The city of Chattanooga released its Diverse Business Enterprise numbers for the first quarter of FY2015 on Wednesday. The report shows 14.35 percent of the total number of city purchases went to a minority, woman or veteran-owned business. This represents a "dramatic increase" in DBE engagement over the last two years. At the time Mayor Andy Berke took office in April of 2013, the city of Chattanooga’s DBE rate was approximately 2 percent.
Since Jan. 1, 2014, the city of Chattanooga has spent over $3 million with minority (defined as African American, Latino, and Asian), women and veteran-owned businesses. This represents 2.24 percent of all city funds spent during this time frame. According to first quarter FY2015 numbers, minority-owned businesses represent 4.4 percent, women-owned businesses represent 8.25 percent and veteran-owned businesses represent 1.69 percent of the current DBE engagement rate.
“Because of the hard work of our Office of Multicultural Affairs and Purchasing Department, as well as a strong partnership with the Urban League, LAUNCH, and the Chamber of Commerce, we have made tremendous strides in how the city of Chattanooga does business,” said Mayor Berke. “Not only are we changing the way we do business, we are ensuring more opportunity for diverse businesses to participate in growing our local economy.”
Upon taking office, Mayor Berke charged the city’s Office of Multicultural Affairs to work with the city’s Purchasing Department in an effort to increase the DBE rate. Through its Supplier Diversity program, OMA has done intensive DBE outreach and education for two years, including monthly workshops on how DBE’s can successfully work with the city of Chattanooga. After the city’s Purchasing Manual was revised, OMA began tracking engagement on Jan. 1, 2014.
“We have an unprecedented collaboration between multiple agencies right now and we are seeing the impact of that collaboration in our data,” said James McKissic, director of the Office of Multicultural Affairs. “As we work to increase the city’s DBE rate, we are also working with our partners to encourage third-party certification and grow the capacity of small, women and minority-owned businesses to the levels where they can compete successfully for city bids and overall business opportunities.”
The Supplier Diversity Program promotes and encourages minority, women, and disadvantaged business owners to participate in business opportunities with the city of Chattanooga. This affords Minority-Owned Business Enterprises, Women-Owned Business Enterprises and Disadvantaged Business Enterprises an equal opportunity to compete for work on city contracts. The Supplier Diversity program also encourages bidders to promote subcontracting opportunities to certified MBEs, WBEs and DBEs by soliciting firms for subcontracting opportunities. In addition, the city partners with the Chattanooga Chamber of Commerce, the Urban League, and LAUNCH through the Chattanooga Alliance for Diverse Business Enterprises.