Minority-owned businesses more likely to get passed over for Arlington projects
Women- and minority-owned businesses are disproportionately passed over for Arlington city contracts, according to a report by a third-party consulting firm.
The study compiled by Colette Holt and Associates found that Black- and Native American-owned firms are most likely to be passed over for highway construction, engineering and landscape services. Businesses owned by white women and Asians were more likely than those owned by Black people and Native Americans to be used, according to statistics, but Colette Holt said only a small amount of firms were awarded multiple awards.
“That doesn’t mean other people have had the same opportunity,” she told City Council Tuesday.
The 152-page report, which looked at contracts awarded between 2014 and 2018, doesn’t necessarily indicate a conscious exclusion of minority businesses, Holt said.
“It just means that there’s discrimination in the market and without some type of affirmative intervention on your part you are likely to be a passive participant in that discrimination,” she said.
Mayor Jeff Williams said city staff will review the report and facilitate “robust conversations” among City Council on soliciting more minority business participation.
“I’m looking forward to being very progressive here as we move forward on this issue,” he said.
Many of the 34 minority business owners interviewed for the study said they still face implicit biases when seeking out contract work. Small business owners may not be able to build the networks that more well-known businesses may have with other owners and city staff. Groups also cited a sense of apathy from the city in educating owners about making bids more competitive and reaching out to them about new opportunities.
Meanwhile, businesses owned by white men and multiple people told Holt’s firm they could not find minority-owned businesses able to handle the work. Additionally, some said, the city seldom hits its goal of awarding 25% of contract dollars to minority groups.
Recommendations
There is no clear-cut solution for increasing the amount of contracts and funds to minority businesses, Holt said. However, her firm suggested Arlington officials dedicate a city department and educational resources to shore up the disparities.
“I think the things I’ve seen that work best are some support programs and helping folks to kind of get their feet wet before they jump into a government pond,” Holt said.
The firm recommended Arlington leaders collect more data on contracts, break up larger projects to make them more manageable for small businesses, and hiring a five-person office of business diversity that answers to City Manager Trey Yelverton.
Yelverton and council members spent half an hour during their afternoon council meeting discussing the barriers they’ve noticed in the city. The city’s Unity Council also discussed minority and women-owned businesses’ under-representation in contract awards during its August meeting as it explores disparities residents and businesses may face.
Andrew Piel, District 4 council member, suggested linking business owners with accountants and attorneys to help with the contract bidding process.
“Some companies just don’t bid at all because they’re intimidated by the documents, they don’t know where they can push back on the city and get concessions out of the contracting documents,” he said.
The city council does not vote on items during its afternoon work session, but Williams said city staff would prepare to further discuss possible solutions.
“We’ll have some very robust discussions on trying to move things ahead,” he said.
