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MBDA Testimony before the House Energy and Commerce Committee


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The Minority Business Development Agency: Enhancing the Prospects for Success

Chairman Rush, Ranking Member Radanovich, and Members of the Subcommittee:

Thank you for inviting the Minority Business Development Agency (MBDA) here today to discuss how MBDA and the Department of Commerce is helping create wealth and jobs in the minority business community and the global economy.

My name is David A. Hinson and I am the National Director of the Minority Business Development Agency, which is an operating bureau of the U.S. Department of Commerce.  I was appointed as the MBDA National Director by Commerce Secretary Gary Locke on July, 15, 2009 and, prior to joining MBDA, I was President and CEO of a multi-million dollar independent, financial advisory boutique.

Joining me today are Edith McCloud, Associate Director for Management, and Efrain Gonzalez, Chief of the Office of Business Development.  They play integral roles in implementing our programs and are both experts in the field of minority business development.

My testimony is organized around three major discussion points.  First, I will provide an overview of MBDA and its accomplishments in assisting the minority business community.  Second, I will briefly address the barriers faced by minority-owned businesses.  Third, I will discuss why MBDA is an important catalyst in building a stronger minority business community. 

I. Overview of MBDA and Its Accomplishments

MBDA History and Mission

MBDA has been in existence for over forty years.  The Agency was originally established as the Office of Minority Business Enterprise by President Nixon on March 5, 1969, pursuant to Executive Order 11458.  By establishing a federal agency dedicated exclusively to minority business enterprise, President Nixon recognized the impact of minority businesses on the nation’s economy and on the general welfare of the country.

On October 13, 1971, President Nixon issued Executive Order 11625, which clarified the Agency’s authority and expanded the scope of its operations.  The Agency continues to be authorized by Executive Order 11625, as amended, and receives annual appropriations from Congress. 

Under Executive Order 11625, MBDA is responsible for: 

• Coordinating the plans, programs and operations of federal agencies to strengthen minority business enterprises (MBEs);

• Promoting the mobilization of activities and resources of state and local governments, businesses and trade associations, universities, foundations, professional organizations towards the growth of MBEs;
• Establishing a center for the development, collection, summarization and dissemination of information for and about minority businesses; and

• Providing financial assistance to public and private organizations so they may render technical and management assistance to MBEs.

MBDA’s vision is economic prosperity for all American business enterprises and the Agency’s mission is to foster the growth and global competitiveness of U.S. businesses that are minority-owned.  MBDA is the only federal agency created specifically to facilitate equal economic opportunity for the nation’s minority-owned businesses.

Eliminating discriminatory barriers and thereby creating financial opportunity in communities of color is the most effective means to secure personal and family well-being and to reduce dependence on government services. Wealth creation provides an opportunity for more citizens to make philanthropic investments, engage in civic activities and to increase savings.  It is my mission that each Member of Congress comes to understand the positive economic contributions that MBDA makes both in their local communities and to the entire nation.

Delivery of Services

MBDA’s service delivery program was developed in collaboration with the Tuck School of Business at Dartmouth College.  Through this collaboration, the Agency’s service delivery model follows a systems-integrated approach and is supported by the following key components:

• Strategy – plans for achieving sustainable competitive advantage and creating customer value;
• Processes – efficiencies and effective ways of manufacturing products or delivery of services;
• Architecture – organizational and value chain structure to implement the strategy and key processes;
• Resources – the acquisition and management of financial, human, and technical assets;
• Systems – mechanisms for control and communication, including, but not limited to, management information systems (MIS); and
• Employee Empowerment – delegation in a way that encourages staff to pursue strategic initiatives and continuous improvement.

Based upon the needs of the client, MBDA provides the following business consulting services through its nationwide network of minority business centers:

• Business consulting;
• Procurement matching;
• Private equity and venture capital sourcing;
• Bonding assistance and loan packaging;
• Strategic partnering (e.g., business-to-business, teaming, joint ventures, etc.); and
• Market promotion of clients to prime contractors and other buyers.

MBDA provides services to minority businesses of all sizes, but places an emphasis on those firms with $1M or more in annual revenue.  Through its strategic growth initiative, MBDA aims to create a new generation of businesses with $100M in annual revenue, which in turn will generate more jobs and provide a substantial increase to the nation’s tax base.  MBDA further targets growth industries, such as, but not limited to, clean energy, green technology and healthcare information technology, and follows a low-volume/high-margin business model.

MBDA is sometimes confused with the U.S. Small Business Administration (SBA).  In fact, MBDA works with SBA on several initiatives, but our programs and primary focuses are different.  The nature of the confusion usually lies with the assumption that minority businesses are small businesses.  While the majority of minority businesses are small, MBDA maximizes taxpayer dollars by focusing on those firms that generate the greatest economic impact and job creation.  Therefore, MBDA often works with minority firms that exceed SBA size standards.

