City of Somerville Disparity Study Presentation — File 25-0583

Presented By: City of Somerville Disparity Study Findings & Recommendations March 27, 2025

Agenda • TIMELINE • DISPARITY FINDINGS • RECOMMENDATIONS • NEXT STEPS • Q&A

2021 • City Council asking for data re: MBE/WBE participation in city contracts since 2018. • City Council sought legal opinion re: race and gender-conscious preferences in contracting • Disparity Study project committed. • Assigned to Strategic Planning & Equity Manager role (yet to be hired). 2022 • Strategic Planning & Equity Manager hired • Project team assembled • Literature review begins • Project scope established • Multi-Jurisdictional recruiting begins SUMMER 2023 • Brookline joins project • RFP drafting begins • ARPA funds secured • Affirmative Action Struck Down • RFP Sent to Bid • Griffin & Strong Awarded • Project Kick-Off TIMELINE

FALL 2023 • Initiation Phase • Workplan/Schedule • Data Assessment Meeting • Kick-Off Meeting • Collect Quantitative Data Begins FALL 2023 – WINTER 2023 • Informational Public Meeting Promotion Begins • Quantitative Data Collection Plan • Qualitative Interviews Begin • Case Law Review Begins • Policy Review Begins • Launching Website WINTER 2023-24 • Qualitative Interviews • Collect Qualitative Evidence • Launch Online Survey • Policy Review Completion • Legal Review Completion TIMELINE

SPRING 2024 • Data Collection Completion FALL/WINTER 2024-25 • Quantitative Analysis Completion • Private Sector Analysis Completion • Draft Final Report • Executive Summary • Presentations SUMMER 2024 • Qualitative Data Collection Completion TIMELINE

Relevant Market Business Owner Classification Construction A&E Professional Services Other Services Goods African American X X X X X Asian American X X X X Hispanic American X X X X Portuguese American X X X X X American Indian X X X X X Non-Minority Woman X X X X X Prime Contractor Study Parameters: STUDY PERIOD July 1, 2017, to June 30, 2022 (FY 2018-2022) INDUSTRY CATEGORIES • Construction • Architecture and Engineering • Professional Services • Other Services • Goods Griffin & Strong, 2024 DISPARITY FINDINGS: UNDERUTILIZATION

Relevant Market Prime Vendor Questionnaire Subcontractor Spending Business Owner Classification Construction A&E Professional Services Other Services Goods African American X X X X Asian American X X X X Hispanic American X X X X X American Indian X X X X X Portuguese American X X X X X Non-Minority Woman X X X X X High School Project: Subcontractor Spending Business Owner Classification Construction A&E Professional Service Other Services Goods African American X X X X Asian American X X X X Hispanic American X X X X X American Indian X N/A X X X Portuguese American X N/A X X X Non-Minority Woman X X X X X Griffin & Strong, 2024 Griffin & Strong, 2024 * N/A = Insufficient data to analyze. DISPARITY FINDINGS: UNDERUTILIZATION

RECOMMENDATION 1: DATA REFORM G&S suggests the following data reform: 1. Subcontractors: The City should begin internally tracking all subcontractors across all industry categories. 2. Bid Tabulations: To help build a large volume of local vendors for outreach, it should be mandatory for vendors to register with the City before being able to place a bid. 3. Vendor Information: The City should conduct a thorough data inventory and create a centralized data repository that contains necessary vendor information (Vendor Name, Address, Industry Codes, etc). 4. Commodity Codes: Have firms identify their commodity codes (NIGP or NAICS) to notify firms of applicable bid opportunities rather than only notify firms on a limited list. RECOMMENDATIONS As appropriations allow /

RECOMMENDATION 2: Implement An SDB Contract-by-Contract Sub-Contracting Goals Program With Authority From The Commonwealth RECOMMENDATION 3: Implement A Race- And Gender-Neutral Sheltered Market Program With Authority From The Commonwealth RECOMMENDATION 4: Consider Individual Experience Of Firms When Evaluating Bids RECOMMENDATION 5: Provide Small Business Development Assistance RECOMMENDATIONS

RECOMMENDATION 6: Enhance Communications And Marketing Resources RECOMMENDATION 7: Enhance Contract Compliance RECOMMENDATION 8: Track MWBE Participation And Review Claims RECOMMENDATION 9: Streamline Bidding Process And Limiting Paperwork RECOMMENDATION 10: Enforce Prompt Pay Provisions And Implement Internal Review Of Invoices RECOMMENDATION 11: Evaluate Opportunities For Additional Staffing And Resources RECOMMENDATIONS

1) Legal Gap Analysis • What do we have the power to work on now? • What legal authorizations are we missing? 2) Plan for Implementation Prepare the implementation plan with detailed steps, phases, and tasks required. 3) Determine Aspirational Goals How many disadvantaged vendors can we engage in our contracts and small purchases? NEXT STEPS TO IMPLEMENTATION = City Led = City/Consultant

4) Program Plan • Dedicated Project – Develop a program to reach aspirational goals consistent with legal doctrines surrounding race/gender. • Focus on what will have the most significant impact on the City and disadvantaged businesses. 5) Determine Budget and Staffing Needs for New Program Elements 6) Develop Training Protocol & Train Staff NEXT STEPS TO IMPLEMENTATION = City Led = City/Consultant

Q&A

LUIS QUIZHPE lquizhpe@somervillema.gov ANGELA ALLEN amallen@somervillema.gov ANDREA CARUTH acaruth@somervillema.gov FELISA GARATE fgarate@somervillema.gov CONTACT