American DBE Magazine Fall 2017 Issue

Also in this issue

Fall 2017

RTD FasTracks Exceeds $1 Billion in DBE, Small Business Contracts CERM Lifts Next Generation While Thriving in Business DBE Affiliation Plays Role in Success of CRAS

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Features

Transportation

08 APTA Chair Advocates for Diversity

28 Aviation

13 RTD FasTracks Exceeds $1 Billion

32 Transit

18 It Takes a Village

36 Civil/Highway

DBE Power Players

Business Development

22 Leap of Faith Leads to Successful

39 SFAA Bonding Summit

Nat Ford Believes There are Significant Opportunities for Diverse Companies in the Transit industry RTD FasTracks Exceeds $1 Billion in DBE, Small Business Contracts

CERM Lifts Next Generation While Thriving in Business

Business

DBE Affiliation Plays Role in Success of CRAS

25 More Diverse Firms Doing Business in the Bayou State Louisiana Department of Transportation

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Airport Concession Performance Bonds Help Increase ACDBE Opportunities Columbus Wins $50 million USDOT Smart City Challenge Grant Five Strategies to Access Disaster Recovery Opportunities

Bonding as an Empowerment Tool

42 How Cities Can Boost MinorityOwned Businesses

Buying from Minority-Owned Businesses

“That’s The Way We’ve Always Done It” Just Doesn’t Get It Anymore.

We get that.

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Does Your PR Effort Need A Fresh Approach?

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Fall 2017 Volume 5, Issue 3 Publisher: Shelton A. Russell

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Headquarters: 514 Daniels Street, #186 Raleigh, NC 27605 Website: www.AmericanDBE.com About American DBE Magazine: American DBE Magazine is the premier industry resource for individuals and stakeholders who work within the federal Disadvantaged Business Enterprises program administration. American DBE Magazine is published quarterly and distributed in all 50 states — plus Puerto Rico and the U.S. Virgin Islands — to DBE program administrators, business owners, and professionals in the Aviation, Highway Construction and Public Transit industries.

Subscriptions: American DBE Magazine is published quarterly in Fall, Winter, Spring and Summer editions. The annual subscription rate is $24.99 including online editions, special industry reports, and four issues; single copy list price is $6.99 plus postage originating from Raleigh, North Carolina.

Advertising Sales: editor@AmericanDBE.com | (919) 741-5233 (Office)

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From the Publisher

A P3 Project for Diverse Firms

T

he term P3 is defined as a Public-Private Partnership within the design, construction and transportation industries.

The term represents an agreement between public and private organizations to undertake a project for the benefit of citizens in this space. However, I believe this term can also reflect the mission of diverse firms seeking to build a thriving enterprise. P3 could also stand for passion, purpose and profit; the three essential components of a sustainable business.

The first component of passion identifies the core reason why an entrepreneur opens a company. It could be a passion for designing roads, constructing buildings, personal empowerment, creating independence, or wealth creation. This passion gives rise to the purpose for their business endeavor, which creates a conduit for the entrepreneur to pursue their passion. The purpose, however, can only be achieved if the business is able to consistently create a profit in order to sustain the company in the marketplace. Therefore, some reflection of this P3 mindset must be at the core of any successful business model.

This issue of American DBE Magazine represents examples of the P3 components of passion, purpose and profit.

Our cover story on Nat Ford, president and CEO of the Jacksonville Transportation Authority and chairman of the American Public Transportation Association (APTA), represents a leader in the industry with a passion for public transportation and for creating opportunity and advancement for diverse firms.

Our feature story on Corporate Environmental Resource Management (CERM) of Atlanta, Georgia represents the story of Managing Director Al Edwards using a passion for making a difference in the lives of others to build a company that allows him to change lives on a daily

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basis. Edwards’ purpose to make a difference by leading a thriving engineering firm allows him to offer employment to talented professionals from diverse backgrounds and give back to his community in an exemplary fashion.

The same is true for this issue’s DBE Power Player, Construction Recruiters America Staffing. Since launching the company in 2005, Diane Gurdak has translated her passion for becoming an entrepreneur with the purpose of building a successful staffing company; and has grown the company to projected revenues of $9 million in 2017.

There are several other great stories in this issue that exemplify how diverse firms and organizations that support the growth and success of other diverse firms are making a difference in leveling the playing field in the design, construction and transportation industries. I hope you enjoy this issue as much as we enjoyed sharing these stories.

Best wishes,

Shelton A. Russell, Publisher American DBE Magazine

Subscribe to IN-DEPTH INDUSTRY COVERAGE Subscribe Online at www.AmericanDBE.com Call Today! (919) 741-5233

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Feature

APTA Chair Nat Ford

Advocates for Diversity

By American DBE Staff

Right: Nat Ford Sr., CEO of Jacksonville Transportation Authority and 2017-2018 Chair of the American Public Transportation Association, outside of JTA offices. (Photo courtesy of JTA).

A

s the newly appointed chairman of the American Public Transportation Association (APTA), Nat Ford believes there are significant opportunities for diverse companies in the transit industry. Ford says “transformational changes� are occurring in the industry as a result of increasing innovation, new technology and market growth, which makes the industry ripe for the participation of small and diverse companies offering products that continue to move the industry forward. He sees ongoing innovation related to products like autonomous vehicles, electric vehicles, intelligent transportation systems, and mobility software applications as great opportunities for diverse firms to thrive.

Ford was appointed to a one-year term as APTA chairman at the 2017 Annual Meeting & Expo, held on Oct. 7 in Atlanta. APTA is the leading organization for advancing public transportation in the U.S. Its mission is to strengthen and improve public transportation, and to serve and lead its diverse membership through advocacy, innovation and information-sharing. Ford hit the ground running at the annual meeting by outlining five priorities for his tenure as chair. He believes small diverse firms have a role in accomplishing many of these priorities.

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Left: Conference participants visit the Stadler Rail exhibit space at the 2017 APTA Expo in Atlanta, Georgia.

Below: Janice Thomas (l), Senior Division Director of Diversity and Civil Rights of METRA and Brenda Nnambi (r), Diversity and Small Business Development Director of Sound Transit, lead a discussion during the Managing Successful DBE Programs Workshop at the 2017 APTA Expo.

The five priorities include: 1 Continued leadership and advocacy in the transit industry; 2 Creating a new mobility paradigm that is multi-modal and includes bicycle, pedestrian, parking and other aspects of mobility; 3 Developing the workforce of the future through enhanced transit employee training and development programs; 4 Leveraging big data in order to provide better service and to communicate the benefits of transit to stakeholders; and 5 Enterprise risk management initiatives to address issues related to passenger safety and cyber security.

Ford says small and diverse firms are actively participating in the industry and he hopes to further enhance opportunities during his term. “A lot of the innovation is starting with small businesses that are creating a lot of the new technologies that we are looking at,” Ford said. “I think that our processes related to DBE and minority participation within the industry provide the opportunity for companies to know what work we have coming, see our vision and where we are going in terms of transportation, and be better prepared for this new paradigm shift that is taking place in the industry.”

A key driver of the paradigm shift for the industry is the demand for greater mobility options by the millennial generation. The public transportation industry is quickly shifting from being viewed as the primary means of transportation for underprivileged communities, to the primary means of transportation for customers from all demographic categories—especially young professionals. Ford says this change has also fostered innovation in the public transit industry, increasing service quality and options. “What may not have been an attractive business or industry to participate in and invest in previously, is now being seen as on the cutting-edge, advancing greater economic opportunity,”

"A lot of the innovation is starting with small businesses..."

Nat Ford, Chairman, APTA Ford said. “These millennials coming into our system, using our system, and relying on our systems is opening up a whole new paradigm about who rides public transportation and the benefit of it.”

APTA is taking steps to ensure that ‘Diversity and Inclusion’ is a central component of its initiatives as this paradigm shift occurs. The organization adopted a Diversity Plan in 2016 and established a Diversity and Inclusion Council, which reports to the board of directors. The Council’s role is to promote diversity and inclusion throughout APTA and monitor the achievement of specific goals and objectives established in the Diversity Plan. // FALL 2017

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U.S. Secretary of Transportation Elaine Chao gives remarks at the 2017 APTA Annual Meeting in Atlanta, Georgia.

One of the goals of the Diversity Plan is: “To increase business opportunities in the transit industry for minority-, women-, LGBT- and veteran-owned businesses; including small and DBE firms and firms owned by people with disabilities.” Ford expects APTA’s Diversity and Inclusion Council to look at ways the organization can identify best practices for diverse business participation across the country and then share this information with the entire membership. “We have totally revamped our Diversity Plan to strengthen and create a Diversity and Inclusion Council. We want to use the council to put examples of successful DBE programs and efforts at the forefront, so they can be presented to a wider body of people, and others will be able to learn from these activities.”

