Minority and women-owned businesses have earned a greater percentage of city contracts so far this year than the previous year–a fact that garnered procurement chief David Malone praise at Wednesday’s budget hearings from many of the aldermen who had previously criticized his performance.
Malone testified Wednesday that the city’s Department of Procurement Services awarded minority and women-owned businesses 48 percent of city contracts, or $466 million, through September 2003, up from 40 percent during the same time frame in 2002.
The percentage awarded individually to each group also increased from 2002, with African-Americans earning 18 percent, 13 percent for Hispanics and women, 8 percent. Asian-owned businesses received 5 percent and businesses classified by the federal government as “disadvantaged” earned 4 percent.
The news comes even as Malone’s department also rejected 94 applications this year for businesses attempting to become certified as minority or woman-owned because they did not meet qualifications. Malone said the department had become more vigilant, weeding out “front” companies in light of the federal probe against Windy City Maintenance, a janitorial firm run by white principals that won more than $100 million in city contracts because of its designation as a woman and minority-owned business. The scandal happened before Malone came to the department.
“We continue to try to monitor the process in a way that weeds out companies that aren’t certifiable. We do site visits, we look through all of the information they provide very, very carefully,” he said. “Obviously your awareness level goes up. But we’re still trying to do all the right things to weed out front companies. And if we don’t weed them out, we want to catch them.”
The response to Malone’s appearance Wednesday contrasted sharply with the one he got at the 2002 budget hearings, where Hispanic aldermen complained that not enough contracts had been awarded to Hispanic entrepreneurs and that there were no Hispanics in his department’s upper management. He was also criticized for a management style perceived as aloof and arrogant.
