American DBE Magazine - Summer 2017 by American DBE Magazine

Summer 2017

Maria D. Rios Michael J. Garner

Also in this issue MWAA Renews Commitment to Inclusion

DBEs

Standing the

Test of Time

Technique Concrete is Rock Solid Airport P3 Projects Trending Across America L.A. Metro Awards $90.8 Million Contract to DBE Joint Venture

Clark Construction develops

Strategic Partners // SUMMER 2017

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Features

Transportation

08 Metropolitan Transportation Authority

30 Aviation

Construction 13 Clark Business Development Program Builds Strategic Partners

34 Transit Metro Board Awards Largest Contract Ever to DBE

MTAâ&#x20AC;&#x2122;s Investment in Small and Diverse Businesses Achieves Outstanding Returns

18 Staying Power

DBEs McDanielâ&#x20AC;&#x2122;s Construction and Resource International Stand the Test of Time

Airport P3s Gaining Momentum as an Infrastructure Financing Strategy

Joint Venture

38 Civil/Highway Lane Construction Builds DBE Program on Foundation of Integrity

DBE Power Players

Business Development

22 Rock Solid

in the ACDBE Bridge 41 Cracks Reflections on the Federal Program

Technique Concrete inducted into the NAMC Hall of Fame

26 MWAA

Leintu Appointment Revitalizes MWAA Supplier Diversity Program

42 Civil Rights in Trump Administration What Might be Ahead for DBEs

44 SBTRCs

SBTRCs Lead DBEs to Opportunities in Transportation

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

34 Summer 2017 Volume 5, Issue 2 Publisher: Shelton A. Russell

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Editorial: TweetPublish Publish EmailConnect ConnecB Post Tweet Publish Email Connect Blog Link Pin Hangout Share—REPEAT—Post Post Tweet Email Colette Holt, Regular Contributor Kevin Holt, Contributor Sarah Magargee, Writer Philip D. Russell, Writer Jordan Taylor, Writer Headquarters: 514 Daniels Street, #186 Raleigh, NC 27605

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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)

From the Publisher

A Vision of Victory or a Vision of Defeat

have somehow made it onto the distribution list of a few organizations or individuals that appear to have the mission of sharing information about how bad programs like the Disadvantaged Business Enterprise Program are performing in leveling the playing field and increasing inclusion in the transportation industry. I try to make a point to read the information with the hopes that somewhere in the scathing critique of business diversity programs, I will find a solution or at least a recommendation of how to improve the situation. However, none seem to follow. American DBE Magazine was founded on the premise that although initiatives like the DBE Program are still fighting an uphill battle against discrimination, apathy, and neglect; there is still no better solution to increase opportunities for minority- and women-owned businesses. Therefore, we must strive to make improvements to these programs with faith and determination to ultimately achieve the goal of equal inclusion in the government and private contracting opportunities that are essential for economic development and wealth building for all segments of American society. With this in mind, American DBE Magazine will always promote a vision of victory for DBE firms, focusing more on companies and programs doing the right thing and making a positive impact, rather than promoting a vision of defeat that all is lost. This issue of American DBE Magazine continues with this focus. This issue features the continued success of New York MTA’s Small Business Development Program. The MTA program reached its seven-year anniversary and is continuing to change the lives of businesses working for the nation’s largest transit agency. This issue also highlights agencies like the Metropolitan Washington

// SUMMER 2017

Aviation Authority, the Los Angeles County Metropolitan Transportation Authority, and the USDOT Small Business Transportation Resource Centers. Each of these organizations is striving to increase DBE participation in transportation opportunities—and finding success. Finally, this issue highlights both DBE firms and large corporations that are advancing opportunities for other companies by performing exemplary work like Atlanta’s Technique Concrete, or by engaging in partnerships with DBE firms like Clark Construction Group and Lane Construction. At American DBE Magazine, we know that DBEs across the country are still fighting an unfair battle for equal opportunity, but we also know that only things worth having require fighting for. So we encourage all that have a vision of victory to keep fighting, and we will keep telling your stories. Best wishes, Shelton A. Russell, Publisher American DBE Magazine

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Feature

Members of the MTA Small Business Development Program with MTA Chief Diversity Officer Michael J. Garner and Deputy Chief Diversity Officer George Cleary. Pictured from left to right: Andrew Simmons, Lashay’s Construction & Development Company; Hely Duarte, Zion Contracting; Michael Garner, Waquas Mahmood, Minhas Construction Corp.; Deighton C. Taylor, Malcolm Patrick Corporation; and George Cleary. Photo: Patrick Cashin/Metropolitan Transportation Authority On the cover: Small Business Development Program member Maria D. Rios, president and CEO, Classico Building Maintenance and Michael J. Garner, chief diversity officer, MTA. (Photo: Patrick Cashin, MTA)

MTA’s Investment in Small and Diverse Businesses

Achieves Outstanding Returns By American DBE Staff

mall and diverse companies in the New York Metropolitan Area are gaining unprecedented access to transportation business opportunities from the Metropolitan Transportation Authority (MTA) Small Business Development Program. The program began in 2010 when the MTA made a significant investment of resources and manpower to expand its small and diverse business development efforts, expecting the investment to create economic development, jobs, and a larger contractor base to support America’s largest transit system.

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MTA’s Small Business Development Program (SBDP) has exceeded expectations in its first seven years. MTA reports companies in the program have completed more than $230 million in MTA contracts and created over 5,000 jobs since 2010. Additionally, the $230 million earned by these firms saved MTA over $8 million on the 162 contracts completed, when their pricing is compared to the preliminary engineer’s estimates for the projects. These results make the program a winning investment for the MTA and a great opportunity for the firms participating in the SBDP.

“The mandate was clearly delivered: develop a new way to include small business in MTA procurements...” On the early morning of August 6, 2016, workers helping to build the East Side Access project placed steel girders for the Long Island Rail Road’s 48th Street Bridge in Queens, NY. MTA’s Small Business Development Program aims to help diverse firms become prime contractors on development projects with MTA operating agencies.

Michael Garner, Chief Diversity Officer, MTA

Photo: Patrick Cashin/Metropolitan Transportation Authority

The SBDP is led by Michael Garner, MTA’s Chief Diversity Officer. As the program’s architect, Garner is the program’s champion within the organization. Garner joined the MTA in 2009 after leading a similar mentoring and business development program as a senior director at the New York City School Construction Authority. Garner said he came to MTA with a mission to improve the agency’s performance in doing business with small and diverse companies. “The mandate was clearly delivered: develop a new way to include small business in MTA procurements,” Garner said. “This directive became the driving force for the MTA Small Business Development Program.” Garner’s leadership, the support of MTA executive leadership, and a dedicated team of internal staff and contractors helped MTA’s payments to diverse firms increase from less than 6 percent in 2010 to more than 24 percent in the seven years since starting the SBDP. The increase in payments represents more than $1.4 billion in payments to M/W/ DBE firms. However, MTA still plans to do even more, based on

New York Governor Andrew Cuomo establishing a goal of 30 percent for M/W/DBE participation during his administration. The ultimate goal for SBDP is helping small firms increase capacity and business acumen in order to become successful contractors for the MTA, an agency with an annual budget of more than $14 billion. The goal is achieved through implementation of a comprehensive mix of educational training, mentoring, business & technical assistance, and direct contracting opportunities with the MTA. “We are giving businesses the opportunity to become contractors with the MTA and control their own destiny,” Garner said. “Our program is being looked upon as a national model, addressing the historical barriers to entry, and affording our M/W/DBE population the ability to work as a prime for North America’s largest transportation agency.” MTA’s success can be attributed to an earnest approach to bring small and M/W/DBE firms to the table, providing them training and support, and then giving them the opportunity

to do business with the agency. The SBDP is made up of two distinct components: The Small Business Mentoring Program and The Small Business Federal Program. Firms with business experience, but annual revenues less than $3 million, can apply to enter Tier 1 of the Small Business Mentoring Program. Tier 1 lasts for four years. During this period, companies must complete a 13-course educational curriculum and undergo a thorough business assessment to determine their developmental needs. They also have the opportunity to compete for designated contracts with one of MTA’s agencies: MTA New York City Transit, the MTA Long Island Rail Road, the MTA Metro-North Railroad, MTA Bridges and Tunnels, and the MTA Department of Buses. These contracts range from $25,000 up to $1 million. In addition, Tier 1 firms receive mentoring and one-onone coaching from TDX Construction Company, a New York City based construction company contracted by the MTA to administer the Small Business Mentoring Program.

// SUMMER 2017

As of June 2017,

over 301 companies have enrolled in the Small Business Mentoring Program or the Small Business Federal Program

SBDP has identified A look at the Manhattan side of MTA's East Side Access Project under Grand Central Terminal during construction. This area is now the Long Island Rail Road passenger concourse.

430 projects totaling

$501 million over the next five years to be contracted through the SBDP

Photo: MTA Capital Construction / Rehema Trimiew

After four years, Tier 1 firms are eligible to apply for Tier 2 of the Small Business Mentoring Program. Tier 2 firms are eligible to compete for designated projects up to $3 million, but they must be able to provide surety bonding to secure a contract. During Tier 2, firms are no longer mentored by TDX Construction, but continue to receive guidance and mentoring on issues related to their growth and success. Tier 2 of the Small Business Mentoring Program also lasts for four years. Firms with annual revenues exceeding $3 million— making them too large to participate in Tier 1 of the Small Business Mentoring Program—can apply to join the Small Business Federal Program. The Small Business Federal Program launched in 2013, and is the first small business development program approved by the Federal Transit Administration for use on projects funded with federal dollars. Companies admitted to the Small Business Federal Program must have bonding capacity up to $3 million and provide two references for commercial contracts exceeding $500,000 in value. As of June 2017, over 301 companies have enrolled in the Small Business Mentoring Program or the Small Business Federal Program. These firms work to win contract opportunities with the MTA anticipated to average more than $100 million per year through 2020. “We have already identified 430 projects totaling $501 million over the next five years to be contracted through the SBDP,” Garner said. “These are real opportunities for M/WBE firms to become prime contractors to the MTA.”

