Title
Contract Extension with CO+HOOTS LLC to Continue Small Business Community Platform (Ordinance S-48653)
Description
Request to authorize the City Manager, or his designee, to extend a contract with CO+HOOTS LLC to continue PHXbizConnect, a technology-driven Small Business Community Platform, to support small businesses impacted by and recovering from the COVID-19 pandemic. Further request authorization for the City Controller to disburse all funds related to this item. There is no impact to the General Fund. Funding will not exceed $265,500 and is available through the City’s allocation of the American Rescue Plan Act (ARPA) funding received from the federal government and is under the City's Small Business Workforce Program category.
Report
Summary
In May 2020, City Council approved $100,000 in federal Coronavirus Relief Funds to invest in a small business program to assist Phoenix businesses with their pandemic recovery efforts. On Nov. 4, 2020, City Council authorized a six-month contract with CO+HOOTS LLC to implement this program.
The Community and Economic Development Department (CEDD) and CO+HOOTS LLC launched PHXbizConnect by HUUB in March 2021. PHXbizConnect is a social media platform where business owners connect with like-minded business owners, ask questions, share successes, and find solutions to business related issues. The platform is available in both English and Spanish, streamlines support for small businesses in one central, virtual location and helps to boost the resilience of Phoenix small businesses.
In July 2021, City Council authorized a one-year $295,000 contract extension that included a technical assistance consulting program to provide one on one consulting from business advisors. By April 2022, more than 580 businesses had registered on the platform. Eighty percent of these businesses have fewer than 10 employees; many are restaurants, retail shops and professional services providers. Marketing and sales are the highest need requested for technical assistance. Registered businesses have indicated PHXbizConnect has been vital in helping them navigate through the pandemic, connect to resources, learn new skills, find grants and grow their businesses.
The City's contract with CO+HOOTS LLC is due to expire on July 1, 2022. If approved, the proposed extension would begin in July 2022 and expire in one year. CO+HOOTS LLC will continue to provide reporting and performance metrics to CEDD to track assistance to Phoenix small businesses.
Procurement Information
CO+HOOTS LLC was selected through Alternative Competition based on its experience creating a similar program for the City of Mesa.
Contract Term
If approved, the proposed extension would begin in July 2022 and expire after one year.
Financial Impact
Funding to extend the Small Business Community Platform via CO+HOOTS LLC will not exceed $265,500. There is no impact to the General Fund. Funding is available through the City’s allocation of ARPA funds.
Concurrence/Previous Council Action
At the May 5, 2020 City Council Policy meeting, City Council approved $100,000 to create a tool that would provide small businesses with expertise on key business topics, guidelines to assist with business recovery and on-demand solutions during this unprecedented time. On Nov. 4, 2020, City Council authorized staff to enter in a contract with CO+HOOTS LLC. On July 1, 2021, City Council authorized a contract extension for $295,000 with CO+HOOTS LLC.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.