Survey of Disadvantaged Business Enterprises - Final Report...Arizona Department of Transportation...

Arizona Department of Transportation

Survey of Disadvantaged Business Enterprises

Final Report

December 10, 2012

16858 E. Avenue of the Fountains, Ste. 104 Fountain Hills, Arizona 85268 Tel: 602-908-1082 ● Fax 480-837-6608 www.BlackerbyAssoc.com [email protected]

DBE Survey Final Report - i - December 10, 2012

Table of Contents Page Survey of Disadvantaged Business Enterprises – Executive Summary ...........................................1

Survey of Disadvantaged Business Enterprises – Final Report ......................................................3

Introduction ................................................................................................................................. 3

Survey Instrument ....................................................................................................................... 3

Survey Administration ................................................................................................................ 3

Response Rates ............................................................................................................................ 3

Regional Representation ............................................................................................................. 3

Ethnic Representation ................................................................................................................. 4

Gender Representation ................................................................................................................ 5

County Representation ................................................................................................................ 6

Q.1. Are you interested in working on ADOT or federally-funded local government projects as a subcontractor or professional services consultant? .................................................................. 7

Q.14. If you are not interested in working on ADOT or federally-funded local government projects, please tell us why. ......................................................................................................... 8

Q.2. Have you ever worked on an ADOT or federally-funded local government project? ........ 8

Q.3. If you have never worked on an ADOT or federally-funded local government project, please tell us why. ....................................................................................................................... 9

Q.4. Think about your most recent work on an ADOT or federally-funded local government project. How satisfied were you with: (list of factors) .............................................................. 11

Q.5. Would you like to work with that same prime contractor or consultant again? ................ 12

Q.6. Which of the following products and services are you certified as a DBE to provide to ADOT contractors or consultants? ............................................................................................ 12

Q.7. Which of the following products and services do you offer for which you are NOT certified as a DBE to provide to ADOT contractors or consultants? ........................................ 15

Q.8. If you checked services for which you are not DBE-Certified in the previous question, why are you not DBE-certified for those services? ................................................................... 18

Q.9. Have you participated in any of these ADOT DBE Supportive Services activities? ........ 19

Q.10. Why have you not participated in any of the DBE Support Services activities? ............ 20

Q.11. What additional DBE supportive services would you like ADOT to provide to DBEs? 22

Q.12. What are the top three challenges—or barriers to success—your company faces in today’s market? ......................................................................................................................... 23

Q.13. Please provide feedback about ways ADOT's Disadvantaged Business Enterprises program could be improved. ..................................................................................................... 25

Issues and Recommendations .................................................................................................... 27

Blackerby Associates, Inc. ADOT Office of Business Opportunity

DBE Survey Final Report - ii - December 10, 2012

Appendix A Survey Questionnaire ................................................................................................29 Survey Questionnaire ................................................................................................................ 30

Appendices B through I “Other” Responses to Questions and Responses to Open-Ended Questions........................................................................................................................................44

Appendix B Q2. If you are not interested in working on ADOT or federally-funded local government projects, please tell us why. ................................................................................... 45 Appendix C Q3. If you have never worked on an ADOT or federally-funded local government project, please tell us why. ........................................................................................................ 46 Appendix D Q8. If you checked services for which you are not DBE-certified in the previous question, why are you not DBE-certified for those services? ................................................... 48 Appendix E Q9. Have you participated in any of these ADOT DBE Supportive Services activities? ................................................................................................................................... 49 Appendix F Q10. Why have you not participated in any of the DBE Support Services activities? ................................................................................................................................... 50 Appendix. G Q11. What additional DBE supportive services would you like ADOT to provide to DBEs? ................................................................................................................................... 51 Appendix H Q12. What are the top three challenges—or barriers to success—your company faces in today’s market? ............................................................................................................ 56 Appendix I Q13. Please provide feedback about ways ADOT's Disadvantaged Business Enterprises program could be improved. .................................................................................. 59

DBE Survey Final Report - 1 - December 10, 2012


Executive Summary The Arizona Department of Transportation, Office of Business Opportunity, DBE Supportive Services Program, requested Blackerby Associates, Inc., of Fountain Hills, Arizona, to conduct a survey of Arizona’s Disadvantaged Business Enterprises (DBEs). With consultation, Blackerby Associates created a survey instrument using SurveyMonkey. A DBE-SS Program contractor sent three emails to a refined list of 872 DBEs with a unique Internet link to the survey. For DBEs in the Northern and Southern Arizona regions, consultants telephoned non-responding DBEs to complete the survey. Over 30% of DBEs (266) responded to the survey statewide, including 92% (101) from the Southern region, 82% (28) from the Northern region, 22% (115) from the Central region (Maricopa County) and 11% (21) from out-of-state locations. Higher response rates in Southern and Northern Arizona are due to follow-up phone calls in those regions. In terms of ethnicity the responses over-represented Anglo women and Hispanic Americans, and under-represented Black Americans by small but noticeable amounts, compared to their makeup in the wider DBE community. The responses were proportionately representative in terms of gender. Over 95% of survey respondents are interested in working on ADOT or federally-funded local government projects as a subcontractor or professional services consultant. Those who do not said primarily that they don’t provide products or services that contractors need, or that it’s too hard to work with prime contractors and consultants. Nearly 64% of respondents have worked on an ADOT or federally-funded local government project. Those that have not cited a variety of reasons. The most important reason—cited more than once in different parts of the survey responses—is that they don’t know any prime contractors or consultants. Some others have bid on projects but have not won any. Some cited no projects in their service area. Others reported it is too hard to work with prime contractors, or that they don’t provide products or services that contractors or consultants need. Those that have worked on projects were fairly highly satisfied with the projects’ profitability, speed of payment, clarity of bid requirements and their relationship with the prime contractors. They were less satisfied with their own ability to meet the project requirements. In terms of “repurchase intention,” 96% of them would work with the same prime contractor again. About 42% of responding DBEs are in pre-construction analysis, design and planning services. Nearly 12% did not find an appropriate category among the 106 construction-related products and services listed in the questionnaire. About 79% of respondents identified no disciplines for which they are not already certified. The reasons that about 21% were not certified for some products or services they offer include: they added the services after obtaining DBE certification; some had difficulties with the certifying agency; some had individual circumstances; 28% said no one ever asked about those services; 26% said they never applied for certification for those services, and for 16% the qualifying DBE owners are not licensed for those services.



Just 56% of the respondents had ever participated in a DBE-Supportive Services activity. Regional conferences were the most popular, attended by 30% of the respondents. Other activities included DBE Expo (25%); Working with ADOT (19%); ADOT Academy (17%); Task Forces (15%); Preparing to Prime (8%); and Technical Assistance (5%). Of those who had attended, 26% had attended just one type of event, and 12% had attended two types. Just 3 DBEs had attended all seven types of events. The reasons that non-participants had not participated include: they can’t afford time away from work (43%); they don’t have enough information (39%); the activities are too far away (34%; they can’t afford the cost (23%); they don’t know how to get involved (17%); and other (14%). About 29% of DBEs offered open-ended comments about other DBE supportive services ADOT might provide. Ten commented they would like to meet prime contractors; seven noted difficul-ties with bonding and insurance; five requested regular information about all pending bid oppor-tunities; four asked for more training opportunities; three wanted information about audited over-head rates; three asked for mentoring assistance. When asked about their three top challenges: 47% cited marketing; 28% said meeting prime con-tractors; 24% noted insurance and bonding; 23% reported difficulty finding good workers, a sur-prise in this time of high unemployment; 22% reported estimating and bidding; 20% cited job costing and cost controls; 18% noted issues with writing proposals and responding to requests for qualifications, which represents 42% of DBEs in pre-construction analysis, design and planning services; 14% cited social media marketing; 9% reported need for a company website; and 8% requested help with accounting. The remainder had even lower frequencies. Just fifty DBEs offered open-ended suggestions for improving the DBE program, because they had already said everything they wanted to say or because of “survey fatigue.” The great majority of the comments are on-point and very specific recommendations for improving ADOT’s DBE program. Every reader of this report is urged to read all of the comments, presented verbatim in Appendix I. The authors considered highlighting the most valuable suggestions, but found that “the most valuable” would include about 70% of all the comments. Just eight had no concrete suggestions for improvement Six of the comments addressed making more information about the actual successful bids. Five of the comments simply praised the program. Two suggested a “mentor-protégé” program. Three comments related to insurance and bonding. One suggested that if jobs were split into smaller pieces they may not require so much bonding. A few DBEs complained about different aspects of program that compliance and enforcement. Pages 27 and 28 of this report raise some issues and provide some recommendations for improving the DBE program, as informed by the DBE’s responses to this survey. The author thanks Donato Consulting, Kuniklo Corporation and the staff of ADOT’s Office of Business opportunity, DBE Supportive Services program for their help with developing and administering this survey.



Final Report Introduction The Arizona Department of Transportation, Office of Business Opportunity, DBE Supportive Services Program, requested Blackerby Associates, Inc., of Fountain Hills, Arizona, to conduct a survey of Arizona’s Disadvantaged Business Enterprises (DBEs). Survey Instrument With consultation from the DBE-SS Program staff and Donato Consulting, Blackerby Associates created a survey instrument using SurveyMonkey. Appendix A contains an annotated version of the final questionnaire. The instrument included 14 questions, but not all questions were posed to all respondents. For example: • If the respondent indicated no interest in working on ADOT or federally-funded local

government projects, the respondent was directed to the last question, asking why the respondent had no interest, and then the survey ended.

• If the respondent had never worked on an ADOT or federally-funded local government project, it would skip the next two questions about satisfaction with the most recent project and whether the DBE would work with the same prime contractor again.

The questionnaire included a mix of item-response types, including Yes/No, multiple choice with single response, multiple choice with multiple response, Likert scale and open-ended responses. Survey Administration DBE-SS Program contractor Kuniklo Corporation sent a series of three emails to a refined list of 872 DBEs, each with a unique Internet link to the survey. About 20% of the DBEs responded to the email campaign. For DBEs in the northern region (Apache, Coconino, Gila, La Paz, Mojave, Navajo and Yavapai Counties), Blackerby Associates personnel telephoned non-responding DBEs to complete the survey. For DBEs in the southern region (Cochise, Graham, Greenlee, Pima, Pinal, Santa Cruz and Yuma Counties), Donato Consulting, Inc., personnel telephoned non-responding DBEs to complete the survey. Non-respondents in the central region (Maricopa County) and from out-of-state locations did not receive follow-up phone calls. Response Rates Over 30% of the 872 DBEs contacted (266) responded to the survey, including 92% (101) from Southern Arizona, 82% (28) from Northern Arizona, 22% (115) from Central Arizona (Maricopa County) and 11% (21) from out-of-state locations (see Table 1 and Fig. 1). The higher response rates in Southern and Northern Arizona are no doubt a result of the follow-up telephone calls in those regions. Regional Representation Southern and Northern Arizona regions were over-represented in their survey responses com-pared to their representation among all DBEs (see Fig. 2). Southern Arizona DBEs make up about 13% of all DBEs, but they made up 38% of all Respondents. Similarly, Northern Arizona



DBEs are under 4% of DBEs, but over 10% of respondents. Central Arizona (Maricopa County) DBEs are over 61% of all DBEs, but just under 44% of respondents. And out-of-state DBEs account for over 22% of all DBEs, but are less than 8% of respondents. Table 1. DBEs and Respondents by Region

Region All DBEs All DBEs % Respondents Respondents % Response

Rate Southern 110 12.6% 101 38.0% 91.8% Northern 34 3.9% 28 10.5% 82.4% Central (Maricopa Cty.) 533 61.1% 116 43.6% 21.8% Out-of-State 195 22.4% 21 7.9% 10.8%

Totals 872 100.0% 266 100.0% 30.5%

Ethnic Representation The distribution of responses by ethnicity is a bit more balanced (see. Table 2 and Fig. 3). Anglo (White) Women, Hispanic Americans and Native Americans are slightly over-represented, and other ethnic groups are slightly under-represented among respondents.



