Authorizing Council's Committee of the Whole ("Committee") to hold public hearings to investigate the findings and recommendations of the study performed by D. J. Miller and Associates concerning the City's utilization of Minority, Female and Disadvantaged Businesses in the procurement of goods and services (the "Disparity Study"); further authorizing the Committee to hold public hearings to examine the management and operations of the Procurement Department and the Minority Business Enterprise Council ("MBEC"), the powers and duties of each entity as set forth in the Philadelphia Home Rule Charter, The Philadelphia Code, or other applicable law, and the policies, practices and procedures of each entity in the fulfillment of its respective responsibilities and mission; providing further that the Committee shall request that any appropriate Public Officer or Official, Commissioner, Director or head of any City office, department, board, commission or other agency who has decision making...

WHEREAS, A study performed by D. J. Miller and Associates concerning the City’s utilization of Minority, Female and Disadvantaged Businesses in the procurement of goods and services (the “Disparity Study”) indicates that businesses in the Greater Philadelphia area that were owned by white males received nearly 96% of the $2.78 billion in contracts the city awarded from 1998 through 2003 for construction, goods and services, compared with 2.3% that went to minority-owned businesses and 1.8% that went to firms owned by women; and

WHEREAS, The City of Philadelphia spent $1.1 million dollars for one study released last year and $300,000 for a second study completed this year on the same issue; and

WHEREAS, The first study found the City’s procurement system to be a “labyrinth based on discrimination, ethnic favoritism and governmental inefficiencies” that could “well require minority and women owned business enterprises to participate in a corrupted process in order to gain any access at all to local government”; and

WHEREAS, The same report also said that the procurement system “easily facilitates the system of patronage and corruption that has been so extensively documented in Philadelphia”; and

WHEREAS, The new report clearly indicates that the existing minority and women-owned businesses in Philadelphia are being underutilized; and

WHEREAS, The responsibilities and mission of the Procurement Department and the Minority Business Enterprise Council need to be examined and recommendations for improvement need to be developed; and

WHEREAS, The Council President should appoint a Task Force of experienced government and private sector individuals to advise the Council on best practices in the public and private sectors to improve the performance of the government in the utilization of Minority, Female and Disadvantaged Businesses in contracting and procurement opportunities; and

WHEREAS, A clear and detailed explanation of performance standards, goals, operational guidelines and enforcement mechanisms needs to be made by the leaders of this city to the public, the business community and all government officials and employees regarding the City’s commitment to improve the system for Minority, Female and Disadvantaged Businesses to engage in business opportunities with the City of Philadelphia; now therefore

RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA,

THAT The Committee of the Whole (“Committee”) is hereby authorized to hold public hearings to investigate the findings and recommendations of the D. J. Miller and Associates’ study of the utilization of Minority, Female and Disadvantaged Businesses in the City’s procurement of goods and services (the “Disparity Study”);

FURTHER RESOLVED, THAT The Committee is further authorized to hold public hearings to examine the management and operations of the Procurement Department and the Minority Business Enterprise Council (“MBEC”), the powers and duties of each entity as set forth in the Philadelphia Home Rule Charter, the Philadelphia Code, or other applicable law, and the policies, practices and procedures of each entity in the fulfillment of its respective responsibilities and mission;

FURTHER RESOLVED, THAT The Committee, in conducting the public hearings authorized by this Resolution, shall request that any Public Officer or Official, Commissioner, Director or head of any City office, department, board, commission or other agency who has decision making authority with respect to the procurement of goods, services, equipment, construction contracts, concession contracts, professional services contracts or any other type of contract appear at such hearings of the Committee;

FURTHER RESOLVED, THAT Following such hearings, the Committee shall issue a report making findings as to the City’s present policies, practices and procedures relating to the City’s utilization of Minority, Female and Disadvantaged Businesses in the procurement of goods and services, and making recommendations, including, but not limited to, legislative remedies to improve the City’s utilization of Minority, Female and Disadvantaged Businesses;

FURTHER RESOLVED, THAT The President of the Council is hereby authorized to appoint a City Council Task Force on Business Opportunity and Procurement to be made up of thirteen members. The Task Force shall advise the Committee on best practices in the public and private sectors relating to contracting, procurement policies and business opportunities for Minority, Female and Disadvantaged Businesses to assist the Committee in issuing its report to the Council;

FUTHER RESOLVED, THAT In furtherance of the inquiry and investigation authorized by this Resolution, the Chair of Council’s Committee of the Whole is hereby authorized to issue subpoenas necessary or appropriate to compel the attendance of witnesses and the production of documents to the full extent authorized under Section 2-401 of the Home Rule Charter.

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