A disparity study examines whether there are differences between:
The percentage of dollars small businesses, as well as POC-, woman-, LGBTQ-, and veteran-owned businesses received on an organization’s prime contracts and subcontracts during a particular time period (utilization); and
The percentage of dollars those businesses would be expected to receive based on their availability to perform on the organization’s prime contracts and subcontracts (availability).
The comparison between the participation and availability of small businesses as well as POC-, woman-, LGBTQ-, and veteran-owned businesses in an organization’s contracting is referred to as a disparity analysis. In addition to utilization, availability, and disparity analyses, disparity studies typically examine other information about:
Legal considerations surrounding the implementation of POC-, woman-, LGBTQ-, and veteran-owned business programs;
Conditions in the local marketplace for POCs, women, veterans, and POC-, woman-, LGBTQ-, and veteran-owned businesses;
Contracting practices and business assistance programs the organizations currently have in place; and
Potential program measures for consideration as part of the organizations’ implementations of POC-, woman-, LGBTQ-, and veteran-owned business programs.