Table 2. DBEs and Respondents by Ethnicity Ethnicity All DBEs All DBEs % Respondents Respondents %

Anglo (White) Woman 337 38.6% 109 41.0% Asian American 63 7.2% 16 6.0% Asian-Pacific American 14 1.6% 1 0.4% Black American 134 15.4% 26 9.8% Hispanic American 277 31.8% 96 36.1% Native American 46 5.3% 17 6.4% Other 1 0.1% 1 0.4%

Totals 872 100.0% 266 100.0%

Again, much of the relatively minor differences in representation are likely due to the telephone follow-up calls in the Northern and Southern regions, where high concentrations of Hispanic American-owned and Native American-owned businesses are located. Similarly, Maricopa County, particularly Phoenix, where no follow-up phone calls were made, has a relatively high concentration of Black American-owned businesses. Gender Representation The distribution of respondents by gender is also relatively balanced (see Table 3 and Fig. 4). Women own nearly 53% of all DBEs, and they made up close to 52% of respondents, while men, who own just 47% of DBEs, comprise close to 49% of respondents.

Table 3. DBEs and Respondents by Gender Gender All DBEs All DBEs % Respondents Respondents % Female 461 52.9% 137 51.5% Male 411 47.1% 129 48.5% Totals 872 100.0% 266 100.0%



These minor differences are somewhat surprising, given the relative over-representation of Anglo (White) Women among respondents shown earlier. It must be that women-owned non-Anglo businesses responded in fewer numbers than their representation among all DBEs. County Representation Distribution of respondents by county also reflects the different survey administration methodologies (see Table 4 and Fig. 5). Maricopa and Out-of-State DBEs are significantly under-represented, as these DBEs did not receive follow-up telephone calls, while DBEs in every other county did receive follow-up calls. Maricopa County has over 61% of DBEs, but just 44% of respondents. Over 22% of DBEs are headquartered out-of-state, but they made up only 8% of respondents.

Table 4. DBEs and Respondents by County County All DBEs All DBEs % Respondents Respondents %

Apache 1 0.1% 1 0.4% Cochise 3 0.3% 3 1.1% Coconino 11 1.3% 10 3.8% Gila 5 0.6% 2 0.8% Graham 0 0.0% 0 0.0% Greenlee 0 0.0% 0 0.0% La Paz 0 0.0% 0 0.0% Maricopa 533 61.1% 116 43.6% Mohave 4 0.5% 3 1.1% Navajo 4 0.5% 4 1.5% Pima 84 9.6% 77 28.9% Pinal 13 1.5% 12 4.5% Santa Cruz 1 0.1% 1 0.4% Yavapai 9 1.0% 8 3.0% Yuma 9 1.0% 8 3.0% Out-of-State 195 22.4% 21 7.9%

Totals 872 100.0% 266 100.0%



Q.1. Are you interested in working on ADOT or federally-funded local government projects as a subcontractor or professional services consultant? The overwhelming majority of respondents said “Yes,” they are interested in working on ADOT or federally-funded local government projects (see Table 5 and Fig. 6). The positive responses came from 95% of respondents.

Table 5. Are you interested in working on ADOT or federally-funded local government projects as a subcontractor or professional services consultant?

Answer Options

Response Percent

Response Count

Yes 95.1% 252 No 4.9% 13

Answered question 265 Skipped question 1



Q.14. If you are not interested in working on ADOT or federally-funded local government pro-jects, please tell us why. Thirteen respondents indi-cated they are not interested in working on ADOT or feder-ally-funded local government projects. Table 6 and Fig. 7 provide a closer look at why these companies responded negatively. The survey instru-ment listed this question last; the analysis is presented immediately after the related first question. Five respondents reported they do not offer products or services that contractors or consultants need. Five respondents reported they find working with contractors or consultants is too difficult. Just one reported that payment comes too slowly. Three reported “Other” reasons, (see Appendix B). One is a general contractor interested in performing general contracting work, not subcontracting. The other two are small companies who believe ADOT contractors only look for larger companies. Q.2. Have you ever worked on an ADOT or federally-funded local government project? Most (64%) respondents had previously worked on ADOT or federally-funded local government projects (see Table 7 and Fig. 8). Table 7. Have you ever worked on an ADOT or federally-funded local government project?

Answer Options

Answer Options

Response Percent

Response Count

Yes Yes 63.9% 161No No 36.1% 91

Answered question 252Skipped question 14

Table 6. If you are not interested in working on ADOT or federally-funded local government projects, please tell us why. (Please check all that apply).

Answer Options Response

Percent Response

Count We don’t provide products or services that contractors or consultants need

41.7% 5

It's too hard to work with prime contractors or consultants

41.7% 5

Other (please specify) 25.0% 3Payment comes too slowly 8.3% 1ADOT projects are not profitable enough for us

0.0% 0




Q.3. If you have never worked on an ADOT or federally-funded local government project, please tell us why. For the 91 respondents (36%) who answered the previous question in the negative, the survey asked, “Why not?” Table 8 and Fig. 9 show their answers. Table 8. If you have never worked on an ADOT or federally-funded local government project, please tell us why. (Please check all that apply).


Percent Response

Count Other (please describe) 38.9% 35 We don’t know any ADOT prime contractors or consultants 33.3% 30 We bid on projects but haven’t won yet 24.4% 22 No projects are in our service area 17.8% 16 It's too hard to work with ADOT prime contractors or consultants 13.3% 12 We don’t provide products or services that contractors or consultants need 12.2% 11 We can’t meet bonding/insurance requirements 11.1% 10 We don’t know how to estimate a bid 8.9% 8 We don’t have capacity to meet project requirements 5.6% 5 ADOT and federally-funded local government projects are not profitable enough for us to participate 2.2% 2 We're not interested in working on ADOT or federally-funded local government projects 0.0% 0




The most-common answer, given by 35 respondents (39%), was “Other.” Those responses are shown verbatim in Appendix C. Eleven of those comments amplify some of the choices provided in the questionnaire, such as: “We don’t provide products or services that contractors or consultants need;” “It’s too hard to work with ADOT prime contractors or consultants;” or “We bid on projects but haven’t won yet.” Four respondents indicated that they are newly-certified as DBEs, so have not yet had an opportunity to bid on work. Four respondents appear to be sitting back waiting for a prime contractor to contact them from the DBE list. Three reported that these projects do not have hard DBE participation goals, so prime contractors have no incentive to subcontract work to them. Some respondents are engineers, architects or project managers who see little opportunity to subcontract, because the primary design firms self-perform all the work. A similar comment was posted by an asphalt paver. Other responders commented a variety of issues:

● Two alleged discrimination against women subcontractors by prime contractors. ● One only bids on Davis Bacon (competitive wages) projects. ● One is a general contractor, not a subcontractor. ● One sells chemicals, but does not apply chemicals. ● One is a services broker who finds it difficult to compete with larger companies. ● One cannot travel beyond 50 miles outside of Flagstaff.

The second most-common response was “We don’t know any ADOT prime contractors or consultants,” cited by 30 respondents (33%). Of these 30 respondents, 21 also responded that they had participated in none of the ADOT DBE Supportive Services activities. Only three reported that they had attended a regional conference, and two reported having attended a DBE Expo, events which often have opportunities to meet with prime contractors. Nearly a quarter of respondents (22, or 24%) indicated they had bid on projects, but had not won any yet. Anecdotal phone conversations indicated that some DBEs did not understand that they may submit bids for one project to several prime contractors to increase their chances of getting the work. Several respondents (16, or 18%), reported that no projects are in their service area. Three of those respondents are out-of-state, and seven are in Maricopa County. The remainder are in Coconino (2), Navajo (1), Pima (1), Yavapai (1) and Yuma (1) counties. Ten respondents (11%) indicated they could not get sufficient bonding, and five (6%) reported they do not have the capacity to meet project requirements. These two answers both reflect on the ability of the DBEs to perform work, whether based on financial or physical capacities. One DBE selected both answers.



Eight respondents (9%) did not know how to estimate a bid. Of those DBEs, five had attended none of the ADOT DBE Supportive Services activities, and none of the eight had attended a regional conference. Recent regional conferences featured a workshop on bidding processes. Just two DBEs (2%) responded that ADOT and federally-funded projects are not profitable enough for them to participate. Q.4. Think about your most recent work on an ADOT or federally-funded local government project. How satisfied were you with: (list of factors) Those DBEs who had already participated in projects (161, or 64%) were asked about their most-recent experience, to rate their satisfaction with that experience on a scale of 1 to 5, with 1 meaning “Very dissatisfied” and 5 meaning “Very satisfied.” Tables 9 and 10, and Fig. 10 show the results. (Note: One DBE with prior experience completed no satisfaction questions. Three DBEs with no prior experience circumvented survey protocols, probably by initially answering Question 2 “Yes,” completing the satisfaction questions, then going back to change their answer to Question 2 to “No.” The responses from these three DBES were not deleted. Hence, 163 DBEs responded to the satisfaction questions, while just 161 DBEs had prior experience.) Table. 9. Think about your most recent work on an ADOT or federally-funded local government project. How satisfied were you with:

Answer Options Very

Satisfied Satisfied Neutral Dissatisfied Very

Dissatisfied Response

Count Profitability of the project? 40.1% 51.2% 4.9% 1.9% 1.9% 160 Speed of payment from prime contractor or consultant?

19.3% 61.5% 13.7% 5.0% 0.6% 162

Clarity of bid requirements? 18.4% 60.7% 14.1% 4.9% 1.8% 163 Working with the prime contractor or consultant? 24.1% 48.1% 10.5% 11.1% 6.2% 161

My ability to meet the requirements? 13.8% 50.0% 23.1% 9.4% 3.8% 162




Table. 10. Think about your most recent work on an ADOT or federally-funded local government project. How satisfied were you with:

Answer Options "Very Satisfied

or Satisfied" "Dissatisfied or

Very Dissatisfied" Profitability of the project? 91.4% 3.7%Speed of payment from prime contractor or consultant? 80.7% 5.6%Clarity of bid requirements? 79.1% 6.7%Working with the prime contractor or consultant? 72.2% 17.3%My ability to meet the requirements? 63.8% 13.1% A key way to analyze these data is to examine the percentage of respondents who are “Very Satisfied” or “Satisfied,” (“happy”) and the percentage who are “Dissatisfied” or “Very Dissatisfied” (“unhappy”). As shown in Table 10, most respondents are happy. In terms of profitability, over 91% of respondents are happy, and fewer than 4% are unhappy. About 80% are happy with the speed of payment (81%) and clarity of bid requirements (79%). Over 70% are happy with working with the prime contractor or consultant (72%). Just 64% are happy with their own ability to meet the requirements of the project. More importantly, the percentages of unhappy respondents are generally small. Any score below 10% is considered good, including: profitability (4%), speed of payment (6%) and clarity of bid requirements (7%). Potential problem areas include working with the prime contractor or consultant (17% unhappy) and the DBE’s own ability to meet project requirements (13%). Q.5. Would you like to work with that same prime contractor or consultant again? Respondents who had worked on ADOT or federally-funded local government projects were also asked if they would work with the same prime contractor again. The result was an overwhelming “Yes,” as shown in Table 11 and Fig. 11. Table 11. Would you like to work with that same prime contractor or consultant again?

