Disadvantaged Business Enterprise Disparity Study ... -...
Transcript of Disadvantaged Business Enterprise Disparity Study ... -...
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Eleanor Mason Ramsey, Ph.D., President
Mason Tillman Associates, Ltd.
Transportation Business Advisory Council
February 7, 2013
Los Angeles County
Metropolitan Transportation Authority
Disadvantaged Business EnterpriseDisadvantaged Business EnterpriseDisparity Study Report BriefingDisparity Study Report Briefing
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DISCUSSION POINTSDISCUSSION POINTS
• Study Objectives
• Research Method
• Statistical Findings
• Recommendations
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MASON TILLMAN ASSOCIATESMASON TILLMAN ASSOCIATES
Service Divisions
Business Affirmative Action
Corporate Communications
Established in 1978
Public Policy Research and MarketingProfessionals
Award Winning CompanyAward Winning Company
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DISPARITY STUDIESDISPARITY STUDIES
1515
1515
1313
StatesStates
CountiesCounties
SchoolsSchools
CitiesCities 2525
119119
DistrictsDistricts 5151
One Hundred Nineteen On Time & UnchallengedOne Hundred Nineteen On Time & Unchallenged
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SUBCONSULTANTSSUBCONSULTANTS
Subconsultants Ownership Location Role
Debra VarnadoAnalytics
HispanicAmerican
Los Angeles, CA Anecdotal Interviews
Golden StateManagement Services
HispanicAmerican
Pasadena, CAData Collection and
Outreach
Katherine Padilla &Associates, Inc.
HispanicAmerican
Pasadena, CA Anecdotal Interviews
Roy Willis &Associates, Inc.
AfricanAmerican
Marina del Rey,CA
Data Collection
Sullivan International,Inc.
AfricanAmerican
Long Beach, CAData Collection and
Outreach
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DISPARITY STUDYDISPARITY STUDY
Determine If Statistical Disparity Exists
Determine DBE Availability to Set Overall DBE Goal
Assess Effectiveness of Race and Gender-Neutral Programs
Prepare a Legally Defensible Study
OBJECTIVESOBJECTIVES
Outreach to an Ethnically Diverse CommunityIdentify All Prime and Subcontract Awards and Payments
Recommend Race and Gender Neutral Remedies
CHALLENGESCHALLENGES
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Prime ContractUtilizationAnalysis
Prime ContractPrime ContractUtilizationUtilizationAnalysisAnalysis
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CONTRACTS STUDIEDCONTRACTS STUDIED
IndustryTotal PrimeContracts
Total PrimePayments
Construction 31 $146,949,873
Architecture and Engineering 17 $114,676,893
Other Miscellaneous and ProfessionalServices
63 $17,218,959
Goods and Other Services 71 $40,023,718
Total 182 $318,869,443
January 1, 2008January 1, 2008 –– December 31, 2010December 31, 2010
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Outside Market Area$89,714,992
28.14%
PRIME PAYMENTSPRIME PAYMENTS
Market Area: Los Angeles County
January 1, 2008January 1, 2008 –– December 31, 2010December 31, 2010
Total
Within Market Area$229,154,451
71.86%
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PRIME CONTRACTSPRIME CONTRACTS
IndustryUnder
$25,000Under
$100,000Under
$500,000$500,000and over
Construction 22.58% 38.71% 58.06% 41.94%
Architecture and Engineering 23.53% 29.41% 52.94% 47.06%
Other Miscellaneous andProfessional Services
33.33% 65.08% 93.65% 6.35%
Goods and Other Services 67.61% 91.55% 91.55% 8.45%
All IndustriesAll Industries
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PRIME UTILIZATIONPRIME UTILIZATION
EthnicityTotal
DollarsPercent
of DollarsTotal
Contracts
Non-Minority Males $294,319,206 92.3% 136
African Americans $145,000 0.05% 1
Hispanic Americans $23,568,864 7.39% 26
Caucasian Females $739,073 0.23% 14
Asian-Pacific Americans $48,681 0.02% 3
Subcontinent Asian Americans $48,619 0.02% 2
Native Americans $0 0.00% 0
TOTAL $318,869,443 100% 182
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PRIME CONTRACT DOLLARSPRIME CONTRACT DOLLARS
DollarsPercent of
DollarsNumber ofContracts
Percent ofContracts
5 Vendors Received $204,350,429 64% 7 3.85%
6 Vendors Received $224,365,046 70% 8 4.4%
$256,389,761
Total Contracts 182
Number of Utilized Vendors 133
Total Expenditures $318,869,443
8 Vendors Received$256,389,761 80% 12 6.59%
125 Vendors Received $62,479,682 20% 170 93.41%
133 Vendors Received $318,869,443 100% 182 100%
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Prime ContractAvailability
Analysis
Prime ContractPrime ContractAvailabilityAvailability
AnalysisAnalysis
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LOCAL BUSINESS PROFILELOCAL BUSINESS PROFILE
U.S Census: County Business Patterns 2010 U.S Census: Survey of Business Owners 2007
