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Minority-owned businesses, advocates press DAS to open state fueling contract after disparity study
Summary
Multiple public witnesses urged the committee and DAS to act on a recent disparity study and open state fueling contracts to competitive bids; witnesses described low historic contracting rates for minority- and women-owned firms and urged a budget note or market review.
Several witnesses testified during the DAS budget hearing that the agency should take action to improve contracting opportunities for minority- and women-owned businesses following a recent disparity study.
Kiana (Kiana) Floyd, president of Fleet Fuels LLC, said her Portland-based, minority-owned renewable diesel company has delivered more than 2 million gallons since 2021 and would like the opportunity to compete for state fueling business. Floyd told the committee the existing state fueling contracts expired February 2023 and include two-year renewal options for up to six additional years, allowing the state to effectively hold 10-year agreements unless an RFP is issued. She urged DAS to put the contracts out to bid and said DAS will complete a market analysis in the coming weeks.
“Opening the state's fueling contracts to more competition can only help save state money,” Floyd said, and she asked the committee to encourage DAS to run an RFP this fall or include a budget note on the issue.
Chip Shields, who identified himself as a member of Fleet Fuels and a former legislator, associated himself with Floyd’s testimony and commended DAS staff for conducting the disparity study and for transparency in the process. He urged the committee to support steps that would increase competition for state contracts.
Justice Rajee, director of Reimagine Oregon at the Urban League of Portland, also supported DAS’s budget while urging attention to the disparity study’s findings. Rajee quoted the study’s conclusion that disparities “indicate inferences of discrimination against relevant people of color and women owned business groups in the Oregon marketplace, and as a part of the state's contracting and procurement.” Rajee said the study showed only a small share of analyzed state contract dollars went to businesses owned by people of color and women and urged DAS to use contracting opportunities such as the fueling contract to improve outcomes.
Witnesses referenced differing figures from the disparity study: one speaker cited “less than 1%” and another cited about 10% of analyzed contracting dollars going to businesses owned by people of color and women. The committee did not reconcile those figures during the hearing; members were advised DAS would present the disparity study and Office of Procurement Equity material at a later hearing on March 19.
No formal committee action was taken; witnesses were encouraged to submit written testimony (48 hours post-hearing) and staff said DAS will complete a market analysis in the near term.
