Michael Behney, Penn State University January 11, 2010

 Brief History/Background on TRB-DBE Committee – Why are we doing this.  WEB Survey Purpose, Methodology & Questionnaire  Survey Findings (Dr. Orndoff)  Observations & Recommendations January 11, 2010 Topics to be Covered S2

 In 1983, Congress enacted legislation requiring that at least 10% of federal highway and transit funds be expended with Disadvantaged Business Enterprises (“DBEs”).  The purpose of the USDOT DBE program is to ensure that Federal funds distributed to state, local, and regional authorities are not used to engage in discriminatory conduct or to perpetuate the past effects of discrimination by denying contracting opportunities to small disadvantaged businesses.  DBEs are firms owned and controlled by socially and economically disadvantaged individuals; there is a presumption that women and identified minority groups are disadvantaged.  The DBE Program requires each state and local transportation agency receiving federal transportation funds establish annual goals for the participation of DBEs. January 11, 2010 Brief History/Background on DBE Program SM

 TRB expects TRB-DBE Committee to conduct or suggest research topics  TRB-DBE Committee established a research subcommittee at 2007 annual meeting  Research subcommittee determined its highest priority was to survey the state DOT DBE Program Managers regarding the problems they face  The research subcommittee designed and conducted its first survey in fall 2008 January 11, 2010 Brief History/Background on TRB-DBE Committee S3

 TRB-DBE Research Subcommittee Members ◦ Mike Behney, Penn State ◦ Charles Wright, Florida A & M University ◦ Richard Rolland, Eastern Washington Univ ◦ Dr. Ralph Sanders, Wisconsin Dept. of Trans. ◦ Dr. Cynthia Orndoff, Florida Gulf Coast University (2009) ◦ Eugene Johnson, Wisconsin Dept. of Trans., Ex- Officio (Current Chairman of TRB-DBE Committee) January 11, 2010 Brief History/Background on TRB-DBE Committee S4

“To gauge the latest issues and concerns of the DBE program nationally and to use the results to stimulate directed research into the problems facing DBEs in general and the DBE program specifically” January 11, 2010 WEB Survey Purpose S5

 Listed Sample List of potential survey recipients was provided by the AASHTO Subcommittee on Civil Rights. Lead contact for each state was invited to participate. Phone follow-up for all undeliverables and corrections from recipients were used to improve the list January 11, 2010 WEB Survey Methodology & Questionnaire S6

 Survey Questions ◦ Most important problems facing DBE Program Managers ◦ State DBE FHWA, FTA, & FAA goals ◦ Reasons for increase/decrease in goals ◦ Race Neutral activities ◦ Pre-Qualification of subcontractors ◦ Design-build project goals ◦ Innovations in state programs January 11, 2010 WEB Survey Methodology & Questionnaire Items in blue added for 2009 Survey S7

 2009 Web Survey Process ◦ Conducted between September 17 and October 30, 2009 by Center for Survey Research, Penn State Harrisburg ◦ Follow-up up request to participate were sent at 2 week intervals and a final phone follow-up was conducted prior to October 30. ◦ Thirty Four states and the District of Columbia responded (out of 51) a response rate of 69% (2008 = 54%). January 11, 2010 WEB Survey Methodology & Questionnaire S8

January 11, 2010 Survey Participants 2009 S9

Other than our 2008 Survey Report this was the only other published study found. (Published 2005) S10

January 11, 2010 Observations and Recommendations S11

 Expansion of Survey to include: ◦ aviation and transit issues (and agencies) at the state level; ◦ selected federal officials administering FHWA, FAA and FTA DBE programs (civil rights compliance officers?); ◦ DBE prime contractors, DBE subcontractors and DBE engineers and consultants January 11, 2010 Observations and Recommendations #1 S12

 Convene a representative sample of each of the specific target groups annually to explore solutions and strategies for improving the program and program administration January 11, 2010 Observations and Recommendations #2 S13

 TRB-DBE Committee Chair should appoint additional subcommittees to explore and develop additional synthesis topics and research problem statements January 11, 2010 Observations and Recommendations #3 S14

 Suggest to a friendly legislator in your state to propose a utilization study of minority and women owned contractors. ◦ In Pennsylvania a select committee on the Utilization of Minority, Women and Disadvantaged Businesses in Contracting was established by the General Assembly. It appears new legislation is soon be introduced. January 11, 2010 Observations and Recommendations #4 S15

