INDIANAPOLIS – On Friday, March 18, the Indiana Department of Administration (IDOA) released results from its 2015-16 Disparity Study to the Governor’s Commission on Minority & Women’s Business Enterprises. The year-long study examined the utilization of minority- and women-owned businesses across the state.
“We’re pleased to release the Disparity Study results to the Governor’s Commission on Minority & Women’s Business Enterprises,” said Jessica Robertson, IDOA Commissioner. “These results will allow IDOA to continue our efforts to ensure equal access and opportunity for minority- and women-owned businesses in state contracting.”
The study examined the availability of minority- and women-owned businesses for state contracts and compared those data to the actual utilization of minority- and women-owned businesses in state contracting to determine if any disparities exist. BBC Research & Consulting conducted the study on behalf of the state of Indiana and examined contract data for construction, professional services and goods and supplies from July 1, 2009 – June 30, 2013. State statute requires that a disparity study be completed every five years.
Study participants included the Indiana Department of Administration, Indiana Department of Transportation, Indianapolis Airport Authority, Hoosier Lottery and each of the seven state educational institutions – Ball State University, Indiana State University, Indiana University, Ivy Tech Community College, Purdue University, University of Southern Indiana and Vincennes University.
Key findings from IDOA’s disparity study include:
- The disparity index across combined sectors of construction, professional services and goods and supplies is 93, indicating near parity in the utilization of minority- and women-owned businesses across the state.
- The disparity index for Public Works contracts—on which the state did not enforce the use of MBE/WBE contract goals during the study period—is 37, indicating a substantial disparity between the utilization and availability of minority- and women-owned businesses.
- Four groups exhibited no disparities when considering all contracts together – white women-owned businesses, Asian Pacific American-owned businesses, Hispanic American-owned businesses and Native American-owned businesses.
- Two groups exhibited disparity indices below parity when considering all contracts together – Black American-owned businesses and Subcontinent Asian American-owned businesses.
- All groups except for Subcontinent Asian American-owned businesses exhibited disparity indices below parity on Public Works contracts.
“The results of the state of Indiana Disparity Study are consistent with what we’ve seen across the country,” said Dr. Sameer Bawa, Director at BBC Research & Consulting. “When participation goals are established and monitored for minority- and women-owned businesses, those groups fare much better in contracting and have higher utilization numbers than when goals are absent.”
The Governor’s Commission on Minority & Women’s Business Enterprises will review findings from the report to set participation goals for state contracting for minority- and women-owned businesses.
The public may view the full Disparity Study report on the IDOA’s website at www.in.gov/idoa/mwbe/2985.htm.
The Indiana Department of Administration (IDOA) provides support services to other state agencies, assuring the smooth function of state government. IDOA supports Indiana’s objectives of improving economic growth and attracting new investment. IDOA provides service excellence and support to partner agencies by ensuring effective and efficient management of state resources, while providing transparency and accountability to Hoosiers.