Charles County Disparity Study
In 2020, the Charles County Economic Department launched a disparity study to identify any disparities in the awarding of Charles County Government contracts and to increase vendor opportunities for minority and women-owned businesses. The Charles County Board of Commissioners approved funding for this study. Griffin and Strong, a law and public policy consulting firm, initiated the disparity study and completed it in 2021. The study analyzed county contracts and subcontracts for fiscal year 2015 through fiscal year 2019 and focused on the construction, architectural, and engineering industries.
What is a DISPArity Study?
A Disparity Study determines whether a government entity, either in the past or currently, engages in exclusionary practices in the solicitation and award of contracts to minority, womenâowned, and disadvantaged business enterprises (MWDBEs). The Commissioners wanted to determine if there was a disparity between the availability of firms and the utilization of those firms in the market area. The study analyzed county contracts offered during the fiscal years 2015-2019 in four industry categories — construction, architectural and engineering, other services, and goods.
The purpose of the study
- Necessitated in part by the 1989 U.S. Supreme Court’s decision in the case of City of Richmond v. J.A. Croson. The court decision imposed legal requirements on jurisdictions to establish a “compelling interest” to support the establishment of a minority and women business program. The results of this study determined that a compelling interest exists for the continuation of the Charles County Minority Business Enterprise (MBE) program.
- To look at the way Charles County Government procures goods and services and determine if the participation of minority and women-owned firms is what should be expected given their availability in the County’s marketplace.
- To perform a comprehensive analysis of the County’s Minority Business Enterprise Program and make recommendations for steps to enhance the program’s efficiency.
groups included in the disparity study
- Anglo/Caucasian/White American
- Black or African American
- Asian American
- Hispanic or Latino American
- Native American
TECHNICAL APPROACH
- Established data parameters and a work plan
- Conducted a legal review
- Reviewed the county’s procurement policies, procedures, and programs
- Conducted public engagement meetings
- Determined the county’s geographic market areas
- Conducted market area and utilization analyses
- Determined the availability of qualified firms
- Analyzed prime and subcontractor utilization and availability for disparity
- Analyzed disparities in the private sector
- Conducted a survey of business owners
- Collected and analyzed anecdotal information
- Prepared and presented the final report for the study
Findings
The Disparity Study findings demonstrate that Charles County is underutilizing minority and non-minority female-owned businesses in procurements. GSPC found statistically significant underutilization in prime contracts for all MWBE's groups except for Asian American owned firms in construction. Nonminoiryt female owned firms were underutilized , but it was not statistically significant. Non-MWBEs were overutilized. Findings are detailed and specific, revealing “statistical and anecdotal evidence of disparities that are race, ethnicity, and gender specific.” Statistical findings are based on data analyses; anecdotal evidence is from business surveys and interviews. These finding(s) create a basis for Griffin and Strong’s recommendations for measures to remedy the disparity. The recommendations address both the statistical disparities as well as the perceptions in the marketplace.
Compliments
The final report includes positive feedback from vendors:
- No complaints from vendors regarding the County’s bonding and insurance requirements.
- Charles County Government promptly pays vendors.
- Charles County Economic Development Department has a strong Business Development Program that includes initiatives such as Micro loans; small business workshops; and partnering program for small business with the SBA, SBDC, the Southern Maryland Minority Chamber of Commerce, and the Governor’s Office of Small, Minority, & Women Business Affairs.
Recommendations
- Enhance our race-neutral local small business set aside program
- MWBE Contract by contract subcontractor goals with roust good faith efforts
- Annual aspirational goals
- Strengthen contract compliance
- Eliminate the use of on-call contracts
- Outreach improvement
- Forecasting
- Data Reform
Next step: Implementation
Charles County Government staff is developing an implementation plan. Please continue to check back for updates as implementation moves forward.
| RACE | NUMBER | % OF POPULATION |
|---|---|---|
| TOTAL POPULATION | 166,617 | 100.0% |
| Black or African American | 82,035 | 49.2% |
| White | 58,587 | 35.2% |
| Asian | 5,706 | 3.4% |
| American Indian and Alaska Native | 1,236 | 0.7% |
| Native Hawaiian and Other Pacific Islander | 168 | 0.1% |
| Some Other Race | 5,544 | 3.3% |
| Two Or More Races | 13,341 | 8.0% |
Source: Census 2020
| CHARLES COUNTY BUSINESSES WITH PAID EMPLOYEES | EMPLOYER FIRMS | EMPLOYEES | ANNUAL PAYROLL ($1,000) |
|---|---|---|---|
| TOTAL | 2,163 | 29,180 | 1,071,199 |
| Female owned | 401 | 2,531 | 88,166 |
| Black or African American | 187 | 1,244 | 61,437 |
| American Indian and Alaska Native | 26 | 117 | 5,042 |
| Asian | 240 | 1,578 | 31,606 |
| Minority | 522 | 3,180 | 109,326 |
| Veteran | 218 | 1,805 | 82,026 |
Source: Census Annual Business Survey 2017
