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Office of Program Policy Analysis and Government Accountability

A Review of the Minority Business Enterprise Assistance Program Administered by the Department of Management Services , Report No. 12181, October 1993

  • DMS has established rules and procedures to implement the statutory requirements for certifying minority business enterprises (MBEs) and has applied these requirements in a consistent and timely manner when processing certification applications. However, the Department's ability to assure that minority business enterprises meet all certification requirements has been hindered by its inability to conduct on-site reviews to verify information provided by applicants.
  • The criteria used by local governments to certify minority business enterprises are similar to those used by DMS in the state program. However, over half of the local governments we contacted do not fully accept state-certified MBEs within their local programs.
  • DMS has not established formal procedures to investigate complaints against minority business enterprises suspected of misrepresenting their minority status and to track businesses that become certified by default. DMS has developed a system for monitoring and reporting state agency use of certified minority business enterprises; however, this system may not accurately represent the use of minority business enterprises by state agencies.

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