The successful inclusion of diverse firms in the transit industry is nothing new to Ford. It has been a hallmark of his leadership throughout his 36-year career in the industry. Ford began in the industry as a train conductor for the Metropolitan Transportation Authority in New York and quickly rose through the ranks to become MTA’s youngest district superintendent since World War II. He next moved to the Bay Area Rapid Transit (BART) in San Francisco, and then on to the Metropolitan Atlanta Rapid Transit Authority (MARTA)

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as senior vice president of operations.

Ford was later promoted to CEO of MARTA before he turned 40 years old.

He also led a complete overhaul of the MARTA system shortly after the 1996 Olympic Games. Ford was then hired to lead the San Francisco Metropolitan Transportation Authority, one of the largest transit systems in the U.S. Finally, Ford moved to his present position as CEO of the Jacksonville Transportation Authority in Florida in 2012.

Ford has championed the benefits of diversity throughout his career and consistently created opportunities for diverse firms to participate. “There is no question that I believe that the strength and success of the organizations I have led and represented over the years is because I strongly encourage diversity in terms of my staff; in terms of decision making, and for participation from a business standpoint,” Ford said. “Why? Because we make better decisions, we are stronger; and while DBE programs are important, what is more important are the results, and the results are better decisions and better results.”

Ford encourages DBEs interested in greater opportunities in transit to join APTA and get involved in the organization; especially the Business Member Board of Governors (BMBG).

The BMBG is responsible for directing

and establishing activities for APTA’s business members and presenting policy recommendations to APTA’s executive committee and board of directors, which represent the interests of all business members. “DBEs definitely need to join APTA and become active members of the BMBG, which is very welcoming to small businesses,” Ford said. “The makeup of their board represents a diverse pool of individuals, and through the BMBG, there are discussions and networking related to business opportunities.”

Ford has big expectations for his tenure as APTA chairman, and hopes to better position the industry for the change and growth occurring in mobility across America. His goal, by the end of his tenure, is for the industry to embrace technology and recognize that transit is not just bus, rail and paratransit; but it is multi-modal. “We need to increase our industry in terms of mobility of citizens in our communities,” Ford said. “We need to be properly poised to address the future—this future where technology will impact us significantly, and where our customers and communities are going to need even more of our services.”

Left: Nat Ford (right) answers media questions during a Media Luncheon at the APTA Expo. Ford is pictured with Richard White (l), APTA acting president & CEO.

"we will continue from APTA’s standpoint to

encourage small business participation,

because it is the lifeblood of what we do."

Nat Ford, Chairman, APTA Ford says diverse firms should feel confident that there are business opportunities and organizational support for diversity and inclusion in the growing transit industry. “I think when you increase the size of the tent, it’s good for everyone,” Ford said. “Particularly DBEs in the transit space at this time. Public transportation and greater public investment in transportation will clearly be helpful to those companies.” Ford also shares

Helping Small Business Move Forward

his personal commitment to ensuring that diverse firms have a place at the table in APTA. He said, “DBEs have a strong advocate in Nat Ford, and we will continue from APTA’s standpoint to encourage small business participation, because it is the lifeblood of what we do.”

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Feature

RTD FasTracks Exceeds $1 Billion in DBE, Small Business Contracts

By Jordan Taylor

Helga Grunerud (middle), executive director of the Hispanic Contractors of Colorado, accepts an Advocate for Growth recognition at the RTD Breakfast of Champions. Also pictured from left to right are: Small Business Office Manager Adrina Gibson, General Manager and CEO David A. Genova, Chair of RTD’s Board of Directors Larry Hoy, and FTA Regional Administrator Cindy Terwilliger. (Photo courtesy of RTD)

I

n October 2017, the Regional Transportation District in Denver, Colorado surpassed the $1 billion mark in payments made to small or disadvantaged businesses. Of the approximately $5.6 billion committed to the FasTracks program, more than $1 billion has been paid and committed to small businesses and Disadvantaged Business Enterprises.

story behind the infrastructure we are building is about those who are building it. Small businesses have literally laid the foundation for each of our projects.

Reaching this milestone is a testament to the strong partnerships built among our agency, prime contractors, resource partners and hundreds of small businesses.”

Beginning in 2005, with an award to Advertiser: BWI initiative to FasTracks is a 2004 voter Jacobs Engineering Group to manage build out the metro region’s transit the project, FasTracks contracts have Publication: American DBE Magazine infrastructure. Over the past 13 years, benefited more than 600 small and RTD has worked toward a goal of disadvantaged firms and more than Insertion Date: Summer 2017 adding 122 new miles of light rail 2,200 subcontractors. Contract amounts and commuter rail; 18 miles of new have ranged from thousands to multiple Ad Size: 8.625” x 11.125” bus rapid transit between Denver and millions of dollars, with many firms Trim: 8.375” x 10.875” Boulder, Colorado; and 57 new transit receiving more than one award. stations to the RTD system.

Title: myBWI – Business/Man Over the past three-year period, RTD RTD Managerthis andpublication CEO Davidmaterial met or exceeded all its DBE Program If youGeneral have received Genova said: “An important part of the goals; specifically, its 19 percent DBE in error, or have any questions about it please contact the traffic dept. at Weber Shandwick at (410) 558 2100.

goal for federally-funded projects. As a result of that success, RTD has set an even more aggressive DBE goal of 24 percent for fiscal years 2017 through 2019. According to RTD statements: “We have exceeded all of the program goals we set. We are dedicated to diversity participation on our work on a scale unlike anything this country has seen. We have an incredible team to monitor and manage compliance; and finally, prime contractors want to work with us. They are eager to engage with and mentor small businesses. RTD’s work with small businesses has made history and stands as a model for entities across the country to learn from and follow. Its standards and best practices far exceed those established by the industry.”

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Train on display at Denver's Union Station during RTD Commuter Rail Open House. (Photo credit: By Xnatedawgx, (CC BY-SA 4.0))

Genova said: “Many small businesses were born and others grew out of the opportunities presented by FasTracks projects.

As firms become more competitive, everyone benefits: employees, the companies themselves, the larger business community and the state of Colorado.”

RTD operates and maintains a public transportation system that meets the transit needs of close to 3 million people within an eight-county service area in the Denver Metro region.

The agency’s buses, rail lines, shuttles and additional services provide 100 million annual passenger trips. The FasTracks program is an integration of several transit modes and other programs into a comprehensive region-wide system. As part of FasTracks, new technologies – commuter rail and bus rapid transit – have been introduced to the region. In addition to the new rail corridors, extensions and bus rapid transit, FasTracks includes new Park-n-Rides, two new maintenance facilities, expanded bus service called FastConnects and the redevelopment of Denver Union Station.

On Nov. 9, RTD hosted a “Breakfast of Champions” special event to acknowledge the financial milestones of the FasTracks program and to celebrate the contributions of DBEs, SBEs and other participants who have worked to make it a success.

The event was held at the Radisson Hotel, Denver Southeast, with more than 300 invited attendees. The program featured comments from Genova and a video greeting from Denver mayor Michael Hancock; along with remarks from senior officials representing the RTD board of directors and the Federal Transit Administration.

Genova said without that intentional commitment, focus and vision for the program, RTD would not have been successful or reached its goals. “We’ve been successful because we’ve been intentional,” he said.

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“It’s about our commitment to small businesses," Genova said. “This program at RTD has helped put them on the map.”

Genova previously worked for RTD as a chief safety officer and then as a safety and environmental manager. He said that the culture of the RTD initiative has always been inclusive by putting the necessary resources and commitment behind the program’s goals for participation. Genova said that the rich tradition of supporting SBEs, DBEs, WBEs and minorityowned businesses is also a part of the RFP evaluation process.

When interviewing prime contractors, RTD wants to know their approach to SBE and DBE involvement. “RTD is committed to developing opportunities for small businesses, and we have incorporated this process into everything we do,” he said.

Genova said that part of the RTD vision is about enabling businesses to build capacity. “It’s not just about getting work; they’re able through capacity building to build beyond the scope of where they started. It’s about people. It’s changing people’s lives. That’s the incredibly exciting part.” In addition to building and construction projects, RTD is beginning to look at ongoing operations and maintenance opportunities for small businesses. “It’s about our commitment to small businesses,” Genova said. “This program at RTD has helped put them on the map.”

Gilmore Construction is one of those companies and has worked with RTD since the inception of the program.

For over 30 years, Jacob “Jake” Gilmore Jr. has been building leadership within the construction industry. Gilmore was born on a military base in Japan, and graduated from George Washington High School before heading off to the University of Colorado at Boulder, where he earned a degree in architectural engineering.

In 1997, with the encouragement of his wife, Gilmore started Gilmore Construction Corp., a commercial general contracting firm and construction manager for buildings and transportation. Gilmore is a firm believer in empowering the professional success of his employees, giving back to communities, mentoring smaller minority-owned companies and educating youth about opportunities in the construction industry.

“We’ve always worked for RTD,” Gilmore said. The firm has assisted RTD with bus maintenance facility upgrades, demolition, warehouse renovation and conversion work, a pedestrian bridge and renovation work at Denver Union Station. In addition, Gilmore Construction has been available for oncall projects with RTD. The company’s RTD contracts total more than $18 million.

