American DBE Magazine Winter 2014

WSDOT

WINTER 2014

FACES DBE

SR99 Tunnel Groundbreaking Federal Highway Administrator Victor Mendez speaks as Governor Chris Gregoire and other officials look on

INVESTIGATION

Smoot Construction Builds Lasting Legacy

What Every DBE Needs to Know About Building Capacity

TOP 10

Resolutions

for WBEs

Ferrovial Finds Success with DBE Compliance

Contents

FEATURES

DBE Compliance

an Effective Strategy

Angela Berry Roberson

12 15 18

Smoot Builds A Rare Legacy Business Sherman R. Smoot (company founder, deceased)

Washington State DBE Debacle

DEPARTMENTS Alaskan Way Viaduct 4 Publisher’s Page 7 DBELO Spotlight: Patricia Collins, Ph.D., MDOT 6 Business Development I: The Capacity to Succeed 28 Business Development II: Top 10 Resolutions for WBEs TRANSPORTATION TRENDS: AVIATION, CIVIL/HIGHWAY AND TRANSIT 22 AMAC Economic Forum: Ready, Set, Soar!

23 D.C. Streetcar Project Touts 25% Goal 30 FAA Certification Training ALSO IN THIS ISSUE 10 DBE Power Players: Sharon Douglas, Bradley Douglas Construction 26 NAMC Targets Growth and Transportation Opportunities

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FROM THE PUBLISHER

The Best of Times and the Worst of Times Today’s environment in the DBE Program can be described similar to the literary classic “A Tale of Two Cities”

by Charles Dickens. On one hand, this is a time of great opportunity with our economy on the rebound, the MAP-21 transportation bill in place, and transportation projects in all modes happening across the country.

On the other hand, the DBE program still has major issues to address. Many grassroots DBEs across the country are frustrated that the opportunities inherent in the DBE program are not making it to their bottom line. There is discord in Washington, DC over the OIG report of weaknesses in the USDOT DBE Program, and many DBE program administrators are left feeling that they are between a rock and a hard place; administering a sound DBE program with minimal manpower and support.

This issue of American DBE seeks to look at both sides of this DBE tale as we highlight the successful LBJ Express and North Tarrant Express project in Dallas-Ft. Worth. On this project, the prime contracting team led by Ferrovial Agroman, U.S. is aggressively striving to implement a successful DBE program and has provided meaningful opportunities to DBE firms that has helped them build capacity and experience in the transportation industry However, we also look at the struggling Washington Department of Transportation’s Alaskan Way Viaduct project, a project that started out well with outreach efforts, excitement, and a reasonable goal, but has gone off the rails with its compliance and good faith effort. Hopefully, this project will become a turnaround story that demonstrates how a bad situation can be resolved when all DBE program participants (DBEs, primes, administrators) work together to live out the true intent of the DBE Program.

This issue also highlights the great opportunity of the DBE program, with articles about the upcoming DC Streetcar project boasting a 25 percent DBE participation goal, the

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ongoing success of the Ft. Worth, Texas-based DBE firm Bradley Douglas, and the advocacy work of the National Association of Minority Contractors and the Airport Minority Advisory Council in improving opportunities for businesses across the country.

So in this season of black history, where we celebrate how far America has come in the struggle for total inclusion of all people into the American Dream, we also acknowledge that we all still have work to do to make the dream a reality.

Best wishes,

Shelton A. Russell, Publisher

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Spring 2014 Volume 2, Issue Number 1 Publisher: Shelton A. Russell Managing Editors: PR PROS, LLC Creative Director: William Cash

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Business Development

The Capacity to Succeed Are We Ready to Build The Capacity to Succeed?

The idea of building the capacity to succeed comes alive when you unpack it. It’s the business’s capabilities to get work, do work, and get paid. These are the three general capabilities that allow a business to sustain itself and prosper in its particular industry. Every successful company must have these three, and none is more important than another.

Great organizations find their comfortable balance between the three.

gry for opportunity do what makes sense under the circumstances. They seek the lowest and easiest point of entry—the one that drives the most spend and presents the least amount of personal risk. Not, typically, the best business.

The current competitive landscape demands minority business efforts create more value, be better aligned with market trends (globalization, risk management, supply chain leverage, etc.) and create a better model of sustainability. None of our current metrics recognize, reward, or even define this path. Instead, they’re focused on providing access and achieving spend goals.

It’s What You Can Do That Counts Customers want a business that can fulfill their needs, depending on the interaction. If they can’t get a return telephone call, they want the company to be more responsive.

If a proposal is late or poorly done, customers want the company to pay more attention to detail. If the pricing is too high, they want the company to do what’s necessary to lower the price, such as invest more in technology, process improvement, and driving economies of scale. We talk about size, but customers care more about the business’s capability to meet their needs than size.

The capacity to succeed focuses on what a firm can do and less on what it has in terms of sales and employees. It thus translates into a broad view of what a firm is capable of doing.

Progress Rests on One Key Question More important than anything mentioned is the answer to the question, “Are we willing?” We keep talking our way past the challenges that demand real action, but the capacity to succeed demands we change in a number of areas. But face it. Nothing I say here can make us a willing participant in change.

For some, the “success” they currently have will amount to all they want. Others won’t see the threat of using old models and will also choose a different path. Still others will hide behind saying, “We want to build capacity, but we don’t know how.”

What they really mean is, “We’re not willing to do all of that, so show us an easier way that demands less change on our part—a way with a lower investment and, of course, a way that gets us there in less time.”

Although good dialogue is taking place about capacity building, we’re still clinging to old myths about capacity means and how capacity is built.

What Got Us Here Won’t Get Us There The thinking, activities, and metrics for success that got minority businesses to this point won’t work going forward.

No doubt, minority programs have provided opportunity, grown businesses, and created diverse wealth. But the market demands the minority business industry move faster and further to provide a rational return on investment and project sustainable growth into the future.

What’s the core problem? The minority business system is a way of being in business but not a means to grow a business as it was intended.

Current minority business rules don’t provide incentive for building the capacity to succeed, so even well-intentioned business owners who may be strapped for resources and hun-

Melvin J. Gravely, is the President and CEO of TriVersity Construction and the founder of the Institute for Entrepreneurial Thinking. This article is an excerpt from his new book The Capacity To Succeed. Buy your copy at www.Entrethinking.com and learn the details about how to build the capacity to succeed.

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DBELO Spotlight:

Patricia Collins, Ph.D.

Michigan DOT Office of Business Development

Patricia Collins, Ph.D.

Teamwork the Key to Success at MDOT Office of Business Development Pat Collins has served as the Michigan Department of Transportation’s (MDOT) Director of the Office of Business Development (OBD) since 2002. During this time she has used her commitment, leadership, and teamwork to build a talented and respected unit responsible for administering all of MDOT’s external civil rights programs except Title VI. These areas encompass all aspects of the DBE program including certification, compliance, supportive services, goal compliance, and reporting. In addition, OBD administers the On the Job Training program and conducts External EEO compliance audits on contractors.

Managing these civil rights programs requires a knowledgeable and dedicated staff as well as support from MDOT lead-

SUCCESS

ership that Director Collins credits as the reason for the unit’s success. “Having and maintaining a great staff with extensive civil rights-related knowledge allow us to be successful. Anything I’ve accomplished has only been done because of them and the support I get from MDOT executive management,” Collins said.

Collins started her career in public service in municipal government with the city of Michigan after graduating from Michigan State University with a Bachelor of Science degree in Retail Management. However, once she started work in the government sector she never left. Collins moved from municipal employment to state government working at MDOT as an entry level accountant. Collins then moved to the Office of Business Development and has risen through the unit, taking over the director’s role nearly 13 years ago.

While rising through the ranks in the OBD, Collins continued to develop her skills and education by completing a master’s degree in Management from Aquinas College in Grand Rapids Michigan, and then earning a Doctorate in Public Administration from Western Michigan University in Kalamazoo. Collins said, “Except for my undergraduate degree, I have worked full time while going to school.”

Collins says that her career in public service and helping small and minority businesses has been a good fit for her.