// SUMMER 2017

Other major benefits of the SBDP for participants are the prompt payment of invoices, access to capital, and access to bonding. All contractors awarded a contract under the SBDP are paid for work completed within ten days of submitting an approved invoice. MTA also has partnered with Carver Savings Bank to work directly with firms receiving a contract from an MTA agency to offer loans to help finance the completion of the job. To date, Carver Savings Bank has extended 84 loans totaling $11.6 million to firms in the SBDP. Finally, Willis of New York has teamed with Centaur Insurance Services and Crum & Foster Surety to offer SBDP contractors exclusive access to bonding through its program model. Payment performance bonds have been required and supplied by SBDP contractors on 36 contracts, totaling $68 million. The SBDP has produced numerous success stories of firms completing their first prime contracts for MTA agencies through Tier 1 and Tier 2 of the Small Business Mentoring Program and the Small Business Federal Program. One of those firms is Zion Contracting LLC, located in Lynbrook, N.Y. on Long Island. Hely Duarte started his company as a painting subcontractor in 2009, just three years after his immigration to New York from the Dominican Republic. Duarte joined the Small Business Mentoring Program in 2011 and graduated to Tier 2 of the program in 2015. Zion Contracting has completed five contracts through the SBDP, totaling over $5 million. The company has since diversified from a painting subcontractor to a general contractor, offering a wide range of building restoration services. “The program has been great for us,” Duarte said. “We have been able to take on larger projects

working for the MTA, and we have been able to win larger projects outside of the program as well.” Most recently, Zion Contracting won a $7 million contract with New York City Transit, a division of the MTA, for a bus depot rehabilitation project related to the Hurricane Sandy recovery effort. “We have not only been able to grow by winning contracts, but have improved our accounting and administration through the program,” Duarte said. “Before we joined the program we were doing projects in the hundreds of thousands of dollars, now our projects are in the millions.” Andrew Simmons, president of Lashay’s Construction is another entrepreneur that has grown as a result of being in the SBDP. Simmons joined Tier 1 of the Small Business Mentoring Program in 2011 and then won his first MTA contract as the prime contractor for the Metro-North Railroad Port Jervis Station Improvement Project. The $644,000 project included demolition and removal of the existing platform shelter by replacing it with a new platform shelter, installation of temporary shelter, light poles, concrete slabs, asphalt surfacing and site work. The project also required Lashay’s to upgrade the station’s existing electrical system and install a new public announcement system. After this project, Lashay’s won the $934,000 Avenue N and Avenue X Station Help Points Project. Then not long after graduating from Tier 1 and being accepted into Tier 2 of the Small Business Mentoring Program, Lashay’s won a $2.5

million bonded contract for renovation work in the Queens Midtown Tunnel that includes renovating the terracotta roof, installing new siding, replacing the inside piping, and repairing the evase stacks. Simmons said, “The program has helped us learn all of the things we need to know be to a prime contractor – things like safety, submittals, and contract administration. We don’t get this type of experience working as a subcontractor.” Garner is very pleased with the success the SBDP is having by providing small firms—especially DBEs—the opportunity to work for the MTA. He believes programs like the SBDP can create a new paradigm for mentoring and developing contractors in the transportation industry and improve communities as well. “The reason why these programs are so very important is because not only should we spend taxpayers’ money in a cost-effective manner, but in an inclusive manner as well,” Garner said. “Access to contracts in the government and private sector equals home ownership, better educational opportunities, and better health care options for employees of emerging companies.”

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// SUMMER 2017

Feature

Clark Construction Business Development Program

Builds Strategic Partners By American DBE Staff

Graduates of the 2016-2017 Clark Strategic Partnership Program after graduation ceremonies at Clark Construction headquarters in Bethesda, Maryland

lark Construction Group requires high-quality strategic partners to maintain its ranking as one the largest construction companies in America. But the company does not just wait for qualified firms to walk through the door. Instead, for the past 12 years, Clark has sponsored a business development program designed to help firms successfully work on major construction projects. Since 2006, Clark Construction’s Strategic Partnership Program has allowed the firm to recruit, educate and mentor small businesses by helping them acquire the technical and business skills necessary to become a successful business strategic partner, and a profitable business in the construction industry. To date, 554 companies have graduated from the 10-month program and many have gone on to work on Clark Construction projects. The program was primarily developed by Clark’s Vice President Wes Stith, who is a purchasing manager and the company’s Small Business Liaison Officer. Stith realized the need for a program of this type after noticing that while many small companies had good construction

skills, these firms often lacked the business skills required to work successfully for Clark on large construction projects. Stith pulled together leaders within the Clark organization, along with external business experts, to develop a program to meet the needs of small businesses—particularly those owned by minorities and women. “What we are doing is helping companies to increase their size, scope, and scale—where they are able to work with large firms like Clark, be productive, and deliver a high-quality product,” Stith said. The program teaches emerging contractors the technical and business skills necessary to grow their capacity and have the capability to work on large construction projects. The 10-month course curriculum includes sessions on topics like Financial Statements and Accounting, Architectural Blueprint Reading, Contracts, and Project Management. Some courses are taught by Clark staff, while others are taught by outside experts in their respective fields. Participants attend classes one evening per week over a 10-month period.

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Left: Winners of the Strategic Partnership Program Capstone Project Competition celebrate with Clark Construction V.P Wes Stith (back row on the right) and Senior V.P. Bill Magruder (front row on the right)

Below: a picture of the Tom Bradley International Terminal in Los Angeles, Calif. Clark completed the Interior Improvements and Baggage Screening Systems Project in 2010. Clark completes airport, highway, and transit projects in the transportation industry

In addition to the evening courses, participants attend monthly “lunch and learn” sessions during the day at Clark’s office. These sessions give participants the opportunity to network with various community partners in seminars. Additionally, participants complete a final capstone project as a member of a team. The capstone project requires preparing a bid as a general contractor and making a presentation to senior members of Clark. Each team is evaluated on a competitive basis, with the winning team receiving an award. “Most of the firms are wowed by the amount of information they receive during the program,” said Craig Brogan, CPA. Brogan has taught the Financial Statements and Accounting course in Bethesda, Maryland since the first year of the program. Brogan’s course teaches firms to better understand their financial statements; and to better understand what third parties like bankers, bonding agents, and insurance companies are looking for when they review a client’s financials. “Many firms take the information from this program and grow their company, and some have grown a great deal,” Brogan said. “I can’t say enough about the program and I believe Washington, D.C. has better contractors because of this program.” Jennifer Ramos, vice president of operations of Jen Contracting Company, was one of the 24 graduates of the program in June 2017. Ramos said the program has given her the confidence to go after larger contracts in her drywall and framing contracting business. “At the beginning of the program, our company was doing jobs in the $50,000 to $75,000 range, but since completing the program we just won our first contract above $100,000,” Ramos said. She is even more excited about the new relationships with her fellow classmates, especially those on her capstone project team; and believes these relationships will lead to business opportunities in the future. “The best thing I got from the program was the networking I was able to do with my group members and develop a relationship with them. We are looking at opportunities to work with each other after the program,”

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Ramos said. She also believes that bigger opportunities are in the future for her company as she begins to utilize government certification to move in to government opportunities. “The next thing is growth for my company and expanding in to new markets. We have been primarily a private contractor, but now we are looking at federal government opportunities,” she said. Since the program’s beginning at the Clark Construction headquarters in Bethesda, Maryland (just outside of Washington, D.C.), the program has expanded and is offered at several regional offices around the country including Irvine, California; Chicago, Illinois; San Francisco, California; and Seattle, Washington. Although Clark Construction does not promise to do business with any firm completing the program, many firms successfully win contracts on future Clark Construction projects. “We have contracted over $470 million with Strategic Partnership Program graduates... that’s huge,” Stith said. “We have no issues with working with these companies; and we mentor them as well—so it does not stop here after graduation.”

Clark V.P. Mike Wolski, P.E.(l) and V.P. Wes Stith(r) congratulate Jennifer Ramos during graduation ceremonies for the Strategic Partnership Program.

Based on the wide variety of private and government projects completed by Clark Construction, participants in the Strategic Partnership Program come from many different industries ranging from construction supplies, commercial & building construction, civil construction, architecture, and engineering industries. However, the business and technical skills taught during the program are beneficial to all firms that demonstrate the commitment and perseverance necessary to complete the program.

Clark is scheduled to begin the next Strategic Partnership Program in September 2017 with an orientation session led by Dartmouth College Tuck Business School Professor Leonard Greenhalgh; a professional generally regarded as one of the nationsâ&#x20AC;&#x2122; premier thought leaders for minority business development. Admission to the program is free, although participating firms must pay for their own travel expenses. Applications open for the 2018-2019 class on Sept. 30, 2017. For questions or more information, contact Wes Stith at wesley. stith@clarkconstruction.com.

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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.Â 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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Austin is committed to recognizing, embracing, and supporting workplace diversity. As a construction industry leader, we take pride in creating minority economic opportunities.

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Feature

Staying Power

DBEs Standing the Test of Time By Jordan Taylor

n 1983, Congress enacted the first Disadvantaged Business Enterprise (DBE) statutory provision. This provision required the U.S. Department of Transportation to ensure that at least 10 percent of the funds authorized for the highway and transit federal financial assistance programs be expended with DBEs. In 1987, DOT amended the program to create a single goal of 10 percent, encompassing both firms owned by women and minority group members. Contributing writer Jim Blasingame wrote an article for Forbes.com in January 2017, titled, “Top 10 Things That Keep Small Business Owners Up at Night.” At first glance, readers might assume that the obvious answers are related to finances and customers, but that is not the case. The findings seem to validate the opinions of a lot of small business owners—especially as it relates to the never-ending critiques of the federal DBE Program. Blasingame wrote: “So what is the numero uno greatest small business challenge? Drum roll, please: The cost of health care. Number 2 is oppressive government regulations. Number 3 is federal income tax on businesses. Number 4 is uncertain economic conditions. Number 5 is tax

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Farah B. Majidzadeh founded Resource International, a woman-owned DBE firm, 44 years ago in her home in the Central Ohio Area. Majidzadeh has received numerous awards for her successful career in business.

