Small businesses eligible for Metro contracts skyrockets

The number of small businesses and minority-owned businesses eligible to compete for Metro contracts has increased dramatically over the last year, according to figures released by Mayor Karl Dean’s office.

The outreach by Dean’s office to make more businesses eligible for Metro contracts is part of the nondiscrimination procurement program he signed earlier this year, in addition to the work done by the Minority and Small Businesses Assistance Program.

According to Dean’s office, the number of minority- and women-owned businesses eligible registered with the program has grown from just 30 in August to 260 currently.

“The increase in small and minority-owned companies able to compete for Metro contracts is a tremendous success. At the same time, we will continue to work and continue to find ways to create an equal playing field for all businesses in Nashville,” Dean said. “Doing this is good for our city’s economy and good for our government in tight economic times. Metro clearly benefits from increased competition and a broader vendor base.”

The number of small businesses eligible for contracts and subcontracts has gone from 148 earlier this year to 550 presently. The standards for a small business to register with the program were made less stringent. A business now must have been in operation for one year and have a minimum annual revenue of $35,000. The previous standard was two years of operation and $100,000 in revenue.

The nondiscrimination procurement program was passed earlier this year by Metro Council after two disparity studies showed women- and minority-owned businesses were not getting a fair shot at city contracts.

It’s too soon to compile statistics for whether increased access has equaled more contracts being scored by the businesses, since the program only began earlier this year.

“The increase in these numbers is largely attributable to city officials working to better inform and engage small and minority-owned businesses,” said Michelle Lane, director of Metro’s Minority and Small Business Assistance program. “This is an ongoing effort. As more small and minority businesses understand the commitment of the city’s leadership and the new approach that the city is taking to better include them in Metro procurements, more companies express interest in doing business with the city.”