“Over the years I managed to take my interest in business (retailing and accounting), management, and administration and ended up assisting small businesses seeking transportation contracts, as well as implementing other civil rights requirements. It’s been a good combination for me and has resulted in a very satisfying career.”

MDOT has received a great deal of peer recognition from other Civil Rights Program professionals across the country. “We have received national recognition for best practices because of the pamphlets and materials we have produced regarding our programs and services, our annual DBE Program Procedures updates, and our innovations streamlining and simplifying the 1392 data collection process for contractors who must provide the required information. We also have a contractor based OJT program and have graduated a few hundred individuals and this often gets national attention,” Collins said.

However, the role still has its difficulties. Collins sees two main challenges for her unit. First, the ongoing effort to recruit DBE firms with the expertise in the areas most needed

by Michigan, which currently includes various areas of continued

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transportation rehabilitation. Second, the need for more to be done to meet USDOT requirements, often with existing staff level. “Employee burn-out is my biggest concern,” Collins said.

MDOT’s OBD is also pursuing several innovative initiatives to help the office better serve DBE firms and meet program requirements. Collins said, “We are discussing and working on more targeted supportive services to our certified DBE firms, innovations to our certification process that keep us within the federal regulations but allow for using technology such as iPads during onsite reviews to introduce efficiencies, and looking for ways to help DBE firms take greater advantage of available technology (smartphones for example) and social media. We continuously strive to look for ways to do more with less and to do everything more efficiently.

OBD is also seeking to help DBEs face new developments in the areas of electronic bidding. Collins said, “A major area of interest/focus of our office will be assisting DBE firms with the requirements of what we at MDOT call “E-Contracting” which involves submitting bids electronically, electronic signatures, submitting payroll, and other information related to a project electronically. MDOT would like to move to a paperless contracting environment within the next few years,

     

             

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which should lead to tremendous time and costs savings.”

Another signature program of OBD is its annual DBE Conference. This year will mark the 34th year of the event. “We strive to make it better each year by using a mix of MDOT staff, DBE firms as presenters/panelists, and private sector individuals as presenters and panelists. This is our largest event. We typically have a one-day conference after the DBE Conference in the Northern area of Michigan.”

Asked what it takes to succeed in her role as the DBE Liaison Officer and Director of MDOT’s OBD, Collins responded: “I believe if you enjoy your work and strive to continuously improve and innovate you will be successful. I don’t think there is a key or set of keys that you can follow and that will lead to success. I also don’t think any of us becomes a success without the support and help of others. I think different things work for different people when it comes to being successful. I really care about the programs we implement; I am proud to represent the Michigan Department of Transportation and I work with a lot of great people; [that] keeps me motivated and I believe these are the keys to my success. We are doing good things that help a lot of other people succeed in their endeavors.”

PROUD TO GIVE BUSINESSES A LIFT CATS is proud to provide opportunities for businesses to create local jobs through the advancement of transit projects. CATS also seeks to create an environment that gives small and socially or economically challenged local businesses the opportunity to compete for publicly funded contracts by participating in the Small Business Opportunity (SBO) and the Disadvantaged Business Enterprise (DBE) Programs.

On the LYNX Blue Line project, for example, CATS spent $42.9 million with 38 DBE firms to build the new light rail system.

As the major provider of public transportation to Charlotte and the surrounding region, CATS relies on the communities we serve to build and operate the service every day. By working together on these new opportunities, we can all keep our communities moving in the right direction.

For more information, visit ridetransit.org.

SUCCESS

cleaned the first building for the company with such speed and efficiency that their business relationship continued until 2013, when Douglas decided to close down the construction cleanup business to focus solely on construction services.

Since 1995, Bradley D’s Cleaning Service gradually expanded to include a general contractor company called Bradley General Contracting. The operations of Bradley General Contracting created a vehicle into renovation and remodeling of both residential and commercial properties.

It was the energy, drive, and business knowledge of founder Sharon Douglas that enabled the firm to grow. In 2009, the name Bradley D’s Cleaning and Bradley General Contracting were merged, thus creating Bradley Douglas Construction Services, LLC. As the business has continued to grow, Bradley Douglas Construction Services, LLC, a DBE firm located in Ft. Worth, Texas, has established itself as a reputable contracting company and diversified its operations.

While still contracting in the residential and commercial markets, the company increased its technical base to serve clients with other forms of contract services.

Sixteen consecutive years of profitability and growth has positioned Bradley Douglas Construction Services, LLC for further expansion. In 2011 the company finished its first major concrete project, Engineering Research Building at the University of Texas, Arlington.

In response to the question, “What made you get into the construction business?” Douglas said, “I was looking out the window one day while performing construction cleanup and it impressed me how the guys would form up the area for concrete and systematically lay and tie rebar, so I started checking the Internet and Google to train myself to understand the process and lingo that went with it. Not only that, but I started going out to projects at 2 o’clock and 3 o’clock in the morning to videotape what was transpiring with everything from QC (quality control), to sampling, and even the end of the chute

DBE PowerPlayers

Bradley Douglas Construction Sharon Douglas, fourth from left

CEO Sharon Douglas Sees DBE Success Everywhere She Looks Sharon Douglas, CEO of Bradley Douglas Construction Services, has an eye for seeing opportunity in situations where others see nothing at all. It started during her military career as an officer in the U.S. Army where she was responsible for clearing the path for ground forces on foreign soil to ensure efficient travel for troops and equipment. This eye for opportunity continued after her military service while working at General Mills on popular brands such as Cheerios. For example, she would evaluate production flows for Cheerio lines, which created a powdery substance called “fines.” This evaluation and implementation reduced costs by recycling or reclaiming clean product through the manufacturing system, hence, creating value for the company.

However, after a career of helping the military and corporations make money, and then running into the proverbial glass ceiling in her corporate career, Douglas was ready to make a change. “I knew I could make money for myself and I wanted to return home to Texas, so I started Bradley D’s Cleaning Service doing construction cleanup in 1995.” Bradley D’s quickly secured its first major client (Trammel Crowe), and

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when the concrete would come out of the truck.” Douglas had found another opportunity.

Most recently, Bradley Douglas has expanded into the highway construction industry performing several contracts on the LBJ Express (Ferrovial Agroman) project in the Dallas-Ft. Worth area. The company’s first contract was for tree clearing to make a path for the LBJ Express project, but after completing the project ahead of schedule was offered a small contract to perform concrete work. The work has gone so well that Bradley Douglas has become one of the primary concrete contractors for miscellaneous concrete on the project and now has six crews with more than 50 full-time staff working on the project daily. “We picked up where the larger contractors couldn’t. Now because of our performance, we are being called on by Ferrovial for other projects as well,” Douglas said.

As testimony to the company’s growing reputation as an excellent contractor, Bradley Douglas has received several awards including the DBE of the Year award by the North Central Texas Regional Certification Agency in December 2013, the 2008 Eagle Award for Business Woman of the Year from the Fort Worth Metropolitan Black Chamber, the 2010 LUNA Award for Business Firm of the Year, and the 2011 Ricky Allen Contractor’s Award.

Looking ahead, Douglas sees even greater opportunities for her company to continue to expand. Douglas said, “We recently moved into ITS work doing trenching, PVC 2” to 4” pipe laying, ground box installs, and electrical wiring on the LBJ Express project. We purchased a new machine and will be looking for more opportunities in this area of work. We want to work side-by-side with the major contractors, becoming a preferred team member adding value to their contracts.”

