Late last month, Los Angeles Mayor Eric Garcetti signed an executive order aimed at increasing the percent of city contracts going to women and minority-owned businesses.
The order, which Garcetti signed on Aug. 25, was based on a study from the Los Angeles County Economic Development Corp. that found dismal rates of city contracts being awarded to women and minority-owned businesses and made recommendations to increase equity.
“Women strengthen our economy, families, communities, workplaces, and city, and yet they face obstacles and inequities every day,” Garcetti said in a statement accompanying the executive order signing. “This directive, guided by our study, will provide a sturdy foundation for future equality in economic growth.”
The LAEDC’s study analyzed for several city agencies the rates of contracts going to prime contracting firms owned by women and the percentages of subcontract expenditures going to women-owned businesses.
One of the worst-performing city agencies was Los Angeles World Airports, which oversees Los Angeles International and Van Nuys airports. From 2017 to 2021, prime contractor companies owned by women received 2% of contracts, while just 6% of payments to subcontractors went to firms owned by women.
These rates occurred despite data showing that more than 20% of all businesses in Los Angeles County are owned by women. The city’s Public Works department was among the best performing, with 22% of payments to prime contractors going to firms owned by women.
“The city of Los Angeles made great strides to reform and improve its procurement environment,” Bill Allen, LAEDC’s chief executive, said in a statement.