Answer Options

Response Percent

Response Count

Yes 95.6% 152No 4.4% 7


This response, coupled with the very favorable satisfaction data, above, reflects positively on the efforts of prime contractors and consultants to work with DBEs. Q.6. Which of the following products and services are you certified as a DBE to provide to ADOT contractors or consultants? Table 12 shows the distribution of reported products and services among the respondents. Fig. 12 shows the same information graphically, but due to size limitations it shows only the first 44 answer options ranked in order of number of respondents.



Table 12. Which of the following products and services are you certified as a DBE to provide to ADOT contractors or consultants? (Please check all that apply).

Answer Options

Response Percent

Response Count

Answer Options

Response Percent

Response Count

Consultant Services (various) 16.8% 42 Architectural Services 1.6% 4 None 11.6% 29 Bank Protection 1.6% 4 Civil Engineering 10.4% 26 Clearing And Grubbing 1.6% 4

Electrical 10.0% 25 Construction Survey & Layout 1.6% 4

Concrete - Structural (bridges, embankments, etc.) 8.0% 20 Railing 1.6% 4

Utilities - Communication & Electrical 7.2% 18 Sweeping 1.6% 4

Concrete Barrier 6.4% 16 Traffic Engineering Study 1.6% 4 Construction Management 6.4% 16 AC Milling 1.2% 3 Environmental Planning (water, air, flood, socioeconomic, etc.) 6.4% 16 Asphalt Paving Haul 1.2% 3

Signs 6.4% 16 Bridge Design 1.2% 3 Utilities - Water & Sewer 6.4% 16 Dust Control 1.2% 3

Concrete Cutting 5.6% 14 Embankment Curb, Spillways 1.2% 3

Curb, Gutter, Sidewalk, Driveways 5.2% 13 Pipe - Sanitary 1.2% 3 Masonry 5.2% 13 Prestressing Concrete 1.2% 3 Surveying 5.2% 13 Removals 1.2% 3 Asphalt Paving Placement 4.4% 11 Soil Stabilization 1.2% 3 Construction Engineering 4.4% 11 Structural Plate Pipe 1.2% 3 Demolition/Removal 4.4% 11 Aggregate Base 0.8% 2 Erosion Control, Seeding 4.4% 11 Base & Reinforcement 0.8% 2 Fencing 4.4% 11 Blasting 0.8% 2 Landscape Architectural Practice and Design 4.4% 11 Drill & Excavate 0.8% 2

Traffic Signals, Lighting, Fms 4.4% 11 Earthwork Design 0.8% 2 Archaeological or Historical Surveys 4.0% 10 Financial or Economic

Analysis 0.8% 2

Culverts 4.0% 10 Flagging, Traffic Control 0.8% 2 Graphic Design 4.0% 10 Grouting (highway) 0.8% 2 Landscaping, Irrigation 4.0% 10 Guardrail, End Treatments 0.8% 2

Minor Concrete Structures 4.0% 10 Permanent Pavement Marking, Striping 0.8% 2

Painting 4.0% 10 Precast Concrete 0.8% 2 Traffic Control 4.0% 10 Reinforcing Steel 0.8% 2

Trucking 4.0% 10 Road Repair, Pothole Filling, Resurfacing 0.8% 2

Water Lines, Sanitary Sewer 4.0% 10 Slab Jacking 0.8% 2 CAAD Services 3.6% 9 Standpipes 0.8% 2 Geotechnical Investigation 3.6% 9 Abutments 0.4% 1 Public Relations 3.6% 9 Crane 0.4% 1 Lighting System Installation & Electrical 3.2% 8 Drilled Shafts 0.4% 1

Quality Control 3.2% 8 Geotextile, Geogrid, Geocomposite Edge Drains 0.4% 1

Structural Steel 3.2% 8 Law Enforcement 0.4% 1 Asphalt Paving Supply 2.8% 7 Scaffolding 0.4% 1



Answer Options

Response Percent

Response Count

Answer Options

Response Percent

Response Count

Shotcrete, Channel Lining, Slope Paving 2.8% 7 Seal Coating 0.4% 1

Structural Concrete - Bridges, Box Culverts 2.8% 7 Tack, Fog Coat, Blotter -

Supply 0.4% 1

Contractor QC 2.4% 6 Treated Base, Subbase 0.4% 1 Drainage Design 2.4% 6 Underdrain, Edgedrain 0.4% 1 Earthwork, Excavating, Grading 2.4% 6 Attenuation Devices 0.0% 0 Pipe Culvert, Storm Drain 2.4% 6 Boring 0.0% 0 Quality Control 2.4% 6 Chain Link Cable Barrier 0.0% 0 Design Documentation 2.0% 5 Contingency 0.0% 0 Pipe - Roadway 2.0% 5 Jacking, Boring Pipe 0.0% 0 Right-of-Way Identification 2.0% 5 Median Cable Barrier 0.0% 0 Riprap, Gravel, Sand, Shoulder 2.0% 5 Rumble Strip 0.0% 0

Roadway Design and Survey 2.0% 5 Tack, Fog Coat, Blotter - Application 0.0% 0

Slope Stabilization 2.0% 5 Tack, Fog Coat, Blotter - Trucking 0.0% 0

Tree Removal 2.0% 5 Tarring 0.0% 0 Walls 2.0% 5 Trestles/Trusses 0.0% 0 Welding 2.0% 5 Wrecking 0.0% 0


Note that respondents could check all options that apply. Most DBEs (54%) reported more than one product or service. The 250 DBEs who responded to the question listed 705 qualified products and services, or an average of more than 2.8 products and services per DBE. Many of the respondents are in various phases of construction design and planning, rather than in the construction trades or providing construction products. Design and planning services include:

• Archaeological or Historical Surveys (4%)

• Architectural Services (2%) • Bridge Design (1%) • CAAD Services (4%) • Civil Engineering (10%) • Construction Survey and Layout (2%) • Consultant Services (various) (17%) • Design Documentation (2%) • Drainage Design (2%)

• Earthwork Design (1%) • Environmental Planning (6%) • Financial or Economic Analysis (1%) • Graphic Design (4%) • Landscape Architectural Practice and Design

(4%) • Public Relations (4%) • Roadway Design and Survey (2%) • Surveying (5%) • Traffic Engineering Study (2%)

The largest category of responses was Consultant Services (various), with 17% of all responses. The third-largest category was Civil Engineering (10%), Together, all of these pre-construction analysis, design and planning services make up 72% of the total responses. Moreover, these responses came from 106, or 42% of the 250 DBEs who responded to this question. The second-largest category was “None” (12%) meaning their products and services were not among the 106 construction-related products and services the questionnaire presented. Adding



the “None” responses to the preconstruction services, and subtracting from the total, just 46% of responding DBEs are in direct construction products and services. Among the construction trades, Electrical had the most, with 10% of the responses. The remainder of the “top ten” construction trades include: Concrete – Structural (bridges, embankments, etc.) (8%); Utilities – Communication & Electrical (7%); Concrete Barrier (6%); Construction Management (6%); Signs (6%); Utilities – Water & Sewer (6%); Concrete Cutting (6%); Curb, Gutter, Sidewalk, Driveways (5%); and Masonry (5%). All the rest of the categories were below 5% of the responses. Q.7. Which of the following pro-ducts and services do you offer for which you are NOT certified as a DBE to provide to ADOT contractors or consultants? Question 7 indicates whether the DBEs are actually certified as DBEs to deliver or perform all the products and services they can offer. Lack of certifications can affect the DBE participation goals that ADOT esta-blishes, and can affect the ability of DBEs to win contracts. Table 13 and Fig. 13 describe the responses. Due to space limitations, Fig. 13 reports only 35 categories. All other categories had only two or fewer responses, less than 1% of responding DBEs.



Table 13. Which of the following products and services do you offer for which you are NOT certified as a DBE to provide to ADOT contractors or consultants? (Please check all that apply).


Percent Response

Count Answer Options Response

Percent Response

Count

None 78.9% 195 Shotcrete, Channel Lining, Slope Paving 0.8% 2

Consultant Services (various) 4.9% 12 Structural Steel 0.8% 2 Dust Control 2.8% 7 Sweeping 0.8% 2 Earthwork, Excavating, Grading 2.8% 7 Treated Base, Subbase 0.8% 2

Utilities - Water & Sewer 2.8% 7 Welding 0.8% 2 Soil Stabilization 2.4% 6 Wrecking 0.8% 2 Clearing And Grubbing 2.0% 5 AC Milling 0.4% 1

Construction Management 2.0% 5 Archaeological or Historical Surveys 0.4% 1

Curb, Gutter, Sidewalk, Driveways 2.0% 5 Asphalt Paving Haul 0.4% 1

Demolition/Removal 2.0% 5 Boring 0.4% 1 Riprap, Gravel, Sand, Shoulder 2.0% 5 Concrete Barrier 0.4% 1 Road Repair, Pothole Filling, Resurfacing 2.0% 5 Drilled Shafts 0.4% 1

Slope Stabilization 2.0% 5 Earthwork Design 0.4% 1 Utilities - Communication & Electrical 2.0% 5 Embankment Curb, Spillways 0.4% 1

Aggregate Base 1.6% 4 Environmental Planning (water, air, flood, socioeconomic, etc.) 0.4% 1

Architectural Services 1.6% 4 Erosion Control, Seeding 0.4% 1 Bank Protection 1.6% 4 Flagging, Traffic Control 0.4% 1 Civil Engineering 1.6% 4 Guardrail, End Treatments 0.4% 1

Fencing 1.6% 4 Lighting System Installation & Electrical 0.4% 1

Graphic Design 1.6% 4 Precast Concrete 0.4% 1 Painting 1.6% 4 Scaffolding 0.4% 1

Public Relations 1.6% 4 Structural Concrete - Bridges, Box Culverts 0.4% 1

Signs 1.6% 4 Structural Plate Pipe 0.4% 1 Base & Reinforcement 1.2% 3 Tree Removal 0.4% 1 Construction Engineering 1.2% 3 Trucking 0.4% 1 Contractor QC 1.2% 3 Abutments 0.0% 0 Masonry 1.2% 3 Attenuation Devices 0.0% 0 Pipe Culvert, Storm Drain 1.2% 3 Bridge Design 0.0% 0 Quality Control 1.2% 3 Chain Link Cable Barrier 0.0% 0 Railing 1.2% 3 Contingency 0.0% 0 Surveying 1.2% 3 Crane 0.0% 0 Traffic Signals, Lighting, Fms 1.2% 3 Financial or Economic Analysis 0.0% 0

Underdrain, Edgedrain 1.2% 3 Geotextile, Geogrid, Geocomposite Edge Drains 0.0% 0

Walls 1.2% 3 Jacking, Boring Pipe 0.0% 0 Water Lines, Sanitary Sewer 1.2% 3 Law Enforcement 0.0% 0 Asphalt Paving Placement 0.8% 2 Median Cable Barrier 0.0% 0

