The Fort Worth City Council voted this week to establish a small business development program to increase business opportunities in the city and prevent a potential loss of federal funding.

The city said the council vote also protects the work of hundreds of millions of dollars in current and future federal grants that support important infrastructure projects and social support programs that nearly 40,000 Fort Worth residents rely on each year, as well as the jobs of 120 city employees who support these projects and programs.

According to the city, the Fort Worth Small Business Development Program is a comprehensive initiative that is designed to expand access and opportunity for local small businesses and boost partnerships with the Fort Worth Metropolitan Black Chamber of Commerce (FWMBCC), Fort Worth Hispanic Chamber of Commerce (FWHCC), and Fort Worth Chamber (FWC).

City staff has met in recent months with the chambers of commerce, small business stakeholders and certification agencies to garner community input that has informed the plans and actions for the Fort Worth Small Business Development Program.

The city said that staff will continue stakeholder input opportunities as program development continues in the months ahead.

Highlights of the new program

The program will enhance small business participation in city contracts, promote procurement readiness, and provide technical assistance through partnerships and targeted support services, the city said.

City staff also are working with regional certification agencies to encourage eligible minority- and women-owned business enterprise (MWBE)-certified businesses to become certified as small businesses, using SBA definitions in order to get businesses certified quickly. Ordinance and resolution changes will allow the city to adopt a best value approach to support increased utilization by small businesses in city contracts, effective Sept. 1:

• Small Business Preference: 5% bid preference on contracts up to $100,000
• Small Business Goal: 30% utilization target (to start) for contracts over $100,000
• Economic Incentive Goal: Inclusion of small businesses in economic development projects

Additional support services will continue, including “Doing Business with the City” workshops, prime-subcontractor matchmaking and certification assistance. The city said it will leverage key existing resources that connect directly with the small business community, including the James E. Guinn Entrepreneurial Campus and the Devoyd Jennings Business Assistance Center, according to the city.

Officials said this effort is bolstered by the FWMBCC, FWHCC and FWC partnership through a memorandum of understanding to collaborate, share resources and amplify opportunities for small businesses across Fort Worth. They said that together, the chambers will deliver targeted services such as bonding and financial services education, procurement matchmaking, supply chain training and succession planning to broaden opportunity and support Fort Worth’s small business community.

The city said it will be contracting with all three chambers to deliver the new program deliverables.

The city said it also has additional plans to expand the program by issuing a request for proposals to create a Small Contractor Development Program and increase the pool of prequalified small businesses for City construction projects.

Complying with federal requirements

The city said that the Small Business Development Program is being launched as it shifts its approach on supporting business opportunities for all, helping ensure all small businesses can thrive without violating federal law.

Recent U.S. Supreme Court cases, executive orders and directives from federal agencies prohibit use of race, color, national origin, sex, religion, etc. as criteria for participation in government programs and services, the city said. Federal grant recipients such as the city are required to certify they do not have such programs, the city said.

Noncompliance would result in loss of federal funding, civil and criminal liability for city employees and the city being required to repay up to three times the grant amount.

The city said that if it does not comply, the Fort Worth community risks losing significant federal grant funding for projects, programs and city employees, both now and in the future.

The city currently has $277 million in active federal grant awards that play a vital role in the community as those dollars go directly into programs and projects that enhance public safety, expand affordable housing, cover utilities for low-income households, improve streets, enforce civil rights and more. The city said that many of the programs offer direct support to qualifying households, with nearly 40,000 individuals served annually by grant-funded programs through the Neighborhood Services Department.

Also at risk, the city said, are the jobs of 120 city employees who support these programs and whose positions are funded by federal grants.

The council action allows the city to comply with federal grant requirements by suspending certain programs, including the Business Equity Ordinance and MWBE requirements in economic development incentive policies, while moving forward on a more robust Small Business Development Program.

The city said the federal grant requirements do not currently affect federal civil rights enforcement. The city’s Civil Rights Office will continue to provide civil rights enforcement and support the Human Relations Commission (Fair Housing, Fair Employment, ADA/Reasonable Accommodation, Civil Rights Act).

The small business procurement ordinance will become effective with bids/contracts advertised on or after Sept. 1, according to the city. The council will vote on the contracts with the three chambers of commerce at the Aug. 26 city council meeting and pending approval, the contracts will become effective Sept. 1.

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