Title
Small Business Community Platform Contract - Request to Amend Contract with CO+HOOTS LLC (Ordinance S-49533)
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 $280,000 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 pandemic recovery efforts. On Nov. 4, 2020, City Council authorized a six-month contract with CO+HOOTS LLC to initiate this program.
The Community and Economic Development Department and CO+HOOTS LLC launched PHXbizConnect by HUUB in March 2021. PHXbizConnect is a social media platform where business owners connect, 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 boost the resilience of Phoenix small businesses. Businesses do not pay to participate in PHXbizConnect.
In July 2021, City Council authorized a one-year $295,000 contract extension that included a free technical assistance consulting program to provide one-on-one consulting from business advisors. In May 2022, City Council authorized an additional one-year $265,500 contract extension. As of January 2023, more than 770 Phoenix business owners are registered PHXbizConnect members. Eighty-three percent of members have fewer than 10 employees, and many are restaurants, retail shops and professional services providers. The platform also reaches under-represented communities, as 52 percent of members identify as woman-owned and 45 percent identify as People of Color.
Procurement Information
CO+HOOTS LLC was selected through the alternative competition process based on its experience creating a similar program for the City of Mesa.
Contract Term
If approved, the proposed extension would begin in July 2023 with a term of one year.
Financial Impact
Funding to extend the Small Business Community Platform via CO+HOOTS LLC for one year will not exceed $280,000. If this extension is approved, the aggregate value of this contract will not exceed $940,500. 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 allocated ARPA funding 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 COVID. On Nov. 4, 2020, City Council authorized staff to enter in a contract with CO+HOOTS LLC. City Council authorized subsequent contract extensions on May 25 and July 1, 2022.
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.