According to Gilmore, when the FasTracks program launched, representatives actively reached out to the small business community. He said the message was clear: RTD was going to provide opportunities and they were looking for businesses that were capable of getting the work done. “It’s nice that the big guys were accessible. They reached out to the community, and they made it [inclusion] part of the process,” he said. Gilmore said it was clear that RTD had goals; and business owners were encouraged to think outside of the box and to focus on capacity building.

For business owners, building capacity means a lot of things, including financing and bonding. Gilmore said that RTD supported good educational programs for small businesses to support their growth.

Participants were encouraged to consider partnerships and working with others already doing the work. “They held the big contractors accountable,” he said.

“RTD has been a very good client,” Gilmore said. “We’ve enjoyed our time working with them. They’re very good.

They helped make the city explode with the rail line, and spurred growth. They’ve got people in there who understand the business and the construction side.”

Thanks in part to the successful RTD projects, Gilmore Construction now has 50 full-time employees, averaging $25 million in annual sales for the past several years. Projected revenue for 2018 is $35 million. Gilmore also credits his success to being surrounded by good people.

He said, “Surround yourself with good people. Good people aren’t cheap.”

Gilmore said DBEs should become a part of mentor and peer groups, to gain knowledge and experience. He said it’s valuable to be around other smart people and to learn from them. “None of us have it all figured out,” Gilmore said, but he added that it helps to have people around who understand how much work it is to be in business.”

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SEEKING DBE SUBCONTRACTORS & CONSULTANTS FOR THREE INFRASTRUCTURE PROJECTS California Rail Builders, LLC

California High Speed Rail, Central California Anticipated completion date: 2019

California Rail Builders, in a consortium with Griffith Company, has signed an agreement to design and build a 22-mile section of high-speed railway line in the Central Valley for $442 million. The line, between Wasco and Shafter, forms part of the 100-mile central section of the line between Fresno and Bakersfield, connecting Los Angeles and San Francisco.

North Perimeter Contractors, LLC

Interstate 285/SR 400, Atlanta, Georgia Anticipated completion date: 2020 North Perimeter Contractors (NPC) was selected by the Georgia DOT and the State Road and Tollway Authority to design, build and partly finance the I-285/SR 400 project.

The contract sum is approximately $457 million. NPC will rebuild the I-285/SR 400 interchange and make upgrades to the adjoining I-285 and SR 400 corridors.

Sugar Creek Contractors, LLC

Interstate 77, Charlotte, North Carolina Anticipated completion date: 2018 Sugar Creek Contractors heads up the consortium along with English Construction for the design and build of the I-77 highway. The approximately $444 million project is a public-private partnership between North Carolina DOT and the developer to finance, develop, design, construct, operate and maintain the project. SCC will construct 26 miles of dedicated additional Express Lanes that will operate adjacent to the existing general purpose lanes as well as other improvements from I-77/I-277 in Uptown area of Charlotte to Mooresville.

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Barrier/Guardrail (Temporary/Permanent), Bridge Construction, Aggregate/ Material Suppliers, Erosion Control/SWPPP, Concrete Structures, Drainage, MSE Walls/Panels, Noise Walls, Miscellaneous Design Services, Misc. Utilities Services, Traffic Control, Drilling (Sign Posts/Caissons), Utility Relocation Design**, Rebar (Installation & Purchase), Flatwork, Electrical Work, Demolition- Exterior, Grading/ Earthworks, ITS and TCS Civil Work, Landscaping, Materials Testing, Lighting, Saw Cutting/Sealing, Roadway Striping, Steel Stud Walls, Utility Relocation**, Recycling/Milling (Asphalt/Concrete), Asphalt Paving, Excavation, Environmental Services, Geotechnical, Fencing, Miscellaneous Concrete Work, Technical Design Engineering, Signage, Surveying, Ready-mix Concrete, Traffic Supplies/Signals, Trucking/Hauling *PLEASE NOTE: This list is not inclusive of all available opportunities, but a sampling of potential services that could be available on a project. The opportunities available on specific projects may vary depending on the type, scope and size of the project.

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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.

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Feature

It Takes a Village CERM Lifts Next Generation While Thriving in Business

By Sarah Magargee

I

t was a summer engineering program during high school that set Albert Edwards on a new path.

“Honestly, I could have been a very different person,” Edwards said. “I lost my parents when I was young and became a village child. Through a high school Industrial Cooperative Training Program with the U.S. Army Corps of Engineers (Mobile District), I was introduced by my supervisor to a young African American architect and engineer. They convinced me that I could get through college while playing football. I also met my friend and now business partner Marcus Reese on my first day at the program.”

Edwards saw a brighter future for himself in these young, successful African American men. He went on to graduate from Mississippi Valley State University while playing football; then took a job with a national real estate and asset management company, and later completed an MBA. Throughout all of this, Edwards never lost sight of his humble beginnings and felt called to give back.

Edwards said: “One day I was raising money for the Sickle Cell Foundation and asked my employer for support.

They offered to buy two tickets for

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$200. They were nice people, but I knew they would spend $200 on a bottle of wine at a [real estate] closing.

I wanted to do more and realized the best way to do so was by starting our company.”

In 1995, Edwards and Reese founded Corporate Environmental Risk Management (CERM); a multimilliondollar minority-owned and operated environmental, engineering and project management company. Based out of Atlanta, Georgia, CERM employs more than 75 team members and offers five areas of service: environmental services; survey and mapping; remediation and construction; program management; and engineering services.

CERM provides comprehensive and lasting solutions to address unique problems in transportation, environmental, water, land use and energy throughout the Southeast.

Transportation is the company’s largest sector and the area that helped them break into the industry. “Our work at the Hartsfield-Jackson Atlanta International Airport gave us a tremendous platform to demonstrate expertise in environmental and remediation services,” Edwards said.

“This opportunity helped us to scale to

Al Edwards, managing director of CERM, founded the company with partner Marcus Reese in 1995. six airports and offer very competitive and customer-focused service.”

When forming CERM, it was critical to both Reese and Edwards that they create a professional business focused on giving back to the community.

“I learned in graduate school that companies generally make social investments around their strategic business interests,” Edwards said.

“It is in our strategic interest to support things like Little League

CERM team members work on the Manufactured Gas Plant Remediation Project in Mobile, Alabama.

Football, STEM (Science, Technology, Engineering and Math), and other civic programs. It is in our strategic interest to support our community. We want to strengthen the bridges we cross.”

Today, the company's website showcases an impressive list of community service, including: Habitat for Humanity, Hosea Feed the Hungry, STEM Education Coalition, Toys for Tots, the YMCA, and Rivers Alive, to name a few.

Mentoring Youth Edwards and Reese believe in offering young adults the same early introduction to engineering and STEM careers that they received in high school. Since the company’s inception, CERM has hosted a quarterly Job Shadowing Program where local high school, college and post-college graduates spend one day in interactive sessions with CERM employees.

The Job Shadowing Program fosters growing diversity in the industry by developing a pipeline of engineers and scientists from underserved communities. During the program, participants gain hands-on experience

in the engineering, environmental, surveying and program management fields, and learn more about STEMrelated career options.

Every program begins with a greeting from a previous program graduate; a special detail that Edwards hopes will have the same impact on today’s students as the young men he met many years ago had on him. Students are then briefed on projects and taken into the field.

The day ends back at CERM with the students breaking out and visiting areas of the most interest to them.

Edwards said: “I give the young folks a chance to ask me whatever they want to know. Much to my surprise, they never ask about money. They ask about social and political issues, values and leadership. I am proud of these young people and our program.”

Mentoring does not stop at the end of the day. Edwards continues to work with students by leveraging his business connections, helping many program participants network and enter the industry themselves. Also, numerous men and women who work for CERM today came from the Job Shadowing Program.

A commitment to youth is at the core of CERM, and Edwards is always on the lookout for creative opportunities to introduce children to science and engineering. During a project in Alabama for the Mobile Gas Services Corporation (MGSC), he found one such opportunity. CERM was providing technical and managerial leadership for the remediation activities of a 10-acre former gas plant site.

CERM partnered with the Mobile, Alabama school system and formed an environmental education program for elementary and middle school students based on the work they were doing for MGSC. The school system had the toolkit for the program but needed partners and funding, which CERM was able to provide. The entire project and educational component was well received by the client and community alike. “You can’t change the past, but we can take these opportunities now to produce some scientists and engineers,” Edwards said.

He continued: “For me, being a Disadvantaged Business Enterprise, there are some unwritten obligations and expectations to be partners in education. It is not just about our kids… // FALL 2017

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“To grow, you have to invest back into your people and your community...”

