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Study finds statistically significant disparities in county contracting; committee advances expedited MFD extension
Summary
A contractor-reported disparity study covering July 2015–June 2021 found statistically significant underutilization of minority, female and disabled-owned firms; the committee recommended advancing an expedited bill to extend the county's MFD program and discussed steps on enforcement and procurement automation.
The Government Operations and Fiscal Policy Committee heard a briefing from MGT Consulting, which analyzed $3.5 billion in Montgomery County procurement between July 1, 2015 and June 30, 2021 and concluded there is statistically significant underutilization of minority- and female-owned firms. "The overall spend that we analyzed was $3,500,000,000," Vernetta Mitchell of MGT said during the presentation, summarizing the data set underpinning the report.
MGT presented availability and utilization metrics and said disparities were statistically significant across several ownership categories; the consultant identified barriers raised by firms in qualitative interviews—informal networks, limited access to capital, and practices the presentation labeled "price discrimination" (bid-shopping) as recurring problems. The contractor recommended a mix of race- and gender-neutral measures and narrowly tailored race/gender-conscious remedies, improved data collection, expanded outreach, and periodic review. MGT proposed aspirational countywide goals of 22% for construction, 25% for professional services, 24% for other services and 10% for goods.
Committee members and procurement staff discussed implementation, enforcement and timing for the next study cycle. Grace Dennell of the Office of Procurement said procurement could adopt the new study goals starting Jan. 1 and described next steps to issue a future RFP earlier so the next disparity study is completed on schedule. The committee concluded its review of the study material and "recommended this move forward to the full council," with an expedited bill (Expedited Bill 23-24) to be considered by the full Council on Dec. 10, the chair said.
