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A legislative package has been approved by a committee to address issues uncovered in a state disparity study.
David Matthau, WHYY | September 24, 2024
The Reverend Charles Boyer, pastor of Greater Mt. Zion A.M.E. Church in Trenton, said Black clergy throughout the state are deeply troubled by the disparities that exist for minority- and women-owned businesses. (David Matthau/WHYY)
Significant disparities exist for minority- and women-owned business enterprises in the Garden State seeking government contracting opportunities. That’s the finding of the New Jersey Disparity Study, completed at the beginning of this year.
In response, the Assembly Community Development and Women’s Affairs Committee approved a legislative package Monday designed to level the playing field.
What the data shows
Assemblywoman Shavonda Sumter, committee chair, said the study examined 240,000 contracts across more than 60 state agencies from 2015 to 2020, and the findings confirmed what many have long known.
“The disparities in public contracting have been an opportunity that’s been locked out for minority- and women-owned businesses in New Jersey, and it’s truly unacceptable,” she said.
Assemblywoman Shavonda Sumter, the chair of the Community Development and Women’s Affairs Committee, announcing legislation to level the playing field for minority- and women-owned businesses.
The study found that Black-owned companies make up more than 9% of the available construction businesses in New Jersey but received only 0.014% of government-issued contracts.
“I’ve never heard such bleak numbers in construction contract dollars,” she said. “Nearly 28% of construction firms in the state are minority-owned, yet they receive just 3.47% of prime construction contract funds.”
She added, “Women-owned businesses account for nearly 38% of all professional service firms, yet they received less than 10% of contracts valued up to $800,000. The evidence is clear: Systemic inequities persist.”
Assemblyman Benjie Wimberly (left) and other members of the General Assembly support the legislative package.
What needs to be done
“Laws need to be modified and modernized in the procurement practice,” said Sumter. “We want a fair opportunity to compete.”
Assemblyman Benjie Wimberly agreed that action is needed now.
“This is true disparity; these numbers are not satisfactory. Our folks deserve better and they deserve more,” he said.
To address the problem, Sumter said it is crucial that state agency contracting units and prime contractors “adhere to clear criteria that demonstrates a good faith effort to increase participation by minority- and women-owned businesses in state contracting.”
What the legislation calls for
The legislative package consists of 12 bills.
Sumter said the goal of the legislative package is to ensure “that all businesses, regardless of race or gender, have an equal opportunity to succeed.”
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