The Kansas City Council agreed Thursday to change the rules for its program requiring companies that work for the city to hire women- and minority-owned firms as subcontractors.
The 20-year-old program was established as a response to decades of discrimination.
Changes include a provision that allows large minority firms that win contracts to use their own personnel to satisfy the minority- and women-owned business subcontracting requirement.
The rules also establish a net-worth test that limits eligibility for subcontracts to firms whose owners have a personal net worth that doesn’t exceed $1.32 million.
The changes follow a 2016 study that showed the city’s race-and gender-based contracting programs might be vulnerable to lawsuits because they were not “narrowly tailored.”
Last year, women- and minority-owned firms received an estimated $295 million of subcontracts for city work.
Read more: Kansas City Star