February 27, 2008

PDC Increases Spending On M/W/ESBs By 82 Percent

As part of the annual Diversity in Contracting Report, the Portland Development Commission (PDC) announced today that spending on minority-owned, women-owned and emerging small business (M/W/ESB) firms increased by 82 percent over the previous year. The investment rose from $14.08 million in Fiscal Year 2005-06 to
$25.6 million in FY 2006-07 – an $11.5 million, or 82 percent, increase. The FY 06-07 results equaled 29.6 percent of PDC’s investment in construction projects as compared to PDC’s goal of 20 percent utilization of M/W/ESB contactors. On professional services contracts, PDC achieved 24.6 percent M/W/ESB utilization, also exceeding the goal.

“These are fantastic numbers, but beyond the numbers are minorities, women and small businesses in our community who are finding rewarding work on PDC projects,” said PDC Executive Director Bruce Warner. “We are pleased with this progress, but we want to do more – and so do our private sector partners. We are all heading in the right direction and I think increasing our dollars to M/W/ESB firms by 82 percent is a very positive way to kick off our 50th Anniversary,” he added.

To underscore PDC’s commitment to the issue of M/W/ESB contracting, since 2006 Warner has created the Community Relations and Business Equity department at PDC, established an internal Diversity Council, become a founding sponsor of the National Association of Minority Contractors, Oregon Chapter, supported joint equity ventures between established developers and minority-owned companies, created a Contracting Advisory Committee and established a Workforce Diversity Advisory Committee.

At the Feb. 27 commission meeting, the PDC Board of Commissioners will consider a new Business and Workforce Equity Policy that would become effective April 1, 2008. The policy will raise PDC’s goals for developers and general contractors by:
· Implementing a goal of 20 percent M/W/ESB utilization on all public-private development’s total hard construction cost – not just on the PDC investment
· Adding a 20 percent M/W/ESB utilization goal to all PDC direct construction contracting
· Including a 30 percent goal on M/W/ESB Flexible Service and Personal Services contracting and a 25 percent goal on total dollars

PDC also participates in the Workforce Training and Hiring Program (WTHP) administered for PDC by the City of Portland, Bureau of Purchases. PDC continues to encourage the recruitment of women and minority apprentices as a key element of the policy. For FY 06-07, 22 percent of all construction hours worked on PDC projects were worked by apprentices and 32 percent of those hours were worked by women and people of color. With many large construction projects under way in Portland, sporadic apprentice shortages are evident in several trades. PDC will continue to work with labor, Construction Apprentice and Workforce Solutions, Inc., community-based organizations and pre-apprentice programs to fulfill the increasing demand for diverse apprentices.

To view the PDC Diversity in Contracting Report visit: www.pdc.us/pubs/inv_detail.asp?id=151&ty=46

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