Standing before the New Orleans City Council's Economic Development Committee this week, Don Harding said his business experience could be divided into two distinct stages: the period before the city certified him as a disadvantaged business enterprise, a time of struggle and modest accomplishments, and his post-certification life, a time thus far marked by tremendous success. "A few years...
Standing before the New Orleans City Council's Economic Development Committee this week, Don Harding said his business experience could be divided into two distinct stages: the period before the city certified him as a disadvantaged business enterprise, a time of struggle and modest accomplishments, and his post-certification life, a time thus far marked by tremendous success.
"A few years ago we were popping the cork on champagne if we were making $300 at the Gretna Farmers Market," Harding said.
But since his company, Cool Fruit Sensation, was officially recognized as a disadvantaged business enterprise, or DBE, , Harding said, he has posted record sales and enjoyed opportunities he never dreamed of before -- like getting the chance to sell his fresh fruit drinks at the Mercedes-Benz Superdome during Super Bowl XLVII, at the French Quarter Festival and at this summer's Essence Music Festival.
"It's like a journey from darkness into the light," Harding said. "For years we struggled, pushed, drove and looked up and were in the same spot. Sometimes my wife and I look at each other and can't believe this is finally happening."
Harding asked the council to support amendments the Landrieu administration has proposed to the city's DBE program that would strengthen its compliance rules, expand its outreach and create more opportunities for businesses like his.
The committee members agreed to Harding's request, one that was echoed by nearly a dozen other speakers, and voted unanimously to recommend the proposed amendments to the full council for approval.
"I'm the son and grandson of a contractor, and I don't know that the problem in the past is that people didn't work hard or do what they were supposed to do," said Councilman James Gray. "My recollection is they always worked hard and were still many times denied an opportunity. The mayor has pledged he's going to change that. We've pledged we're going to change that and this city is going to show the way to the rest of the country."
The DBE program is designed to guarantee that at least 35 percent of city contracts will go to businesses owned by people that are at a disadvantage both socially and economically, most notably minorities and women.
The proposed amendments would strengthen the city's ability to sanction contractors that fail to abide by DBE requirements. They would let the city withhold payments or terminate contracts.
The amendments would require the city's Chief Administrative Office and any board or commission that awards contracts to submit, along with their annual budget requests, a report identifying their DBE goals and success rates for the previous year.
The amendments would also expand the DBE program to include specific projects under the New Orleans Redevelopment Authority, providing additional opportunities for disadvantaged companies.
The praise for the DBE program that filled the council chamber Tuesday was a far cry from the widespread criticism it received in years past.
When the Landrieu administration took office in 2010, the DBE program was a mess, said Arkebia Matthews, director of the Office of Supplier Diversity, which oversees the program. There was no process in place to monitor DBE participation, no records or data, and a two-year backlog of companies waiting for certification.
Shortly after taking office, Landrieu issued a series of executive orders charging the Office of Supplier Diversity with reforming and strengthening the program and increasing the number of DBE-certified companies.
In the past three years, the city has streamlined the process, decreasing the certification waiting time from over a year to less than 45 days. The number of certified DBEs reached 602 last year, up from 225 in 2009, and DBE participation in city contracts increased from 16 percent in 2010 to 34 percent last year, one percentage point shy of the administration's goal. The total value of DBE construction contracts jumped to $44 million in 2012 from $32 million the previous year.
"The city has made it so much less complicated in terms of getting certified, and now we have success stories we didn't have before," said Barbara Major, chairwoman of the Regional Transit Authority board. "Before (people) felt the DBE program was worthless because historically it didn't mean much to a lot of folk."
Providing opportunities for minority-owned businesses will not only help their bottom lines but will also help many of the city's troubled communities by providing jobs, said Randy Smith, director of business development for Royal Engineers and Consultants.
"Who is in the best position in the city to not only make an economic impact but a civic impact? It's your local small businesses," Smith said. "I think by default your small businesses and your DBEs are the ones at the table because they live in the community. They breathe it, they smell it and like myself they have kids in these communities. We have a vested interest that's beyond economics."