Disparity Studies

• 2017 Minnesota Joint Disparity Study Hennepin County

  March 01, 2018

  Published by Keen Independent Research

  In this study, the authors examined Minnesota’s Hennepin County, particularly the race and gender-neutral Small Business Enterprise (SBE) Program that has been operating since 1996. Keen Independent examined County procurements from July 1, 2011 through June 30, 2016. Of the county’s $2.98 billion total procurement for this time period, 3,857 procurements (including subcontracts) that totaled $1.4 billion were included in the disparity analysis. The County when studied had an overall goal of 25 percent SBE utilization for construction and for professional services and a 20 percent goal for commodities and other biddable services. The study found that while the SBE program has made progress in encouraging the utilization of minority and women-owned firms, these firms still receive only slightly more than 50% of the County procurement dollars they might be expected to win under parity.

• Alaska Department of Transportation & Public Facilities Disadvantaged Business Enterprise Study, Final Report

  December 01, 2020

  Published by Alaska Department of Transportation & Public Facilities Civil Rights Office

  The Alaska DOT&PF conducted a disparity study in 2021 through a contractor who conducted surveys and interviews with a random sample of 565 business owners and representatives of firms having done business with, or attempted to do business with, the DOT&PF. The study indicated that 59.55% of M/W/DBE respondents reported they were “seldom or never” solicited for work when contracts did not have a set DBE utilization goal. Additionally, 6.5% of M/W/DBE respondents said that there was unequal or unfair treatment within the private sector. Another 4.49% of respondents said that they had either experienced or been witness to situations where M/W/DBE firms were only consulted to satisfy DOT&PF contract requirements. The same percentage (4.49%) of respondents also stated that prime contractors had double standards for performance of M/W/DBEs. As study results demonstrated, there are both quantitative and anecdotal reasons to address the issue of disparate or discriminatory conditions in the marketplace. For this reason the 2021 Disparity Study recommended that DOT&PF should continue to consider the use of aspirational subcontractor project goals for selected groups in regions where there is very low DBE subcontractor utilization.

• Availability and Disparity Study, California Department of Transportation, Final Report

  August 01, 2012

  Published by BBC Research & Consulting

  California’s Department of Transportation conducted a disparity study that provided information to help implement the Federal Disadvantaged Business Enterprise (DBE) Program for its FHWA‐funded contracts. Based on the results, about one‐third of firms identified as available prime contractors and subcontractors on Caltrans construction. The report stated that there was quantitative evidence of disparities for minority and women‐owned firms as a whole, and for specific groups, concerning issues (i.e., entry and advancement, business ownership, access to capital, bonding and insurance, success of business). Qualitative information indicated some evidence of discrimination affecting the local marketplace, although some minority and female business owners interviewed in this and other recent disparity studies did not think they had been affected by any race or gender discrimination. Minority and women‐owned businesses considered together showed substantial disparities on both FHWA‐funded contracts (disparity index of 74) and state‐funded contracts (disparity index of 46). Disparity analysis results by individual racial/ethnic and gender groups indicated that most individual groups showed substantial disparities on FHWA‐funded contracts and procurements. The exceptions were non‐Hispanic white women‐owned businesses (disparity index of 121) and Native American‐owned businesses (disparity index of 83). Minority and women‐owned businesses also faced substantial difficulties accessing business credit.

• California Availability and Disparity Study Report 2021

  August 01, 2021

  Published by California Department of Transportation, Prepared by BBC Research & Consulting

  The study team conducted an analysis of regulations, case law, and other information to guide the methodology for the disparity study, which included a review of legal requirements related to minority and woman‐owned business programs (M/WBE), and specifically, the Federal DBE Program. This included the quantitative analyses of outcomes for minorities, women, and M/WBEs throughout California, the collection of anecdotal evidence about potential barriers individuals and businesses face, the estimation of the percentage of Caltrans transportation‐related contract and procurement dollars M/WBEs were available to perform, analysis of the dollars Caltrans and subrecipient local agencies awarded to M/WBEs on transportation‐related construction and professional services contracts and procurements, and the examination of whether there were any disparities between the participation and availability of M/WBEs on transportation‐related construction and professional services contracts. All minority groups showed substantial disparities in all Caltrans and sub-recipient local agency contracts considered together: Asian Pacific American‐owned businesses (disparity index of 60), Black American‐owned businesses (disparity index of 50), Hispanic American‐ owned businesses (disparity index of 55), Native American‐owned businesses (disparity Index of 73), and Subcontinent Asian American‐owned businesses (disparity index of 70).

