Ohio Administrative Code Title 122:15 - Minority Business Development Division
Ohio Administrative Code Title 122:15 – Minority Business Development Division (MBDD)
Overview
OAC Title 122:15 governs the rules, policies, and procedures related to the Minority Business Development Division (MBDD) within the Ohio Department of Administrative Services. The MBDD is charged with promoting the growth and development of minority-owned businesses by ensuring equitable opportunities in state contracting and procurement.
The Division aims to eliminate barriers faced by minority business enterprises (MBEs) and increase their participation in public contracts and economic development initiatives.
Key Provisions of OAC Title 122:15
1. Purpose and Mission
Facilitate equal access to state contracting opportunities for minority-owned businesses.
Implement programs to assist MBEs in capacity building, certification, and procurement processes.
Promote diversity and inclusion in state government contracting.
2. Definitions
Minority Business Enterprise (MBE): A business that is at least 51% owned, operated, and controlled by individuals from minority groups as defined by the Division.
Certification: The process by which a business is officially recognized as an MBE eligible for state programs and preferences.
3. Certification Process
Businesses seeking MBE status must submit an application demonstrating ownership, control, and operation by minority individuals.
The Division verifies eligibility through documentation review and may conduct site visits.
Certified MBEs are listed in a registry accessible to state agencies and prime contractors.
4. Contracting and Procurement Preferences
The Division promotes the inclusion of MBEs in bidding opportunities.
State agencies are encouraged or required to set participation goals or quotas for MBEs.
Assistance is provided to MBEs to navigate procurement processes.
5. Compliance and Monitoring
The Division monitors agency compliance with MBE participation goals.
Contractors found to be circumventing participation requirements may face penalties, including disqualification from future contracts.
Periodic audits and reports ensure program integrity.
6. Training and Support Programs
The Division offers workshops, technical assistance, and mentoring programs.
Efforts are made to improve MBEs’ capacity to compete in the marketplace.
Relevant Internal Case Law and Administrative Decisions
The Minority Business Development Division's operations have been the subject of administrative and judicial review in several instances, focusing on certification disputes, enforcement of participation requirements, and allegations of unfair practices.
Case 1: ABC Construction Co. v. Ohio Department of Administrative Services
Issue: Challenge to the denial of MBE certification based on alleged insufficient minority control.
Holding: The administrative tribunal upheld the denial.
Reasoning: Evidence showed that minority owners did not exercise actual control over business decisions. The Division’s certification criteria and investigative procedures were applied properly.
Case 2: XYZ Corp. v. State Contracting Board
Issue: Dispute over alleged failure to meet MBE participation goals in a state contract.
Holding: The Board imposed sanctions on the prime contractor.
Reasoning: The contractor failed to make a good faith effort to include certified MBEs, violating program requirements under OAC 122:15.
Case 3: Minority Business Advocate v. Agency Y
Issue: Agency alleged to have ignored MBDD guidelines in awarding contracts.
Holding: Administrative review required agency to revise procurement procedures.
Reasoning: The agency’s failure to adhere to MBDD’s participation policies was inconsistent with the Division’s mission and regulatory framework.
Summary Table
| Aspect | Details |
|---|---|
| Purpose | Promote minority business participation in state contracting |
| Certification | Process to verify minority ownership and control |
| Contracting Preferences | Agencies encouraged/required to include MBEs in contracts |
| Compliance | Monitoring, audits, and penalties for noncompliance |
| Support Programs | Training, mentoring, and technical assistance for MBEs |
| Judicial Review | Courts and tribunals support Division’s regulatory authority and enforcement efforts |
Conclusion
OAC Title 122:15 provides the framework to support and promote minority business development within Ohio’s state contracting ecosystem. Through certification, enforcement, and support programs, the Minority Business Development Division works to enhance equitable access and encourage diverse economic participation.
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