Dan Moncrief, CEO of McDaniel’s Construction, celebrates 32 years in business in 2017. Moncrief began his construction career painting bridges for the Ohio Department of Transportation.

compliance complexity. And six through nine are also all government related. This next point is very instructive: The first operating challenge to break through the top ten is #10 – finding qualified employees. Let’s review: Nine of the top 10 greatest small business challenges are directly associated with government.” [forbes.com]

years in business. Moncrief attributes his longevity in business to building a company that is small enough and nimble enough to adapt quickly to changes within the transportation industry. He said, “I went from painting bridges to building bridges. It’s the ability to change with the industry.” Moncrief said his preference is to be a big fish in a small pond. Over the past several years, McDaniel’s Construction has averaged $36 million a year in revenue.

In January 2017, Dan Moncrief III, chairman and CEO of McDaniel’s Construction Corp. Inc., celebrated 32

Resource International provides engineering services for the Mainline Pavement Evaluation Project for the Ohio Turnpike Commission.

Moncrief was initially introduced to transportation work while working as a civil servant at the fire department and doing part-time painting and residential rehabilitation projects on the side. He said during that time, the Ohio Department of Transportation was aggressively using an outreach and recruitment vehicle—House Bill 84—to address the void of minority contractors in the marketplace. Specifically, the DOT needed minorities to paint bridges on the freeway in Ohio. Moncrief entered into a Joint Venture (JV) partnership with an experienced bridge painting contractor and became the state's only certified minority bridge painter. Within the JV construct, his first three contracts were in excess of $1 million. After successful completion of those projects, Moncrief was introduced to a bridge engineer and began working with a consultant who had more than 40 years of experience in the bridge-building field—and was able to adapt to changing priorities in the transportation industry. Thirty-two years later, McDaniel’s Construction provides site and earthwork, underground utilities, structural concrete, asphalt, concrete paving, and construction management services. The company also specializes in installation of engineered earth retention systems, and complex underground municipal utility construction. Moncrief said that working on public works projects is very straightforward because of the process that’s already in place. His company does very little private work. He noted that public projects have a proposal, plans, and specifications; as long as a contractor meets those needs, the client is pleased. He said that one of his hardest lessons in business was just doing

"I went from painting bridges to building bridges." - Dan Moncrief III the job that was assigned when working on public projects. "I learned to give the client what they ask for-and nothing more. You get penalized for going above and beyond," Moncrief said. Being in business for 32 years has not been without its low points. At one time, Moncrief was involved in a lawsuit and accused of violating a federal DBE subcontracting rule. He said the situation made him fearful, angry and depressed because he felt that he was being singled out and targeted for wrongdoing. He said during that time, business was slow and financing was hard to come by; however, within four years, a resolution was reached and his company had the best three years of performance and revenue in its history. McDaniel’s Construction has grown large enough to surpass the annual sales threshold identified by the Small Business Administration and is now competing with larger companies on a grander scale. As a recent graduate of the DBE Program, Moncrief said he feels like the company is just starting out in this new arena, like they were more than 30 years ago.

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As McDaniel’s Construction enters this new phase, Moncrief will continue to operate the company by following his own advice: • Be competitive in how you pay, because you have to pay for talent—and good talent is hard to find. • Start small and grow. • Don’t set your goals on coming in as a subcontractor; try to do projects where you can be the prime. As the prime, you’re going to be able to control the schedule and get your money first. Wall Street Survivor published an article in May 2015 sharing common traits of companies that have remained in business for more than 100 years. According to the article, long-lived companies tend to share a number of features: • A commitment to learning. Businesses are people, and when people are always learning then they are able to adapt easier. • Loyalty to a manifesto or some well-articulated set of core values that help provide the firm with a sense of identity. • Excellent finances that allow them to act flexibly as opportunities arise. They don’t waste their capital. • They are tolerant of activities that stretch the business, whether it is experimentation or research and development. [blog.wallstreetsurvivor.com] Forty-four years ago, Farah Majidzadeh started her business with just an idea in the basement of her home. She was looking for an opportunity to do something that kept her with her family—four small children at the time. Her husband was a professor at The Ohio State University, conducting research on pavement conditions and surfaces. She was interested in the idea and decided to begin marketing her ability to provide research and development services. Majidzadeh sent out 400 inquiry letters and said that if she got two responses she would start the business. She got two responses. Both contracts were worth $5,000, which she took to the bank as collateral to finance the vehicles and equipment she needed. With the remaining funds, she paid off her bank loan, hired some employees, and took a crash course in basic accounting in order to learn how to run a business. In 1973, Majidzadeh officially launched Resource International Inc. (Rii), a full-service Civil Engineering firm that now specializes in planning, design, construction management, asset management, and information technology services. Rii has seven regional and project offices throughout Ohio, the Midwest and Florida, with previous work in Kuwait and Saudi Arabia. Her four adult children all now live in Ohio and work in the business.

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McDaniel’s Construction crew installs a box culvert for a taxiway project at the John Glenn International Airport in Columbus, Ohio. McDaniel’s has diversified over the years to perform a wide variety of civil and commercial projects. Majidzadeh said that she has experienced many challenges along the way; starting with three strikes against her by not being an engineer (she previously worked as a Registered Nurse); being a woman in a male-dominated industry; and being born outside of the United States. Majidzadeh said that there were times early on when she needed to send a man or someone not Iranian in order to be accepted. When she pursued DBE certification for Rii, there was an immediate pushback that she could not get it because she wasn’t an engineer. However, she was not deterred. “If you believe in something, you go after it," she said. Majidzadeh laughed and said that she started with $9.25. She has since grown Resource International to $17.5 million in revenue, with more than 165 employees. Of those, 80 to 85 of them have worked with her for more than 15 years. She said, “When you treat employees like family, it pays off, and they grow with the firm.” As a matter of practice, Majidzadeh reviews the company’s financial statements on a monthly basis. She said it’s important to pay attention to trends and patterns in business to see what’s working. Although her company has now outgrown the DBE Program parameters and graduated, she hopes that DBE Program administrators will develop a teaming process for DBE graduates to help them transition into the new level of competition, because Rii is here to stay. “Look at your business as a long journey, not just a weekend trip,” Majidzadeh said. “If you want to survive, look at it as a long journey.” Here are some of the lessons she’s learned and practiced along the way on her 44-year-old business journey: • Don’t jump into a project just because it sounds good. Make sure you’ve seen all sides of it. • Don’t partner with someone unless you check their reputation and background. • Treat all clients the same and treat them well; repeat clients are the best clients. • Performance matters, so focus on providing quality products and services; bigger is not necessarily better.

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.

POTENTIAL CONTRACT OPPORTUNITIES*

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. ** Additional pre-qualifications may be required for these services.

Vendors and contractors interested in doing business with Ferrovial Agroman or on these projects, please register your firm with us at:

www.fauscorp.diversitycompliance.com/ FrontEnd/StartRegistry.asp For additional questions and details, contact us at:

DBEinfo@ferrovial.com

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Technique Concrete inducted into the NAMC Hall of Fame By Sarah Magargee

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Rock Solid

Billy Freeman Jr., President/CEO of Technique Concrete Construction (left) was inducted into the National Association of Minority Contractors Hall of Fame in June 2017. Freeman is pictured with fellow inductees Dr. Louis Lynn, CEO of ENVIRO AgScience Inc. (middle); and Nathaniel Spells Sr., CEO of Construction Dynamics Inc. (right)

illy Freeman Jr.’s commitment to excellence has helped him overcome challenges associated with being a minority-owned business and build a rock solid company that is tackling some of the largest concrete projects in the Metro Atlanta area. Freeman’s company, Technique Concrete Construction Company LLC, is a contractor providing complete concrete solutions with a growing niche in airport runway construction.

Freeman has worked in the concrete industry his entire life, following in the footsteps of his father, Billy Freeman Sr. “When I was younger I wanted to do whatever my dad was doing," Freeman said. "We worked together every day from when I was a kid until the day he died. We went into business together in 2010 when the economy was terrible. People told me it was a bad idea, but if Pop said it was time to go, it was time to go!”

In June, Freeman was inducted into the National Association of Minority Contractors Hall of Fame at the 48th Annual National Conference in Columbia, S.C. NAMC recognized Freeman for his tireless effort and determination maintaining the NAMC standard of excellence. Also inducted into the Hall of Fame were Dr. Louis Lynn, CEO of ENVIRO AgScience Inc.; and Nathaniel Spells Sr., CEO of Construction Dynamics Inc.

Technique Concrete started small; with concrete installation projects that made the company very little money, but put them in front of Atlanta’s largest contractors. Freeman and his crew worked hard, quickly establishing a name for themselves. Freeman said: “I am playing a home game in Atlanta, having lived and worked here all my life. We have worked for all the big companies and proven that we do excellent work and can be trusted. Because of that, they respect us; and we are now their go-to contractor.”

Billy Freeman Jr. accepts congratulations from his business mentor and fellow NAMC Hall of Fame member Arthur Queen, CEO of EGM Services, Inc. Today, Technique Concrete offers complete, turnkey concrete packages and has completed more than $113 million in construction projects. Freeman’s company has an ongoing multimillion-dollar contract with the Hartsfield Jackson Atlanta International Airport doing runway construction and an upcoming project with the Augusta Regional Airport. Technique Concrete operates a concrete batch plant that allows the company to prepare the right type of concrete in high volume and on a short timeline, giving the company a major edge over competitors. Recently, Technique Concrete won its largest job in Atlanta: providing concrete services for the Atlanta Water Supply Program, a massive project that will create a five-mile long, 12-foot wide tunnel connecting the Chattahoochee River and the Hemphill Water Treatment Plant to the former Bellwood Quarry.

Secrets to Success Technique Concrete started with a handful of Freeman’s close friends, all foremen who had been working elsewhere. This “super crew” of 17 talented men went into the field and completed jobs with the precision of pros, quickly establishing a reputation for excellence. As the company grew, the 17 founding employees fell into positions of leadership and the crew expanded. Today, Technique Concrete has more than 120 employees, many of whom are the sons and nephews of the first employees. “I can train muscle, but I need people I can trust,” Freeman said. “Those 17 men were people I could trust and helped us succeed.” Of the original 17 crew members, 16 are still employed by Technique.

Billy Freeman Jr. (r) pictured with his father and business partner Billy Freeman Sr. (deceased). Freeman and his father started Technique Concrete Construction in 2010 during the economic recession.

