Approach
The County’s study included the analysis of contract and purchasing data to determine if disparities existed between the availability of diverse business enterprises and the utilization of such businesses as contractors or subcontractors on County contracts for goods, services, and construction.
The study included quantitative data collected from the County expenditures and qualitative data provided by business owners and area trade associations and business organizations.
Qualitative data is information that business owners provide about their actual experiences doing business, or trying to do business, with the County, the County’s prime contractors/vendors, and in the private sector. Qualitative data helps explain and lend credence to statistical findings of the Disparity Study. It also helps identify whether barriers, such as disparate treatment, bid requirements, prevent firms from winning contracts.
We encouraged all business owners to provide information about their experiences doing business, or attempting to do business, with the County of Santa Clara.
Minority-, women-, disabled veteran-, and LGBT-owned businesses were strongly encouraged to participate, collectively, diverse business enterprises (DIV-BE).
The disparity study evaluated procurement and contracting by the County and was conducted within California’s legal framework as established by court rulings.
It was the County’s intent to collect baseline data identifying any disparities between the availability of diverse business enterprises and the utilization of diverse business enterprises as contractors and subcontractors on County contracts.
The County endeavored to determine the factors that led to any identified disparities, including, but not limited to, existing policies, processes, technologies, and programs. The Study further served to augment the County’s outreach efforts with strategic approaches to remedy any identified disparities.
Relevant race-based measures
In 1989, the Supreme Court ruled in City of Richmond v. J.A. Croson Co that the City’s Minority Business Utilization Plan was unconstitutional under the Equal Protection Clause. This landmark case established that state and local race-based programs must uphold “strict scrutiny,” which recognized the following:
- The governmental entity must show that racial classification is narrowly tailored to achieve a compelling governmental interest.
- A race-based remedial program may be created to rectify the effects of identified, systemic, past racial discrimination within its jurisdiction.
Further, in 1996 the voters of the State of California approved Proposition 209, which amended the California Constitution to prohibit discrimination against, as well as preferential treatment to, on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, and public contracting.
Disparity study, executive summary and appendices
MGT Consulting has prepared the Santa Clara County draft disparity study report.
What factors are considered in determining whether disparity exists?
Disparity is calculated in the form of an index. The disparity index is a ratio of the percentage of utilization and the percentage of availability of DIV-BEs. If the disparity index is 100, the utilization of DIV-BEs is equal with the availability of DIV-BEs in the market area. If the index is less than 80, it indicates that DIV-BEs are significantly underutilized by an agency, based on the availability of DIV-BEs in the market area. An index between 80 and 100 – which is close to full participation – indicates underutilization, though not significant.
Study participants
Business owners of diverse business enterprises and non-diverse business enterprises that do business, or want to do business, with the County are impacted by the policies, procedures and guidelines established. Participation in this Study gives business owners the opportunity to provide first-person accounts of their experiences doing business with the County and/or the County’s prime vendors. Input from the business community may direct the findings and recommendations for future policy changes.
What's next?
The County will review the recommendations provided by MGT to determine what modifications, if any, need to be made to the County’s procurement and contracting program.