Al Edwards, managing director of CERM

CERM Environmental Specialist Darryl “DJ” Edler uses a photoionization detector (PID) to measure volatile organic compounds and other gases at the Manufactured Gas Plant (MGP) Remediation Project in Mobile, Alabama. we have to take care of our kids; and our friend’s kids and the neighbors and nieces and nephews. I was exposed to engineering by some people who had no tangible linkage to me other than they were good community folks who believed they were doing the right thing. Through partnerships like this, CERM is doing the same thing.”

Investing in Employees Edwards’ sense of service is also evident inside CERM, where he makes giving women and minority employees a chance to succeed a priority. “When hiring, I like to find people who feel like the underdog or have been disadvantaged at some level such as being a woman, a minority or having been slighted by someone,” Edwards said. “We level the playing field and create an environment where they can excel.”

Edwards recounted meeting a young woman who had completed a technical drafting program but could not find a firm that would hire her. Reese saw potential and offered her an opportunity to go into the field and work with the CERM survey crew.

“She got out there and worked with the men and excelled,” Edwards said. “She was later recruited by the operations department and then was recruited by the corporate accounting group. All she needed was an opportunity to work in an environment that provided a chance to excel. We have countless stories like that at CERM.” Today, that same woman is still with CERM and now takes advantage of CERM’s tuition reimbursement program and is continuing her education. Edwards explained that CERM’s success is due largely to his and Reese’s willingness to invest heavily in the company’s employees. Thanks in part to this investment, CERM has seen a steady growth of an impressive 20 percent annually.

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CERM Environmental Specialist Darryl “DJ” Elder shows students equipment used to measure harmful gases at the Manufactured Gas Plant Remediation Project in Mobile, Alabama. CERM implemented a strategic community engagement and education outreach plan as part of the project in which the site was redeveloped into a 7-acre public park.

“To grow, you have to invest back into your people and your community,” Edwards said. “This is what we are doing at CERM. It is my job to make sure my employees have the resources they need to be successful.”

Edwards’ commitment to his employees, youth, and the greater community has helped CERM thrive. Edwards has big plans for the company in the coming years, including growing CERM into a national practice. “We really believe the demand is there. Not just in the service that we offer, but also our alignment with the community,” he said. “Community involvement will always be a major part of our business.”

When asked about his secret to success, he paused and explained that his humble beginnings, coupled with a trust in the Lord to send the right people into his life at the right time, helped bring him to where he is today. “I always trust the Lord to send really good people into my life, and I always try to receive them however they show up,” he said. “As a result, I have an unbelievable team that helps make all this possible.”

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e r a y l p o w e r p d b e

Leap of Faith

Leads to Successful Business

By Peggy Beach

DBE Affiliation Plays Role in Success of Construction Recruiters America Staffing

D

iane Gurdak knows her strengths.

“I am a people person and am well versed within the construction industry,” said the woman named a “petite dynamo” by one of her employees.

Gurdak used those strengths to become a recruiter in the construction field after experiencing a job layoff. She developed relationships with mentors who encouraged her throughout her career.

She knew she wanted to take the journey into business ownership. So, in 2005, Gurdak jumped at the chance to start Construction Recruiters America Staffing Inc. Headquartered in Jupiter, Florida, CRAS experienced revenues of $259,000 in its first year of existence In 2017, the projected revenues are $9 million. CRAS has corporate offices in Houston, Texas, with additional

locations in Raleigh, North Carolina; Lutherville, Maryland; and Brighton, Colorado.

Gurdak’s first client was Buckeye Electric of Cincinnati, working on Baggage Handling Systems within a national capacity at airports as well as industrial facilities. CRAS worked on sites in 16 different states within its first two years of business.

Gurdak said becoming a DBE firm required getting as many certifications as possible to build a client base.

“I attended a contractor’s meet and greet in Phoenix in 2007,” she said. “I knew that my DBE certifications would play a tremendous role in our success by opening the door to networking opportunities and exposure to top airport contractors.”

Millwrights hired

by CRAS working on the Louis Armstrong International Airport terminal project in New Orleans.

Originally, CRAS provided electricians, but has since expanded services applicable to most client needs. Gurdak’s team is trained to hire warehouse workers to stage the project; baggage porters/un-jammers to test functionally; supervisors and/ or managers to oversee projects; administrative personnel to support team members; mechanical workers to build the conveyors; and electricians to wire the systems. “We are now capable to provide labor to support the project from beginning to end therefore, posing as a one-stop shop, eliminating the need to outsource to other suppliers,” Gurdak said. CRAS began offering support for entire projects in 2014, which led to an increase in annual revenue.

CRAS also has worked with Pteris Global USA, an airport systems logistics integrator, at the Charlotte-Douglas International Airport. Glidepath, LLC, an airport service company based in Dallas, Texas, worked with CRAS employees at the Austin-Bergstrom International Airport. Vanderlande Industries, an airport logistics company based in Marietta, Georgia, and G & S Airport Conveyor of Wichita, Kansas, worked with CRAS at the Ft.

Lauderdale International Airport.

Currently, CRAS is working with those contractors at the Louis Armstrong New Orleans International Airport, the Los Angeles International Airport, and the El Paso Airport. The company is also working with its original client, Buckeye Electric, at the Orlando International Airport.

G. Del Hollingsworth, a project director at Pteris Global USA, credits CRAS with being an “invaluable asset” on company projects, fulfilling the roles of personnel manager, safety compliance officers and trainers.

Shane Robertson, director of business development for Scotvale Electrical Systems Inc. in Salt Lake City, Utah, said that CRAS “is well-versed in knowing the type and caliber of personnel we need on airport projects.”

Robertson said he values “and trusts Diane’s capability to provide the most skilled tradesman in the electrician field.”

Currently, the construction industry is addressing a shortage of skilled labor. A 2015 survey by the Associated General Contractors of America found that nearly 80 percent of construction

Diane Gurdak, founder and president of Construction Recruiters America Staffing Inc. businesses were having difficulties hiring skilled workers. “Fortune” magazine reported in September 2017 that at least 60 percent of contractors are reporting difficulty in hiring skilled workers, leading to concerns about the recovery of hurricane-impacted areas.

Gurdak acknowledged the shortage but emphasized that the industrial section of the construction industry is booming, creating many opportunities for multiple positions. She added that addressing the shortage means getting // FALL 2017

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to know employees’ strengths and weaknesses. “We are in the process of mastering a comprehensive diversity program measuring into thought, culture, experience and physical abilities,” Gurdak said. “We are providing and encouraging employees to extend their industry knowledge through certifications and training programs.”

According to Gurdak, many factors have contributed to the success of CRAS, including using resources available through state DOT programs, minority certifications providing bidding advantages to the customer base, exposure to top airport contractors, and safety training programs. “Our longevity in the industry means we have extensive knowledge that can be crucial to our client’s success,” she said. “We also are sticking within the confines of

“Fortune” magazine reported in September 2017 that at least 60 percent

of contractors are reporting difficulty in Hiring skilled workers. airport and industrial facilities. This strengthens our ability to properly vet field employees.”

to work toward an end goal regardless of the obstacles that are sure to come up.

Gurdak encourages those looking for success in the transportation industry to take advantage of the resources available to DBEs and affiliated minority programs. She suggests continuing education courses, Small Business Administration special financing/loan programs, networking events, and accessing online directories showcasing qualified DOT contractors. She also said that a successful person continues

“People and circumstances have a way of trying to hinder or discourage you when building your name in the industry; especially an industry built on men working at the core of most construction companies,” Gurdak said. “However, determination and persistence—paired with utilization of resources specifically geared toward minority persons—will ensure a prosperous outcome.”

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NORTH CAROLINA’S ECONOMY DEPENDS ON IT. NCDOT Office of Civil Rights 1511 Mail Service Center Raleigh, NC 27699-1511 919-508-1808 Phone https://www.ncdot.gov/about/regulations/equalopportunity/

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d b e

p r o g r a m

s p o t l i g h t

DBE firms and prime contractors attend a meeting hosted by the LaDOTD to exchange interests and needs in hopes of making effective teams to bid. LaDOTD hosts meetings like this one twice per year to create greater opportunities for DBE firms.

More Diverse Firms Doing

Business in the Bayou State

By American DBE Staff

L

ouisiana Department of Transportation and Development (DOTD) Secretary Shawn Wilson, Ph.D., is proud of the transformation that has occurred in the state’s Disadvantaged Business Enterprise Program since he was appointed in early 2016. Dr. Wilson has championed DOTD’s increased awareness of the importance of diversity and its commitment to doing business with diverse firms. His efforts, along with the DOTD Compliance Program Section, have resulted in more small and diverse firms getting certified and an increase in the amount of payments to DBE firms. “When I became Secretary, we went from a goal of 9.8 percent to a goal of over 13 percent, and we are on track to exceed that goal,” Wilson said.

Prior to becoming Secretary of DOTD, Wilson served as the department’s chief of staff under three transportation secretaries and two governors. This experience gave him a thorough understanding of the challenges facing diverse

firms in Louisiana and a philosophy on how to create success in the DBE Program once in the role of Secretary. He also created strong professional relationships with DOTD staff, the contracting and engineering communities, and legislators who needed to support the program to have success.