Research and Information Dissemination

The MBDA Office of Knowledge Management is the research arm of MBDA and manages the Agency’s institutional knowledge.  This unit administers and disseminates cutting-edge research studies, reports and MBE fact sheets to a broad constituency and serves a key role in educating government and external stakeholders with respect to policies and programs impacting the MBE community.  MBDA maintains a comprehensive library of reports and other publications, which are available to the public and accessible through the MBDA Internet website at: http://www.mbda.gov under the “Publications” tab.

MBDA Nationwide Network of Minority Business Centers

MBDA funds a nationwide network of 46 business centers across the following three MBDA programs:  Minority Business Enterprise Center (MBEC); Native American Business Enterprise Center (NABEC); and Minority Business Opportunity Center (MBOC), all of which are operated as public/private partnerships.  The business centers provide MBEs with a diverse range of individually customized business consulting services, including, but not limited to, assistance in formulating strategic growth plans, marketing campaigns, management and technical assistance and financial planning.  The centers are staffed by professional business consultants who have the knowledge and practical experience necessary to operate successful and profitable businesses.  Clients of the centers include business owned or controlled by Native Americans, Hasidic Jewish Americans, Native Hawaiians, Asian Americans, Alaska Natives, Pacific Islanders, Hispanic Americans and African Americans.

The Economic Impact of an MBDA Center

It is important to stress that this country needs strong minority businesses to achieve maximum economic growth.  This point is further supported by the U.S. Census data (discussed below), which indicates that by the year 2050 the population of this country will be majority-minority (people of color).  The positive economic impacts generated by MBDA centers are substantial and contribute importantly to the nation’s economic recovery and future growth.  On an annual basis, each MBDA center helps to secure an average of $23.5 million worth of contracts for minority firms and our high performing centers help to secure more than $100 million in contracts.  Each MBDA center also helps to generate an average of $24.8 million worth of financial investment in minority firms and our high performing centers secure more than $100 million in financial investments per year.  These contracts and investments directly support increased economic activity within the local community and throughout the region. 

MBDA centers provide management and technical assistance to minority owned businesses that result in additional contracts and financings that create jobs.  The creation of these jobs results in new taxes and spending in the minority communities where these businesses conduct their transactions.  Each MBDA center helps create an average of 121 new jobs per year with an annual average salary of $30,000.  As a result of the new jobs, 121 people in that community are shopping at local stores, expanding the economic and tax bases and providing services to others in their community.  An effective MBDA center can reduce unemployment, build stronger businesses, expand the tax base, create wealth, foster economic investments and bring global businesses to local and regional communities. 

American Recovery and Reinvestment Act of 2009 (Recovery Act)

MBDA must play a vital role in the successful implementation of the Recovery Act, which is a high priority of President Obama and is critical to the federal government’s efforts to jumpstart and to build the national economy.  The current economic environment presents a heightened challenge to the millions of minority business throughout the United States and the jobs that they create in local communities.  Many of these businesses rely on federal, state and local government contracting opportunities as a primary source of business. 

Specifically, Vice President Biden has asked Commerce Secretary Locke and SBA Administrator Mills to develop and to implement strategies to increase the participation of small and minority businesses in the Recovery Act.  Secretary Locke has directed MBDA to assume a lead role in achieving this important goal. 

To this end, MBDA has redirected $900K of its general FY 2009 appropriation (MBDA did not receive Recovery Act funds) to several of its business centers to focus specifically on Recovery Act opportunities for MBEs and is actively assisting its entire nationwide network of business centers and strategic partners in securing such opportunities for MBEs.  MBDA has also conducted and participated in national, regional and local meetings, forums, workshops, conferences and web seminars to disseminate Recovery Act information and to provide technical and management assistance to minority businesses.  MBDA has expanded its database of minority businesses and is able to provide this information to Recovery Act (and to other) procurement representatives upon request.  Importantly, MBDA is developing tracking systems so that it may monitor, evaluate and provide on-going recommendations with respect to the inclusion of MBEs in Recovery Act opportunities.

MBDA’s Performance Accomplishments

MBDA’s performance is evaluated primarily based on the annual number of new jobs created, and based on the total dollar value of contract awards and the total annual dollar value of financing transactions (e.g., equity financings, loans and other capital infusions) generated by the Agency. 

