Success Stories in Equitable Procurement: Lessons Learned and Best Practices
In the last 3 articles of the procurement series, we’ve worked our way through the complexities of procurement and equity, and we’ve unpacked the challenges and systemic barriers that many businesses face when competing for contracts. But amidst these challenges, there are success stories—examples of institutions that are actively working on embedding equity into their procurement practices, transforming the way they operate and creating positive ripple effects throughout their communities. If you haven’t already read the last three articles, this is your sign to stop here and get caught up starting with Procurement: The hidden engine of equity.
In this final article of our series, we’ll spotlight some of these success stories and explore the best practices that can help you design more equitable procurement processes. As always, if you’re looking for active support getting this done with excellence, shoot us a note at hello@quakelab.ca
The City of Toronto
The City of Toronto has made significant strides in promoting supplier diversity through its Social Procurement Program. Launched in 2016, the program was designed to leverage the city’s purchasing power to create economic opportunities for businesses owned by women, racialized individuals, Indigenous peoples, persons with disabilities, and other equity-seeking groups.
One standout success from this initiative is the increased participation of diverse suppliers in city contracts. Since the program’s inception, the number of contracts awarded to diverse suppliers has steadily grown. In 2022, over 20% of the city’s contracts were awarded to diverse suppliers, compared to just 5% before the program began. This growth has been driven by targeted outreach, capacity-building workshops, and the inclusion of diversity criteria in RFPs.
The City of Toronto’s approach highlights the importance of setting clear goals and backing them with robust support structures. By providing training and resources to diverse suppliers, the city has not only increased participation but also built lasting relationships with these businesses.
The City of Atlanta
The City of Atlanta has long been a leader in promoting equity through procurement. Its Equal Business Opportunity (EBO) Program is designed to increase the participation of minority and women-owned businesses in city contracts.
Atlanta’s EBO Program has seen significant success, particularly in the construction sector. In 2021, minority and women-owned businesses were awarded nearly 35% of all city contracts, significantly above the national average. This success is partly due to Atlanta’s proactive efforts to break down barriers, including offering mentorship programs, networking events, and financial assistance to help diverse suppliers compete.
The City of Atlanta’s success demonstrates the power of comprehensive support for diverse suppliers. By combining policy with practical support, such as mentorship and financial assistance, Atlanta has created an environment where minority and women-owned businesses can thrive.
Hartsfield-Jackson Atlanta International Airport
Hartsfield-Jackson Atlanta International Airport, one of the busiest airports in the world, has been a beacon of success when it comes to equitable procurement. The airport’s Disadvantaged Business Enterprise (DBE) Program aims to ensure that small businesses owned by socially and economically disadvantaged individuals have the opportunity to participate in airport contracts.
One of the most significant achievements of the DBE Program has been its ability to consistently exceed federal participation goals for disadvantaged businesses. In 2022, Hartsfield-Jackson awarded over $200 million in contracts to DBEs, with many contracts going to minority-owned and women-owned businesses. This success is due in part to the airport’s commitment to creating a level playing field through targeted outreach, capacity-building initiatives, and ensuring that DBEs have fair access to bidding opportunities.
Hartsfield-Jackson’s success highlights the effectiveness of a strong DBE program that not only sets ambitious goals but also provides the necessary support to help disadvantaged businesses succeed. By focusing on creating real opportunities for participation, the airport has set a high standard for other institutions to follow.
Penn State University
Penn State University has made supplier diversity a key component of its procurement strategy. The university’s Supplier Diversity Program is committed to ensuring that minority, women, veteran, and LGBTQ-owned businesses have access to procurement opportunities.
One of the standout successes of Penn State’s program is its annual Supplier Diversity Trade Show, which connects diverse suppliers with university departments. This initiative has led to a significant increase in contracts awarded to diverse suppliers, with over $100 million in contracts going to these businesses in the past five years alone.
Penn State’s approach underscores the importance of proactive engagement and relationship-building with diverse suppliers. By creating platforms like trade shows and networking events, the university has fostered long-term partnerships that benefit both the institution and the community.
