PDF Guilford County School District Disparity Study

GUILFORD COUNTY SCHOOL DISTRICT DISPARITY STUDY

TABLE OF CONTENTS

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1 INTRODUCTION

1. Introduction....................................................................................................................................................1 2. Study Team .....................................................................................................................................................1 3. Background.....................................................................................................................................................2 4. Overview of Study Approach...................................................................................................................2 5. Report Organization....................................................................................................................................3 6. Glossary of Terms.........................................................................................................................................4

2 LEGAL FRAMEWORK

1. Introduction....................................................................................................................................................1

2. Standards of Review for Race-Specific and Gender-Specific Programs.................................2

3. To Withstand Strict Scrutiny, an M/WBE Program Must Be Based on Thorough Evidence Showing a Compelling Governmental Interest........................................4

4. Sufficiently Strong Evidence of Significant Statistical Disparities Between Qualified Minorities Available and Minorities Utilized Will Satisfy Strict Scrutiny and Justify a Narrowly Tailored M/WBE Program .........................................................6

5. The Governmental Entity or Agency Enacting an M/WBE Program Must Be Shown to Have Actively or Passively Perpetuated the Discrimination....................................9

6. Anecdotal Evidence of Discrimination in Disparity Studies....................................................... 10

7. To Withstand Strict Scrutiny, an M/WBE Program Must Be Narrowly Tailored to Remedy Identified Discrimination.................................................................................................. 11

8. Small Business Procurement Preferences ......................................................................................... 14

9. Conclusions................................................................................................................................................... 15

3 REVIEW OF POLICIES AND PROGRAMS

1. Introduction....................................................................................................................................................1 2. Methodology .................................................................................................................................................1 3. M/WBE Goals Program ..............................................................................................................................2 4. M/WBE Certification ....................................................................................................................................7 5. Outreach ..........................................................................................................................................................8 6. Tracking M/WBE Utilization .....................................................................................................................9 7. M/WBE Coordinator .................................................................................................................................. 11 8. Prompt Payment ......................................................................................................................................... 11

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9. Loan Programs ............................................................................................................................................ 11 10. Bonding Programs ..................................................................................................................................... 12 11. Management and Technical Assistance ............................................................................................ 12 12. Conclusions................................................................................................................................................... 13

4 MARKET AREA AND UTILIZATION ANALYSES

1. Chapter Definitions......................................................................................................................................1 2. Data Collection and Management.........................................................................................................4 3. Market Area Analysis ..................................................................................................................................5 4. Utilization Analysis .......................................................................................................................................8 5. Conclusion..................................................................................................................................................... 20

5. AVAILABILITY AND DISPARITY ANALYSES

1. Chapter Definitions......................................................................................................................................1 2. Disparity Methodology and Indices......................................................................................................3 3. Guilford County School District Availability and Disparity Summary ......................................4 4. Statistical Significance ................................................................................................................................9 5. Conclusion..................................................................................................................................................... 15

6. PRIVATE SECTOR AND NON-GOAL ANALYSES

1. Introduction....................................................................................................................................................1 2. Collection and Management of Permits Data...................................................................................2 3. Private Sector Utilization Analysis, Commercial Construction Permits ...................................4 4. Nexus Between Commercial and Public Construction ..................................................................9 5. Private Sector Disparities, U.S. Census Bureau, 2012 Survey of Business

Owners Data ................................................................................................................................................. 10 6. Analysis of Race, Ethnicity, and Gender Effects on Self-Employment Rates....................... 31 7. Conclusion..................................................................................................................................................... 43

7. ANECDOTAL ANALYSIS

1. Methodology .................................................................................................................................................1 2. Demographics................................................................................................................................................5

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3. Barriers to Doing Business with Guilford County School District............................................ 10 4. Stakeholder Interviews ............................................................................................................................. 11 5. Access to Capital and Bonding ............................................................................................................. 12 6. Disparate Treatment and Discrimination .......................................................................................... 13 7. Suggested Remedies from Anecdotal Participants ...................................................................... 14 8. Conclusion..................................................................................................................................................... 15

8. FINDINGS AND RECOMMENDATIONS

1. Introduction....................................................................................................................................................1 2. Findings ............................................................................................................................................................1 3. Commendations and Recommendations ...........................................................................................6 4. Conclusion.......................................................................................................................................................8

APPENDICES

Appendix A: Stakeholder Interview Guide Appendix B: Custom Census Survey Instrument Appendix C: Detailed Disparity Analyses Appendix D: Public Meeting Notices Appendix E: Survey of Vendors Instrument Appendix F: Survey of Vendors Results Appendix G: Regression Analysis Appendix H: In-Depth Interview Guide Appendix I-1: Focus Group Guides ? Primes Appendix I-2: Focus Group Guides ? Subcontractors Appendix J: Public Use Microdata Sample (PUMS) Regression Analysis Appendix K: Detailed Market Area Analysis

