But are disparity studies the be-all-end-all of fixing the problem of diversity in public sector spending? The short answer is no – all procurement teams should know that disparity studies, while useful, have their limits.

In the rest of this post, we’ll take a look at why disparity studies can be helpful, where they fall short, and what you can do to implement change and increase diversity in your procurement efforts.

What Are Disparity Studies?

Disparity studies are meant to help governments take a deep look at how they are buying and purchasing, and whether or not their procurement process is handled in a fair and equitable way. The data often helps show businesses how they’re excluding minorities, women, and other types of disadvantaged groups like veterans from being able to win government contracts.

Why Are They Needed?

Municipalities need a way to better understand if they lack supplier diversity in their procurement processes so they can address these disparities. It wasn’t until a 1980s Supreme Court case that many local governments began looking for a way to prove there was possible discrimination so they could enact legislation around improving the bias. This is where disparity studies came in.

Historically, many local governments haven’t had a great track record of awarding contracts in a fair manner – most went to white, male-owned businesses. Unfortunately, this trend continues today.

For example, over the last two decades, the value of contracts given to minority-owned businesses in Massachusetts has fallen 24%, equal to $135M per year. In 2020, the City of Boston reported that about 7% of its contracts went to minority- and women-owned businesses; while this was up almost 2% from the previous year, Boston still lagged far behind the supplier diversity of other large cities like New York (19% contractor diversity), Chicago (29%), and Philadelphia (31%). 

Why Don’t These Studies Always Help with Supplier Diversity?

Many U.S. cities and municipalities want more inclusion and equality and are taking steps to conduct disparity studies. So why are we not seeing the impact on supplier diversity after decades of studies?

Often, when local government procurement teams are asked to improve supplier diversity and better procurement results for the community, their ideas are often met with red tape and excessive bureaucracy. Simple improvements require legal approval and are met with the following response, “We’ve never done that before and I don’t know if we can, so let’s hold off for another year.” Before you know it, a year turns into a decade.

Similarly, even if disparity studies come with a list of suggestions for improvement, governments are often unable to implement these ideas effectively because they treat them as a simple checklist. But when a suggestion such as “lengthen your solicitation time from 3 to 5 weeks” is tried, procurement teams often see no change because the problem was never with the length of time – it was that the exact same companies who always see your RFP ads are again the only ones who see it, and no new audiences of diverse business owners are reached.

What Can I Do About It?

Procurement departments are often the first to be blamed for supplier diversity gaps in government spending, but this doesn’t have to be the case. In fact, these teams can accomplish better results in their procurement process with buy-in from higher levels of authority.

With support from upper-level management and other departments, procurement teams can get the attention and resources to achieve more. 

Upper-level management and departments should support the ideas and requested changes coming from procurement teams. After all, they need tools and resources just like the finance department needs payroll and budgeting tools. Cities and towns that have successfully implemented programs that produced real results often have their mayor and state governors supporting the procurement department’s goals and initiatives. For example, Broward County Schools hosts an annual diversity event to encourage different types of suppliers to bid on projects.

Later this summer, we’ll be having a deeper conversation with a key organizer of Broward County Schools’ diversity events to discuss how to get the attention of new suppliers, enable new businesses to bid, and embrace changes in the procurement process. Join us at NIGP 2022 in Boston this summer to be part of the conversation!

The post Why Disparity Studies Aren’t Enough to Improve Supplier Diversity appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

What’s a Supplier Diversity Program?
This is simply the strategy that guides your organization to reach its goal. You’ll want to establish a baseline and find out your current supplier diversity percentage and then plan from there. Create a timeline for incremental increases so that the goals are achievable. For example, in the first quarter of your program set a goal that 5 percent of your projects go to organizations run by underrepresented groups, then increase it by 5 percentage points every quarter so that you’re at 20 percent within the year. Be sure to lay out specific steps that your department or organization can take to reach these goals.

If you already have a Supplier Diversity Program, you’re one step ahead! Have regular reviews to track progress. If your organization is falling short of its goals, take action and adjust the strategy. When things are moving along smoothly, challenge yourself and your team to do more.