BusinessesLos Angeles
CountyState of
California
United
States
Fewer Than 5 Employees 145,832 480,145 4,078,084
Fewer Than 10 Employees 185,918 631,541 5,451,771
Fewer Than 20 Employees 213,348 737,169 6,407,787
More Than 100 Employees 5,160 17,675 165,063
Minority-owned Businesses 466,312 1,220,581 5,759,209
Woman-owned Businesses 316,549 1,039,208 7,792,115
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SubcontractAnalysis and
Findings
SubcontractSubcontractAnalysis andAnalysis and
FindingsFindings
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SUBCONTRACT UTILIZATIONSUBCONTRACT UTILIZATION
EthnicityTotal
DollarsPercent
of DollarsTotal
Subcontracts
Non-Minority Males $44,385,275.19 69.67% 191
Caucasian Females $9,305,107.98 14.61% 18
African Americans $1,219,994.33 1.91% 5
Asian-Pacific Americans $1,647,544.74 2.59% 9
Subcontinent Asian Americans $414,293.98 0.65% 4
Hispanic Americans $6,736,963.61 10.57% 29
Native Americans $0.00 0.00% 0
Total $63,709,179.83 100% 256
All IndustriesAll Industries
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EthnicityTotal
DollarsPercent
of DollarsTotal
Subcontracts
Non-Minority Males $21,493,157.06 75.35% 128
Caucasian Females $4,936,654.13 17.31% 7
African Americans $0.00 0.00% 0
Asian-Pacific Americans $59,461.37 0.21% 2
Subcontinent Asian Americans $286,038.98 1% 3
Hispanic Americans $1,749,142.13 6.13% 14
Native Americans $0.00 0.00% 0
Total $28,524,453.67 100% 154
SUBCONTRACT UTILIZATIONSUBCONTRACT UTILIZATION
ConstructionConstruction
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EthnicityTotal
DollarsPercent
of DollarsTotal
Subcontracts
Non-Minority Males $20,166,581.77 65.34% 35
Caucasian Females $4,121,613.23 13.35% 9
African Americans $1,197,029.32 3.88% 3
Asian-Pacific Americans $1,065,220.64 3.45% 3
Subcontinent Asian Americans $0.00 0.00% 0
Hispanic Americans $4,312,864.41 13.97% 9
Native Americans $0.00 0.00% 0
Total $30,863,309.37 100% 59
SUBCONTRACT UTILIZATION
Architecture and EngineeringArchitecture and Engineering
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EthnicityTotal
DollarsPercent
of DollarsTotal
Subcontracts
Non-Minority Males $2,725,536.36 63.07% 28
Caucasian Females $246,840.62 5.71% 2
African Americans $22,965.01 0.53% 2
Asian-Pacific Americans $522,862.73 12.1% 4
Subcontinent Asian Americans $128,255.00 2.97% 1
Hispanic Americans $674,957.07 15.62% 6
Native Americans $0.00 0.00% 0
Total $4,321,416.79 100% 43
SUBCONTRACT UTILIZATIONSUBCONTRACT UTILIZATION
Other Miscellaneous and Professional ServicesOther Miscellaneous and Professional Services
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DisparityAnalysis
DisparityDisparityAnalysisAnalysis
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PRIME CONTRACT DISPARITY FINDINGSPRIME CONTRACT DISPARITY FINDINGS
Red = Statistically Significant Underutilization
Ethnic/GenderGroups
All Contracts
Prime and Sub
All Prime Contracts
Under $500,000
AvailabilityPercentage
UtilizationPercentage
AvailabilityPercentage
UtilizationPercentage
African
Americans9.44% 0.37% 9.38% 1.58%
Asian – Pacific Americans 9.54% 0.45% 9.32% 0.53%
Subcontinent Asian
Americans1.98% 0.12% 1.7% 0.53%
Hispanic Americans 12.79% 8.13% 12.48% 16.6%
Native Americans 0.78% 0.00% 0.82% 0.00%
MBEs 34.53% 9.07% 33.7% 19.24%
WBEs 8.49% 2.69% 8.08% 8.04%
DBEs 43.02% 11.76% 41.78% 27.27%
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SUBCONTRACT DISPARITY FINDINGSSUBCONTRACT DISPARITY FINDINGS
Red = Statistically Significant Underutilization
Ethnic/Gender GroupsAll Subcontracts
Availability Percentage Utilization Percentage
African Americans 9.41% 1.91%
Asian – Pacific Americans 9.17% 2.59%
Subcontinent Asian Americans 2.14% 0.65%
Hispanic Americans 17.75% 10.57%
Native Americans 0.77% 0.00%
MBEs 39.24% 15.73%
WBEs 8.5% 14.61%
DBEs 47.74% 30.33%
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ProgramRecommendations
ProgramProgramRecommendationsRecommendations
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• Target potential DBEs and SBEs for certification
• Track utilized subcontractors
• Develop expedited subcontractor payment program
• Post prime contractor payments
• Publish standardize procurement procedures
• Post bid protest procedures
• Establish DBE ombudsperson position
• Publish DEOD and procurement staff contact information
RACE AND GENDER-NEUTRAL
REMEDIESREMEDIES
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CONSTITUTIONAL
• Weighted availability findings support 27 percent
Overall DBE goal
• Disparity findings support narrowly tailored remedy
• Race conscious portion limited to statistically significant
underutilized groups
REMEDIESREMEDIES
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