Much of the success thus far is due to a record number of companies coming to DOTD to get certified as DBEs, and then starting to bid on opportunities on the agency’s contracts. This is despite the fact the vast majority of firms that DOTD certifies don’t perform the types of work that DOTD does—like civil engineering and construction.

However, Wilson sees even greater potential to serve diverse firms by using DOTD’s DBE Supportive Services Program to educate businesses on how to work with the agency, and about opportunities with other agencies across the state of Louisiana. “We want to see companies of all types getting business because it creates economic development and jobs,” Wilson said. // FALL 2017

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Driving the improvement of the program is also a result of Wilson’s plan to rebrand the DBE Program in a more positive way. “We want to change the idea that you have to have the brand of a disadvantaged business, as opposed to a diverse business,” Wilson said. “The term ‘disadvantaged’ is a connotation of some lack of performance, or lack of ability; and therefore creates a handout opportunity—as opposed to a having diverse businesses that highlight the differences.”

Wilson sees three primary barriers to diverse firms having even greater success in competing for DOTD contracts: bonding, bidding and breaking the cycle. He says that many DBEs lack the bonding capacity to compete for larger DOTD contracts and believes it will take more time and effort for DBEs to develop the experience and capacity to grow in the industry. He also said that since many diverse firms are smaller, they must spend most of their time “doing work” instead of submitting bids for new opportunities, which makes it difficult to grow. Finally, he said that more has to be done to “break the cycle,” whereby firms with the capacity, experience and longevity continue to win work and grow larger, while smaller diverse firms are unable to develop the skills and capacity they need to compete with larger firms.

However, Wilson also offers three recommendations to diverse firms to overcome the barriers. First, he believes more firms should find ways to partner with one another, leveraging the best attributes of each firm for greater success. Second, he says businesses must set aside time to bid on more projects, because “the more you bid, the greater your chances are of getting work.” Third, he encourages diverse firms to join industry associations; and is considering strategies to provide assistance to firms who want to join

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associations such as the Associated General Contractors, Louisiana Asphalt Paving Association, or Concrete & Aggregates Association of Louisiana.

One of the strategies used by DOTD to promote partnering opportunities is periodic outreach meetings to help diverse companies and prime contractors connect to discuss upcoming projects. The latest meeting was held during October 2017, and had over 40 participants. “We host these meetings to allow potential subs and primes to exchange interests and needs in hopes of making effective teams to bid,” Wilson said.

As the only African American leading a state transportation agency, Wilson understands the challenge of creating more diversity in the highway transportation industry.

“There are around five women heading transportation agencies, and I am the only African American. It’s not an honor, but a distinction,” he said.

He believes the lack of diversity is representative of the lack of diversity in all areas of STEM (Science, Technology, Engineering and Math) careers. In addition, government civil service policies that create advancement opportunities based on tenure and minimum qualifications create an additional challenge when trying to recruit more diverse candidates in technical areas.

“There is already a shortage of diverse candidates, so the demand for them is higher.

When you consider salary requirements and the rate of advancement, it is hard to compete with the private industry,” he said.

While Wilson is encouraged by the results of DOTD diverse business efforts, he envisions even greater success in the future. His goal is to continue to bring in new firms to get certified and become engaged with business opportunities at DOTD. He then wants to see those companies grow to be successful, creating jobs and economic growth for Louisiana.

Finally, he would like to see companies grow to the point where they exceed the size limits for the federal DBE Program and become prime contractors on their own.

Wilson said Louisiana is an area rich in opportunity, and he likes to look at those opportunities—beyond the bottom line—as an opportunity to change how infrastructure is delivered and who does the delivering. Therefore he encourages ready, willing and able diverse firms from outside of the state to come in to get certified. “We don’t want firms to be discouraged by our numbers now, but to help us address the issues by coming in and making an investment in Louisiana, in terms of your workforce.”

LaDOTD Secretary Shawn Wilson, Ph.D.

Committed to the Success of Small Businesses Our success as a builder is only possible with the support of great project partners. Small businesses play a vital role in every project we build, and by investing in their future, we not only strengthen our industry, but also the communities we serve.

We are committed to providing economic opportunities that stimulate growth and development for the small business community. Over the years, Clark has awarded billions of dollars in contracts to certified small businesses. Our successful track record on projects across the country is positive proof of the valuable contributions that small and local firms make.

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Aviation

Airport Concession Performance Bonds

Help Increase ACDBE Opportunities

By American DBE Staff

A

growing number of airports across the country are now accepting performance bonds from concessionaires as acceptable security in a concessions agreement.

Administrators at these airports are confident the performance bonds are comparable to an irrevocable letter of credit or certificate of deposit—two traditional types of security often required by airports.

The amount of security required by airports is based on the Minimum Annual Guarantee (MAG), a minimum acceptable fee set by the airport to guarantee the rent requirement. While the most common airport-preferred

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and acceptable financial security for the MAG is an irrevocable letter of credit, performance bonds often provide a better alternative for concession operators.

Submitting a performance bond instead of an irrevocable letter of credit or certificate of deposit can offer significant cash flow savings to companies that win an airport concessions contract.

A performance bond requires the concession operator to obtain a surety company to issue the bond to the airport, guaranteeing payment if the operator fails to live up to contractual obligations to meet the MAG and other operational requirements. In order

to obtain a bond, the operator must complete the bonding application and pay an annual premium payment to maintain the bonding security.

The out-of-pocket cost for a performance bond is considerably less than the cost of an irrevocable letter of credit, which requires an operator to employ a banking institution to issue the letter of credit to the airport. The letter of credit is an official correspondence between the bank and the airport, authorizing collection if the airport makes a claim against the operator for not meeting the terms of the concession agreement. The concession operator often must deposit cash in the banking

institution or offer other liquid security in the amount of the letter of credit in order for approval by the bank; and must also pay a fee to the bank for this service.

Many Airport Concession Disadvantaged Business Enterprises (ACDBEs) prefer using performance bonds due to the lower out-of-pocket cost. Utilizing performance bonds allows operators to use their working capital in day-to-day operations or to pursue additional airport concession opportunities, instead on idling on deposit at a bank as security for a letter of credit.

The Federal Aviation Administration (FAA) has also recognized the benefit concessionaire bonds can have on ACDBE firms, especially those seeking to win their first contract with an airport. An official FAA guidance letter issue on February 3, 2017, from DBE/ACDBE Compliance Program Team Lead Gene Roth recommended a number of better practices to increase opportunities. One of those recommendations was: “Allowing concessionaires to use concessionaire bonds in lieu of a letter of credit to guarantee lease agreements. This practice can lower upfront investment costs and free up cash flow for ACDBEs.”

However, many airports across the U.S. still don’t accept performance bonds as a form of security, and still require all concession operators to submit an irrevocable letter of credit or certificate of deposit to secure a concession agreement. Industry experts and experienced concession operators have differing opinions about why some airports have resisted accepting performance bonds, but many believe it is simply a resistance to change by airport administrators. “Many airports have been slow to change, and have just kept in place what they have always done,” said Charlene Reynolds, president of Creative Insurance Concepts, an ACDBE-certified insurance company specializing in concessionaire bonds.

Another reason some airports may resist accepting performance bonds is a belief that collecting on a claim against the concession operator is more time-consuming and risky than making a draw against a letter of credit or cashing in a certificate of deposit. While this may be an accurate assessment, industry insiders say that it is a rare occurrence for a concession operator to default on an agreement. Therefore the risk is low, and the length of time between receiving a payment from a bonding company versus making a draw against of letter of credit doesn’t justify requiring concessionaires to pay the additional out-of-pocket cost for a letter of credit.

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In September 2017, the Airport Minority Advisory Council (AMAC), in partnership with Creative Insurance Concepts Inc., offered the first of a series of training courses on surety bonding for concession operators and airport administrators. The first seminar was titled “Concessionaire Bonds as an Alternative to a Letter of Credit.” The goal of the program was to educate ACDBE concession operators and airport administrators on the myths associated with bonding when compared to letters of credit, and to encourage more airports to begin accepting surety bonds as a way to provide security for a concessions agreement. The seminar also provided information to ACDBEs on the challenges that affect bond approvals and how airports can increase opportunities for ACDBEs by accepting performance bonds in addition to letters of credit.

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Charlene J. Reynolds, CEO of Creative Insurance Concepts Inc., partnered with the Airport Minority Advisory Council to sponsor a webinar series on the benefits of concessionaire bonding.

Reynolds led the training seminar, which also featured two concession operators who achieved significant savings by using performance bonds.

Through her business, Reynolds has assisted several concession operators with bonding to secure a contract at an airport. She said: “I had one client that

had a $300,000 letter of credit securing an airport lease agreement. We were able to replace the letter of credit with a $300,000 performance bond, which cost the concessionaire about $3,000 a year; freeing up nearly $300,000 in working capital that they were able to put back into operating the business.”

