José Martín Ramírez CarrascoHarris Health System, the state-owned operator of three public hospitals and clinics in Harris County, Texas, has awarding over US $70 million of contracts to local minority-and women-owned business enterprises since launching a dedicated M/WBE procurement program in September 2022.
Part of a commitment to diversity and increase representation of M/WBEs by 20 per cent across the supply chain, the program addresses low contractor representation which was first reported in April 2022, after Harris Health commissioned a disparity study to examine its practices. Conducted by Colette Holt & Associates, the study found that Harris Health had only achieved a 7.9 per cent utilization rate of M/WBE contracts for fiscal years 2018 and 2019.
The study considered whether companies have equal access to contracting opportunities on Harris Health’s prime contracts and associated subcontracts. It also made strategy recommendations to ensure full and fair competition. Many of the recommendations Harris Health has already adopted include creating race-and-gender-conscious measures for its procurement programs, and creating a senior leadership position to oversee efforts toward diversity and inclusion in contracting.
In fiscal year 2024, we’re still seeing our overall awarding of M/WBE contracts well above our aspirational goal.
Derek J. Holmes, vice president, Contract Administration and Contractor Diversity – a department set up specifically to address the report’s findings, comments: “While our annual report from October 2022 to September 2023 shows amazing gains in our M/WBE program, the program continues to excel.
“In fiscal year 2024, we’re still seeing our overall awarding of M/WBE contracts well above our aspirational goal. That’s an increase of 152% since the program kicked off in 2022.
“The unwavering support from Harris Health’s senior leadership and the Board of Trustees has made these achievements possible.
“Although there is still much work ahead, I am exceptionally pleased with the program’s establishment and the exciting initiatives on the horizon.”
I’m proud of our efforts to this point, but realize there is much work to make the awarding of contracts an equitable and sustainable reality.
“The study, while painful to see, gave us a road map and a starting point to offer more opportunities for M/WBE and small businesses to help support Harris Health’s mission to serve our community with high-quality healthcare for all Harris County residents,” says Esmaeil Porsa, MD, president and CEO of Harris Health. “I’m proud of our efforts to this point, but realize there is much work to make the awarding of contracts an equitable and sustainable reality.”
Since establishing its Contractor Diversity Department, Harris Health reports an impressive 139 per cent increase in M/WBE contractor awards.
Through an aggressive campaign to educate the community, the contractor program has been able to assist local M/WBE firms engage with Harris Health, pursue contracts, expand their capacities and directly open more business opportunities to support the system.
Other milestone achievements reported by the M/WBE program over the last fiscal year include:
- 18.9% of contracts awarded to M/WBE firms
- Award of 100 individual contracts involving 126 M/WBE firms
- Participating in outreach to about 20,000 contractor touchpoints
- Solidifying internal M/WBE policy by streamlining criteria associated with race and gender-neutrality
- Hiring a program director and supporting team
- Hosting internal and external training on program requirements; and
- The launch of a dedicated Resource Center alongside introduction of new capacity-building measures
Holmes believes the passage of Harris Health’s US $2.5 billion bond election in November 2023 presents significant additional opportunities for increasing opportunities for M/WBEs and small business well into the next decade.
“Looking ahead, I am particularly excited about the upcoming hospital and clinic campus expansion projects and the opportunity those projects will bring to the Contractor Diversity Program”, he says. “The LBJ Hospital campus, with its rich history in northeast Harris County, is set to undergo significant growth with plans for a new hospital, central utility plant and a parking garage to enhance the provision of medical, social and mental healthcare and outpatient services.”
A copy of the Harris Health Contractor Diversity Program Annual Report [October 2022 to September 2023] is available at harrishealth.org.
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