The Minnesota Metropolitan Council's recent meeting highlighted a significant disparity in contract allocations to minority and women-owned businesses (MBEs and WBEs) over the past seven years. A comprehensive analysis revealed that from July 2016 to June 2023, only 9% of contract dollars were awarded to MBEs and WBEs, a slight increase from 6% in the previous disparity study conducted in 2017.

The breakdown showed that minority-owned businesses received approximately $52 million, or 5% of the total contract dollars, while white women-owned firms garnered about $38 million, equating to 3.3%. Notably, 63% of all contract dollars went to small businesses, but only 4% were allocated to firms certified under the Metropolitan Council's Underutilized Business Program (MCUF).

The council's analysis indicated that if there were a level playing field, an estimated 13% of contract dollars would have gone to MBEs and WBEs. However, the actual allocation fell significantly short, resulting in a disparity index of 68, indicating a substantial gap in utilization compared to availability. This disparity was particularly pronounced among Black, Hispanic, and American Indian-owned firms.

The council's findings underscore the ongoing challenges faced by minority and women-owned businesses in securing contracts, prompting discussions on strategies to improve equity in future allocations. The next steps will involve targeted efforts to address these disparities and enhance opportunities for underrepresented firms in the contracting process.