GDOT and minority contracting
Moderated by Tom Sabulis
The Georgia Department of Transportation is getting criticism from all sides these days. Lately, it’s been taking heat for its lack of minority contracting on projects. The NAACP has asked Attorney General Eric Holder to investigate. Today, a former board member blasts GDOT for its failure to adequately engage disadvantaged businesses. The department’s commissioner says there is room to improve, but explains that minority businesses need to be able to compete and perform for taxpayers when they get the opportunity.
GDOT fails to share work equitably
By Brad Hubbert
The Georgia NAACP recently asked U.S. Attorney General Eric Holder to investigate the state department of transportation’s contracting practices to determine if there is systematic discrimination against minority businesses.
I support the NAACP 200 percent and believe its request is long overdue.
As a former Georgia Department of Transportation board member, I have been a staunch critic of the department’s failure to ensure that minority, women-owned and disadvantaged businesses receive an equitable share of the work.
A 2012 disparity study conducted for the GDOT by BBC Research & Consulting analyzed the participation of minority, women and economically disadvantaged business enterprises (MBE, WBE and DBEs) in construction and engineering contracts from 2009 through June 2011. Of the $2 billion GDOT awarded during that period, MBEs and WBEs received a paltry 10 percent of the contracts, even though those businesses had the capacity to do 22 percent of the work. At the same time, DBEs received only 10 percent of contracts, while the GDOT’s goal was 12 percent.
That 12 percent goal, by the way, is only 2 percent higher than it was 31 years ago when I was first elected to the board, and the agency is not even meeting that.
Why is there a discrepancy between goals, capacity and actual contracts awarded? I said it then and I will say it again: discrimination. But don’t take my word for it; the facts speak for themselves.
The disparity study found “qualitative evidence of discrimination” against minority- and women-owned companies and advised the GDOT to remove the barriers that prevent them from bidding on or being awarded contracts.
Those barriers are as prevalent in the way the DOT does business as concrete is to street paving. It starts with how projects are packaged in the first place. Instead of using its discretion to let single contracts for road, highway and infrastructure improvements, the DOT often lumps major projects together, making them more advantageous for large, general contractors to bid on. However, smaller, minority, women-owned and disadvantaged firms have a difficult time securing the bonding and financing required for such projects, and it puts their firms at greater risk, so they are effectively eliminated from even bidding on the work. They are forced to either compete as a subcontractor or scramble for contracts of lesser value.
The department adopted DBE goals in 1989, under the premise that “disadvantaged” was a broad enough umbrella to cover women and minority groups equally. However, that has not been the case. Instead of providing more bid opportunities for all disadvantaged groups, the practice seems to favor one over the other.
For example, in 1987, when we had a transportation commissioner and a board committed to equity, MBEs received about 8 percent of transportation contracts and white, women-owned firms were awarded 2 percent. In 2007, firms owned by white women received 8 percent of the contracts while black-, Hispanic- and Asian-owned companies received 2 percent.
A coincidence? I think not. If everything was equal, minority firms would have experienced growth similar to that of white women-owned companies during the 20-year period.
The study further found that if discriminatory practices are removed, the availability of MBEs, WBEs and DBEs to do transportation work ranged from 21 percent to 31 percent.
I implore the GDOT to set the tone for fair and equitable contracting by setting a goal of 30 percent. That will help compensate for past wrongs and set the tone for making things right in the future as we continue to plan for regional transportation.
Brad Hubbert is the former board chairman of the Georgia Department of Transportation.
GDOT supports minority contracting
By Keith Golden
For 32 years, the Georgia Department of Transportation has maintained a vigorous program to assist minority and women-owned businesses in participating in state contracts.
Known since 1987 as the Disadvantaged Business Enterprise (DBE) program, thousands of Georgia minority and women business owners have participated, and hundreds of millions of dollars have been paid to qualified DBE firms for work on transportation infrastructure projects.
By federal law, DBE status is available to recognized minority groups and those defined as having experienced social or economic disadvantage.
DBE firms play an important role in the work of Georgia DOT each year and also are often used by other government agencies throughout the state.
DBE status does not guarantee success. Once certified, it is the responsibility of the DBE firm to compete in the marketplace for work.
Like any company, they must offer the department and Georgia’s taxpayers the best pricing, efficient work and a quality product.
The department’s current DBE participation goal is 12 percent; for the past three years, DBE firms received 9.7 percent of contract dollars. Georgia DOT’s DBE goal, which is reviewed and approved by the Federal Highway Administration and the U.S. Department of Transportation before it can become effective, is proposed to rise to 15 percent for the next three years.