Asphalt Paving Supply 0.8% 2 Permanent Pavement Marking, Striping 0.0% 0

Blasting 0.8% 2 Pipe - Roadway 0.0% 0




Percent Response

Count Answer Options Response

Percent Response

Count CAAD Services 0.8% 2 Pipe - Sanitary 0.0% 0 Concrete - Structural (bridges, embankments, etc.) 0.8% 2 Prestressing Concrete 0.0% 0

Concrete Cutting 0.8% 2 Quality Control 0.0% 0 Construction Survey & Layout 0.8% 2 Reinforcing Steel 0.0% 0 Culverts 0.8% 2 Right-of-Way Identification 0.0% 0 Design Documentation 0.8% 2 Roadway Design and Survey 0.0% 0 Drainage Design 0.8% 2 Rumble Strip 0.0% 0 Drill & Excavate 0.8% 2 Slab Jacking 0.0% 0 Electrical 0.8% 2 Standpipes 0.0% 0

Geotechnical Investigation 0.8% 2 Tack, Fog Coat, Blotter - Application 0.0% 0

Grouting (highway) 0.8% 2 Tack, Fog Coat, Blotter - Supply 0.0% 0 Landscape Architectural Practice and Design 0.8% 2 Tack, Fog Coat, Blotter -

Trucking 0.0% 0

Landscaping, Irrigation 0.8% 2 Tarring 0.0% 0 Minor Concrete Structures 0.8% 2 Traffic Control 0.0% 0 Removals 0.8% 2 Traffic Engineering Study 0.0% 0 Seal Coating 0.8% 2 Trestles/Trusses 0.0% 0


The greatest number of responses are “None.” While 195 DBEs gave this response, two also gave other responses, so 193 DBEs of the 247 who responded to this question (78%) reported they are actually certified as DBEs for all the products and services they offer. The second-largest category is Consultant Servi-ces (various), with responses from 12 DBEs. The remainder of the top five categories each have seven DBEs responding: Dust Control; Earth-work, Excavating, Grading; and Utilities – Water & Sewer. Soil Stabilization had six responses.



Q.8. If you checked services for which you are not DBE-Certified in the previous question, why are you not DBE-certified for those services? Fifty DBEs answered why they are not DBE certified for some of the products and services they offer. Table 14 and Fig. 14 summarize those responses. The most-frequent response is, “We added those services after we obtained our DBE certification,” reported by 15, or 30% of the responding DBEs. Also at 30% of responding DBEs is the “Other” response. Those responses are reported verbatim in Appendix D. Seven of these “Other” responses reported that the services they offer are not on the list, including: • Land use, non-motorized transportation planning, renewable energy and land use assessment

and entitlement, community engagement services. • Mechanical, electrical, plumbing and fire protection design services to architectural firms. • GIS; don't have past performance for welding (yet). • Decorative finishing: plaster, clay, murals and faux. The DBE list of trades doesn't seem

broad or specific enough. • Airfield electrical and NAVAIDS design, TERPS analysis, airfield marking design, etc. • Indoor air hazards (asbestos), geology, geo-petrography. • Janitorial or cleaning. Table 14. If you checked services for which you are not DBE-certified in the previous question, why are you not DBE-certified for those services? (Please check all that apply).

Answer Options Response Percent

Response Count

We added those services after we obtained our DBE certification 30.0% 15 Other (please describe) 30.0% 15 No one ever asked about these services before now 28.0% 14 We never applied for DBE certification for those services 26.0% 13 Our qualifying DBE owners are not licensed to provide those services 16.0% 8




Four of the “Other” respondents reported that the certifying agencies refused their certifications. “ADOT wouldn't certify because we had never done that for them. Doesn't make sense.”

(Pima County firm.) “The city only recognized one area to certify.” (Maricopa County firm.) “Don’t know why we were not DBE-certified for Construction Management, it was listed as

one of our primary activities on the application.” (Out-of-state firm.) “The City of Tucson…refused to certify my firm in the services…even though my ROC

license covers that scope of work.” (Pima County firm.) The remaining four responses related to circumstances associated with the individual firms. The third most-reported category is that “No one ever asked about these services before now”. Of these 14 DBEs, four also reported the next-highest response, “We never applied for DBE certification for those services” (13 responses). Eight responses reported that “Our qualifying DBE owners are not licensed to provide those services.” This situation arises, for example, when a female-owned DBE is licensed for some services, and her Anglo husband is licensed for other services, the firm is not DBE certified for the services that only the husband is licensed to perform. Certification regulations require that the women or minority-class owners who make up at least 51% of the owner-ship must also be able to provide all DBE-certified services for that firm. Q.9. Have you participated in any of these ADOT DBE Supportive Services activities? Question 9 measures how well DBEs take advantage of ADOT’s DBE Supportive Services programs. Table 15 and Fig. 15 summarize the results. The highest-frequency response is “None of these activities,” reported by 108 DBEs, though one also repor-ted attending some of the activities.

Table 15. Have you participated in any of these ADOT DBE Supportive Services activities? (Please check all that apply).


Percent Response

Count None of these activities 44.4% 108Regional conferences 30.0% 73DBE Expo 24.7% 60Working with ADOT 19.3% 47ADOT Academy for the Advancement of DBEs 17.3% 42

Task forces 14.8% 36Preparing to Prime 7.8% 19Other (please describe) 5.8% 14Technical assistance 4.5% 11




The 107 DBEs who did not attend any DBE-SS activities are 44% of the 243 who responded to this question. The highest-attended DBE-SS events are the regional conferences held each year in northern, central and southern Arizona, with 30% of respondents attending. Second is the DBE expo, with 25% of respondents. Third-high-est is the Working with ADOT pro-gram, attended by 20% of respon-dents. In last place is Technical Assis-tance, with just 5% of respondents reporting participation. Nearly 6% of respondents (14) answered “Other.” Their responses are reported verbatim in Appendix E. Of these, five reported attending training offered by other jurisdictions. Four reported attending other ADOT programs, such as certified payroll training, other ADOT meetings, or borrowed plans and specifications from DBE-SS. Two others are newly-certified, of which one is registered to attend the next regional conference. The 136 DBEs reporting that they did attend one or more events, reported attending 286 events in total, or 2.1 events per responding DBE. Table 16 and Fig. 16 show how many DBEs attended different numbers of events. The number of DBEs attending generally declines as the number of events increases. Over one in four DBEs attended at least one event; 12% attended two, and just three DBEs (1%) reported attending all seven event types. Q.10. Why have you not participated in any of the DBE Support Services activities? For DBEs who reported in Question 9 that they had attended no DBE-SS events, the survey asked them why they had not. Their responses are summarized in Table 17 and Fig. 17. The top answer is that they could not afford the time away from work, reported by 46 DBEs, or 43% of the 107 who responded to this question. A regional conference is a full-day event. Travel adds time and expenses. The second most-frequent response is, “We don’t have enough information about the programs,” given by 42 DBEs (39%).This response indicates that information emailed to DBEs is either insufficient to allow them to make a decision, or is ignored in their in-boxes.

Table 16. Distribution of Number of Event Types Attended


Response Count

1 Event Type 25.5% 62 2 Event Types 11.5% 28 3 Event Types 4.9% 12 4 Event Types 3.3% 8 5 Event Types 3.7% 9 6 Event Types 2.5% 6 7 Event Types 1.2% 3




Table 17. Why have you not participated in any of the DBE Support Services activities? (Please check all that apply).


Response Count

We can't afford the time away from work 43.0% 46 We don't have enough information about the programs 39.3% 42 The activities are too far away from us 34.6% 37 We can't afford the cost of the programs 23.4% 25 We don't know how to get involved 16.8% 18 Other (please describe) 13.1% 14 We have a disability that prevents us from participating 0.9% 1 We don't speak English well enough to participate 0.0% 0


The third most-frequent response is, “The activities are too far away from us.” Over half (51%) the DBEs reporting this response are from Southern Arizona, 22% are from Northern Arizona and 19% are from out-of-state. Just three respondents (8%) are from Central Arizona. This response also appears related to the most-frequent response, “We can’t afford the time away from work.” Of the 37 DBEs who said the activities are too far away, 20 (54%) also reported that they could not afford the time away from work. The fourth most-frequent response was “We can’t afford the cost of the programs,” reported by 23% of respondents. The regional conferences cost $50 per person, which includes two meals. The next most-frequent response was “We don’t know how to get involved,” reported by 17% of respondents This response appears to be related to the earlier response, “We don’t have enough information about the programs.” Of the 18 DBEs who reported they don’t know how to get involved, 11 also said they don’t have enough information. Over 13% of DBEs (14) reported “Other” responses, which are recorded verbatim in Appendix F. Half of these reports (7) indicated that the DBE’s offerings are not typically purchased by ADOT or its contractors: • “You don’t purchase chemicals for these jobs.” • “As far as I know DBE support services is not offered to General Contractors.” • “Current procurement process is not conducive to the development of SBEs [Small Business

Enterprises] and therefore an additional expense that is not profitable.”



• “Your work is transportation/ infrastructure - very little mechanical HVAC related.” • “Office equipment does not seem to be viable even though all contractors need these items.” • “Was told that we did not have priority. Construction firms were given first priority before

consulting.” • “It never seems as though ADOT needs our services (automotive glass replacement &

window film).” One comment singles out the administrative process: “It's not comprehensible. No confirmations or follow up to know if you're registered. Too confusing to figure out what the benefit of the support is.” Another is critical of the DBE-SS program: “Haven’t proved helpful; lot of programs are just for show.” Just one DBE reported that a disability prevents their participation. None said they don’t speak English well enough to participate. This answer may be affected by the fact that the survey and all communications regarding it were in English. Q.11. What additional DBE supportive services would you like ADOT to provide to DBEs? Just 76 DBEs responded to this question, even though it was on the same page as Q.9, “Have you participated in any of these ADOT DBE Supportive Services activities?” Appendix G presents the 76 answers verbatim. Ten DBEs’ comments related to how they can meet prime contractors or ADOT contracting officers, or how to do government contracting. These DBEs could likely benefit from the “speed dating” meetings with prime contractors that have been organized for some regional conferences. Seven DBEs commented on the need for bonding and insurance. They view bonding as a significant barrier to growth. Five comments requested some sort of regular email or website that shows all pending bid opportunities; one referenced Nevada as a best practice state. Four DBEs asked for additional training opportunities: how DBEs can market themselves to contractors; one-on-one help; general business training and OSHA training. Three DBEs wanted better information regarding audits: how to obtain audited overhead rates and how to present financial records in order to minimize audit time and staff costs. Lack of audited rates can reduce a DBE’s chance of being selected by a prime contractor, or delay execution of a federally-funded contract. Three DBEs asked for some type of mentoring program by prime contractors, helping to develop the DBEs to be more effective subcontractors. Two comments requested a way to track each contract in terms of the DBEs that received subcontracts and the level of compliance with DBE goals. Such transparency would allow DBEs to see which prime contractors are interested in using DBEs, and which are not.



Two DBEs requested training on accounting issues, such as tax returns and completing cost proposals, lobbying forms, certified payrolls, etc. The remainder of the responses generally related to special company circumstances, criticisms of the DBE program as a whole, or were non-responsive. Q.12. What are the top three challenges—or barriers to success—your company faces in today’s market? This question may help ADOT DBE-SS program develop training programs that address the highest needs of DBEs. The results are summarized in Table 18 and Fig. 18. Table 18. What are the top three challenges—or barriers to success—your company faces in today’s market? (Please check up to three boxes).


