Michigan Compiled Laws

Mich. Comp. Laws § 450.772 (2026)

Construction, goods, and services procurement policy; minority owned and woman owned businesses; provisions; program changes; portion of prime contract reflecting minority owned or woman owned business participation; bidder requirements; contract award.

✓ current as of July 2026
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STATE PROCUREMENTS FOR MINORITY OWNED AND WOMAN OWNED BUSINESSES


Act 428 of 1980


450.772 Construction, goods, and services procurement policy; minority owned and woman owned businesses; provisions; program changes; portion of prime contract reflecting minority owned or woman owned business participation; bidder requirements; contract award.

Sec. 2.

    (1) The construction, goods, and services procurement policy for each department shall provide for the following percentage of expenditures to be awarded to minority owned and woman owned businesses by each department except as provided in subsection (6):

    (a) For minority owned business, the goal for 1980-81 shall be 150% of the actual expenditures for 1979-80, the goal for 1981-82 shall be 200% of the actual expenditures for 1980-81, the goal for 1982-83 shall be 200% of the actual expenditures for 1981-82, the goal for 1983-84 shall be 116% of the actual expenditures for 1982-83, and this level of effort at not less than 7% of expenditures shall be maintained thereafter.

    (b) For woman owned business, the goal for 1980-81 shall be 150% of the actual expenditures for 1979-80, the goal for 1981-82 shall be 200% of the actual expenditures for 1980-81, the goal for 1982-83 shall be 200% of the actual expenditures for 1981-82, the goal for 1983-84 shall be 200% of the actual expenditures for 1982-83, the goal for 1984-85 shall be 140% of the expenditures for 1983-84, and this level of effort at not less than 5% of expenditures shall be maintained thereafter.

    (2) If the first year goals are not achieved, the governor shall recommend to the legislature changes in programs to assist minority and woman owned businesses.

    (3) Each department, to assist in meeting the construction, goods, and services procurement expenditures percentages set forth in subsection (1), shall include provisions for the accommodation of subcontracts and joint ventures. The provisions shall be established by the governor and shall require a bidder to indicate the extent of minority owned or woman owned business participation.

    (4) Only the portion of a prime contract that reflects minority owned or woman owned business participation shall be considered in meeting the requirements of subsection (1).

    (5) Minority owned or woman owned businesses shall comply with the same requirements expected of other bidders including, but not limited to, being adequately bonded.

    (6) If the bidders for any contract do not include a qualified minority owned and operated or woman owned and operated business, the contract shall be awarded to the lowest bidder otherwise qualified to perform the contract.

History: 1980, Act 428, Imd. Eff. Jan. 13, 1981

Notes of Decisions
Cited in 2 cases, 1983–1988 · leading case: Michigan Road Builders Ass'n, Inc. v. Milliken, 571 F. Supp. 173 (E.D. Mich. 1983).
Michigan Road Builders Ass'n, Inc. v. Milliken, 571 F. Supp. 173 (E.D. Mich. 1983). · cites it 5× “Section 450.772(2) of P.A. 428 establishes a procurement policy which sets interim and *175 expenditure goals of each department for minority and woman owned business as follows: (a) For minority owned business, the goal for 1980-81 shall be 150% of the actual expenditures for…”
Michigan Road Builders Ass'n, Inc. v. William G. Milliken, 834 F.2d 583 (6th Cir. 1988). · cites it 2× “Section 2 of Public Act 428, Mich.Comp.Laws § 450.772 provides that after the 1984-85 fiscal year, each state department must award not less than 7% of its expenditures for construction, goods, and services to MBEs and not less than 5% to WBEs.”
— Mich. Comp. Laws § 450.772(2) — 1 case
Michigan Road Builders Ass'n, Inc. v. Milliken, 571 F. Supp. 173 (E.D. Mich. 1983). “Section 450.772(2) of P.A. 428 establishes a procurement policy which sets interim and *175 expenditure goals of each department for minority and woman owned business as follows: (a) For minority owned business, the goal for 1980-81 shall be 150% of the actual expenditures for…”
— Mich. Comp. Laws § 450.772(5) — 1 case
Michigan Road Builders Ass'n, Inc. v. Milliken, 571 F. Supp. 173 (E.D. Mich. 1983). “Section 450.772(2) of P.A. 428 establishes a procurement policy which sets interim and *175 expenditure goals of each department for minority and woman owned business as follows: (a) For minority owned business, the goal for 1980-81 shall be 150% of the actual expenditures for…”
— Mich. Comp. Laws § 450.772(6) — 1 case
Michigan Road Builders Ass'n, Inc. v. Milliken, 571 F. Supp. 173 (E.D. Mich. 1983). “Section 450.772(2) of P.A. 428 establishes a procurement policy which sets interim and *175 expenditure goals of each department for minority and woman owned business as follows: (a) For minority owned business, the goal for 1980-81 shall be 150% of the actual expenditures for…”
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