Businesses await next steps after Braun ends diversity program

INDIANAPOLIS (WISH) — A business owner on Thursday said programs like Indiana’s now-discontinued Supplier Diversity Program get minority-owned businesses into the room.

Pierre Dunn owns DC One Connect, a construction contractor already certified as a minority-owned business by the city of Indianapolis.

Dunn says that certification helped him get a $3.5 million contract for the new IU Health patient care tower, among other projects. He said he was scheduled for an interview with the Indiana Department of Administration on Wednesday afternoon to get a state-level minority business certification. He learned early Wednesday morning that the interview was canceled.

“I gave him a call, and he said at this point, I was told to cancel all interviews,” Dunn said of his conversation with the person he was supposed to interview with. “And it was pretty quiet, and he said that’s all he could say at this point. It was shocking.”

An order from Gov. Mike Braun, issued Tuesday, backed up by an opinion from Attorney General Todd Rokita released the following day, ended Indiana’s Supplier Diversity Program in favor of a new Indiana Small Business Program, which is directed “to promote and facilitate the use of qualified Indiana small businesses in state procurement.”

Under the old program, the state had a goal of awarding 8% of state contracts to minority-owned businesses, 10% to women-owned businesses, and 3% to veteran-owned businesses.

The Indiana Department of Administration told “News 8” Indiana that it had 1,136 certified minority business enterprises and 1,509 certified women business enterprises. Certified businesses held more than $12.2 billion in state contracts. The Mid-States Minority Supplier Development Council said businesses it has certified generate nearly $9.5 billion in revenue each year and support more than 32,000 jobs.

Dunn says the value of programs like the Supplier Diversity Program is that they get people like him into the conversation when it comes time to bid on projects.

“They want to walk in a room with confidence that this is where I belong, I have a shot,” Dunn said. “It speaks more to the confidence of putting your name in the hat. And that changes communities. It encourages communities.”

Braun administration officials have said most minority-owned businesses will likely be eligible for the new small business program and, unlike the previous program, will have the opportunity to serve as prime contractors on state projects rather than subcontractors. The governor on Wednesday said his order aligns the state with recent Supreme Court rulings.

“I think this gives more freedom for anyone at the end of the scale, where you’re a small business, to be able to now be in a place to benefit from it,” he said. “It’s just getting us into a place where we won’t be handicapped by something that got confusing and no longer, probably, has currency.”

Dunn said the governor’s order reflects someone who has not had the same lived experiences as a minority business owner. He said he thinks the new small business program sounds good in theory and probably will still lead to state contracts for minority-owned businesses, but the governor will have to market the new program to minority-owned businesses.

“He could always come to my office, and we can go to those outreaches together and see how that participation, that campaign works out,” he said. “Let’s roll it out and see. It sounds great in theory, but practically, does it work? What he needs to understand is that it’s effective. When minority businesses are given the opportunities with a local, other local businesses, it changes our community.”

The governor’s order suspends all active and pending certifications but leaves state contracts in effect. Agencies are directed to continue to follow the terms of those contracts.