State-sponsored discrimination in minority contracting, Part 3

By Christopher Young,
Contributing Writer,

In the first two parts of this series, we have made crystal clear, using the state’s own data, that Mississippi awards contracts for goods and services to white companies (non-minorities) to the greatest extent possible. In FY2023, of the $4.3 billion awarded, non-minorities received $4.0 billion – 94.36%. That left $246,780,248 for minorities – about 5.73%. In a state with a 43+% minority population, the state awards 5.73% to minorities. On its face, we know this is unjust and prejudicial – it is discrimination, and it will persist until laws are changed.
If we stopped here, the reader would only have current data confirming that Mississippi just doesn’t do equality or fairness, never has and still doesn’t. The white power structure – a white Republican dominated legislature, and white Republican Lt. Governor and Governor whose state agencies are headed up by white people at a rate of 94% – ensures that equitable progress for minorities remains an illusion.

The story does not stop here though, it gets far worse. Of the 5.73% of FY2023 contract funds that went to minorities, 88.84% went to “other non-ethnic women,” white women. Those expenditures account for 5.09% of the 5.73%, leaving less than 1% (0.64%) for actual minorities (Asian, Asian Pacific, Black, Hispanic and Native Americans). So, Mississippi administers a system that awarded a total of 99.36% of its contract funds to white people in FY2023. Immoral, discriminatory and racist – absolutely. Yet is it illegal? Seemingly not.
Michael Thomas, president of Systems Electro Coating (SEC) – a Tier 1 supplier of electro-coated frames and other vehicle components – is an accomplished businessman and expert in contracting and systems change. SEC is an African American owned company in Madison. He shared with us, “unless you are intentional in how you spend these funds, this is what you get. Every public body, up to a certain dollar amount, can go to whoever they want. Then beyond that threshold, two bids are required. It isn’t until a very high dollar amount that a full public bidding process is required.” He shared about the importance of a disparity study for the state, which Mississippi has never funded, and about the critical importance of certain words like ‘could versus shall,’ especially when setting goals

Thomas suggests that white people in charge may have a perception that if they change, if they choose different vendors, that it could lead to an inferior product or service. Yet in his 36 years, he’s “only terminated two African-American contracts for performance issues, and on balance, it’s been slightly more than that for non-minority vendors.”
Thomas counsels that only through education and economic development will the needle move, and that those entities that have discretion must be intentional toward changing the inequity that we are seeing today. “Every state agency, if they choose, can get two bids from African-American contractors.”
Economic justice is a core issue for One Voice Mississippi. Executive Director Nsombi Lambright-Haynes provided the following statement in response to our inquiry: “The exclusion of Black men and women from government contracts in Mississippi limits economic opportunities, stifles business growth, and perpetuates income inequality. It restricts wealth accumulation in Black communities, contributing to a broader cycle of poverty and economic disparity. Additionally, the lack of diversity in government contracting can result in a narrower range of services and perspectives, potentially leading to less effective and innovative solutions for public projects.”

She continues, “The urgent need for legislative change to ensure equitable opportunities and representation in state contracting will only create a more inclusive and thriving economy in Mississippi. It’s crucial for policymakers to address these systemic inequalities and create a more inclusive economic landscape for all Mississippians.”
Representative Tracey Rosebud (D-30, Bolivar, Quitman, Sunflower, Tallahatchie) shared with us, “I’m always supportive of minority contracting. It needs more attention, and last year was an election year. I think some focus may have been lost. We can’t allow our efforts to dwindle. We have these other projects scattered across the state and each of them should have high rates of minority participation. I will work with others in the upcoming session to bring new legislation in this area and we will invite the director of MDA’s Minority and Small Business Development Division to make a presentation to the Legislative Black Caucus Policy & Issues Committee.”
Mississippi’s Senate Minority Leader Derrick T. Simmons (D-12), weighed in saying,” It’s indeed unacceptable that less than 1% of expenditures went to non-white contractors in our state. This disparity highlights a significant issue in ensuring equitable opportunities for all businesses, regardless of the race or ethnicity of their owners. It’s crucial to address this imbalance to foster a more inclusive and fairer economic environment that reflects the diversity of our state.”

Chairman of the Mississippi Legislative Black Caucus, Representative Christopher Bell, (D-65), shared with us, “The state of Mississippi must address the low number of minorities participating in the bid process and being awarded contracts to provide services to the state of Mississippi. The growth of minority businesses is vital to economic empowerment and growth within our state. Whether discrimination against minority contractors is due to conscious or unconscious bias, the FY2023 Minority Participation Report clearly reveals lack of equity, and that discrimination is ever present. The participation of minority contractors in state agency/business areas is an integral component required to move Mississippi forward, grow our state’s economy and uplift communities across the state.”
When we discover discrimination of any type, the very first step is to call it out – firmly, clearly and concisely. Discrimination in contracting in our state robs minorities of opportunity. It screams to minorities that they do not matter – their families don’t matter; their economics don’t matter. And the conspiracy of silence on this issue is numbing. Where is the outrage? Where is the coverage on this issue by the white-owned newsrooms in our state? We must line up behind our minority legislators as they thoughtfully introduce legislation to bring about change. Pull the curtain away from the white Republican majority that refuses to govern for all Mississippians.