Disparity study finds significant underutilization of minority-owned firms in Richmond contracting

The Richmond City Finance Committee heard a presentation from MGT Consulting on a disparity study showing minority- and woman-owned firms (NDE/MBE) were substantially underutilized by the city during fiscal years 2017–2021.

The study found NDE firms received 3.43% of total dollars spent by the city during the period while NDE firms represented about 17% of firms available in the defined regional marketplace. MGT said Hispanic-owned firms accounted for 1.77% of city spending and African American–owned firms 1.43% during the study window.

MGT project director Bernetta Mitchell said the team used quantitative and qualitative methods, assigning NAICS codes to city procurements, surveying and interviewing businesses, and testing disparity indices. ‘‘If that ratio is less than 80 … that is substantial underutilization,’’ Mitchell said, explaining the disparity-index threshold the study…