Freeman puts his employees above everything else, saying that “you don’t make money pouring concrete; you make money taking care of your people.” Construction is a rough-andtumble job that comes with unique challenges. By treating his employees fairly, paying a good wage, and taking the time to get his hands dirty on the job, Freeman has built trust and a sense of family that is often lacking from many heavy labor jobs. Taking care of an employee includes more than just a regular paycheck. Freeman is always looking for people within Technique Concrete with the potential to rise to positions of leadership. DeMario Smith came to Technique Concrete as a teenager. When Smith went to college on scholarship, Freeman supported him, helping as he could and encouraging the young man to finish his degree. After graduating, Freeman sent Smith back to school for a master's degree in accounting. “He wanted to come back and work for me after his bachelors, but I sent him back,” Freeman laughed. “When he finished that I said, ‘OK, now you can come and work with me.’ Today he is my main man. I could trust DeMario, so I did everything I could to support him.” Freeman applies the same standards to how he treats his subcontractors, many of whom are talented workers but poor businessmen. “Technique Concrete was blessed and fell into a favorable position,” he said. “Not everyone has that. A lot of the smaller guys don’t have the finances we have, so I looked for ways to help.” Freeman found the best way to help smaller contractors was to pay them weekly instead of monthly; a move that “drives his accounting team crazy” but establishes rapport and loyalty with subcontractors.

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Technique Concrete crew works on a construction project in the Metro Atlanta area.

Growing up, Freeman watched his father mentor countless people and businesses. “Back then, if you were in concrete, you were trained by my father,” Freeman said. “I used to say, ‘Pop, you can’t take care of everyone.’ It turns out that two years after he passed I was the same guy he was. I feel this is how I keep my blessings coming.” Today Freeman mentors many of his subcontractors, helping them set prices, manage operating expenses, and build a cash reserve. Once these subcontractors are financially stable, they can take on more work from Technique Concrete while making more money for themselves. It is a win-win situation.

Overcoming Challenges One year after going into business, Freeman’s father and business partner passed away. The experience of losing his father made all other challenges pale in comparison. “I don’t think anything could be worse than that,” Freeman said. “Since then everything has seemed like smooth sailing.” Two weeks after his father died, Freeman met Arthur Queen, CEO of EGM Services Inc. and treasurer of the Atlanta chapter of NAMC. Queen and Freeman became fast friends. “Mr. Queen taught me about the many facets of the business. He recommended me for some of my first jobs, including the first small job at the airport,” Freeman said. “He taught me how to deal with tough contractors and racism, and how you can overcome challenges with performance.” Queen told Freeman that as a minority you are often judged based on a contractor's prior experience with people who look like you. It is your job, he said, to give them the best experience and prove yourself better than the last guy.

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"...That, I said to Art, needs to be our motto.

Excellence is the standard, not the goal." Billy Freeman Jr., CEO, Technique COncrete

“When I first started Technique, my guys would get upset at how we were treated, but I had to bite my tongue and dig in,” Freeman said. “I have 100 employees and their families counting on me to keep the paychecks coming. I have worked with some of the toughest people around, but once they get to know me and see the quality of our work, they come around. That’s how Technique has come this far.” The future is bright for Technique Concrete with numerous high-profile, high-dollar contracts in the works, and the promise of more to come. In the meantime, Freeman will continue to work to maintain his commitment to excellence in both Technique’s projects and the Atlanta construction community. “I found a photo of the first black mayor of Atlanta, Maynard Jackson, with Art awhile back. At the bottom of the picture, it said ‘Excellence is the standard, not the goal.’ That, I said to Art, needs to be our motto. Excellence is the standard, not the goal.’”

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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s p o t l i g h t p r o g r a m d b e

Leintu Appointment Revitalizes

MWAA Supplier Diversity Program By American DBE Staff

Wande Diakite Leintu joined MWAA in August 2016 in the newly created position of Deputy Vice President for Supplier Diversity to lead the Department of Supplier Diversity (DSD).

he Metropolitan Washington Airports Authority (MWAA) manages the operations of Ronald Reagan Washington National Airport and Washington Dulles International Airportâ&#x20AC;&#x201D;two of the busiest airports in the U.S. MWAA also manages the Dulles Toll Road and the Dulles Corridor Metrorail Silver Line construction project that will extend public transit rail service to Dulles International Airport and parts of Loudoun County. As such, MWAA is a major economic driver and a primary source of business opportunities in the Washington Metropolitan Area. Over the past year, MWAA leadership has taken steps to ensure minorityand women-owned companies have greater opportunities to participate in capital development, procurement, and concessions opportunities at the two airports by revitalizing its Disadvantaged Business Enterprise (DBE), Airport Concession Disadvantaged Business Enterprise (ACDBE), and Local Disadvantaged Business Enterprise (LDBE) programs.

An artist’s rendering of a transit station for the Dulles Corridor Metrorail, a 23-mile extension of Washington’s existing Metrorail System. When both phases of the project are complete, the line will provide a one-seat, no transfer ride from Dulles to downtown Washington, creating long-sought connectivity between the burgeoning Dulles corridor and the nation’s capital. (Courtesy: MWAA)

In August 2016, MWAA hired Wande Diakite Leintu for the newly created position of Deputy Vice President for Supplier Diversity to lead the Department of Supplier Diversity (DSD) and drive a renewed commitment to providing opportunity for local and disadvantaged firms seeking to do business with MWAA. Leintu hit the ground running and has led the implementation of several initiatives to improve the agency’s effectiveness in administering its programs to develop local diverse firms. One of the first initiatives developed by DSD was a robust outreach strategy designed to increase awareness of local and small diverse firms surrounding business opportunities with MWAA. A major component of the outreach strategy is a Quarterly Procurement Forecast, designed to analyze and share upcoming contracting opportunities with potential diverse suppliers. DSD developed a comprehensive strategy to maximize outreach, including assigning detailed NAICS (North American Industry Classification System) Codes to each MWAA procurement request and matching those codes with diverse vendors in MWAA’s new supplier database—and then notifying companies when opportunities matching their NAICS code became available. DSD has improved its outreach efforts by hosting periodic outreach meetings that are tailored to specific business opportunities and industries. These meetings are attended by MWAA purchasing agents and buyers specific to the contracting opportunity, allowing for targeted networking and detailed information sharing. Leintu said, “We have implemented strategic outreach tools to make sure firms know the opportunities related to their area of business so they are aware of the opportunities and have the time they need to respond.”

Another DSD initiative to improve opportunities was the launch of a Supplier Diversity Management System (B2GNow internet platform) in November 2016. The system uses information technology to automate critical processes in the administration of MWAA supplier diversity efforts including small business certification, contract compliance, goal setting, and outreach. Leintu is pleased with how it is improving the services her department provides. “The system has automated our DBE, ACDBE and LDBE certification process, so now firms can get certified in less than 30 days. Firms can also monitor the status of their applications throughout the process, so they know where they stand at all times. It used to take much longer,” Leintu said. Further, the Supplier Diversity Management system significantly improves the project goal setting process by indexing each company’s certification information—allowing automated queries to determine the firm’s exact location, specific capabilities identified by NAICS code, and relevant business certifications. These capabilities let DSD staff quickly set targeted goals on procurement opportunities, knowing they have accurate information on the availability of ready, willing and able firms in the market. Next, the system allows DSD staff to contact firms by email when a procurement opportunity is available for bid. “The system gives us a greater level of specificity and has allowed us to enhance our outreach efforts by targeting firms based on their true capabilities,” according to Leintu.

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Another benefit of the system is the enhancement of external contract compliance activities. Prime and subcontractor information on each awarded contract is added to the system, including the award amount and type of work each contractor is expected to perform to meet contract goals. The system requires prime contractors to verify their incremental payments to subcontractors and requires subcontractors to confirm receipt of payment for work completed on the contract. This capability nearly eliminates the need for subcontractors to report prime contractors for slow payments or not being utilized according to their subcontracted work. “It has been amazing,” Leintu said. “We are now able to better ensure that DBEs and LDBEs get their fair share of work and get paid in a timely manner.” Implementation of the new system has positioned DSD to maximize opportunities on several major projects under development by MWAA. The $2.7 billion Dulles Corridor Metrorail–Phase 2 project is under construction and is scheduled for substantial completion in 2019. DSD is working closely with Capital Rail Constructors (a joint venture between Clark Construction Group and Kiewit Infrastructure South) to promote opportunities on the project. The Dulles Metrorail project is one of the largest infrastructure projects in the United States and will ultimately extend passenger rail service from Downtown Washington, D.C., to Dulles International Airport and points beyond in Loudoun County, Virginia—a distance of over 23 miles. “We have monthly compliance meetings with the prime contractor to review any change orders and monitor their outreach to DBE firms interested in working on the project,” Leintu said. “We are also conducting site visits to ensure subcontractors are performing a commercially useful function.” DSD is gearing up for a major capital improvement program at Reagan National Airport called Project Journey.

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An artist’s rendering of a recently completed Terminal A Shopping and Dining Improvements at the Ronald Reagan Washington National Airport. (Courtesy: MWAA) MWAA selected Turner Construction Company as the Construction Manager of the not-to-exceed $500 million project, which consists of new construction, along with renovation of existing facilities over a seven-year period from 2016 to 2023. MWAA has set a 25 percent requirement for LDBE participation on the program. Leintu said, “We are working closely with Turner’s Diversity and Outreach team by holding monthly and quarterly meetings to monitor their success on LDBE participation.” DSD is encouraging any large prime contractors that win packages on the program to host outreach meetings and create matchmaking opportunities to recruit qualified companies to work on contracts. One of the major components of Project Journey is a new North Commuter Concourse. This component includes contracts for several scopes of work, including temporary pavement/ utilities and parking lot improvement, demolition of existing hangars, new pavement and utilities, and the construction of a new 14-gate concourse that includes an area for aircraft to park overnight. The final package of the new North Commuter Concourse is expected to bid during the fall of 2017.

