Module · Recommendations, committed before the data arrives
Five ways this can come out, and what we would recommend in each
A disparity study is only credible if the recommendation follows the evidence rather than the other way round. So here is the decision architecture in advance: the shape our recommendation takes under each thing the data could turn out to say, at prime and subcontract level, and under each level of data availability we might actually get.
Starting point
The actual 2021 baseline
Disparity index = utilization share divided by availability share. Below 0.80 is the conventional threshold at which underutilization supports an inference of disparity. 1.00 is parity.
| The City's 2021 study, FY2014-FY2018 (actual, not illustrative) | Construction | Architecture & Engineering | Professional Services | Other Services | Goods |
|---|---|---|---|---|---|
| Availability | 41.37% | 39.89% | 31.59% | 29.13% | 15.93% |
| Prime utilization | 29.01% | 15.59% | 0.00% | 7.01% | 0.00% |
| Disparity index | 0.70 | 0.39 | 0.00 | 0.24 | 0.00 |
96.58 percent of all MWBE prime dollars went to a single Asian American-owned construction firm.
The scenarios
What each outcome would mean, and what we would do about it
Prime and subcontract indices shown side by side for all five categories. Red is below the 0.80 threshold at which underutilization supports an inference of disparity.
Reforms worked, and the subcontract layer confirms it
Most categories at or near the 0.80 threshold at both levels, Goods still lagging.
| Disparity index | Construction | A&E | Prof Services | Other Services | Goods |
|---|---|---|---|---|---|
| Prime | 0.92 | 0.85 | 0.71 | 0.83 | 0.62 |
| Subcontract | 0.88 | 0.81 | 0.74 | 0.79 | 0.58 |
The 2021 machinery did what it was built to do. The residual sits in Goods, where availability itself is thin (15.93 percent) and the problem is supply rather than access.
Strongest posture. A program that demonstrates its own success and then steps back is the one courts stop scrutinising.
- Sunset the race-conscious elements on a dated schedule and say so publicly, which is what makes the next challenge survivable.
- Keep the Small Business Reserve, which is race-neutral and carries no constitutional exposure.
- Retain the measurement apparatus. Parity that is not monitored reverts.
- Treat Goods as a supplier-development problem, not a utilization problem.
Primes improved, the subcontract layer is hollow
Prime participation rises while subcontract participation stays near zero.
| Disparity index | Construction | A&E | Prof Services | Other Services | Goods |
|---|---|---|---|---|---|
| Prime | 0.88 | 0.79 | 0.68 | 0.77 | 0.55 |
| Subcontract | 0.31 | 0.22 | 0.09 | 0.18 | 0.11 |
MWBE firms are winning City work as primes and not appearing beneath the large primes at all. Given that thirteen awards above $1 million carry 62 percent of value, this is where most of the money actually is.
Defensible and narrowly aimed. The remedy points at the specific layer the evidence indicts, which is exactly what narrow tailoring means.
- Attach participation goals at the subcontract level, where the gap is, rather than at the prime level, where it has closed.
- Unbundle large contracts into scopes a smaller firm can bond and staff.
- Prompt-payment enforcement with teeth. Slow payment is the most common reason a small sub will not bid a second time.
- Mandatory entity-level subcontractor reporting at bid and at closeout, so the gap stays visible.
Prime looks unchanged, but the constructed record finds participation nobody could see
Prime indices barely move, but real subcontract participation exists and was never measured.
| Disparity index | Construction | A&E | Prof Services | Other Services | Goods |
|---|---|---|---|---|---|
| Prime | 0.71 | 0.41 | 0.06 | 0.27 | 0.02 |
| Subcontract | 0.66 | 0.58 | 0.44 | 0.51 | 0.29 |
The 2021 finding was partly an artefact of what could be counted. This is a live possibility, not a rhetorical one: the prior study had no subcontract layer at all, so any participation there was invisible by construction.
Requires care. A remedy premised on a number the City now knows was wrong is the easiest thing in the world for a challenger to take apart.
- Restate the baseline. A goal calibrated to a number that was never the real number will misfire in both directions.
- Recalibrate aspirational goals to measured availability at both levels.
- Say plainly, in the public report, that the earlier picture was incomplete and why. Credibility for the next twenty years depends on this paragraph.
- Make the constructed record the permanent baseline so this cannot recur.