Douglas sees another opportunity, and she is going for it. For more information on Bradley Douglas Construction Services, visit www.bradleyservices.net

Bradley Douglas Construction crews work on the LBJ Express

Calendar of Events Associated General Contractors (AGC) 95th Annual AGC Convention March 3-6, 2014, Las Vegas, NV www.Convention.AGC.org

Conference of Minority Transportation Officials (COMTO) 43rd National Meeting & Training Conference July 12-15, 2014, Atlanta, GA www.comto.org

Airport Minority Advisory Council (AMAC) 2014 Industry Day on Capitol Hill April 1, 2014, Washington, DC www.amac-org.com

National Association of Women in Construction (NAWIC) 59th Annual Meeting & Education Conference September 3-6, 2014, Indianapolis, IN www.nawic.org

American Assoc. of State Highway Transportation Officials 2014 AASHTO Civil Rights Subcommittee Training Symposium April 27 – 30, 2014, Phoenix, AR http://ascr.transportation.org/Pages/default.aspx

National Association of Women Business Owners (NAWBO) 2014 Women’s Business Conference September 8-10, 2014, Indianapolis, IN Www.nawbo.org

Airport Minority Advisory Council (AMAC) Airport Business Diversity Conference June 8-10, 2014, Denver, CO www.amac-org.com National Association of Minority Contractors (NAMC) 45th National Conference June 18-20, 2014, National Harbor, MD www.namcnational.org

National Minority Supplier Development Council (NMSDC) Conference and Business Opportunity Fair November 2-5, 2014, Orlando, FL www.nmsdc.org

A

Ferrovial is now lead contractor on the $1.4 billion North Tarrant Express (Phase 1) and the $2.1 billion LBJ Express design-build projects in the Dallas/Ft. Worth Area.

Ferrovial Finds DBE Compliance

cting as the prime contractor on a transporta- cost, increases risk, and increases the difficulty of performing a tion project is an expensive, risky, and chal- project successfully.

However, more prime contractors are finding lenging undertaking. It that proactive compliance with DBE program requires a meticulous requirements is a better strategy to improve project and thorough underperformance, minimize risk, and decrease the costs standing of the project, an accurate estimate of of completing transportation projects. Ferrovial the cost to complete the project, and the ability Agroman (Ferrovial), a global civil contracting to bear the risks of being associated with the firm headquartered in Spain is one such contractor. project should things not go according to plan.

Through its Texas-based U.S. subsidiary, Ferrovial Therefore, it shouldn’t come as a surprise when Agroman U.S., the firm along with their affiliated some prime contractors approach the DBE procompanies CINTRA US and Webber Construcgram requirements on transportation projects tion has performed three mega projects in Texas in with lackluster support, or maybe a grudging excess of $5 billion, and other large projects across compliance, or at worst an outright disdain for the Midwest, eastern United States, and Canada. administering an effective DBE program. In Angela Berry Roberson Ferrovial has made DBE program compliance a fact, for some contractors, the DBE program key part of their winning strategy on these projects and has conflicts with their key considerations when performing a project. These contractors believe the DBE program increases embraced the idea of providing opportunities to businesses owned by minority and women entrepreneurs.

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Although the leadership of Ferrovial had no experience with the USDOT DBE program prior to entering the U.S market, they determined after their first few U.S. projects that hiring internal expertise in DBE program compliance was the best course of action for successful administration of their DBE program commitments. This decision led to the hiring of Angela Berry Roberson, a DBE program professional with nearly 20 years of experience in DBE program administration. “When Ferrovial came to the U. S. from Spain, they had minimal experience in administering a diversity program and especially not one as complex as the DOT DBE program. So, my first job internally was to educate our leadership, project managers, and staff on how to administer a successful DBE program. Fortunately, the management has been open to doing it right the first time,” Roberson said.

Roberson has led Ferrovial, as well as assisted CINTRA and Webber through the process of moving from merely “checking the box” related to DBE program compliance, to administering a DBE program that exceeds expectations and redefines the program as a key business strategy for the company. “We want to meet the true intent of the DBE program by partnering with capable DBE firms to complete

rebuild the IH 820 and SH 121/SH 183 (Airport Freeway) corridor. Improvements to be made include rebuilding the general purpose/ main lanes, improving/expanding the frontage lanes, and adding four tolled managed lanes.

The LBJ Express is described by state transportation leaders as the most comprehensive and complex project of its type in the country.

The approximately 13-mile LBJ Express project encompasses improvements along I-635, from Luna Road to Greenville Aerial view of the North Tarrant Express project Avenue, as well as on I-35E, between Loop 12 and Valwood Parkway in the Dallas area. Currently, it is the largest TxDOT highway project in North Texas and one of the largest highway projects in the nation utilizing the public-private partnership (P3) procurement model.

Ferrovial is on track to meet the DBE goal on each of the two projects by using an extensive DBE outreach process initiated

by Roberson and her staff. “We have met with DBEs at outreach events and one-on-one meetings to find opportunities for participation. In addition, we went to trade organizations for the local minority and female DBE contractors to educate them on the project and the types of opportunities available,” Roberson said. In fact, a recent report issued by Roberson states that for these two projects alone, her team has made more than 135 presentations about the project and attended over 300 outreach events to promote DBE opportunities.

Roberson has a team of compliance staff to conduct contract compliance activities on each project during both the design and construction phase of the project. Both the North Tarrant Express project and the LBJ Express project have a full-time

an Effective Business Strategy our projects. Hopefully, during the process, these companies will grow, increase their capacity, and succeed in business,” Roberson said.

Ferrovial is now lead contractor on the $1.4 billion North Tarrant Express (Phase 1) and the $2.1 billion LBJ Express design-build projects in the Dallas/Ft. Worth Area. Both projects have a DBE goal of 12.12 percent. Thus far, Ferrovial has paid out approximately $350 million on approximately 400 contracts with DBE firms on the projects. Roberson said, “We have had approximately 100 DBEs on each project, some as first tier subcontractors, but mostly as second tier subs to our primary subcontractors. Because of the Ferrovial approach, most of the work will be subcontracted to the large contractors, such as Webber Construction and thus the DBE commitment will flow down to those contractors.”

The North Tarrant Express Project in Texas’ Northeast Tarrant County is a 13.5-mile, $2.5 billion project that will

continued

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Ferrovial staff person assigned small business participants to coordinate DBE complito the leading organizations ance activities and an adminfor highway construction istrative support staffer to and the key players. Lastly, help collect compliance docuthe participants were able to mentation. “One of the main reduce the cost of becoming challenges has been educating an AGC member by applying our first tier subcontractors their class tuition cost to their and DBE subcontractors at membership fee. any tier about the civil rights Roberson has been particuand federal documentation larly excited to witness the and reporting requirements Construction crews work on the LBJ Express success of DBE firms on these associated with FHWAprojects. DBE firms were not funded highway work. In order to be fully compliant, we are only able to expand the number and size of their contracts on requiring documentation they may not have had to submit in Ferrovial projects, but they were also able to increase their the past. But we want to do it right,” Roberson said. business capacity. One such firm is Renaissance Contracting Doing it right has also led to Ferrovial partnering with agen- of Fort Worth, Texas. Renaissance started work on the North cies like the USDOT, Texas DOT, as well as the Associated Tarrant Express project with a small $80,000 contract for General Contractors (AGC) of Texas to provide additional miscellaneous utility services. However, after demonstratbusiness development and comprehensive training opportuing a great work ethic and developing a relationship with nities. These training opportunities allow DBE firms to gain Ferrovial project managers, Renaissance was awarded larger valuable knowledge to succeed in the highway construction contracts for miscellaneous excavation and later a portion of industry. Roberson said, “Most of the construction in the the drainage work. Finally, after demonstrating their abiliDallas-Ft. Worth area has been in commercial construction; ties on these scopes of work, Renaissance was awarded the therefore, many DBEs didn’t have experience doing highway remaining drainage work totaling more than $20 million in civil work.” So, Ferrovial is a stakeholder with the USDOT value. Renaissance has also used their opportunity on the Bonding Education Program, which offers classes both in project to expand into jack and bore work by investing in a English and most recently in Spanish for DBE firms to teach jack and bore machine to use on the project. Roberson said, important financial business principles necessary for do“That is one of the great things about our company. Since we ing business on highway projects. Additionally, the firm has are new to doing business here in the U.S., we are looking to worked with TxDOT to present focused education about build relationships with contractors that can travel with us to the DBE requirements, especially trucking. They have also future projects.” worked with the AGC of Texas to offer training to DBEs in Ferrovial shows no sign of slowing down in Texas and the basics of highway construction. Roberson said, “The great across the country, as the company was recently awarded thing about the AGC course is that it gives DBEs the insight another $1 billion project on the next phase of the North of highway construction by the key contractors actually Tarrant Express project. This segment of work also has a DBE performing the work.” Also, the AGC course exposed the goal; Roberson and her team plan to exceed this goal as well.

