LOS ANGELES –– Today Mayor Eric Garcetti signed Executive Directive (ED) 35 — laying the foundation for increased access to the City of Los Angeles’ procurement process for women and minority-owned businesses as a result of a study focusing on recommendations to increase equity in the City’s procurement process.
“Women strengthen our economy, families, communities, workplaces, and city, and yet they face obstacles and inequities every day,” said Mayor Eric Garcetti. “This directive, guided by our study, will provide a sturdy foundation for future equality in economic growth. Let’s uplift women and facilitate opportunity, because when they thrive our city thrives.”
This study, produced in partnership with the Los Angeles Economic Development Corporation (LAEDC) Institute for Applied Economics, focuses on recommendations to increase accessibility and equity in the City of Los Angeles’ procurement process so that more women-owned businesses can successfully participate.
In response to the study, Mayor Garcetti signed ED 35 requiring departments to address the findings produced in the study. The directive calls for the standardization of business data collection by Departments to help guide City policies, actions to help propel avenues for City Charter amendments that ensure the inclusion of small businesses in the procurement process, improvements in communication and the processing of contract payments, and avenues for increasing and streamlining business support and outreach.
Women own more than 20 percent of all businesses in the Los Angeles region. These businesses are highly diverse, with almost half of women-owned businesses being minority-owned and women-owned businesses make up less than 10 percent of businesses in every industry in the Los Angeles Regional Alliance Marketplace for Procurement (RAMP), the city’s platform for contracting opportunities. In addition to underrepresentation on RAMP, women-owned businesses are significantly underrepresented in the City of Los Angeles’ procurement process in terms of the share of allocated procurement spending awards for several departments.
“With the Mayor’s executive directive and the delivery of RAMP, the City is improving the procurement process and data collection while ensuring equal access to the City’s procurement and contracting opportunities,” said Shannon Hoppes, the City of Los Angeles’ Chief Procurement Officer. “RAMP will now collect the data and provide the infrastructure to inform the region’s diverse businesses of opportunities, capture and centralize critical metrics to help inform and drive future policies that support our business community, and create positive impact on the region’s economic future.”
“The City of Los Angeles made great strides to reform and improve its procurement environment. Despite these positive steps, the city still trails other major cities when it comes to implementing a strategic approach for women-owned businesses to be better represented in the share of procurement dollars,” said Bill Allen, President and CEO of LAEDC. “With Los Angeles County being home to more than 1.3 million small businesses, including more women and BIPOC-owned small businesses than any other county in the nation, we believe this study will be vital to the City of Los Angeles’ economic recovery and help promote greater equity within its contracting processes.”
The full report, including more details on key findings and recommendations, will be available at LAMayor.org/GenderEquity on Friday, August 26th, 2022.