Republican candidate for governor, Jack Ciattarelli — reacting to the results of 2024 state-initiated disparity study that showed numerous minority groups (people of color, women, veterans) do not receive a percentage of state contracts proportional to their population —said Thursday that he will sign an executive order on the first day of his administration to address the issue.
Ciattarelli, addressing a group of hundreds at Feria de Negocios, the state’s largest Latino business expo, sponsored by the Statewide Hispanic Chamber of Commerce, at the Pines Manor in Edison, said this is an issue the governor needs to act on independently.
“That is not to say that I don’t respect the legislative process, but (Gov.) Phil Murphy can correct something today,” he said. “By executive order, (he) can change New Jersey’s procurement process to make it easier for minority owned businesses to get their fair share of state contracts.
“It bewilders me as to why he has not.”
The state’s procurement, questioned by minority groups for generations, came to the forefront in January of 2024, when the state released a disparity study that showed just how unfair the process has been.
The study, which was commissioned in December of 2020, reviewed more than 1.2 million records and 240,000 contracts from 61 contracting agencies, authorities, commissions, state colleges and universities in construction, professional services and goods and services.
The results, just in construction, were startling.
The study found that Black New Jerseyans represent 9.19% of the available construction businesses but received only 0.14% of the dollars on construction contracts valued over $65,000 to $5.71 million. The report estimates this potentially cost these businesses $209 million.
The report showed similar outcomes for Hispanic Americans and Asian Americans in the category. Hispanic Americans represent 11.65% of eligible construction businesses but received only 1.51% of the dollars on construction contracts. Asian Americans represent 6.43% of the available construction businesses and received 2.03%.
Caucasian females fared better. The group, which represents 19.7% of the available construction businesses, received 8.14%.
Despite outcry from the governor and legislative leaders on that day and since, little has been done. Bills to address the issue have not been put up for a vote.
Ciattarelli, like so many minority groups, pointed out that the process in New York — where minority companies are required to get a larger percentage of the work — has worked well.
“If you speak to any minority owned business that does business in both New York and New Jersey, they will tell you that the procurement process in New York is much better, much fairer than it is in New Jersey,” he said. “We can fix that today with a new procurement process.”
Ciattarelli traced his family history to its immigration to the U.S. from Italy two generations ago, noting how his grandfather and father were laborers — and that both managed to become small business owners.
He said increasing access to capital is key, something that is required — and a big part of the procurement problem.
“I’ll speak with our banks about this, but there is a thing called the commercial lending act that says a certain number of loans are supposed to be lent in the minority community, and we’re not seeing that fulfilled as best,” he said.
It was noted that many members of his party, especially nationally, have spoken against and worked to eliminate any regulations in which any minority group is singled out.
Ciattarelli addressed the issue straight on — and with a touch of humor.
“Five weeks and two days ago, I beat those people by 41 points,” he told the crowd.
Ciattarelli addressed the procurement issue with specifics.
He suggested the $5 million threshold on projects requiring project labor agreements is now too low a figure.
He said the process for being certified to get a government contract should be simplified —and that once you are certified, it’s good for any government contract.
Ciattarelli, a CPA, said the issue intrigued him.
“As a CPA, there’s things that I actually get excited about that a lot of politicians don’t, something I call operational efficiency,” he said.
Ciattarelli said the idea of correcting difficulties in business will be a top priority in his administration.
“I’m all about making New Jersey a better place to do business,” he said.
