91ÊÓƵ

A public research firm has made seven suggestions to the Oregon Department of Transportation for improving the diversity of the firms it contracts.

MGT of America today released an update to ODOT‘s 2007 disparity study. In addition to noting several areas of improvement and areas that still need work, the company made some suggestions as to how the state organization could improve its contracting programs for minority- and women-owned firms.

In order for public agencies to have programs that give added advantages to minority- and women-owned firms, the agency must first conduct a disparity study that proves there is need for such a program. ODOT had its disparity study conducted in 2007.

The most recent study found that since the 2007 study was conducted, the amount of money going to certified firms has gone up about 15.2 percent. But the amount of money spent on these firms as a percentage of the total spent went down. Certified construction subcontractor utilization fell from its 2000 to 2005 rate of 41.4 percent to 20.6 percent in 2008 to 2010.

According to ODOT officials, the decrease in utilization is a factor of the department having less strict utilization goals than it had during the earlier period.

The firm made seven recommendations that it believes ODOT should implement:

1. Use the department’s Small Contracting Program to increase DBE involvement by race/gender neutral means and pursue statutory changes to expand the program’s contract limits.

2. Set selective DBE project goals for construction and A&E contracting/subcontracting based on the study’s findings of disparity. When allowable, request bidders’ history in contracting with DBEs in general and African American-owned firms in particular.

3. Consider providing subsidies to prime contractors to work with and train new DBEs on projects; e.g., mentor-protégé program.

4. Consider placing language in requests-for-proposals asking bidders about their strategies for DBE inclusion, as well as their history of supplier diversity.

5. Expand the department’s data tracking system to include monitoring of A&E subcontracting, the Emerging Small Business program and the Small Contracting Program to determine DBE utilization.

6. Focus business development efforts around the needs of construction and A&E subcontracting; provide incentives in management and technical assistance contracts for showing results in the area of DBE usage and support.

7. Add performance measures that go beyond DBE percentage usage to include such things as increasing contract awards through the Small Contracting Program and increasing the number of firms graduating from the program.