News

Supply and Demand Diversity

by Peter Galuszka , May 3, 2007

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Warren Thompson, president and chairman of Thompson Hospitality, one of the largest minority-owned food service companies in the country, says university cafeterias have become much more health conscious in recent years.

Public universities in Virginia, as in many states, have generally not paid much attention to diversity among their suppliers. For years, state expenditures for outside contracts went to the usual suspects — White contractors from well-established companies.

Then, four years ago, former Gov. Mark Warner, a progressive Democrat from the high technology sector, shook things up. He launched a statewide study to determine if there were disparities in how contracts were awarded. Warner didn’t like what he learned. While avoiding quotas, he ordered colleges and other agencies that make purchases for the state to make sure that they were including minority and female-owned businesses when they solicited services.

That is where Bill Cooper came in. The publishing industry veteran and entrepreneur was recruited in 2005 by the University of Virginia as a diversity supply officer. He quickly set about collecting information about the university’s vendors and their contracts, and created an updated list of minority-owned suppliers who could be contacted when the university invited bids for projects.

In December 2006, Cooper organized a “marketplace” event designed to put more than 2,000 university buyers in touch with 45 contractors, including 15 minority-owned firms. “Most universities probably have an interest but haven’t acted yet because there’s no interest from the top since it might upset the status quo,” he says.

Anecdotally, at least, there seems to be some limited progress in minority-owned businesses getting a share of the university market. “Overall, there is an increase in activity, and it seems to be a growing thing,” says Harriet Michel, president of the National Minority Supplier Development Council.

State governments and universities seem to be overcoming the fallout of California’s controversial Proposition 209, the 1996 ban on racial quotas at state institutions. Although Prop. 209 has legal clout only in the Golden State, its impact has been felt nationally.

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