North Austin News

The City of Austin's Small and Minority Business Resources Department (SMBR) has announced an increase in the Personal Net Worth (PNW) requirement for its Minority-Owned and Woman-Owned Business Enterprise (MBE/WBE) Procurement Program. Effective January 1, 2024, the new PNW requirement is set at $2.21 million, up from the previous requirement of $1.82 million, representing a 21% increase.

This increase comes as a response to the recommendations submitted to the City Council by the Inclusive Procurement Working Group (IPWG). The IPWG, which was convened in 2020, was tasked with assessing programmatic and administrative issues related to the MBE/WBE Procurement Program.

Edward Camps, director of SMBR, expressed confidence in the change, stating, "Our new PNW methodology keeps pace with rising costs in the greater Austin area, helping ensure the program remains attractive and viable for new and existing minority and woman-owned firms. We are confident this change will make our program an even bigger success and continue to open doors of opportunity for the businesses who need it most."

To determine the new PNW threshold, SMBR engaged local economist John Hockenyos, President of TXP, Inc., who reviewed SMBR's PNW methodology and updated and refined the methodology used to calculate the personal wealth definition of economically disadvantaged. Based on Hockenyos' findings, SMBR will reset the PNW threshold annually and publish the results in January of each calendar year, starting in 2024.

The goal of the Small and Minority Business Resources Department (SMBR) is to promote access and equity on City of Austin contracts, providing economic opportunity to small, minority-owned, women-owned, and disadvantaged businesses.

For more information on the new Personal Net Worth requirement and the Minority-Owned and Woman-Owned Business Enterprise Procurement Program, please visit www.austintexas.gov/smbr.