ST. PAUL, Minn. — Consultants from Keene Independent presented results from the 2025 Minnesota disparity study at the Metropolitan Council’s July 9 meeting, reporting continued disparities between the share of council contract dollars awarded to minority‑ and women‑owned firms and the firms’ estimated availability.

Key findings presented by Blanca Montero and David King included: from July 2016–June 2023 roughly 9 percent of Metropolitan Council contract dollars went to minority‑ and women‑owned businesses combined; weighted availability analysis estimated approximately 13 percent would have gone to those firms if a level playing field existed; the combined disparity index (utilization ÷ availability × 100) for MBE/WBE was 68 (a disparity index below 80 is commonly treated as a substantial disparity in disparity‑study practice). Keene reported roughly $52 million (about 5 percent) of council contract dollars went to minority‑owned firms and about $38 million (about 3 percent) to white women‑owned firms in the study period. The consultants also reported that 63 percent of contract dollars overall went to small businesses as defined by SBA standards, while about 4 percent went to firms certified for the council’s MCUB program.

Why it matters: The disparity study informs whether race‑ or gender‑conscious remedial tools remain legally justified and what additional measures could increase equitable participation in public contracting. Consultants emphasized that disparity studies supply the factual record courts examine if a remedial procurement program is challenged.

Recommendations presented: Keene Independent and its subconsultants recommended a package of actions, summarized by staff and refined for council consideration: strengthen and standardize metrics (including tracking noncertified firms); broaden certification pathways to recognize additional disadvantaged groups; develop a Metropolitan Council small‑business program (size‑based tools that are race‑neutral where appropriate); increase use of statutory and policy tools where justified; provide dedicated funding for supportive services (technical assistance, bonding/banking access, capacity building); and pursue prompt payment reforms including examining project bank accounts for larger projects to speed subcontractor payments.

What was said: Blanca Montero said Keene’s work compared utilization and availability by contract type, size and industry. David King emphasized that the study does not supersede local small‑business efforts but supports targeted remedial actions where substantial disparities exist. Ashanti Payne of the council’s Office of Equity and Equal Opportunity summarized five near‑term implementation steps staff proposes, including a spend‑plan policy, development of a small business program and pilot steps on prompt payment. Council members from both management and transportation committees commented on the importance of leadership, capacity building, outreach and learning from Hennepin County’s recent actions.

Public input and next steps: Consultants said draft final reports are available for public comment on the study website and staff expect final reports by the end of the month after reviewing public input. Staff and consultants emphasized follow‑up implementation work will proceed through management committee, legal review and periodic council updates. No council action was taken on the study itself during the meeting; it was presented as an information item.

Quoted from the meeting:

- “We were able to collect contract awarded and spent on Met Council contracts from July 2016 to June 2023,” Blanca Montero said when describing the study period and data collection.

- “Given the availability in the market … that weighted availability figure is different because of your mix of purchases,” David King said, explaining why availability benchmarks vary by agency.

Implementation considerations: Staff and consultants noted several operational issues that would affect impact — certification portal consolidation (moving to the b2gNow portal used by participating entities), staffing and resources to operate remedial tools, and potential legislative or policy changes for tools such as sheltered markets or higher thresholds where authorized by statute. Prompt payment and change‑order timing were highlighted by multiple small business speakers and council members as urgent concerns for subcontractors’ cash flow.