Neither level moved
Statistically significant underutilization persists in every category at both levels.
| Disparity index | Construction | A&E | Prof Services | Other Services | Goods |
|---|---|---|---|---|---|
| Prime | 0.68 | 0.37 | 0.04 | 0.23 | 0.00 |
| Subcontract | 0.29 | 0.19 | 0.07 | 0.15 | 0.05 |
Five years, three reforms, no movement. The strongest possible evidentiary record, and the one that demands the most disciplined remedy design.
Highest evidentiary support and highest exposure at once. Houston fell in 2026 with a new study in hand, because the remedy was drawn too broadly for the evidence.
- Race-neutral measures first and exhaustively, which Maryland's 2026 reauthorization now requires as a matter of state law rather than preference.
- Any race-conscious element must be category-specific, group-specific, sunset-dated, and severable. Programs fall as a block when they are drafted as a block.
- Document the failure of the race-neutral alternatives already tried. That record is what distinguishes a narrowly tailored remedy from an assumed one.
- Build the annual review the 2021 policy already requires and never received.
Aggregate parity, concentrated in a handful of firms
The headline percentages look healthy. Most of the dollars go to two or three firms.
| Disparity index | Construction | A&E | Prof Services | Other Services | Goods |
|---|---|---|---|---|---|
| Prime | 0.86 | 0.81 | 0.74 | 0.83 | 0.58 |
| Subcontract | 0.79 | 0.72 | 0.61 | 0.70 | 0.44 |
The 2021 study already showed this pattern: 96.58 percent of MWBE prime dollars went to one firm. An aggregate share can reach parity while the market beneath it stays closed, and a study that reports only the share will call that success.
Neutral on its face and hard to attack. Concentration is a market-structure fact, not a racial classification.
- Report dispersion alongside share. A Herfindahl-style concentration measure belongs on the standing scoreboard next to the percentage.
- Anti-concentration provisions: cap the share of goal credit any single firm can carry in a year.
- Target outreach at firms that have never bid rather than at firms already winning.
- Treat graduation as a success condition, not an attrition problem.
The lookback
Five years attempted, three years committed
The City's records clause requires contractors to retain project records for three years after final payment, and grants the City access for audit and transcription over that window. That is the enforceable reach for subcontract data. Prime-level records are City-held and available for the full five years regardless.
Data availability
What the study delivers under each outcome, and how the recommendation changes
Tier B is what this proposal commits to and what the price funds. The others are stated so the City knows in advance what it receives if the record turns out better or worse than the realistic case.
| Outcome | When it happens | What the study delivers | Recommendation posture |
|---|---|---|---|
| Tier AFull five-year record at both levels | City files yield participation forms, subcontractor certificates and pay applications across FY2022-FY2026, and prime confirmation returns strongly. | Disparity analysis at prime and subcontract level for the full study period, with committed-versus-delivered by contract. | Every remedy on the table, each tied to the category and level the evidence supports. |
| Tier BCommittedFive years at prime, three years at subcontract | The realistic case. The records clause compels retention only three years past final payment, so FY2024-FY2026 is the enforceable subcontract window. | Full five-year prime analysis; subcontract analysis across FY2024-FY2026 with the shorter window stated on every table that uses it. | Prime-level remedies at full evidentiary weight. Subcontract-level remedies supported for the three-year window and flagged as such. Retention extension becomes a headline recommendation. |
| Tier CSubcontract data recoverable only in construction | Large construction files carry bonds, certificates and lien waivers; professional-services files often carry none of it. | Subcontract findings limited to the categories where records exist, with the silent categories named rather than averaged into the total. | Remedy scoped to the categories with evidence. No inference carried across into categories where nothing was found. |
| Tier DSubcontract record cannot be constructed | Primes do not respond and City files are thin. The county's outcome. | The study stands on the prime record and the availability survey, with the subcontract gap reported as a finding in its own right rather than a limitation in an appendix. | The forward reporting mandate becomes recommendation number one. A City that cannot measure the layer where the money moves cannot defend a remedy aimed at it. |
Source: Baseline figures are the City's 2021 study (Griffin & Strong, P.C.), report pages 8 to 22 and Appendix F, and are actual. Every scenario figure is illustrative and constructed by HSG to exercise the decision architecture; none is a forecast and none should be quoted as an expected result. Retention and access terms as stated in the City's standard contract provisions accompanying RFP-27-08. Prepared 17 August 2026.