• Federal Labor-Intensive Forestry contracts can create income and jobs for businesses in rural communities. • Who and where these contracts are awarded play an important role. • Contracts awarded were clustered in Southern Oregon and Northern California counties. • Contract capture in some counties advances equity across business owner types. Federal contracting of labor-intensive forestry (LIF) activities can support local economies, but the distribution of these economic benefits remains uneven. Over the past two decades, USDA Forest Service LIF contracts have been concentrated in the western United States, with most awarded to non-minority-owned businesses. This study examines whether federal LIF contracting advances economic equity in the Pacific West, particularly for small and minority-owned (SBSAMO) businesses, and identifies the factors associated with higher contract capture across counties. Using USDA Forest Service LIF contract data from 2001–2020, we analyze patterns across time, space, and business types in Oregon, Washington, and California. Local Indicators of Spatial Autocorrelation (LISA) identifies spatial clustering, regression analysis examines factors associated with higher contract capture, and economic equity is assessed by comparing the share of LIF contract dollars captured by SBSAMO businesses to the share of minority-owned businesses in each county. Results show that although SBSAMO businesses represent 28% of businesses, secured 39% of LIF contracts and 45% of contract dollars across the three states, only 27% of counties experienced equitable contract capture. While Oregon, Washington, and California accounted for 51% of national LIF contracts, contract dollars were highly concentrated in Southern Oregon and Northern California. Furthermore, contracting opportunities are positively associated with the distribution of federal forest lands whereas negatively with the proportion of minority population. Strategic contracting actions by the USDA Forest Service could help expand capacity development and support entrepreneurship among SBSAMO businesses in counties currently receiving a disproportionate share of LIF contract dollars.
Poudel et al. (Sun,) studied this question.