News

January 20, 2012

Chicago Announces M/WBE Graduation Phase-Out Program

On Thursday, the Chicago Mayor Rahm Emanuel announced the Minority and Women-owned Businesses Graduation Phase-Out Program.

Small businesses are the No. 1 employer in the city and the backbone of our economy. Chicago’s minority- and women-owned business program (MWBE) helps small businesses gain a foothold in the market, with the goal of growing into larger companies that are self-sustaining, but less than 1 percent of the City’s 2500 MWBE-qualified businesses have graduated from the program in the last five years.

Based on outreach by the City’s Department of Procurement and feedback from the Supplier Diversity Taskforce, many of these firms fear that business will dry up and opportunities will disappear once they graduate from M/WBE qualification. As evidenced by graduated businesses reapplying for certification within only a few years, many businesses may still be too small to sustain the first crucial years of growth without additional support.

In order to combat the poor graduation rate and the re-entry of stagnant graduated firms back into the MWBE program, the city will establish a new “phase-out graduation” ordinance to provide companies with additional support as they outgrow the MWBE program. The policy will allow all graduating businesses to receive a portion of the credit they would have received if they remained MWBE-qualified. In its first year out of the program, a business will receive 75 percent credit for participation in City contracts; in the second year, it will receive 50 percent credit; and in the third and final year, the business will receive 25 percent credit. This graduated decline will help businesses maintain a competitive advantage as they enter the market place.


Watch a video interview about this news story at Chicago’s ABC 7.






 
 

 
McKlein

McKlein USA

Innovation Realized About Us For over 25 years, McKleinUSA has worked with world-renowned brand names and businesses to provide our customers with more than just a bag. As a unique revolutionary in the mobile computing and t...
by cknecht
0

 
 
News2

Weekly News Recap for 10/22/2012

  Let’s take a look at the latest news in the world of supplier diversity over the past week. Minority-owned businesses in Springfield, Illinois are asking the school board to consider their businesses on new projects fo...
by cknecht
0

 

 
business crime

Preventing M/WBE Fraud In Government Contracting

Many government agencies at the federal, state and city level have supplier diversity programs in place to ensure that minority- and women-owned business enterprises (M/WBEs) have an equal opportunity to participate in majo...
by cknecht
0

 
 
News2

Weekly News Recap for 9/10/2012

Let’s take a look at the latest news in the world of supplier diversity for the second week of September. A look at some women-owned businesses in New York that are growing and adding jobs. (via Crain’s New York) Th...
by cknecht
0

 

 
Photo By: Adam Baker

Houston Sees Drastic Increase in M/WBE Participation in City Projects

Photo By: Adam Baker Last year, the city of Houston released a 300 page reporton the participation levels of minority- and women-owned business enterprises (M/WBEs) in city projects between 2005 and 2010. The results were n...
by cknecht
0

 
 
WBDC Ad

WBDC 26th Annual Entrepreneurial Woman’s Conference

[ September 20, 2012; ]   The 26th Annual Entrepreneurial Woman’s Conference, Women's Business & Buyers Mart, the oldest conference and business opportunities fair for women in business in the country, and the...
by cknecht
0

 

 
Richmond

Audit Reveals Faults in Richmond Minority Business Contracting Process

Results from a recent audit reveal some major shortcomings in the way that the city of Richmond, Virginia contracts minority-owned businesses. City Auditor Umesh V. Dalal presented his findings to the City Council and indicat...
by cknecht
0

 
 
News2

Weekly News Recap for 8/27/2012

  Let’s take a look at the latest news in the world of supplier diversity. The New York and New Jersey MSDC will hold its second annual healthcare symposium on September 5. (via PR.com) Construction for a new educati...
by cknecht
0

 
 
By: R'lyeh Imaging

$1.85 Million Settlement in Philadelphia M/WBE Fraud Case

  By: R’lyeh Imaging There have been plenty of stories about illegitimate minority- and women-owned firms being caught as part of fraud on major state and municipal projects, but a recent case is really making an ...
by cknecht
0

 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>