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Government rules on minority and women-owned business enterprises (MBE/WBE)

By Warren Green, WGA Small Business Consulting

Both the federal and state governments have rules and regulations requiring the inclusion of minority and women-owned business enterprises (MBE/WBEs) in the government contracting process. Indeed, it is State of Indiana policy to provide equal opportunity for MBE/WBEs to receive and participate in state procurements and contracting.

The Indiana Department of Administration (DOA) is charged with actively promoting, monitoring, and enforcing the state’s MBE/WBE programs. In that vein, all companies desiring to do business with Indiana state agencies must now complete an Indiana Economic Impact form, which requires bidders to identify the amount of each contract being subcontracted to MBE/WBE firms. And, in some circumstances, DOA or other state agencies may require that certain amounts of work be given to MBE/WBEs. Failure of a contractor to identify that information in the bid response may cause a bid to be deemed unresponsive. These participation requirements may also have implications for minority-owned firms acting as prime contractors on state contracts, and majority firms bidding on federal contracts.

Several majority companies have reported difficulty navigating the complex MBE/WBE compliance issues implicated by various minority and women-owned participation requirements, as well as in finding MBE/WBE businesses. Those majority companies that do locate qualified MBE/WBEs have also reported problems making mutually beneficial arrangements with these companies. With the Daniels administration’s strong emphasis on job growth and economic recovery, this will likely become an even more important issue confronting business in Indiana.

WGA Small Business Consulting, LLC can help address this timely business problem. With an emphasis on long-term relationship building, we provide critical advice and counsel to growth- and profit-oriented companies wrestling with MBE/WBE compliance issues. We can guide your organization through complex issues with potentially business-limiting effects. In addition, we help firms desiring to do business with the government locate qualified MBE/WBE businesses with which to partner on government contracts, and then facilitate effective, mutually profitable relationships.