Name of report: Rhode Island State Government Contracting with Minority and Women-Owned Businesses: Disparity Analysis and Predicate Study
Organizational affiliation: Governor and Attorney General of Rhode Island, Brown University
Author: Hilary Silver, Associate Professor of Sociology and Urban Studies, Brown University
Contact Information: Lou Francis, Rhode Island Minority Business Office, One Capitol Hill; Providence, RI; (401) 222-6670
Date: January 1998
Pages: 63 pages; viii.-x., Preface, 1-60, Executive Summary
Content summary
The purpose of this report is to continue to establish grounds for the 1986 Minority Business Enterprise (MBE) law in the state of Rhode Island. The law ensures that government sets aside at least ten percent of contracts for MBEs and allows MBEs a 5% bidding allowance for these contracts. The Supreme court has stated that there needs to be documentation of continuing discrimination in government contracting. The report goes through the legal history surrounding the enactment of the MBE law, gives a detailed explanation of the quantitative data and methods utilized, and an analysis of the findings. An MBE is defined as a business in which 51% is owned and operated daily by African-Americans, Hispanics, Portuguese, Asians, Indians, or women.
Major findings
The main conclusion of the report is that in virtually no industry does the government utilization of minority and women owned businesses approach the amount of firms available. In all major industries, the percentage of women businesses out numbers the percentage of minority businesses by six times to 14 times more. Although minority firms are at least 1.4% of all major industries in Rhode Island, at most they are utilized 0.4% in every major industry. In Providence, during the fiscal years 90-91, 91-92, and 92-93, MBEs received 2%, 3% and 5% of government contracts, respectively. The report also details the hindrances to MBEs including, lack of savings and capital(due to low wage jobs), discrimination in minority hiring, discrimination in entering and relying on unions and rejection in terms of loans.
Related Issues
This report suffers from a need to be updated. Most of the data was collected from reports prior to 1998. Also, there is a need to keep up to date information on discrimination in government contracting, if the 1986 law is to be upheld. Another important factor in government contracting and discrimination towards MBEs, is previous connections and networks. This was briefly addressed in the report. Furthermore, government contracting in Providence needs further investigation due to corruption under the Cianci administration. Despite the author’s remarks that government contracting with MBEs increased with Cianci, there was small growth and MBEs were still underutilized overall.
How to access this report: Lou Francis, Rhode Island Minority Business Office, One Capitol Hill; Providence, RI; (401) 222-6670