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

Contents
Contents
List of Tables ................................................................................................................................. iii
Executive Summary .........................................................................................................................1
A. Introduction ..........................................................................................................................1
B. Legal Standards for Local Government Race- and Gender-Based Affirmative Action
Contracting Programs ..........................................................................................................1
C. Defining the Relevant Markets ............................................................................................2
D. M/WBE Availability in the City of Cleveland’s Market Area ............................................2
E. Statistical Disparities in Minority and Female Business Formation and Business
Owner Earnings ...................................................................................................................4
F. Statistical Disparities in Credit/Capital Markets ..................................................................7
G. M/WBE Public Sector Utilization vs. Availability in the City of Cleveland’s
Contracting and Procurement Markets, FY 2006–2010 ......................................................8
H. Anecdotal Evidence ...........................................................................................................13
I. City of Cleveland’s CSB, MBE, and FBE Program: Overview and Feedback
Interviews ...........................................................................................................................13
J. Conclusion .........................................................................................................................15
I. Introduction .............................................................................................................................16
A. Study Outline .....................................................................................................................16
II. Legal Standards for Government Affirmative Action Contracting Programs .......................18
A. General Overview of Strict Scrutiny ..................................................................................18
B. Strict Scrutiny as Applied to Federal Enactments .............................................................24
C. Gender-Conscious Programs .............................................................................................31
D. Burdens of Production and Proof .......................................................................................31
E. Establishing a “Strong Basis in Evidence” for a Race-Conscious Contracting Program
for Locally-Funded Contracts ............................................................................................32
F. Narrowly Tailoring a Race-Conscious Local Program ......................................................45
G. Table of Authorities ...........................................................................................................54
III. Defining the Relevant Markets .............................................................................................57
A. Introduction ........................................................................................................................57
B. Preparing the Master Contract/Subcontract Database .......................................................58
C. Geographic Market Definition for Contracting and Procurement .....................................68
D. Product Market Definition for Contracting and Procurement ...........................................71
IV. M/WBE Availability in the City of Cleveland’s Market Area .............................................82
A. Introduction ........................................................................................................................82
B. Identifying Business Establishments in the Relevant Markets ..........................................83
C. Estimates of M/WBE and DBE Availability by Detailed Race, Gender, and Industry ...128
V. Market-Based Disparities in Business Formation and Business Owner Earnings ...............147
A. Introduction ......................................................................................................................147
B. Race and Gender Disparities in Earnings ........................................................................151
NERA Economic Consulting i