Department of Economic Inclusion Menu

Disparity Study

 

2023 City of Cincinnati Disparity Study

The City of Cincinnati is required to conduct a Disparity Study periodically to ensure that our Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) inclusion program, managed by the Department of Economic Inclusion (DEI), is narrowly tailored to current disparity data. Griffin & Strong, PC (GSPC), a highly-regarded firm with extensive experience in conducting such assessments, performed a comprehensive review of the City’s procurement and contracting processes and of City dollars spent with minority-owned and women-owned businesses as prime contractors and subcontractors. A regression analysis found that disparities by race, ethnicity, or gender status of the firm owners remained after controlling for capacity and other race and gender-neutral factors.  GSPC found that City of Cincinnati should continue its race and gender-neutral programs and that there is a factual predicate for race and gender conscious efforts. 

The current inclusion program under Cincinnati Municipal Code Chapter 324 will expire in its entirety on September 30, 2023.  As a result, all current program certifications will expire on that date. Effective October 1, 2023, the current program will be replaced by a new MBE and WBE program that implements the changes required by the Disparity Study findings. These changes will not impact the current contracts under which firms are working or new contracts that were solicited before October 1, 2023. If an MBE/WBE is counted toward an inclusion goal on a contract solicited before October 1, 2023, they will continue to be credited to the inclusion goals. 

You can review the details of the Disparity Study here. If you have any questions or would like to discuss the Disparity Study further, please do not hesitate to contact DEI’s Director, Laura Castillo. 

Laura.castillo@cincinnati-oh.gov 

(513)-352-3143  

Please submit any feedback here: https://forms.office.com/r/uhm4ZXxpem  

 

Previous Program Eligibility:  

  • Construction: All Women-owned and African American –owned firms 

  • Professional services: All Women-owned and African American-owned firms  

  • Non-professional services: All Women-owned, African American-owned, and Asian American-owned firms 

  • Goods: All Women, African American, Asian American 

 

New Program Eligibility: Effective October 1, 2023  

  • Construction: African American-owned, Hispanic American-owned, and Non-minority Woman-owned firms  

  • A&E: African American-owned, Hispanic American-owned, and Non-minority Woman-owned firms  

  • Professional Services: African American-owned, Hispanic American-owned, and Non-minority Woman-owned firms  

  • Other Services: African American-owned, Asian American-owned, Hispanic American-owned, and Non-minority Woman-owned firms 

  • Goods: Non-minority Women

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Industry Categories 

 

The industry categories included in the 2023 Disparity Study are Construction, A&E (or Architecture and Engineering), Professional Services, Other Services, and Goods.  

  • Construction: For the purposes of the City of Cincinnati Disparity Study includes the construction, erection, repair, renovation, or demolition of a public structure, building, street, road, wharf, and other public improvements.  

  • Architecture and Engineering (A&E): For the purpose of the City of Cincinnati Disparity Study includes, architecture and engineering, surveying, and construction management.

  • Professional Services: For the purposes of the City of Cincinnati Disparity Study includes firms that perform services such as legal, medical, and consultant services.  

  • Other Services: For the purposes of this Study includes firms that perform all other services, not included in Construction, A&E, and Professional Services. This includes lawn service, janitorial, IT services, printing, marketing, advertising, etc.  

  • Goods: For the purposes of the City of Cincinnati’s Disparity Study includes commodities, materials, supplies, and equipment.  

A total of $824,614,364.00 was spent with businesses in the Relevant Market (Hamilton County) during the Study Period. Here is the breakdown that can be found in page 11.  

  • Construction: $367,436,612  

  • A&E: $ 15,587,927  

  • Professional Services: $ 58,691,403  

  • Other Services: $212,497,005  

  • Goods: $170,401,416  

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Summary of Statistically Significant Prime Underutilization of  Minority-Owned Firms and Non-Minority Women-Owned Firms 

City of Cincinnati Disparity Study 

 

 

Summary of Statistically Significant Total Utilization (Prme and Subcontractor) 

 

 

 

FAQ 

 

  • What is a Disparity Study? 

Disparity studies are required for government agencies to stand up an MBE/WBE program. A Disparity Study determines whether there is a statistically significant disparity in the percentage of dollars received by minority- and women-owned businesses under government contracts and the availability of those firms in the relevant geographic market area that cannot be explained by factors unrelated to race/ethnicity and gender.    

 

  • Who conducted the Study? 

Griffin & Strong, P.C. completed the 2023 Disparity Study after a competitive bidding and selection process.  

 

  • What was the Study Period? 

The 2023 Disparity Study statistically analyzed the City of Cincinnati prime contracts and subcontracts during the period January 1, 2016, to December 31, 2020, to evaluate the use of ready, willing, and able minority- and women-owned business enterprises, which is reflected in a final report dated February 2023.   

 

  • Why do we need a new Disparity Study?  

A Disparity Study helps ensure that our MBE and WBE programs operate within the confines of the law, which requires programs to be narrowly tailored to the findings of a study that is not too remote in time from the program.  

 

  • What is the Relevant Geographic Market Area? 

The area where 75% or more of the government entity’s dollars are expended. The City of Cincinnati’s relevant geographic market area was determined by the Disparity Study to be Hamilton County.  

 

  • What is the MBE/WBE Availability Percentage? 

The proportion of MBE/WBE firms in the relevant geographic market area that are ready, willing, and able to perform the services or supply the goods the City procures as compared to the total number of firms in the relevant geographic market area that are ready, willing, and able to do so. 

 

  • What is the MBE/WBE Utilization Percentage?  

The proportion of City funds expended with MBE/WBE firms in the relevant geographic market area as compared to expenditures with all vendors. 

 

  • What is the Disparity Index? 

A comparison of utilization percentage to availability percentage  

  • Parity is expressed as 1 or 100 (that is, firms are utilized in the same proportion as their availability).  

  • An index of .8 or 80 or less demonstrates statistically significant disparity. 

 

  • Are Minority Women still in the City’s inclusion program? 

African American women-owned businesses and Hispanic American women-owned businesses that meet the location requirements can participate as MBEs in all categories other than Goods. 

Asian American women-owned businesses that meet the location requirements can participate as MBEs for Other Services. 

All minority women-owned businesses that meet the size and location requirements can participate in the race- and gender-neutral program as SBEs, SLBEs, and/or ELBEs