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Maryland SMWBE contracting report shows mixed findings

The Maryland Governor's Office of Small, Minority & Women Business Affairs (or GOSBA) has released its annual report for fiscal year 2023, showing a slight rise in utilization of the businesses under GOSBA's auspices during that period, as well as an increase in the total number of certified businesses.

Specifically, the utilization rate for Minority Business Enterprises (covering businesses owned by minorities as well as women, per the terms of that program) which increased modestly, from 17.27 percent in fiscal year 2022 to to 17.85 percent in fiscal year 2023. However, the absolute dollar amount going to MBEs fell due to total state spending also falling during that period (from $9.4 billion in FY 2022 to $6.8 billion in FY 2023). The Veteran-Owned Small Business Enterprise (VSBE) Program showed a decline in utilization, with a participation of 0.75 percent, down from 0.94 percent in the previous fiscal year. The Small Business Reserve (SBR) Program showed a modest increase in utilization, up to 2.7 percent from 2.3 percent.

The report also showed that the Minority Business Enterprise Program had a 12 percent increase in the number of certified businesses, the Veteran-Owned Small Business Enterprise Program had an 18 percent increase in the same metric, and the Small Business Reserve Program had a 12 percent increase in the same metric during the 2023 fiscal year.

Alongside the release of the GOSBA report, Governor Moore announced that a new Minority Business Enterprise Ombudsman position had been created within GOSBA, and Nichelle Johnson had been appointed to fill it. The ombudsman will be responsible for working with primes and MBEs to resolve contract performance issues, developing policies relating to program guidance, and overseeing data relating to documented nonperformance by primes.

The GOSBA report notes that only 9 out of the 43 relevant state government agencies attained the statewide MBE participation goal of 29 percent. The appointment of the ombudsman is part of the State's attempt to close the gap and reach the 29 percent goal.

"[W]e must continue to enhance opportunities for small, minority, women, and veteran owned businesses," said Governor Moore in a message attached to the GOSBA annual report.

Read the GOSBA report at https://gomdsmallbiz.maryland.gov/Reports/FY2023_ANNUAL%20REPORT_GOSBA.pdf.

Read the press release from the Governor's Office on the MBE Ombudsman position at https://governor.maryland.gov/news/press/pages/governor-moore-announces-nichelle-johnson-as-maryland%e2%80%99s-first-minority-business-enterprise-ombudsman.aspx.