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Columbus Wins $50 million USDOT

transit

Smart City Challenge Grant

By American DBE Staff

T

he city of Columbus, Ohio will invest at least $140 million to implement innovative technologies and projects aimed at improving mobility in the city as a result of winning the USDOT Smart City Challenge. USDOT created the competition to promote state-of-the art strategies to improve transportation mobility in urban areas. Columbus will receive $50 million to complete a series of improvement projects that were proposed in its grant application.

Forty million dollars of the funds will come from USDOT and $10 million

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will come from Vulcan Inc. a company owned by Microsoft co-founder Paul Allen. Vulcan’s mission is to “find solutions for the world’s toughest problems.” Vulcan partnered with USDOT to sponsor the Smart City Challenge.

The goal of the Smart City Challenge is to create a national model for how mobility investments can have transformative effects in urban areas.

Columbus will combine the grant award with an additional $90 million raised by the city from private sources to develop

“smart” mobility solutions in the city.

“People are changing the way they want to move,” said Smart Columbus Deputy Chief Innovation Officer Brandi Braun. “This grant will give us a unique opportunity to implement projects to learn how to better serve the citizens of Columbus.”

Columbus won the Smart City Challenge over 77 other mid-sized urban cities across the country. The city submitted a proposal including a variety of strategies and projects using information technology, innovative

products and new strategies to improve the movement of people and goods around the Columbus area. However, Columbus doesn’t simply receive a $40 million check from USDOT; the city will need to complete USDOT-approved projects and then be reimbursed for the expenses by USDOT. Seven of the 78 cities that applied for the grant made it to the final round of the competition. Finalists included the cities of Austin, Texas; Denver, Colorado; Kansas City, Missouri; Portland, Oregon; San Francisco, California; Pittsburgh, Pennsylvania; and Columbus, Ohio.

Columbus indentified 15 potential projects to be completed using the USDOT funds and an additional seven projects using the Vulcan funding. Since the proposal was accepted, the city is further evaluating the projects before moving forward. “When we put the application together, we made some assumptions through that process,” Braun said. “Now we are taking some time to reaffirm, reassess and evaluate our assumptions to make sure we are solving real problems, not just creating solutions in search of a problem.”

The SmartColumbus.com website states that the goals of the Smart Columbus program are to: Improve people’s quality of life, drive growth in the economy, provide better access to jobs and ladders of opportunity, become a world-class logistics leader, and foster sustainability.

A press release by Vulcan after the announcement of Columbus as the winning city stated, “Using these resources, Columbus will work to reshape its transportation system to become part of a fully-integrated city that harnesses the power and potential of data, technology, and creativity to re-imagine how people and goods move throughout their city.”

"This grant will give us a unique opportunity to implement projects

to learn how to better serve the citizens of Columbus."

Brandi Braun, Smart Columbus Deputy Chief Innovation Officer

Using the internet and information technology to improve mobility is a central part of the Smart Columbus effort.

Proposed projects such as Integrated Data Exchange, Connected Vehicles, Common Payment, Multimodal Trip Planning, and Smart Mobility Hubs will all use innovative information technology solutions to enhance transportation options and efficiency.

Infrastructure and roadway improvement projects will use technology to improve transportation facilities. Potential projects in this area include: LED Street Lighting, Electric Vehicle Charging Stations, Collision Avoidance Systems, Mobility Assistance, Enhanced Permit Parking, Event Parking Management and Delivery Zone Availability Improvements.

Other potential projects identified by Smart Columbus include: Connected Electric Autonomous Vehicles, Truck Platooning, Oversize Vehicle Routing, and Interstate Truck Parking. All of these projects center around the theme of improving sustainability by reducing emissions, reducing // FALL 2017

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congestion and travel times, and making transportation options more accessible to underserved communities.

“The final projects are still in the conceptual phase,” Braun said. She expects the first business opportunities for small and disadvantaged firms to happen in 2018. However, she said Smart Columbus has already started outreach efforts to educate small and diverse firms about potential business opportunities. “We made presentations at the Ohio Municipalities Business Conference in August and presented information at a local chamber of commerce event,” Braun said. “We have also started meetings with the City of Columbus, Office of Diversity and Inclusion to discuss how to engage small and minority business throughout the process. However, we need to be a little further down the timeline, because we don’t have the requirements documented yet, but it’s definitely top of mind for us.”

Artist rendering shows the potential use of autonomous vehicles as a part of the Smart Columbus program.

Engaging small and diverse firms is part of the Smart Columbus desire to make sure the program’s benefits extend to all segments of the community. Braun said: “Our mayor sees mobility as the great equalizer of the 21st century. We are considering how we can ensure that all of our residents have equitable access to transportation options so they

can get to where they need to go; like the doctor, jobs, school, job training, etc.; ensuring that people have access to mobility systems that can get them to where they need to go—to live their best lives.”

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A global airport is looking for your business

At Dallas Fort Worth International Airport, we believe that creating a variety of business partnerships is vital to the contribution of our region’s economic growth. That is why we are fully committed to creating and sustaining an environment that empowers small, disadvantaged, minority and women-owned businesses, including concessions, to reach their global potential at DFW Airport. We invite your business to discover, connect and grow with us. Contact our Business Diversity and Development team today.

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civil/highway

Five Strategies to Access

Disaster Recovery Opportunities

By American DBE Staff

An aerial view shows damaged property following a hurricane.

T

he hurricane season of 2017 will go down in history as one of the costliest in American history.

In addition to the devastating and unfortunate loss of lives from the storms, estimates for the financial cost of the hurricanes range between $150 billion and $200 billion; ranking 2017 second only to 1993 (the year of Hurricane Katrina) in terms of cost. Three of the hurricanes affecting the U.S. in 2017— Harvey, Irma and Maria—created extensive damage across Puerto Rico and the states of Texas, Louisiana, Mississippi and Florida; leaving the areas challenged with recovery efforts to restore their communities.

One of the first emergency needs in areas struck by a hurricane is the restoration of roads, bridges and other

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transportation systems that allow people, goods and equipment to move within the affected area. Many small and diverse firms in these areas have offered their services to assist local transportation authorities with recovery efforts. These firms often provide goods and services like heavy equipment, dump trucks, debris removal, lighting, signage repair and erosion control to allow mobility to return to the area quickly.

While recovery efforts for 2017 are well underway, the ongoing threat of catastrophic hurricanes, flooding and other natural disasters will make restoring normalcy a challenge for years to come. Therefore, small and diverse firms hoping to provide their services to help with future disaster recovery efforts should follow five strategies to

ensure they are ready, willing and able to provide assistance to transportation agencies when a disaster strikes.

1. GET ON THE LIST In order to have the best opportunity to assist when disaster strikes, companies should make sure to maintain the proper pre-qualifications necessary to provide emergency and other highway contracting services to the local transportation authority. In addition, maintaining an active certification in the federal Disadvantaged Business Enterprise Program and other local diverse business programs may provide additional subcontracting or small business opportunities. Once a disaster is imminent or has already occurred,

A private citizen works to cut limbs from a fallen tree after a hurricane.

"My company was the #1 emergency contractor..."

"It had nothing to do with being black or a minority, I was on the approved list."

Ann McNeill, president and owner, MCO Construction & Services Inc. it is probably too late to complete these processes and participate in the contracting opportunities, especially as a first-tier contractor for the transportation authority.

“The first thing you have to do is be certified in the right NAICS codes to do the work and make sure you have the technical qualifications,” said Ann McNeill, president and owner of Miami-based MCO Construction & Services Inc. McNeill’s company has worked on recovery projects during the last five hurricanes to hit South Florida, dating back to hurricane Andrew in 1992. “My company was the No. 1 emergency contractor, above Waste Management and BFI during Andrew, because I was on the approved list for emergency management services with the county,” McNeill said. “It had nothing to do with being black or a minority; I was on the approved list.” McNeill said she had renewed the emergency permit for five years before the first opportunity came to work on an emergency contract in 1992. “I have kept my permit updated and we have worked the last five hurricanes,” she said.

2. EXPRESS INTEREST Companies wanting to participate in emergency disaster recovery contracts should reach out to the Department of Transportation local office in the areas they wish to work far in advance of a severe weather event. During this contact, the company representative should find out how contractors are selected for these opportunities and understand the administrative and operational requirements for participation. Companies can also use this time to inquire about any teaming or partnership opportunities to work with other larger or more experienced firms to gain experience in emergency situations.

3. CONSIDER SUBCONTRACTING A state department of transportation may procure “on-call” or “as-needed” contracts for emergency services for larger areas such as an entire county. In this case, the contract’s requirements may limit opportunities to firms

with the capacity to complete larger quantities of work. However, small or diverse firms can seek work as subcontractors to assist the prime’s workforce or to handle a portion of the work on behalf of the prime contractor.

One benefit of subcontracting for a larger prime is that prequalification for the types of work performed may not be required by the transportation authority. This allows small or diverse firms to participate in opportunities that would have otherwise been unavailable.