Project DBE Summary through December 2013 North Tarrant Express

LBJ Express 0 0 $2

0 8 $1

60 $1

40 $1

20 $1

0 0 $1

0 $8

0 $6

Total amount paid to DBE to date

0 $4

Goal: $127, 482, 879 DBE Commitment to date

0 $2

$179,853,232

$0 n io ill M

0 0 $2

0 8 $1

60 $1

40 $1

20 $1

0 0 $1

0 $8

0 $6

0 $4

0 $2

$0 n io ill M

$159,712,212

$179,217,635

$154,804,433

Goal: $177,943,654

The Indianapolis Terminal Interior was built by joint venture team Hunt Construction and Smoot Construction.

Indianappolis Terminal Interior

Smoot Construction Builds Rare Legacy Business y definition or default, most small businesses in existence today would be considered lifestyle companies; defined as those that exist solely for the purpose of supporting the lifestyle needs of the business owner. However, most entrepreneurs starting a business do not begin with the intention of only creating a business to meet their lifestyle needs. Most envision creating a sizeable enterprise that can eventually be passed on to future generations or sold for a handsome profit. Unfortunately, this is not the fate for the vast majority of most companies, as 80 percent are predicted to fail within two years of startup. Added to this number of

B

Founder, Sherman R. Smoot (deceased)

CEO Lewis Smoot Sr.

business failures are the number of surviving firms that limp along for years never growing in size to a level where they are transferable to a successor or able to be sold for a profit. In fact, most businesses never make it to the second generation and almost none make it to a third generation.

Enter Smoot Construction, a quiet, unassuming construction company headquartered in Columbus, Ohio. Along with the legendary H.J. Russell Construction Company of Atlanta, Smoot is considered to be one of the largest minority construction companies in the United States. No one except continued

President and Vice-CEO Mark Cain

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company insiders knows exactly how large Smoot Construction is, and that is the way company CEO Lewis Smoot Sr. likes it. “I am leery of publicity, because once it’s out there, you have no control over where it goes.” Smoot said, “My uncle gave me a piece of advice very early in my career and I have always lived by it. He said ‘keep your ears open and your mouth shut.’ So we don’t go around tooting our own horn, we let the work we have done speak for itself.”

What is publicly known is that Smoot Construction has entered its third generation of leadership under the President and Vice CEO Mark Cain, the nephew of Lewis Smoot Sr. —and Lewis R. Smoot Jr. as Senior Vice President. What is also known publicly is that Smoot Construction has a list of completed projects that any construction firm whether minority or non-minority would be proud of. The company has full-time staff in excess of 100 employees and has an impeccable industry reputation for the highest quality of professionalism and workmanship. Smoot said, “I am most proud of our reputation for integrity and ethics. People know that at Smoot Construction, we are going to do what we say we are going to do, when we say we are going to do it.”

So this leads to the million-dollar question of ‘How did they do it?’ What was different about Smoot Construction that allowed the company to beat the odds of survival and then become a major player in the construction industry? Were company founder Sherman R. Smoot’s pockets full of money at startup, allowing him to avoid some of the challenges small businesses often encounter? The answer to this would be, no.

Did company founder Sherman Smoot have access to great relationships or insider information that created a leg-up on the competition? The answer again is no. Was Smoot Construction just plain lucky in business, which created unusual success? Not really. There is nothing to suggest that Smoot had more luck than other similarly situated businesses. Evidence simply suggests that the Smoot family has made sound and strategic business decisions that have continually resulted in success for the company.

Smoot Construction was started with $300 in cash as a masonry contracting company by Lewis’ father Sherman R. Smoot, who along with his wife, Elizabeth (Betty), started the company 68 years ago in 1946 in Charleston, West Virginia.

Sherman Smoot had just finished serving in World War II. As work flourished along the Ohio River, the elder Smoot made a key decision to relocate the company from West Virginia to Columbus, Ohio in 1956. During the following years, the Sherman R. Smoot Company gained a reputation for integrity and quality workmanship as a masonry contractor. The company continued to grow, and in 1972 the elder Smoot transitioned the company’s leadership to Lewis Smoot Sr.

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Shortly after assuming leadership, Lewis saw an opportunity for the company in the Small Business Administration’s 8(a) program for minority-owned companies. Smoot said, “After some time as president I went to my father and told him that he didn’t send me to Michigan State just to continue in the masonry construction business and I discussed the 8(a) program with Dad. My father looked at me and said, ‘I don’t know what the hell took you so long to figure that out!’ This gave me his support and the confidence to go after it.” This key decision of transitioning the company to Lewis Smoot Sr., diversifying into general contracting, and participating in the 8(a) program was a major factor in the company’s success.

Smoot utilized the opportunity to work on federal projects as a general contractor and continued to build the company’s foundation as a solid and stable company. He said: “You have to build a company step by step by step. Some businesses try to do too much too soon. Your reputation is all that you have, and once you damage your reputation, it is hard to get it back. We have been careful to make sure we can perform well on our projects. We stand by our word and the people we do business with understand that about Smoot.”

Since graduating from the 8(a) program, Smoot Construction has done something that is rare for 8(a) graduates, and that is to continue to grow. Smoot said, “We established an office in Washington, DC in 1967 and our third office in Indianapolis, IN in 1991. In addition to expanding its geographic reach, the company has expanded into a wide variety of industries after building a foundation in the 8(a) program. Smoot Construction now performs projects in a variety of market sectors including commercial, education, government, healthcare, industrial, infrastructure, public assembly, restoration, and transportation.

Smoot’s project resume is extensive and impressive across these market sectors. Notable projects built by Smoot as the primary contractor include: The Ohio State University Ohio Union and Parking Garage; complete restoration of the Ohio Statehouse and

Through his leadership, Smoot Construction has grown substantially and has successfully navigated waters few companies can by transitioning to a third generation. However, Mr. Smoot is adamant in saying, “Smoot Construction is not me, it is us! This is the reason we don’t have our name on the front of the building here. Because not all the names of the people who have made Smoot Construction what it is will fit on the building. We have second generation employees that have been here from the start. There is no difference between the Smoot family and Smoot Construction. Everyone who works at Smoot Construction is family.”

Smoot, who is nearing 80 years old, is proud that Smoot Construction is still building on the foundation of honesty and integrity his father began in 1946 and he believes the future is even brighter. “Next for Smoot Construction is private work that we negotiate with clients based on best value and CHIPP (Character, Humility, Integrity, Pride, and Performance). Simply stated – we are striving to be the contractor of choice with our clients,” he said.

When asked what has made Smoot Construction successful, Smoot says, “We have a voracious appetite for our company to be successful. We are continuing to reinvest in ourselves through education and hiring people who have expertise that we don’t have. We are continuing to build a strong foundation for growth in the future.

We are not resting on what Smoot Construction Projects we have done in the past.

You know, my grandson has worked in the company and Air Traffic Control Tower, Port Columbus The Ohio Union and Parking Garage, General Contractor Ohio State University after completing his college Columbus, Ohio Construction Manager courses, we are hopeful he will Air Traffic Control Tower, Dulles International Columbus, Ohio represent the fourth generaGeneral Contractor Ohio Statehouse Restoration Washington, D.C. Construction Manager tion, along with other cousins Air Traffic Control Tower, Newport News/ Columbus, Ohio and family employees now Williamsburg International Psychology Building, working here at Smoot Newport News, Virginia Ohio State University Indianapolis International Airport Construction.”

Construction Manager Midfield Terminal Columbus, Ohio Here stands the rare example Construction Manager JV with Lucas Oil Stadium of a legacy business.