Response Count

Marketing: getting more work 47.1% 113 Meeting prime contractors and consultants 27.9% 67 Insurance and bonding 24.2% 58 Finding or recruiting good workers 23.3% 56 Estimating and bidding for work 21.7% 52 Job costing and cost controls 20.0% 48 Writing proposals or responding to requests for qualifications (professional services consultants) 18.3% 44

Other (please specify) 16.3% 39 Social media marketing: spreading the word about our company 14.2% 34 Website for our company 9.2% 22 Accounting or accounting system (QuickBooks or other) 7.9% 19 Computer systems – software 5.0% 12 Equipment reliability 3.3% 8 Safety: preventing accidents, incidents and injuries 2.5% 6 Computer systems – hardware 1.7% 4 Quality assurance: preventing mistakes 1.7% 4


The most frequent response was, “Marketing: getting more work,” cited by 47% of DBEs (113 of 240 who answered the question). This answer is no doubt more important to DBEs in this current period of very slow economic growth. With less private sector contracting, DBEs depend more on public sector contracting. In the relatively “boom” times prior to 2008, DBEs had less trouble getting work because construction was in high demand by all economic sectors. The second most-frequent response was, “Meeting prime contractors and consultants,” selected by 28% of respondents. This answer is consistent with the open-ended comments in the previous Question 11, where ten comments related to this issue.



The third most-frequent response was, “Insurance and bonding,” which 24 of respondents selected. This response is also consistent with the previous Question 11, where insurance and bonding were referenced by seven respondents. Over 23% of responding DBEs cited “Finding or recruiting good workers” among their top three challenges. This answer is surprising, given the high unemployment rate statewide. These DBEs were well-distributed ethnically and by gender, representing nearly every Arizona county, and none was from out-of-state. Fifth in the ranking is, “Estimating and bidding for work,” reported by 22% of DBEs. Of the 52 DBEs selecting this option, just 12 had ever attended a regional conference. The 2012 con-ferences included a panel discussion on estimating and bidding, featuring three large prime contractors. Similarly, 24 of these DBEs (46%) had never participated in any DBE-SS activities. “Estimating and bidding for work,” is also somewhat related to “Job costing and cost controls.” Of the 52 DBEs that selected “Estimating and bidding,” 16, or 31%, also selected “Job costing and cost controls.” An additional 32 DBEs selected “Job costing” for a total of 48. “Writing proposals or responding to requests for qualifications” was selected by 18% of respondents (44). Since this option was just for those DBEs in professional services consulting categories, it is a significant percentage. If the earlier estimate that 106 responding DBEs are in pre-construction analysis, design and planning services (see page 14), then 42% of those firms need help with writing proposals and responding to RFQs.



The next-highest response option was “Other,” selected by 39 DBEs. Those comments are reported verbatim in Appendix H. The number one issue raised in the “Other” comments related to financial management. Ten DBEs reported “cash flow” or “waiting to get paid” as one of their top three challenges. Eight DBEs referenced working capital, or the inability to get a bank loan. Lack of bank lending for small businesses is a well-documented issue in Arizona for a variety of reasons: With increased regulatory reform, banks face higher borrower qualification standards. With the “Great Recession” and subsequent slow recovery, capital assets that might serve as collateral have depreciated in value. The decline in home values has eliminated the possibility of a second mortgage for many small business owners. Reduced sales have limited the amount of accounts receivable that may be financed or factored. Deteriorating incomes have reduced credit ratings for many small families. Three DBEs referenced issues related to insurance or bonding. One in particular noted that prime contractors’ standard contracts do not have the same insurance requirements as ADOT, requiring a correction to the prime contract every time. The remaining comments raised individual company issues, or issues that were mentioned only once. The next most-frequent response was “Social media marketing: spreading the word about company,” reported by 34 DBEs (14%), followed by “Website for our company,” selected by 22 DBEs (9%). Just eight DBEs selected both of these responses. Q.13. Please provide feedback about ways ADOT's Disadvantaged Business Enterprises program could be improved. Just fifty DBEs responded to this last question, possibly because (a) they had already said everything they wanted to say in earlier comment boxes, or (b) they had “survey fatigue” and wanted the survey to end. Appendix I contains the verbatim comments from these DBEs. The great majority of the comments are on-point and contain very specific recommendations for improving ADOT’s DBE program. Every reader of this report is urged to go to Appendix I and read all of the comments. The authors considered highlighting the most valuable suggestions, but found that “the most valuable” would include about 70% of all the comments. Just eight of the comments had no concrete suggestions for improvement Six of the comments addressed making more information about the actual successful bids, including subcontractor bid amounts, the names of the DBE subcontractors who are part of the winning team, and periodic checks to make sure that work is actually performed by bidding DBE subcontractors. This information may be available currently, but it requires detailed research through the bid documents. Some of the comments appear to envision a simpler display of information through a web site. Five of the comments simply praised the program.



Two of the comments suggested a “mentor-protégé” program, where a prime contractor would take one or more DBEs “under their wing,” to help the DBE improve their ability to work with the mentor as a subcontractor. Three DBEs’ comments related to insurance and bonding. One suggested that if jobs were split into smaller pieces they may not require so much bonding. High bonding requirements effectively shut out many small businesses. A few DBEs complained: that compliance with the intent of the program may be evaded by prime contractors who seek DBE bids only to comply with the bidding requirements, but then do the work themselves; that prime contractors have no incentives to use DBEs; that lack of enforcement of hard goals makes the “whole process to be a fraud;” and that some people are allowed to abuse the system (referring to a DBE allegedly falsely claiming Native American ethnicity).



Issues and Recommendations Ninety DBEs reported that they had never worked on an ADOT or federally-funded local government project. Eleven of those DBEs do not provide products and services that ADOT contractors and consultants need. Of the remaining 79, over half (40) had never participated in any ADOT DBE Supportive Services activities. Further, 42 DBEs reported they don’t have enough information about DBE Supportive services activities, and 18 said they don’t know how to get involved. Future marketing materials should emphasize how participation in these activities will help DBEs get work, that participation is an investment in their business, rather than an expense. DBEs’ reported difficulties working with prime contractors and consultants may be an emerging problem. While 72% were very satisfied or satisfied working with their prime, over 17 percent (more than one in six) were dissatisfied or very dissatisfied. Prime contractors can be very demanding, focusing on on-time delivery and quality of work. Any failure to deliver work on time could delay the entire project, and be very costly to the prime contractor. Any rework requirement can also cause costly delays. Future DBE training programs might focus on project management to help DBEs ensure they do not contribute to delays and to show how important their part can be in the overall project schedule. DBEs also reported difficulties in their own ability to meet project requirements. Just 64% were very satisfied or satisfied, and 13% were dissatisfied or very dissatisfied. Dissatisfaction in this area can come from an attempt to overreach the DBE’s ability to deliver according to the specifications. While ambition and growth are admirable in small businesses, biting off more than the DBE can chew can bring significant problems, particularly related to cash flow, on-time delivery and work quality. Future DBE training programs might focus on financial management and using financial reports in decision-making, to help DBEs measure their ability to deliver enough quality products and services on-time, in terms of both financial and physical capacities. Of the 250 DBEs reporting the skills they are certified to provide,106, or 42% were in disciplines related to preconstruction analysis, design and planning. Most people tend to look at the DBE program as serving primarily construction trades, but over 2/5 of responding companies are in preconstruction fields. Based on various comments received, many of these firms do not see opportunities to participate in ADOT and federally-funded local government projects, because they perceive that large design firms are not necessarily held to the same DBE participation targets as prime construction contractors, and that large design firms tend to self-perform all the work. ADOT should examine its goal-setting process for preconstruction professional services, to ensure that DBEs in these fields have relevant participation opportunities. Further, several DBE comments indicated that they provide services that ADOT contractors need, such as office equipment and products, automotive replacement glass, and HVAC mecha-nical services, uniforms, etc. But these needs are related to contractors’ infrastructure, and are not typically part of a design or construction contract. These DBEs feel left out of the contracting process. ADOT should consider ways that prime contractors can claim credit for effective use of DBEs in their general and administrative (overhead) expenses, rather than solely in their direct design or construction expenses.



Only 30% of responding DBEs had ever attended a regional conference, citing as reasons why that they could not afford the time away from work (43%, they don’t know enough about the programs (39%), the activities are too far away (34%, the y can’t afford the cost (23%), they don’t know how to get involved (17%), or other reasons (13%). Yet DBEs also reported as significant barriers to the success of their companies some management skills that could be subject of training programs. ADOT should re-examine its regional conference s to emphasize more training activities addressing specific topics, such as: how to estimate and bid for work; job costing; financial management; effective accounting to obtain audited overhead rates; and social media marketing, among others. ADOT should also continue, and possibly expand, opportunities for DBEs to meet prime contractors and procurement officers.


Appendix A

Survey Questionnaire

ADOT DBE SurveyADOT DBE SurveyADOT DBE SurveyADOT DBE Survey

Thank you for participating in this 5minute survey of Arizona’s Disadvantaged Business Enterprises (DBEs). Your answers will help the Arizona Department of Transportation (ADOT) develop morefocused programs and services to support Arizona’s DBEs.

Your individual responses are completely confidential, and will be reported only in aggregate with nearly 1,000 other DBEs asked to participate in this survey.

Some questions are marked with an asterisk (*). These questions require an answer in order to progress through the survey.

Please respond to this survey by Monday, October 22. Maximum DBE participation is imperative to demonstrate DBE interest in federallyfunded projects at both the state and local levels. ADOT will base DBE subcontracting goal calculations in part on the number of participants in this survey.

In order to move through this survey, please use the following navigation buttons:

l Click the "Next" button to continue to the next page. l Click the "Prev" button to return to the previous page. l Click the "Exit this survey" button (top right) if you need to exit the survey. l Click the "Done" button to submit your survey at the end.

Are you interested in working on ADOT or federallyfunded local government projects as a subcontractor or professional services consultant?

Interest in ADOT projects.

Yes nmlkj

No nmlkj

Other

Owner

Typewritten Text

Note: OBO DBE-SS logo here at top of every page.

Owner

Typewritten Text

If "No," skip to page 13 (see page numbers below right).


Have you ever worked on an ADOT or federallyfunded local government project?

ADOT project work history

Yes nmlkj

No nmlkj

Other

Owner

Typewritten Text

If "Yes" skip to p. 4


If you have never worked on an ADOT or federallyfunded local government project, please tell us why. (Please check all that apply).

Why no ADOT project history?

We're not interested in working on ADOT or federallyfunded local government projects gfedc

We don’t know how to estimate a bid gfedc

We bid on projects but haven’t won yet gfedc

We don’t provide products or services that contractors or consultants need gfedc

We don’t know any ADOT prime contractors or consultants gfedc

It's too hard to work with ADOT prime contractors or consultants gfedc

We can’t meet bonding/insurance requirements gfedc

We don’t have capacity to meet project requirements gfedc

No projects are in our service area gfedc

ADOT and federallyfunded local government projects are not profitable enough for us to participate gfedc

Other (please describe)

gfedcOther

Owner

Typewritten Text

If "not interested," skip to page 13.

Owner

Typewritten Text

Note: After this question, skip to page 5.


Think about your most recent work on an ADOT or federallyfunded local government project. How satisfied were you with:

Would you like to work with that same prime contractor or consultant again?

ADOT project satisfaction

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Clarity of bid requirements?

nmlkj nmlkj nmlkj nmlkj nmlkj

Working with the prime contractor or consultant?


My ability to meet the requirements?


