Disparity studies are conducted at different levels of government to gather information about matters such as their employment, purchasing,contracting and other procurement practices. Such studies can improve the procurement process, increase the number of bidders, and result in the lower overall cost of procurement for government. Disparity studies often include groups such as minority- and female-owned businesses, and are meant to promote parity, fairness, impartiality, uniformity and equal opportunity for available vendors.
Disparity studies are conducted for different reasons. They may be necessary to qualify for certain grants or funding for given projects; they may undertaken in a series, in order to follow up or monitor the result of policy changes after prior disparity studies. Disparity studies can determine whether discrimination still exists, whether further action or targeted programs are necessary, and what they might be. Impartial outside entities are typically hired to conduct disparity studies.
The firm that conducts a disparity study is usually required to complete its investigation within a contracted period of time. Its actions during that period typically include a review of procurement records, identification of area businesses and vendors, and conducting interviews and meetings with business owners and vendors. The government and/or the consulting firm may also invite comments from the business community and public during the study.
In addition to improving opportunities for targeted vendors, disparity studies can encourage and promote a better fiduciary relationship between the governments and businesses and vendors in the area, and reinforce a sense of social responsibility toward the local business community. Disparity studies, which began after a Supreme Court ruling in 1989, does not automatically guarantee a level playing field for all vendors. However, they can at least, identify areas of concern in the procurement process.