The Good Economist January 2016 | Page 14

Prioritizing equity and inclusion, a sustainable procurement program would yield tremendous social benefits. Sustainable procurement aims to ensure a fair level of social inclusion among City vendors. Philadelphia’s population is diverse, and a sustainable procurement program would make certain that all Philadelphians have a fair chance at doing business with the City. In Fiscal Year 2014, only 13.6 percent of City contracts were awarded to minority, women, and disabled-owned businesses (M/W/DSBE) located within Philadelphia. That same year, the disparity ratio for M/W/DSBE was 0.93. Inclusive of the entire Philadelphia Metropolitan Statistical Area, the disparity ratio compares the utilization of M/W/DSBE on City contracts to availability. An overall ratio of less than 1 means M/W/DSBE utilization is still not in parity with M/W/DSBE availability. These figures indicate room for growth in participation rates among these groups. A sustainable procurement program would better integrate the efforts of the Office of Economic Opportunity with the City’s purchasing process.

Promoting environmental stewardship, a sustainable procurement program would reduce the City’s own environmental impact. Establishing a standard for environmental purchasing, the City would reduce its own environmental impact. And, in reducing its own environmental health risk, the City would set an example for the region that would help maintain healthy communities for future generations of Philadelphians. Asthma is a chronic respiratory condition - management of which requires attention to environmental exposures - that burdens a large segment of Philadelphia’s population, particularly amongst children. A 2012 Philadelphia Merck Childhood Asthma Network study concluded that over 20 percent of Philadelphia children have been diagnosed with asthma, more than double the national average (9 percent).

Recognizing the substantial triple bottom-line benefits, several municipalities across the United States have already implemented environmentally preferable purchasing policies. Those policies have evolved into numerous forms. The City of Cleveland, for example, is the first city in the U.S. to give incentives to suppliers that are reporting on sustainability performance. It allows eligible, sustainable businesses to qualify for a 2 percent bid discount. The City of Seattle establishes a minimum specification with the most environmentally preferable solutions for particular products and also utilizes a scored evaluation criteria allowing additional points for positive environmental products options, corporate practices, and other environmental solutions proposed by the bidder. The District of Columbia developed environmental specification guidance for key product and service areas.

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