided a contact number and pledged to supply the training flyer to OCII staff for dissemination.
Public comment from community leaders reinforced the need for outreach, mentoring and more active monitoring in the Western Addition/Fillmore and Bayview Hunters Point. Speakers asked OCII to monitor outreach dollars and to facilitate connections between small contractors and prime contractors for joint ventures and mentorship.
No action was required at the workshop; staff said they will continue outreach, allow targeted small‑business set‑asides where appropriate, and explore joint‑venture counting for discrete package components to improve SBE participation in heavy construction work.