In FY 2008, MBDA and its nationwide network of business centers helped generate $1.034 billion in contracts and $1.090 billion in financial transactions for MBEs.  In FY 2008, MBDA also helped generate 5,316 new jobs and served 3,974 new clients.  In FY 2009, based on MBDA’s preliminary estimates, the Agency helped generate $2 billion in contracts and $729 million in financial transactions for MBEs.  In FY 2009, MBDA also estimates that the Agency helped generate 2,362 new jobs and served 3,045 new clients.  These performance accomplishments are noteworthy, especially in light of the nation’s economic environment during this period. 

While the numbers clearly illustrate MBDA’s tremendous value to the minority business community, as well as to the nation’s overall economy, the Agency’s impact is localized and perhaps more tangible through its many success stories.  For example, in Chicago, Illinois, an MBDA center provided an IT consulting firm with a comprehensive needs assessment, customized business consulting services, and with contract acquisition matching and bid assistance.  These services directly led to a $1.2 million increase in sales for the firm and created 8 new jobs in Chicago.

II. Barriers and Challenges Faced by Minority Businesses

Congress has conducted numerous hearings, and has received numerous reports, that demonstrate the persistence of discriminatory barriers that continue to limit contracting opportunities for minority businesses.  Evidence shows that these businesses (as well as women-owned businesses) face, among other barriers, discrimination in lending and access to capital; exclusion from business networks; and discrimination by prime contractors who reject participation on projects by minority subcontractors.  The evidence further demonstrates that the government must undertake efforts to level the playing field for minority business (and for women-owned businesses) to avoid becoming, in Justice O’Connor’s words, “a ‘passive participant’ in a system of racial [or gender] exclusion practiced by elements of the local * * * industry.”  City of Richmond v. Croson, 488 U.S. 469, 492 (1989) (opinion of O’Connor, J.). Unless these barriers are eliminated, minority businesses will continue to lag behind their non-minority counterparts undermining the ability of the nation to quickly regain its economic footing and to build a sustainable economy.  As part of my written testimony, I am submitting the materials contained in Appendix A and B.  Specifically, Appendix A provides a list of hearings and materials that have been presented to Congress and Appendix B provides a list of state and local government disparity studies. 

Studies conducted by MBDA over the last 10 years have cited other challenges faced by minority businesses.  These obstacles include: an underutilization of technology solutions; lower levels of education and business experience; and a narrow portfolio of products, services and customers.  Consequently, MBDA partnered with the private sector to design services to meet these challenges.  For example, MBDA worked with Microsoft and the Information Technology Association of America to conduct a series of technology workshops focused on e-business solutions.  To address the issue of business experience and education, MBDA partnered with the Tuck School of Business at Dartmouth College to provide executive education to minority entrepreneurs.  Through this partnership, numerous minority business owners went through a week long program that enhanced their strategic thinking and business planning capabilities.  Finally, to address the challenge of limited customers, MBDA has created opportunities for minority entrepreneurs to partner with major corporations through Business-to-Business matchmaking events and to expand globally by leveraging federal resources offered through the U.S. & Foreign Commercial Service, the Export-Import Bank, and the Overseas Private Investment Corporation.  In spite of these efforts, more needs to done to reach the more than four million minority business enterprises struggling in today economic climate.

III. Why MBDA is an Important Catalyst in Building a Stronger Minority Business Community

Projected Growth of the Minority Population and the Benefits of Economic Parity

Based on U.S. Census data, minorities currently represent approximately 33 percent of the U.S. population and it is estimated that minorities will represent 54 percent of total U.S. population in the year 2050.  

Minority businesses make a substantial contribution to the U.S. economy, generating $661 billion in total gross receipts in 2002 and employing approximately 4.7 million people with an annual payroll totaling $115 billion.   However, this represented only 7.5 percent of the total gross receipts generated by all U.S. businesses (excluding publicly-held firms), notwithstanding that in 2002 the adult minority population represented 29 percent of the total U.S. adult population.  These disparities underscore the opportunity gap that still exists in the U.S. economy. 

MBDA’s long-term strategic goal is to eliminate discriminatory barriers so that MBEs may achieve economic parity.  If minority businesses were to generate total gross receipts in relation to the minority population, the U.S. economy would benefit from an additional $1.8 trillion in annual gross receipts, 11.4 million new jobs and an additional tax base exceeding $100 billion per year.   Moreover, minority firms have the potential to contribute significantly to the balance of trade as they are twice as likely to generate sales through exports compared to non-minority firms.   It is clear that the nation needs strong minority businesses to achieve maximum and sustainable economic growth, and that MBDA is a catalyst in growing minority businesses to size, scale and capacity.

