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Disparity study finds underutilization of MWBEs in some contracting stages; Miller3 urges forecasting, data upgrades and outreach
Summary
A five-year disparity study presented to council shows minority- and women-owned businesses participate but are underutilized when awards and payments are tallied; consultants recommended improved forecasting, procure-to-pay tracking, outreach, unbundling of work and narrow, tailored race-conscious remedies where statistical underutilization exists.
Consultants from Miller3 presented a disparity study of Durham procurement covering fiscal years 2021–2025 and recommended a package of operational, data and programmatic reforms to increase utilization of minority- and women-owned businesses (MWBEs).
The study found MWBEs bid and participate in formal solicitations but that participation often drops between the bidding and payment stages; Miller3 reported a sizable pipeline gap where MWBE presence falls from roughly 31% at bid stage to around 10% once informal procurements and eventual payments are included. The firm attributed the drop to a mix of decentralized procurement practices, informal purchasing that favors incumbent vendors, limits in post-award visibility and data gaps.
Miller3 urged Durham to strengthen forecasting and vendor outreach, connect solicitations to procure-to-pay systems (the city is implementing a new ERP), unbundle large procurements to increase competition, and build relationship-driven capacity programs such as mentorship and bonding support. The consultants also noted that where statistically significant underutilization appears by race and industry, the city could consider narrowly tailored race-conscious remedies consistent with legal precedents and best practices, subject to council direction.
City staff said they plan to incorporate the study’s recommendations into implementation planning and the ERP procure-to-pay rollout, and to return with proposed performance benchmarks and goal recommendations.
What’s next: Staff and consultants plan to draft an action plan with milestones and accountability, offer recommended goals where disparity analysis supports them, and present timing for system updates tied to the ERP implementation.
