Frederick County is taking a closer look at procurement, specifically, how its contracting system works, and who it works for.
County officials have released the County’s first-ever Procurement Disparity Study, an analysis of whether barriers exist to businesses’ access to public contracting opportunities.
The study marks a step toward evaluating fairness, access, and participation in county procurement, an issue many local governments are looking into.
Conducted based on procurement data gathered for five years, the study examined:
- how county contracts are awarded
- the availability of Minority- and Women-Owned Business Enterprises (MWBEs)
- how often those businesses are actually used
- broader market conditions and business experiences
To better understand potential barriers and deepen the results of their findings, county researchers also conducted interviews with local businesses.
Their Findings
The results showed a gap between availability and participation.
- MWBEs represent 17.47% of available businesses
- but only received about 4.23% of county spending
Additionally:
- limited participation from small businesses within the county overall
- insufficient subcontractor data present to support certain policy approaches
- reported barriers such as:
- access to capital
- complex requirements
- limited familiarity with county processes and procedures
The county found it important to note that in spite of their findings, most interviewed businesses did not relay direct experiences of discrimination.
The Next Steps & Looking Ahead
Due to data limitations, Frederick did not meet the legal threshold to implement race- or gender-conscious contracting programs. With that in mind the focus has now shifted to race- and gender-neutral strategies, such as:
- improving data collection from the start
- expanding small business support through new programs with reduced barriers to entry
- simplifying procurement processes
- increasing outreach and engagement
What Frederick County is doing isn’t unique. In fact, disparity studies have become increasingly common for local governments seeking to:
- evaluate procurement practices
- ensure fair access to public contracts
- support small and emerging businesses
- build a legally defensible foundation for policy changes
The most important next step is what the county does with its findings and for Frederick County that means hosting community engagement sessions and establishing a task force to guide the implementation of the study’s recommendations.