A more comprehensive discussion regarding economic parity for MBEs and on the business characteristics of MBEs is available in the following two MBDA publications:  The State of Minority Business Enterprises, An Overview of the 2002 Survey of Business Owners, Number of Firms, Gross Receipts, and Paid Employees; and the Characteristics of Minority Businesses and Entrepreneurs, An Analysis of the 2002 Survey of Business Owners.  These reports contain and examine in detail the empirical data summarized in my testimony and are also accessible to the public through the MBDA website at:  http://www.mbda.gov (publications tab).  In addition, I have provided these two reports to the Subcommittee’s staff and respectfully request that Chairman include both reports into the official hearing record.

Obstacles to the Growth and Competitiveness of Minority Businesses
and MBDA Strategic Priorities

There is a continued need to implement programs that address the needs of minority businesses and to help them grow, particularly in annual sales and employment, and to close the economic parity gap.  Challenges in developing capacity, including lack of capital, increased contract bundling and intensified supply chain competition, among others factors, are adversely affecting the growth and competitiveness of minority businesses.  Programs tailored to minority firms with $1M or more in annual revenue, such as those at MBDA, are increasing access to marketplaces and capital for minority businesses. 

In order to build a stronger minority business community, MBDA has identified the following three strategic priorities and is implementing programs to achieve these goals:

• Improve marketplace access and opportunities for minority businesses;
• Improve access to traditional and non-traditional sources of capital for minority business; and
• Continue to serve as a knowledge center and valuable resource for minority businesses and for other stakeholders. 


IV. Conclusion

I would again like to thank Chairman Rush, Ranking Member Radanovich and the entire Subcommittee on Commerce, Trade, and Consumer Protection for allowing me to testify before you today.  The Department of Commerce and MBDA are very encouraged by this opportunity and look forward to working with you to create an environment where minority firms have an equal opportunity to participate in the marketplace.  I respectfully request that my written testimony, including the appendix and the two MBDA reports referenced in Section III, be included in the official hearing record. 

I welcome your questions.    

V. Appendix

Appendix A: Evidence of the Impact of Discrimination and its Lingering Effects on the Public Procurement Market:  Recent Congressional Hearings Addressing Public Procurement and Minority- and Women-Owned Business Enterprises

Appendix B: State and Local Government Disparity Studies
 
APPENDIX A

Evidence of the Impact of Discrimination and its Lingering Effects on the Public Procurement Market

Recent Congressional Hearings
Addressing Public Procurement and
Minority- and Women-Owned Business Enterprises

1. Reauthorization of Small Business Administration Financing and Entrepreneurial Development Programs Before the S. Comm. on Small Business and Entrepreneurship, 109th Cong. (April 26, 2006)

2.  Diversity: The GAO Perspective Before the H. Subcomm. on Oversight and Investigations of the H. Comm. on Financial Services, 109th Cong. (July 12, 2006)

3.  Strengthening Participation of Small Businesses in Federal Contracting and Innovation Research Programs Before the S. Comm. on Small Business and Entrepreneurship, 109th Cong. (July 12, 2006)

4.  Full Comm. Field Hearing on Participation of Small Business in Hurricane Katrina Recovery Contracts Before the H. Comm. on Small Business, 110th Cong. (April 12, 2007)

5.  Minority Entrepreneurship: Assessing the Effectiveness of SBA’s Programs for the Minority Business Community Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (May 22, 2007)

6.  Full Comm. Hearing on the Small Business Administration’s Microloan Program Before the H. Comm. on Small Business, 110th Cong. (June 14, 2007)

7.  Increasing Government Accountability and Ensuring Fairness in Small Business Contracting Before the S. Comm. on Small Business & Entrepreneurship, 110th Cong. (July 18, 2007)

8.  Diversifying Native Economies Oversight Hearing Before the H. Comm. on Natural Resources, 110th Cong. (September 19, 2007)

9.  Expanding Opportunities for Women Entrepreneurs: The Future of Women’s Small Business Programs Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (September 20, 2007)

10.  Federal Contracting: Removing Hurdles for Minority-Owned Small Businesses Before the H. Subcomm. on Government Management, Organization, and Procurement of the H. Comm. on Oversight and Government Reform, 110th Cong. (September 26, 2007)
11.  Full Comm. Hearing to Consider Legislation Updating and Improving the SBA’s Contracting Programs Before the H. Comm. on Small Business, 110th Cong. (October 4, 2007)

12.  Mortgage Lending Discrimination Before the H. Comm. on Financial Services, 110th Cong. (October 15, 2007)

13.  Access to Federal Contracts: How to Level the Playing Field Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (October 29, 2007)

14.  Preserving and Expanding Minority Banks Before the H. Subcomm. on Oversight and Investigations of the H. Comm. on Financial Services, 110th Cong. (October 30, 2007)

15.  Full Comm. Hearing on SBA's Progress in Implementing the Women's Procurement Program Before the H. Comm. on Small Business, 110th Cong., (January 16, 2008)

