A disparity study examines whether there are differences between:
- The percentage of dollars minority and woman-owned businesses (including small business enterprises, or SBEs) received on an agency’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 agency's prime contracts and subcontracts (availability).
The comparison between the participation of minority and woman-owned businesses in an agency's contracting and the availability of those businesses to perform that work is referred to as a disparity analysis. In addition to utilization, availability, and disparity analyses, disparity studies typically examine other quantitative and qualitative information about:
- Legal considerations surrounding the implementation of small business and minority and woman-owned business programs;
- Conditions in the local marketplace for minorities, women, and minority and woman-owned businesses;
- Contracting practices and business assistance programs the agency currently has in place; and
- Potential program measures for consideration as part of the agency's implementation of small business and minority and woman-owned business programs.