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Committee launches capacity study as contingency amid legal uncertainty for MWBE programs

Inclusive Economic Development Committee (Shelby County) · January 16, 2025
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Summary

Committee members said a separate capacity study contract has been executed to prepare for potential legal changes affecting MWBE programs; speakers debated whether formal programs are necessary versus leadership-driven contracting choices.

Members discussed that a capacity study has been contracted in parallel with the disparity study to prepare contingency options should federal policy or court rulings alter how MWBE programs operate. Van Turner and others said they are preparing for potential changes from the Supreme Court or executive action while noting Title VI of the Civil Rights Act of 1964 remains a controlling federal law for entities receiving federal funds.

Kim Brown, the county consultant, said a formal MWBE program is not required to do business with minority firms and urged proactive contracting practices. Turner and EOC representative Wilburn cautioned that some formal MWBE programs include preferences that may be affected by legal changes, making a capacity study useful to design race-neutral or locally tailored programs. "You don't have to have MWBE programs to do business with minority firms," Kim Brown said, adding that capacity-building is a practical parallel track.

The committee asked staff to coordinate capacity-study details and to include subcommittees in shaping practical next steps; Turner said the team will be prepared to respond further at the Feb. 20 meeting.

Provenance: topicintro SEG 1107; topfinish SEG 1218