16.  Holding the Small Business Administration Accountable: Women's Contracting and Lender Oversight Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (January 30, 2008)

17.  Diversity in the Financial Services Sector Before the H. Subcomm. on Oversight and Investigations of the H. Comm. on Financial Services, 110th Cong. (February 7, 2008)

18.  Military Base Realignment: Contracting Opportunities for Impacted Communities Before the H. Subcomm. on Government Management, Organization, and Procurement of the H. Comm. on Oversight and Government Reform, 110th Cong. (February 8, 2008)

19.  Community Reinvestment Act: Thirty Years of Accomplishments, But Challenges Remain Before the H. Comm. on Financial Services, 110th Cong. (February 13, 2008)

20.  Doing Business with the Government: The Record and Goals for Small, Minority, and Disadvantaged Businesses Before the H. Subcomm. on Economic Development, Public Buildings, and Emergency Management of the H. Comm. on Transportation and Infrastructure, 110th Cong. (March 6, 2008)

21.  Subcomm. Hearing on Oversight of the Entrepreneurial Development Programs Implemented by the Small Business Administration and National Veterans Business Development Corporation Before the H. Subcomm. on Rural and Urban Entrepreneurship of the H. Comm. on Small Business, 110th Cong. (March 12, 2008)

22.  Women in Business: Leveling the Playing Field Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (March 19, 2008)

23.  Subcomm. Hearing on Minority and Hispanic Participation in the Federal Workforce and the Impact on the Small Business Community Before the H. Subcomm. on Regulations, Health Care, and Trade of the H. Comm. on Small Business, 110th Cong. (April 23, 2008)

24.  Opportunities and Challenges for Women Entrepreneurs on the 20th Anniversary of the Women's Business Ownership Act Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (September 9, 2008)

25.  Business Start-Up Hurdles in Underserved Communities: Access to Venture Capital and Entrepreneurship Training Before the S. Comm. on Small Business and Entrepreneurship, 110th Cong. (September 11, 2008)

26.  How Information Policy Affects Competitive Viability in Minority Contracting Before the Subcomm. on Information Policy, Census, and National Archives of the H. Comm. on Oversight and Government Reform, 110th Cong. (September 24, 2008)

27.  Infrastructure Investment: Ensuring an Effective Economic Recovery Package Before the H. Comm. on Transportation and Infrastructure, 111th Cong. (January 22, 2009)

28.  FAA Reauthorization Act of 2009 Before the H. Subcomm. on Aviation of the H. Comm. on Transportation and Infrastructure, 111th Cong. (February 11, 2009)

29.  Full Comm. Hearing on the State of the SBA's Entrepreneurial Development Programs and Their Role in Promoting an Economic Recovery Before the H. Comm. on Small Business, 111th Cong. (February 11, 2009)

30.  Full Comm. Hearing on Oversight of the Small Business Administration and its Programs Before the H. Comm. on Small Business, 111th Cong. (March 25, 2009)

31.  DOT's Disadvantaged Business Enterprises Programs Before the H. Comm. on Transportation and Infrastructure, 111th Cong. (March 26, 2009)

32.  Recovery Act Contracting and Role of Small Business Before the S. Comm. on Small Business and Entrepreneurship, 111th Cong. (May 21, 2009)

33.  Minority Broadcast Ownership Before the H. Judiciary Comm., 111th Cong. (July 9, 2009)

34.  Roundtable on Heathcare Reform: Small Business Concerns and Priorities, 111th Cong. (July 9, 2009)


35.  Doing Business with the Government: The Record and Goals for Small, Minority and Disadvantaged Businesses, H. Transp. Comm., 111th Cong.  (September 17, 2009).  Available at: http://transportation.house.gov/News/PRArticle.aspx?NewsID=1003

36.  Senate Roundtable on Minority Entrepreneurship: Evaluating Small Business Resources and Programs, Sen. Comm. on Small Bus. & Entrepreneurship, 111th Cong. (September 24, 2009), Serial No. 111-. Available at: http://sbc.senate.gov/public/index.cfm?p=Hearings&ContentRecord_id=f364697c-1f0a-4499-a37b-fc7b86859585&ContentType_id=14f995b9-dfa5-407a-9d35-56cc7152a7ed&Group_id=43eb5e02-e987-4077-b9a7-1e5a9cf28964

Other Congressional Evidence

A. 2006

37.  Statements on Introduced Bills and Joint Resolutions, 152 Cong. Rec. S3213-01 (April 6, 2006). Available at: 2006 WL 890535.

38.  H. Small Business Comm., SCORECARD VII: FAULTY ACCOUNTING BY ADMINISTRATION RESULTS IN MISSED OPPORTUNITIES FOR SMALL BUSINESSES (July 26, 2006).  Available at: www.house.gov/smbiz/Reports/ScoreCardVIIFINAL.pdf.

