Delaware Study Shows Disparities in State Contracts for DBE firms

A new study has found that firms owned by women received less than 3% of total state contracting dollars between 2015 to 2020, while during that same period, firms owned by ethnic minorities received less than 7%.

Source : ContractorNews.com

May 2, 2022

Author : Patty Allen

A new study looking at contract disparities in Delaware has been released by MGT Consulting Group

The disparity study found that firms owned by women received less than 3% of total state contracting dollars between 2015 to 2020, while during that same period firms owned by ethnic minorities received less than 7%.

To conduct the study group analyzed contract data from Delaware's Office of Management and Budget, Department of Health and Social Services, and Department of Correction.

Senate Majority Leader Bryan Townsend told Delaware Public Media that, "there is a disparity between how much the state spends on contracts to companies that are owned by minorities or women, and the prevalence of those businesses in the community," said Townsend. "So we don't spend anywhere near as much on a percentage basis as the businesses that are actually out there."

He added that the state needs to “Ensure that there is sufficient staffing and focus in the Office of Supplier Diversity in the state. They really need to be involved in the front end of contracting to ensure that contracts can achieve more diversity of suppliers.”

The report did provide some recommendations on how to improve the racial and gender disparities in public works contracts:

-project-specific diversity goals,

-overall diversity goals

-a vendor rotation system for smaller contracts

-improve  record retention and data collection

-adopt a narrowly tailored program to promote supplier diversity

-expand outreach and training for federally certified disadvantaged businesses

Category : Disparity Studies State Government Procurement

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