How do you know if a supplier is diverse?
A general rule is that if the company is 51 percent owned and operated by a member(s) of an underrepresented group, then they would be considered diverse. There are several certification programs and organizations that can help you identify diverse suppliers, and you could ask for these certifications on your upcoming RFPs. You could also reach out to these organizations to help you better understand supplier diversity certifications. Here are a few you may want to check out: 

8(A) Business Development (BD) Program is offered through the U.S. Small Business Administration (SBA) and aids companies owned and controlled by socially or economically disadvantaged individuals.
Women-Owned Small Business (WOSB) is offered through the SBA and aids companies in industries where women-owned businesses are underrepresented.
Historically Underutilized Business Zone (HUBZone) is offered through the SBA and gives support to small businesses in economically struggling communities.
Veteran-Owned Small Business (VOSB) is offered through the VA and supports veterans with priority bidding, tax relief, and extra resources and training to advance their business prospects.
Disability: IN is a nationally recognized certification program for business enterprises owned by people with disabilities (DOBE®), business enterprises owned by veterans with disabilities (V-DOBE®) and business enterprises owned by veterans disabled during service (SDV-DOBE®).
National LGBT Chamber of Commerce offers a nationally recognized certification to business enterprises owned by members of the LGBT community (Certified LGBTBE®) and aids businesses with corporate and government network connections as well as educational opportunities and skills development.

Does your organization have a Supplier Diversity Program? What will you do to increase vendor diversity?

The post The Best Way to Increase Supplier Diversity appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Diversity classifications can apply to business owners and specific geographic locations, as is the case with the Historically Underutilized Business Zone (HUBZone) program. Offered through the Small Business Administration (SBA), HUBZone supports small business growth in historically underutilized business zones, aiding those small businesses which are in economically struggling communities. As government procurement agents prepare to find vendors to fulfill goals and spending allocated by President Biden’s $2 trillion infrastructure plan, they will likely be looking for vendors who also meet the standards of their supplier diversity programs. 

Supplier diversity programs exist across many government agencies. The goal is to support underrepresented groups, or in this case, areas, by setting a percentage of suppliers that the department wants to hire that have diverse backgrounds or are located in economically struggling communities. For a company to qualify for the HUBZone certification, at least 35 percent of employees must live in an area that has been designated as a HUBZone.

What are some recent changes to the SBA HUBZone program?
As noted on the SBA’s website, there have been some changes to the HUBZone program to make it easier for businesses to qualify and participate. The SBA has committed to a better customer experience by streamlining the application process, providing faster decisions on applications and qualifications, and expanding assistance to help applicants through the process. Additionally, they have added some program features including a “Legacy” HUBZone provision to count long-term HUBZone residents, and strengthening and simplifying the recertification process. Finally, they are looking to include more rural areas and doing their best to create predictability and long-term investments with standardized maps and eligibility guidelines.     

What are the benefits and how do you qualify for the SBA HUBZone program?
The SBA HUBZone program offers those that are certified an opportunity for limited competition for certain contracts as well as preferential consideration throughout a standard bidding process. It also makes the business eligible for set-aside contracts and offers a 10 percent price evaluation for open competition contracts. Qualifications listed on the program webpage include:

• Be a small business 
• Be at least 51 percent owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian Tribe
• Have its main office in a HUBZone 
• Have at least 35 percent of its employees living in a HUBZone

Get ahead and certify now
If you’d like to take advantage of the SBA HUBZone program and get the HUBZone certification included on upcoming infrastructure bids, it’s best to get the process started now. You’ll first need to create a SAM account, and then use the general SBA login system to start the process. You can find a checklist of all the supporting documentation needed for a HUBZone application online, and of course, contact the SBA with any questions you may have.

Is your business in a HUBZone? How will you use the program and certification to help you secure some of the upcoming infrastructure funding? 

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Disability: IN is a nationally recognized certification program for business enterprises owned by people with disabilities (DOBE®), business enterprises owned by veterans with disabilities (V-DOBE®) and business enterprises owned by veterans disabled during service (SDV-DOBE®). This certification is recognized by both the government and private sector, making it particularly appealing and helpful for business owners looking to participate in an organization’s supplier diversity program. 

What are the benefits of Disability: IN?
The goal of Disability: IN is to make working environments more inclusive for employees with disabilities. They work directly with companies and government agencies to reach their mission, and they also provide resources to companies owned by people with disabilities. By becoming a certified DOBE, V-DOBE, or SDV-DOBE, companies will be included in the Supplier Diversity Sourcing HUB, which helps both corporate and government buyers find qualified suppliers that meet their supplier diversity requirements. The organization also hosts a variety of events including their annual conference in the U.S., a global summit, and has affiliate offices across the U.S. for a more personal touch. They offer strategic alliances with other organizations that promote supplier diversity for other underrepresented groups. Disability: IN also provides information and resources, policy advocacy, and a networking and business matchmaking service. 