Each time the department sets a new DBE participation goal, an inclusive round of public outreach is conducted to solicit input from those groups most impacted by the goal.
This year, five public meetings were held across Georgia. Public input, participation and opinions were sought as these meetings provide valuable, important information that helps us make program improvements and determine meaningful new DBE participation goals for the next three years.
Periodically, Georgia DOT, at its own initiative, sponsors what are known as DBE Disparity Studies. These are efforts to examine program performance, successes, shortcomings and areas where improvement is needed. This spring, the department concluded just such a DBE Disparity Study. It lasted for 18 months; we learned there are areas for improvement.
For instance, despite the fact that nearly $250 million in DOT business went to DBE firms from 2009-11, the study showed that businesses owned by African-Americans accounted for just 2.4 percent of that amount. So the department now will develop new efforts to engage DBE firms to ensure they are made aware of potential contracts, have the tools they need to actively bid on the work, and know contacts at other companies to forge partnerships and alliances.
Georgia DOT is committed to its DBE program and to the state’s qualified DBE firms. The department’s new 15 percent goal will be the highest in the Southeastern United States.
Within the constraints of federal regulations and Georgia’s absolute and unwavering low-bid statutory requirement, we strive each day to broaden the horizon and extend the reach of our DBE program.
There is always more that we can do. We constantly seek suggestions, input, dialogue and constructive criticism to improve our DBE efforts.
Keith Golden is the commissioner of the Georgia Department of Transportation.
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33 comments Add your comment
skipper
August 14th, 2012
10:43 am
There’s a real winner you want looking into something………Eric Holder. He has as much business being Attorney General as Bin Laden had being the Pope! And that is not a racial statement…..I could care less if he is black, white, red, or green.
Bernie
August 14th, 2012
11:04 am
Yet again, we have the Editorial Board of the AJC, still REFUSING to allow the participation and direct response from the State of Georgia NAACP to present its opinion and further explain and inform the citizenry of its direct charge and claim on this issue.
Instead, we are presented with two seemly agreeable factions here, whom purposely and intentionally refuse to see or even unaware or admitting to the failings of the minority contracting in the States Department of Transportation active and ongoing
projects.
Again, I call on the Editorial board of the AJC to step away from its conflating position and allow this process to be open for a fair hearing of both sides of this issue. You have taken a similar approach for weeks when it comes to TEA PARTY related issues and concerns. Why not do the same for one of Georgia’s oldest Civil Rights Organization or is that to progressive for the management of this organization.
I offer as a concerned citizen, I have no affiliation or connection directly or indirectly with anyone or anyone associated with either side of this issue. I just think that it is fair to all of the readers and citizens of Georgia that this be a fair and objective process to hearing of both sides on this issue without presenting (2) two agreeable and supporting sides of the same issue. Something that this Editorial Board seems to have a major issue with…HONESTY and OBJECTIVITY.
Tom B.
August 14th, 2012
11:07 am
What does the Georgia NAACP have to do with women-owned and disadvantaged businesses?
Pompano
August 14th, 2012
11:09 am
And this is a perfect example of why T-SPLOST and initiatives such as it should fail. Instead of concentrating on building infrastructure, we are trying to turn turn simple tasks like building roads into wealth redistribution programs. Let the best – and lowest bidders – earn the contracts.
The McGinnis Ferry widening project has been delayed two years due to an incompetent DBE that installed the bridge pylons incorrectly. The project had to be completely re-done – adding tremendous expense and a two-year delay.
GDOT should focus on building roads – not Social programs.
Bernie
August 14th, 2012
11:11 am
Unfortunately, Mr Brad Hubbert who is the former board chairman of the Georgia Department of Transportation position can easily be described as a disgruntled former Board member when one views his opinion. He is not the active party that made this charge and requested DOJ involvement, so to present his opinion leaves a very strong smell of bias opinion reporting.
Bernie
August 14th, 2012
11:19 am
Tom B.@ 11:07 am _ Does anyone have to explain to you the Historical Record of well documented racial bias that has always been a ongoing operating mindset with ALL governmental agencies of the State of Georgia throughout its entire history. Only through the many hard fought struggles and battles presented on behalf of disadvantage business owners by the NAACP has allowed for the minimal changes that have occurred thus far. If the State Leaders would only operate openly and fairly, such charges would not have to be levied and made obviously apparent. To that end this why a NAACP is needed and required.
Tom B.
August 14th, 2012
11:31 am
Slow down, Bernie. Your missing the point I was trying to make.You really think the NAACP is going to do anything for the “women-owned and disadvantaged businesses” of the “MINORITY, women-owned and disadvantaged businesses” statement?
