Chicago Construction News staff writer
The City of Chicago has awarded four inaugural Lead Service Line Replacement Small Business Initiative (SBI) contracts totaling more than $1.67 million to three local construction companies owned by minorities and women.
The contracts, part of the City’s SBI program, aim to provide small local firms with experience and capacity to compete for larger projects in Chicago’s multi-year lead service line replacement program.
“Small and diverse businesses are the heartbeat of our local economy, ensuring their success creates generational impact in our communities,” Mayor Brandon Johnson said. “These recent contract awards demonstrate that those efforts are bearing fruit. I’m honored to partner with and support these local enterprises as we continue our mission to guarantee every Chicagoan access to safe drinking water.”
Since 2023, the city has hosted listening sessions with minority contractors to gather feedback on water project opportunities and procurement processes. Sessions included representatives from the Department of Procurement Services, Department of Water Management, the Mayor’s Office, and organizations including the African American Contractors Association, Black Contractors United, and the Hispanic American Construction Industry Association.
Randy Conner, Commissioner of the Department of Water Management, said the initiative is a model for inclusive collaboration. “I look forward to continuing the expansion of inclusive opportunities so that businesses from diverse communities can participate in the largest infrastructure projects in Chicago’s history,” he said.
The city made several program adjustments to improve small business access:
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Insurance: Base insurance requirements were adjusted to be equitable and attainable.
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Bonding: Performance and payment bond requirements were reduced from 100% to 33⅓% of the total base bid.
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Scope Adjustments: Work scopes were divided to create additional contract opportunities.
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Program Expansion: Future projects were repackaged for small and mid-sized firms through the SBI and Mid-Size Business Initiative (MBI).
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NAICS Codes: Eligible North American Industry Classification System codes were expanded to allow more specialty firms to participate as subcontractors.
Chief Procurement Officer Sharla Roberts said the City remains committed to a “fair and competitive procurement process” and is proud of efforts to expand equitable access to contracts.
Additional water and sewer projects are expected to be advertised in the first quarter of 2026. Current opportunities are listed on the DPS website at Chicago.gov/DPS, and information on lead service line replacement programs is available at a
