Carrboro Disparity Study 

Our Commitment

The Town of Carrboro is focused on rooting out systemic barriers that have created economic inequities for people of color and women. An essential part of this work is to strengthen business opportunities and increase the diversity of businesses that contract with the Town. We are committed to setting an example for racial equity action and undertook a Disparity Study to make sure these actions are effective and sustainable.

Carrboro Study Details

The Town of Carrboro contracted with Griffin & Strong in 2023 to conduct a Disparity Study. It analyzed procurement data from July 1, 2017, to June 30, 2022, in five categories: Construction, Architecture and Engineering (A&E), Professional Services, Other Services, and Goods.

What is a Disparity Study?

Disparity Studies are used to determine whether a disparity exists between the number of Minority- and Women-Owned Firms (M/WBE) within the market and the number of these firms utilized by the Town in its procurement process. It is a tool to help identify potential active, or passive, discrimination in the purchasing process to understand and mitigate any barriers or systemic inequities that may exist.

What is the Purpose of a Disparity Study?

Disparity studies provide the legal basis for the implementation of race or gender inclusion programs. There must be strong evidence of disparity even after controlling for capacity, availability, and other race- and gender-neutral factors to introduce remedies to increase the utilization of M/WBE firms in the Town’s procurement. 

What Does a Disparity Study Involve?

• Geographic & Product Area Analysis: A survey of where the Town spends most of its dollars to create a Relevant Geographic Market Area for subsequent analyses.
• Availability Analysis: A methodology used to determine the number of minority- and women-owned businesses that are ready, willing, and able to provide Goods or services to the Town. 
• Utilization Analysis: A detailed examination of the percentage of actual payments made by the Town to minority- and women-owned businesses during the study period in relation to all vendors.
• Disparity Analysis: The difference between the percentage of the Town’s Utilization of minority- and women-owned businesses and the Availability percentage of M/WBEs. The results of this will result in one of three conclusions: Overutilization, Underutilization, or Parity. 
• Private Sector Analysis: An evaluation of M/WBE firm revenue and barriers in the private sector within the same Geographic Region relevant to their firm share in the market.
• Anecdotal Analysis: An investigation into other criteria of note such as Building Permit usage, Bank Loan availability/denial, anecdotal interviews, public input sessions, focus groups, organizational interviews, online surveys of business owners, and email comments.