Speed of payment from prime contractor or consultant?


Profitability of the project?


Yes nmlkj

No nmlkj


Which of the following products and services are you certified as a DBE to provide to ADOT contractors or consultants? (Please check all that apply).

DBEcertified services and trades

*

None gfedc

Abutments gfedc

AC Milling gfedc

Aggregate Base gfedc

Archaeological or Historical Surveys gfedc

Architectural Services gfedc

Asphalt Paving Haul gfedc

Asphalt Paving Placement gfedc

Asphalt Paving Supply gfedc

Attenuation Devices gfedc

Bank Protection gfedc

Base & Reinforcement gfedc

Blasting gfedc

Boring gfedc

Bridge Design gfedc

CAAD Services gfedc

Chain Link Cable Barrier gfedc

Civil Engineering gfedc

Clearing And Grubbing gfedc

Concrete Structural (bridges, embankments, etc.) gfedc

Concrete Barrier gfedc

Concrete Cutting gfedc

Construction Engineering gfedc

Construction Management gfedc

Construction Survey & Layout gfedc

Consultant Services (various) gfedc

Contingency gfedc

Law Enforcement gfedc

Lighting System Installation & Electrical gfedc

Masonry gfedc

Median Cable Barrier gfedc

Minor Concrete Structures gfedc

Painting gfedc

Permanent Pavement Marking, Striping gfedc

Pipe Roadway gfedc

Pipe Sanitary gfedc

Pipe Culvert, Storm Drain gfedc

Precast Concrete gfedc

Prestressing Concrete gfedc

Public Relations gfedc

Quality Control gfedc


Railing gfedc

Reinforcing Steel gfedc

Removals gfedc

RightofWay Identification gfedc

Riprap, Gravel, Sand, Shoulder gfedc

Road Repair, Pothole Filling, Resurfacing gfedc

Roadway Design and Survey gfedc

Rumble Strip gfedc

Scaffolding gfedc

Seal Coating gfedc

Shotcrete, Channel Lining, Slope Paving gfedc

Signs gfedc

Other

Other


Contractor QC gfedc

Crane gfedc

Culverts gfedc

Curb, Gutter, Sidewalk, Driveways gfedc

Demolition/Removal gfedc

Design Documentation gfedc

Drainage Design gfedc

Drill & Excavate gfedc

Drilled Shafts gfedc

Dust Control gfedc

Earthwork Design gfedc

Earthwork, Excavating, Grading gfedc

Electrical gfedc

Embankment Curb, Spillways gfedc

Environmental Planning (water, air, flood, socioeconomic, etc.) gfedc

Erosion Control, Seeding gfedc

Fencing gfedc

Financial or Economic Analysis gfedc

Flagging, Traffic Control gfedc

Geotechnical Investigation gfedc

Geotextile, Geogrid, Geocomposite Edge Drains gfedc

Graphic Design gfedc

Grouting (highway) gfedc

Guardrail, End Treatments gfedc

Jacking, Boring Pipe gfedc

Landscape Architectural Practice and Design gfedc

Landscaping, Irrigation gfedc

Slab Jacking gfedc

Slope Stabilization gfedc

Soil Stabilization gfedc

Standpipes gfedc

Structural Concrete Bridges, Box Culverts gfedc

Structural Plate Pipe gfedc

Structural Steel gfedc

Surveying gfedc

Sweeping gfedc

Tack, Fog Coat, Blotter Application gfedc

Tack, Fog Coat, Blotter Supply gfedc

Tack, Fog Coat, Blotter Trucking gfedc

Tarring gfedc

Traffic Control gfedc

Traffic Engineering Study gfedc

Traffic Signals, Lighting, Fms gfedc

Treated Base, Subbase gfedc

Tree Removal gfedc

Trestles/Trusses gfedc

Trucking gfedc

Underdrain, Edgedrain gfedc

Utilities Communication & Electrical gfedc

Utilities Water & Sewer gfedc

Walls gfedc

Water Lines, Sanitary Sewer gfedc

Welding gfedc

Wrecking gfedc

Owner

Typewritten Text

Note: Continuation of list from previous page. In real survey, entire list appears on one screen.


Which of the following products and services do you offer for which you are NOT certified as a DBE to provide to ADOT contractors or consultants? (Please check all that apply).

Other services and trades offered, but not DBEcertified

*

None gfedc

Abutments gfedc

AC Milling gfedc

Aggregate Base gfedc

Archaeological or Historical Surveys gfedc

Architectural Services gfedc

Asphalt Paving Haul gfedc

Asphalt Paving Placement gfedc

Asphalt Paving Supply gfedc

Attenuation Devices gfedc

Bank Protection gfedc

Base & Reinforcement gfedc

Blasting gfedc

Boring gfedc

Bridge Design gfedc

CAAD Services gfedc

Chain Link Cable Barrier gfedc

Civil Engineering gfedc

Clearing And Grubbing gfedc

Concrete Structural (bridges, embankments, etc.) gfedc

Concrete Barrier gfedc

Concrete Cutting gfedc

Construction Engineering gfedc

Construction Management gfedc

Construction Survey & Layout gfedc

Consultant Services (various) gfedc

Law Enforcement gfedc

Lighting System Installation & Electrical gfedc

Masonry gfedc

Median Cable Barrier gfedc

Minor Concrete Structures gfedc

Painting gfedc

Permanent Pavement Marking, Striping gfedc

Pipe Roadway gfedc

Pipe Sanitary gfedc

Pipe Culvert, Storm Drain gfedc

Precast Concrete gfedc

Prestressing Concrete gfedc

Public Relations gfedc



Railing gfedc

Reinforcing Steel gfedc

Removals gfedc

RightofWay Identification gfedc

Riprap, Gravel, Sand, Shoulder gfedc

Road Repair, Pothole Filling, Resurfacing gfedc

Roadway Design and Survey gfedc

Rumble Strip gfedc

Scaffolding gfedc

Seal Coating gfedc

Shotcrete, Channel Lining, Slope Paving gfedc

Owner

Typewritten Text

If "None," go to page 9; otherwise skip to page 10.


Contingency gfedc

Contractor QC gfedc

Crane gfedc

Culverts gfedc

Curb, Gutter, Sidewalk, Driveways gfedc

Demolition/Removal gfedc

Design Documentation gfedc

Drainage Design gfedc

Drill & Excavate gfedc

Drilled Shafts gfedc

Dust Control gfedc

Earthwork Design gfedc

Earthwork, Excavating, Grading gfedc

Electrical gfedc

Embankment Curb, Spillways gfedc

Environmental Planning (water, air, flood, socioeconomic, etc.) gfedc

Erosion Control, Seeding gfedc

Fencing gfedc

Financial or Economic Analysis gfedc

Flagging, Traffic Control gfedc

Geotechnical Investigation gfedc

Geotextile, Geogrid, Geocomposite Edge Drains gfedc

Graphic Design gfedc

Grouting (highway) gfedc

Guardrail, End Treatments gfedc

Jacking, Boring Pipe gfedc

Landscape Architectural Practice and Design gfedc

Landscaping, Irrigation gfedc

Signs gfedc

Slab Jacking gfedc

Slope Stabilization gfedc

Soil Stabilization gfedc

Standpipes gfedc

Structural Concrete Bridges, Box Culverts gfedc

Structural Plate Pipe gfedc

Structural Steel gfedc

Surveying gfedc

Sweeping gfedc

Tack, Fog Coat, Blotter Application gfedc

Tack, Fog Coat, Blotter Supply gfedc

Tack, Fog Coat, Blotter Trucking gfedc

Tarring gfedc

Traffic Control gfedc

Traffic Engineering Study gfedc

Traffic Signals, Lighting, Fms gfedc

Treated Base, Subbase gfedc

Tree Removal gfedc

Trestles/Trusses gfedc

Trucking gfedc

Underdrain, Edgedrain gfedc

Utilities Communication & Electrical gfedc

Utilities Water & Sewer gfedc

Walls gfedc

Water Lines, Sanitary Sewer gfedc

Welding gfedc

Wrecking gfedc

Owner

Typewritten Text

Note: Continuation of list from previous page. In real survey, entire list appears on one screen.


If you checked services for which you are not DBEcertified in the previous question, why are you not DBEcertified for those services? (Please check all that apply).

Adding services to DBE certification

We added those services after we obtained our DBE certification gfedc

We never applied for DBE certification for those services gfedc

Our qualifying DBE owners are not licensed to provide those services gfedc

No one ever asked about these services before now gfedc


gfedc


Have you participated in any of these ADOT DBE Supportive Services activities? (Please check all that apply).

What additional DBE supportive services would you like ADOT to provide to DBEs?

Supportive Services activities

55

66

None of these activities gfedc

ADOT Academy for the Advancement of DBEs gfedc

DBE Expo gfedc

Preparing to Prime gfedc

Regional conferences gfedc

Task forces gfedc

Technical assistance gfedc

Working with ADOT gfedc


gfedc

Owner

Typewritten Text

If "None of these activities," go to page 11; otherwise skip to page 12


Why have you not participated in any of the DBE Support Services activities? (Please check all that apply).

Reasons for not participating in Supportive Services activities

The activities are too far away from us gfedc

We can't afford the time away from work gfedc

We can't afford the cost of the programs gfedc

We don't have enough information about the programs gfedc

We don't know how to get involved gfedc

We don't speak English well enough to participate gfedc

We have a disability that prevents us from participating gfedc


gfedc


What are the top three challenges—or barriers to success—your company faces in today’s market? (Please check up to three boxes).

Please provide feedback about ways ADOT's Disadvantaged Business Enterprises program could be improved.

Technical assistance needs

55

66

Accounting or accounting system (QuickBooks or other) gfedc

Computer systems – hardware gfedc

Computer systems – software gfedc

Equipment reliability gfedc

Job costing and cost controls gfedc

Estimating and bidding for work gfedc

Writing proposals or responding to requests for qualifications (professional services consultants) gfedc

Finding or recruiting good workers gfedc

Insurance and bonding gfedc

Marketing: getting more work gfedc

Meeting prime contractors and consultants gfedc

Quality assurance: preventing mistakes gfedc

Safety: preventing accidents, incidents and injuries gfedc

Social media marketing: spreading the word about our company gfedc

Website for our company gfedc

Other (please specify)

gfedc

Owner

Typewritten Text

Now jump to page 14.


If you are not interested in working on ADOT or federallyfunded local government projects, please tell us why. (Please check all that apply).

Why no interest in ADOT projects?

We don’t provide products or services that contractors or consultants need gfedc

It's too hard to work with prime contractors or consultants gfedc

Payment comes too slowly gfedc

ADOT projects are not profitable enough for us gfedc

Other (please specify)

gfedc


Thank you for participating in this survey!

Your answers will help ADOT create better opportunities for Arizona's Disadvantaged Business Enterprises.

For more information, please contact the ADOT DBE Supportive Services program by phone at (602) 7127761, by email at [email protected] or online at www.azdot.gov/Inside_ADOT/CRO/DBEP.asp.

THANK YOU!


Appendices B through I

“Other” Responses to Questions and Responses to Open-Ended Questions

Note: These comments have been edited for capitalization, punctuation and obvious misspellings only.

Explanatory comments are [bracketed]. Otherwise they are exactly as written by responding DBEs.



