Q. What is a Disparity Study?
A disparity study examines whether there are differences between:
- The percentage of dollars that minority- and woman-owned businesses received on an organization’s prime contracts and subcontracts during a particular time period (utilization); and
- The percentage of dollars that those businesses would be expected to receive based on their availability to perform on the organization’s prime contracts and subcontracts (availability).
The comparison between the participation of minority- and woman-owned businesses in an organization’s contracting and the availability of those businesses to perform that work is referred to as a disparity analysis. In addition to utilization, availability, and disparity analyses, disparity studies typically examine other quantitative and qualitative information about:
- Legal considerations surrounding the implementation of minority- and woman-owned business programs;
- Conditions in the local marketplace for minorities; women; and minority- and woman-owned businesses;
- Contracting practices and business assistance programs that the organization currently has in place; and
- Potential program measures for consideration as part of the organization’s implementation of minority- and woman-owned business programs.
Q. Why is IDOA conducting a disparity study?
IC 4-13-16.5-2 and Title 25 of Indiana Administrative Code (IAC), Article 5 require IDOA to conduct a study every five years to assess the utilization and availability of minority- and woman-owned businesses for the contracts and procurements that state agencies and SEIs award as well as IDOA’s efforts to encourage the participation of minority- and woman-owned businesses in state agency and SEI contracting. (IDOA last completed a disparity study in 2015.) In addition, the Governor's Commission on Minority and Women's Business Enterprises and IDOA would like information to consider potential improvements to the MBE/WBE Program and state contracting processes.
Q. When will the disparity study be completed?
The study will be completed in December 2020. For the study schedule, click here.
Q. What types of contracts are being studied?
The disparity study will examine prime contracts and subcontracts that the State awarded from July 1, 2013 through June 30, 2018. The study will examine construction; professional services; and goods and other services contracts.
Q. What will the State do with information from the disparity study?
Information that the project team collects as a part of the State of Indiana Disparity Study will help inform the agency’s implementation of the MBE/WBE Program. Among other information, the disparity study will provide:
- An independent, objective review of minority- and woman-owned business participation in state prime contracts and subcontracts.
- Information that is useful for setting overall annual aspirational goals for the participation of minority- and woman-owned businesses in state contracting; and
- Insights about how IDOA might improve contracting for local businesses and how it could better encourage the participation of minority- and woman-owned businesses in the future.
Q. Will information from the disparity study affect the State of Indiana’s Overall MBE/WBE Goals?
The disparity study will provide guidance to IDOA and the Governor’s Commission on Minority and Women's Business Enterprises related to the State of Indian’s overall MBE/WBE goals. The Governor’s Commission and IDOA will then use that information to adjust the goals and the MBE/WBE Program as appropriate.
Q. Will the results of disparity study be made public?
Yes, the results of the disparity study will be made public at the end of the process.
Q. How can I participate in the disparity study process?
There are several ways in which you can participate in the State of Indiana Disparity Study:
- Share your experiences working in the local marketplace by emailing the project team directly at INdisparity@BBCresearch.com.
- Join us for a community meeting where you can learn more about the disparity study process, ask questions, and submit testimony about your experiences working in the marketplace. For details about community meetings, click here.
- Respond to our requests to complete an availability survey. If you represent a business working in the local marketplace, you may be contacted as a part of the availability survey process. If you are contacted, please help the project team by participating!
- Call us if you have any unanswered questions about the study. For our contact information, click here.