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

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Executive Summary<br />

While M/WBEs’ experiences <strong>of</strong>ten differed markedly from non-M/WBEs, one area <strong>of</strong> agreement<br />

was the need to thoroughly eradicate the use <strong>of</strong> “front” firms or “passthrough” firms to create the<br />

appearance <strong>of</strong> participation.<br />

• Waivers <strong>of</strong> Goals<br />

In response to these issues, several participants stated that they had been able to obtain waivers<br />

<strong>of</strong> goals based upon having made good faith efforts to meet them.<br />

• Contract Performance Monitoring <strong>and</strong> Enforcement<br />

Finally, concerns were raised about how the City monitors <strong>and</strong> enforces <strong>com</strong>pliance with M/FBE<br />

requirements. M/WBEs <strong>and</strong> even some non-M/WBEs were concerned about the strength <strong>of</strong> the<br />

post-award monitoring process. Several certified firms reported that while they had been listed<br />

on the bid documents, they were substituted later or did not receive full payment.<br />

• Mentor-Protégé Initiatives<br />

<strong>The</strong>re was significant support among general contractors for mentor-protégé initiatives.<br />

• CSB Set-asides<br />

Many participants, both M/FBEs <strong>and</strong> non-certified firm owners, supported the concept <strong>of</strong> setting<br />

aside some smaller contracts for bidding solely by CSBs.<br />

J. Conclusion<br />

As summarized above, <strong>and</strong> based on the detailed findings below, we conclude that there is strong<br />

evidence <strong>of</strong> large, adverse, <strong>and</strong> frequently statistically significant disparities between minority<br />

<strong>and</strong> female participation in business enterprise activity in the City <strong>of</strong> Clevel<strong>and</strong>’s relevant market<br />

area <strong>and</strong> the actual current availability <strong>of</strong> those businesses. We further conclude that these<br />

disparities cannot be explained solely, or even mostly, by differences between M/WBE <strong>and</strong> non-<br />

M/WBE business populations in factors untainted by discrimination, <strong>and</strong> that these differences<br />

therefore give rise to a strong inference <strong>of</strong> the presence <strong>of</strong> discrimination.<br />

NERA Economic Consulting 15

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