Appendix B Q2. If you are not interested in working on ADOT or

federally-funded local government projects, please tell us why. This is General Contracting firm. ADOT is generally not interested in using DBEs as anything other than a subcontracting company for majority owned firms. How does that mind set coincide with the precepts of the DBE program? ADOT looks for much larger companies My company is too small of a company and can't compete



Appendix C Q3. If you have never worked on an ADOT or

federally-funded local government project, please tell us why. We are signatory to The IBEW LU 640 and it's hard to be low bidder if the project isn’t Davis Bacon. We sell chemicals for ADOT to use; we do not apply chemicals. Running Construction is and is better suited to act as a General Contractor. Scale of scope exceeds our capacity. Primes not able to parcel at time of bid. We are not able to build team of DBEs to provide joint bid to meet scope. We do asphalt paving and the generals do not want to sub this out. As a broker it’s hard to win bid against larger printing companies. I'm a reseller. We provide professional architectural services, including construction administration, but have not found any ADOT opportunities for our services. My firm has submitted qualifications to prime consultants, however, the prime consultant was not selected by ADOT. Due to current economic environment and highly competed bids by prequalified large business, small business are being force into subcontracts that are not profitable and/or at a loss. These issues are putting small business out of business. We’re on some on-calls where no project has come up yet, and have a hard time being considered by primes since we are relatively new. Waiting for a Prime to contact me under my NAICS codes. We sell copiers printers and MFPs [multi-function printers]; if there is a fit for us please let us know. We would be happy to. We are a low risk office products and services provider. We can provide next day free delivery to any job site in the Phoenix Metro Area. We can deliver 2nd day to any job site statewide. Most of the professional services consulting does not have a DBE requirement. We just got certified as DBE and are interested to work with ADOT. The men don't want to work with WOMEN, just DBE MEN, I’ve been a DBE since 2000.



None of the invitations to bid that I receive seem to be relevant to what I do...though I believe opportunities do exist for me. Most projects do not include my scope of work; provide and/or install hollow metal frames, hm/wood doors, and finish hardware. Hoping to work as a sub to a prime firm. We are a new company and just starting to bid on projects that fit our capabilities. Most of the projects do not pertain to our field. We've tried teaming many times with other DPs – the funds that make it to our service area aren't tracked to ensure DBE compliance so there is little or no motivation for primes to include us on their team. We're recently certified and working to build a relationship with ADOT primes. We don't receive emails showing when jobs are posted, we need to be better at looking at the site. No hard participation goals so a waste of time. I started the company early this year and i am pleased to say that i am in the process of getting my scope and fee approved by ADOT for a substantially large project. Small company and can only travel w/in 50 miles of Flagstaff, AZ. I don't know if our contractors are ADOT Prime contractors, but to the best of my knowledge, we have not been invited to bid ADOT projects. We cannot qualify for the prime contractor qualification requirement. I have not work with ADOT. Yet. As a consultant, we don't provide services specific to transportation. We provide project management and other services but they don't easily translate to ADOT's needs. And other consultants are not looking to partner with other consultants. I'm very interested in bidding projects but do not know of upcoming projects. How do I find out? We have not seen any projects requiring our specialty (uniforms). Good ole boys don't want to hire a woman owner-operator, even when I bid a lower price. Just got our certification.



Appendix D Q8. If you checked services for which you are not DBE-certified in the previous question, why are you not DBE-certified for those services?

We don't market these services. We offer them if requested by current clients. Do not know how they might be applied to federal projects, how to get started. Are skills developed enough to be marketable to large projects. I provide land use, non-motorized transportation planning, renewable energy and land use assessment and entitlement, community engagement services. My firm provides mechanical, electrical, plumbing and fire protection design services to architectural firms. ADOT wouldn't certify because we had never done that for them. Doesn't make sense. I also do GIS which is not on the DBE list; don't have past performance as a company for welding (yet). The city only recognized one area to certify. None of those services describe my actual license which is decorative finishing. I do a lot of plaster, clay, murals and faux. I believe ADOT does use these things periodically, and though other categories I marked come into play in what I do, they are not areas “per se” that I am certified in. In other words, the DBE list of trades doesn't seem broad or specific enough to target the need to me when it does arise. Until recently (3 Oct 12) I was not the QP [qualifying party] for the license for the scopes added in the previous page, I now am the QP and am ready to shine as a go-to sub. Don't know why we were not DBE-certified for Construction Management, it was listed as one of our primary activities on the application. Our specialty is airfield electrical and NAVAIDS design, TERPS analysis, airfield marking design, etc. The City of Tucson employee that handled my DBE app refused to certify my firm in the services in question even though my ROC license covers that scope of work. I provided these services with another business I previously co-owned. No real categories for indoor air hazards (asbestos), geology, geo-petrography Janitorial or cleaning is not on the list, and the questionnaire doesn't give me any other options to check.



Appendix E Q9. Have you participated in any of these

ADOT DBE Supportive Services activities? Attended City of Phoenix workshops concerning SBE and DBE. Registered to attend Southern Arizona Regional Conference here in Tucson. ADOT - Certified Payroll Class. Not in your state. When I inquired about these offerings I was told that they are geared towards construction. I attended an event at Sky Harbor to seek opportunity on the Sky Train project. It was a wasted day as no one (even at the event) had an idea of whether the massive plan file had anything relevant to my trade. Meet and greets, speed networking. ADOT Certified Payroll Work. Attended a class on dust control. Attend all outside agency meetings where ADOT speakers are discussing requirements or upcoming work such as ACEC Liason Meeting. Classes years back. Borrow plans & specs from DBE Supportive Services offices. OSHA training. Newly-certified DBE.



Appendix F Q10. Why have you not participated in any of the

DBE Support Services activities? It's futile: ADOT contracts always require a higher, more expensive level of insurance than I can carry. You don’t purchase chemicals for these jobs. As far as I know DBE support services is not offered to General Contractors. It's not comprehensible. No confirmations or follow up to know if you're registered. Too confusing to figure out what the benefit of the support is. Current procurement process is not conducive to the development of SBEs and therefore an additional expense that is not profitable. Your work is transportation/ infrastructure - very little mechanical HVAC related. We are new to DBE. Office equipment does not seem to be viable even though all contractors need these items. Was told that we did not have priority. Construction firms were given first priority before consulting. It never seems as though ADOT needs our services (automotive glass replacement & window film). I have been certified since 1993 and pretty knowledgeable. I would probably learn something (I always do at any event) but could also teach a lot of the courses. I am semi-retired so the return is not financially enough to cover the financial cost of participation. Have had a busy year with work and some family illness. I am going to participate in future programs. We need to have more NAICS codes added to our DBE qualifications. Haven't proved helpful; lot of programs are just for show.



Appendix. G Q11. What additional DBE supportive services

would you like ADOT to provide to DBEs? Not sure at this time. Actual vetting of who really is a DBE. As a Mexican American, I am angered by Anglos who are making a mockery of the process by claiming to be Cherokee or some other tribe and taking work away from REAL DBEs. Look J2 Engineering and Design. If [NAME REDACTED] is Cherokee I am Swedish! Continuity. A better understanding of how to connect with hiring agents (within ADOT, other government agencies, outside primes, etc.) who require ongoing services which may not require being sent out for bid (smaller scale opportunities). Purchase industrial chemicals. Sub-tier contracting education. I would like to qualify for DBE as a General Contractor. How to do federal and government contracting. I was shocked to learn that the EEO office in Tucson is NOT aware of or is participating in the DBE conference for Tucson? How does that make sense and how is that beneficial? I do not feel my DBE certification has made one difference in the growth of my company. I have not received one job from it. The primes ALWAYS go with low bid and never break up the bid packages so smaller DBE's get a chance to perform on bigger projects. My question is, who really is checking the primes? Help us to align with Tier 1 vendors and assign a DBE requirement for large contracts. Especially in the IT Network space. Counseling on how to re-niche skills. Have workshops in Flagstaff. OH Audit & Project Audit Support: there needs to be a “reasonable” standard established for DBEs. Audits should not be allowed for 12-year-time-frames that consume over 120 hours of the DBE's staff time. Change order process. Bonding. Funding and bid bonds.



I am actually not aware of any supportive services offered through ADOT. The only small business support services we use are through SBA or GSA. Most of our work is through GSA. We have received very little from ADOT. Provide incentives for smaller businesses to compete with larger ones in the bid process or create set-asides. I found your emails re: ADOT Academy really confusing. I don't know if I ever got registered, and never got a confirmation. Estimating ADOT projects. Individual design structural projects. More work; more subcontracting jobs. Available DBE jobs. Continue to develop strategies and ideals that increases inclusion of all firms that want to support ADOT. How to meet some of these contracting officers so we can market ourselves to them. Small projects so DBEs could bid as Prime. Small companies don't have the bonding capacity that large businesses do. That is what helps a DBE to grow their company to be able to bid as a prime. Because I deal with the people and process side of the work, some leads to work with the companies for their greater efficiency. Increase utilization requirements and include bid line item for development of DBE's as a fixed cost to all bidders, i.e. 1 LS $10,000, $20,000, etc. based on engineers estimate. Currently, there is not an incentive for large prime contractors to assist and utilize SBEs [Small Business Enterprises] that would be mutually profitable. These seem to be enough. I would like to find out which DBE subs are utilized/listed for each prime bid submitted (ftp site?). Although I have an idea which trades may be used for any particular project depending on the nature of the work proposed and the primes bidding the projects. We have an idea which way the sub bid will swing. Primes do not use our numbers, they just get our cert sign off for good faith effort...yet never use our numbers.



On your list of services, I did not see Mechanical contractor or HVAC; Ductwork; piping, etc. Occasionally there is a building associated with the ADOT work. Help with audit – some primes are not interested when they find out that we don't have an audited billing rate, because they say it will delay the contract. Add a code for GIS (geographic information services) or mapping. Info on how a DBE certified technical/support temp staffing company utilize their certification. Office equipment should be included as viable service provided. Meeting with contracting officers who have awards that need to be filled and only DBEs are there to bid. When professional services are requested by ADOT, provide a list of professional service DBE's to prime contractors for consideration to include within their proposal. Bid information. We are willing to relocate to AZ state once we are sure we can get some business as DBE certified firm. Where to go and help in BONDING. If the goals have been met, what website do we look it up? Mentor protégé program. Better tailoring to specialized businesses like mine. I believe opportunities exist but the system isn't matching us up. In my case, it wastes time on both sides. Find a way to help underwrite bonding on projects under 2 million for small companies with lower equity positions within their company. Construction of new facilities or remodel. N/A. Printing. I would like ADOT to track federal funding to their recipients to ensure compliance at the local level. Emails to inform about upcoming Supportive Services activities. More support for ADR type services.