39.  Statements on Introduced Bills and Joint Resolutions, 152 Cong. Rec. S8612 (August 2, 2006).  Available at: 2006 WL 2163661.

40.  Statements on Introduced Bills and Joint Resolutions, 152 Cong. Rec. S10289 (September 27, 2006).  Available at: 2006 WL 2771447.

41.  Report on the Activity of the Committee on Financial Services for the 109th Congress, H.R. Rep. 109-742 (January 2, 2007).  Available at:109 H. Rpt. 742 (Lexis).

B. 2007
 
42.  Introduction of Minority Entrepreneurship, 153 Cong. Rec. E828-01 (April 23, 2007).  Available at: 2007 WL 1188161.

43.  Debate on Small Business Lending Improvements Act of 2007, 153 Cong. Rec. H4108 (April 25, 2007).  Available at: 2007 WL 1217464.

44.  Statements on Introduced Bills and Joint Resolutions, 153 Cong. Rec. S8064 (June 20, 2007).  Available at: 2007 WL 1773921.

45.  Report from H. Comm. on Financial Services, H.R. Rep. No. 110-278 (July 30, 2007).  Available at: 110 H. Rpt. 278 (Lexis).

46.  Report on Small Business Lending Reauthorization and Improvements Act of 2007, S. Rep. No. 110-154 (September 12, 2007).  Available at: 110 S. Rpt. 154 (Lexis).

47.  House Report of FAA Reauthorization Act of 2007, H.R. Rep. No. 110-331 (September 17, 2007). Available at: 110 H. Rpt. 331 (Lexis).

48.  Report on the Small Business Venture Capital Act of 2007, S. Rep. 110-199 (October 16, 2007).  Available at 110 S. Rpt. 199 (Lexis).

49.  Report on Small Business Contracting Program Improvements Act, H.R. Rep. No. 110-400 (October 22, 2007).  Available at: 110 H. Rpt. 400 (Lexis).

50.  HREuQuant, INCREASING THE CAPACITY OF THE NATION’S SMALL AND DISADVANTAGED BUSINESSES (SDBS) (October 16, 2007).  Available at: informationpolicy.oversight.house.gov/.../20080924161641.pdf.

51.  Debate on Small Business Contracting Program Improvements Act, 153 Cong. Rec. H12170 (October 30, 2007).  Available at: 2007 WL 3170798.

52.  Statements on Introduced Bills and Joint Resolutions, 153 Cong. Rec. S13686 (November 1, 2007).  Available at: 2007 WL 3226074.

C. 2008

53.  Government Accountability Office, MEDIA OWNERSHIP: ECONOMIC FACTORS INFLUENCE THE NUMBER OF MEDIA OUTLETS IN LOCAL MARKETS, WHILE OWNERSHIP BY MINORITIES AND WOMEN APPEARS LIMITED AND IS DIFFICULT TO ASSESS (March 2008).  Available at: http://www.gao.gov/products/GAO-08-383.
 
54.  SBIR/STTR Reauthorization Act Before the House Committee on Small Business, H.R. Rep. No. 110-595, pt. 1, (April 18, 2008).  Available at: 110 H. Rpt. 595 (Lexis).  

55.  Committee on Homeland Security Majority Staff, SMALL, MINORITY, AND DISADVANTAGED BUSINESS IN THE DEPARTMENT OF HOMELAND SECURITY-- SELECTED ASPECTS, FY07 (May 2008).  Available at:

56.  Report to the U.S. Congress on Minority Small Business and Capital Ownership Development, Associate Administrator, Government Contracting and Business Development, Small Business Administration, 154 Cong. Rec. S9201-05.  Available at: 2008 WL 4299178.

57.  Federal Aviation Administration Act of 2008, Part II, 154 Cong. Rec. S9338-01, (September 23, 2008).  Available at:  2008 WL 4329851.

58.  Federal Aviation Administration Act of 2008, Part II, 154 Cong. Rec. H8588-02, (September 23, 2008).  Available at: 2008 WL 4329680.

59.  Extension of Remarks on the Disadvantaged Business Program, 154 Cong. Rec. E2174 (September 30, 2008).  Available at: 2008 WL 4411976.

D. 2009

60.  Report on the Activities of the Comm. on Oversight and Government Reform, H.R. Rep. No. 110-930 (January 2, 2009).  Available at: http://web.lexis-nexis.com/congcomp/document?_m=f01934f39c0be6a8caa16fb3b9568e35&_docnum=1&wchp=dGLbVlb-zSkSA&_md5=5ea445d0c8e9b3f2b0ef295c389581e2

61.  Report on Summary of Legislative and Oversight Activities During the 110th Congress, S. Rep. No. 111-2 (January 9, 2009).  Available at: 111 S. Rpt. 2 (Lexis).

