The Virginian-Pilot
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A consultant's report released Friday found "substantial disparity" remains in the awarding of state contracts to minority- and women-owned companies, though Virginia has increased business with such firms.
The study was released on Gov. Timothy M. Kaine's last full day in office. Bob McDonnell will be sworn in at noon today to succeed him.
"There's substantial progress when you look at the percentage growth," said Samuel Hayes III, director of the state's Department of Minority Business Enterprise. "But when you look at the big picture, we've got some work to do, like the governor said."
Gwendolyn Davis, a Portsmouth businesswoman, said the report proves that "severe disparity exists in the system. We look forward to working with Gov.-elect McDonnell to improve a bad situation."
The 254-page report, compiled by MGT of America of Tallahassee, Fla., showed that spending in some categories more than doubled in the past five years but often made up a relatively small share of the total.
For instance, the amount of construction money awarded to prime contractors owned by women or minorities more than doubled, from $12.4 million in 2004 to $28.7 million last year. But as a proportion of the total, it only went from 1.5 percent to 1.9 percent.
The amount going to minority and women subcontractors in construction went from $818,000 in 2004 to $23.2 million in 2009. They accounted for 1.1 percent of the total in 2004 and 14.3 percent last year.
For virtually every ethnic group, such as blacks and Hispanic Americans, and almost every type of business, such as construction and architecture, MGT found that "substantial disparity" exists based on the number of available businesses.
Last year, Hayes' office reported that the overall share of contracts awarded to minority-owned businesses rose from 2.3 percent in 2006 to 5.4 percent in 2009. The numbers, though, are not apples to apples, because the state began including data for subcontractors in 2007.
The consultant's report praised initiatives undertaken during Kaine's tenure, such as keeping closer track of numbers and increasing outreach to minority- and women-owned businesses.
It offered several suggestions for improvements, including more detailed numerical targets and "selective use of vendor rotation... to limit habitual repetitive purchases" from some firms.
Kaine said in a statement: "I'm pleased by the progress we've made in the last several years. I am confident we will build on our successes in the future."
Philip Walzer, (757) 222-3864, phil.walzer@pilotonline.com
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if this were a game
The "Rules of The Game", have always been rules of life, real life. Even when 1 is speaking of actual games, the rules aren't the same for everyone. I know, through personal experience, of what I speak on rules in actual games & in the "Game of Life".
If a coach
never allows a walk-on to get in the game, the coach will never know if that walk-on is a worthy enough player to play regularly or perhaps take a spot as a starter. Since Blacks, Latinos, Native Americans, women & other minority groups have never controlled all the "Rules of the Game", they cannot be practicing reverse discrimination. It's a phrase made popular by some that feel threatened they may have to actually compete with someone other than the "Good Ole Boy" network, in which everything was passed among it's members. Since, due to discrimination, women, ethnic & racial minorities are much less likely to get business loans, regardless of their credit worthiness & excellence of their plans, they're less likely to be business owners. Studies done by several major universities, the federal govt., CBS & other news entities have documented these facts.
If this was a game...
...the rules would be the same for all the players.
...or $50 million
...
Reverse racism and reverse
Reverse racism and reverse sexism are still racism and sexism...
real headline
M.O.B. Identity value: $35 million over 5 years ...from YOU!
Realities...
The fact is that woman and minority owned construction firms large enough to handle many of the large undertakings public agencies manage are few in numbers. For sub-contractors, public agencies do not control that aspect-the contract is with the prime. Until the ranks of large minority owned construction firms increases substantially, public agencies have their hands tied. What will happen is that these agencies will be politically forced to start bidding construction projects in more management intensive methods where the public entity is the prime (it takes all the risk) and its subs out all the individual components (electrical, hvac, plumbing, mechanical, etc) so that smaller firms have a better chance of competing. Now most contracts are design-bid-build or other methods which place much of the risk on the A&E and the prime, not the public entity. A change in methodology like this would require hiring many more fte's for the public body. As for disparity studies-they always find it-no matter what. They are always biased.
It's illegal (or should be)
It's illegal to consider the race and sex of the owner of a company when awarding contracts...or at least it should be. That's the definition of institutional racism and sexism that people have fought so long to eliminate.
Here we go again!
Just in case you rocket scientist out there don't understand the Government bidding process, it is based on a lot more than minority standing. The Government DOES NOT award contracts just because the bidding company may be Asian, African-American or Latin owned. This article is flawed from the ground up and the statistical information reported is not valid.
Wrong color?
When it comes to government contracts being awarded to "minorities" you must keep in mind that it is always not color that is taken into consideration. What they look at is a protected class as defined by the government. I know a few white men who list their wives as officers in the company but have very little to do with the company so they can compete as a minority owned business. Narrow minded thinking with the idea that minority means person of color only tends to re-iterate that we still have a racial divide in this country that will continue to do more harm than good!!!