Offering free or reduced courses in Section 106. Weekly emails about project postings like Nevada would be so helpful, with a link to that job. More info on these Support Service activities would be great. Of course this whole exercise is a pile of horseshit, since there are no hard goals to use DBE contractors, and all the generals do is send an email or letter to a DBE and if one is suckered into actually estimating a job, they just use that information or response to say they did their due diligence to ask for quotes. I've been a concrete contractor since 1996 and never had an opportunity to work on an ADOT project. ADOT is doing more than enough to help consultants learn how to obtain work with ADOT and its major consultants. Less time and effort on compiling data, enter this in this system, enter this in another system, print this off, email and mail. Spend more time and effort into getting contracts and amendments processed. Delay to a small company can be a problem. Mentor program/workshop whereby DBE vendors are set up with general contractors with the intent to be a working mentor. Overhead calculation assistance for audit. Now that DBE's have been able to attain some work, the process of organizing the GL in a way that works for ADOT can be difficult to understand and a very daunting task. Since the ability to be profitable on ADOT work depends on an accurate reflection of the DBE's overhead expense, this would be a value to those who have not been through the process or who need to refine their current GL to make it better fit what the ADOT auditors would like to see. More training classes – one-on-one for entry level companies. Janitorial and cleaning services. Help with insurance requirements. Help with education for new areas of construction. As a DBE consultant for airports, I see the 2 big areas are find and certify all who are eligible (tons of eligible businesses not certified) and hit them hard with all kinds of reality checks: insurance, bonding, financial stability – be able to survive until you're paid – remember retainage, learn a special niche – like airports, get out & market – they won't come to you, start small – especially if you want to be a prime; join trade associations, pay attention to details, work efficiently with a team (prime, sub, other subs) – primes will ask you back if you do, don't lie about what you can do – that blows efficiency, money and the chance to work with someone again, go how to find the RFPs and work the Pre-Bid Conferences, provide competitive pricing-DBE certification gets you in the door – the rest is up to them to prove. ADOT Academy for the advancement of DBE. Timely notification of airport design RFQs.



None at this time. Cutting Edge Sport Floors is a specialty contractor for sports flooring. I appreciate all services. I would like to receive by e-mail notification the activities listed above. General business training (basic business principles to further entity such accounting, business plan development, strategic planning, marketing concepts, etc.). How to show our reprographic services to primes and other subs and vendors. Although things have improved significantly, we could use additional improvement on uniform detailed instructions for completing cost proposals, lobbying forms, certified payrolls, etc., because the corrections that vary from contract to contract waste everyone’s time. The instructions provided on the lobbying form, for example, are not detailed enough. When we follow those we are requested to revise and leave certain boxes blank. We should be told at the outset whether to put Negotiated or Provisional in front of Overhead—it shouldn't have to be a correction. The template for the Cost Proposal has Derivation in the title; removing that word was a correction that required resubmittal of the entire cost proposal. I would like assistance in getting paid within 90 days of completing my work. I can only finance small jobs because waiting to get paid ties up my working capital. All of the other services I checked. I have enough qualifying experience in these categories. More technical qualified (company) to assist us DBEs on filling taxes reports so we are in compliance with federal and state taxes. This has been a problems to us very small companies who cannot afford a regular tax or bookkeeper. More educations for us in which I pretty much appreciate due to I have learned so much from your classes. Bonding assistance. No. Not required. Like to have a job! Whoever sends all the emails, either do what you're going to do, or don’t send me the emails. I provide all the information, and still haven't gotten one job. OSHA training was great. Would like to see that again. Would send more people to that training. Send bids our way. No.



Appendix H Q12. What are the top three challenges—or barriers to

success—your company faces in today’s market? Some GC’s require financials and proof that you can bond. Cash Flow – getting paid in a timely manner so we can make payroll every 2 weeks Managing cash flow. Anglos posing as DBEs and taking work away from REAL DBEs. Again a level playing field. Funding a good sized project while waiting to get paid. Also, prevailing wage is completely ridiculous, it's more than twice what a journeyman would normally get paid. High cost of Professional Liability coverage to meet ADOT contract standards. Cash flow. The single greatest challenge in recent years has been dealing with all of the audit requirements and the extensive time involved. For a small business, this has become an immense burden. Developing internal processes in growing company to guarantee quality of service. Project management. Economy and industry diminished. Large companies undercutting practical trade bidding practices taking smaller sized jobs. Coupled with very limited DBE jobs available in our industry and low % where our trade is needed. Interfacing with ADOT personnel to develop similar relationships that prime consultants have with ADOT personnel. Capital requirements and receipt of profitable contracts. Delayed projects due to ADOT funding cuts. Identification of Concrete Pumping as its own component of ADOT work. Today, this service we provide is considered part of structural concrete – bridges, culverts, barriers, etc. Since we don't bid on the concrete construction, we have to wait to see who gets the bid to assure we have a bid in with that contractor. Sometimes we have a bid in with the contractor awarded the contract and sometimes not. If is a general from out of town who we normally don't do business with, they usually bring their own concrete pumping firm. Call me for more details.



Geography is the main barrier to our working in Arizona. Getting relevant bidding opportunities channeled to me. Also, it is difficult time wise to keep up with my business while researching why this system doesn't work and being more proactive to seek out and bid the types of projects that will do the most to advance my business in the direction I want it to go. Access to capital The biggest challenge is that dollars are funneled to the local level yet those contracts are still given to firms outside of our community/service area when the skills and competence are here. For example, the District Minor contract for the Flagstaff Region was awarded to firms >130 miles away when there were a number of qualified firms that made submittals on the contract. Low or no profit margins. Cost of Employer/Employee Taxes AND of skilled, knowledgeable support/admin staff. The market is changing—my little niche is being provided by the large national engineering firms as a loss leader, providing a sponsor with the entire package. I usually contracted directly with the sponsor or worked with regional firms as a sub. My problem to solve as I am a trained statistician; not an engineer.... In these days of instant everything, time to do a superior quality job. Contract execution, on-time payment, withholding of retention, cash flow. Access to working capital (bank loan). Working capital in the company. Primes should revise their standard contracts to agree with ADOT insurance requirements so it doesn't have to be fixed every time. Waiting to get paid for work that was done ties up most of my working capital. I have had to settle for less money than was the contract amount. Also being Mexican I have had companies tell me I need to charge less to get the work. I would say almost all of the above, we small companies (the reason we are small because we are poor and lack of capital) are facing the same problems; only companies that can afford to hire services for their office have the clean books and records for all of the above, few of my friends are facing the same problems as I do. Please hear us the true small DBEs. Working capital. Working capital.



Economy: cold calls are down. Hard to make a large profit; always someone willing to do less-thorough work for less money. Primes need to pay for expertise to stay out of jail. Complying with ADOT's payroll's new form. Getting paid; retention release. No issues with any of the above. DBE should be given more preference. Limit the ability for smaller business to qualify. Size of contracts. Not enough work for small DBE.



Appendix I Q13. Please provide feedback about ways ADOT's

Disadvantaged Business Enterprises program could be improved. When percentages are needed on a job – percentages per trade would help. We are new to program and find that most GCs go with landscaping to meet minimum requirements. This leaves the other trades out. Consistent event and program dates could help DBEs plan to attend. See previous comments. It's unfortunate that some people are being allowed to abuse the system. It's a joke! Solicitations, and distribution of same, could also support professional services in addition to construction. Formulate committees for specialized issues (cash flow, software, etc.) I like the longer certification period, also being able to handle it at the same time as our SBE certification. Make sure prime contractor don’t use same sub on every project. Assistance with prequalification paperwork. Not everyone is in construction, it would be helpful if there were more “manufacturer” categories for DBE's. It has been a fantastic program that helped us stay moving, we have just fallen short. The program needs unquestionable support from the highest levels at ADOT. Every effort must be made to secure partnership with AGC and ACEC member buy-in on the program. We really believe that the program is on the right track, but it would be nice to be able to conference call or Skype in to the DBE Design Group meetings which are always held in Phoenix. Release the information, who are the GCs using for DBE jobs at time of bidding? Seminars geared toward working with ADOT’s Audit Department and adhering to what seem to be shifting focuses on documentation, requirements for travel reimbursements, etc. More understandable. Have no experience in bidding ADOT projects. No Contractor has taken us under their wing.



I have tried calling to meet with someone one-on-one on a few occasions and never got a callback. It would be nice to be able to talk to someone soon that could point us in the right direction. Haven’t seen ADOT DBEs at work in the past. Good to see that they intend to meet the goals. Notes above. More of our trade on the job with higher % DBE requirements. Encourage more mentor-protégé relationships. Benchmark other states for best practices and encourage utilization of all firms. A lot of small companies can’t afford bonding so why would you put a bond on some of the jobs that are out there. Small business can’t get that job. Smaller projects. The Government helps DBEs by putting smaller projects out $5M or less and they are set-asides just for DBE. ADOT puts us at the mercy of Large Business and their practices. I hear it all the time from large prime contractors that they can not find qualified subcontractors that can perform. This is because they have no incentive to partner with SBEs [Small Business Enterprises] to develop qualified subcontractors. They view SBEs as potential future competition. Instead, they have driven SBEs out of business or SBEs will not bid or enter into contracts with the Prime Contractors. There needs to be a financial incentive to large prime contractors to successfully partner with SBEs to work with and assist in the development of qualified SBE subcontractors. See other above. Help with getting Microstation – it’s a very big expense for an LA firm which must have AutoCAD as well. Prime / Subcontractor Meet & Greets. Answered on the previous page. Allowing office equipment like copiers printers and MFPs to be included in qualifying specs. Teach about setting up websites & doing affordable insurance. I think you run a fine DBE program. You are one of the most user friendly DBE programs among those with which we work. You also are one of the most responsive. Thanks for asking! On-the-job checking, goals are being followed as per stipulated in ADOT'S regulations. Provide bid results of subcontractor. Learning how much a job costs in surveying will help us bidding better.



I have tried a couple of times to contact people who are to assist DBE's with their bidding opportunities. While everyone is very nice, generally, they are slow to respond and I get generic responses like “go to our website.” I am trying to get help on the issue described above, i.e., getting the relevant bid opportunities for a specialized trade. By actually enforcing a hard goal and not some lip service. I find the whole process to be a fraud. None. We are in New Mexico and it is tough to attend many of the opportunities due to time and $ constraints. I know ADOT DBE program offers a lot of opportunity but until our business expands a little more, we have not been able to take advantage of many of these opportunities. I am very pleased with the progress of the program thus far. With work now being completed by the DBEs new challenges continue to arise. Maintaining an open dialogue on these issues and looking for reasonable resolutions would be one suggestion (this has happened in the past and is creating a robust DBE environment). Continue to networking sessions with DBEs and primes (such as meet and greets and project specific marketing) to help new DBEs market their skills to primes. Have more conferences well-advertised in Flagstaff area so the travel is not burdensome. See all of the above. No additional comment. I would like to see other opportunities that don't involve building a road or structure. We provide organizational, process improvement, quality and other non-transportation-specific services but many opportunities don't ask for these types of services. I believe many of them are assumed to be included with the construction aspect. Would it be beneficial to have a third party who is trained/experienced in project management, reporting, or quality involved in a project. When changes are made in the requirements when contracting with a prime. Information of these changes in writing to the DBE's would be helpful when Contracts are in process. We're getting there; keep up the meetings and communication. It's really much better. Help getting paid promptly. Qualifying for more NAICS codes and helping to link us up with more contractors and subcontractors. I would say hire the true qualified person who have true heart and good intensions to us DBEs to represent us, maybe ask us if that person who you guys are hiring are qualified (anonymous feedback from us?) only us DBEs know if that person deserve to represent the group.



Provide jobs that the DBEs can make a decent profit on; where jobs are large enough not to need bonding (100, 200K) and work with them so they can be financially secure enough to get bonding, in a limited amount of time. Consider travel time to get to the project as a reasonable expense. 8 miles per gallon pulling a trailer at $4 per gallon. Help DBEs more. Find a way to make sure DBEs know that technical assistance is available. Pretty satisfied. Call contractors, who say they don't have work. Then I see trucks all over, call them back, and they say they only send emails to comply with DBE requirements. They hire & protect their own favorites. No comments. Have not used DBE program much. Most of our projects are directly federal.

Survey of Disadvantaged Business Enterprises - Final Report...Arizona Department of Transportation...

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