The Sacramento Municipal Utility District (SMUD) in California had a clear goal: strengthen its supplier diversity program, expand opportunities for small vendors, and ensure local businesses had fair access to contracting. However, without precise, up-to-date data on the small business landscape in its service area, setting outreach goals and identifying where opportunities existed proved difficult.
To bridge this information gap, SMUD engaged MGT to conduct a comprehensive Small Business Availability Study—a data-driven effort designed to map the marketplace, identify capacity, and uncover opportunities to increase participation among small, minority-, and women-owned businesses.
Building a Complete Picture of the Marketplace
MGT’s team of experts created a detailed database of businesses across Sacramento and Placer Counties. This effort combined multiple data sources, including:
- Government procurement and licensing records
- Commercial business databases
- A custom-designed census survey targeting local vendors
The goal was to capture a full, accurate view of the business community, from established mid-sized suppliers to emerging businesses.
Measuring Capacity by Industry and Demographics
The analysis evaluated business capacity across multiple factors, such as industry classification, ownership demographics, and revenue size. Particular attention was given to high-opportunity sectors for SMUD procurement, including:
- Construction
- Information Technology
- Professional Services
- Materials and Supplies
By cross-referencing capacity with ownership data, MGT identified where opportunities existed for targeted outreach and where barriers might be limiting participation.
Key Findings and Insights
The study revealed that nearly half of local businesses were minority- or women-owned. This was a significant opportunity for SMUD to expand its diverse supplier pool. Nonminority women-owned firms emerged as the largest single ownership segment. Additionally, a large proportion of these businesses fell into the “nano-business” revenue category, meaning they operated at a smaller scale but still had the potential to contribute to SMUD’s supply chain with the right capacity-building support.
Turning Data into Strategy
These insights gave SMUD a roadmap for action. With a clearer understanding of the supplier landscape, the organization was able to:
- Refine its supplier diversity outreach and engagement strategies
- Target underrepresented segments with tailored capacity-building initiatives
- Set informed, realistic goals for diverse vendor participation
- Strengthen its local vendor base, keeping more procurement dollars within the community
A Model for Other Agencies
The SMUD study demonstrates the power of data-driven availability analysis in shaping supplier diversity programs. By going beyond generic market data to build a custom, region-specific profile, agencies can make smarter decisions that drive fairness, competition, and economic impact.
If your organization is seeking to grow its diverse vendor network, MGT can deliver the market intelligence you need. Our availability studies uncover where the opportunities are, identify untapped talent, and help you design strategies that connect the right suppliers with the right contracts.
Contact us today to see how a Small Business Availability Study can strengthen your supplier diversity efforts, expand local participation, and deliver measurable economic benefits for your community.
