The Port of Houston officials say it is committed to creating an inclusive economy and the numbers show progress.
However, challenges remain.
Between 2001 and 2024, the Port awarded more than $1 billion to small, minority—and women-owned business enterprises (SMWBEs).
The utilization of these firms, however, still lags behind the agency’s ambitious goals.
By the numbers
Port Houston launched its Small Business Development Program in 2002 and introduced a Minority- and Woman-Owned Business (MWBE) program in 2021. The two programs aim to diversify the Port’s supplier base and increase access to lucrative public contracts.
A Defender public records request to the Port of Houston revealed the following data:
- In 2021, MWBE firms received $11.6 million, or 7.1% of total awards
- In 2022, SMWBE awards jumped to $75.7 million, or 8.8%
- In 2023, MWBE firms were awarded $66 million, comprising 16.08% of the total
- In 2024, awards to MWBEs totaled $57 million, with an overall participation rate of 8.06%
While the dollar amounts have increased significantly, MWBE firms alone still fall short of the Port’s aspirational 30% goal. In 2024, they accounted for just 8.1% of eligible contracts.
Meanwhile, SMWBE combined programs total $181.1 million or 25.7%
“We certainly are intentional about making sure that we are connecting and having meaningful partnerships and relationships with organizations, including Black organizations in Houston,” said Carlecia Wright, Port Houston’s Chief People Officer. “Our strategies go back to encouraging all of our businesses when they’re certified to participate and take advantage of the technical assistance and navigation resources that we’re providing.”
Small businesses
- When it comes to Small Business Enterprises (SBE), Caucasian-owned businesses dominate awards. Between 2021 and 2024, these businesses received over $191 million. Particularly stark was 2022, when they received $114.7 million, over 94% of all known-ethnicity awards that year. Even with a dip in 2023, they remained the top recipients across all years.
- Awards to Black-owned businesses increase over time. They jumped from $76,350 in 2021 to over $3 million in 2024. They still comprise a small share of total awards, but shows steady year-over-year growth.
- Meanwhile, Hispanic-owned businesses peaked in 2024 ($6.7 million), growing significantly from less than $1 million in 2021 and 2023.
- Unreported or “Not Available” ethnicity ballooned in 2024, going from $0 (2021–2023) to a staggering $57.8 million in 2024. This suggests a significant transparency gap or lack of reporting compliance, which raises accountability questions.
- Asian-owned businesses stay relatively flat, never exceeding $500,000 in awards annually. Despite small gains, their share remains minimal in comparison to others.
Who is getting the contracts?
The Port’s data reveals disparities in who benefits. In 2024:
- Hispanic-owned firms received $4.48 million of the total
- Black-owned firms received $6.3 million
- Caucasian-owned small businesses received $20 million
- Asian Pacific-owned firms received $25.4 million
“We have a tracking system that monitors all of the bids and proposals,” said Port Commissioner Thomas Jones Jr. “We’re not mandating anybody to do anything, but we certainly incentivize those that do.”
Contracts by category
Fiscal Year 2023 was a standout year, nearly hitting a 16% MWBE utilization rate. This was likely due to a few high-dollar contracts awarded to Asian- and Hispanic-owned firms.
FY2024 dropped to 8.06%, despite $704M in total spending.
However, Black-owned businesses (M/WBE) consistently lag:
- FY2021: $2.5 million
- FY2022: $3.3 million
- FY2023: $8.48 million
- FY2024: $6.3 million
This is a shift from prior years, where more MWBE dollars were won through subcontracting. The increase in prime awards could reflect policy changes or targeted initiatives.
Which industries get the most dollars?
The largest contracts continue to go to construction firms, where S/MWBEs received $141 million in 2024. Professional services ($1.9 million) and goods ($33 million) saw higher MWBE percentages, but lower total dollar values.
“We do have aggressive outreach and training programs that are available to small and nonprofit businesses across a variety of different topics and subjects, including bonding, financial statement preparation, marketing, advertising and writing proposals,” Jones, Jr. said. “All add up to providing a degree of assistance that we hope would translate into businesses becoming more profitable.”
Both Wright and Jones say Port Houston officials are evaluating new strategies, like breaking up larger contracts to allow smaller firms to compete, expanding outreach and increasing accountability across departments.
How can Black businesses get hired by the Port?
For SMWBEs seeking procurement opportunities with Port Houston, Wright suggests engaging with Port Houston’s networking events, adding that the Port collaborates with about three dozen organizations (e.g., Black Chamber of Commerce, Women’s Business Enterprise Alliance) and participates in over 200 events annually to connect vendors with procurement staff.
Wright also suggests registering and getting certified through Port Houston’s two platforms: BuySpeed (for registration) and B2GNow to be visible for contracting opportunities. The Port also offers training initiatives, technical assistance, access to Port staff and connections with prime contractors. Businesses can also avail themselves of personalized support to understand historical trends, upcoming opportunities and how to position themselves for success.
“We don’t know how many contracts are not gonna be eligible or excluded due to the nature of the purchase or the spend,” she said. “But we try to make sure that we source inclusively.”
