In 2009, the Dayton City Commission approved a new Ordinance that will assist small, minority and women-owned companies looking to do business with the City of Dayton.

The City Commission passed the Second Generation Procurement Enhancement Program (PEP) for small, minority, women-owned and local business enterprises on December 23, 2009. A revised Ordinance was introduced on September 22, 2010 (view video). The Ordinance helps address disparities found in a 2008 Disparity Study of local public and private contracting services. The study was commissioned by Dayton’s Human Relations Council (HRC) and conducted by MGT of America. It found significant barriers faced by small, minority, women-owned and local business enterprises in contracting for construction services and in the procurement for goods, services and supplies with both the City of Dayton and local private markets. The new PEP Ordinance establishes separate aspirational goals to overcome those barriers and to enhance the percentage of small, minority, women-owned and local businesses working with the City over the next 10 years. The new does not set contracting quotas, which have been struck down by federal courts over the past 20 years. The rules and regulations are explained in the PEP Policies and Procedures document. This document may be updated periodically.

“Dayton’s new PEP legislation is one of the most comprehensive inclusion programs of its kind,” said Tom Wahlrab, Executive Director of the Dayton Human Relations Council. “It is legally balanced as a race and gender-neutral program; is designed to address the disparities in City of Dayton contracting to diverse businesses; and supports the City’s fundamental principle that all businesses -- regardless of their size or their ownership make-up -- will have a fair and equal opportunity to do business with the City.”  

Key features of the new PEP Ordinance include:

• Expansion of the term “Minority Business” (MBE) to include a small business predominantly owned by African-Americans or Black Americans; Hispanic Americans; Asian-Americans, and Native Americans.
• “Small Business Owner” (SBE) is now defined as any individual (regardless of race) who the  Human Relations Council finds on a case-by-case basis to be a socially and economically disadvantaged individual and is a citizen (or lawful permanent resident) of the United States.
• Annual Goals for Construction Projects are 20 percent for Small business; 17 percent for Minority business; 5 percent for Women-owned business (WBE); and 10 percent for Small Local business.
• Annual Goals for Services (including Architecture & Engineering, Professional Services, and Other Services) are: 12 percent MBE; 3 percent WBE; and 20 percent SBE.
• Annual Goals for Supplies are: 10 percent MBE; 5 percent WBE; and 15 percent SBE.
• The Local preference program will be applied for evaluating bids submitted to the City for goods and services. (View chart for how the process works.)
• In reviewing Good Faith Efforts and Waivers submitted by prime contractors, the HRC will consider joint-venture or partnering efforts with local small, minority and female businesses. The “Good Faith” evaluation factors have been assigned numerical values to ensure a more objective decision-making process. 
• There will be increased oversight and monitoring of the PEP Program by the Human Relations Council, the City Manager’s Office, and the City Commission Office. Monthly reports will be prepared summarizing Departmental efforts to contract with MBEs, WBEs, and SBEs, and local Dayton businesses.

The PEP legislation will be the City’s vehicle for assuring equality in procurement and contracting opportunities in the Dayton community for the next decade and for ensuring that the City is a not a passive participant in the local pattern of discrimination in contracting and procurement identified in the MGT Study.

For more information, contact the City of Dayton Human Relations Council at (937) 333-1403.