Evaluating Strategies for Promoting Minority Construction Contracting

This analysis addresses the issue of disparity between minority-owned businesses and non minority-owned businesses in securing city contracts in the city of Grand Rapids, Michigan. Understanding the implications of unfair contract disbursement on the economy of Grand Rapids is extremely important as the city becomes more diverse. It is important that Grand Rapids remain a viable city and to do so, fairness in contract disbursement must be addressed. It examines the previous policy which required businesses to maintain a percentage of minority workers, the policy used by the city of Chicago which sets aside a certain portion of city contracts for minority owned businesses, and the current policy which uses a discount program to help achieve diversity in awarding contracts. This analysis examines each policy on five criteria: 1) Does the program increase access to government contracts? 2) What is the percentage increase of minority and women businesses in city contracts? 3) Can the policy stand up in the courts? 4) What is the cost to the city? 5) Is the policy politically feasible