According to a study funded by the Harris County Commissioners Court, the county gives out disproportionately few contracts to minority- and women-owned businesses, with Black-owned businesses receiving the harshest treatment. The conclusions might assist the county in creating a legal foundation for taking action to end the discrimination.
According to the study, which was carried out by the government consulting firm Colette Holt & Associates, fewer minority- and woman-owned businesses were chosen for county contracts than there were firms available to carry out the kinds of work the county was seeking. It was discovered that although white male-owned contracting businesses made up 72% of the market, they were awarded 91% of the contracts in terms of dollar value. In contrast, Black-owned businesses only made up 0.5 percent of contracts and represented 8.4 percent of the market.
While Black-owned businesses only account for less than 1% of government and procurement contracts awarded in Harris County, despite Houston being one of the most diverse cities in the country, according to a report by the Greater Houston Black Chamber. The first African American civic group in the city demanded that the problem be resolved right away. “The health of businesses and the communities they serve are inextricably linked, which is why it is crucial that Black businesses have access to the same opportunities as other groups.”
All minorities and women were underrepresented in contracts compared to the percentage of businesses they own, with Black businesses receiving the greatest disproportionately low number of contracts. Asian contracting firms made up 3% of the market but only 0.6 % of contracts, Native American firms made up 0.4 % of the market but only 0.1 % of contracts, Hispanic firms made up 11% of the market but only 5% of contracts, and firms run by white women made up 6% of the market but only 3% of contracts.
According to Colette Holt & Associates’ report, “many minority and women business owners reported that they continue to encounter discriminatory attitudes, stereotypes, and negative perceptions of their qualifications, professionalism, and capabilities.” “It is presumed that (such business owners) are less qualified and that the value of their work is lower.”
In order to easily track the sector, race, gender, dollar amount, and procurement method of each contract and subcontract—something the county does not currently—the firm advised Harris County to set up a system that could make data on contracts and subcontracts.
It also suggested setting up a department called the Office of Economic Opportunity and Equity to manage outreach to small businesses and minority- and women-owned businesses as well as to unbundle large, complex contracts into smaller projects with lower dollar amounts to make it simpler for smaller companies to obtain contracts.
