From August 4, St. Louis will not issue new city construction contracts that are not emergency under its minority and female -owned business goals (MBE/WBE): to cite new federal rules that could retain or eliminate funding for cities offered by these programs, according to Mayor Face Spencer.
“The federal agencies have announced that they will end and also reduce grant funds granted to local governments that operate these programs,” he said in a public letter on August 1.
Stating that the city cannot afford to lose federal relief funds, especially when it works to recover from a tornado of May 16, which damaged 5,000 buildings, Spencer said that “unlike other communities, these changes threaten the federal funding that the city actively struggles to ensure.”
The objectives of St. Louis for city construction projects are 25% participation in MBES and 5% WBES participation.
Spencer said that policies and programs designed to overcome systemic discrimination have benefited the city and that St. Louis will quickly move to present a new MBE and WBE legislation that adapts to the change of federal landscape.
Todd Weaver, General Manager of Tw Builders & Affiliates, a general design/construction contractor at MBE, said he is disappointed by the city’s action.
“As a minority business company certified with its proud St. Louis, we are deeply concerned about the city’s decision to stop new M/WBE construction contracts,” Weaver said in a statement. “This action diminishes decades of work to create a more inclusive, competitive and equitable construction industry, and sends a disheartening message to several companies and the communities we serve.”
According to Weaver, “Although this decision does not currently affect our private sector work, the broader implications are clear. The advances that our region has made to expand access, create jobs and encourage several talent pipes in construction, a field that still struggles with representation.”
The potential loss of federal funding “would disrupt promising development, public security and infrastructure, as well as community services,” said Spencer.
Weaver emphasized that his company “will continue to create roads for less represented companies and individuals, regardless of changing public terms. We actively collaborate with private developers and national clients who share this commitment.”