4. UTILIZE RESOURCES Small and diverse firms can streamline their efforts and shorten the learning curve of getting involved with disaster recovery contracts by taking advantage of assistance resources provided by the state’s DBE Supportive Services program. All 50 states, along with Puerto Rico and the Virgin Islands, receive funding from the U.S. Federal Highway Administration to provide supportive services to help diverse firms receive training and assistance with finding contracting opportunities.

Firms that are interested in doing work with the local DOT should be aware of services that can help provide education on the best way to get involved with emergency contracting opportunities.

“Firms should go in and make sure their firm is in the databases of the // FALL 2017

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supportive services providers and make sure the supportive services provider is aware of their firm’s capacity and capabilities to work on emergency contracts,” said Terry V. Watson, Florida DOT State DBE Program Coordinator. “The supportive services provider, in turn, will look out for any opportunities as those contracts come out; to make sure that qualified DBEs are aware that a contract is out, and that there is actually work being done on it.”

RESPOND PROMPTLY Responsiveness is critical when seeking opportunities to provide disaster recovery services. Health and safety concerns are of the highest importance when a local transportation agency hires companies to clear roads and bridges of debris and restore mobility to citizens. Companies seeking to do business during those times must have the manpower, equipment and financial resources available to mobilize immediately when called upon for service. “You have to be aligned with other independent haulers and equipment operators, because it’s an emergency,” McNeill said. “When you get the call, you have to mobilize in a matter of hours, not days. We had some companies that lost the work, because when they got the call, it took them more than 24 hours to mobilize.”

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A pile of debris awaits removal after a hurricane.

Following these five strategies will help diverse firms develop greater opportunities to provide emergency services after a natural disaster. These opportunities can be lucrative and offer work when many other projects shut down due to the weather conditions. McNeill said: “It is a great opportunity for minority or small businesses to work almost 20-hour days.

It’s a phenomenal opportunity, and it goes very quickly; but you get paid a lot of money if you are positioned right.”

Bonding as an

Empowerment Tool

business development

By Joanne Brooks

Members of the National Forum for Diversity in Construction meet in Washington, D.C. for the Surety & Fidelity Association of America Bonding Summit. Pictured here (left to right) are Rick Moore, Marvin Carolina Jr., Linda Graves, Steve Lamar, Joanne Brooks, Fred Coleman III, Simeon Terry, Chrystal Stowe, and Pat Malone.

I

t’s a fact: Small businesses are the backbone of the American economy.

And surety bonding is the lifeblood of any successful contractor, regardless of size.

Another fact: Construction is risky business. Contractors often face myriad challenges during the life cycle of a construction project.

Recognizing these facts, the United States government has required surety bonds on public works projects since 1894; and increasingly, many prime and general contractors use bonds for prequalification and the payment and performance assurance on private work. There is no doubt that surety bonds protect taxpayer and owner dollars, as well as ensure that subcontractors and suppliers (that properly perform work) are paid.

Yet, when bonding is mentioned to small, emerging or minority contractors, there can be a great deal of trepidation and a sense of defeat. The simple truth is that the requirements needed to run a strong, thriving business are the same requirements needed to become bondable.

The Surety & Fidelity Association of America (SFAA) is leading the effort to educate small, emerging and minority contractors on why bonding matters, and changing the conversation from bonding as a barrier to bonding as an empowerment tool that leads to controlled growth, job creation and legacy wealth.

Successful contractors understand that construction is risky business and that risk mitigation includes not only achieving excellence in one’s craft, but also handling the back-office issues of accounting, engineering, human resources and law.

A surety professional helps contractors determine their strengths and weaknesses.

Bonding benefits small contractors by ensuring payment; but also because the bonding process helps businesses understand their viability.

One benefit of a surety is that it can provide objective analysis of a contractor’s business and financial health. Sureties are likely to say “no” if a particular project is out of a contractor’s area of expertise; if it is not in their interest to pursue the work;

or if a contract contains unfavorable terms and conditions. A surety looks beyond just winning work, focusing instead on viability and profitability—and helps the contractor consider what risks a particular project might pose.

Because surety professionals know the pulse of the marketplace, they can provide invaluable insights. The surety also is keenly aware of what factors lead to contractor distress and failure. The surety looks at the broad picture, not at just one project, and can assess the risk and determine if the risk makes sense to the contractor, given that company’s financials and performance record.

When a conflict arises, the surety’s services are invaluable because the surety can independently assess a situation in pursuit of the best outcome. The surety wants the contractor to complete its work, and it often only takes the surety being there to assist with cash flow or other support to help the contractor through a short-term crisis. The strength of the surety’s balance sheet stands behind the contractor, ensuring // FALL 2017

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Leaders of successful diverse construction firms discuss how bonding capacity helped their company grow during a panel discussion at the Surety & Fidelity Association of America Bonding Summit. Pictured here (left to right) are Clarence McAllister, CEO, Fortis Networks; Patricia Bonilla, President, Lunacon Construction Group; and Beverly Thomas, President and CEO, Regional Contracting Services, LLC. that projects get completed, and bills get paid on time.

The surety industry has a longstanding commitment to assisting small, emerging and minority contractors with becoming sustainable contractors. The SFAA developed the Model Contractor Development ProgramÂŽ (MCDP) in 2000 to give disadvantaged contractors the educational and practical tools necessary for them to become successful business owners and bond ready. The MCDP consists of an educational component and bond-readiness component, during which participants work one-on-one with surety professionals to get their finances and bond applications in order.

In 2010, SFAA partnered with the U.S. Department of Transportation to implement the Bonding Education Program to assist Disadvantaged Business Enterprises in becoming bond ready for meeting requirements to bid on and win transportation-related construction and services contracts. Through these programs, contractors learn to develop a trustbased relationship with a licensed surety, become bondable, and have the ability

to successfully bid on contracts and win profitable work. Since 2010, the SFAA has held more than 100 Bonding Education Programs, and contractors have achieved approximately $700 million in bonding.

Working with prime contractors, the SFAA is steadily increasing the pool of qualified DBEs that are capable of bonding and participating in the building of American infrastructure.

The federal government’s commitment to small, emerging and minority contractors is further exemplified in the Small Business Administration’s (SBA) Bond Guarantee Program. Working in conjunction with the surety industry to assist these contractors, the program has historically provided surety bond guarantees between 70 percent and 90 percent to participating sureties on qualified, yet more risky businesses. The law changed recently, and now the bond guarantees are up to 90 percent. In the SBA program, sustainable contractors are developed through the combined effort of private industry and public support.

The summit also highlighted private owners who understand the benefits of bonding and are focused on empowering contractors to take advantage of job opportunities.

For example, Johns Hopkins University has provided educational opportunities for contractors to learn how to build strong businesses and achieve bondability.

Recently, the SFAA held its Construction Diversity & Inclusion Summit 2.0 in partnership with the Airport Minority Advisory Council, featuring the National Forum for Diversity in Construction. The SFAA and its partners recognized that small and emerging contractors benefit the most from the bonding process when it is tied to procurement opportunities.

Because obtaining bonding is an ongoing process, taking advantage of educational opportunities will benefit contractors for years to come. Once a contractor understands the fundamentals, the business can begin to grow in a measured and sustainable way.

For small, emerging and minority contractors, bonding may seem intimidating at first. However, for those who are willing to learn about the process and put in the time and effort to build their businesses, they will come to recognize that being bondable is an invaluable asset that leads to strong, sustainable businesses.

Joanne Brooks is vice president and counsel at The Surety & Fidelity Association of America. For more information on the benefits of bonding or the programs offered by SFAA, visit surety.org.

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business development

How Can Cities Boost Minority-Owned Businesses?

By Buying from Minority-Owned Businesses Rodney K. Strong, Esq.

W

hen Maynard H. Jackson Jr. took over Atlanta city hall in 1974, one of his primary goals was to broaden the opportunities for minorities to do business with the city. The upstart mayor envisioned improved socio-economic conditions for people of color in an environment that was fair, equitable and welcoming for all. By the time he left office in 1982, Atlanta’s first black mayor had made remarkable strides in accomplishing his lofty aims, despite the social underpinnings of the times.

Atlanta had adopted the moniker “The City Too Busy to Hate” during the Civil Rights movement. But Maynard really moved Atlanta toward the realization of that slogan, by creating a legacy of inclusiveness in municipal procurement and providing opportunity for advancement both inside city hall and throughout the metropolitan region.

The network of minority- and womenowned businesses, which received their first opportunities with the city of Atlanta, has continued to grow, with many of those local businesses continuing to work with Atlanta as well as other jurisdictions across the country.

Philadelphia City Hall in Philadelphia, Pennsylvania

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Maynard was my mentor and friend, and I had the opportunity to work with him as he was guiding the city to a standard of business diversity that has set national benchmarks. I’m proud our firm was selected to expand upon the example he set by leading the latest iteration of City Accelerator; a joint initiative of the Citi Foundation and Living Cities to foster municipal innovation, which will be focused on increasing the diversity of municipal

vendors and contractors to direct more dollars to local minority-owned businesses.

