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Extend the Remedial Program for Minority and Women-Owned Business Enterprise Participation in Construction Projects

Section 401.17 | Board Report 16-1207-PO1 | Date Adopted December 07, 2016

Policy PDF  English

THE CHIEF EXECUTIVE OFFICER RECOMMENDS:

That the Board extend the Remedial Program for Minority and Women-Owned Business Enterprises Participation in Construction Projects, as amended, which is attached hereto for a period of five years.

HISTORY:

In 2006, the Board undertook a review of the then-existing affirmative action remedial plan adopted by the Board in 1991. Following this review, the Board determined that implementation of various race-neutral and gender-neutral measures would help the construction procurement program to overcome barriers and assist in the growth and development of financially stable M/WBE’s. These measures included the following: improving the timing of payments; unbundling or down-sizing contracts to facilitate participation by smaller businesses; and providing longer bid lead times. It was also determined that increased attainment of M/WBE participation would result from the following: setting contract specific goals on projects; accepting governmental M/WBE certifications from certifying agencies; and the Office of Business Diversity to serve as voting members on the evaluation teams for all required Board construction bid solicitations. Following this review, the Board adopted a Remedial Program for Minority and Women-Owned Business Enterprises Participation in Construction Projects (the “Program”) with a term commencing August 1, 2006 and ending December 31, 2011 (Board Report 06-0726-PO9). The Program was later amended by the Board on May 23, 2007 (Board Report 07-0523-PO1) to authorize retainage amounts to ensure contractor performance and compliance with contract requirements. Following a 2011 independent evaluation of availability and utilization of minority and women-owned construction vendors for the Chicago Public Schools, the Board determined that the steps it had taken since 1991 to ameliorate the effects of racial and gender discrimination in the construction marketplace had not sufficient. Accordingly, the Board extended the Program with a term commencing January 1, 2012 and ending December 31, 2016 (Board Report 11-1214-PO1).

PURPOSE:

Following a 2016 independent evaluation of availability and utilization of minority and women-owned construction vendors for the Chicago Public Schools, the Board has determined that the steps it has taken since 1991 to ameliorate the effects of racial and gender discrimination in the construction marketplace through a variety of race-and gender-neutral measures have not been sufficient. As a result, the Board has further determined that the Program should therefore be extended by creating measures narrowly tailored to serve the Board’s compelling interest in not being a passive participant in the discriminatory Chicago construction marketplace.

PROGRAM EXTENSION TERM:

The Program is extended, as amended herein, for the period of five years commencing January 1, 2017 and ending December 31, 2021.

DESCRIPTION:

The Program will continue to: (1) apply to all construction projects required by the Board to be awarded through competitive bid (currently $10,000 and above), (2) operate the same annual Aspirational Goals for M/WBE participation in all district-wide construction projects of 30% to qualified Minority-owned Business Enterprises and 7% to qualified Women-owned Business Enterprises, (3) authorize the Office of Business Diversity (OBD) to establish Contract Specific Goals for individual construction projects, and (4) authorize OBD to specify certain construction projects to be let without M/WBE participation goals in order to evaluate the marketplace.

The Program is being updated to continue in accordance with legal requirements, to reflect the Board’s current organizational structure and practice, and to clarify various provisions. These amendments are included on the attachment.

Board of Education of the City of Chicago

CPS Logo

REMEDIAL PROGRAM FOR MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE PARTICIPATION IN CONSTRUCTION PROJECTS

[Effective January 1, 2017]

The Office of Business Diversity
42 W. Madison Street
Chicago, Illinois 60602

773.553.2980 Telephone
773.553.2981 Facsimile

www.cps.edu

REMEDIAL PROGRAM FOR MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE PARTICIPATION IN CONSTRUCTION PROJECTS

This Program is continued by the Chicago Board of Education (the “Board”), upon recommendation of the Chief Executive Officer (“CEO”), based upon (1) the Board’s findings that it has been a passive participant in discriminatory practices against racial and ethnic minorities and women in the construction industry in Chicago, and that it has a compelling interest in remedying that passive discrimination, and (2) its desire to continue narrowly tailored remedies to address that compelling interest.

Policy References

Amends/Rescinds  
Cross References

[21-1215-RS1 (Resolution Authorizing the Extension of the Remedial Program for Minority and Women-Owned Business Enterprise Participation in Construction Projects and Goods and Services Policies) is attached to the Policy. This Resolution extended these programs for term of one year commencing January 1, 2022 and ending December 31, 2022];

11-1214-PO1; 07-0523-PO1; 06-0726-PO9

Legal References  

Policy and Procedures

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Chicago, IL 60602