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March 4, 2004

City defends DNC contract process

Jeremy Schwab

Planners of this summer’s Democratic National Convention have hired a diverse staff and are aggressively reaching out to businesses of color and women-owned businesses to encourage them to compete for the tens of millions of dollars in contracts expected to be awarded for the political bash.

The Democratic National Convention Committee has promised $1.5 million in subcontracts to women- and minority-owned companies to makeover the Fleet Center. Three minority-owned companies have teamed up with construction manager Shawmut Design and Construction to supervise building at the Fleet Center.

But Leonard Alkins of the Boston Branch of the NAACP, Sadiki Kambon of the Umoja Coalition for Unity and City Councilor Chuck Turner are not satisfied.

“We’re not asking for quotas, we’re asking for fairness,” said Alkins. “I think the [mayorally appointed] host committee understands that $1.5 million does not address the issue of fairness to African Americans and other people of color. When you talk about women and disabled those could be white businesses. White males and white females are the same. Minorities are the ones who have been excluded from contracts over the years.”

Host committee representatives were reluctant to criticize the black activists publicly for their vociferous stand.

The host committee and DNCC expect to spend the vast majority of their estimated $49.5 million budget this spring and summer, as contracting needs become more clear.

“I think as our planning moves into full swing people will begin to realize the host committee made tremendous commitment to hiring minority-owned and women companies and we stayed true to our word,” said host committee spokeswoman Karen Grant.

As for the construction of the staging in the Fleet Center, the $1.5 million targeted for women- and minority-owned businesses represents half of the projected $3 million in subcontracting work.

“Minority contractors tend to hire more minority workers than majority workers on a percentage basis,” said Bruce Bolling, whose Massachusetts Alliance for Small Contractors has been hired to find minority- and women-owned businesses to do work on the site.

Bolling sees economic opportunities for minority businesses not just with the Fleet Center work, but down the line as companies build relationships that can serve as the foundation for future collaborations.

“Shawmut clearly is looking at the long term here and how they can be a major player and expand their pool of subcontractors who can do work for them, including minority and women businesses,” said Bolling.

While host committee representatives promise to issue a significant number of contracts to businesses of color, many in the black community suspect the city will cut behind-the-scenes deals with white contractors.

Their suspicion is fueled largely by the city’s history. Most major construction deals go to white-owned firms.

When the city’s host committee issued a no-bid fee-for-service deal worth up to $250,000 to a white contractor to oversee construction at the Fleet Center, Alkins and Kambon spoke out, saying it was the same old good-old-boy network come into play.

“Some small contracts have to be executed because of the time frame, but I think if it’s over $5,000 there should be bidding,” Alkins told the Banner before a city council hearing on the convention last week.

One element that black activists see lacking in the convention planner’s plan is a commitment to report the proportion of contracts given to businesses of color on a rolling basis.

The host committee does not plan to release a full report of its contracting, broken down by race, ethnicity and neighborhood, until after the convention is over.

“There is no reason they cannot establish a new policy and program right now,” said Alkins.

Turner said he had heard that $1.5 million had been donated to the host committee to conduct outreach to businesses.

“I think the attorney general should look into making sure that $1.5 million is being used appropriately,” he said.

Host committee spokeswoman Grant would not say exactly how much money has been donated for outreach.

“We are working with foundations to determine what these things can be used for,” she said. “One foundation said we want some money earmarked for certain outreach efforts.”

As for the mayorally appointed committee’s outreach efforts so far, its three full-time staffers have conducted over 250 meetings across the city with business and neighborhood associations, individual business owners and elected officials.

The main thrust of this outreach effort has been to register small and local businesses in a directory that convention planners say they will use as their first resource for their contracting needs.

So far, the directory lists over 1,000 businesses, 491 of which are certified with one of six government agencies. Of those that are certified, 155 are minority-owned and 240 are women-owned, according to host committee statistics.

“To be most competitive, businesses should be part of the vendor directory, and joint ventures are another good way to maximize opportunity for participants,” said Will Dorcena, who directs the host committee’s outreach efforts.

 

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