DSD is also finding ways to include nontraditional contracting opportunities in its supplier diversity efforts. One of those efforts includes developing strategies to include small and minorityowned financial, legal, and securities firms in MWAA’s airport revenue bond financing activities. MWAA has included language in its contracts with major financial institutions like Wells Fargo Bank and Bank of America to encourage participation by local minority-owned financial institutions in raising capital through bond sales and in other financial services such as traditional banking. “We are working to build a pool of qualified small professional firms to assist us with bond financing services and legal services,” Leintu said. Over the last year, MWAA has experienced a renewed sense of engagement from the local DBE community and from its large contractors. “Our spend with small and disadvantaged business has increased and our number of awards to LDBE and DBE firms has increased as well,” Leintu said. “We are strengthening the community’s faith in MWAA’s commitment to do business with minority- and women-owned businesses. In addition, the business community is seeing MWAA’s strong commitment to supplier diversity and our enhanced efforts to create equal opportunity and help ensure a level playing field.”

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Aviation

This image is a rendering of an aerial view of LaGuardia Airport's new $4 billion Terminal B P3 project. LaGuardia Gateway Partners is the private developer and its contractor is Skanska-Walsh Joint Venture.

Airport P3s Gaining Momentum as an

Infrastructure Financing Strategy By American DBE Staff

ublic Private Partnerships (P3s) are quickly becoming a trend in the financing of infrastructure improvements in the U.S. P3s have been widely used in European countries for major projects, but are now gaining momentum in America. In fact, some experts believe the U.S. is poised to become the largest market for P3 projects in the world, largely due to the country’s rapidly aging infrastructure, growing population, and decreasing tax revenues to finance improvement projects. Two major U.S. airports—New York LaGuardia Airport (LGA) and Denver International Airport (DIA)—have embraced this trend and are in the midst of large P3 airport development projects. LaGuardia’s $4 billion Central Terminal B Project and DIA’s $1.8 billion Great Hall Project are two of the largest U.S. airport projects in history, and may signal a change in how other airports pursue improvement projects going forward.

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Airport P3 projects require a private investor to finance, design, construct, operate, and maintain a new or renovated facility for an extended period through a lease agreement. In the case of the LGA and DIA projects, the lease agreements will last for more than 30 years. During the lease period, the developer will construct the facility and then manage the operation of the facility, including subleasing space to concession operators. The developer also will maintain the facility and complete any repairs or renovations necessary to keep the service level high for travelers and guests using the airport. Revenues from the airport are split between the airport and the developer; however, the airport must also pay off the debt on the facility with its revenues.

Airport executives discussed current industry trends like P3s at the Airport Minority Advisory Committee 2017 Airport Business Diversity Conference. Pictured from left-right; Row 1:Ricky Smith, CEO BWI Thurgood Marshall Airport; Scott Brockman, President/CEO, Memphis International Airport; Bryant L Francis, Director of Aviation, Oakland International Airport. Row 2: Mario Diaz, Director of Aviation, Houston Airport System; Krystal Brumfield, President/CEO, Airport Minority Advisory Council; Lamar Willis, Principal, Nathan Bacford Management

Some Disadvantaged Business Enterprises are concerned that the P3 project delivery method will decrease opportunities for diverse firms, fearing that private developers may demonstrate a lesser commitment to diversity in contracting opportunities. However, early signs have shown that public agencies owning an airport ultimately have control of diversity and inclusion requirements on a P3 project, and exercise their control by placing requirements for diverse business participation in the Request for Proposal, vendor selection, and contracting phase of the project. As a result, P3s can create greater opportunities for diverse firms to participate in airport development projects. One reason is because P3s allow projects to occur that might not have moved forward without a private developer to take on the project. Another reason is that public owners have the ability to place incentives in the selection process that favor developers presenting the best diversity plan and commitment to the participation

of diverse firms. “Municipal owners can be creative in having a plan to include DBEs,” said Miguel Southwell, President/CEO of Brakkam Aviation Management, an airport management consulting firm based in Atlanta, Ga. “They can include incentives in the RFP process to award additional points to the developer with the best strategy to include DBEs at the ownership level and in the development of the project. Once the commitments are made in the proposal, they would become a part of the contract,” he said. The DIA Great Hall Project is an example of the types of opportunities available to diverse firms on a P3 project. The winning developer, Great Hall Partners, includes a minority-owned investment management company named JLC; a business founded by Chicago’s Loop Capital and Magic Johnson Enterprises, two AfricanAmerican-owned investment firms. JLC is focused on making investments in the transportation, energy, utilities, communications, and social infrastructure sectors in the U.S.

Aviation expert Miguel Southwell, President/CEO, Brakkam Aviation Management, believes P3 projects should create opportunities for DBE firms, provided municipal owners create incentives for developers during the selection process.

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Artist rendering of the new DIA Great Hall showing increase space, new concessions and a modern decor. But not all airport development projects are good candidates for a P3 process. Southwell said there are two main criteria that airports should use to consider how to finance a major airport improvement. The first criterion is the agency’s capacity for debt, and the second criterion is the cost of money. “Financing a project using a P3 is more expensive than issuing general airport revenue bonds,” Southwell said. “An airport revenue bond will cost 5 to 5.5 percent, while private investors are looking for a greater return on investment. This could be anywhere from 10 to 18 percent. So if the airport can service the debt payments on a bond, it’s less expensive.” Southwell sees the most potential for P3s in airport development for improvements that are separate from the airport’s core operations. These types of projects may include on-airport hotels, retail shopping plazas, office space, warehouse and logistics facilities; none of which may be part of an airport’s master plan to accommodate its core operations, but for which the airport has vacant land. Southwell said: “Airports have to use their capital for the core operations of maintaining passenger and cargo flights. However, other projects that improve an airport’s customer service and enhance its revenues are good candidates for a P3 project.” DBEs seeking opportunities on airport P3 projects should recognize the differences between this contracting method and traditional design/build or design-bid-build procurement methods. P3s have a significantly longer lead time from the announcement of a project until work becomes available, and the contractor may not make commitments to subcontractors until the work is ready to be done. In traditional contracting methods, a prime contractor may have to submit a list of subcontractors for the project along with its bid. However, this will not be the case on a P3 project. The developer will commit to a certain level of participation by diverse firms, but will provide the details of the firms used on the project later into the contract.

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Another difference is the number of management layers between the DBE firm and the project owner. In a traditional design/build or design-bid-build procurement, the prime contractor works for the project owner. However, in a P3 arrangement, the contractor works for the developer who has a partnership agreement with the owner. This arrangement may change the flow of information and the communications during the project. Despite these differences, DBEs are poised to see substantial opportunities on the two P3 projects at LGA and DIA. LaGuardia Gateway Partners and its contractor, SkanskaWalsh Joint Venture, report that as of July 10, 2017, it has awarded 246 contracts at a value of $371 million to M/ WBE firms. Additionally, New York Governor Mario Cuomo has established a goal of 30 percent for M/WBE firms on procurements made by the State of New York, which includes the LGA project. The City of Denver, which owns DIA, is nearing financial close of its P3 agreement with the Great Hall Partners development team. The Great Hall Partners’ contractor, Ferrovial-Saunders Joint venture, has already started outreach efforts to diverse firms by hosting outreach information sessions in the spring and fall of 2016. Businesses were invited to meet key team members, learn more about the FerrovialSaunders team, and complete vendor registration forms. “I don’t know that we have enough history to know for sure how P3s will affect the DBE community, but I don’t think it will have a negative impact,” Southwell said. “As long as municipal owners make diversity and inclusion an imperative of any developer, you should have participation.”

U.S. Department of Transportation Small Business Transportation Resource Center

South Atlantic Region North Carolina • Kentucky • Virginia • West Virginia 114 W. Parrish Street | Durham, NC 27701 | www.ncimed.org For additional information regarding program services and support contact: Kaye Gantt, Regional Director at (919) 956-2341 | F: (919) 688-7668 | kgantt@ncimed.org

Helping Small Business Move Forward

How We Help • Bonding Education Program • Women & Girls in Transportation Initiative • DBE Certifications • Procurement Assistance • Short Term Lending Program • Counseling and Technical Assistance

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transit

Metro Board Awards

Largest Contract Ever to DBE Joint Venture By American DBE Staff

he Los Angeles County Metropolitan Transportation Authority (Metro) recently awarded a $90.8 million contract to Kal Krishnan Consulting Services/Triunity Engineering & Management Joint Venture (KKCS/Triunity JV) for program management support services. The joint venture is a partnership between two certified Disadvantaged Business Enterprises (DBE) and is the largest contract Metro has ever awarded to a DBE firm. The firms will supply skilled consultants who will serve as an extension of Metro staff, providing areas of expertise where needed to execute the projects and programs in Measure M, a sales tax measure approved by Los Angeles County voters in 2016. The contract is a cost-effective way for Metro to access qualified subject matter experts to address specific needs of the agency. Through this contract Metro will be able to extend its staff by bringing on a wide range of expertise such as program and project management expertise, engineers, cost estimators, construction inspectors, and other personnel to execute projects for the agency. “We see this contract as another step

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in furthering the implementation of Measure M,” said Metro Board Chair John Fasana. “It is also a victory for Metro, which will benefit from the quality and variety of the services offered by these two firms and their teams.” In the past, Metro has typically awarded contracts of this size to large companies, often referred to as “traditional primes.” The KKCS/Triunity contract is an example of two small businesses working together to fulfill a larger contract through a joint venture. Through its new push for innovation, Metro actively encourages DBE firms to use traditional primes as sub-contractors to help mentor and fulfill large contracts. In this case, CH2M and Jacobs, two traditional prime firms, are subcontracting to the DBE joint venture. “This move to allow DBE firms to prime projects and traditional primes to sub to them is a big step for us and a great success story of how small firms can elevate themselves to be primes on major contracts,” said Metro CEO Phillip A. Washington. “We also hope this contract will serve as a business

Metro Expo Line Train departing from L.A. Cienega/Jefferson Station to downtown L.A. (Attribution: Metro96)

Dev Krishnan took over as President of KKCS in 2012, succeeding his father, Kal Krishnan. Several months later, in January 2013, Dev Krishnan assumed full ownership of the company.

model for other government agencies striving to create a stronger and more equitable marketplace.” The KKCS/Triunity JV contract allows the consultant to scale support efforts up or down, depending on Metro’s transit, highway, regional rail and other capital improvement needs. The contract is for five years (approximately $63.3 million), plus a two-year option for $27.5 million. It covers services as varied as project management, project control and information support services. Both KKCS and Triunity have worked with Metro in the past, as well as with other transit agencies across the United States. KKCS was founded in 1987 and currently has regional offices in Oakland, Los Angeles, San Diego, Seattle, Anaheim, New York, and Boston. In addition to past work with Metro, their client list includes: San Francisco Bay Area Rapid Transit District (BART), California High-Speed Rail Authority (CAHSRA), Los Angeles World Airports (LAWA), and Denver Regional Transportation District (RTD). KKCS has 87 employees based in multiple regional offices. The family-run company was founded by Kal Krishnan. His son, Dev Krishnan, is the current CEO. “My father started the firm in 1987,” Dev Krishnan said. “I have worked for the company for about 15 years and took over as president five years ago. Based on the firm’s many years of experience, including in the transit industry, we are well positioned to lead our joint venture team on this important Metro procurement.”

