
Doesn't Affirmative Action create an environment where less
qualified businesses are selected over more qualified businesses?
No. Implicitly, this question presumes an unproven correlation
between a M / WBE {a.k.a. woman owned business } business' ability to
provide a quality product or service and the race, ethnicity, or gender
of its owner(s). Clearly, not all white male owned and operated
businesses are more qualified than businesses owned by non-white
individuals. California's WBE program has never included any form of
"set aside" or other provision requiring that award of a contract be
made without regard to the business' ability to provide the product or
service according to requested specifications; e.g., price, workmanship,
quality, delivery time, etc.
Isn't Affirmative Action reverse discrimination against white
males?
No. Historically and currently, the majority of award decisions
are made by white males. The purpose of affirmative action is to counteract
the effects of past and present discrimination of M / WBE {a.k.a. woman
owned business } and/or preferential treatment, practices that have
effectively excluded firms owned and controlled by persons who are not
white and male. White males can own up to 49 percent of an WBE and, in
fact, approximately 12 percent of certified WBE firms have at least one
white male owner. Additionally, over 24 percent of certified Women Business
Enterprises (WBE) have community property ownership, meaning the businesses
are owned by women whose spouses are white and male.
Are state agencies and educational institutions required to have WBE
goals on their contracts/procurements?
State agencies and educational institutions have never been "required"
to set goals on all of their contracts/procurements. Goals to utilize WBE firms
should be set on specific contracts/procurements only when it is determined
that there are available certified firms to provide the product or service
being sought. This was true prior to the passage of I-200 and has not changed
since its passage. Prior to December 1998, some agencies and institutions set
participation goals on the contracts/procurements they administered and
rejected bids/proposals that did not reflect participation at or above those
levels. This practice was discontinued with the passage of the initiative.
Currently, each state agency/educational institution has the authority to establish voluntary goals on individual contracts/procurements. When they do, prospective bidders/proposers are alerted that a specific level of WBE utilization has been deemed achievable on a specific contract/procurement. However, meeting the goal(s) is not a requirement or even a factor to be considered in determining who is awarded the contract/procurement.
Does OMWBE hold state agencies/educational institutions
accountable for meeting annual WBE goals?
OMWBE reports the annual M /
WBE {a.k.a. woman owned business } WBE goal achievement to the
Governor, Legislature and State Auditor. While OMWBE itself has no
authority to sanction state agencies and educational institutions if they
fail to meet their annual WBE goals, these entities are responsible for
carrying out all duties and responsibilities prescribed by statute and
regulations, including the duty to meet annual WBE goals set by OMWBE
regulations. The regulations apply to all state agencies and educational
institutions that make discretionary expenditures for products and services
covered by the WBE program. The goals enable the agencies/educational
institutions' efforts to be tracked. Agencies can then be held accountable
for the results of their efforts and OMWBE can design narrowly-tailored
programs to ensure all sectors of the State's business community have
access to State contracting and procurement without regard to preference or
discrimination.
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