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City staff report early gains on LBE participation as supervisors press for data and 40% goal discussion
Summary
City administrators and multiple departments presented first-half data on implementation of Administrative Code Chapter 14B (Local Business Enterprise). Departments reported notable LBE awards and payments; supervisors requested more complete controller-verified data before setting a citywide 40% LBE goal and scheduled community workshops.
The committee held a follow‑up hearing on the city’s implementation of Administrative Code Chapter 14B, the Local Business Enterprise (LBE) and nondiscrimination contracting ordinance. City Administrator Naomi Kelly and Contract Monitoring Division representatives reported implementation steps, new LBE tracking software (LBEUTS), and early quarter‑by‑quarter results; several large departments described outreach and increased LBE participation on recent awards.
City Administrator Naomi Kelly said the city has launched an LBE utilization tracking system and will publish quarterly reports. "We plan to have all these departments trained by the December of this year," she told the committee, and noted CMD is working with the Controller’s Office to run availability and utilization analyses to inform any numeric overall goal.
Department witnesses highlighted several accomplishments in Q1–Q2. The San Francisco Public Utilities Commission reported $150 million in awards with nearly $29 million in payments to date and said 92% LBE participation on construction contracts awarded under $10 million; the Port reported 48% of awards to LBEs in Q1–Q2; the Airport reported about 32% of contract dollars flowed to LBEs; and Public Works said roughly 40% of award dollars in their Q1/Q2 package went to LBE primes. Departments described outreach such as vendor fairs, contractor assistance centers, micro‑set aside programs and mentor‑protégé pilots.
Community speakers from small‑business organizations urged expansion of micro set‑asides and a 40% citywide utilization goal; advocates said the city should pursue aspirational targets and complementary business‑development programs. Committee members scheduled additional community workshops (in the Bayview, Mission and Sunset) and directed CMD and the Controller to finalize and verify data that will inform legislative proposals. The committee continued deliberations and left the item open for further legislative work.
