A set of panelists at the Foundation for Accounting Education's Women's Leadership Forum on Jan. 29  lamented that too often the discourse surrounding programs designed to support woman- and minority-owned business enterprises (WMBE) sets up a false dichotomy between quality and equity when it comes to awarding government contracts. 

Rumbi Bwerinofa-Petrozzello, the moderator of the panel, noted that one criticism of these programs is that government contracts should go to the most qualified business regardless of who owns it, and asked whether they do represent an unfair advantage. 

"There's a false choice," said Lourdes Zapata, president and CEO of South Bronx Overall Economic Development Corporation, a community development organization. "When I see 'best and brightest' or 'diversity,' it implies you need one or the other. Of course everyone wants the best, of course everyone wants the most talented. That's separate from whether you should want or need diversity. ... We're not asking folks to take sub-par woman-owned businesses or sub-par people of color-owned businesses, but you assume that because they are woman-owned or people of color-owned it will be subpar, and I reject that discussion." 

Wendy Garcia, chief diversity officer for the New York City Comptroller's Office, agreed, saying that the numbers simply do not bear out this conclusion. Right now, she said, New York City is 80 percent women or people of color (or women of color), yet only 5 percent of the city's total procurement goes to WMBEs. With this in mind, she said that "the city is not doing business with the majority of the people in this city." With proportions this lopsided, which she attributed to historical advantage for incumbent businesses run by white men, one cannot claim that the environment is competitive, which is ultimately the program's goal. 

"I agree, if you want a sustainable city, you need a competitive space where everyone could compete and really focus on merit. I don't think there's one woman ... or person of color in this room that will tell you they have not competed for everything they received. What they will tell you is, 'I competed, I tried, and still didn't get it.' And if you [asked this to] a room full of white men, the story changes completely. Those are the facts, what the data says," said Garcia. 

Zapata, who had previously been New York Gov. Andrew Cuomo's chief diversity officer, said the numbers are similarly disappointing on the state level as well. Even though 53 percent of all businesses in New York state are owned by women and people of color, they get only 30 percent of the government's business. She said she is not looking for a major advantage but a proportionate share of opportunity. 

The persistence of this problem can be at least partially attributable to biases and assumptions baked into the planning process. Having witnessed city procurement officers at work, Garcia said that many times, when developing a contract, the scope and terms tend to be shaped by what they already know, which tends to be incumbent businesses owned by white men. This has the effect of creating language biases in requests for proposals (RFP). 

"Like, you must have done business with the city before, but if you never did before that disqualifies you, so it doesn't even allow you to compete. Or it will say things like you must have revenue reflective of some city contracts, but if you don't have revenue from a city contract [to reference] you're disqualified from competing," she said. 

Aarti Tandon, the CEO of Citizen Eight LLC, a consulting firm that happens to be a WMBE as well, said that these sorts of assumptions can be seen in the ultimate products of these contracts, even if it's something as mundane as a crosswalk. The amount of time given to cross the street at an intersection, she said, is designed around a young, able-bodied man. It does not account for people with strollers, people with disabilities, or even women in heels. 

"When we're thinking of urban planning, we're not thinking of whole communities. ... We have to take into perspective how people move back and forth and how they stop and what they do. Now that we have the sharing economy, who is left out? If you don't have the right people sitting at the table, the right questions won't get asked," she said. 

Garcia noted that it can be difficult for city agencies to get past these biases. Her department, since it was first instituted six years ago, has graded city agencies on how they're doing toward meeting the goals regarding WMBE contracts outlined in Local Law 1, and admitted they were less than stellar. The city, year after year, has been graded D on these goals, except for this year, when it got a C. However, she did note that there are specific agencies that have received better grades, even As, saying this system of accountability is working. 

Tandon added that the city seems to be giving mixed messages. On the one hand, it's "doing so much to bring us into the pool and say we are here for you," but at the same time, it then is very difficult to actually get a city contract compared to other firms.

Garcia acknowledged this is an issue, saying that 30 percent of WMBEs get no contracts from the city at all, and while she was hopeful this would change over time, she recommended talking to legislators, because while her own department has given testimony on this issue, "there's nothing like hearing it from women and minority business owners live." 

"We need to solve for a lot of structural racism that exists in city government," she said. 

Zapata also stressed the importance of getting certification as a WMBE. While a business owner might be a woman or a person of color, until they are officially certified as a WMBE, they cannot receive the program's benefits. Additionally, she said it's important to understand the differences between the state and the city programs, as they have different certification processes, although she said it's very important to be certified by both. She conceded that the process can take time and be frustrating, but noted there are organizations like her own that assist people through it. 

Garcia added that even within the city, there are 12 different certifications one could take on. Some, like those for private and public companies, have an application fee. Others like the one for the Port Authority or the schools, are free. Understanding that most people don't want to go through 12 different certification processes, she said that her own office will help in performing a market analysis of a prospective WMBE firm and help them determine which certifications make the most sense.