TABLES

CHAPTER 3 Table 3-1 Documents Reviewed During Policy and Procedure Review ......................................................2

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Table 3-2 Guilford County Schools, M/WBE Goals on Randomly Selected Projects, From 2012 ...................................................................................................................................................................6

Table 3-3 Guilford County Schools, M/WBE Spending on Goods and Services ? State Certified, FY 2013-14................................................................................................................................. 10

Table 3-3a Guilford County Schools, M/WBE Spending Goods and Services, All Firms (State Certified & Non-State Certified), FY 2013-14 .................................................................... 10

Table 3-3b Guilford County Schools, M/WBE Spending Goods and Services, Shows Money Spent and Not Reported by GCS for Non-State Certified Firms, FY 2013-14 .................................................................................................................................................... 10

CHAPTER 4

Table 4-1 Market Area Analysis, Prime Level, Distribution of Dollars by Business Category...........................................................................................................................................................6

Table 4-2 Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, Construction ...............................................................................................9

Table 4-3 Utilization of Firms Analysis, Subcontractor Level, Distribution of Dollars by Business Ownership Classification, Construction ............................................................................................. 11

Table 4-4 Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, Architecture and Engineering............................................................ 13

Table 4-5 Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, Professional Services ............................................................................. 15

Table 4-6 Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, Other Services .......................................................................................... 17

Table 4-7 Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, Goods and Supplies............................................................................... 19

CHAPTER 6

Table 6-1 Private Sector Census Disparities, NAICS Code 23, Construction, U.S. Census 2012 Survey of Business Owners, State of North Carolina Marketplace.............................. 12

Table 6-2 Private Sector Census Disparities, NAICS Code 42, Wholesale Trade, U.S. Census 2012 Survey of Business Owners, State of North Carolina Marketplace .............. 14

Table 6-3

Private Sector Census Disparities, NAICS Code 54, Scientific and Technical Services, U.S. Census 2012 Survey of Business Owners, State of North Carolina Marketplace .................................................................................................................................................. 16

Table 6-4

Private Sector Census Disparities, NAICS Code 56, Administrative and Support and Waste Management and Remediation Services, U.S. Census 2012 Survey of Business Owners, State of North Carolina Marketplace ............................................................. 18

Table 6-5

Private Sector Census Disparities, NAICS Code 81, Other Services (Except Public Administration), U.S. Census 2012 Survey of Business Owners, State of North Carolina Marketplace................................................................................................................... 20

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Table 6-6

Private Sector Census Disparities, NAICS Code 23, Construction, U.S. Census 2012 Survey of Business Owners, Greensboro-High Point, NC Metro Area Marketplace .................................................................................................................................................. 22

Table 6-7

Private Sector Census Disparities, NAICS Code 42, Wholesale Trade, U.S. Census 2012 Survey of Business Owners, Greensboro-High Point, NC Metro Area Marketplace ....................................................................................................................................... 24

Table 6-8

Private Sector Census Disparities, NAICS Code 54, Scientific and Technical Services, U.S. Census 2012 Survey of Business Owners, Greensboro-High Point, NC Metro Area Marketplace ..................................................................................................... 26

Table 6-9

Private Sector Census Disparities, NAICS Code 56, Administrative and Support and Waste Management and Remediation Services, U.S. Census 2012 Survey of Business Owners, Greensboro-High Point, NC Metro Area Marketplace....................... 28

Table 6-10 Private Sector Census Disparities, NAICS Code 81, Other Services (Except Public Administration), U.S. Census 2012 Survey of Business Owners, Greensboro-High Point, NC Metro Area Marketplace ................................................................ 30

Table 6-11 Percentage of Self-Employed/2014 Earnings, Racial, Ethnic, and Gender Business Ownership Classification ....................................................................................................... 34

Table 6-12 Self-Employment "Odds Ratios" of Minority Groups Relative to Nonminority Males After Controlling for Selected Demographic and Economic Characteristics.............................................................................................................................................. 38

Table 6-13 Earnings Elasticities of Minority Groups Relative to Nonminority Males After Controlling for Selected Demographic and Economic Characteristics ................................. 40

Table 6-14 Observed and Predicted Self-Employment Rates, the Greensboro-High Point, NC CMSA ....................................................................................................................................................... 41

CHAPTER 7 Table 7-1 Guilford County Schools Survey of Vendors Demographics, Number of

