New Jersey legislation aims to end disparities for minority- and women-owned businesses

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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.

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.”

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.”

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.”

Support from the business community

Michele Siekerka, president and CEO of the New Jersey Business and Industry Association, said she is optimistic the full legislature will soon approve the legislative package.

“The numbers in the disparity study speak for themselves, today is a very good first step,” she said.

She said businesses in minority communities need education “to help to get them to be designated as small business, minority-owned, and then understanding what it takes to get into the procurement process. The language of the procurement process is so important too, and procurement statements need to be written in a way that makes it inclusive for everyone to apply.”

Tom Bracken, who heads up the New Jersey Chamber of Commerce, said the legislation is long overdue.

“This is something that we need to do as a state, the economic and social benefits of doing this are enormous,” he said. “[The legislative package] makes the state image better, this is something that should be a high priority, it’s going to help the state tremendously.”

“All of my colleagues that I’ve spoken to, Black clergy throughout the state, are deeply troubled by this,” said Rev. Charles Boyer, pastor of Greater Mt. Zion A.M.E. Church in Trenton, New Jersey and co-founder of Salvation and Social Justice. “The disparity study revealed a shameful reality, a structurally racist procurement in our state government. This is unacceptable, the situation demands immediate action.”

Wimberly stressed that, “It’s really not about talking about it, it’s about moving these bills forward and making sure that there is justice. We have to step up and do what’s right for everybody, we have to set the path forward for the future.”

He said groups supporting the legislation include the Latino and Asian-American caucuses and the LGBTQ+ community.

The legislative package will now head to the full Assembly for consideration in the coming weeks.