City of Frederick, MD
2021The City's 2021 study found statistically significant MWBE underutilization in all five procurement categories, with MWBE firms at 25.09 percent of prime dollars overall but 96.58 percent of those dollars concentrated in a single firm.
Commissioned in February 2020 at a not-to-exceed price of $238,000, the study analyzed $91.2 million in prime spending across construction, architecture and engineering, professional services, other services, and goods, in a market area drawn to capture at least 75 percent of prime award dollars. Every category showed significant underutilization that survived regression controls; Professional Services and Goods recorded zero prime MWBE dollars across all five years. The anecdotal record described an entrenched informal network and repeat use of the same firms, and the data chapter found FY2018 had no tracked subcontractors at all. The City responded in late 2021 by creating its Small Business Reserve and MWBE programs and setting annual aspirational goals at the study's measured availability levels.