January 11, 2010 ANNOUNCEMENT OF PUBLIC HEARINGS  THE GENERAL ASSEMBLY OF PENNSYLVANIA SELECT COMMITTEE  ON THE UTILIZATION OF MINORITY, WOMEN AND DISADVANTAGED BUSINESSES IN COMMONWEALTH OF PENNSYLVANIA CONTRACTING  Statement of Mission and Objectives   On March 23, 2009 the Pennsylvania House of Representatives adopted House Resolution 78 which provided for the establishment of a Select Committee to investigate the degree to which minority, women and disadvantaged business enterprises have been utilized in contracts awarded by the Commonwealth of Pennsylvania during the period of January 1, 2000 to December 31,   The Select Committee, which is comprised of seven members, will hold public hearings around the Commonwealth, take testimony, collect relevant research and studies, issue a report of its investigation, and make appropriate recommendations to the General Assembly by September 23,   More specifically, the Select Committee’s work will include: (1) an investigation of the institutional, historical and financial barriers that restrict or preclude minority, women and disadvantaged businesses from fully participating in the Commonwealth’s procurement and contracting opportunities, and (2) the identification of specialized approaches and best practices for eliminating such barriers.   The Select Committee is soliciting testimony, statements and other relevant information from minority, women and disadvantage business owners; leaders of community and non-profit organizations; local and state officials; business leaders; and representatives of minority and majority chambers of commerce. S16

Testimony on Minority, Women, and Disadvantaged Business Enterprise Inclusion Michael T. Behney, Transportation Research Board Disadvantaged Business Enterprise committee and D irector of the Institute of State and Regional Affairs and Instructor in the School of Public Affairs at Penn State Harrisburg before the Pennsylvania House Select Committee on Minority, Women, and Disadvantaged Business Enterprise Inclusion. Michael T. Behney June 1, 2009 Mr. Chairman and members of the select committee, I appreciate this opportunity to appear before the Committee today to discuss the important issue of Minority, Women, and Disadvantaged Business Enterprise Inclusion. I would like to first thank you and other members of the Committee for your leadership in initiating this important effort. The growth in our economy is fueled principally by small businesses and all small businesses should have the opportunity to participate equally in our economic system. I serve as the director of the Institute of State and Regional Affairs and instructor in the School of Public Affairs at Penn State Harrisburg. As part of my personal and professional interest, I also work closely with the National Academies, Transportation Research Board, Disadvantaged Business Enterprise committee (TRB-DBE committee). This committee exists to serve as an open forum for all parties involved in Disadvantaged Business Enterprises/Women's Business….. S17

IMPORTANT DBE/WBE/MBE NOTIFICATION Historic DBE MBE WBE Legislation to be Introduced January 26, 2010 As you are aware, the House Select Committee, chaired by Representative Jake Wheatley, held DBE/MBE/WBE hearings throughout the state to identify barriers to DBE/MBE/WBEs in obtaining Commonwealth contracts and to identify best practices to assist DBE/WBE/DBEs. The Committee then developed a report and legislative package based on these hearings. As a result of that testimony and the Committee's report, a legislative package will be presented on Tuesday, January 26, 2010, and your support is needed. A press conference is scheduled for Tuesday, January 26, 2010, 10:00 a.m. until 11:00 a.m. in the Main Capitol Rotunda, Harrisburg, PA. A full day of scheduled activities is planned. Contact April Ashe in Representative Wheatley's Capitol office at or for additional details and to confirm your attendance. Below are some of the the highlights of the Having all state agencies reserve 10 percent of their procurement and contracting dollars for small businesses with 250 or fewer employees, including but not limited to minority-owned, women-owned and disadvantaged-owned business enterprises (MWEs, WBEs and DBEs). Having state agencies, boards and commissions establish an overall aspirational target of 25 percent of procurement and construction dollars going to MWEs, WBEs and DBEs. Requiring that prime contractors doing business with the state pay subcontractors within five days. Creating greater uniformity and consistency in the state certification process for MBEs, WBEs and DBEs by having the state Department of General Services accept certification from the Pennsylvania Unified Certification Program and having local governments and school districts accept those certifications as sufficient. S18

◦ Over the course of 5 separate hearing around the state testimony was provided by 65 individuals including the following:  State agencies (including PennDOT and Pa Turnpike Commission)  Private DBE and non DBE firms  Business Organizations including Chambers of Commerce (Black, Hispanic and Asian Chambers)  PA UCP  Educational Institutions January 11, 2010 Observations and Recommendations #4 (Cont.) Available at: S19

Apply friendly peer pressure to have the 9 states that have not participated in either year of the survey involved January 11, 2010 Observations and Recommendations #5 S20

TRB-DBE National DBE Program Manager Survey Questions? Comments!