BC Housing
BC Housing, the crown corporation responsible for providing affordable housing in British Columbia, has integrated social value into its procurement processes. By prioritizing suppliers that demonstrate a commitment to social value—such as local employment, environmental sustainability, and community development—BC Housing has created a procurement model that benefits both the economy and society.
A notable example of BC Housing’s success is its partnership with several social enterprises and Indigenous businesses for the construction of affordable housing projects. These partnerships have not only delivered high-quality housing but also created jobs and skills training opportunities for marginalized communities. In 2021, BC Housing reported that over 30% of its contracts were awarded to suppliers with strong social value commitments.
BC Housing’s success underscores the importance of integrating social value criteria into procurement decisions. By looking beyond just the lowest cost and considering the broader impact of procurement decisions, organizations can create more inclusive and sustainable outcomes.
The City of Chicago
In the United States, the City of Chicago has made headlines with its efforts to create more transparent and inclusive RFP processes. The city’s Department of Procurement Services has implemented several initiatives aimed at increasing transparency and reducing barriers for small and diverse businesses.
One of the city’s most successful initiatives has been the introduction of the “Bid Incentive Program,” which offers bid discounts to minority-owned, women-owned, and veteran-owned businesses. This program has led to a significant increase in the number of contracts awarded to these businesses. In 2021, nearly 40% of city contracts were awarded to diverse suppliers, a significant increase from previous years.
The City of Chicago’s approach highlights the power of incentives and transparency. By offering tangible benefits to diverse suppliers and making the RFP process more accessible, the city has opened the door to a wider range of businesses, fostering greater competition and innovation.
These case studies all show exciting potential. However, it’s important no to limit ourselves, after all, we want to aim for the ceiling not the floor. A key aspect often missing from these initiatives is a broader analysis of equity that moves past just diversity. Procurement equity falls into the numbers trap of setting goals based on diversity numbers. It’s important to collect and analyze metrics that seek to learn not just how many marginalized people and business can access procurement opportunities, but the practical and tangible barriers that they have to face, and how to systematically remove them. Incentivizing marginalized business owners to bid for procurement opportunities is one thing, assessing the barriers that they were facing and eliminating them is a whole other thing. However, from these success stories, we can distill several best practices that other organizations can adopt to promote equity in procurement:
Invest in data, research, and engagement projects to clearly understand what barriers exist for different groups, and how to reduce or eliminate those barriers.
Critically assess each requirement within procurement process that are taken for granted. Question their purpose, use, what they seek to accomplish, and who they exclude or disincentivize (eg. do you really need a police record check to provide a city with all its paper?)
Establish specific, measurable targets for supplier diversity and track progress over time.
Make the RFP process more accessible by reducing complexity, offering clear guidelines, and providing support to diverse suppliers.
Include criteria in procurement decisions that value social impact, including local employment and community development.
Implement set-aside programs and bid incentives to level the playing field for marginalized businesses.
Ensure that the RFP process is transparent, with clear communication and accessible information for all potential suppliers.
Equitable procurement is not just a matter of fairness; it’s a strategic imperative that can drive innovation, economic growth, and social cohesion. By learning from the success stories and best practices shared in this article, organizations can take meaningful steps toward creating more inclusive procurement processes.
As we look to the future, the goal is clear: to continue breaking down barriers and ensuring that procurement is a tool for positive change in our communities.
References
City of Toronto. (2022). Social Procurement Program Report. Retrieved from https://www.toronto.ca.
Government of Canada. (2021). Procurement Strategy for Indigenous Business. Retrieved from https://www.canada.ca.
BC Housing. (2021). Social Value in Procurement: Annual Report. Retrieved from https://www.bchousing.org.
City of Chicago. (2021). Bid Incentive Program Overview. Retrieved from https://www.chicago.gov.
City of Atlanta. (2021). Equal Business Opportunity Program Report. Retrieved from https://www.atlantaga.gov.
Penn State University. (2022). Supplier Diversity Program Annual Report. Retrieved from https://www.psu.edu.
