Milwaukee, WI – The National Association of Minority Contractors (NAMC) is the largest and oldest minority-owned construction industry trade association in the United States, established in 1969 to address the needs and concerns of minority contractors, and currently has over 22 statewide chapters across the nation, including the Wisconsin chapter.
Recently, a group of diversity opponents filed a civil rights complaint under Title VI of the Civil Rights Act of 1964 to U.S. Attorney General Pam Bondi, demanding an investigation into the Wisconsin Department of Administration’s Supplier Diversity Program for alleged open discrimination against small businesses based on race. The Department’s program lawfully sets a goal that at least 5 percent of the state of Wisconsin’s procurement dollars be spent with certified Minority-Owned Business Enterprises (MBEs).
The Wisconsin Supplier Diversity Program was created in 1983 when the Legislature passed Wisconsin Act 390 that set a 5% participation goal for state agencies and University of Wisconsin campuses for purchases of goods and services with certified Minority Business Enterprises (MBEs). The program was later expanded to include Women and Service-Disabled Veteran owned businesses, representing over 50% of the participation of statewide diversity programs. Since its enactment the state has failed historically to achieve this goal despite being enacted. Since 1983 the 5% goal of diverse spending with MBE’s owned businesses was only achieved 8 out of 40 years (1983-2023), first in 2008 under Governor Doyle, and has been met consistently since 2020 under Governor Evers. This goal represents one-twentieth (1/20) of the entire state supplier procurement pie.
The purpose of this program is to provide accessibility for Black and other qualified and capable minority-owned businesses to pitch services to the State, a process that has been limited to the most elite and well-connected in Wisconsin. When this program is run transparently with equitable recruitment practices, Black-owned businesses have earned contracts based on fair competition and the merit of their services and reputation. The attacks on this program communicates the false and racist narrative that contracts have been procured based on race rather than merit, encouraging the continued disproportionate disenfranchisement and discriminatory policies that deny visibility and access for Black-owned businesses.
Black-owned businesses are a major contributing factor to a city’s overall economic health, generating significant revenue and employment while increasing community development and economic empowerment. NAMC-WI has partnered with major stakeholders, including WEC Energy Group, Northwestern Mutual, Baird Center and others on the region’s major infrastructure and most iconic construction projects. With the assistance of NAMC-WI, the Komatsu project was able to achieve 38% participation with Disadvantaged Business Enterprise (DBE) subcontractors and the Milwaukee Bucks achieved 36.8 percent minority participation with certified Disadvantaged Business Enterprises (DBEs) and Small Business Enterprises (SBEs) in the construction of the Fiserv Forum arena, exceeding the 25 percent minority participation goal, equating to a $103 million spend.
Black-owned businesses have been shown to drive economic growth and recovery, particularly in underserved areas. NAMC-WI is compelled – and duty bound – to raise our voice in righteous defense of the Wisconsin Department of Administration (WisDOA) Supplier Diversity Program.
“As affirmed by the historical data, economic inclusion opportunities for qualified small and diverse owned businesses to equitably compete and participate in our region’s construction and infrastructure industry is integral for building better, healthier communities and is good for business,” said Ugo Nwagbaraocha, NAMC – Wisconsin Chapter President and NAMC National Vice President.
Nwagbaraocha is also president and owner of Diamond Discs International, Diamond Discs International Construction Management, a national, industry leading distributor of construction, tooling and equipment, and construction management firm.
“Given the extent of virulent discrimination against minority-owned businesses, the federal government’s response has generally been far too tepid,” said Wendell R. Stemley, National President, National Association of Minority Contractors (NAMC). “The DBE program provides important opportunities for minority-owned businesses, and it should be expanded to meet the demand of rebuilding our infrastructure, not gutted.”
Policies such as the Wisconsin Supplier Diversity program do not harm economic progress – they drive it. Supplier diversity has been consistently proven to enhance innovation, competition and profitability by ensuring all Wisconsinites have economic participation opportunities regardless of zip code. According to the National Minority Supplier Development Council (NMSDC), organizations with strong supplier diversity programs generated 133% greater procurement ROI than those without. Simply stated, diversity in contracting is not just a moral imperative – it’s good business.
“Our great state must not allow politically motivated and apparently racist efforts to rip away the few remaining safeguards that promote equity and fair access to state contracts,” said State Senator Dora Drake, Chair of the Wisconsin Legislative Black Caucus. “To dismantle them now denies the merit and proven success of Black-owned businesses, and is a betrayal to the legacy of civil rights pioneers who fought, bled, and died for genuine economic access and equity.”
NAMC-WI calls upon state leaders, the local business community and the public to recognize that true fairness requires intentional action, not passive observation.
Wisconsin Stand Up!
