Diversity Credit/Capacity Building/Small Business Programs

Procurement Services offers a number of programs designed to encourage contracting grow opportunities. For a complete list of programs and incentives visit our Rules, Regulations and Ordinances page.

Small Business Initiative

The Small Business Initiative is designed specifically to encourage small businesses to have an opportunity to participate in City-funded construction projects. The program, which will be race and gender neutral, will be exclusive to small businesses and will be limited to construction projects that are under $3 million in total cost. This will provide a level playing field for small businesses to compete in the construction space, a key area in which larger companies are at an inherent advantage. For more information on this program, click here.

Diversity Credit Program

The Diversity Credit Program is designed to increase the use of minority and women-owned businesses on contracts issued in the private sector. This will be accomplished by providing Supplier Diversity participation credit on City contracts for contracts that are awarded in the private sector. For every $3 of private sector contracts, $1 in credit will be issued to the contractor, which can then be used to provide up to 5 percent of a subsequent city contract. This encourages some of Chicago’s largest construction contractors to work with minority- and women-owned businesses – not only in the public sector, but in the private sector as well. For more information about this program, click here.

Affidavit for Diversity Credit

Local Manufacturing Ordinance

Bid Incentive to bidders providing goods made or assembled in the City of Chicago

Local Business Preference Ordinance

Expanded local business preference to all City-funded contracts over $100,000.

Project Area Subcontractor Bid Incentive

Up to 2% bid incentive off of the contract base bid to prime contractors that are utilizing subcontractors whose facility and workforce is located within the project area of a City-funded construction job.

Phased Graduation Ordinance

Firms that have exceeded the M/WBE program's size standards continue to participate for a period of 3 years to gradually exit the program

M/WBE Mentorship Program

Established contractors willing to enter into a mentor/protege relationship can be awarded up to 5% additional utilization credit

Alternatively Powered Vehicle Ordinance

1/2 bid incentive for companies located in 6 county region when 50% or more of the company's fleet are alternative fuel vehicles.

Project Area Resident Ordinance

Require contractors on contracts valued at $100,000 or more to utilize at least 7.5% of all labor hours by residents in construction area.

Veteran's/Small Business Bid Incentive

5% bid incentive off the contract base price to joint ventures between small local business and veteran-owned businesses.