Respondents...................................................................................................................................................5 Table 7-2 Guilford County Schools Survey of Vendors Demographics, Number of

Employees .......................................................................................................................................................7 Table 7-3 Guilford County Schools Survey of Vendors Demographics, Largest Contract

Awarded ? Prime ..........................................................................................................................................8 Table 7-4 Guilford County Schools Survey of Vendors Demographics, Largest Contract

Awarded ? Subcontractor .........................................................................................................................9 Table 7-5 Guilford County School District, Aggregate Bonding Limit....................................................... 12 Table 7-6 Guilford County School District, Discrimination............................................................................. 14

CHAPTER 8

Table 8-1 Utilization of Firms Analysis, Sub Level, Distribution of Dollars by Business Ownership Classification, Construction ...............................................................................................2

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Table 8-2

Table 8-3

Table 8-4 Table 8-5 Table 8-6

Table 8-7 Table 8-8

Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, Construction, Architecture & Engineering, Professional Services, Other Services, Goods & Supplies ............................................................3

Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business Ownership Classification, All Procurement Categories Combined...........................................4

Narrowly Tailored M/WBE Program Features ...................................................................................7 Proposed MBE and WBE Goals ...............................................................................................................7

Portsmouth Public Schools, Proposed M/WBE Aspirational Goals by Procurement Category ............................................................................................................................. 10

2010 M/W/SBE Aspirational Goals, Charlotte-Mecklenburg Schools ................................... 11

Revenue Definitions for SBE and MBE, Miami-Dade County Public Schools 2013 ................................................................................................................................................................. 18

EXHIBITS

CHAPTER 4 Figure 4-A Examples of Records Excluded................................................................................................................5 Figure 4-B Market Area Analysis, Prime Level, Percentage of Dollars by Business

Category...........................................................................................................................................................7 Figure 4-C Market Area Analysis, Subcontractor Level, Distribution of Dollars by Business

Category...........................................................................................................................................................8 Figure 4-D Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business

Ownership Classification, Construction ............................................................................................. 10 Figure 4-E Utilization of Firms Analysis, Subcontractor Level, Distribution of Dollars by

Business Ownership Classification, Construction........................................................................... 12 Figure 4-F Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business

Ownership Classification, Architecture and Engineering............................................................ 14 Figure 4-G Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business

Ownership Classification, Professional Services ............................................................................. 16 Figure 4-H Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business

Ownership Classification, Other Services .......................................................................................... 18 Figure 4-I Utilization of Firms Analysis, Prime Level, Distribution of Dollars by Business

Ownership Classification, Goods and Supplies............................................................................... 20

CHAPTER 5 Figure 5-A Guilford County School District, Construction..................................................................................4 Figure 5-B Guilford County School District, Construction, Subcontractor...................................................5 Figure 5-C Guilford County School District, Architecture and Engineering ................................................6 Figure 5-D Guilford County School District, Professional Services..................................................................7 Figure 5-E Guilford County School District, Other Services...............................................................................8

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Figure 5-F Guilford County School District, Goods and Supplies ...................................................................9 Figure 5-G T-Test Results for Minority- and Women-Owned Firms, Construction, Prime

Level ................................................................................................................................................................. 10 Figure 5-H T-Test Results for Minority- and Women-Owned Firms, Construction,

Subcontractor Level................................................................................................................................... 11 Figure 5-I T-Test Results for Minority- and Women-Owned Firms, Architecture and

Engineering, Prime Level ......................................................................................................................... 12 Figure 5-J T-Test Results for Minority- and Women-Owned Firms, Professional Services,

Prime Level.................................................................................................................................................... 13 Figure 5-K T-Test Results for Minority- and Women-Owned Firms, Other Services, Prime

Level ................................................................................................................................................................. 14 Figure 5-L T-Test Results for Minority- and Women-Owned Firms, Goods and Supplies,

Prime Level.................................................................................................................................................... 15

CHAPTER 6 Figure 6-A Utilization Analysis of Permits, Commercial Construction at the Prime

Contractor Level............................................................................................................................................5 Figure 6-B Utilization Analysis of Firms, Commercial Construction at the Prime

Contractor Level............................................................................................................................................6 Figure 6-C Utilization Analysis of Permits, Commercial Construction at the Subcontractor

Level ...................................................................................................................................................................7 Figure 6-D Utilization Analysis of Firms, Commercial Construction at the Subcontractor

Level ...................................................................................................................................................................8

CHAPTER 7 Figure 7-A Guilford County Schools Survey of Vendors Demographics, Business Industry .................6 Figure 7-B Guilford County Schools Survey of Vendors Demographics, Number of Years

in Business.......................................................................................................................................................7

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