Hunt Construction Construction Manager

Annex; and the Psychology Building at The Ohio State University. Joint Venture partner projects include the Lucas Oil Stadium and the Conseco Fieldhouse in Indianapolis, IN; the Verizon Center, the DC Convention Center and The National Museum of African-American History/Culture at the Smithsonian Institute in Washington, DC. In the transportation sector, Smoot Construction primary projects include the Port Columbus International Airport Terminal C Expansion and three FAA air traffic control towers; joint ventures include the Indianapolis International Airport Main Terminal Building and control tower. Most recently, Smoot was one of two companies selected to complete the restoration of the U.S. Capitol Building in Washington, DC. “I’m proud of our monuments.

Whenever I am traveling or near one of our projects, I ride by them to take a look at the work that we have done,” Smoot said.

Now that Smoot Construction has transitioned to the third generation with company president Mark Cain, Smoot plays a role much like his father did when he became president in 1972. “The company is in good hands and we have been preparing for this for several years. I still come into the office every day and I am here to provide wisdom and experience to Mark, but he is the president now. In addition, my son Lewis Jr. is here as senior vice president, so we are ready for the future.”

Indianapolis, Indiana Conseco Fieldhouse Construction Manager in assoc. with Hunt Construction Group Indianapolis, Indiana Verizon Center Design Build Partner with Clark Construction Washington, D.C. Walter E. Washington (D.C.) Convention Center Construction Management/GMP Partner with Clark Construction Washington, D.C. The National Museum of African-American History and Culture General Contractor/JV with Clark Construction and JH Russell Company Port Columbus International Airport Terminal C Expansion Construction Manager Columbus, Ohio

Indianapolis, Indiana Air Traffic Control Tower, Indianapolis International Airport General Contractor JV with Hunt Construction Indianapolis, Indiana U.S. Capitol Building Construction Management at risk with Construction Washington, D.C. Clockwise from top left: U.S. Capitol Building; Port Columbus International Airport Control Tower; Central Ohio Transit Authority Paratransit building; Port Columbus Concourse C

FIXING Washington’s DBE DEBACLE

By Jordan Taylor

By all accounts, the State Route 99 Alaskan Way Viaduct project was poised to make history as the largest highway construction job of its kind for the Washington State Department of Transportation, and for utilizing the world’s largestdiameter tunneling machine beneath the busy streets of downtown Seattle.

Instead, the project has resulted in one of the largest disputes within the state’s DBE program, revealing a culture of misconduct, decertification of a contractor in the DBE program, and a breach of contract finding against the project’s prime contractor, Seattle Tunnel Partners, a joint venture between Tutor Perini Corporation and Dragados USA. This story began in 2001 with an earthquake, which damaged the viaduct, and required the structure—a double-deck highway that spanned the downtown Seattle waterfront—to be replaced. The resulting aftershocks from the 2013 project’s contracting debacle have since created seismic shake-ups throughout the Washington-area DBE community, WSDOT program administration, Federal Highway Administration, USDOT, and beyond.

Detailed in a 20-page report from the U.S. Department of Transportation Federal Highway Administration, the FHWA completed its investigation of a complaint filed by Elton Mason, owner of Washington State Trucking, against the Washington State Department of Transportation and the Seattle Tunnel Partners (STP), prime contractor for the Alaskan Way Viaduct Bored Tunnel Project, and found reasonable cause that WSDOT was in noncompliance with its obligations under the DBE program requirements. The FHWA responded and required the following actions from WSDOT: “As a result of our findings of noncompliance in managing the DBE program, WSDOT must take all appropriate actions

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against STP available under its contractual agreement.”

“WSDOT must work with STP to identify specific actions that will be taken to achieve the 8% DBE goal by the Project’s completion date in 2015.”

“WSDOT must revise its DBE Program Plan to include how the agency, going forward, will institute effective monitoring and oversight measures for all contracts, including the designbuild model, to ensure contractors either meet contract goals or provide documentation of meaningful good faith efforts to do so.”

In his complaint, business owner Elton Mason alleged that WSDOT failed to provide meaningful oversight related to the project and failed to provide adequate oversight of STP’s good faith efforts to achieve the project’s 8 percent DBE goal.

As a recipient of federal funds, WSDOT is responsible for monitoring prime contractors’ performance to ensure compliance with DBE program requirements, including applying legal and contract remedies available under federal, state, and local law. Should WSDOT fail to comply, the FHWA may take formal enforcement action or apply appropriate program sanctions, such as the suspension or termination of federal funds, or refusal to approve projects, grants, or contracts until the deficiencies have been remedied.

In its response to prime contractor STP, WSDOT shared their findings and recommendations: “Seattle Tunnel Partnership is in breach of the Contract pursuant to Contract Section 16.1.1(g) by erecting barriers and creating hardships to DBE participation.”

“WSDOT will pursue an in-lieu of sanctions methodology with STP to resolve this problem if and only if STP makes significant progress toward quarterly project DBE targets to meet or exceed the project DBE goal and allows WSDOT to monitor all activity related to subcontracting to ensure no barriers or hardships are erected in future work conducted by STP.” Beginning in January 2014, WSDOT requires monthly progress reports from STP that demonstrate steady progress toward DBE goal attainment and STP must allow WSDOT to monitor all activity related to subcontracting policies and procedures.

Under federal regulations and DBE administration guidelines, WSDOT could withhold payment, suspend, or subject the Design-Builder to civil penalties of up to 10 percent of the amount of the contract for each violation, which amounts to $130 million on the $1.3 billion project.

In a letter, Warren Whitlock, associate director for the FHWA Office of Civil Rights notified the complainant Elton Mason that “the investigation found that the facts support [his] allegations as well as those of many additional DBEs

DBE Elton Mason, owner of Washington State Trucks, filed the initial Title VI complaint against WSDOT on the Alaskan Way Viaduct project.

The world’s largest-diameter tunneling machine was used to drill beneath downtown Seattle.

Tunnel photo courtesy of WSDOT

with similar experience” and continued, “There is reasonable cause to find WSDOT in noncompliance with its obligations under the DBE program requirements.” Whitlock confirms the prime contractor “placed artificial barriers in the RFP and created hardships for DBE respondents.”

From a DBE Program Administration standpoint, several appropriate steps were taken by WSDOT to: 1) Advocate for a reasonable DBE project goal; 2) Ensure that adequate DBE Outreach was performed; 3) Decertify an ineligible DBE

firm from the program; and 4) Track actual payments to DBE firms. On the other hand, WSDOT fell short in a number of areas through its: 1) Failure to properly monitor STP’s good faith efforts; 2) Approval of STP’s unreasonable DBE requirements, which created additional hardships (e.g. requirements related to bonding, trucking capacity, and electronic bidding); and 3) Lack of oversight to hold STP accountable for reaching DBE project goals.

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levels, I’m able to prove retaliation and discrimination. The problem is not DBE outreach, the problem is WSDOT is not holding prime contractors accountable to terms of the contract and the DBE goals. How are they going to compensate me for what I’ve lost?” Mason asked. As a business owner, he said many small business owners have lost faith in the process and the DBE program. “Nobody is encouraged to start a new business,” he said. Meanwhile, his trucks are still parked. In addition to Mason, the FHWA received eight other complaints against STP and WSDOT by DBEs with assertions similar to Mason’s: that WSDOT is not providing adequate oversight of its DBE program by permitting STP to use merely pro forma efforts to meet the project’s 8 percent goal and report inflated DBE commitments. Mason said he has filed more than 13 Title VI complaints over various jobs in an effort to draw Work began on the Alaskan Way Viaduct tunnel replacement job in 2013. attention to the misconduct and also to generate tax-payer support. Mason credits his personal drive and perseverance to getting the level of response thus far. “I’ve been fighting and found success supplying and hauling sand and gravel for this fight for years,” he said. “We’ll do whatever it takes to get federally-funded public works projects in Washington State. inclusion on these projects.”

At its peak, his company had 30 trucks and Mason expressed frustration that the WS90 employees. The company shut down DOT DBE program administrators do not in 2005 as a result of the economic downseem to be following their own policies for turn, but Mason rejoined the industry in addressing grievances within the program.