• Chicago Transit Authority Disparity Study

  January 01, 2019

  Published by Colette Holt & Associates

  The Chicago Transit Authority (CTA) performed a study in conformance with constitutional standards and best practices for DBE programs to determine its utilization of Disadvantaged, Minority, and Women-Owned Business Enterprises (collectively “DBEs” or “D/M/ WBEs”); the availability of DBEs in its market area; any disparities in its wider economy between the business formation rates and receipts of DBEs and those of White male-owned firms. This was used to evaluate whether the use of race-conscious measures is supported by the results of this analysis. The study collected anecdotal data about barriers to full and fair opportunities on the basis of race/ethnicity or gender and evaluated CTA’s DBE programs.

• City of Boston 2020 Disparity Study

  February 01, 2021

  Published by BBC Research & Consulting

  This report commissioned by the City of Boston provided research on the utilization of minority and women-owned businesses in the City on contracts and procurements, evaluation of the Small Local Business Enterprise Program’s (SLBE) effectiveness, legal analysis of the SLBE Program, and barriers in the local marketplace that might affect their ability to compete for City contracts and procurements. BBC’s availability calculations were based on prime contracts and subcontracts that the City awarded between July 1, 2014 through June 30, 2019. To implement the SLBE program, the City uses various race and gender-neutral measures. In the context of contracting and procurement, race and gender-neutral measures are measures that are designed to encourage the participation of small businesses in a government organization’s contract, regardless of the race/ethnicity or gender of the businesses’ owners. In contrast, race and gender-conscious measures are measures that are specifically designed to encourage the participation of minority and women-owned businesses in government contracting. The City does not currently use any race or gender-conscious measures as part of the SLBE Program. For all contracts and procurements minority and woman-owned businesses considered together exhibited a disparity index of 65 for contracts and procurements that the City awarded during the study period, indicating substantial underutilization.

• City of New Orleans Disparity Study

  April 01, 2018

  Published by Keen Independent Research

  This report commissioned by the City of New Orleans found that there is not a level playing field for minority and women-owned businesses in City contracts, and recommended ways the City can increase or strengthen procurement opportunities for small minority and women-owned businesses. Some of the findings included that the overall MBE/WBE utilization on City contracts roughly matched what would be expected based on the availability analysis, and there were disparities in utilization in City contracts for some MBE/WBE groups for some types of work, including Asian American- and Hispanic-American-owned firms, overall, and African American-owned construction firms; and there were substantial disparities between utilization and availability for each minority group and for white women-owned firms in the subcontracting realm. The recommendations included the need for the City to assist minority and women-owned companies in its procurement, the consideration of adding stronger measures to its State and Local Disadvantaged Business Enterprise (SLDBE) program, including programs focused on vendors, prime contractors, and consultants; and maintain defensibility of the program through close monitoring.

• City of New York Disparity Study

  May 01, 2018

  Published by MGT Consulting Group

  A disparity analysis of the utilization of minority and women-owned business enterprises (M/WBEs) in City of New York’s contracting, as compared to the availability of M/WBEs in the relevant market, was conducted. The review of purchasing policies, practices, and procedures was for the scope of the study period covering July 1, 2006 through June 30, 2015. The report concluded that disparities do exist for M/WBE firms operating in the private sector within the City’s market area. Thus, the City may have a compelling interest to continue its current M/WBE program to avoid becoming a passive participant to discrimination. The study’s disparity analysis summary highlighted disparities existing for all racial and ethnic groups in the five identified major industry categories.