// SUMMER 2017

Jonnie L. Thomas P.E., CEO (l) and Marvin Thomas, president of Triunity Engineering and Management founded the company in 2003.

Krishnan said: “As an established DBE, this procurement represents an opportunity to continue to grow the firm. Our team includes other minority and women-owned firms, as well as CH2M who is a subcontractor and mentor to some of the smaller firms. We are proud to have this opportunity to continue working with Metro and help deliver projects that benefit the people of the county of Los Angeles.” Triunity Engineering & Management Inc., also a familyrun business, has offices in Los Angeles, Denver, Seattle, Boston, and New York. The company was formed in 2003. Triunity’s 50-plus professionals specialize in program/project management, construction management, and rail systems engineering. Triunity’s client list also includes transportation agencies from across the country, including: Minneapolis Metro Transit, Central Puget Sound Regional Transit Authority (Sound Transit), Denver International Airport, and the Massachusetts Bay Transportation Authority (MBTA). Jonnie L. Thomas is co-founder and CEO of Triunity, along with his brother Marvin L. Thomas, who is president. Their parents were tenant farmers in Mississippi, before moving to Kansas and raising a family of seven children. The brothers, both U.S. Air Force veterans, attended Kansas State University and earned engineering degrees. “Our dad had a ninth grade education and our mom a fifth grade,” Jonnie Thomas said. “But Dad really prized education. When we were growing up, he taught us about the benefits of hard work. And that’s what we prize.” “Our firm has a long history of solidly delivering on our contracts and this seemed like a natural fit. We are humbled and ecstatic about this opportunity and confident we can get the job done,” Jonnie Thomas said.

// SUMMER 2017

KKCS/Triunity Interview Team that gave the winning proposal for Metro’s largest contract ever to a minorityowned business venture.

Metro launched the DBE Program in the early 1990s. The goal of the program is to provide business development and contracting opportunities for small, Historically Underutilized Businesses on federally-assisted projects. In 2016, Metro increased its overall DBE goal from 18 percent to 26 percent. The DBE Program is overseen by Metro’s Diversity and Economic Opportunity Department, which also oversees Metro’s small business and corresponding certification programs.

Metro is committed to small business success. To date, Metro has spent over $1 billion with SBE/DBEs. Learn how you can benefit at metro.net/connect.

// SUMMER 2017

civil/highway

Lane Construction Builds DBE Program on

Foundation of Integrity By American DBE Staff

I-95 steel work on the 95 Express Lanes. Lane Construction partnered with Fluor and Transurban to construct the 95 Express Lanes in a public-private partnership with the Virginia Department of Transportation. The project put more than 500 companies to work and paid more than $200 million to disadvantaged, small, women and minority-owned business enterprises.

he famous author, salesman, and professional speaker Zig Ziglar said, “Honesty and integrity are by far the most important assets of an entrepreneur.” Lane Construction (Lane) the same can be said for a successful company. Lane has conducted has conducted business based on a philosophy of honesty and integrity for over 125 years, starting when John S. Lane opened his business in 1890—making Lane one of the oldest construction companies in America. Mr. Lane started Lane as a stone-crushing operation for railroads and streets in the state of Connecticut. Since those humble beginnings, Lane Construction has grown to become one of the largest highway contractors in the United States, posting revenues of more than $1.4 billion in 2016, ranking the company as #52 on the Engineering News Record (ENR) list of largest contractors in the U.S.

// SUMMER 2017

Lane Construction sponsored the U.S. Department of Transportation Bonding Education Program to prepare DBEs for opportunities on the I-85 Widening and Improvement project in 2016 near Charlotte, NC.

Lane is a contractor on some of the largest and most high-profile highway projects in America, including the current $2.3 billion I-4 Ultimate project in Orlando, Florida as a joint venture partner with Skanska USA Civil and Granite Construction. Lane is also a member of a joint venture with Fluor and Traylor Brothers projected to build the Purple Line Extension, a publicprivate partnership (P3) project in Maryland, when final approvals for the project are completed. In addition, Lane is a joint venture partner with Archer Western and Granite Construction on the nearly $1 billion IH-35E managed lanes project in Dallas, Texas. The IH35E is also a P3 in combination with the Texas Department of Transportation. Lane is a wholly-owned subsidiary of Italy-based Salini Impregilo, a worldwide leader in infrastructure construction with operations throughout Europe and stretching around the globe. Lane operates twelve domestic offices covering most of the East Coast, along with Illinois, Georgia, Texas, and Nevada; specializing in infrastructure projects primarily including roads, bridges, tunnels, rail, metro and mass transit construction, and power and energy projects. Lane also owns and operates over 45 hot mix asphalt facilities along the Eastern seaboard and as far west as Texas, in addition to several mining operations including quarries in the Northeast. Lane maintains three international offices that perform infrastructure projects largely in the Middle East. As a leading highway and transportation contractor in the U.S., Lane partners with hundreds of Disadvantaged Business Enterprises (DBEs) each year to complete infrastructure projects for transportation agencies receiving funding from the U.S. Department of Transportation. Lane DBE Manager Kai Earle-Marion leads the company’s program efforts and said Lane maintains its core values of Integrity and Honesty when administering the DBE Program.

The experience of working constantly with DBE firms gives Lane’s project managers and procurement staff valuable insight on the skills and characteristics of DBEs that successfully work with the company on major projects. Lane Senior Vice President & Assistant Secretary David Rankin is a part of the company’s executive leadership and has worked at Lane for more than 27 years. He currently provides executive oversight for bid-build and design-build projects. Rankin recently gave a presentation at the 48th annual conference of the National Association of Minority Contractors in Columbia, South Carolina and shared his thoughts on the best strategies for DBEs to thrive in the transportation contracting industry. He identified six characteristics of DBE firms that succeed in business.

Relationship Building Rankin recommended that DBEs interested in working with large contractors like Lane make time to sit down with project staff well in advance of the bid date. This meeting should be used by the DBE firm to introduce the firm and share the company’s experience and capabilities. This time can also be used to find out as much information as possible about a project opportunity. “Most large contractors want you to come and sit down with them to find out things like the schedule, their expectations, and how they plan to complete the project,” Rankin said. “The last thing they want is for a firm to turn in a wrong bid that may be cheaper, but doesn't meet the need. That doesn’t help them or the contractor. We don’t want anybody to get hurt.”

Development of Key Personnel Rankin encouraged DBEs to “take good care of your good people,” by providing development and training opportunities for the professional growth of key staff members. He believes that having a quality workforce is extremely important to growing a company and performing

David Rankin (left) and Kai Earle (right) of Lane Construction accept recognition from the National Association of Minority Contractors for their efforts to promote diversity. exemplary work for clients. Rankin said: “Good key personnel are the hottest commodity out there right now. Everybody is looking for good people, so you have to do the best you can to take care of the ones you have.”

Managing Risk “One of the quickest ways for any construction firm to go out of business is to take on more work than they can handle,” Rankin said. He is a strong proponent of controlled growth, whereby a business grows only as resources become available to support the growth. “You just can’t go out and hire more people and maintain quality,” Rankin said. “And you don’t want to bite off more than you can chew.”

Supply Chain Management Rankin believes supply chain management is critical for success in the construction industry. He noted that large projects require constant communication and coordination between all the parties involved in the project. “You must be in constant communication with the prime contractor, and all of your suppliers and subcontractors to share information // SUMMER 2017

about the project, and make sure they are kept up-to-date with what your needs are,” he said.

Tracking and Managing Overhead This area involves monitoring and controlling overhead costs such as administrative expenses, administrative staff, rrent, insurance, advertising and other expenses not directly related to a project. Rankin said, “You need enough overhead to manage what you have, but not so much that it drags you down and makes your company uncompetitive.”

Considering New Industries and Services Rankin encourages small companies to meet with large contractors to ask about services they need, and then be willing to move into new services to meet the need. He also advises firms to

look for innovative ways to serve clients. “We are always looking for innovative and collaborative ways to work with small companies,” Rankin said. “For instance, we have partnered with firms to move into erecting steel and concrete girders, and supplying fuel. These were new industries for some of our subcontractors.” Lane continues to expand its efforts to develop DBE firms who can partner with the company on major construction projects. Earle-Marion has led has led Lane’s sponsorship of three sessions of the U.S. Department of Transportation Bonding Education Program (BEP). The program provides small firms with training and assistance to attain surety bonding, or increase their current level of bonding. Lane sponsored BEP courses in connection with major projects in Charlotte, North Carolina, Northern Virginia, and Orlando, Florida.

The newest initiative for Lane is the development of a mentor/protégé program in concurrence with U.S. Small Business Administration and U.S. Department of Defense guidelines. The company is in the process of vetting candidates to launch the program and begin sharing their knowledge and experience with emerging contractors. Rankin said: “We recognize our responsibility as a large contractor to have relationships with small businesses that will help them grow and teach them what we know; and give them the benefits of the stumbles that we have had along the way. So we think this is an important initiative.”

