Disparity in Wisconsin State Contracts for Minority Contractors Revealed in WisDOT Report
A new report by the Wisconsin Department of Transportation (WisDOT) has shed light on disparities in state contracts awarded to minority contractors. The report, which was conducted in collaboration with the University of Wisconsin-Milwaukee, aimed to identify and remove barriers for disadvantaged business enterprises (DBEs) and maximize their participation in federally funded construction and professional contracts.
Overall, the report found that WisDOT had been successful in meeting its DBE goals. However, it also revealed significant discrepancies in the distribution of state contracts among different minority groups. In particular, there was a highly disproportionate number of contracts and dollars going to DBEs owned by white women compared to Black DBE owners, despite the latter making up a larger share of registered firms.
The study identified several barriers for qualified DBEs, including a lack of business and management acumen, limited access to capital, bonding, and insurance, and low opportunities for strategic and professional networking. These barriers, along with historic inequalities and limited access to opportunities, were cited as contributing factors to the disparity.
While the report acknowledged the progress made by WisDOT’s DBE program over the past few years, the National Association of Minority Contractors – Wisconsin (NAMC-WI) expressed concerns regarding certain findings. NAMC-WI cautioned WisDOT against blaming the victims and urged the department to acknowledge the impact of historic barriers and systemic discrimination on minority-owned businesses.
NAMC-WI also questioned the sample size and representativeness of the survey conducted for the study. With only 31 local DBE firms participating out of 275 surveyed, NAMC-WI argued that the findings may not accurately reflect the sentiment of all DBEs.
The report concluded that WisDOT’s DBE program had weaknesses in frequently awarding contracts to the same firms, lack of buy-in from project managers, and a perception that there are no clear benefits for consultants and more established firms. Serial contracting, an issue rooted in historical exclusion, was also highlighted as a problem that often overlooks DBEs.
To address these issues, NAMC-WI is working with WisDOT higher officials to establish a partnership that promotes diverse primary contracting on infrastructure projects. This collaboration aims to increase diverse business participation in major contracting opportunities on WisDOT projects. Additionally, NAMC-WI is conducting its own research analysis to further enhance the capacity building of DBEs.
In response to the report, a spokesperson for WisDOT emphasized the department’s commitment to continuously improving its DBE program. They acknowledged the value of DBE firms in delivering quality infrastructure and highlighted successful collaboration within the industry to strengthen relationship development.
WisDOT’s DBE program provides opportunities for disadvantaged companies to participate in federally assisted highway contracts, and the department aims to administer a program that meets the needs of all stakeholders.
As efforts continue to address the disparities revealed in the report, it is hoped that Wisconsin’s state contracts will become more equitable, providing a level playing field for all minority contractors and fostering greater diversity and inclusion within the construction industry.
