How does diversity and inclusion relate to contract awards?

• A. It has no relation to contract awards
• B. Policies may set goals for small or minority-owned businesses; procurement encourages supplier diversity without sacrificing value
• C. It requires preferring minority-owned always
• D. It prohibits using large firms

Answer: (B)

Diversity and inclusion in contract awards centers on expanding the pool of potential suppliers and pursuing fair opportunities for diverse businesses. Organizations often implement supplier-diversity goals—targeting small, minority-owned, women-owned, veteran-owned, and other diverse firms—while the procurement process still aims to secure the best value. This means juried competition, quality, and price matter, but those goals are pursued in tandem with broad, inclusive sourcing.

That makes the statement describing policies that set goals for small or minority-owned businesses and that procurement seeks supplier diversity without sacrificing value the best fit. It acknowledges both the push to include diverse suppliers and the obligation to maintain value and performance.

Other options miss the balance: there is a meaningful relationship between diversity and contract awards; diversity goals do not mean always privileging minority-owned firms at the expense of value, and large firms can still participate if they offer the best value.