Disparity study finds substantial underutilization of minority- and women-owned firms in Brooklyn Park procurement

Consultants from Keane Independent Research presented results of a joint Minnesota disparity study at a Brooklyn Park City Council special work session, saying the city shows substantial underutilization of minority- and women-owned businesses in its procurement.

Dr. Joseph Broad, a senior consultant with Keane Independent Research, told the council that across the analyzed contracts the city’s utilization figures were low: “about 1% of city dollars is going to minority-owned businesses and about 4% was going to white woman-owned businesses.” He said the study used city procurement data from fiscal years 2017 through 2023 and a large availability survey of businesses in Minnesota and western Wisconsin.

The disparity study compares utilization (the share of dollars the city awarded to firms in demographic groups) with weighted availability (the share of firms in the relevant market able to do the same work). Haley Adams, a consultant with Keane, explained the analysis method and the disparity index: “Anything below an index score of 80 is considered a substantial disparity, and this has been held by courts.” For Brooklyn Park the study reported a combined MBE/WBE disparity index of 31, with an index of 19 for MBEs alone and 39 for WBEs alone.

Why it matters: the consultants framed the study as a…