Dear Program Participants and Partners,

The City Council has approved two ordinances affecting the City’s contracting and certification programs.

Ordinance No. 260690 discontinues the City’s Minority and Women’s Business Enterprise Program, directs the City Manager to develop a new business enterprise program and report back within 30 days, and begins the process for a new disparity study to be completed in five years. Ordinance No. 260692 establishes a Certified Small Business Enterprise Program as an interim stop-gap measure while the City works with program participants, prospective applicants, contractors, developers, departments, agencies, and community partners to develop a new, viable, and legally defensible program.

This transition follows the City’s 2026 disparity study, completed in early May 2026, which recommended moving to a race- and gender-neutral small business program. The City has also faced increased legal and policy pressure, including a lawsuit filed by the State of Missouri and other plaintiffs challenging the City’s M/WBE ordinance, policy, and practices, as well as recent federal Executive Orders increasing scrutiny of programs that use race, gender, DEI, DEIA, equity-related, or preference-based criteria in government contracting and federal contractor compliance.

CREO is now seeking feedback on a proposed permanent business enterprise program. The draft proposal, available here, includes several program design concepts that are intended to support firms at different stages of growth. These include proposed LBE participation for larger contracts, LSBE participation for contracts over $400,000, and EBE tools for smaller contracts under $400,000. The draft also includes continued mentor-protégé and joint venture provisions, small business development services, certification appeals, and a proposed appeals board structure. 

Sincerely,

Jaime Guillen, Director