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C. Disparity Analysis
M/WBE Utilization and Disparity in City of Cleveland Contracting Activity
1. Results by Major Procurement Category
The City of Cleveland has a longstanding policy encouraging the inclusion of M/WBEs in its
contracting and procurement activities. Given this, the City’s own data may not show evidence
of underutilization, even if such underutilization exists in the private sector of Cleveland’s
market area. Instead, the City’s own data, in our view, is most useful for examining the
effectiveness of its M/WBE policies during the study period. On the other hand, if actual
M/WBE utilization on City contracts and subcontracts turns out to be significantly less than
M/WBE availability in certain contracting categories, then the City’s data will provide evidence
of adverse disparities as well.
In this section, we compare our estimates of M/WBE utilization in the City of Cleveland’s
contracting and subcontracting activities to our estimates of M/WBE availability in the City’s
geographic and product market area. Tables 7.21 and 7.22 present the results of this comparison
using dollars awarded and dollars paid, respectively, as the metric of utilization. These two tables
include all funding sources, both federal and local. Tables 7.23 and 7.24 are restricted to
federally-assisted contracts, and Tables 7.25 and 7.26 are restricted to locally-funded contracts.
Tables 7.27 and 7.28 are restricted to major procurements, and Tables 7.29 and 7.30 are
restricted to minor procurements.
In each table, the figures in the utilization column include both prime contract and subcontract
dollars and were derived as described above in this chapter. The figures in the availability
column were derived as described in Chapter IV. The disparity ratio, which appears in the final
column of Tables 7.21 through 7.30, is derived by dividing utilization by availability and then
multiplying the result by 100. A disparity ratio below 100 indicates that M/WBEs are not
participating in Cleveland’s contracting and subcontracting activities at a level consistent with
their estimated availability in the City’s market area. A disparity ratio of 80 or lower is
considered to be large, or substantively, significant. A disparity ratio is said to be statistically
significant if it is unlikely to be caused by chance alone. In the tables below, statistical
significance is indicated by one or more asterisks to the right of the disparity ratio.
In Construction, large and statistically significant disparities were observed in most cases for
firms owned by nonminority females and in some cases for firms owned by Asians/Pacific
Islanders, Native Americans, and M/WBEs as a group. On federally-assisted contracts subject to
the USDOT DBE Program, disparities were also observed for firms owned by African
Americans, Native Americans, and DBEs as a group.
In AE-CRS, large and statistically significant disparities were observed in most cases for firms
owned by nonminority females and Native Americans. Large disparities were also observed in
many cases for firms owned by Hispanics, and in some cases for firms owned by African
Americans and Asians/Pacific Islanders.
In Services, large and statistically significant disparities were observed in most cases for firms
owned by nonminority females and by Native Americans. Large and statistically significant
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