Akron is launching a new approach to city contracting aimed at giving more small businesses a chance to win public work.
The new Small Business Enterprise program changes how the city identifies, structures and monitors some contracts, with small-business participation considered earlier in the process.
The city’s new approach comes in response to federal changes that affect race- and gender-based contracting programs, said Esther Thomas, Akron Mayor Shammas Malik’s director of the Office of Opportunity and Engagement, during a press conference Monday morning.
Akron previously had Minority Business Enterprise and Women Business Enterprise programs with aspirational participation goals. Thomas said those goals were not always enforced.
The new program is race- and gender-neutral, with eligibility based on business size and other requirements.
The city is shifting its focus earlier in the contracting process, considering where small businesses could participate before projects are designed and bids are submitted. That could mean dividing larger projects into smaller contracts or setting participation requirements on larger ones.
How will the Small Business Enterprises program work?
Akron is starting the pilot with real city projects, including some that have already been awarded and others that are in the pipeline.
The city awarded a $222,000 contract to Armstrong Painting to paint 2,215 fire hydrants in Akron’s central district. Two citywide sidewalk repair projects, each worth about $50,000, went to VCS Construction Services and Bishop Brothers Supply. A roughly $72,000 lighting upgrade at Cascade Parking Deck was awarded to Berwin Electric.
The city expects additional SBE opportunities through mowing and clearing work and other service contracts.
“We’re not starting with a theoretical program. We’re starting with real projects and real dollars,” Malik said.
The initial group of projects represents a minimum of approximately $1.19 million in SBE spending, according to city officials.
Connecting businesses with city departments
One of the city’s current challenges is that small businesses may not know what city work is coming up or who to contact, while city departments may not know which local companies can meet their needs.
The city is creating a quarterly SBE Spotlight meeting to try to connect the two. Businesses will be able to introduce themselves to city staff, explain what they do and what work they can take on, while city employees involved in purchasing, engineering, construction and contracting can learn about their capabilities.
“These aren’t contract awards, and participation does not guarantee city work,” said Brandon Laster, the city’s compliance officer. “This is about creating relationships and making sure small businesses and city departments know how to find each other when opportunities arise.”
The first SBE Spotlight is scheduled for Sept. 24, with additional sessions planned throughout 2027.
Who qualifies as a small business enterprise?
The program is open to for-profit businesses that are independently owned and operated, primarily in the United States, and meet the U.S. Small Business Administration’s size standards for their industry. The standards vary depending on the type of business.
Race and gender do not determine eligibility. Businesses must be qualified to perform the work they bid on.
“This isn’t about awarding contracts to businesses that aren’t qualified,” Malik said. “The base level is qualification.”
Businesses that meet the requirements can be certified as SBEs and pursue contracts that include SBE participation requirements or are designated for such entities.
For example, two upcoming lead service line replacement contracts, worth an estimated $8 million combined, will require at least 10 percent certified SBE participation. A bid that does not show how the contractor will meet that requirement will be considered unresponsive, Malik said.
That represents at least $800,000 in anticipated SBE participation. The amount could be higher if SBEs take on more than the required share or compete as prime contractors.
“That’s a floor, not a ceiling,” Malik said.
How will Akron measure the program’s success?
The city plans to use new software, called B2G, to track SBE participation and evaluate which contracts are a good fit for the program.
The system will track available contracting opportunities, certified SBEs and participation goals attached to individual contracts. The city can then compare those goals with the amount ultimately paid to small businesses.
Malik said the city wants the pilot to create a contracting system with measurable results.
“We want to create something that has more teeth, that has more accountability,” Malik said.
The city will use the results to determine which types of contracts are suited to SBE participation and whether the approach should become permanent.
A path to direct contracts
More direct contracts with the city could give small businesses a pathway to take on larger projects and build a track record that can help them pursue future work, said Akron City Council member Linda Omobien.
“We need to create more opportunities for small businesses to contract directly with the city government, not simply participate as subcontractors to larger companies,” Omobien said.
