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Barriers Facing Minority- and Women-Owned Businesses in Pennsylvania
Barriers Facing Minority- and Women-Owned Businesses in Pennsylvania
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The Pennsylvania Advisory Committee submits this report, Barriers Facing Minority-
and Women-Owned Businesses in Pennsylvania,as part of its responsibility to advise the
Commission on civil rights issues in the commonwealth.The Committee approved this report
in a vote of 10 to 0, with no abstentions.
In the 1980s and early 1990s, the U.S. Supreme Court’s Crosonand Adaranddecisions
resulted in the dismantling—either voluntarily or by court order—of state and local government-sponsored minority and women business enterprise programs. Many viewed these programs that used race and gender as factors in awarding contracts as ways to ensure a fair
distribution of business opportunities to minority- and women-owned business enterprises
(M/WBEs). Against this changing landscape, the Advisory Committee received allegations
that M/WBEs continue to encounter practices in Pennsylvania that impede their ability to
compete for and carry out contracts successfully. The Committee became concerned that
commitments by public leaders for an increasedshare of business opportunities for M/WBEs
would weaken, and that in the absence of remedialor substitute efforts,discriminatory practices would continue.
To address these concerns, the Committee held a one-day forum in January 1999 in
Philadelphia with M/WBE owners, government officials, community leaders, and representatives from large prime contractors. To supplement the forum, the Committee reviewed data on
M/WBE participation rates in state and local contracting, literature on barriers M/WBEs encounter, and the structure and operation of state and local monitoring agencies. It also held
meetings with Philadelphia agency representatives to follow-up on the city’s progress in revising
its M/WBE program. Staff also closely monitored allegations of fraud and mismanagement in
large-scale projects in Pittsburgh and Philadelphia for their adverse impact on M/WBE utilization. This report is based on information gathered from the forum and these subsequent
follow-up efforts
and Women-Owned Businesses in Pennsylvania,as part of its responsibility to advise the
Commission on civil rights issues in the commonwealth.The Committee approved this report
in a vote of 10 to 0, with no abstentions.
In the 1980s and early 1990s, the U.S. Supreme Court’s Crosonand Adaranddecisions
resulted in the dismantling—either voluntarily or by court order—of state and local government-sponsored minority and women business enterprise programs. Many viewed these programs that used race and gender as factors in awarding contracts as ways to ensure a fair
distribution of business opportunities to minority- and women-owned business enterprises
(M/WBEs). Against this changing landscape, the Advisory Committee received allegations
that M/WBEs continue to encounter practices in Pennsylvania that impede their ability to
compete for and carry out contracts successfully. The Committee became concerned that
commitments by public leaders for an increasedshare of business opportunities for M/WBEs
would weaken, and that in the absence of remedialor substitute efforts,discriminatory practices would continue.
To address these concerns, the Committee held a one-day forum in January 1999 in
Philadelphia with M/WBE owners, government officials, community leaders, and representatives from large prime contractors. To supplement the forum, the Committee reviewed data on
M/WBE participation rates in state and local contracting, literature on barriers M/WBEs encounter, and the structure and operation of state and local monitoring agencies. It also held
meetings with Philadelphia agency representatives to follow-up on the city’s progress in revising
its M/WBE program. Staff also closely monitored allegations of fraud and mismanagement in
large-scale projects in Pittsburgh and Philadelphia for their adverse impact on M/WBE utilization. This report is based on information gathered from the forum and these subsequent
follow-up efforts
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