62.  Debate on Enhancing Small Business Research and Innovation Act of 2009, 155 Cong. Rec. H7757 (July 8, 2009).  Available at: 2009 WL 1953905.

 
APPENDIX B

State and Local Government Disparity Studies

1. Measuring Business Opportunity: A Disparity Study of NCDOT’s State and Federal Programs, prepared by Equant for the North Carolina Department of Transportation (July 27, 2009)

2. City of Davenport Disparity Study Regarding Minority and Women Participation in Contracting, prepared by Mason Tillman Associates, Ltd. for the Davenport, Iowa (June 2009)

3. San Antonio Regional Business Disparity Causation Analysis Study, prepared by MGT of America for the City of San Antonio, Texas (April 6, 2009)

4. Availability Analysis and Disparity Study for the Arizona Department of Transportation: Final Report, prepared by MGT of America for the Arizona Department of Transportation (March 26, 2009)

5. Consortium Disparity Study Update, prepared by BBC Research & Consulting for the City of Albany, Georgia; Dougherty County, Georgia; Dougherty County School System; Albany Water, Gas & Light Commission; and Albany Tomorrow, Inc. (August 20, 2008)

6. A Disparity Study for the City of Saint Paul and the Saint Paul Housing and Redevelopment Authority, Saint Paul, Minnesota, prepared by MGT of America for the City of Saint Paul and the Redevelopment Authority of Saint Paul (August 4, 2008)

7. Measuring Minority  and Woman Owned Construction and Professional Service Firm Availability and Utilization, prepared by CRA International for the San Mateo County Transit District and the Peninsula Corridor Joint Powers Board (April 14, 2008)

8. Race, Sex, and Business Enterprise: Evidence from the City of Austin, prepared by NERA Economic Consulting for the City of Austin, TX (May, 2008)

9. Alaska Disadvantaged Business Enterprise Study – Availability and Disparity, prepared by D. Wilson Consulting Group, LLC for the Alaska Department of Transportation and Public Facilities (June 6, 2008)

10. A Second Generation Disparity Study, prepared by MGT of America, Inc. for the City of Dayton, Ohio (August 8, 2008)

11. Race, Sex, and Business Enterprise: Evidence from Memphis, Tennessee, prepared by NERA Economic Consulting for the Memphis Shelby County Airport Authority (December 18, 2008)
 
12. Quantitative Analysis of the Availability of Minority- and Women-Owned Businesses and their Utilization by the Corpus Christi Regional Transportation Authority, prepared by Jim Lee, Ph.D. for the Corpus Christi Regional Transportation Authority (November 2007)

13. City of Birmingham: Disparity Study Report, prepared by Pendleton, Friedberg, Wilson & Hennessey, P.C. for the City of Birmingham, Alabama (September 28, 2007)

14. Commonwealth of Pennsylvania Department of General Services: Disparity Study in Building Construction and Building Design, prepared by Mason Tillman Associates, Ltd. for the Commonwealth of Pennsylvania Department of General Services (August 2007)

15. City of Philadelphia Fiscal Year 2006 Annual Disparity Study, prepared by Econosult Corporation for the City of Philadelphia Department of Finance (May 30, 2007)

16. Measuring Minority- and Woman-Owned Construction and Professional Service Firm Availability and Utilization, prepared by CRA International for the Santa Clara Valley Transportation Authority (December 14, 2007)

17. State of Tennessee Department of Transportation, prepared by Mason Tillman Associates, Ltd. for the Tennessee Department of Transportation (December 11, 2007)

18. Final Report for Development and Revision of Small, Minority and Women Enterprise Program, Nashville International Airport, prepared by Griffin & Strong, P.C. for the Metropolitan Nashville Airport Authority (September 19, 2007)

19. A Study to Determine DBE Availability and Analyze Disparity in the Transportation Contracting Industry in Idaho, prepared by BBC Research & Consulting for the Idaho Transportation Department (2007)

20. Availability and Disparity Study for the California Department of Transportation, prepared by BBC Research & Consulting for the California Department of Transportation (2007)

21. Availability and Disparity Study for the Nevada Department of Transportation, prepared by BBC Research & Consulting for the Nevada Department of Transportation (2007)

22. Disadvantaged Business Enterprise Disparity Study, prepared by MGT of America, Inc. for the Oregon Department of Transportation (2007)

23. The Prince George’s County Government: Disparity Study Final Report, prepared by D.J. Miller & Associates, Inc. for the Prince George’s County Government (November 15, 2006)

