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Washington State Disparity Study Frequently Asked Questions 1. Why is building business diversity in state contracting important?
Small businesses are the backbone of the Washington economy. The vast majority of Washington employers are small private firms, and many are minority-, women-, and veteran-owned. Small businesses provide jobs to about 51 percent of the state's private workforce - more than 1.3 million workers. 1 Strengthening opportunities for small and diverse businesses strengthens Washington's economy, supports our communities, improves the quality of life for everyone and increases competition and innovation while lowering costs. 2. What is a disparity study? A disparity study is an analysis that examines the number of specified individuals or groups who are available to participate in certain opportunities, such as obtaining contracts to provide goods and services, client services and public works for the state, and those who are actually selected. A disparity study also helps to determine whether the environment is fair and equitable to all parties seeking to participate in those opportunities. 3. Why did the state conduct a disparity study? Washington state government is undertaking the study to find out how we have been doing when it comes to including minority-, women-, and veteran-owned businesses in state contracts and contracting opportunities. Its purpose is to examine whether there were disparities between the contracting dollars the state awarded to minority-, women-, and veteran-owned business and the amount they might be expected to receive based on the number of such businesses available to perform the work among the total pool of eligible contractors. A disparity study will provide a factual foundation that Washington can use to help improve state agencies’ procurement processes to increase fair and equitable outcomes. The study will also help clarify what tools state agencies can employ to ensure that our contracting practices are fair and nondiscriminatory. 4. What is the difference between race and gender neutral 2 measures vs. race and gender conscious 3 measures? Race and gender neutral measures are activities or programs that benefit and assist all small businesses equally, including certified firms. These measures include things like aspirational goals, training, outreach and technical assistance. Race and gender conscious measures, such as the use of required contract goals, are those targeted measures and programs that focus on specifically on increasing diverse business participation. ____________________________________________ 1 U.S. Small Business Administration 2018 Washington State Small Business Economic Profile 2 The phrase “race and gender neutral measures/goals” may be synonymous with “voluntary” or “aspirational.” 3 The phrase “race and gender conscious measures/goals” may be synonymous with “mandatory” or “enforceable.”
5. Will the state be able to implement race and gender conscious mandatory goals as a result of the disparity Study?
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