How do companies qualify?
This is a certification program, so all businesses must apply and qualify to access program benefits and include the Disability: IN status on their upcoming bids. Qualifications listed on their Get Certified page include: 

• DOBE – A business which is 51 percent owned, controlled, operated, and managed by a person(s) with a disability
• V-DOBE – A business which is 51 percent owned, controlled, operated, and managed by a veteran, but disability was not incurred during their time of service
• SDV-DOBE – A business which is 51 percent owned, controlled, operated, and managed by a veteran, who sustained their disability during their time of service
• Must make day-to-day business decisions for the company

Don’t wait to certify
While it may seem like the Infrastructure Bill spend is still a ways off, you’ll want to be ready to go once it’s approved. Companies that feel they qualify for Disability: IN can check out their certification checklist and start the certification process all online. Once approved, DOBEs, V-DOBEs and SDV-DOBEs will be able to include this certification on their upcoming Infrastructure Bill bids to help them stand out and meet agencies’ supplier diversity goals.   

Are you the owner of a business that also has a disability? How could a program like Disability: IN help you secure both fundings from the upcoming Infrastructure funding or even connect with private corporations to get new contracts? 

The post Diversity Classifications: Businesses Owned by People with Disabilities appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

Supplier diversity programs have become popular in many government agencies, with the goal to support underrepresented groups by allocating a percentage of diverse suppliers who the department wants to hire. The National LGBT Chamber of Commerce (NGLCC) offers a nationally recognized certification, Certified LGBT Business Enterprise® (Certified LGBTBE®), which could help businesses owned by members of the LGBT-owned business community secure corporate and government contracts. For a company to qualify for a diversity classification, the general rule is that 51 percent of the company is owned and operated by a member(s) of an underrepresented group. 

Benefits of becoming Certified LGBTBE
As supplier diversity initiatives and the drive to help underrepresented groups succeed grow, there are some clear benefits of becoming certified through the NGLCC. As noted on their website, just some of the benefits include:

• Becoming part of the NGLCC network with both government and corporate partners looking to engage in contracts with LGBT-owned businesses, in addition to the B2B opportunities presented by other certified businesses
• Reporting shows that certified businesses stay in business about twice as long than the average American small business because of resources and opportunities that are presented by the organization
• Inclusion in the searchable database of certified businesses as well as in-person networking opportunities
• Ability to participate in mentorship programs, leadership trainings and scholarship opportunities

How do you qualify?
This is a certification program, so all businesses must apply and qualify to become a Certified LGBT Business Enterprise.  Qualifications listed on the NGLCC website include: 

• Be at least 51 percent owned, operated, managed and controlled by an LGBT person or persons who are either U.S. citizens or lawful permanent residents 
• Exercise independence from any non-LGBT business enterprise
• Have its headquarters in the U.S.
• Have been formed as a legal entity in the U.S.

The organization also offers a Transgender & Gender Non-Conforming (TGNC) Task Force as well as a Communities of Color Initiative (CoCi) that could be incredibly helpful to advancing supplier diversity for these groups.

Take the time now
The NGLCC website notes that the approval process can take between 60 and 90 days from the receipt of a complete application. LGBT-owned businesses looking to become certified should start collecting their application materials and apply as soon as possible to ensure their certification is processed before any infrastructure funds become available. 

Does your business qualify for the national LGBT classification? How will you make sure that your certification is completed before bidding for Infrastructure Bill projects?

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What is the Veteran Owned Small Business Program?
This program is offered through the U.S. Department of Veterans Affairs (VA) from the office of Small & Disadvantaged Business Utilization (OSBDU). It provides a variety of benefits for veterans who qualify, including the opportunity to do business directly with the VA. It also offers priority bidding for contracts through other state and federal agencies, tax relief, access to better capital options, and extra support for businesses that show potential for high growth and innovation. The program also provides resources for finding VA procurement opportunities, education and training for how business with the VA works, connections to key contacts to build business partnerships and secure contracts, and other resources.

How do you qualify for the Veteran Owned Small Business Program?
Veterans who own small businesses and want to become certified VOSB need to apply and qualify for the program. Qualifications listed on the program webpage include: 

• They are a veteran. Meaning, they served on active duty for the Army, Air Force, Navy, Marine Corps or Coast Guard and didn’t receive a dishonorable discharge, or served as a Reservist or member of the National Guard and were called to federal active duty, or were disabled from a disease or injury that started or worsened in the line of duty
• Owned 51 percent or more by a veteran(s)
• These veteran owners have full control over the day-to-day management, decision-making and strategic policies of running the business
• Is the highest paid person (people) at the company or can provide written documentation why they are not
• Works at the business full time
• Holds the highest officer position in the company

Get the process started
It can take some time for these types of certifications to be approved, so veterans that own small businesses and want to include the Veteran Owned Small Business certification on their upcoming infrastructure bids should get started now. You can apply online through the Vets First Verification Program, and learn more through your state’s Verification Assistance Counselor or via a pre-application webinar. 

Are you a veteran that owns a small business? How will you take advantage of the VOSB program and use the benefits to secure some of the upcoming Infrastructure Bill spend? 

