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Michael Korsh stated that utilizing affirmative action, which demands a larger proportion of minority-owned firms in public construction projects, is not adequate to assure that more projects benefit from minority-owned enterprises. According to a recent municipal audit, the Denver metro sewage agency prevented any minority-owned firms from subcontracting for it. And Pittsburgh's municipal auditor revealed that DBEs were not being monitored. Although several states have adopted DBE contracts to enhance diversity, the national statistics on the programs is hazy.

In 2011, the U.S. Government Accountability Office (GAO) produced a study on the present situation of minority-owned contractors in federal construction projects. The research followed a sprinkling of prior publications and stated that more information is required to guarantee that more people of color, women, and other underrepresented groups engage in the contracting process. In light of this, the president of the National Association of Minority Contractors, Wendell Stemley, says that communities owe it to their inhabitants to promote small and minority-owned enterprises and that greater control is required to guarantee that the program is operating properly.


Michael Korsh underlined that the success of MWBEs depended on government laws and effective government leadership. The purpose is to expand the number of minority-owned enterprises in the government construction industry. MWBEs must satisfy specific requirements. MWBEs must be registered with the federal government and be prepared to show documentation that they are socially and economically disadvantaged. It may be challenging to locate instances of successful MWBEs, but the state must be dedicated to strengthening the climate for minority-owned contractors.

The federal government may assist develop and run projects by choosing qualifying minority-owned enterprises. This is done via outreach activities supported by state MBE Programs and local contractors' groups. In addition to locating a firm, you may also attend MBE Program outreach workshops to discover and employ a minority-owned construction company. These programs may assist you with compliance and training. They are a critical tool in ensuring that the greatest potential result is attained for everyone concerned.

MBEs are frequently thought to be more experienced and skilled than non-MMEs. A recent research indicated that the usage of MBEs on building projects is significantly advantageous to both communities. Regardless of size, MBEs should be involved in all initiatives that have high hazards or risk. The TEA-21 Act is a comprehensive bill aimed at preventing discrimination in government procurement. The statute also sets explicit standards for the qualifications of MBEs.


Michael Korsh noted that although the racial assumption is useful in the building sector, it is not enough. A lack of awareness might generate complications for initiatives. A contractor should be aware of this information so that they can effectively apply their rules. By adopting a diversity plan, you may assist to make the government more effective. The racial assumption is an essential legal requirement that forces contractors to employ disadvantaged candidates. Whether a corporation is certified or not, a certification allows the organization to be more competitive.

The EPA demands that all big building projects include a diversity strategy. A majority of the companies must engage in the program. In the city of Portland, this demand is required. If the program is unsuccessful, a contracting officer should be notified. During the review process, the ombudsman may assist assess if the criteria are being fulfilled. This is a critical feature in a healthy contractual environment.

The racial preference statute was first adopted in 1995. Since then, the lawsuit has gone a lengthy and confusing road. In Adarand I, the Supreme Court determined that a minority-owned firm is not qualified for the SDB program. However, it recognized that a minority-owned company is qualified for the SDB program. The verdict was a big triumph for both parties. The court has acknowledged the significance of diversity in the government procurement process.

MWBE firms should be able to secure more contracts and sustain a high degree of success. By becoming more diversified, a minority-owned firm will be able to compete in a competitive market. While this may seem like a difficult endeavor, it is feasible to overcome hurdles by working with a wide range of firms. And a diversity-oriented corporation will be a greater investment for a community. In summary, a minority-owned firm is a smart investment for the community and the government.

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