• City of Oakland 2017 Race and Gender Disparity Study

  September 01, 2019

  Published by Mason Tillman Associates, Ltd.

  The objective of the City of Oakland’s disparity study was to determine if available Minority and Woman-owned Business Enterprises (M/WBE) were underutilized on the City of Oakland’s prime contracts during the July 1, 2011, to June 30, 2016 study period. Based on the data, African American contractors won 17 or 3.21% of the construction contracts during the study period. The top earners, “Non-minority Males,” won 366 or 69.06% of the contracts. African American firms received 44 or 2.92% of the professional services prime contracts, while “non-minority males' ' received 1,069 or 70.84% of the professional services contracts. Minority-owned businesses account for 19.77% of construction, professional services, services, and goods and commodities prime contractors. The data showed that non-minority males are afforded a preference in the award of City contracts. There is evidence of racial and gender discrimination, given the size of the contracts awarded by the City and the evidence of the size of contracts awarded to minority and women-owned businesses. Minority-owned businesses account for 20.65% of construction and professional services subcontractors. Woman-owned businesses account for 13.51%, and non-minority male-owned businesses account for 72.29%. The report identified areas for assistance moving forward.

• Colorado Disparity Study, Final Report

  November 01, 2020

  Published by Keen Independent Research

  The state of Colorado seeks to ensure that there is a level playing field for historically disadvantaged businesses to compete for state contracts. The Colorado Disparity Study found that there is quantitative and qualitative information suggesting that there is not a level playing field for minority (MBE) and women-owned businesses (WBE)in the Colorado construction, construction-related professional services, other professional services, goods, other general services, and brokerage and investment industries. This includes evidence of unequal opportunities to enter and advance as employees within certain industries; start and operate businesses; and obtain financing and bonding to start, operate and expand their businesses. Business outcomes also differed for MBE/WBEs compared with majority-owned companies, including disparities in total business revenues.

• Commonwealth of Virginia Disparity Study

  January 01, 2021

  Published by BBC Research & Consulting

  This disparity study was conducted on contracts and procurements that the Commonwealth of Virginia awarded from July 1, 2014 through June 30, 2019 in the areas of construction, services, and goods. The study assessed whether woman and minority-owned (WAM) businesses face any barriers as part of the Commonwealth’s contracting processes, particularly for subcontractor plan contracts and no subcontractor plan contracts. Subcontract plans did not appear to improve outcomes for minority and women-owned businesses on Commonwealth contracts and procurements. Minority and women-owned businesses considered together exhibited substantial disparities on both subcontract plan contracts (disparity index of 40) and no subcontract plan contracts (disparity index of 46). Disparity analysis results indicated substantial disparities for all relevant racial/ethnic and gender groups on prime contracts that the Commonwealth awarded during the study period. Results from the disparity study indicated that there are many minority and women-owned businesses in Virginia but most of them have relatively low capacities for Commonwealth work. The Commonwealth should consider various technical assistance, business development, mentor-protégé, and joint venture programs to help businesses build the capacity required to compete for relatively large Commonwealth and HEI contracts and procurements.

• Connecticut Disparity Study: Phase 1

  August 01, 2013

  Published by Connecticut Academy of Science and Engineering for the Connecticut General Assembly and the Government Administration and Elections Commission

  The Connecticut Disparity Study was meant to provide an analysis of existing statistical data concerning the state’s current set-aside program, to determine whether its current form achieves the goal of facilitating the participation in state contracts of small contractors and minority business enterprises. Phase 1 of the study was on Connecticut’s set-aside program review and analysis, legal issues, and stakeholder anecdotal information/analysis. The primary conclusion indicated the state’s current program was intended to achieve this objective (i.e., eliminate discrimination in state contracting), but it was not designed as a narrowly tailored program and does not meet the strict scrutiny judicial standard for justifying a raced-based program.