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The State of Minority- and Women- Owned ... - Cleveland.com

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Anecdotal Evidence <strong>of</strong> Disparities in the City <strong>of</strong> Clevel<strong>and</strong>’s Market Area<br />

[To reduce the barrier to bonding, the City should say] we’re going to accept your bid,<br />

but before you can perform this job you got to h<strong>and</strong> us a performance bond.… Now I<br />

have the [award]. I go to a bonding <strong>com</strong>pany, the bonding <strong>com</strong>pany’s going to check me<br />

out. If they’re not going to give me the bond I can’t do the job. So all it does is fall to the<br />

next person.<br />

Our Mayor made it where $500,000 <strong>and</strong> under you don’t need a performance bond. It’s<br />

those kind <strong>of</strong> initiatives that we need.<br />

That Clevel<strong>and</strong> requires bonding on contracts beyond construction projects was noted by several<br />

firm owners as a special <strong>and</strong> unnecessary barrier.<br />

<strong>The</strong> City <strong>of</strong> Clevel<strong>and</strong> requires a bid bond, a performance bond that you need just to<br />

submit the bid [for <strong>com</strong>modities]. And like this gentleman said, if you had it when it<br />

came time to perform it there’d be no problem because then you would have the contract.<br />

<strong>The</strong> <strong>State</strong> doesn’t do that. It, it just boggles my mind how the City would do it but the<br />

<strong>State</strong> doesn’t do it.<br />

D. Conclusion<br />

<strong>The</strong> anecdotal interview information strongly suggests that M/WBEs across many industries<br />

continue to suffer discriminatory barriers to full <strong>and</strong> fair access to the City <strong>of</strong> Clevel<strong>and</strong>’s prime<br />

contracts <strong>and</strong> associated subcontracts <strong>and</strong> private sector opportunities. This evidence includes the<br />

continued existence <strong>of</strong> discriminatory attitudes <strong>and</strong> perceptions <strong>of</strong> minority <strong>and</strong> women<br />

in<strong>com</strong>petence; exclusion from industry <strong>and</strong> information networks; barriers to obtaining public<br />

sector contracts; barriers to obtaining work as prime vendors; <strong>and</strong> barriers to obtaining surety<br />

bonding. <strong>The</strong>se results are the type <strong>of</strong> anecdotal evidence that, in conjunction with statistical<br />

evidence, the courts have found to be highly probative <strong>of</strong> whether the City would be a passive<br />

participant in a discriminatory market area without affirmative interventions <strong>and</strong> whether race-<br />

<strong>and</strong> gender-conscious remedies are necessary to address that discrimination.<br />

NERA Economic Consulting 288

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