In June, the five cities selected to take this work on – Charlotte, Chicago, Los Angeles, Memphis, Milwaukee – began their journey together in Atlanta.

Previously, Atlanta had participated in a City Accelerator effort focused on community engagement and was familiar with the important work that the program undertakes. Atlanta leaders – chief among them, Mayor Kasim Reed – offered to host the first convening of this cohort in an effort to expose the new participants to the city’s exemplary leadership in this area.

Acquiring goods and services to run our major cities is a critical task necessary to keep our operations effective.

Meanwhile, building the capacity of small and diverse businesses helps to encourage a vibrant and healthy local economy. Having local governments engaged in taking an equitable approach to procurement helps to ensure that there will be equal business opportunity – a dream of Maynard’s – for business owners of colors to compete, grow and improve their socio-economic conditions. However, doing business in this manner is a daunting proposition, often complicated by cultural challenges, bureaucratic boundaries and legal pitfalls. Regardless, this endeavor adds significant value to the fabric of a city.

The cities in this initiative, as well as others who were working to create inclusive local economies, will tackle challenges of infrastructure, insufficient resources, a need for re-engineered

business practices, decentralized and disjointed processes, political will and cultural changes, with the goal of making economic opportunity more inclusive and using these opportunities to improve the outcomes and conditions of disadvantaged people.

Despite these and other challenges, leaders from these five cities have already made strides toward more inclusive business dealings. Each city’s team has brought to the table tools that are increasingly pushing the boundaries of innovation. Based upon what I’ve seen, they are well equipped to succeed.

In 2013, the City of Charlotte applied the recommendations of a disparity study to create Charlotte Business INClusion, a hybrid minority, women, and small business enterprise (MWSBE) program that set both race- and gender-conscious goals as well as race- and gender-neutral procurement targets. In a certified vendor pool dominated by minority- and women-owned businesses, Charlotte saw a 51 percent increase in spending with MWSBEs from fiscal 2015 to fiscal 2016.

Chicago’s procurement office has continued execution of its Procurement Reform Task Force recommendations, which has helped produce their quarterly Buying Plan and other race-conscious and race-neutral approaches. Tools like the Buying Plan help city officials take intentional steps to engage and provide supportive services to their small and minority businesses. The Buying Plan looks ahead six quarters with the goal of deconstructing interdepartmental silos by standardizing the procurement information requested by all 29 city departments.

Los Angeles has the most minority- and women-owned businesses of any city in the nation, and city leaders have recognized the need for procurement reform and consolidation.

The city has taken a critical look at its organizational operations, and has begun to build out new processes designed to increase inter-agency accountability and participation along with better support for its business community. Its Business Inclusion Program awarded a total of $126.5 million in contracts to MWBEs during fiscal 2016 – more than 8.5 percent of the total share – but they acknowledge there is significant opportunity to grow.

Charlotte saw a

51 percent increase

in spending with MWSBES from fiscal 2015 to fiscal 2016

The City of Memphis embarked upon its “We Mean Business” initiative, offering numerous programs with MWBEs in mind. From the “Propel: Diverse Business Accelerator” that helps to launch potential city partners from MWBEs, to Hispanic outreach prioritizing connections between the city and Hispanic-owned businesses, Memphis has tackled a wide swath of procurement reform projects. As a result, city officials last year reported that more than $4.4 million was awarded through its Small Business Enterprise program, and they have made significant gains in total spending with MWBEs. With more than 60 percent of Milwaukee’s population (of roughly 600,000 people of color), the city is constantly looking for ways to support its small and minority business community.

Officials hope to capitalize on these opportunities by leveraging existing

resources both internally and from outside the city, and by using these tools to expand inclusion and participation.

Ultimately, they seek to increase the number of qualified small and minority businesses to perform on the prime contract level.

The ambitious goals and fantastic accomplishments achieved by each of these five cities set them apart from other municipalities, making them – among other things – ideal candidates for this City Accelerator initiative. We are excited for the opportunity to offer our expertise in leading them in their procurement reform and re-engineering process. Their previous commitments serve as hopeful indicators of continued increases to the rate of success they will enjoy upon completion of this program. Ultimately, we are convinced they can become beacons of light for the rest of our nation.

Each city’s achievements and individual programs advance the legacy of diversity in municipal and enterprise partnering that Maynard Jackson started here in Atlanta and envisioned for the nation.

The city of Atlanta set the example that through fairness, everybody wins; changing the culture of a city forever. All Maynard wanted was an equal business opportunity for everyone. It is our hope that by adopting these same ideals and these same perspectives, we will one day be able to say the same for the cities in this City Accelerator cohort.

Rodney K. Strong is chairman and CEO of Griffin & Strong, P.C., a law and public policy consulting firm based in Atlanta, GA. Since 1992, the firm has represented individual clients, small businesses, corporations, and government entities in litigation, real estate, corporate law, public policy consulting, legislation, contract compliance, supplier diversity consulting, and disparity research. www.gspclaw.com // FALL 2017

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The

In partnership with:

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Register Today! Go to go.ncsu.edu/sdcc, or call 919.515.2261 for more information.

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NAMC News

By American DBE Staff

NAMC Greater Atlanta Member Bryson Constructors Selected As Joint Venture Partner In Philips Arena Renovation Project.

NAMC Student Chapter Members Welcome Wendell Stemley To Purdue University.

N

P

The $192.5 million renovation will feature a first of its kind idea courtside, as the Hawks plan to install a bar that is within just a few feet of the floor itself. The courtside bar takes the headlines, but the overall suite and bar upgrades throughout the arena clearly cater to a broader audience.

Hawks COO Thad Sheely, in addressing the assembled crowd, said, “People don’t want to be confined to their seats anymore,” and that he believes the sentiment is “true for our high-end season-ticket holders, as well."

Expanding his role of ambassador for the association, Stemley reinforced the importance of the NAMC Student Chapter and discussed possible ways of supporting the program and offering it to other schools, like junior colleges. He also encouraged student chapter members to help future construction program students by supporting the K-12 STEM program.

AMC member Bryson Constructors has been selected to rebuild the Philips Arena in Atlanta, Georgia; along with Turner Construction, AECOM Hunt, and SG Contracting as the Atlanta Hawks Philips Project JV Team.

As for off-court items, the organization also introduced a 250-seat master conference room and four “breakout” rooms that come with the use of touch-screen technology and top-level amenities for business operation, providing the arena with multi-use ability that can potentially aid in generating additional revenue beyond the basketball floor.

In addition, the Hawks named Atlanta-based HJ Russell & Company, in association with Legends Project Development, as the project management team.

For more information about membership with the NAMC Greater Atlanta Chapter, contact Andrea Barnett, executive director, or visit the website at namcatlanta.org. Contact information for active NAMC chapters can be found online at namcnational.org/mem-bership/local-chapters.

urdue University NAMC Student Chapter members and Polytechnic Construction Management Technology faculty adviser, Cy Rangel, welcomed NAMC President Wendell Stemley as a guest speaker for the group’s regular monthly meeting during the fall 2017 semester.

The students had many questions, including: the importance of internships, engaging the younger generation, Mr. Stemley’s career path, and how he was able to succeed as a minority in the industry—just to name a few.

The mission of the NAMC Student Chapter is to assist women and minority students studying in the fields of construction management, engineering, or design and management with professional and academic growth. The chapter strives to provide support, encouragement and opportunity to its student members.

For more information about supporting or joining the NAMC Student Chapter, contact the NAMC national office at (202) 296-1600 or email Doreen Littlejohn, program director, at: dlittlejohn@namcnational.org. // FALL 2017

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Upcoming National Events National Association of Black Women in Construction (NABWIC) Annual Meeting

Airport Minority Advisory Council (AMAC) Airport Business Diversity Conference

January 17-19, 2018 in Tampa, Florida I www.nabwic.org

August 21-25, 2018 in Seattle, Washington I www.amac-org.com

National Association of Minority Contractors (NAMC) 49th Annual Conference; June 13-15, 2018 in Plano, Texas

American Contract Compliance Association (ACCA) 2018 National Training Institute

June 13-15, 2018 in Plano, Texas I www.namcnational.org

August 28-September 2, 2018 in Cleveland, Ohio I www.accaweb.org

Conference of Minority Transportation Officials (COMTO) National Meeting and Training Conference

National Association of Women Business Owners (NAWBO) National Women’s Business Conference

July 28 - August 1, 2018 in Baltimore, Maryland I www.comto.org

September 23-25, 2018 in Spokane, Washington www.nawbo.org/events/

National Association of Women in Construction (NAWIC) 63rd Annual Meeting & Education Conference August 15-18, 2018 in Orlando, Florida I www.nawic.org

National Minority Supplier Development Council (NMSDC) 2018 NMSDC Conference + Business Opportunity Exchange October 14-17, 2018 in Austin, Texas I www.nmsdcconference.com

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