Requires entities at every level of government to conduct periodic studies of racial and ethnic disparities in public contracting.
The bill aims to increase transparency and accountability in public procurement processes. By instituting regular assessments, A877 seeks to identify and address inequities in how contracts are awarded, thereby fostering a fairer and more equitable distribution of government contracts among diverse racial and ethnic vendors. This approach mirrors similar legislative efforts in other jurisdictions aimed at promoting inclusivity in public sector engagements.
Assembly Bill A877 mandates that all government entities, including state agencies, local contracting units, boards of education, and public institutions of higher education, to conduct periodic studies assessing racial and ethnic disparities in public contracting. These studies are required to take place every five years and evaluate vendor utilization to identify any disparities related to race and ethnicity in awarded contracts. The findings of these studies must be compiled into a report and submitted to the Governor and the Legislature, ensuring accessibility to the public as government records.
While the intent of the bill is centered around improving equity in public contracting, it may face opposition concerning the administrative burden it imposes on agencies and institutions. Critics may argue that mandating these studies could lead to increased costs and resource allocations that might strain smaller departments. Additionally, there could be debates about the adequacy of the metrics used to determine disparities and how actionable the findings may be when addressing systemic issues.