BUSINESS DEVELOPMENT - OPINION

Cracks in the ACDBE Bridge By Kevin Holt, Chief Financial Officer, H&H Hospitality

n 1980, when minority-owned businesses were awarded less than 1 percent of government contracts, the Airport Concession Disadvantaged Business Enterprises (ACDBE) Program was established to extend opportunities to these historically, socially and economically disadvantaged businesses. Since that time, the program has served as an economic bridge, resulting in over $500 billion in government contracts creating significant wealth for many business owners that historically never had access to such opportunity. More specifically, many operators of ACDBE-designated companies reached these unprecedented levels of success by offering goods and services within one of the country’s most coveted areas of commercial real estate–U.S. airports. But, as the program has aged, many current and potential ACDBE participants are finding that the program has weakened. It’s no longer as effective providing broad opportunities as it once was. As a 2014 Office of Inspector General (OIG) report acknowledged, the existence of “significant barriers for new DBE/ACDBE entrants… such as limited opportunities, infrequent turnover of existing DBE/ACDBE firms, lack of access to capital, high entry costs, and inexperience with the airport bidding process” has shown that

this bridge of creating historical wealth opportunities may have some cracks. We should keep in mind that the ACDBE bridge of opportunity—that many of us are now standing on—wasn't built by any one individual. There’s not a person, family or business who owns the rights, the franchise license or the exclusivity agreements qualifying as the only business able to prosper from this bridge. It is hypocrisy for us, the entire ACDBE community that has benefited from the program to make economic gains, to not genuinely support and assist others looking to gain in the same manner. We all must work together to ease the path of certification, lower the hurdles to participate and operate successfully, and lastly create a clear path to graduate from the ACDBE program. The process alone for becoming a new ACDBE-certified company is complicated at best. Once certified, the exorbitant costs to bid combined with the difficulties of securing the largely uncollateralized financing has proven to be a major roadblock for most small business owners; and therefore limits access to new entrants. According to U.S. Department of Transportation OIG reports, the program pool growth rate is less than 3 percent annually, and the annual graduation rate is closer

to 0 percent. Consequently, the vast majority of new opportunities are being awarded to only a select few historically successful operators and their affiliated and/or successor companies. Although this is partially due to industry traits, it also seems to be in the interest of beneficiaries. There’s no denying that the program has been successful in creating significant wealth opportunities. Unfortunately, the majority of opportunities have served a small number of operators. Let’s face it, there has been no genuine effort from within the industry to encourage firms to ever graduate from the program to allow opportunities to flow down to newer operators. It is also widely known that any seasoned attorney or accountant can easily navigate the loopholes to ensure that their firm indefinitely avoids graduation. As an industry, we’ve prioritized and fought to keep legacy operators in the program as long as possible, at the peril of new and potential participants. When the industry’s inside adage for survival is “Buy a larger house,” using the primary residence exclusion to reduce one’s personal net worth below $1.32 million, we should all recognize we have a problem.

// SUMMER 2017

Between the years of 2011 and 2016 alone,

$245 million

has been recouped as the result of fraud recovery, restitution, or forfeiture... The widespread desire to falsely use the DBE Program has attracted a lot of attention from the Office of Inspector General’s office, citing that 35 percent of their caseload within the Department of Transportation is related to investigating DBE validity. Between the years of 2011 and 2016 alone, $245 million has been recouped as the result of fraud recovery, restitution or forfeiture within the DBE Program. While the existing federal regulations have provided the legal framework for administering the program, long-standing DBE supporter, Congresswoman Gwen Moore has recently introduced a bill HR 2139, which would significantly enhance the tracking, training and oversight of the ACDBE program. If passed, these new tools provide much-needed support ensuring the program’s effectiveness toward its goal of increased economic inclusion of DBEs. While individual business owners might prefer to avoid competition, collectively it is this increased competition that will propel the ACDBE industry to continue innovating as well as adding true value to the airports, to our prime partners,

and ultimately to the traveler. Dallas Love Field is a great example of new competition leading to an awardwinning concessions program. Critics often hail the ACDBE Program as a white-collar handout; and without legitimate competition, the program starts to fit the stereotype. Fortunately, we are not beyond the point of no return. The Airport Minority Advisory Council exists within the industry and serves as a vehicle for reform. Through AMAC we have an opportunity to bring all stakeholders, DBE operators, primes, airports and politicians to the table to further the goal of inclusion of minorities and women in aviation contract opportunities. Reform never benefits every individual equally, but hopefully it rewards the community as a whole and gives everyone a role to play. In order for the industry to see successful reform, more ACDBE operators must become active in AMAC. In addition, AMAC must increase its presence in all major markets to serve as a resource to airport administrators and city officials, therefore continuing its efforts to lift DBE goals and increase the pool of participants by raising awareness of opportunities in the business community. AMAC should be the industry voice helping craft more effective graduation requirements into legislation: specifically, the current exclusion of a primary residence in the ‘Personal Net Worth’ calculation, which is widely known as the technicality that allows DBEs to avoid graduation. Implementing a cap that limits the primary residence exclusion in the PNW calculation to a maximum of $1.32 million would be a

good first step. Airport administrators should continue to pursue ways to reduce the cost of bidding for opportunities in their airports. One idea is to eliminate the need to ship multiple copies of physical binders, which often contain thousands of sheets of paper for each proposal. Simply requiring digital PDF files— delivered electronically—levels the playing field by significantly decreasing the cost to bid and encourages more competition (all while saving our planet). Although some airports have adopted some of these strategies, many are still hesitant to change. Airports must look to reduce the size of the concessions packages that are offered. These smaller packages allow DBEs to bid on projects independently and to avoid the more complicated and often political process of arranging partnerships. This would also allow recently graduated DBEs to better compete directly with the larger prime operators who generally have a capital resource advantage. Although managing a higher number of individual operators with individual contracts requires an additional administrative lift, it ultimately reaps a better program leading to an increase in revenue for the airport. To move forward with just a couple of the aforementioned steps would likely result in a dramatic shift away from deepening the wealth for just a few, and instead toward broadening the wealth of many. The DBE Program was designed as a swift-moving, multi-lane bridge to economic wealth development. Let’s all do our part to repair the cracks.

Kevin Holt is co-founder of H&H Hospitality, an Atlanta-based ACDBE food & beverage operator. Visit www.hh-hospitality.com to learn more about the company.

// SUMMER 2017

BUSINESS DEVELOPMENT - OPINION

The Trump Administration

What Might be Ahead for DBEs By Colette Holt

s the new administration’s agenda and approach to governing continue to unfold, many minority and women business owners are anxious. They are asking themselves what this means for disadvantaged, minority, and women business programs in general—and for their firms in particular. While there is one hallmark of the Trump administration upon which there is universal agreement– its unpredictability– here are my prognostications. The best that can be hoped for is benign neglect. The administration has had a very slow start in filling positions at the policy level. Eventually, it will find people to take those jobs. In the interim, we can hope that Trump officials have more important and pressing issues to address than contracting affirmative action programs. Neglect could mean simply continuing the status quo. While DBE-type programs could be more effective in reducing barriers to government contracting, real benefits flow to real firms under the current approach.

// SUMMER 2017

More perniciously, neglect could mean that the programs are increasingly starved for resources. Staff positions related to civil rights can go unfilled. Promotions can be denied, causing talented people to leave an agency. Investigators can be told to pull back. Enforcement actions can be slowed or altogether halted. Professional development activities can be ended. Travel requests can be denied. In effect, the programs could be left to wither to the point where there is little to defend or support. It is also possible that active steps to dismantle DBE and other programs could be in the offing. Certainly, the Trump administration has appointed officials at the Department of Education, the Environmental Protection Agency, and other agencies that are long on record as opposing civil rights and vowing to turn back the clock on gains for minorities and women. Similar ideologues could be placed in key positions to undermine DBE programs.

Of particular concern is the idea to dismantle the Office of Federal Contract Compliance, in operation since the Nixon Administration, as an unnecessary “bureaucratic entity” enforcing “burdensome” regulations, and transfer its function to the Department of Labor. Of course, federal contracting and federal employment on government contracts are sharply distinct areas with very different elements and issues. Burying contracting equity in another function is likely to result in vastly decreased monitoring and compliance. Another issue to watch is Trump’s promised infrastructure plan. While few would quarrel with the notion that our country’s infrastructure is in dire need of attention and resources, the vague proposal of a “public- private” partnership should concern DBEs. There is no guarantee that contracting affirmative action requirements

would be included in the authorizing legislation, and without express mandates, DBEs are highly unlikely to reap benefits from such spending. Further, these types of procurement and financing structures usually advantage very large firms over small firms; another impediment to DBEs’ ability to successfully access whatever opportunities might be presented. Last but definitely not least, there are the federal courts. The Trumpappointed Justice, Neal Gorsuch, is extremely conservative and has been described as “to the right of [Justice] Scalia.” Given that the departed jurist believed that affirmative action and civil rights are fundamentally unconstitutional, this is a cause of great concern. Further, Trump will have over 100 vacancies to fill on the federal appellate and trial courts, where I expect we will see similarly right wing judges nominated for lifetime positions. The

results of the court appointments will persist for decades; as federal judges tend to serve for a very long time. So, what can the DBE community do? First, stay fully informed. This is not the time to have news fatigue. Next, get involved in DBE organizations, at both the national and local levels. Organized activities such as lobbying legislators, submitting white papers, and writing articles are essential. Third, get involved in politics. All too many business people tell themselves they don’t have time, but if you don’t get involved, you may have plenty of time later when vital programs upon which DBE firms depend are undercut or eliminated. Finally, do not lose faith. While some of us will remain forever stunned by this turn of events, we also know that, to quote Martin Luther King Jr., the “arc of the universe is long, but it bends towards justice.”

Colette Holt & Associates provides legal counsel and consulting services to governments and businesses. Colette Holt & Associates is a firm of nationally recognized experts in conducting disparity studies and designing, implementing and defending successful affirmative action programs. Led by Ms. Holt, our team has decades of experience in legal issues, statistical analysis and best practices in program administration. • Minority/Women/Disadvantaged Business Programs • Aﬃrmative Action and Compliance Consulting and Training • Disparity and Availability Studies • Speaking and Presentation Services • Expert Witness Services • General Counsel to American Contract Compliance Association

(773) 255-6844 • colette.holt@mwbelaw.com • www.mwbelaw.com // SUMMER 2017

business development

South Atlantic SBTRC Executive Director Kaye Gantt leads a DBE outreach meeting for a Charlotte-area highway construction project.