2010 to pursue federal stimulus funding “Almost every prime contractor in this state and renewed construction opportunities. has a history of DBE fraud,” Mason said.

Mason saw what he thought was a good “STP broke the law. They are in breach of opportunity with the Alaskan Way Viaduct contract, and when they’re in breach of conproject, and threw his company’s hat in the tract, the state needs to fire them, take their ring. He said, “The outreach was there, but bond and find a replacement – that’s what from the very beginning, they knew they they’re supposed to do.” weren’t going to reach the DBE goal. They Mason said the process has taught him that created artificial barriers so I wouldn’t be most individuals and small business do not in compliance with the job.” Mason said WSDOT Transportation Secretary know their rights. “People don’t know their the complaint process against STP and Lynn Peterson rights. People lose their homes and families resulting inaction from WSDOT has been because of the discrimination. Our communities are dechallenging. “It devastated my business as well as others in stroyed while WSDOT turns a blind eye. We need people in our community and state,” Mason said. place to stop cashing their paychecks and start earning them.

According to Mason, there has been consistent lack of Put people in place that are going to do what they’re supaccountability on the part of WSDOT. “On many different

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posed to do, which is hold these contractors accountable for breaking the law.”

In a statement, WSDOT Transportation Secretary Lynn Peterson said, “The actions described in the FHWA report are unacceptable. We are increasing our oversight on these issues and working to ensure that STP provides a level playing field to DBE firms and offers fair opportunities to compete for the work generated by the SR 99 Tunnel Project. What is most important is that we all work together so that the many qualified, certified DBE firms in Washington receive work and economic opportunities generated by this project, and agency and contractor efforts are best invested in ensuring that outcome.”

An investigative report by news station KING 5 of Seattle shed even more light on the situation and the continual refusal toward compliance. According to the station, an FHWA letter to Mason revealed: “It is clear that STP is not actively and aggressively using all measures that one would reasonably undertake if intending to meet the Project’s DBE goal; it continues to engage in pro forma efforts that do not yield DBE participation while submitting inflated DBE participation reports based upon unsubstantiated commitments. WSDOT has failed to intervene when there is clear evidence to support

that STP is not making adequate good faith efforts to achieve the Project goal which was a condition of the contract award.”

The DBE Program is a legislatively-mandated USDOT program that applies to federal-aid highway dollars expended on federally-assisted contracts issued by USDOT recipients such as state transportation agencies. The U.S. Congress established the DBE Program in 1982 to: • Ensure nondiscrimination in the award and administration of DOT-assisted contracts; • Help remove barriers to the participation of DBEs in DOT-assisted contracts, and • Assist the development of firms that can compete successfully in the marketplace outside of the DBE Program.

In fall 2013, the Washington State Department of Transportation issued a formal Response to FHWA Report Title VI Investigative Findings: WSDOT Project and Program Goals and Action Plan. At the time of the report, total DBE participation was $19.7 million of $686 million total contracts paid; representing 1.73 percent performance of the 8 percent DBE goal. As of January 2014, $21 million of the $1.3 billion project has been paid to Disadvantaged Business Enterprises.

Colette Holt

& Associates YOUR EXPERT ON AFFIRMATIVE ACTION AND CONTRACT COMPLIANCE

Colette Holt & Associates Attorney at Law

• Disparity and Availability Studies • Review, Design and Implementation of Disadvantaged/Minority/Women/Small /Local Business Programs • Litigation and Expert Witness Services • Contracting Fraud Detection and Evaluation • Community Benefits Agreements and Project Labor Agreements • Trainings and Presentations

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Transportation Trends

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unny Orlando, Florida in December 2013 was the environmental impact. Sustainability Management Plans setting for the Airport Minority Advisory Council’s (SMP) have four areas of focus; Energy, Water, Waste, and 20th Annual Airport Economic Opportunity and Environment. One example of sustainability efforts at U.S. Policy Forum. The event featured the theme “Ready, airports include airports such as Chicago’s O’Hare, Atlanta’s Set, Soar,” with the goal Hartsfield-Jackson International, of preparing DBEs and industry Seattle’s Tacoma International, and stakeholders to soar to new heights San Francisco’s San Francisco Interin 2014. The annual forum is one national employing the use of farm of AMAC’s signature events, bringanimals as landscapers to eat through ing together ACDBEs, DBEs, and kudzu and other invasive plants that aviation industry professionals run rampant in the unpaved sections in an intimate meeting to discuss of the airport. SMPs also include industry trends, business opportuusing LEED (Leadership in Energy nities, and build relationships that and Environmental Design) praccan lead to successful partnerships tices and principles to reduce energy in the future. consumption.

The recent event was hosted The second area of opportunity in by the Greater Orlando Aviation the aviation industry is construction Authority at the Hyatt Regency at as the Indiana Airport Authority is the Orlando International Airport. in the process of undertaking largeProgram sessions included an scale construction on their major economic forecast for the Southairfield and implementing many eastern United States presented new short and long-term projects to

by Sean Snaith, Ph.D., Director of improve its overall functionality. the University of Central Florida’s The final area of opportunity disInstitute for Economic Competicussed during the session related to tiveness; a workshop discussing the rental car industry. An AMACLegislative and Policy Updates; chartered work group entitled The panel discussions identifying upCar Rental Work Group discussed coming business opportunities for their recently developed whitepaDBEs and ACDBEs; and business per featuring recommendations to development sessions on marketimprove ACDBE opportunities in ing and business administration. the rental car industry. The whiteThe session kicked off with Dr. paper has been presented to AMAC’s Snaith sharing his economic fore- Top: Levert Hood, Audit Manager, Hartsfield-Jackson Atlanta Interna- Board of Directors for approval and cast for the Southeastern United tional Airport asks a question. submission to the USDOT and States in 2014. His forecast is that Bottom: Robert Bouta, Senior Vice President, Properties and Conces- Federal Aviation Administration sions, Avis Budget Car Rentals and Sean Fitzgerald, Vice President, GDP growth in the 4th quarter (FAA). The Car Rental Work Group Airport Property Relations, Enterprise Holdings of 2013 will keep growth slow for also shared that between January and 2014. He also believes that payMarch of 2014, there will be an Execroll employment growth will remain sluggish; and that as utive Outreach Advocacy Plan developed, which will include economic and policy uncertainty weigh on, the private sector a formal submission of the Car Rental Industry whitepaper to firms are still reluctant to hire new workers.

USDOT and the FAA. Later in the event, several panelists representing major Later in the program, DBE program professionals received airports discussed upcoming opportunities for ACDBEs and an update on DBE program administration activities. Airport DBEs. These panelists identified three areas of opportunities DBE Liaison Officers (DBELOs) were made aware of five in 2014. The first opportunity is in the area of sustainability initiatives taking place in 2014 including: a) For FY 2013-15, due to a major sustainability push at many airports underthe USDOT Office of Inspector General shall submit to contaking sustainability management plans to reduce cost and gress a report on the number of new small business concerns

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Transportation Trends owned and controlled by socially and economically disadvantaged individuals, including those owned by veterans; b) The FAA began DBE Certification Training in February 2013; c) Based on a review by USDOT, the FAA has gathered information to clarify common misunderstandings around their practices; d) The FAA is automating all elements of the DBE and ACDBE programs; and e) FAA DBE is implementing a reporting mechanism for annual accomplishment reports accessible to airports that will provide new and improved DOORS (DBE Office Online Reporting System).

AMAC President Shelby M. Scales was extremely satisfied with the attendance, networking, and content of the event.

Scales said, “The Airport Economic Opportunity and Policy Forum is one of our signature events. It gives participants the chance to really network with others, dialogue with our speakers and presenters, and gather some great information to take home after the forum. We hope this event got our participants ready and set to soar in 2014.”

AMAC’s next major event is its annual Industry Day on Capitol Hill from March 31 through April 1, 2014, in Washington, DC. Director Scales encourages DBE and ACDBE firms to make plans to attend to voice their opinions and concerns to legislators in Washington. More information about AMAC’s Industry Day on Capitol Hill can be found at www.amac-org.com.

