Challenges and Barriers to Equity in Contracting

It is creative and flexible. Equitable contracting strategies push the boundaries of current laws and is flexible with the approaches (GARE, 2015). ” [It offers] flexibility in allowing community to do the work that they need to do and not necessarily always conforming to a certain way of doing the administrative tasks or the reporting.” ―Community-based organization leader

Challenges and Barriers to Equity in Contracting

The following table summarizes the challenges of contracting with government faced by small businesses, consultants, and organizations from communities whose access has historically been limited.

Racism and discrimination

- Discrimination in the private marketplace limits their ability to contract outside of government - Legacy of discrimination in lending and contracting has produced a wealth gap that puts BIPOC-led firms in disadvantage

Cumbersome processes

- Different and complex certifications result in time wasted by BIPOC orgs and small firms - Non-standardized bidding processes across government entities create an inefficient infrastructure Risk-averse culture - Favors contractors that have worked with the government before - Transfers the burden on small organizations and firms, and increase their vulnerability

Disconnection with BIPOC networks

- Favors large, white-led firms with more connections - Limited communication about upcoming procurement opportunities to BIPOC networks - Fewer connections with large, established, white-led prime contractors limits opportunities of BIPOC organizations to serve as sub-contractors Limited capacity - Lack of access to capital and other built capacities needed to meet government requirements - Limited resources to devote to writing proposal and bidding - Smaller firms and organizations may need coaching and technical assistance to compete - Public-sector agencies operate in silos making requests for proposals duplicative and inefficient - Requirements to demonstrate past experience and performance to qualify - Limited access to insurance/bonding at required levels - Fewer assets and more debt - Limiting or difficult policies to form collectives and cooperatives Inability to compete - Legacy of racism and discrimination in education - Less availability to contract (fewer human resources, less time) - Less likely to grow up in households where someone owned large businesses that contracted with public entities

Larger firms, more resources

- Allows more favorable pricing - Places small and diverse organizations at a disadvantage

Race “neutral” policies

Under resourced procurement offices Growth and scaling up

- Legal contexts that impede race-conscious approaches - Disconnection between equitable contracting policies and practices - Adoption of best policies does not guarantee that the policies will be enforced or effectively implemented. - Underdeveloped tools and processes to increase equity and inclusion in contracting - Limited staffing to research, improve and implement tools and processes - Large-scale, standardized projects with greater scopes of work and one-size-fits-all approaches - Project scopes that exceed most CBOs and small firms’ capacity as primes or subcontractors - Lesser chances of CBOs and small contractors to co-design, bid and be awarded.