SBTRCs Lead DBEs to

Opportunities in Transportation By American DBE Staff

eading DBEs to greater opportunity in transportation is a passion for Kaye Gantt, executive director of the South Atlantic Small Business Transportation Resource Center (SA-SBTRC). Gantt’s passion leads her to travel extensively over a fourstate region covering North Carolina, Virginia, West Virginia and Kentucky, promoting transportation opportunities and educating DBEs on how to succeed in winning contracts with transportation agencies. Gantt got involved in the area of diverse business development after working

// SUMMER 2017

more than 20 years in the banking industry. Gantt joined the N.C. Institute of Minority Economic Development in Durham, North Carolina in 2009. The Institute administers several programs to help minority- and women-owned businesses succeed, including the SASBTRC, the North Carolina Minority Business Center, and the Women’s Business Center of N.C. Through these and other initiatives of the Institute, Gantt gained a passion for small and emerging businesses through the process of building a sustainable company and finding business opportunities to build capacity.

“I welcome the opportunity to work with entrepreneurs that want to build successful businesses,” Gantt said. “Although I enjoyed my banking career, I find this work more rewarding because when my clients succeed I get to share in their success.” Her work and passion have not gone unrecognized. The National Association of Minority Contractors honored Gantt with the 2017 Hariett Tubman Excellence in Leadership Award at their 48th Annual National Conference in June 2017. She was recognized for her exemplary efforts to support minority business development. “Receiving the award was

an honor and quite humbling,” Gantt said. “Harriett Tubman is a historical figure whom I greatly admire. When I consider her struggle, her courage, and the strength it took for her to make an impact in the lives of so many; surely I can make a difference in leading small businesses to their economic freedom.” The U.S. Department Transportation Office of Small and Disadvantaged Business Utilization operates 13 SBTRCs across the country with the mission of assisting businesses gain access to business opportunities in the transportation industry with aviation, highway, and transit agencies. SBTRCs provide free business counseling that includes market research, certification, procurement, technical assistance and other services. SBTRCs also administer the U.S. DOT Bonding Education Program (BEP), Women in Transportation Initiative (WITI) and Capital Access Program (CAP). “I would recommend the SBTRC to any business looking to grow in the transportation industry,” said Noel Smith, president of GSSA, LLC in Charlotte, North Carolina. Smith used the SBTRC’s counseling services to find business opportunities, get certified as a Disadvantaged Business Enterprise, and learn the business landscape in North Carolina. He also completed the Bonding Education Program. Smith has won two contracts at the Charlotte Douglas International Airport since utilizing the services of the SBTRC. His first contract was for lawn maintenance, and the second is a janitorial services contract. Smith said he is grateful for the assistance and training he received, especially when things were happening slowly for his company. “They helped me to keep going and keep trying. I'm not as successful as I want to be yet, but I'm on my way. I would recommend the SBTRC to anyone starting in business,” Smith said. Through the USDOT Bonding Education Program (BEP), SBTRCs across the country have made a significant impact on the level of surety bonding capacity of small and Disadvantaged Business Enterprises. The BEP has served over 1,000 participants nationwide and helped firms secure more than $678 million in bonding capacity. A primary reason for this success is the program’s partnership with the Surety and Fidelity Association of America. SFAA works closely with each SBTRC that hosts the bonding program to identify active bonding agents to serve as instructors and work one-on-one with participating firms to assess the firm’s barriers to bonding. The bonding agents then help participants create a plan to address the barriers and become bond ready in the future. Although transportation agencies receiving funding from the USDOT must conduct outreach to DBE firms as a part of DBE Program regulations, SBTRCs help consolidate opportunities to help clients streamline their business development efforts. For instance, Gantt’s SA-SBTRC

maintains an active database of clients, and sends email notifications when new opportunities in their region become available. SA-SBTRC also offers guidance to clients in taking the right steps to pursue the opportunity. The SA-SBTRC often collaborates with transportation agencies and prime contractors to host pre-bid meetings or information sessions, especially on major construction projects. Gantt truly enjoys this aspect of the SBTRC’s services and has collected nearly 20 construction hardhats on a bookshelf in her office to remind her of the major projects she has worked on to connect DBE with opportunities. “I started collecting them several years ago and I just kept going,” Gantt said. “It helps me remember the DBEs we have helped win contracts and have success in this industry.” The U.S. DOT has established agreements with 13 organizations to serve as SBTRCs across the United States. Organizations contracted to serve as a SBTRC include local chambers of commerce, trade associations, educational institutions, and other business organizations. The 13 SBTRC regional territories are:

Capital Region (Washington, D.C. Metro Area) Central Region (AR, KS, MO, MS) Great Lakes Region (OH, IL, IN, MI, WI) Gulf Region (LA, NM, OK, TX) Mid-Atlantic Region (NJ, DE, MD, PA) Mid-South Atlantic Region (GA, SC, TN) Northeast Region (CT, MA, ME, NH, NY, RI, VT) Northern Plans Region (IA, MN, MT, ND) Northwest Region (AK, ID, OR, WA) South Atlantic Region (KY, NC, VA, WV) Southeast Region (AL, FL, PR, USVI) Southwest Region (AZ, CA, HI, NV) West Central Region (CO, NE, SD, UT, WY) // SUMMER 2017

Small, minority-, and women-owned businesses are welcome to become clients of the SBTRC to take advantage of free business programs. Interested firms should visit the SBTRC website at www.transportation.gov/ osdbu/SBTRCs to find out more about the program and click on the link of the center in their state of residence.

The U.S. Department of Transportation Office of Small and Disadvantaged Business Utilization maintains 13 regional centers across the country to provide outreach, training and assistance to companies seeking opportunities in the transportation industry.

// SUMMER 2017

business development

NAMC Swearing-In Ceremony for National Board Members at the Hall of Fame Gala.

Laying Foundations that

Build Stronger Futures Source: NAMC Press Release

he National Association of Minority Contractors announced the installation of its new board of directors in June 2017. The 2017-2018 NAMC national executive officers are Wendell Stemley, President; Andrew Colas, Executive Vice President; Pete Varma, Treasurer; and Kaye Gantt, Secretary. New national board members were sworn in by the Honorable Tameika Isaac Devine, mayor pro tempore of Columbia, South Carolina, in front of hundreds of conference attendees and guests at the NAMC 48th Annual National Conference Hall of Fame Gala on June 16, 2017.

NAMC held the successful 48th Annual National Conference at the Columbia Marriott hotel in downtown Columbia, South Carolina. Co-hosted by Mayor Stephen K. Benjamin and Governor Henry McMaster, Mayor Benjamin extended a warm welcome under this year’s theme of “Laying Foundations that Build Stronger Futures.” The conference started on Wednesday, June 14 with a golf outing at the Cobblestone Park Golf Club and concluded with the Hall of Fame Gala on Friday evening, June 16. Minority contracting, development business leaders, and major corporate representatives from across the country attended. Thomas W. Dortch,

Hall of Fame Gala keynote speaker, Thomas W. Dortch Jr., Chairman Emeritus of 100 Black Men of America Inc. // SUMMER 2017

Jr., Chairman Emeritus of 100 Black Men of America Inc., was the keynote speaker at the gala. In an inspiring message, he addressed the need for developing youth and giving back to the local community. Also honored at the gala were Congressman G.K. Butterfield, 2016 Chairman of the Congressional Black Caucus (CBC), who was presented with the NAMC Parren J. Mitchell Advocacy Award in recognition of the collaborative efforts between NAMC and the CBC on business and socioeconomic issues. AEG Worldwide and MGM Resorts International received the 2017 NAMC Joint Venture Development Team of the Year Award for the T-Mobile Arena in Las Vegas, Nevada. The NAMC Ray Dones Service Award was awarded to Samuel “Papa” Taylor, who started the family construction business in 1930. Taylor Brothers Construction, a Columbia, South Carolina-based business, has remained in the Taylor family for over 100 years. This year’s Hall of Fame inductees were Nathaniel Spells Sr., founder of Construction Dynamics Inc.; Dr. Louis Lynn, Chairman, Enviro AgScience Inc.; and Billy Freeman Jr., founder and owner of Technique Concrete Construction.

Left to Right: Wendell Stemley, NAMC President, and members of the Taylor Family who received the NAMC Ray Dones Service award on behalf of the late Samuel “Papa” Taylor, founder of the Taylor Brothers Construction company in 1930. NAMC stands ready to meet the challenges of the new design build national markets and increase opportunities for minorities and women in construction. The national conference set the stage for building on the organization's legacy of having some of the top minority contractors in the nation with over a billion dollars of project capacity. The 2018 gathering for the 49th Annual National Conference will be held June 13-15, in Dallas, Texas.

The Honorable G.K. Butterfield (NC01) and Wendell Stemley, NAMC President.

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W W W. A M E R I C A N D B E . C O M

// SUMMER 2017

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ZOBO is an all-natural hibiscus drink that you can enjoy hot or cold, and on the go! • Ready-to-Drink • Tea bags (ginger mint tea) • Powder drink mix

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DBE

BIDDING

OPPORTUNITIES LOS ANGELES, CA REGIONAL CONNECTOR TRANSIT CORRIDOR FOR METRO CONTRACT NO. C0980

autoability.com

OPPORTUNITIES TO PROVIDE SUB-QUOTES INCLUDE: • Furnish LADWP Metering Switchgear and Raceway to TPSS Gear. • Install LADWP Metering Switchgear and Raceway to TPSS Gear. • Furnish Cable Tray, Panels, & Conduit for Disconnect Switch Rooms. • Install Cable Tray, Panels, & Conduit for Disconnect Switch Rooms. • Furnish Cable Tray, Panels, and Conduit for TPSS & HV Rooms. • Install Cable Tray, Panels, and Conduit for TPSS & HV Rooms. • Furnish Panels and Power for TC&C Room. • Install Panels and Power for TC&C Room.

TIME FRAME FOR PROJECT: Starting early/mid 2020 NOTICE OF INTEREST RESPONSE DEADLINE: Sept. 5, 2017 CONTACT: Zack Aemmer (323) 973-4947 Regional.DBE@masselec.com Mass Electric is an Equal Opportunity Employer. This solicitation is in response to Metro’s DBE requirements and MECT intends to conduct itself in good faith with DBE firms seeking subcontract opportunities for the contract.

DBEs Invited Autoabilty, a premier manufacturer of wheelchair accessible vehicles, is seeking partners for existing and new vehicle projects. Interested metal forming and fabrication companies are urged to contact:

DBELO-Autoability P.O. Box 1015, Clarkston, MI 47347 248-620-4200 or bob@autoability.com

// SUMMER 2017

American DBE Magazine - Summer 2017

Articles inside

Cracks in the ACDBE Bridge