STREETCAR CONSTRUCTION IN WASHINGTON, DC TOUTS 25% DBE PARTICIPATION GOAL EVERYTHING OLD IS NEW AGAIN

By Ronee Barrett

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To some, Streetcars might invoke memories of nostalgia or of 1950s New Orleans, but luckily, they are rolling rapidly back into fashion all over the U.S. After decades of being dismantled, disparaged and mothballed, trolleys and streetcars are experiencing an extraordinary rebirth as city planners seek affordable transit alternatives in order to alleviate mid-town congestion. Changing demographics and high fuel costs, combined with environmental consciousness, are pumping new energy into efforts to revive a once ubiquitous American mode of urban transit.

In Washington, DC, the leadership at the District Department of Transportation (DDOT) is making a new streetcar project its top priority. Literally dubbed the 22-mile Priority System, the planned rail line is part of an integrated city transit network that includes car share, bike tracks and lanes, the DC Circulator Bus, as well as pedestrian safety.

In December 2013, the first Washington, DC streetcar operation in 50 years debuted on the H Street/Benning Road, NE, Corridor. Applying a combination of city and federal funds, DDOT is poised to continue to expand that network, constructing streetcar lines in segments across the city.

Recently released solicitation documents tout a 25 percent Disadvantaged Business Enterprise (DBE) participation goal for this important mega-project.

According to Reconnecting America, a non-profit think tank that works to integrate transportation and community

development, streetcars catalyze “…a H Street Corridor Streetcar public-private partnership that leverages tremendous value for property owners and local businesses, helps market new high-rise residential development, mixed-use and a ‘green’ lifestyle, and helps achieve public goals like affordability, sustainability, parks, and highquality public spaces.”

DDOT Director Terry Bellamy likes what this means to DC residents and visitors: easier access to public transportation, economic growth for local businesses, opportunities for workforce development, and revitalization of distressed communities.

Director Bellamy is overseeing this next phase of DC’s public transit future, the “Priority” system. This streetcar system comprises 2 miles of dual/single track fixed guideway, related equipment and facilities. However, as visualized by city transportation planners, the entire system would include potentially up to 15 additional miles of fixed guided track, allowing riders to move easily and affordably across all the city quadrants.

On January 31, 2014, a Request for Qualifications (RFQ) was issued by DDOT procurement, and teams interested in bidding on the Priority contract to design, build, operate, American DBE

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and maintain (DBOM) the city’s transit system have until March 31 to submit their qualification statements. The RFQ also includes bus service and facilities as a major component.

Those submissions will be carefully reviewed, and as part of a two-phase procurement process, DDOT will identify teams to be “shortlisted”, i.e., selected as qualified to offer proposals (RFP) in late 2014 to implement the DBOM project. The contract will be awarded in 2015, and may take up to five years for completion.

“This design-build-operate-maintain procurement is an innovative way to deliver the Integrated Premium Transit (IPT) vision we have for the District in an affordable and efficient manner,” said Director Bellamy. “This delivery method allows us to continue providing innovative, safe, and high-quality and integrated transportation solutions to the District.”

Ultimately, total realization of that vision means looking far above the 22 miles, with the completion of the entire 37 miles of the District’s streetcar system. It will link to the Washington Metropolitan Area Transit Authority (WMATA), whose regional bus and rail operations flow beyond the District into Maryland and Virginia.

DDOT officials say that currently, only 15 percent of D.C.’s population lives within a reasonable walking distance of rail transportation. However, once the 37-mile system is in place, that figure will grow to 45 percent. This can only mean good news to the DMV (District/Maryland/Virginia) area.

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Importantly, responsive teams would be expected to provide a good faith effort to meet DBE subcontracting goals of 25 percent; and this could mean good news for local minorityowned businesses.

Recent small business outreach presentations by DDOT indicate that each contracting phase on the DBOM will be delineated into silos with the goals applied to each tower. The RFQ states that “It is each Responding Team’s responsibility to seek out DBEs as potential subcontractors and to select those portions of the work… consistent with available DBE subcontractors and suppliers so as to facilitate DBE participation.”

Melvin Clark is Chairman and CEO of G.W. Peoples Contracting Co., Inc., a DBE-certified firm that performed track installation on the now operational H Street corridor streetcar line. Clark agrees with this procurement approach but feels it should go further: he is recommending that DBE participation goals be established for each phase of a project and for each discipline. Says Clark, “I believe this would mean hundreds of jobs for disadvantaged communities and millions of dollars for minority businesses here in DC. It’s good public policy, and is the fair thing to do.”

DBE contractors interested in participating in this project should visit the website at www.dcstreetcar.com, or contact Endrea Frazier, DBE Compliance, DC Streetcar; endrea. frazier@legiondesign.com. For information on becoming certified as a DBE and to complete a Uniform Certification Application, contact Linda Fennell at linda.fennell@dc.gov.

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Work continues on the H Street corridor in Washington, DC.

Improving Mobility

Ferrovial is a global leader in the finance, design, build, operation and maintenance of large, complex infrastructure projects.

Providing opportunities for small, disadvantaged, minority, woman-owned and local firms is fundamental to our success and the success of our projects.

2013 TxDOT Office of Civil Rights “Small Business Advocacy Award� winner for outstanding service in DBE programs.

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ational Association of Minority Contractors (NAMC) president Gloria Shealey sums up the organization’s role best: “NAMC is part of the solution for business and economic development impact across the country. As a national organization with over 20 chapters representing more than 800 members and growing, NAMC’s direction to build a qualified network of construction businesses, strong collaborative relationships with major

include program and construction managers, general contractors, subcontractors, manufacturers, suppliers, engineers, architects, attorneys, accountants, construction associations, technical assistance organizations and state/local government agencies. Membership is established through a network of local chapters.

President & CEO of The Daniele Company, a Durham, North Carolina-based construction management and general contracting firm, Shealey made history as the first woman president of NAMC. Since becoming NAMC president two years ago, Shealey has reinvigorated the organization, generating new buzz and commitment from board members, corporate partners, and affiliate chapter leadership. Under her leadership, the NAMC team has outlined some distinct transportation industry initiatives and opportunities to pursue, including: • Meeting with FHWA Civil Rights Administrator Warren

By Jordan Taylor Whitlock on several occasions and inviting him as keynote speaker to the 2013 National Conference in Los Angeles; continuing a discussion to create business development initiatives for NAMC members; • Issuing public comment on the USDOT audit of the DBE program; • Supporting a NAMC member in the state of Washington that filed a successful complaint against WSDOT for noncompliance with DBE Program regulations; • Continuing to stay involved in pursing improvements and changes to the DBE Program that will benefit minority owned firms.

NAMC Board Members attend the 2013 Congressional breakfast.

Respective to the transportation industry, Shealey said NAMC plays a critical role. “The most critical relevance is corporate owners and partners, as well as strategic resources NAMC’s position as a national advocate voice at the USDOT alliances, along with our programmatic and advocacy initialevel in combating the issues of compliance and enforcement tives to build business opportunities, fuels the for DBE contract participation in transportaeconomic engine by developing sustainable tion. NAMC constituent members as well as companies that not only survive, but thrive other DBEs represent a rich resource pool to and build wealth. It is NAMC’s mission to grow broader capacity and expertise in achievprovide access, advocacy, and contractor readiing the requirements of scale and scope for a ness in collaboration with strategic alliances to variety of transportation projects,” she said. impact the economic fabric of the communiShealey is wrapping up year two of a threeties we serve. That’s what we do and economic year appointment as president of NAMC. In inclusion is the objective.” her final year, she has plans to implement a sucNAMC was founded in 1969 to provide cession strategy for NAMC to replicate itself access, advocacy, and contractor development and plans to put a delivery system in place to its constituent members in collaboration to ensure the organization has the necessary NAMC President Gloria Shealey with strategic alliances. By creating an eduresources to execute on a continual basis. Accational forum for contractor readiness to leverage business cording to Shealey, the vision for NAMC is to be: opportunities, NAMC promotes the economic inclusion • The voice and leader in advocacy issue related to diverse interests of minority contracting firms. NAMC members business inclusion in the construction industry, specifically

NAMC to Target Growth and Transportation Industry Opportunities for DBEs

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focusing on the areas of transportation, healthcare, and energy; • The “go to” organization for construction contractors to: • Leverage stakeholder relationships with construction managers, general contractors, agencies, and recipients of government funding • Stay ahead of the information curve for opportunities; • A resource to prepare contractors to succeed on bigger, more complex, and specialized project/opportunities while creating a development program to help build a more stable group of contractors for upcoming construction projects.

