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Ohio Minority-Owned Businesses See Continued Growth Through
State Purchasing Program
Special to The Truth
For the second consecutive year, the State of Ohio has
exceeded the goal of its Minority Business Enterprise (MBE)
program by purchasing 23.63 percent of eligible goods and
services through certified minority-owned businesses, while
spending a record of nearly $298 million. Ohio’s MBE
program, established in 1980, mandates that state agencies
set aside 15 percent of their annual purchases for goods and
services for certified minority-owned businesses.
“Under the leadership of Governor Kasich, Ohio remains
committed to expanding its base of suppliers by encouraging
qualified minority businesses to work with the state to
supply the goods and services we need to operate,” said
Gregory L. Williams, state equal employment opportunity
coordinator and deputy director of the Equal Opportunity
Division of the Ohio Department of Administrative Services,
which certifies businesses into the MBE program. “As
entrepreneurs utilize this program to grow their businesses,
we are continually looking at ways to enhance the program to
ensure that it better supports business development.”
Out of the eligible expenditures for goods and services
purchased during Fiscal Year (FY) 2016, a total of 21.29
percent were set aside for MBE-certified businesses. Another
2.34 percent of eligible goods and services were purchased
from MBE-certified businesses through open-market contracts.
Ohio’s MBE-certified supplier base remains steady with 282
businesses receiving work in FY 2014, 325 businesses in FY
2015 and 316 in FY 2016, which ended June 30. During this
period state spending with MBE-certified suppliers continued
to grow:
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$165 million in FY 2014
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$228 million in FY 2015
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$297 million in FY 2016
Ohio’s Equal Opportunity Division oversees the MBE program
and helps to ensure equal opportunity access to and fair
treatment in government contracting. It strives to maximize
contracting opportunities through certification of
minority-owned, women-owned and socially and economically
disadvantaged businesses.
“We are excited about the increased spending with Ohio
minority-owned businesses,” said Jeffrey L. Johnson, chief
of the Minority Development Division of the Ohio Development
Services Agency. “Our momentum is strong and we will
continue to help develop and grow Ohio small, minority-owned
and disadvantaged businesses.”
Background
On Dec. 17, 1980, House Bill 584 was signed into law,
establishing the MBE program, which mandated that state
agencies set aside 15 percent of their annual purchases for
goods and services for certified minority-owned businesses.
As a member of the General Assembly in 1980, Governor Kasich
voted to support House Bill 584 and after becoming Ohio’s
governor made its achievement a priority of his
administration.
Since 2011, the state has made steady progress in
identifying set-aside opportunities, certifying
minority-owned businesses and matching them with state
contract opportunities. State agencies, boards and
commissions now produce annual spending plans that project
set-aside contract and procurement opportunities for
qualified MBE-certified businesses, the aggregate value for
which is at least 15 percent. In 2015, Ohio reached the 15
percent goal for the first time.
In addition to MBE set-aside contracts, many minority-owned
firms have secured state contracts through the open market
by bidding against non-minority firms.
State Rep. and President of the Ohio Legislative Black Caucus (OLBC)
Alicia Reece (D-Cincinnati) applauded last week’s
announcement that Ohio met its MBE certification goals for
the second consecutive year since the program was
established over 30 years ago.
“I am proud that we have been able to move a thirty-plus year law
championed by the OLBC from goals and aspirations into
results and reality for Ohio’s African-American and minority
businesses,” said Reece. “This record level of investment is
historic and demonstrates that OLBC’s advocacy and
partnership with the governor and state is leading to a
stronger promise of prosperity and economic opportunity for
our entrepreneurs and business leaders who create jobs and
pay taxes.”
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