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

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Anecdotal Evidence of Disparities in the City of Cleveland’s Market Area [To reduce the barrier to bonding, the City should say] we’re going to accept your bid, but before you can perform this job you got to hand us a performance bond.… Now I have the [award]. I go to a bonding company, the bonding company’s going to check me 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 next person. Our Mayor made it where $500,000 and under you don’t need a performance bond. It’s those kind of initiatives that we need. That Cleveland requires bonding on contracts beyond construction projects was noted by several firm owners as a special and unnecessary barrier. The City of Cleveland requires a bid bond, a performance bond that you need just to submit the bid [for commodities]. And like this gentleman said, if you had it when it came time to perform it there’d be no problem because then you would have the contract. The State doesn’t do that. It, it just boggles my mind how the City would do it but the State doesn’t do it. D. Conclusion The anecdotal interview information strongly suggests that M/WBEs across many industries continue to suffer discriminatory barriers to full and fair access to the City of Cleveland’s prime contracts and associated subcontracts and private sector opportunities. This evidence includes the continued existence of discriminatory attitudes and perceptions of minority and women incompetence; exclusion from industry and information networks; barriers to obtaining public sector contracts; barriers to obtaining work as prime vendors; and barriers to obtaining surety bonding. These results are the type of anecdotal evidence that, in conjunction with statistical evidence, the courts have found to be highly probative of whether the City would be a passive participant in a discriminatory market area without affirmative interventions and whether race- and gender-conscious remedies are necessary to address that discrimination. NERA Economic Consulting 288
The City of Cleveland’s Cleveland Small Business, Minority Business Enterprise, and Female Business Enterprise Program: Overview and Feedback Interviews IX. The City of Cleveland’s Cleveland Small Business, Minority Business Enterprise, and Female Business Enterprise Program: Overview and Feedback Interviews This Chapter describes the City of Cleveland’s Cleveland Small Business (CSB), Minority Business Enterprise (MBE), and Female Business Enterprise (FBE) Program, followed by a summary of business owner experiences with these policies and procedures. A. MBE, FBE, and CSB Program Overview 1. Subcontractor Disparity Analysis Study The City obtained a Subcontractor Disparity Analysis in 2007 that examined contracts with overall values between $10,000 (the City’s informal limit) and $500,000. The report did not find disparities for subcontractors in any industry for any racial or ethnic group or nonminority females. Based on these results, the City amended its race- and gender-conscious program and adopted the current program, discussed below. 2. CSB, MBE, and FBE Program Elements The new programs were adopted in 2008. The ordinance provide for preferences for CSBs, MBEs, and FBEs, including contract goals, bid discounts and evaluation credits. a. Program Eligibility A business can be certified as a MBE, a FBE, and a CSB. All businesses certified by the City were “grandfathered” into the new programs for 18 months. Thereafter, they are required to be re-certified by application. i. Minority Business Enterprise Eligibility To be eligible for certification as a MBE, a Business Enterprise must be owned, operated, and controlled by one or more Minority Persons who have at least 51 percent ownership. The Minority Person(s) must have operational and managerial Control, interest in capital, and earnings commensurate with the percentage of ownership. To qualify as a Minority Business Enterprise, the enterprise shall be located and doing business in the Cleveland Contracting Market. ii. Female Business Enterprise Eligibility To be eligible for certification as a FBE, a Business Enterprise must be owned, operated, and controlled by one or more Females who have at least 51 percent ownership. The one or more Females must have operational and managerial Control, interest in capital, and earnings commensurate with the percentage of Female ownership. To qualify as a Female Business NERA Economic Consulting 289
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The State of Minority- and Women- O
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About the Project Team NERA Economi
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Notice This report sets forth the i
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Contents C. Race and Gender Dispari
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List of Tables Table 4.5. Services
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List of Tables Table 5.14. Disparit
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List of Tables Table 7.10. M/WBE Ut
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List of Tables Table 8.10. Percent
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List of Tables Table AC.32. Industr
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C. Defining the Relevant Markets Ex
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Table A. Overall Current Availabili
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Executive Summary disparity analysi
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Executive Summary • A greater sha
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Executive Summary Table C. Utilizat
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Contracting Category/ M/WBE Type Ex
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Executive Summary contract performa
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I. Introduction Introduction The Ci
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Legal Standards for Government Affi
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B. Preparing the Master Contract/Su
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Defining the Relevant Markets Table
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• Franklin County, OH (Columbus)
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NAICS Industry Group NAICS Descript
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Defining the Relevant Markets In AE
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NAICS Industry Group 8112 5412 5324
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NAICS Industry Group Source: See Ta
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NAICS Industry Group 4233 NAICS Des
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M/WBE Availability in the City of C
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NAICS Industry Group M/WBE Availabi
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Detailed Industry Group Navigationa
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Table 4.24. Detailed M/WBE Availabi
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Detailed Industry Group M/WBE Avail
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Detailed Industry Group General Med
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Detailed Industry Group Machine Sho
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Detailed Industry Group Products Me
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Table 4.28. Detailed DBE Availabili
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Table 4.30. Detailed DBE Availabili
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Market-Based Disparities in Busines
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VI. Statistical Disparities in Capi
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B. Theoretical Framework and Review
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Statistical Disparities in Capital
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D. Qualitative Evidence Statistical
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Table 6.7. Types of Problems Facing
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Table 6.9. Determinants of Loan Den
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Table 6.10. Alternative Models of L
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Table 6.13. Models of Interest Rate
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1. Qualitative Evidence Statistical
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) Prejudice against women. c) Preju
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Table 6.19. Determinants of Loan De
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Table 6.21. Models of Interest Rate
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2. Differences in Loan Denial Rates
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Table 6.26. Determinants of Loan De
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Table 6.28. Models of Credit Card U
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Table 6.31. Determinants of Interes
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Page 256 and 257: B. M/WBE Utilization M/WBE Utilizat
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Page 308 and 309: The City of Cleveland’s Cleveland
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Page 334 and 335: References Fairlie, R. W. (1999),
Page 336 and 337: References Ladd, H. F. (1998), “E
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Appendix C. Detailed Utilization, A
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NERA Economic Consulting Barton Cre
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