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As President Biden’s Infrastructure Bill continues to work its way through the approval process, government procurement agents are also ramping up to find vendors and suppliers to fulfill the coming wave of spending. Right now, there is a potential $2 trillion coming available, so suppliers should be preparing to not only bid on projects but make sure they stand out among the many vendors who will be applying for the same government projects. 

Various government procurement departments may have supplier diversity programs, which set goals to support underrepresented groups by allocating a percentage of suppliers with diverse backgrounds that the department wants to hire. For a company to qualify for a diversity classification, the general rule is that 51 percent of the company is owned and operated by a member(s) of an underrepresented group. In order to qualify, vendors will need to become certified in their specific diversity classification, including for the 8(a) Business Development Program.  

What is the 8(a)Certification Business Development Program?
This program is offered through the U.S. Small Business Administration (SBA) and aids companies owned and controlled by socially or economically disadvantaged individuals. The government limits competition for specific contracts so that those with this certification have a better chance of securing government work. In addition to this reduced competition, other program benefits posted by the SBA include being assigned a Business Opportunity Specialist to help each owner with government contracts, the ability to form joint ventures with established government contractors through the SBA’s Mentor-Protégé Program, and receiving other guidance including business training, counseling, marketing assistance, and executive development.   

How do you qualify for the 8(a) Business Development Program?
This is a certification program, so all businesses must apply and qualify to claim the 8(a) status and receive program benefits. 8(a) certification checklists on the program webpage include: 

• Be a small business 
• Have not previously received 8(a) certification benefits 
• Be at least 51 percent owned and controlled by U.S. citizens who are socially and economically disadvantaged
• Have a personal net worth of no more than $750K, an adjusted gross income of $350K or less and $6 million or less in assets
• Demonstrate good character and show the potential to be able to successfully complete awarded contracts

How to apply for the 8(a) certification
As previously mentioned, to participate in the program, take advantage of all benefits, and be able to list the certification on your upcoming bids, companies that think they qualify must apply and be approved through the program. In order to apply, business owners will need to create a SAM account and then apply through the SBA’s certification website. This process can take some time, so it’s best to start right away to make sure you can be approved before any Infrastructure funding starts being distributed. You can check out Certify Knowledge Base for tips and tricks, and once your certification is accepted it will last for up to nine years with successful annual reviews.   

Have you investigated if your business qualifies for the 8(a) Business Development Program? How will you make sure your certifications are in order before any Infrastructure Bill spend is approved?

The post Benefits of 8(a) Business Development Program for Supplier Diversity appeared first on DemandStar | Government Contract Bids, RFPs & Procurement.

What are diversity classifications?
These are special programs that note that your business is owned and operated by an underrepresented group. While it does take a bit of extra work, securing a diversity classification can help your business become more appealing to procurement agents. Many agencies have supplier diversity programs, which basically guide their organizations or departments in their inclusion goals. This can help ensure that underrepresented groups can secure government contracts. A diversity classification is an official way to show procurement agents that your business would help them meet these goals as well as fulfill the needs of the project.   

How do you know if you qualify as a diverse supplier?
For a company to qualify for a diversity classification, the general rule is that 51 percent of the company is owned and operated by a member(s) of an underrepresented group. There are several certification programs and organizations that can help you identify yourself as a diverse supplier, and then these certifications can be included in your upcoming bids. Here are a few you may want to consider: 

8(A) Business Development (BD) Program is offered through the U.S. Small Business Administration (SBA) and aids companies owned and controlled by socially or economically disadvantaged individuals.
Women-Owned Small Business (WOSB) is offered through the SBA and aids companies in industries where women-owned businesses are underrepresented.
Historically Underutilized Business Zone (HUBZone) is offered through the SBA and gives support to small businesses in economically struggling communities.
Veteran-Owned Small Business (VOSB) is offered through the VA and supports veterans with priority bidding, tax relief, and extra resources and training to advance their business prospects.
Disability:IN is a nationally recognized certification program for business enterprises owned by people with disabilities (DOBE®), business enterprises owned by veterans with disabilities (V-DOBE®) and business enterprises owned by veterans disabled during service (SDV-DOBE®).
National LGBT Chamber of Commerce offers a nationally recognized certification to business enterprises owned by members of the LGBT community (Certified LGBTBE®) and aids businesses with corporate and government network connections as well as educational opportunities and skills development.

Start the certification process now
If a diversity classification is a right fit for your business, you’ll want to get the process started as soon as possible. Procurement agents that are looking to not only hire the most qualified vendors but also meet their supplier diversity and inclusion goals will appreciate seeing your certification in order and included in your bid. These classifications can take some time to secure, so while well worth it, you’ll want to start early to make sure you’re ready to include them on your bids once the bill is passed. 

Does your business qualify for a diversity classification? How will you make sure that your certification is completed before bidding for Infrastructure Bill projects?

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