Creating More Opportunities for Small Businesses to “Do Business” with the City

Keen Independent Research, LLC (Keen Independent) conducted a two-phase Disparity Study for the City of Columbia to analyze if there are disparities in the utilization of minority and woman-owned firms in City contracts as well as to examine conditions in the local marketplace.

Government programs that provide preferences or requirements regarding use of minority or woman-owned businesses can be challenged in court.  The disparity study is based on relevant case law, including legal decisions in the Fourth Circuit Court of Appeals.

Keen Independent Research is a national economic consulting firm.  David Keen, Principal, has led more than 150 disparity studies for similar agencies and has served as an expert witness successfully defending contract equity programs in court.  The study team also included Columbia-based consulting firms DESA, Inc. and Comprehensive Business Consultants, the survey firm Customer Research International (CRI) and the law firm Holland & Knight.

The 2022 Disparity Study started in May 2021 with release of a draft report in July 2022.  The City provided opportunities for public input from the outset.  Keen Independent reached out to thousands of businesses, trade association representatives and others through surveys, in-depth interviews and other research.  More than 190 individuals provided input through these methods.

Keen Independent concluded the City of Columbia’s contract assistance programs, including the CDBE and MPP programs, have increased MBE and WBE participation in City contracts.  The City exceeded its aspirational M/WBE participation goal of 15 percent, based on the utilization analysis provided in the study.  Even with the City’s success in achieving its aspirational participation goal, disparities remain for African American and woman-owned businesses in City contracts.

Some of the recommendations to the City Of Columbia are listed below:
* Refine CDBE certification criteria and pursue joint certification with others in the region.
* Refine and expand the CDBE program.
* Modify and extend the Mentor Protégé Program to new types of contracts.
* Further encourage use of disadvantaged companies for purchases under $100,000.
* Take other measures that specifically assist small businesses bidding on City procurements.

MORE INFORMATION:
2022 City of Columbia Disparity Study

2006 City of Columbia Disparity Study