Bernie
August 14th, 2012
11:51 am
Tom B. @11:31 am – There is NO way denying the FACT that the organization of NAACP has been instrumental over many years in insuring that the State of Georgia and other city municipalities, where there have been minority owned businesses and there is a sizable minority constituent population to insure equal and fair participation. Our political Leaders just do not have the GUMPTION or WILL to do the right thing, but to hold on to old RACIAL BIASES and PREJUDICED TRADITIONS of years gone by.
Bernie
August 14th, 2012
12:02 pm
skipper @ 10:43 am – You are being betrayed by your own words my friend. To compare the U.S. Attorney General to the the MURDEROUS ONE who killed 3,000
Ameircan citizens Men,WOMEN and CHILDREN! who were going about their daily life.
Such comments are out of BOUNDS and truly offensive! If you are unable to express your opinion fairly, you should remain quiet. To make such libelous comments are offensive to the families of those who DIED and those who have died seeking the MURDEROUS ONE’s destruction. Surely you were not a part of!
middle of the road
August 14th, 2012
1:01 pm
“failure to ensure that minority, women-owned and disadvantaged businesses receive an equitable share of the work.”
Whether or not they are reasonably competitive.
SAWB
August 14th, 2012
1:02 pm
I wonder if the problem with these programs is that they still continue to exist. Maybe it is time to do away with set asides and hire the best qualified firm for the job regardless of the demographics of the owner. We have recently seen the abuse of similar programs at Hartsfield airport involving vendor contracts. These programs have become just another mechanism for cronyism and waste of tax payer dollars. If an African American can become President based on his own merit I think a company can obtain a road paving contract.
middle of the road
August 14th, 2012
1:02 pm
The NAACP stands for National Association for the ADVANCEMENT of Colored People – not the National Association for the EQUALITY of Colored People.
middle of the road
August 14th, 2012
1:04 pm
And you wonder why T-SPLOST failed
Joe
August 14th, 2012
1:09 pm
Pompano is exactly right. Most of the DBE’s for GDOT are a liability to the contractors. For every good one, there are 100 that either do terrible work, don’t pay there bills, won’t show up when needed, can’t submit required paperwork on time, etc,etc,etc. If they want more work, then they can get qualified to bid on the work, and be the low bidder on letting day just like everyone else trying to survive in this industry that is being choked by shortsighted politicians.
jj
August 14th, 2012
1:11 pm
Just think of how many parking tickets, booze, braves games, expensive lodging and wedding gifts the beltline could have bought with their guaranteed piece of the T-SPLOST. Fire the ENTIRE beltway staff now.
Out by the Pond
August 14th, 2012
1:16 pm
Bernie – remember small minds can not keep on subject. But wow, Skipper was first out and was already off subject. That is a record that will stand forever.
Racial and gender bias have long been ingrained in the State Work Place Culture. The playing field after 40 years is still not level. As a white male I have felt the sting of correction more than once and before I finally give up bidding for state contracts I fully expect to feel it again. Does it hurt? Damn right it does, but how much more the pain must be for those unfairly excluded from participation in the first place.
Treeshay
August 14th, 2012
1:21 pm
“Like any company, they must offer the department and Georgia’s taxpayers the best pricing, efficient work and a quality product.”
What Mr. Golden is trying to tactfully say is that being a woman/minority operated business might get you in the door, but once in the taxpayers expect you to actually do the work for which you’re paid. What he doesn’t mention is that some of these DBE participants aren’t minority owned at all. Occasionally whites will qualify by using a straw man, usually some poor black guy they’ve paid to be the fictional “CEO”.
Bernie
August 14th, 2012
2:03 pm
Out by the Pond @ 1:16 pm – Your comment is greatly appreciated,welcomed and agreed, even from the silence of many of its readers. No one is demanding, or requesting for a free ride, hand outs, special consideration, set asides or accept inferior service, wrong doings of servicing state contracts as many of the other posters have alluded.
This is part of the same old tired argument, when the the issue of fairness and equality is raised. This is just a part of the defense of retaining already established protocols. This entire issue could easily be avoided and resolved if the DOT leadership would be more open, forthcoming, fairer, demonstrating minority fairness & improvement assignments and cooperating with inquires about its contract assignment designations.
Unfortunately, History has demonstrated more times than not, State Of Georgia Leaders are unwilling to moderate their protocols and decisions without direct involvement of Federal and/or judicial rulings. This is why, it is important that we are afforded the unfiltered opinion of the NAACP on this medium.
All ANY Business desires and wants….. is a FAIR and equal chance for an opportunity to receive and get posted contracts when they are available That is ALL.
We all share in the same desires and needs just as any Man of this great Nation.
