Initiate two disparity studies on City contracting and workforce participation
WHEREAS, the City of Portland spends millions of dollars each year on the procurement of goods, services and construction; and
WHEREAS, the City has a responsibility to ensure its public dollars are spent in a way that benefits the community it serves; and
WHEREAS, the City of Portland is committed to advancing equity, anti-racism, and inclusive economic opportunities through its contracting and workforce policies; and
WHEREAS, the Executive Order to City Employees to Comply with Federal Law (EO 2025-01) requires compliance with all applicable federal civil rights and nondiscrimination laws, including, but not limited to the Civil Rights Act of 1964; and
WHEREAS, EO 2025-01 presents an opportunity for exploration into new strategies to support small businesses and develop the local workforce in preparation for participation on public contract opportunities; and
WHEREAS, Council has received passionate testimonials from the local labor and small business community in support of the City conducting a disparity study, in addition to improving access to resources like business technical assistance and workforce development services that support participation on public projects; and
WHEREAS, the last disparity study conducted by Procurement Services was completed in 2009; and
WHEREAS, peer cities have invested in conducting a disparity study at least every 5 years as a best practice; and
WHEREAS, a disparity study would provide updated data about business availability changes and enhance the Chief Procurement Officer’s ability to accurately assess the efficacy of various procurement programs; and
WHEREAS, a contract disparity study would allow the Chief Procurement Officer to examine the utilization of MBE/WBEs and other diverse businesses in City construction, professional services, goods and other services contracts; and
WHEREAS, a workforce disparity study would allow the Chief Procurement Officer to evaluate how construction work hours on City construction contracts are divided among apprentices, workers of color, and women; and
WHEREAS, the City previously authorized a disparity study through Ordinance No. 190781, which was passed on April 20, 2022, to evaluate disparities in contracting and workforce participation; and
WHEREAS, the City recognizes the importance of conducting a comprehensive disparity study that considers data from the State of Oregon, the Port of Portland, and Prosper Portland to ensure a thorough analysis of disparities in contracting and workforce participation; and
WHEREAS, Prosper Portland is currently engaged in a disparity study, led by Keen Independent Research, to analyze disparities in the utilization of disadvantaged-, minority-, woman-, emerging small-, and service-disabled veteran-owned businesses (D/M/W/ESB/SDVs) in its construction-related contracts and public-private partnership agreements; and
WHEREAS, the State of Oregon has conducted a disparity study, also led by Keen Independent Research, to evaluate disparities in contracting and workforce participation across various state agencies; and
WHEREAS, the Port of Portland has undertaken a disparity study to assess disparities in contracting and workforce participation within its operations; and
WHEREAS, the City acknowledges that existing data from the State of Oregon, the Port of Portland, and Prosper Portland provides valuable insights into disparities in contracting and workforce participation and can inform the City's efforts to address these disparities; and
WHEREAS, the City recognizes that conducting a comprehensive disparity study is essential to identify and address systemic barriers that hinder equitable access to contracting and workforce opportunities for historically marginalized communities; and
NOW, THEREFORE, BE IT RESOLVED that the Portland City Council requests:
- That the City Administrator initiate two disparity studies to evaluate disparities in both City contracting and workforce participation, utilizing data from the State of Oregon, the Port of Portland, and Prosper Portland as well as obtaining any relevant data specific to the City of Portland.
- That the City Administrator, in partnership with the Chief Procurement Officer, engage a qualified consultant with expertise in conducting disparity studies to perform the analysis, ensuring that the study adheres to best practices and legal standards, with attention paid to the potential for disparities to emerge from the intersection of race and gender.
- That the disparity studies be conducted in a manner that emphasizes community engagement throughout the process, ensuring that input from historically marginalized communities is reflected in the work of the study.
- That the studies analyze impacts of project labor agreements, community benefits agreements on disparity outcomes, and the Regional Workforce Equity Act (RWEA).
- That the findings and recommendations of the disparity studies to City Council upon completion including proposed actions to address identified disparities and promote equitable contracting and workforce participation. And the data used for the study shall be made available to the public.
BE IT FURTHER RESOLVED that City Council funding for the requested disparity studies be presented has not yet been identified and that the Committee will support a request from the City Administrator for funds in the 2025 Fall Technical Adjustment Ordinance to secure necessary resources. Work cannot begin until funding is identified; and
BE IT FURTHER RESOLVED that City Council commits to supporting the City Administrator in utilizing the findings of the disparity study to inform policies and practices that promote equitable access to contracting and workforce opportunities for all Portland residents.
BE IT FURTHER RESOLVED that the City Administrator bring a separate report, with guidance and recommendations of the Fair Contracting Forum (FCF) which is comprised of labor, contractor, and community members, to Council or a relevant committee with the following items: project specific wage and compensation data, methods of data collection, as well as an analysis of the effectiveness of exemption programs intended to increase workforce and contractor diversity.
Exhibits and Attachments
Impact Statement
Purpose of Proposed Legislation and Background Information
This Resolution is intended to establish a studies to evaluate any disparities in the City's contracting opportunities or offerings. The data and findings of that report will inform discussions about policies governing City procurement and contracting, alignment with City and community values, and related discussions.
Financial and Budgetary Impacts
Short-term financial and budgetary impacts are expected to be minimal to modest. The City will need to provide some funding for both of the proposed studies contingent upon the City Council's review of an expected Technical Adjustment Ordinance to the City budget expected this fall.
Economic and Real Estate Development Impacts
This Resolution is expected to have minimal (if any) economic and real estate development impacts. The results of these disparity studies may spur future policy changes that could affect the City's economy or real estate development, but for now, this legislation would only authorize a study of some aspects of the City's economy.
Community Impacts and Community Involvement
We expect the disparity studies will include some aspects of community involvement depending on how the consultants hired to conduct the research studies accomplish their work.
100% Renewable Goal
This Resolution is not expected to have any impact (positive or negative) on the City's goal of meeting renewable energy needs.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Document History
Document number: 2025-377
President's referral: Labor and Workforce Development Committee