24. State of New Jersey Construction Services: Disparity Study 2003-2004, prepared by Mason Tillman Associates, Ltd. for the New Jersey Disparity Study Commission (June 2006)

25. Minority Business Shares of Prime Contracts Approved by the Board of Pittsburgh Public Schools, January-September 2005, prepared by the University of Pittsburgh Center on Race and Social Problems (June 2006)

26. Multi-Jurisdictional Disparity Study Consultant Services: Hillsborough County Aviation Authority and City of Tampa, prepared by Mason Tillman Associates, Ltd. for the Hillsborough County Aviation Authority Office and City of Tampa, Florida (April 2006)

27. Race, Sex and Business Enterprise: Evidence from the State of Maryland, prepared by NERA Economic Consulting for the Maryland Department of Transportation (State Highway Administration, Maryland Aviation Administration, and Maryland Transit Administration) (2006)

28. Race, Sex, and Business Enterprise: Evidence from Denver, Colorado, prepared by NERA Economic Consulting for the City and County of Denver, Colorado (2006)

29. City of Atlanta Disparity Study, prepared by Griffin and Strong for the City of Atlanta (2006).  Race, Sex and Business Enterprise: Evidence from the Commonwealth of Massachusetts, Vol. I, prepared by NERA Economic Consulting for the Massachusetts Housing Finance Agency (2006)

30. Analysis of Essex County Procurement and Contracting: Final Report, prepared by the University of Minnesota Disparity Study Research Team for the County of Essex Disparity Study Commission (October 31, 2005)

31. Washington Suburban Sanitary Commission 2005 Disparity Study: Summary and Recommendations, prepared by BBC Research & Consulting for the Washington Suburban Sanitary Commission (June 24, 2005)

32. Race, Sex and Business Enterprise: Evidence from the State of Washington, prepared by NERA Economic Consulting for the Washington State Department of Transportation (October 20, 2005)

33. Race, Sex and Business Enterprise: Evidence from the State of Minnesota, prepared by NERA Economic Consulting for the Minnesota State Department of Transportation (October 20, 2005)

34. State of New Jersey Disparity Study of Procurement in Professional Services, other Services, and Goods and Commodities, prepared by Mason Tillman Associates, Ltd. for the New Jersey Department of State (2005)

35. The City of Phoenix Minority-, Women-Owned, and Small Business Enterprise Program Update Study, prepared by MGT of America, Inc. for the City of Phoenix (2005)

36. Georgia Department of Transportation Disparity Study, prepared by Boston Research Group for the State of Georgia (2005)

37. The City of Bridgeport Disparity Study Regarding Minority Participation in Contracting, presented by Mason Tillman Associates, Ltd. for the City of Bridgeport Connecticut (August 2005)

38. The City of New York Disparity Study, presented by Mason Tillman Associates, Ltd. for the City of New York (2005)

39. Metropolitan Government of Nashville and Davidson County: Disparity Study Final Report, prepared by Griffin and Strong for Nashville and Davidson County (December 15, 2004)

40. Alameda County Availability Study, prepared by Mason Tillman Associates, Ltd. for the County of Alameda (October 2004)

41. Disparity Study for the City of Peoria, prepared by Kevin O’Brien, Ph.D. for the City of Peoria (July 2004)

42. Disadvantaged Business Enterprise Availability Study, for the Missouri Department of Transportation, prepared by NERA Economic Consulting for the Missouri State Department of Transportation (2004)

43. A Procurement Disparity Study of the Commonwealth of Virginia, prepared by MGT of America, Inc. for the Commonwealth of Virginia (2004)

44. A Procurement Disparity Study of the State of North Carolina, prepared by MGT of America, Inc. for the State of North Carolina (2004)

45. Race, Sex, and Business Enterprise: Evidence from the State of Illinois and the Chicago Metropolitan Area, prepared by NERA Economic Consulting for the Illinois State Toll Highway Authority (2004)

46. Colorado Department of Transportation Disparity Study Update, prepared by MGT of America for the Colorado Department of Transportation (April 6, 2001)

47. Broward County Small Disadvantaged Business Enterprise (SDBE) Study, prepared by MGT of America for the Broward County Board of Commissioners (2001)

48. Kansas Department of Transportation Availability and Goal Setting Study, prepared by MGT of America for the Kansas Department of Transportation (2001)

49. Disparity Study for the Commonwealth of Kentucky, prepared by Griffin and Strong for the Commonwealth of Kentucky (2000)

Written Testimony of David A. Hinson, National Director, Minority Business Development Agency, U.S. Department of Commerce

Before the U.S. House of Representatives Committee on Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection

October 15, 2009 at 1:00 p.m.

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