A disparity study examines whether there are differences between:
- The percentage of dollars that person of color- (POC-), woman-, and service-disabled veteran- (SDV-) owned businesses received on an agency's prime contracts and subcontracts during a particular time period (utilization).
- 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 POC-, woman-, and SDV-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 POC, woman, and SDV-owned business programs.
- Conditions in the marketplace for persons of color, women, veterans, and POC, woman, and veteran-owned businesses.
- Contracting practices and business assistance programs the agency currently has in place.
- Potential program measures the agency could consider using to better encourage the participation of POC, woman, and SDV-owned businesses in its work.