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Disparity study finds underutilization of minority- and women-owned firms; consultants recommend moderate MWBE program
Summary
An independent disparity study found that minority- and women-owned firms received about 3.23.5% of procurement dollars and were significantly underutilized in prime construction, A/E and professional services. Consultants recommended a legally defensible set of measures including outreach, capacity-building and aspirational goals.
Consultants from MGT of America presented the results of a disparity study of the city and school procurement records and found statistically significant underutilization of minority- and women-owned business enterprises across several contracting categories.
Joan Gardner Hire summarized the findings: “We found that the city has spent, about 3.5% of its total procurement dollars with minority and women businesses.” The consultants observed larger utilization on smaller contracts and high underutilization in prime construction and subcontracting, and they performed regression and private-sector analyses that supported the statistical results. They concluded the city now has a legally defensible basis to adopt a moderate program to promote MWBE utilization and offered recommendations including outreach, training, small-business loans and better subcontractor reporting.
Council members asked technical questions about how percentages were computed, market-area definitions, and whether the city could require prime contractors to report subcontractor lists; consultants said the study gives the city a defensible tool and that capacity-building across the region is essential. The council accepted the briefing and staff said they would return with policy options and implementation steps.
