Business advocacy groups file discrimination complaint against the City Of Boston

The Black Economic Council of Massachusetts (BECMA), the Greater  Boston Latino Network (GBLN), and Amplify Latinx filed a civil rights complaint Wednesday against the City of Boston in response to gross racial disparities in public contracting under the Walsh  Administration.

Lawyers for Civil Rights filed the complaint, under Title VI of the Civil Rights Act,  with the U.S. Department of Justice (DOJ) and the U.S. Department of Transportation (DOT) alleging that the City of Boston has engaged in a pattern of discrimination against Black- and  Latinx-owned businesses by maintaining a public procurement system that unlawfully excludes these businesses from equal contracting opportunities.

The City of Boston commissioned a disparity study in 2018 to assess the demographics and circumstances surrounding the recipients of public contracts under the Walsh Administration. The recently-completed study found that just 1.2% of the $2.1 billion spent in public contracts went to Black- and Latinx-owned businesses – despite the fact that such businesses are available in much greater numbers to do the work that the City requires. The  City spent less than half a percent – or $9.4 million – with Black-owned businesses  alone. The stark racial disparities – over which the City has direct control – demonstrate deliberate and intentional discrimination against Black- and Latinx-owned businesses on the  part of the City, according to the complaint. 

Complainants outline how the findings of the disparity study constitute compelling evidence of  discrimination, with Black and Latinx business owners confirming the many ways in which the  City’s “old boys’ network” unfairly excludes them from contracting opportunities:  

As the study’s rigorous statistical analysis demonstrates, Black- and Latinx-owned businesses are ready, willing, and able to perform the type of work that the City needs, but the Walsh Administration simply did not contract with them.  

According to the disparity study, Black-owned businesses were unfairly denied over $70 million in contracting opportunities over the five-year study period. That is more than $70 million that could have gone to Black-owned businesses to help close the opportunity and wealth  gaps in historically disadvantaged communities. 

“The study reveals what BECMA members and community leaders have been saying for  decades: The City of Boston does not value Black businesses or the Black community,” said  Segun Idowu, President and CEO of BECMA, the lead complainant in the case. “Mayor Martin  J. Walsh and his administration have failed to deliver fair and equitable procurement for Black owned businesses, as well as for other minority-owned businesses. Bold leadership is required  to immediately correct this systemic problem.” 

“The intentional concentration of contract awards with favored white-owned businesses  exacerbates and compounds contracting disparities along racial and ethnic lines that have long persisted in Boston,” says Rosario Ubiera-Minaya, Executive Director of Amplify Latinx,  another complainant. “This harm poses a real economic cost to our Black and Latino  communities, and the City must act immediately to correct these inequities.” 

The Complaint explains that the gross inequities confirmed by the disparity study amply demonstrate that a race-conscious procurement program is long overdue and must be implemented with urgency to cure the deep injustices embedded in Boston’s public contracting.

The complaint calls for immediate federal intervention and oversight to compel the City to enact race-conscious measures to break down the discriminatory barriers to equitable contracting opportunities. The complaint also calls for the creation of a community-driven remediation process based on the needs identified by the small business communities injured and harmed by the City.

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