Report on the City of Chicago's MWBE Program

Abstract

The City of Chicago has maintained an affirmative action program in construction since 1985, with the stated purpose being to 'remedy ongoing discrimination and the effects of past discrimination against women and minority groups, so as not to be a passive participant in such discrimination'. On June 28th 2004 the City adopted a new program with biannual, aspirational goals for the award of construction contracts and subcontracts to Minority Business Enterprises (MBEs) of 24 per cent of the annual value of all construction contracts and 4 per cent to Women-owned Business Enterprises (WBEs). The ordinance is set to expire on December 31st 2009, 'unless the city finds that its remedial purposes have not been achieved and there is a continuing compelling interest in continuing narrowly tailored remedies to redress discrimination against MBEs and WBEs so that the city will not function as a passive participant in a discriminatory marketplace'. This report provides evidence relevant to determining whether the program should continue past the sunset date at the end of 2009. I argue that it should.