Frequently Asked Questions

Rules for Reporting of Business Diversity Programs and Utilization of Certified Firms Pursuant to Mayoral Executive Order 2021-2

What does Section 3 (Business Diversity Program) of Executive Order 2021-2 require?

The EO requires submission of a Business Diversity Program and utilization report on July 1 of each year from all contractors, with certain exceptions. The exceptions are:

  • The contractor is a certified firm; or
  • The contract is for professional consulting services of an individual who is either the majority owner of the contractor or is the contracting party as a sole proprietor; or
  • The aggregate award value of all City contracts awarded to the contractor is less than $100,000 per year.
  • The CPO has determined that reporting is not required in connection with a specific contract.

What is the City’s definition of a business diversity program (BDP)?

A BDP is a program or initiative that encourages or facilitates the use of minority-owned, women-owned, and other historically underutilized businesses as contractors, consultants, suppliers or service providers.

Do all contractors have to report on BDP and utilization?

All contractors must submit a report unless they fall into an exception. Even if the contractor falls into an exception, they may report on their BDP voluntarily.

What if I only have a small one-time contract with the City for less than $100,000? Do I have to file BDP reports?

No. Firms whose contracts are less than $100,000 and whose contracts awarded in a given year (defined as June 1 of the prior year through May 31 of the current year) have an aggregate value of under $100,000 are exempt.

I have a Redevelopment Agreement and the City-supported construction has been completed. Do the BDP reporting requirements apply to me?

No. As long as the City-supported construction or rehabilitation is finished, you do not have to report.

What information should I be prepared to provide to complete the online form to fulfill the requirements of EO 2021-2 Section 3?

  • Background information about your company such as number of employees, annual revenues.
  • Whether your firm falls within an itemized exception
  • Whether you have a Business Diversity Program
  • Information on your utilization of diverse firms, in dollars and in percentages

If I have a Business Diversity Program, what information will I need to submit?

  • A description of the Program including when it was established, whether staff is dedicated to diversity, and whether you offer diversity training.
  • Whether your program requires a firm to have a certain percentage of ownership by diverse owners to qualify as diverse and if so, what percentage.
  • What diverse groups your program addresses.
  • Whether your program has goals for diverse participation and whether the goals relate to particular areas of spending

My company does not have a BDP. Do we need to develop one to get a city contract?

No. BDPs are strongly encouraged but not required.

We would like to start to develop a BDP. Where can I get guidance about BDPs including elements, structure and best practices?

There are resources here about creating a successful BDP, guidance for small businesses, examples of BDPs and a Summary/Checklist of key components of BDPs.

We have a BDP but we have not tracked expenditures with diverse firms on non-City work. Do I have to start doing that?

No. The Executive Order requires this information as to expenditures on goods and services from diverse firms to the extent the contractor has such information available.

What information does the form require about how my company utilizes diverse firms?

  • To the extent available, information on your utilization of diverse firms in dollars and in percentages.
  • To the extent available, a breakdown of these dollars and percentages into categories: minority, women, persons with disabilities, veterans, LGBTQ and other.
  • To the extent available, a breakdown of diverse firm utilization for subsets of professional services, supplier contracts and construction contracts.

What if I don’t track information in the various categories of diversity? Is that a problem?

No. You will simply leave those questions blank.

Does this only apply to contracts I have with the City?

No. You will need to provide information about your utilization of diverse firms in contracts with the City and all of your firm’s other contracts.

For what years does the City need this information?

The form asks for this information for 2019 and 2020.

Can I provide approximate figures when reporting my utilization of diverse firms if I don’t have detailed figures?

Yes.

Who will see this information?

The information will be seen by relevant City departments and personnel. Additionally, the information will be subject to the same types of legal disclosure requirements that apply to other information collected by the City.

What will this information be used for?

The City will use this information to consider future programs related to diverse participation and other initiatives, and to identify best practices.

Is there a penalty for failing to report on my BDP and utilization?

To the extent that filing these reports is incorporated into your contract terms, the City has contractual remedies for failure to comply.