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Portsmouth M/WBEs experience disparity in contracting

A study commissioned by the City of Portsmouth has found that minority- and women-owned businesses (M/WBEs) are not being used on city contracts as frequently as would be expected, given their availability in the area.

The study, which examined city contracts awarded between 2009 and 2013, found that Black-owned businesses were awarded only 1.73 percent of the $26.5 million the city spent on construction contracts. Even less, just 0.04 percent, was awarded to non-minority WBEs. Moreover, of the almost $1 million spent by the city during the study period on architecture and engineering contracts, none went to M/WBEs. M/WBEs fared better on professional services contracts, however.

As a result of the study, city officials say they will make an effort to unbundle contracts so that M/WBEs, which are often small businesses, are capable of bidding on them as prime contractors.

The city may also follow the Portsmouth School Board's lead and implement a M/WBE program that would require that prime contractors perform a good faith effort to include M/WBEs as subcontractors and/or suppliers on city-funded contracts. If this program is implement, contractors that fail to make a good faith effort may not be eligible to be awarded a project.