Booger Fling
August 14th, 2012
2:05 pm
All this “commitment” to CONtractors… What about your commitment to your of friggin employees commish????????
MANGLER
August 14th, 2012
2:32 pm
Ever wonder how the larger firms got to be large firms? They did a lot of small jobs for a long time and developed the skills and foresight along the way to handle ever increasing work loads. Walmart and Best Buy started with one store and grew over time. When talking about large infrastructure projects, you need companies that can do the job correctly and on budget. Forcing the acceptance of a bid simply because it came from a statistical requirement leads to mistakes and cost overruns.
But if you want to have a good look at competition, see what happens when a stretch of highway gets built in 2 parts: part 1 is by the big bad company who has 10,000 employees, equipment, and financing at it’s disposal, and part 2 would be completed by smaller companies of whatever racial or sexual or socioeconomic makeup you so desire. Let’s see which part comes in on time, on or under budget, and is of the required quality. Seriously, lets do that.
Some companies get contracts because they deserve them. Some get contracts because even though they couldn’t compete, certaon people insist that it’s not fair any other way but to legally force it.
The true disadvantages on people are those they place upon themselves.
Booger Fling
August 14th, 2012
3:04 pm
MANGLER @ 2:32… No! The truely disadvantaged people are the employees of GDOT. Who are overlooked to make sure these CONtractors are taken care of.
Joe
August 14th, 2012
3:29 pm
GDOT employees are disadvantaged? Thats hilarious.
jj
August 14th, 2012
5:58 pm
Fairness? Ha Ha. All notions of fairness were ushered out with the hiring of the unqualified and failed comissioner gena evans and her cronies. Want corrution. Start with here tyrany.
SAWB
August 14th, 2012
8:56 pm
Gena Evans?
Now, that is a person that I must admit confuses the heck out of me. Why was she hired to begin with? Why was her corrupt behavior tolerated? Why after leaving in the middle of a major scandal was she ultimately placed in a new State position?
Yes, this is definitely one for the investigative journalist to look into. Hint. Hint.
middleground
August 14th, 2012
9:41 pm
Lets get this straight. Marta does not have any diversity of employees and neither does the government of Atlanta. Yet you are demanding of others what you are not ready to do yourself.
Morning Reads for Wednesday, August 15 — Peach Pundit
August 15th, 2012
7:45 am
[...] Two views on GDOT and minority contracting [...]
Out by the Pond
August 15th, 2012
8:54 am
How did big contractors get big? Where were you during the Bid Rigging trials? All the little white good old boys huddled in a closed room and split up the contracts among themselves. I remember when my pappy lent CW a little money to finish a local project. Pappy got his money back with interest but he smelled a rat and severed his ties. Oh what was the bid riggers punishment? The guilty had to spend the evenings in the Blue Top Motel out on Highway 41. They learned their lesson, do not get caught.
Out by the Pond
August 15th, 2012
9:01 am
Middleground are you implying that MARTA and the city of Atlanta does not have any light skinned employees? On that account you are wrong. Get your facts straight.
Roekest
August 15th, 2012
9:04 am
The very act of gerrymandering who gets a contract based on race, sex, etc. is completely wrong and antithetical to our supposed-capitalist system. Companies should be awarded contracts NOT on the color of the owners’ skins or what bits they have under their clothes; they should be awarded by past-performance, bid price, and estimated completion. Completely stupid. Friggin’ Socialists
James
August 15th, 2012
9:37 am
As a person who knows and has worked with Brad Hubbert for years, let me tell you that Brad is interested in african-american owned businesses and no other. He’s the other kind of racist – against anyone that isn’t his race. Don’t let this little editorial fool you.
Van Jones
August 15th, 2012
9:50 am
As a taxpayer I want the lowest bid to meet the letter and intent of the project description REGARDLESS of who owns (or works for) the contractor. Period!
Peaches
August 16th, 2012
7:03 am
Joe, I think if you would be surprised to know that a lot of rank and file GDOT employees’ salary is at or below the proverty level, their family qualifies for foodstamps, they must work a second job to make ends meet, (check out your local Wal Mart) and their children qualify for PeachCare. These are the employees you see risking life and limb to cut the grass, pick up that mattress off the side of the road. Yes there are some “fat cats” at GDOT, but please acknowledge that that does not apply to everyone at GDOT.
Booger Fling
August 16th, 2012
10:44 am
Well said Peaches. Most the idiots that comment on GDOT have no clue that these folks are getting the short end. While the CONtractors get the lions share of the budget. Never do they hear any sort of commitment to them. Always the CONtractors! And the work most of them do is pathetic at best.