Minority business partners eyed

ANNAPOLIS (AP) — Amid criticism that Maryland has failed to adequately include minority businesses in state contracts, state officials say they will work harder to encourage state agencies to raise the participation of minority firms.

Shortcomings in reaching goals under the Maryland Minority Business Enterprise Program were underscored last week at a Board of Public Works meeting, when the renewal of $30 million in contracts relating to commuter bus operations came before the board.

Arnold Jolivet, head of the Maryland Minority Contractors Association, pointed out that the contracts didn’t include minority business participation.

“There’s no reason to renew the contract as is — which means that two more years will go by — and it’s just tragic that out of $30 million, not one dime will go to a minority firm,” Mr. Jolivet told the board. “It boggles the mind that that can happen.”

The contracts did not include minority firms because the state granted waivers to the companies that ended up with the work. A contractor can ask for a waiver under the program if it can’t reach a stipulated amount of minority-firm participation. It’s then up to the state agency that’s looking for a contractor to decide whether to accept the bidder’s waiver request.

Luwanda Jenkins, who heads the Governor’s Office of Minority Affairs, said Mr. Jolivet “does raise a valid point with regard to the abuse of waivers in previous years.” She said the state will be keeping a closer eye on the number of waivers granted to agencies.

Miss Jenkins said state agencies are being asked to report the number of waivers on a monthly basis with the use of StateStat, a statistics-based accountability initiative introduced by Gov. Martin O’Malley, a Democrat.

“To the extent that when waivers are issued, we can really look at the necessity of those waivers and try to mitigate waivers before they come to board approval,” she said.

Miss Jenkins said state agencies are not often looking hard enough for minority firms that can do the work. She said her office is working to make sure minority participation goals are placed on bids when they go out to the marketplace, reflecting the availability of work on state contracts.

The Maryland Minority Business Enterprise Program aims for 25 percent minority participation. The program is written into state law, providing that agencies strive to reach the 25 percent mark.

The state is in the process of calculating how much minority firms participated on state contracts in fiscal year 2007. In fiscal year 2006, participation by minority firms reached an estimated 22 percent, Miss Jenkins said.

Mr. Jolivet blamed the administration of former Gov. Robert L. Ehrlich Jr., a Republican, for making a “conscious decision” to engage in “selective enforcement” of minority business law.

Former Lt. Gov. Michael S. Steele, a Republican who led efforts focused on minority business programs under Mr. Ehrlich, said he worked hard to turn around what had become “a moribund program.”

“I would not paint with such a broad brush to make this damning incrimination of the [Ehrlich] administration, to sort of create the perception that there was nothing done to MBE reform,” Mr. Steele said.

The board ended up approving the contract renewal Wednesday on the condition that the Maryland Department of Transportation meet with contractors to highlight the concerns raised by Mr. Jolivet and attempt to secure some voluntary compliance with MBE goals.