Estimation of Race Neutral Goals in Public Procurement and Contracting

Posted: 6 Dec 2013

See all articles by Samuel Myers

Samuel Myers

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs

Inhyuck Ha

Western Carolina University

Date Written: 2009

Abstract

Federal guidelines require that public entities receiving federal transit authority (FTA) funds take affirmative steps to allocate funds to disadvantaged business enterprises (DBEs). Business firms owned and operated by women and/or racial minority group members are presumptively classified as disadvantaged. To assure that the affirmative efforts to allocate contract dollars to DBEs don’t discriminate against non-DBEs and white male-owned firms, the guidelines require that maximum use of race-neutral means be adopted to assure the inclusion of women and minority-owned firms in public contracting. The guidelines do not provide specific guidance on how to determine the size of the race-neutral portion of contracts awarded to DBEs. This article provides an empirically valid and easy to implement method for achieving race-neutral goals when a public agency or authority collects information on contracts with and without targeted goals.

Keywords: Federal guidelines, FTA, DBEs, race-neutral, goals, public, contracting, procurement, business, funds, affirmative

Suggested Citation

Myers, Samuel and Ha, Inhyuck, Estimation of Race Neutral Goals in Public Procurement and Contracting (2009). Applied Economics Letters, Vol. 16, p. 251, 2009. Available at SSRN: https://ssrn.com/abstract=2363644

Samuel Myers (Contact Author)

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs ( email )

301 19th Ave S
Minneapolis, MN 55455
United States

Inhyuck Ha

Western Carolina University ( email )

Cullowhee, NC 28723
United States

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