Maryland Gov. Wes Moore, a Democrat, signed an executive order Thursday to require state agencies to report data to assess the performance of the state's Minority Business Enterprise program.
In the past several years, not all state agencies have consistently reported minority and women-owned business data, an analysis of state records by WYPR shows. Beyond that, the state has yet to meet goals set back in 2013 for a benchmark of contracting with historically marginalized individuals, data shows.
“Our administration has the most diverse cabinet in history, and it’s critical that we take the first step forward in delivering more access and opportunities to our minority-owned businesses in order to create a more economically competitive and inclusive state,” Moore said.
The order requires participating agencies that have not yet submitted mandatory minority business enterprise data for fiscal year 2022 to the administration within 15 days.
The order requires that within 60 days, the 70 agency program participants must report certain procurement activity since July 1, 2022, in addition to minority-owned business goals and benchmarks.
Agencies also will be required to report on outreach and marketing efforts conducted since July 1, 2022.
Within 60 days, the Maryland Department of Transportation will report to the governor the number of firms certified as Minority Business Enterprises, broken down by jurisdiction, race, and gender.
In 1978, Maryland established the Minority Business Enterprise program to increase participation for minority and women-owned firms in state government procurement.
In 2013, the state set a 29% MBE goal under the then-Gov. Martin O'Malley administration, up from 25%. Since then, the state has consistently failed to meet the 29% goal.
O'Malley, a Democrat, was the mayor of Baltimore City between 1999 and 2007. During his tenure, he was also the assistant state's attorney for Baltimore City and served on Baltimore City Council.
Former Republican Gov. Larry Hogan served in the role between 2015 and early 2023.
In July 2015, the state of Maryland stopped counting payments to nonprofit organizations under its overall minority and women-owned business goals.
During fiscal year 2015 — when nonprofits were still included in the count —the state had allocated 26% of its $8.7 billion in statewide contracts, down from 27% on year before.
During then-Gov. Hogan's tenure, roughly 20% of state contracts went to minority and women-owned businesses in fiscal 2016, which Hogan's administration noted at the time was due to the removal of nonprofit organization contracts.
During fiscal year 2017, several state agencies simply did not submit MBE award data from the State Prosecutor's office to Tax Court but also the state Board of Public Works. Despite that, the state calculated 21% participation among women and minority-owned businesses that year.
During fiscal year 2018, the state awarded 15.1% of all state contracts to women and minority-owned businesses. While all participating agencies and departments are required to submit such award data each year several entities did not such as The Maryland School for the Deaf, Maryland Teachers and Employee Supplemental Retirement Fund and the Employee Supplemental Retirement Fund.
During fiscal year 2019, the state awarded 17.9% of contracts to minority and women-owned businesses. Yet again, several state agencies did not submit required data from Baltimore City Community College to the Maryland State Prosecutor.
The coronavirus pandemic swept across the world nearly three years ago in March 2020 prompting shutdowns around the globe.
During fiscal year 2020, the state awarded 14% to minority and women-owned businesses. As in years prior, several state agencies did not submit data from The Secretary's Office of the Department of Transportation to Baltimore City Community College.
"We believe the unreported data has a negligible impact on the MBE Program's overall performance data as reported here," according to the state's annual report.
During fiscal year 2021, the state awarded 17.2% of contracts to women and minority-owned businesses. That same year, the several state agencies ranging from Human Services to the University of Maryland Baltimore did not submit award data.
In January, Baltimore County Executive Johnny Olszewski issued an executive order to hit 30% of all county contracts to be awarded to minority and women-owned businesses by fiscal year 2026.
Baltimore County's minority and women-owned business program dates back to 1983 when then-County Executive Donald Hutchinson signed the first executive order.
That executive order in 1983 was for 10% minority-owned businesses and 2% for women-owned businesses for construction projects valued more than $100,000, according to the Baltimore County disparity study released in 2021.
Baltimore City established its minority and women-owned business program in 1976.
In September 2022, Baltimore City's Minority and Women's Business Opportunity Office released its most recent disparity study.
Baltimore City spent 29% of its total procurement dollars with minority and women-owned businesses between July 2014 and June 2019, the city's fiscal years.
Under the Baltimore City Mayor Brandon Scott administration, the city's goals for minority-owned businesses is 27% and 10% for women-owned businesses, according to the mayor's office.
The Baltimore City disparity study consultants recommended that the city adjust its minority-owned business goals to 25% and its women-owned business goals to 15%, according to the city. Those new goals expected to be introduced for considering in the 'near future.'