Shealey said, “The vision is NAMC as the leading trade organization of diverse construction businesses prepared to Pursue, Win, Execute, and Excel as the value proposition for economic inclusion to build capacity, communities, and increased construction opportunities for others.” Across the country, major procurement and project opportunities are directed to NAMC membership as a priority of major corporate partners. NAMC National pursues advocacy initiatives on behalf of members that affect the industry and minority contractors collectively. Moving forward, Shealey and the NAMC leadership plan to move the organization to a new level by continuing to focus on the three primary areas of impact for minority construction firms: Access, Advocacy, and Contracting Opportunities.

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Business Development

If you want to set yourself apart from the competition, then follow up. If you promise information to someone, provide it in a timely manner. If you meet a potential customer/client, send a note or email within a week. If you gave information to a prospect six months ago and you haven’t heard from them, send them a note, card or email to remind them you are still around and would like their business. If you find out that your competition has a contract with a prospect, contact the prospect three months (or whatever is reasonable) before the contract expires.

Follow Up

ing time and money on sales and marketing and hoping you reach the ones who will spend money with you.

Put it on your calendar. If you don’t put plans on your calendar, you haven’t made a commitment and the plan rarely converts into an action.

Put It On Your Calendar

Resolve to ask for the sale, the contract, the opportunity, the loan or whatever will make your business successful. Often people feel uncomfortable actually asking the question. We tend to layout the “story” and wait for the prospect, banker, etc. to offer the purchase, contract, opportunity, or funding. Asking makes it clear what you want and shows strength. Asking gets an answer.

2014 TOP TEN RESOLUTIONS FOR WOMEN BUSINESS OWNERS

Know what your customers/clients are spending their money on. If your customers/clients are medical be sure you understand how the new health care laws and trends affect their spending. If you sell clothing or jewelry, be sure that you know not only what people like, but what they are spending their money on. No matter who your customers/clients are they are affected by laws, trends, and other issues, so you must follow the money (their money) to see how your products and services fit in.

Follow the Money

Ask

Networking with your peers may be comfortable and it may produce a lead now and then, but it will not produce as many opportunities as networking with your customers or prospects will. This means you must first find out where your customers/clients/prospects Janet W. Christy are – professional organizations, industry specific online discussions, trade fairs, etc. You only have so Learn the language of your many hours that you can network, be sure you are spending Follow a New Language customers/clients. Be sure them in the most productive places and ways. your marketing message and materials speak their language. What you sell or provide is not If you haven’t figured Evaluate Your Current important to them. The benefit of your product/service to out how to measure the Practices for Effectiveness them is what is important and what must be conveyed in what effectiveness of the things you say. Do not describe your product/service. Tell them you are doing for and in what it does for them. your business, then you do not really know if you are getting the results you need. Remember that measurements should be Do you ever try to please results oriented; not just a list of efforts. For instance, instead Determine if you everyone in a group of people of measuring by the number of people who like your business have (or need) a niche (office, family, organization, on Facebook, find out how many people made a purchase or at etc.)? Never works, does it? So least an inquiry because of your business Facebook page. why would you attempt to sell and provide your products / services to “any,” “all,” “every” of a group? If you provide dog Put It In Writing Don’t fall victim to a misunderstanding walking services, is every dog owner a potential customer? or misinterpretation – put everything No, only the ones who need and are willing to pay for the in writing. By doing so, you will save service. If you do not find your niche – the people who will yourself time, money, agony, and broken relationships. All actually pay for your products/services – then you are spend- partnering or subcontracting arrangements should be spelled

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Network With Customers, Not Your Peers

Airport Transportation Contract Compliance

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Program Development

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Public Outreach/Awareness

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State Highway Departments

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UCP Certifications

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State and Local Transit Agencies

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Airport Concessions DBE Programs

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Excellent Service since 1989

Ken Weeden & Associates, Inc. (KWA) is a national consulting firm based in Wilmington, North Carolina, with branch offices in Raleigh NC, and San Diego CA. The company began in 1989 as a multi-service urban planning firm, focusing on compliance plans for aviation and transportation facilities development. As a full service Disadvantaged Business Enterprise (DBE) Programs Consultant with recognized expertise in (USDOT) 49 CFR Parts 26 and 23 KWA has prepared FAA, FTA and FHWA DBE compliance plans for more than 100 airports and transit systems in 30 states, as well as Puerto Rico and the U.S. Virgin Islands. Call us. We can help.

KEN WEEDEN & ASSOCIATES, INC. P.O. Box 3113 I Wilmington, NC 28406-0113 I Web: www.kwaplanning.com Toll Free: 888.762.6296 I Phone: 910.762.6297 I Fax: 910.762.5963

Wilmington NC ● Raleigh NC● San Diego CA

Business Development out in an agreement and signed by all parties. Any contract with a customer/client should include a Scope of Work/Services that clearly states what you will do, what the customer/ client will do, and the amount and schedule of payment. Do it even if you know or are related to your partner, trust your prime contractor, think you understand the project/product requirements, or believe in handshake agreements. Things can happen that will alter the original circumstances – people leave, new factors arise, funds are delayed – and if you are not protected by having terms in writing, you could jeopardize your revenue and/or reputation.

Stop finding reasons to wait. Do now, the things that will make you more successful. If you do not feel ready, then make a plan (and put dates with the actions) to get ready.

Don’t Wait

Janet W. Christy offers her eighth annual version of the Top Ten Resolutions for Women Business Owners. Janet is the author of Capitalizing on Being Woman Owned and 101 Winning Marketing Actions for Small Businesses and is a counselor for the South Carolina Women’s Business Center.

FAA: A Certified Success!

The FAA’s Office of Civil Rights has successfully developed and implemented a mandatory Disadvantaged Business Enterprise (DBE)/ Airport Concessions Disadvantaged Business Enterprise (ACDBE) Certification Training Program as required

by Congress in the FAA Modernization and Reform Act of 2012. The goal of the training program is to ensure that all persons responsible for determining whether a firm qualifies as a DBE or ACDBE know the eligibility requirements so they can apply the standards consistently throughout the country.

The FAA’s DBE Compliance Team developed nine comprehensive training modules with assistance from Airport Concessions Consultants Inc., and input from other United States Department of Transportation (DOT) modal agencies and stakeholders. The topics include all aspects of certification from basic requirements to complex determinations of personal net worth. The core training for certifiers is a twoday course provided online. In 2013, there were also four live training sessions in Los Angeles, Jacksonville, San Diego, and Washington, D.C. In addition to the core training, the FAA has developed shorter refresher training for DBE Liaison Officers, and will soon roll out advanced training, which delves deeper into some of the more complex areas of certification such as determining personal net worth.

The feedback is positive from the nearly 500 individuals 30

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who have completed the training to date. Even seasoned certifiers stated that they further honed the skills needed to perform a full review and more comprehensive analysis of certification eligibility. The session on evaluating an individual’s economic disadvantage and personal net worth received great reviews.

As a result of the FAA’s training program, certifiers nationwide can now apply the eligibility requirements consistently. The FAA has already seen improvements in how states process and analyze information to determine if a firm is eligible to be certified as a DBE. The training program has been so well received that it is expected to be expanded beyond airports to highway and transit recipients, DBEs, ACDBEs, consultants, trade associations, and others. The FAA is currently working on a plan to transfer the Certification Training Program to the DOT. For more information about the FAA’s Mandatory DBE/ ACDBE Certification Training Program, visit www.faa.gov.

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