Philadelphia has eliminated its longstanding diversity contracting goals and switched city contracting to emphasize “small and local” businesses. The shift, initiated by Mayor Cherelle Parker, reflects a growing trend by federal agencies and courts to restrict, if not eliminate, race- and gender-based goals in public contracting.

The new policy eliminates participation scales for M/W/DSBE subcontractors and suppliers, and the impacts will be felt from an annual award perspective of around $370 million, which would previously have gone to disadvantaged firms. 

City Solicitor Renee Garcia found guidance in other jurisdictions, and "we can’t risk money, federal money," offering a new focus on business size and business location as opposed to the business identity. While???????????????? the Council is deliberating legislative remedies, the city, through its outreach, incentives, and assistance, will continue to support all businesses.

Especially, the city of Philadelphia is increasing the availability of technical assistance and capacity-building workshops for small businesses that are getting used to the new contracting ????????????????environment. These workshops are designed to help the newly eligible; in the past, they would have been ignored, and applications and bids for those who would otherwise have applied for those opportunities would have been rejected, as the rules were changed from the interpretation of diversity goals utilizing past practice.

The continuously updated Public Works Forecast based in Philadelphia continues to provide advanced notice of upcoming projects in the city, as well as engagement sessions for small firms. The overhaul reflects a shift seen nationally where governments are reassessing contracting DEI standards.