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Sponsor seeks higher MBE/WBE targets and mandatory outreach; advocates press capacity building, contractors urge caution
Summary
Reps. introduced bills increasing minority/women‑owned business contracting goals and requiring DOA to give prime bidders a list of certified MBEs/WBEs; supporters called for increased transparency and capacity funding while builders and contractors warned of capacity constraints and urged phased steps.
The committee took testimony on House bills 5683 and 5684, companion measures aimed at increasing minority and women‑owned business (MBE/WBE) participation in state contracting and strengthening the Department of Administration’s obligation to make certified vendor lists available to prospective prime contractors.
Sponsor testimony cited the 2021 disparity study commissioned by the state, which the sponsor said showed that minority‑owned firms—particularly Black and Hispanic firms—receive a disproportionately small share of contracts designated for MBEs/WBEs. The sponsor said the bills would increase the overall MBE target from 15% to 20% and include a defined split so that at least 10% be awarded to women‑owned businesses and 10% to minority‑owned businesses. House bill 5684 would require DOA to provide a list of certified MBEs and WBEs to each prospective contractor and to document and publish waivers and remedial plans when agencies fail to meet goals.
Supporters, including Lisa Ranklin of the Rhode Island Black Business Association and Build Rhode Island leadership, argued transparency and easy access to certified lists would improve outreach and prime‑contractor recruitment of diverse subcontractors. Ranklin emphasized capacity is a central issue: while Rhode Island has many registered small businesses, far fewer are employer‑based firms with the scale needed for larger construction or service contracts, and she urged parallel investment in capacity building and access to capital.
Construction industry representatives and prime contractors warned that raising targets without matching capacity supports risks ballooning compliance waivers and could hurt project timelines and costs. Build Rhode Island said it supports codifying DOA’s obligation to provide a certified‑vendor list but urged a phased approach to raising percentage goals and recommended continued investment in bonding, prompt‑payment reforms and networking to expand the supplier base.
A representative of the Developmental Disabilities Council asked that certified Disability Business Enterprises be included in outreach and goals; the sponsor indicated openness to further discussion. Committee members asked for additional data from the disparity study on sectoral availability and for proposals to fund capacity programs. No final vote was taken; the sponsor said he would continue to work with DOA and stakeholders on implementation details and capacity investments.
