Ownership by Minority, Female, and Disadvantaged Firms in the Pipeline Industry

August 3, 2012

What GAO Found

Minority- or female-owned, minority-owned, and female-owned firms represented 15 percent, 6 percent and 10 percent, respectively, of firms in the U.S. pipeline industry in 2007. In terms of market share, minority- or female-owned firms are estimated to have accounted for a total of 13 percent of industry receipts, with minority-owned firms having accounted for 3 percent and female-owned firms having accounted for 11 percent of receipts.

Additionally, minority- or female-owned firms accounted for about $484 million out of $3 billion—or 16 percent—of federal contract obligations to the pipeline industry from 2007 to 2011. The majority of these obligations went to minority-owned firms for pipeline construction contracts. About $246 million—or 8 percent—of federal contract obligations went to disadvantaged pipeline firms, which may be minority-owned or female-owned firms, from 2007 to 2011. These obligations were also primarily for construction contracts.

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