South Carolina Governor Henry McMaster has issued a new executive order that changes how state agencies award contracts and spend taxpayer money. The order removes requirements that agencies consider race when selecting which businesses receive certain government contracts.
Currently, state law requires the South Carolina Department of Transportation to award at least five percent of specific contracts to minority-owned businesses. Other state agencies must spend ten percent of their controllable budgets through minority firms. The governor’s order directs agencies not to follow rules that require awards based on race.
Some leaders in the minority-business community say the order could have a direct impact on small companies. WACH FOX News spoke with LLE Construction Group, a local minority-owned business, about the decision.
When asked whether awarding contracts to minority businesses based on race is discriminatory, CEO Lasenta Lewis-Ellis said disparity studies show minority- and women-owned companies often receive fewer government contracting dollars. She believes the order will make it harder for small minority businesses to compete.
“I work with a larger construction company that may have a 15 or 20 percent requirement,” said Lewis-Ellis. “They have to bring in a woman or minority-owned business at 15 or 20 percent of the contract. So if we take away this program they don’t even have to bring me to the table.”
Republican State Representative Brandon Newton told WACH FOX News the executive order is consistent with legislation passed last year banning DEI mandates in the state.
“All we’re trying to do is make sure that when dollars are being spent that are from hard-working taxpayers, they are being used for the best possible service, at the best possible cost,” said Lewis-Ellis.
When asked whether the order was necessary, Newton said any law that violates the 14th Amendment by allowing discrimination should not remain in place.
The executive order applies only to future contracts and does not cancel existing agreements. Lewis-Ellis says she hopes the governor will conduct a disparity study in South Carolina to determine whether data supports the change.
